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Davao City Most Competitive Philippine City
« on: July 21, 2008, 08:27:52 AM »
A study made by the Asian Institute of Management (AIM) said Davao City has emerged as the most competitive Philippine city in recent years, surpassing Makati, Marikina, Las Pinas and Muntinlupa, in terms of social and economic growth.

SPECIAL REPORT
BY ILUMINADO VARELA JR.

Davao City, which ranked first in terms of the Cost of Doing Business, has also re-established its image as a convention city, boosting both foreign and local tourism. It has attracted migrants because of its semi-urban appeal—a dynamic business hub in a seemingly laid-back, serene setting.

The opening of the Davao-Bukidnon-Cagayan de Oro road route and international flights to Indonesia (Manado) and Malaysia (Kota Kinabalu) allowed Davao to benefit from an increase in agricultural trade and influx of tourists. With this vital infrastructure in place, the city saw a surge of growth in its food, telecommunications, agribusiness and service industries.

Light and industrial manufacturing enterprises, low and medium-cost housing and building and construction have also been on the rise.

Davao is also perceived to be generally clean, peaceful and an ideal place to raise a family.

The city, the capital of the Davao Region (Region 6), is strategically located at the Southeastern part of Mindanao. Bounded by Davao del North and the Davao Gulf on the east, it is the center of trade not only in the Southern Mindanao region and the whole of Mindanao but also in the East ASEAN Growth Area (EAGA).

The study said: “Among neighboring Asian city economies, Davao City has maintained its most competitive position in attracting fresh investments and in penetrating foreign markets owing to its resilient exports base, peaceful business climate, better quality of life and rich pool of skilled workforce.”

“With more than 1.2 million residents as primary market base, the city is conducive to business as evidenced by the presence of the top 200 companies in the area. From mere million-peso level investments poured in two decades ago up to 1992, investments peaked with a spectacular 63% growth in the succeeding years until the Asian financial crisis erupted in mid-1997,” it said.

Davao City’s ranking against other Philippine cities in terms of economic drivers

MAIN GROWTH DRIVERS OVERALL RANK

Cost of Doing Business 1st
Gynamism of Local Economy 2nd
Linkages and Accessibility 2nd
Infrastructure Development 3rd
Quality of Life (for its residents) 4th
Human Resources and Training 11th
Responsiveness of LGU to Business Needs 6th As of 2005

“Davao City emerges as one of the most competitive metro cities. The city has the highest scores in terms of Cost of Doing Business. Although it ties with Cebu and Lapu-Lapu cities in terms of ‘perceived high business profitability’ quantitative indicators show that the ‘local minimum wage’ and the ‘average rent of commercial space’ are lower in Davao than in the two cities. Furthermore, the city also has a higher score in terms of perceived ‘non-existence of informal fees’ in local government offices compared with Cebu and Lapu-Lapu and other major Philippine cities,” the study indicated.

The city also ranked high in terms of ‘perceived non-existence of informal fees’ in local government offices or LGU and national government offices, when applying for business and doing business transactions.

Overall competitive score ranking of Philippine metro cities

City Score
Davao 6.39
Marikina 6.36
Makati 6.33
Las Pinas 6.27
Muntinlupa 6.10
Cebu 6.05
Mandaluyong 6.02
Pasig 5.92
Quezon City 5.91
Mandaue 5.91
Manila 5.91
Lapu-Lapu 5.68
Pasay 5.55

As of 2005

Assessing socio-economic development The AIM study defines city competitiveness as the ability and the extent to which a city is able to provide an environment that nurtures the progress and dynamism of its local enterprises and the prosperity of its residents. City competitiveness is considered futile if it is not accompanied by a decent standard of living for its residents. Sustainable development dictates that the city makes efficient use of its natural resources, minimizing adverse effects brought about by undirected urban growth. The study said the task of local governments is to ensure that the prerequisites are laid down by fostering an environment pushing its businesses and residents to become better-off. In the next 15-20 years, the main drivers of a city’s competitiveness will be:

The Cost of Doing Business
Dynamism of the Local Economy
Linkages and Accessibility
Human Resources and Training
Infrastructure Development
Responsiveness of LGUs to Business Needs; and,
Quality of Life

