Government resolution to support recovery after Typhoon Yagi

According to the resolution, Typhoon Yagi caused severe damage to people, property, crops, livestock, and socioeconomic infrastructure, greatly affecting people's lives, as well as business activities, especially agriculture, services, and tourism.

In response to the typhoon’s aftermath, the government has directed ministry leaders, agencies, and impacted localities based on their assigned roles and responsibilities to swiftly and efficiently implement the Ministry's Conclusion Politic, as well as government and prime minister's directives.

Additionally, the government urged the swift restoration of supply chains, labour, and production to sustain local and national economic growth in 2024.

“Support policies must be rapid, practical, timely, and effective, with a direct focus on aiding those impacted by the storm. Procedures and benefits should be straightforward, easy to implement, and monitor,” states the resolution.

Resolution 143 clearly stipulates the scope and beneficiaries of support, including people, workers, vulnerable groups, business households, cooperatives and enterprises in areas heavily affected by Typhoon Yagi.

Support will be focused on implementation in two months of September and October. For some policies specifically for businesses and business households, the implementation period may be extended until the end of 2025 to ensure the recovery process and adaptation to the production and business cycle.

Regarding support for the tourism sector, the government has instructed ministries to find solutions aiming to ease the burden on businesses.

Infrastructure at tourist sites in Quang Ninh has been severely damaged. Photo: vietnam.gov.vn

The Ministry of Industry and Trade has been tasked with examining and proposing policies to apply industrial electricity rates to tourism accommodation, aiming to ease costs to businesses.

The Ministry of Transport has been directed to assist localities in swiftly salvaging sunken vessels, ensuring traffic safety, and enabling businesses to repair and resume tourist services.

In a bid to support the recovery of the tourism sector, the government has directed the Ministry of Culture, Sports, and Tourism to coordinate with local authorities on a temporary reduction of travel service deposits. Tourism businesses will benefit from an 80 per cent cut in these deposits until June 2025, aimed at easing financial pressures and aiding in their revival.

For the Vietnam Social Security, the mission is evaluating the feasibility of extending social insurance payment deadlines for tourism businesses, aiming to give these businesses additional time and financial relief to navigate and overcome difficulties.

According to preliminary government statistics released on September 17, the damage inflicted by Typhoon Yagi is estimated to exceed $2 billion, which is projected to lower the annual GDP growth rate by approximately 0.15 percentage points from the initial forecast range of 6.8 to 7 per cent.

The economic growth rate of many localities, such as Haiphong, Quang Ninh, Thai Nguyen, and Lao Cai, could decrease by over 0.5 per cent compared pre-typhoon forecasts.

Quang Ninh faces $960 million economic hit after Typhoon Yagi Typhoon Yagi is estimated to have cost Quang Ninh province $960 million, accounting for more than half of the national damages during this storm.

Credit support for businesses on offer after Typhoon Yagi The banking sector is sharing the burden with businesses by reducing interest rates on existing loans and providing unsecured credit for new ones to help those affected by Typhoon Yagi.