The potential flood hazard was assessed for the Hoa Chau commune in central Vietnam in order to identify the high flood hazard zones for the decision makers who will execute future rural planning. A new approach for deriving the potential flood hazard based on integration of inundation and flow direction maps is described. Areas inundated in the historical flood event of 2007 were extracted from Advanced Land Observing Satellite (ALOS) phased array L-band synthetic aperture data radar (PALSAR) images, while flow direction characteristics were derived from the ASTER GDEM to extract the depressed surfaces. Past flood experience and the flow direction were then integrated to analyze and rank the potential flood hazard zones. The land use/cover map extracted from LANDSAT TM and flood depth point records from field surveys were utilized to check the possibility of susceptible inundated areas, extracting data from ALOS PALSAR and ranking the potential flood hazard. The estimation of potential flood hazard areas revealed that 17.43% and 17.36% of Hoa Chau had high and medium potential flood hazards, respectively. The flow direction and ALOS PALSAR data were effectively integrated for determining the potential flood hazard when hydrological and meteorological data were inadequate and remote sensing images taken during flood times were not available or were insufficient.