Thailand has dealt with severe flooding for centuries, affecting millions of households and disrupting economic activities, especially in low-lying areas where disasters seem routine.
Every year, the government allocates a substantial budget for flood relief. Last year, the Pheu Thai administration set aside more than 8 billion baht, granting 9,000 baht to each affected household during the rainy season.
The heavy monsoon rains currently pounding the country have prompted the new Bhumjaithai-led administration to prepare a 6-billion-baht flood relief budget, also expected to provide 9,000 baht to each affected household.
Despite a significant annual budget allocation for water resource management, flooding remains a persistent issue across Thailand.
The private sector wants more sustainable, long-term solutions beyond post-disaster relief.
LONG-TERM PLAN REQUIRED
The ongoing floods, which have submerged vast tracts of land in many provinces, have yet to affect factories, but the regular inundations raise doubts over the state’s long-term water management, said Kriengkrai Thiennukul, chairman of the Federation of Thai Industries (FTI).
“Thailand has been living with floods and droughts that occur no matter which administration is running the country,” he said.
The business sector has not seen a clear water management plan with a long-term outlook from the government, said Mr Kriengkrai.
“One result is we have to rely mainly on ourselves to brace for flooding,” he said.
There have been no reports of any serious impacts to factories because businesses prepared measures to cope with natural disasters, according to recent talks held between the FTI and its members.
However, many factory workers face indirect impacts, hampering travel between their homes and workplaces, said Mr Kriengkrai.
The floods this year have not been significant enough to cause the Joint Standing Committee on Commerce, Industry and Banking to adjust its economic forecast.
Earlier this month, the panel projected Thai GDP growth of 1.8-2.2% this year, with export growth of 2-3% and inflation at 0.5-1%.
The Industrial Estate Authority of Thailand (IEAT) is confident its industrial estates will not be affected by floods thanks to its protective measures, said IEAT governor Sumet Thangprasert.
“The current situation is normal, but we are not complacent about it. We continue to keep a close watch, especially on industrial estates located in areas prone to floods,” he said.
The IEAT spent 1.8 billion baht on developing and reinforcing flood protection systems, including the construction of flood walls.
The authority paid particular heed to four industrial estates located in Nakhon Luang, Bang Pa-in and Ban Wa in Ayutthaya and Bang Poo in Samut Prakan.
As the Chao Phraya River runs through Ayutthaya, the province receives a massive amount of runoff from the North every year, while Samut Prakan must deal with rising water level from the Chao Phraya as well as high tides near the end of the year.
CROP DAMAGE
Rujipun Assarut, assistant managing director of Kasikorn Research Center (K-Research), said estimates suggest Thailand’s rice production will lose 420,000 tonnes due to floods during September and October, which is the start of the harvesting period for in-season plantation.
Around 2.5 million rai of rice plantation area has been damaged by floods this year, including several provinces in the central plains as well as parts of the northern and northeastern regions.
Last year, only 500,000-600,000 rai was damaged by flooding.
Compared with last year, accumulated rainfall has been 6% higher this year, attributed to a larger number of storms hitting the country in 2025, he said.
“In 2024, most of the flooded areas were in the North, which has the largest rice plantation areas. But this year, farms in the central and northeastern provinces have been inundated, so the damage to rice production has been somewhat larger this year,” Mr Rujipun told the Bangkok Post.
The northern region contributes roughly one-third of Thailand’s in-season rice plantation, with the balance mainly coming from the central and northeastern regions, he said.
The ongoing floods are expected to increase rice prices by 1-2% during the two-month period. However, higher supply in November and December, both domestically and from India and Vietnam, will help to stabilise prices, said Mr Rujipun.
In terms of economic impact, K-Research deputy managing director Nuttaporn Triratanasirikul said the floods this year would lower domestic consumption, particularly among farmers and people whose homes were inundated.
These groups have to repair their homes, so they are likely to reduce their spending on other items, she said.
“Though the economic impact of the floods this year is unlikely to be significant, we have to monitor to what extent the government and concerned agencies provide remedies to those affected,” said Ms Nuttaporn.
LIMITED IMPACT ON OUTPUT
Vinit Visessuvanapoom, director-general of the Fiscal Policy Office, said the floods have not affected the country’s key industrial production base and produced a limited impact on the tourism sector.
The impact on industry mainly concerns supply chain and logistics issues, particularly in the agricultural processing sector, which may experience temporary shortages of raw materials sourced from the country’s central and northeastern regions.
This year’s floods have affected 54 provinces, with 27 provinces including Chiang Mai, Khon Kaen, Udon Thani and Sukhothai experiencing severe floods.
The agricultural sector suffered damage estimated at 590 million baht as of Oct 7, said Mr Vinit.
In 2011, Thailand faced severe floods that affected most parts of the country. Bangkok, the country’s economic hub, received what was estimated as the greatest flood in 50 years, causing economic damage of 52 billion baht, equivalent to 0.46% of GDP at that time.