Dynamism ranking of local economy of metro cities

City Score
1. Manila 6.26
2. Davao 6.20
3. Makati 6.12
4. Quezon City 6.08
5. Pasig 6.00
6. Las Pinas 5.89
7. Muntinlupa 5.86
8. Mandaluyong 5.74
9. Marikina 5.73
10.Cebu 5.73
11.Pasay 5.60
12.Lapu-Lapu 5.09
13.Mandaue 5.08

Linkages and Accessibility ranking or metro cities City Score

1. Cebu 6.93
2. Davao 6.91
3. Mandaue 6.86
4. Lapu-Lapu 6.79
5. Makati 6.72
6. Muntinlupa 6.57
7. Las Pinas 6.52
8. Manila 6.47
9. Pasay 6.30
10. Mandaluyong 6.23
11. Quezon City 6.15
12. Pasig 6.06
13. Marikina 5.72

Fast Phase Growth Other cities, which registered a fast-phased socio-economic development, include: Makati, Marikina, Las Pinas and Muntinlupa.

Dubbed as the “Commercial and Financial Center” of the Philippines, Makati used to be a marshland before it was developed by the Ayalas into a modern cosmopolitan area in the 60s. Today it is considered to be the country’s premier city in terms of commerce, entertainment and recreation.

Makati is bounded on the north of Pasig river facing the city of Mandaluyong, on the east by the municipality of Pateros, on the northwest by the city of Manila and on the south and southwest by the city of Pasay. A short 15-minute drive from the Ninoy Aquino International Airport (NAIA) and the Manila Domestic Airport, Makati has a total land area of 27.36 square kilometers or 2,736 hectares. It constitutes 43 percent of the National Capital Region’s total land area and is bigger than the neighboring cities of Pasay and Mandaluyong.

There are six five-star hotels in Makati, 461 banks, 140 insurance companies, 51 embassies, 35 consulates, 233 cooperative organizations, 2,901 food establishments, 45 pension inns, lodging houses and apartelles, eight commercial centers, 11 wet markets and 12 international organizations.

The Dynamism of Makati’s Local Economy ranks high. It has a very high score under the indicators on ‘average household income,’ ‘percentage of top 200 companies’ and ‘market size.’ ‘Growth of registered business’ is in the above average level with a score of 6.0, which is second among metro cities.

As far as Human Resources and Trading is concerned, the city is at the top rank.. The increasing presence of satellite campuses of top universities, colleges and vocational institutions in the city strongly reflects the eagerness of the local pool to further develop their skills.

In terms of Infrastructure, Makati, the Philippines’ center of finance, has very high competitiveness scores under the indicators on ‘number of ISPs.’ It has an average score in ‘vehicle density’ and a very high rating under the indicator ‘adequacy of cell phone signals.’ However, Makati goes below average in the area of ‘road congestion during peak hours. Overall, the city claims an above average rating in qualitative indicators under this driver.

Lastly, in the Quality of life driver, Makati displays high scores under peace and order-related indicators. Average to above average scores are also seen in health-related indicators. A very high rating in ‘adequacy of rest and recreational facilities’ and above average scores in the areas of ‘cleanliness of city roads and open spaces’ and ‘conduciveness of security environment for business’ seem to be wasted by below average scores on the indicators on ‘cleanliness of open bodies of water’ and ‘air quality.’

Marikina

Marikina City, considered as the Shoe Capital of the Philippines, is a lush valley bounded by mountain ranges and sliced by a river. It is located along the eastern border of Metro Manila, bounded on the west by Quezon City, on the south by Pasig City and Cainta, Rizal, on the east by Antipolo City and on the north by San Mateo. Politically subdivided into 14 barangays, it has a population of 391,170 inhabitants.

Since the mid-nineties, it has been the recipient of numerous awards in urban governance, waste management, education, cleanliness and peace and order. It is the only city in Metro Manila implementing the Solid Waste Management Act of 2003, which specifies segregation of waste at the household level. The local government has provided job assistance to thousands of unemployed citizen through the launching of job fairs and skills development program. It is one of the few cities in the Philippines that have effective commuters preferring to ride the bicycle for mobility. The rehabilitation of the Marikina River from a polluted body of water to a tourist attraction has been impressive.

