Davao is the largest city in Mindanao, with 1.2 million residents. With an economy based on agriculture and exports, the city is conducive to business, as evidenced by the presence of top-200 companies in the area. The workforce is productive, and the female labor force participation rate is one of the highest in the country. Recently economic growth has reached a ten-year high, with exports from the Port of Davao swelling to $781M in 2001.
Agriculture, especially the banana, pineapples, and cut flowers sectors, is a very important segment of the economy of Davao. Almost all kinds of fruits thrive in Davao, including the exotic durian. Other major agriculture-based exports are citrus fruits, mangosteen and other tropical fruits. Cut flowers are a growing industry, supplying 60% of total demand in the Philippines.
Investors have noticed the opportunities in Davao. In the three years leading to 2001 investments in the city soared a remarkable 64% to 8.23 billion pesos.
The Davao City government, business, and the community are committed to establishing productive linkages to reinforce the competitiveness of the city. The city government nurtures this competitiveness with a high level of responsiveness that puts priority focuses on facilitating business-friendly initiatives and on ensuring a peaceful and prosperous environment.
Tax incentives for investors offered by the local government of Davao City:
1. Building permits fees and other fees and charges.
2. Mayors permit fees, business sales taxes, other fees and charges within (3) years from the start of commercial operations.
3.Exemption from payment of basic real property tax for a period of two (2) years.
Capital and Employment Criteria:
Capital:
- At least One (1) Million Pesos but not more than Ten Million Pesos, in case of a small scale Enterprise.
- Over Ten (10) Million Pesos but not more than Forty Million Pesos in case of a medium scale Enterprise.
- More than Forty (40) Million Pesos, in case of a large-scale industry.
Employment:
- Not less than Ten (10) Persons, in case of a small-scale enterprise
- At least Twenty (20) Persons, in case of a medium-scale-enterprise
- At least One Hundred (100) Persons in case of a large industry
Preferred/ Priority Investment Areas
1. Agri-business Sector
2. Tourism Facilities
3. Trans-shipment Facilities
4. Light Manufacturing
5. Property Development
6. Branches of Foreign Banks
7. Telecommunications
8. Environmental Protection and Enhancement Projects
9. Establishment of Medical, Education, Training, and Sports Facilities
For more information, please contact:
Atty. Bienvenido D. Cariaga, President
Mr. Patrick John Castro, Executive Director
Davao City Chamber of Commerce and Industry, Inc.
2/F DCCCII Bldg., J.P. Laurel Ave.
Bajada, Davao City
Tel (63-82) 221-4148, 300-2198, 222-1402
Fax (6382) 226-4433, 300-2198
E-mail: pcastro@davaochamber.org
Website: http://www.davaochamber.org