Vietnam's meteorological agency issued the downgrade on Sept 8 but cautioned about the ongoing risk of flooding and landslides as the storm, the strongest to hit the country in decades, moves westwards.
On Sept 7, Yagi disrupted power supplies and telecommunications in Vietnam's capital, Hanoi, causing extensive flooding, felling thousands of trees and damaging homes.
The government said the storm has led to at least three deaths in Hanoi, a city of 8.5 million, with these figures being preliminary.
Fourteen people have died in Vietnam so far, according to reports, including four from a landslide in the province of Hoa Binh, about 100km south of Hanoi.
The landslide happened around midnight, after several hours of heavy rain brought by Yagi, when a hillside gave way and collapsed onto a house, VnExpress said, citing the local authorities.
The home's 51-year-old owner escaped but his wife, daughter and two grandchildren were buried, their bodies recovered soon after.
Yagi, which has devastated infrastructure and uprooted trees, made landfall in northern Vietnam on Sept 7, packing winds exceeding 149kmh.
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