Research shows a need to address flood concerns
  • | dtinews.vn | March 11, 2010 01:26 PM

Ho Chi Minh City has hundreds of places that are susceptible to floods and the outlying districts are no exception. The total damage cost is estimated to be more than VND 14 trillion (USD 727 million) per year.

Flood affects the life of local people in Ho Chi Minh City.

Floods not only caused damage to houses and properties but also affected the economy, life and environment. These numbers were provided by the Institute of Water and Environment Research’s.

According to statistics by the Ho Chi Minh city authorities, every year the damages caused to properties being flooded is VND 15 million per hectare (USD 779) , indirect damages are VND 10 million (USD 519), agriculture damages cost VND 3 million (USD 156), and project damages also equal VND 3 million (USD 156). This brings the total annual estimated cost of floods to VND 6.2 trillion (USD 330 million).

Moreover, according to the research group, if flooding problems are able to be fixed, the city’s economy would be able to develop as production wouldn't be limited and it would attract more foreign investment. This, in turn, would increase land prices while reducing transportation costs. That would also mean an increase in market prices (GDP) by about 4.3% per year.

In 2009, Ho Chi Minh City’s GDP was VND 332 trillion (USD 17.24 billion). Based on this number, the research group has placed the cost of this opportunity loss to be more than VND 8 trillion (USD 415 million) per year.

Thus, the total damage cost caused by floods in Ho Chi Minh City is VND 14.4 trillion (USD 750 million) over the past year. Accoring to the researchers, this is only an estimated number, perhaps not an accurate number, but can highlight just how much damage flooding could cause to the economy.

That is not to mention other damages caused by floods such as diseases which could cause a decline in health, death, plus environmental pollution problems, thus reducing the quality of life.