Typhoon Krathon was last tracked over the coastal waters of Balintang island off the provinces of Cagayan and Batanes with sustained winds of up to 175 kph (109 mph) and gusts of up to 215 kph (133 mph), according to government forecasters.
The slow-moving Krathon was blowing westward and could strengthen into a super typhoon when it veers northeastward Tuesday toward Taiwan, they said.
There were no immediate reports of casualties or damage.
The weather agency warned of "moderate to high risk of life-threatening storm surge" in the next 48 hours in the coastal villages of Batanes, the nearby Babuyan islands and Cagayan province and said fierce winds could rip off roofs, topple trees, damage farmlands and whip up high waves.
"The situation is potentially very destructive to the community," it said.
Hundreds of villagers were evacuated away from the coast and flood-prone communities in Cagayan province, where power outages were reported. Classes in all levels were suspended Monday in several northern provinces as a precaution, officials said.
Sea voyages were also halted in northern towns and provinces being battered or threatened by the typhoon, locally called Julian, officials said.
About 20 storms and typhoons batter the Philippines each year. The archipelago also lies in the "Pacific Ring of Fire," a region along most of the Pacific Ocean rim where many volcanic eruptions and earthquakes occur, making the Southeast Asian nation one of the world's most disaster-prone.
In 2013, typhoon Haiyan, one of the strongest recorded tropical cyclones in the world, left more than 7,300 people dead or missing, flattened entire villages, swept ships inland and displaced more than 5 million in the central Philippines.