Marikina has adopted an integrated approach to the pursuit of its development goals. Its local leaders declare as their vision, “to become the Philippines’ Little Singapore.”

In the study, Marikina achieves an overall score of 6.36 and is one of the most competitive metro cities. The city’s strong competitiveness can be attributed to a responsive local government led by a visionary local executive whose emphasis on good governance has inspired its constituents to cooperate. The city also got the highest scores in both drivers on infrastructure and Responsiveness of LGU to business Needs which strongly reflect the city’s well managed traffic management and waste management system, efficient business licensing process and on-line services, reasonable taxes and land use and regulatory policies and the city mayor’s effective leadership.

The city has been called “City in the Pink of Health.” It also got a high score of under the Cost of doing Business driver. It is found to be highly competitive in rent of commercial space and got an average level score for ‘local minimum wage.’

Las Pinas

Las Pinas is envisioned to be a city in the process of change, progressive but remaining to be a caring, warm community that is ideal for raising families. To fulfill this vision, the city government aims to focus on three main areas: expand its public services; upgrade its human resources and develop its tourism plan. The city sees itself as a “Home,” as exemplified by its official logo where a Mother and a child live safely inside a dwelling, in the middle of modern progress, while still maintaining family and neighborly ties.

The booming city of Las Pinas is bounded on the north and northeast by the city of Paranaque; on the east and southeast by the city of Muntinlupa; on the south by the municipality of Imus, Cavite; on the southwest and west by the municipality of Bacoor, Cavite; and the northwest by the scenic Manila Bay. Half of its land area has already developed for residential purposes, while the remainder is being utilized for commercial, industrial and institutional purposes.

It was in 1976 that Las Pinas was officially recognized as one of the towns and cities comprising the then Metropolitan Manila Area, now Metro Manila. In the mid-1980’s, the economic growth of Las Pinas was furthered boosted with the construction of the Coastal Road which directly linked Metro Manila to Cavite. Since the early 1990’s, Las Pinas has served as a gateway to the Calabarzon (Cavite, Laguna, Batangas, Rizal and Quezon) industrial growth corridor south of Manila, rapid urbanization and the influx of several large commercial establishments in the municipality.

Las Pinas is known for the famous Spanish-era bamboo organ, its jeepney factories and the white sparkling salt it produced in a traditional way, by sun drying, compared with Metro Manila’s 2.8 percent average annual growth rate, Las Pinas has grown by about 8.08 percent during the last decade, making it one of the fastest growing communities in the country. From a salt center, the city is now considered a popular shopping center.

This booming city got a score of 6.24 in Responsiveness of LGU to business Needs placing it on the second rank in this driver. This is mainly due to the city’s high ranking in indicators such as ‘effective investment promotion center’ (1st); ‘fair administration of justice’ (1st); ‘relevant policies and regulations’ (2nd); ‘responsive master development plan’ (2nd); ‘reasonable land-use policies’ (2nd) and taxes (2nd); and ‘existence of online services’ (2nd). Furthermore, the city’s self-sufficiency through aggressive revenue collection resulting in low dependency on IRA also explains the remarkable performance of Las Pinas in this driver.

Muntinlupa

Muntinlupa City lies on the southwestern coast of Laguna de Bay. Taguig, bound it on the north on the northwest by Paranaque, on the west by Las Pinas, on the southwest by the province of Cavite, south by the province of Laguna, and on the east by Laguna de Bay. It is 22 kilometers south of Metro Manila, easily accessible through the National Highway and South Luzon Expressway.

Muntinlupa is the only local government in the Philippines to be accredited by the International Standards Organization (ISO). It has an efficient one-stop shop which can process business licenses and permits in 30 minutes. The City, in fact, was recognized as the “Most Business-Friendly City in the Philippines” for 2001 and 2002. No other city in the country was ever awarded twice with such an award.

Growth in Muntinlupa can be characterized by the presence of various business locators in the new business district. The city also operates a hospital (the Ospital ng Muntinlupa) thru a non-government organization. It is run like a private hospital, that has few of the usual inefficiencies of typical government hospitals.

