In an initial assessment, MUFG lowered its 2024 GDP growth forecast to 5.8 per cent from 6.1 per cent earlier with a rebound to 6.8 per cent in 2025 from 6.5 per cent earlier.

MUFG's base case assumes the bulk of the disruptions should be resolved within two to three months, though the rebuilding and replacement of assets are likely to take more time.

The typhoon has cost Vietnam roughly $1.6 billion, according to preliminary estimates from the investment ministry, which said GDP growth this year may slow by 0.15 per cent compared to the earlier forecast of 6.8-7 per cent expansion.

Highly industrialised provinces like Thai Nguyen and Haiphong may grow slower by 0.5 per cent as they bore the brunt of the typhoon, the ministry said.

The typhoon, which made landfall on September 7, killed at least 292 and left 38 missing, Vietnam's disaster agency reported.

GDP growth in the third and fourth quarters could decrease by 0.35 per cent and 0.22 per cent respectively compared to the scenario without the typhoon, the ministry report noted.

Haiphong city, home to several industrial parks, saw losses worth about $448.43 million after the typhoon.

Fibre2Fashion News Desk (DS)