Thai chamber warns flood damages may exceed 10 billion baht

The Thai Chamber of Commerce (TCC) raised alarms over the economic repercussions of the ongoing floods in northern Thailand. Should the flooding persist for another month, financial damage could surpass 10 billion baht, officials warn.

Estimates from the TCC and the University of the Thai Chamber of Commerce reveal that if conditions improve within the next two weeks, the current flooding in the North would still result in damages amounting to approximately 8 billion baht, or 0.05% of GDP, said TCC Chairman Sanan Angubolkul yesterday, September 2.

The agriculture sector has borne the brunt of the financial losses, amounting to 7.17 billion baht, which accounts for 89.6% of the total damages. The service sector follows with an estimated damage of 693 million baht, while the industrial sector faces damages estimated at 139 million baht.

Chiang Rai has experienced the most severe damage, estimated at 3.63 billion baht. Phayao has faced damage estimated at 2 billion baht, and Sukhothai has incurred damages estimated at 1.36 billion baht. Other provinces remain at risk of flooding, and if conditions do not improve, financial damage could exceed 10 billion baht or 0.06% of GDP.

“The government should also prepare for more rainfall expected this month and in October, which can cause further flooding.”

Sanan emphasised that proactive planning can mitigate impacts and minimise damage to the people and the economy.

Rehabilitation plan

Sanan also highlighted the necessity for a government-led rehabilitation plan for affected individuals and businesses. This plan should include measures such as debt suspension, interest rate reductions, and additional soft loans.

Despite the severe flooding in the north, Sanan suggested that Bangkok and neighbouring provinces are unlikely to face flooding on the scale of the 2011 disaster. He cited several factors supporting this assumption: reduced accumulated rainfall this year, fewer predicted rainstorms, higher water storage capacity in major dams, currently low water levels in main rivers, and a lower flow rate in the Chao Phraya River.

Meanwhile, the Chao Phraya Dam is preparing to release more water as the river swells from northern runoff. Thanet Soomboon, director of the Water Management and Hydrology Bureau, indicated yesterday that the discharge rate would increase over the next five days as floodwaters from the north rapidly flow downstream into central provinces.

The Office of National Water Resources issued a warning yesterday about potential flash floods across all regions this week. Provinces on alert include Sukhothai, Phitsanulok, Nong Khai, Rayong, Phuket, and Surat Thani, reported Bangkok Post.