It tracked westward, reaching tropical storm on June 30 before hitting the central Philippines.

Kelly weakened over the islands, but re-strengthened over the South China Sea, nearly attaining typhoon status on July 2.

Based on this, a Tropical Cyclone Formation Alert (TCFA) was issued that evening as the system moved west.

[1] On that day, the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) also monitored the storm and assigned it with the local name Daling.

[5][6] After further development and a subsequent TCFA, the Joint Typhoon Warning Center (JTWC) classified the system as a tropical depression on June 30.

[1] After turning northwest,[7] After exiting PASGA's warning zone,[5] Kelly continued to strengthen, and midday on July 2, the JMA estimated that the storm reached its peak intensity of 115 km/h (70 mph).

At 0300 UTC on July 3, surface observations from the Paracel Islands indicated winds of 134 km/h (83 mph) and a pressure of 970 mbar (29 inHg).

Due to land interaction, Kelly continued to weaken and early on July 4, the JTWC downgraded the typhoon into a tropical storm.

Later that morning, the eye briefly re-developed over the Gulf of Tonkin;[1] however, no re-intensification occurred[7] as Kelly remained poorly organized.

[1] Late on July 4, Kelly made landfall as a 95 km/h (60 mph) tropical storm[7] 185 km (115 mi) south of Hanoi in Vietnam.

[8] Huts and rice feels were inundated by mud in debris in parts of Legaspi, Daragan, Ligao, and Camalig.

[11][13] A few days following Kelly, the island nation was struck by Tropical Storm Lynn, which was responsible for further destruction.