Rapid Assessment for Resilient Recovery and ... - GFDRR

Industry Sector 30
Summary
The objective of this chapter is to provide a preliminary assessment of damage and losses
incurred to the industrial sector by the 2011 flood. The overall sector’s assessment was led
by the United Nations Industrial Development Organization (UNIDO) in conjunction with the
World Bank and the ABAC Poll (Assumption Business Administrative College) team who
conducted the field survey in five provinces as a part of the Damage and Loss Assessment
(DALA) methodology of the United Nations (UN). Given the short period of time, collecting
detailed data from each of the industries, especially those industries that are not a member
of the Provincial Federation of Thai Industry, was not possible. The team relied on macro
data gathered from multiple sources at the provincial level, being officially-announced data
from websites such as the National Economic and Social Development Board (NESDB),
the Bank of Thailand (BOT), United Nations Development Programme (UNDP), Ministry
of Commerce (MOC), Ministry of Industry (M-Industry), Federation of Thai Industry (FTI),
National Statistics Office (NSO), and the Office of SME Promotion.
The industry sector, a major contributor to GDP, has been heavily hit by the floods. Damage
to buildings, equipment and machinery is estimated to be THB 513.9 billion. The latest
national capital stock data at current price from the NESDB was used to check the reasonableness
of the estimated damage figures. Data validation was done by visiting the affected
provinces and meeting with the private sector stakeholders to get first hand information.
As estimated, the total damage to buildings and machinery were largely on electrical
components such as motors, electrical panels and expensive diagnostic equipment for the
five provinces surveyed are worth THB 285 billion with Ayuthaya being the worst affected.
Stocks and inventories were also damaged to a lesser extent. As for losses, the figure includes
production not obtained and sales not made, higher operational costs, lower revenues
and unexpected expenditures such as humanitarian assistance to employees and the
surrounding communities. In conjunction with the Ministry of Industry’s report, the losses
are estimated to be THB 493 billion in the medium term.
For the short-, medium- and long-term needs, the monetary requirement is for mitigating
macroeconomic and individual impact at the industry level. This includes income generation,
temporary shelter provisions, provision of grants, temporary tax relief and temporary
exemption of taxes on imports toward the recovery effort. Consideration of supply-chain
linkages both within the industrial estates and outside is also emphasized. The total needs
estimate at THB 209 billion for 26 provinces, based on the five provinces under study.
Industry Overview
Often referred to as the manufacturing sector in the national account system, the industrial
sector contributes to 38.6 percent of Thailand’s GDP and is one of the main drivers of Thailand’s
exports. The flood has had a devastating effect on the industry sectors, especially for
the SMEs who may not be able to resume operations without timely financial support.
30 Based largely on the initial assessment conducted by ABAC Poll and the analysis by UNIDO.
THAI FLOOD 2011 RAPID ASSESSMENT FOR RESILIENT RECOVERY AND RECONSTRUCTION PLANNING
37