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The tropical depression lay centered over Quang Ninh Province and port city Hai Phong at 4 a.m. Thursday with wind speed of 49 kph.
It has caused heavy rains in Quang Ninh, Hai Phong and Lang Son Province.
Vietnamese carriers have delayed flights to and from Hai Phong on Thursday morning to avoid impacts.
The tropical depression is forecast to move west-northwest on Thursday, deep into northern Vietnam and continue to weaken.
Northern Vietnam, as well as the north-central provinces of Thanh Hoa and Nghe An, are forecast to receive rainfall of between 70-200 mm on Thursday and Friday.
Rainfall in Hanoi in the two days is estimated at 70-150 mm.
Vietnam should expect 10-12 storms and low-pressure areas in the East Sea this year, with around half making landfall, the weather experts say.
Mulan is the second storm in Vietnamese waters this year. The first, Chaba, arrived in July.