Muntinlupa prioritizes several developmental projects that include: education and youth, health, peace and order, environment and sanitation, socialized housing for the urban poor, economic development, livelihood and employment and local governance.

With regard to infrastructure, Muntinlupla has an above average score with a ranking of 10th among the 13 metro cities. Meanwhile, the quality of life of the city has above average ratings. Recreational facilities, cleanliness of city roads and security to businesses were also rated ‘above average’.

Over the last five years, Muntinlupa has made tremendous efforts to tie up with towns and cities overseas as a way of exchanging culture and techniques in local governance. This strategy has had multiplier effects in the continuing development of the city.

Meanwhile, the city had scored high under adequacy of ‘rest and recreational facilities’ and above average ratings in terms of cleanliness of city roads and open public spaces, as well as conduciveness of security environment for business. It could be noted, however, that the city achieved below average scores in cleanliness of open bodies of water, quality of air, and number of policemen and health workers per 100,000 population.

Most competitive mid-sized cities

Meanwhile, most competitive mid-sized cities include Bacolod, Batangas, Iloilo, San Fernando in Pampanga and Iligan emerge as the most competitive cities in this round of the PCCRP.

Bacolod city is number one in the Quality of Life driver particularly in the ‘conduciveness of the security environment to business’ indicator. It also scores high(2nd place) in ‘cleanliness of road and open public places.’ In the Infrastructure driver, Bacolod also has the highest scores in the following indicators: ‘reliability of ISPs’ and ‘well maintained road/ road networks.’ This was further confirmed in the FGDs when participants considered the expansive and wide road networks of the city, as well as the ample supply of water as the city’s strengths.

Although the reputed “ City of Smiles” does not top in any of the quantitative indicators, its high scores imply that the survey respondents had a good perception of Bacolod’s competitiveness.

Over the past two decades, Batangas City has been experiencing a tremendous growth in trade and industry. The city, according to respondents, anchors its competitiveness on power, its port and people.

San Fernando, Pampanga’s strategic location within the Manila-Clark-Subic Economic Triangle makes it a growing agro-industrial-commercial metropolis. A growing business district, a cluster of educational institutions and several transportation stations share the city’s center. The quality of life in San Fernando, the city of giant lanterns, is rated high. Health related and incidence of crime-related indicators strengthen its good rating.

Zamboanga, Iligan and Iloilo, meanwhile, are the top three mid-sized cities in terms of competitiveness. The cost of doing business is found to be most competitive in Zamboanga. Iligan is second in competitiveness in cost of doing business. With its famous hydroelectric power, the cost of power for industrial use in Iligan is cheap.

Iloilo City, meanwhile, is ranked the highest in terms of ‘relatively low existence of nominal fees’ associated with securing business permits and licenses in national agency offices. (PNA Features)

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Re: Davao City Most Competitive Philippine City
« Reply #1 on: August 28, 2008, 09:13:44 PM »
tinuod jud ni... ;D

grazie7y

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Re: Davao City Most Competitive Philippine City
« Reply #2 on: August 29, 2008, 08:03:29 AM »
This is good!  Davao is a special city for me.
It is only with the heart that one can see rightly; what is essential is invisible to the eye.
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hofelina

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Re: Davao City Most Competitive Philippine City
« Reply #3 on: September 20, 2008, 03:24:25 PM »
For this report you had missed the fact that the peace and order situation is questionable for Amnesty International, since a high ranking officer has a liquidation squad to clean the city from drug pushers, drug addicts and the like.
Where is the morality here?

simplylee

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Re: Davao City Most Competitive Philippine City
« Reply #4 on: September 20, 2008, 03:40:45 PM »
violence needs greater violence to be subdued
I am not the center of my life but knowing the plan of GOD for me is....
binisaya nga bible study is available sa www.gcc.com.ph

hofelina

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Re: Davao City Most Competitive Philippine City
« Reply #5 on: September 22, 2008, 06:55:11 PM »
Fighting against terrorism is like f***** for virginity! he he he, I love this double morality. Having faith in God and no respect for human lives? Hey folks!  You can not correct a mistake with another mistake.  Go and ponder about belief as a catholic or purging the misfits of the society.



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