Value of Flood Adaptation
Attributes
Medium: Water
Country: Vietnam
Analytical Framework(s): Economic Analysis
Study Date: 2010
Publication Date: 2014
Major Result(s)
| Resource/Environmental Good | VND (2010) |
VND (2014)1 |
USD (2014)2 |
|---|---|---|---|
| WTP for flood adaptation3 | 2,073,000.00 | 2,731,923.78 | 127.88 |
| NPV of upgrading the entire An Xuan tributary dike system for flood adaptation4 | 78,924,000,000.00 | 104,010,782,640.00 | 4,868,780.43 |
About the Inflation Adjustment: Prices in Vietnam (VND) changed by 31.79% from 2010 to 2014 (aggregated from annual CPI data), so the study values were multiplied by 1.32 to express them in 2014 prices. The study values could be expressed in any desired year (for example, to 2026) by following the same inflation calculation and being sensitive to directional (forward/backward) aggregations using your own CPI/inflation data.
Study Note: The study found that the investment cost of the project would be about VND 97,819 million over 20 years, in which over 90% of the costs would be investment costs incurred in the first two years. This means that the project would be relative expensive for government to finance. However, when the costs of the project are compared with its benefits, they are seen to be very low.
Study Details
Summary: This study identified an adaptation project to reduce the impacts of floods in one of the most floodprone areas in Vietnam and conducted a cost-benefit analysis of this project, which involves upgrading the entire An Xuan tributary dike system. The An Xuan tributary is the lowest-lying area in its district and is home to about 4,197 households who farm 812 ha of rice fields. The An Xuan tributary is also known as one of the poorest communities in the region. Its fields, properties and infrastructure are all seriously damaged by various types of floods throughout the year. The economic analysis showed that upgrading the entire An Xuan tributary dike system would bring great benefits to households and the government and would make good policy sense in light of the potential impact of climate change on rainfall and sea levels.
Site Characteristics: The An Xuan tributary basin is the lowest-lying land area in Quang Tho, Quang An and Quang Phuoc communes, all of which lie in Quang Dien district. The basin's total area is 1,200 ha. The Bo river runs from the southwest through the An Xuan tributary to the Tam Giang lagoon. This study's FGD results and KIIs confirmed the important role of the An Xuan tributary as the main rice production area within the Quang Dien district; it has a total of about 810 ha under rice cultivation. Hence, the An Xuan tributary has one of the highest flood risks in the district. Accordingly, annual floods in the area have a severe impact on households and rice production.
Comments: The authors emphasized that households living in the An Xuan tributary have diversified their livelihoods in a number of ways. However, agricultural production (e.g., rice production, livestock and aquaculture) is still their dominant source of income. Alternatives sources of income are very limited, while agricultural production is becoming more vulnerable to floods due to the impact of climate change.