The government allocates a budget for water management on an annual basis. For fiscal 2025, the budget was 111 billion baht for more than 3,000 projects, including the construction of water gates, weirs, irrigation canals, and embankment protection projects.
Following the floods of 2011, the government approved nine projects to address flooding in the lower Chao Phraya River.
The most significant of these is the Bang Ban-Bang Sai drainage canal, which spans 22.5 kilometres with a total investment budget of 21 billion baht.
Construction began in 2019 and is expected to be completed next year. The project reduces the distance for water discharge from the Chao Phraya Basin to the Gulf of Thailand by 13km, with a maximum discharge capacity of 1,200 cubic metres a second.
Combined with the existing capacity of the Chao Phraya River, it can handle a maximum discharge of 2,930 cu m per second.
In addition, there are three projects on the eastern side and two on the western side of the lower Chao Phraya Basin to mitigate the impact of floods.
Another three projects comprise the dredging of a 20km section of the Chao Phraya River to increase its water capacity, the construction of a weir in lowland areas outside flood levees, and the construction of a drainage canal alongside the third Eastern Bangkok Outer Ring Road.
UNDER PRESSURE
Decha Siranaraset, president of the Nan Restaurant Business Club, said the province has experienced increasingly frequent and severe flooding over the past two decades.
In his opinion, the increase in the intensity of natural disasters is a result of climate change. For example, he said he observed more intense rainfall, which he described as “rain bombs”.
In late July this year, Nan’s city centre experienced some of the worst flooding in recent history.
Historic Wat Phumin, a temple dating back more than 400 years, was among the worst hit sites in the city, with water levels rising to around two metres.
The floods severely damaged the local economy, particularly the tourism and restaurant sectors, which came to a complete halt, said Mr Decha.
Many stores were unable to operate, and a significant amount of restaurant equipment was destroyed.
Domestic tourists typically account for around 80% of Nan’s tourism sector, he said.
The increasing frequency of floods has made restaurant operators more hesitant to invest, as the threat of future flooding remains high, said Mr Decha.
He urged the government to offer short-term relief measures, such as soft loans with low interest rates, while extending repayment terms for affected businesses.
In addition, Mr Decha called for authorities to dredge rivers and canals to improve water drainage.
Discussions on flood prevention measures have been taking place since 2006, including proposals to build a reservoir, but he said progress has been slow due to budget constraints and a lengthy environmental impact assessment process.
“If the government is truly determined, it must act fast. It’s time to make a decision because preventive measures take time. People in Nan are increasingly anxious about this issue,” said Mr Decha.
WE’VE SEEN THIS BEFORE
Duangrachata Payakvichien, president of the Thai Hotels Association’s central chapter, said as cities in central provinces become more urbanised, such as Ayutthaya, new housing developments, industrial plants and factories are increasingly prone to floods.
Ayutthaya is located in a river basin, which poses a high level of flood risk.
She said the government should ensure a more efficient flood warning system for locals and businesses so people can safely evacuate and move their belongings to a safe place in enough time.
As the city develops, the authorities should study the changing waterways and adapt flood management infrastructure to match the conditions, said Ms Duangrachata.
However, she said the recent floods should not significantly impact tourism as they affected the outer districts of the city, not tourism sites such as the historical park and large hotels.
Some hotels located near the river utilise their own flood protection measures.
The level of floodwaters this year is similar to past years, not as severe as the 2011 floods, said Ms Duangrachata.
This year flooding occurred in Ayutthaya during the low season, which meant there were fewer tourists, although she said some travellers may have postponed their trips due to the water levels.
Natnicha Zorndee, chairwoman of the Phra Nakhon Si Ayutthaya Chamber of Commerce, said the province experienced minimal effects from the floods this year because young entrepreneurs were well-prepared as they are accustomed to dealing with seasonal floods.
She said most restaurants in Ayutthaya are located above floodwater levels, with only 1% affected by the recent floods, which are significantly less severe than those in 2022.
In addition to economic stimulus measures such as the “Khon La Khrueng” co-payment scheme, Ms Natnicha said the government should promote historical tourist attractions in Ayutthaya.
“We hope the government will expand promotional efforts to include attractions in districts beyond the Mueang district,” she said.
“Each district has good and unique offerings and attractions, and these should be promoted to tourists.”
COPING ADMIRABLY
Nattapon Dechasatsawat, chairman of the Sukhothai Chamber of Commerce, said most of the floods this year affected agricultural areas, reducing the purchasing power of farmers in the area by 20-30% compared with regular conditions.
Tourist arrivals decreased slightly because prospective visitors from other regions believed the floods would affect the entire province, prompting them to stay away, he said.
Mr Nattapon clarified the downtown area has not been affected by flooding.
“I want to assure people outside the province that major tourist attractions in Sukhothai such as the historical park are operational,” he said.
“We will host the Loy Krathong festival as scheduled.”
The festival is scheduled from Oct 27 to Nov 5, with some tourists already making reservations, said Mr Nattapon.