HCMC – Bloomberg on May 17 cited a report by the McKinsey Global Institute claiming that the chance of flood disasters in HCMC could increase by five to 10 times by 2050 given the rapid infrastructure expansion in the city driven by economic growth.
This would result in economic and infrastructural damage, leading to billions of dollars in losses. The analysis is based on hydrological simulations, land-use maps, infrastructure databases and damage curves.
While the city can cope with flood risks that could affect 23% of its landscape, further urbanization will raise the potential for land subsidence and an increase in sea levels. This could cause some US$8.4 billion worth of real-estate damage from flooding by 2050, six times the current estimated impact.
McKinsey noted that the city still has time to adapt to avoid these risks by putting better plans in place, including relocating homes and infrastructure assets away from flood-prone areas. Investments and fundraising are also needed to reduce exposure for roads and other critical utilities, according to the report.