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The Nikkei View

Global companies must learn from Thai floods that upended supply chains

Bangkok should avoid repeat of 2011 disaster that halted production of autos and electronics

A resident carries his belongings as he wades through a flooded street on the outskirts of Bangkok in November 2011.    © Reuters

Ten years have passed since devastating floods caused Thailand's economic activity as the "factory of Asia" to grind to a halt. Supply chains were torn asunder, and the impact was felt around the world. Although the government launched a large-scale flood control plan to prevent a recurrence of the disaster, major measures have been delayed because of the country's political turmoil.

Both the Thai government and the private sector should draw important lessons from the disaster: Bangkok must urgently address its lagging implementation of flood control measures, while major companies need to decentralize their operations and diversify their supply chains.

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