Flooding in North may cost Thai economy up to 6 billion baht

Heavy flooding in several provinces in the North of Thailand is expected to cost the country up to 6 billion baht in damages, the Thai Chamber of Commerce (TCC) said, as it called on the government to employ better preventive measures.

The estimate covers damages incurred in the nine northern provinces of Chiang Rai, Phayao, Sukhothai, Lampang, Phetchabun, Phrae, Nan, Phitsanulok and Nakhon Sawan, TCC chairman Sanan Angubolkul said.

The predicted damages equal to about 0.03% of the country’s projected gross domestic product this year, he said, adding that the TCC will conduct a detailed estimate again later as there are still reports of heavy rain in many provinces.

Sanan said the flood situation this year will affect the agricultural sector the most, followed by the service and industrial sectors.

“In the short term, the TCC proposes that the government establish frontline water-management centres in flood-prone areas, with the prime minister as the chair,” he said. “This would ensure that directives and policies across ministries are aligned and efficiently implemented.”

Sanan also called on the government to draw up a plan to manage water from the North that will flow into central Thailand and Bangkok, as well as a plan for the heavy rainfall expected in September and October.

“Having a clear preventive plan in advance will help reduce the impact and damage to the public and the economy,” he pointed out.

Sanan added that the Thai Chamber of Commerce and the Board of Trade of Thailand have been coordinating with leading retail and wholesale operators across the country to gather donations and deliver them to flood victims.

Operators in affected areas have also agreed to organise discount campaigns with a focus on consumer products, fresh food, basic medicines, sanitary products and other necessities to help alleviate people’s financial burden during the flood situation.