Natural disasters cost Vietnam $11bln annually, World Bank says

Khanh Minh Monday | 10/26/2020 11:58

Recent floods in central region kill more than a hundred people. Photo: AFP/ VNA

Natural disasters cost Vietnam an estimated annual losses at around $11 billion in purchasing power parity terms, World Bank said in a recent report.

Natural shocks cause private and public asset losses worth an average of $8.1 billion in purchasing power parity terms each year; that is $2.7 billion in real terms. About 60 percent of these losses are caused by typhoons and accompanying storm surges.

Around 11.8 million people in coastal provinces are exposed to the threat of intense flooding and over 35 percent of settlements are located on eroding coastlines.

Essential public services are also at risk: 26 percent of public hospitals and health care centers and 11 percent of schools are exposed to intense coastal flooding, compromising their ability to provide critical services when they are most needed.

Flooding of facilities is not the only concern: every year, typhoons and floods cause about $144 million in direct damages to public transport infrastructure.

Average annual damages to energy infrastructure amount to $330 million, not least because more than one-third of Vietnam’s transmission grid is located in forested areas, at risk of falling trees and branches during storms.

The lack of reliable and resilient infrastructure disrupts firms’ operations, causing some $280 million in utilization rate losses each year.

Each year, an average of $852 million - or 0.5 percent of national GDP - and 316,000 jobs are at risk from riverine and coastal flooding in the agriculture, aquaculture, tourism, and industry sectors.

Da Nang City alone experienced 26 typhoons, 13 tropical depressions, and 46 flood incidents between 1998 and 2015.

Although the Government of Vietnam has made impressive progress in reducing and managing natural risks, current trends show that it needs to take further action to safeguard future development in the face of disaster risks.

► Floods claim more than 100 lives in central region

Source: WB, VGP

Same category news

Hot news of the day

Latest news