Davao City has seen a remarkable surge in investments for the first nine months of 2024, with the local government approving incentives for projects totaling Php 3.38 billion — three times higher than the Php 1 billion approved for the entire year of 2023.
The Davao City Investment and Promotion Center (DCIPC) reported that this year’s investment inflow already surpasses their annual target of Php 3 billion, achieved through just four projects.
“Our target for the year is Php 3 billion, but we achieved this with just four projects that applied for incentives through the DCIPC,” said Christian Cambaya, Head of DCIPC’s Investor Assistance Servicing Unit, in an interview with Madayaw.
Major Contributors to Investment Growth
Among the key projects that boosted Davao City’s investment portfolio are:
- Monde Nissin’s capital expansion: Php 2.3 billion
- Vikings Cold Storage’s project: Php 700 million
- Golden Señorita Inc.’s project: Php 300 million
- VA Professionals’ BPO initiative: Php 8 million
These companies benefited from Davao City’s investment incentives, including exemptions from business sales tax for three years, real property tax for two years, and Mayor’s permit fees for three years.
The projects primarily fall under the city’s focus investment areas:
- Monde Nissin, Vikings Cold Storage, and Golden Señorita Inc. are in light manufacturing.
- VA Professionals operates in the BPO industry (technology).
Strategic Initiatives Behind the Growth
Cambaya attributed the surge to the DCIPC’s proactive approach, including regular consultations with the business sector, participation in trade shows, and effective use of online platforms like Facebook and the official DCIPC website to broadcast investment opportunities.
The city’s emphasis on forming sister city relationships has also paid off. Cambaya highlighted the partnership with Jinjiang, China, signed in 2018, as a major success. This collaboration has attracted significant investments, including a Php 24-billion steel mill plant set to commence operations soon.
Focused Investment Areas
Davao City’s incentives target key sectors such as agribusiness, tourism, light manufacturing, health, education, technology, green projects, and inclusive business activities. This strategic focus aligns with the city’s vision of fostering sustainable and inclusive economic growth.
A Promising Future for Investment
The unprecedented growth in investments underscores Davao City’s potential as a premier investment hub in the Philippines. With a robust incentive program and strategic outreach, the city is poised to sustain its economic momentum in the years to come.
