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ATTRACTING BUSINESS
I.
Hard Attraction Factors
1.
Economic stability
2.
Finance & Banking
3.
Property
4.
Infrastructure
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Airports
-
Roads & Transportation
-
Water Supply
-
Power Supply
-
Convention Facilities
-
Seaports
5.
Productivity
6.
Costs & Taxation
7.
Location
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Industrial Zones & Parks
8.
Incentives
9.
Support Networks
10.
Basic Services
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Education
-
Security
-
Healthcare
11.
Sectors & Industries
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Hi-Tech Industries
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Service Industries
12.
Markets & Opportunities
II.
Soft Attraction Factors
1.
Social Attractions
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Cultural Attractions
-
Communities & Housing
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Festivals & Events
-
Gaming
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Hotels, Resorts & Spas
-
Recreation & Entertainment
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Restaurants
-
Retirement
-
Shopping Malls
2.
People Competencies
3.
Entrepreneurship
4.
Niche Development
5.
Physical Attractions
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Historical Places
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Natural Beauty
- Sea
& Sun
-
Sports
-
Theme Parks
-
Buildings & Monuments
6.
Place Ratings & Awards
7.
Investor Satisfaction
8.
Regulation & Redtape |
Davao City, Mindanao: City in Bloom
Priority
Investment Areas of Davao City
This listing is based on a study conducted by the Services Group of
Virginia. These priority areas are believed to spur further economic
growth in the city. Qualified investors may avail of the local
incentives both fiscal and non-fiscal.
(1) Property development such as the development of industrial
estates, convention centers, residential, commercial, and office
building development;
(2) Tourism and recreational facilities such as business hotels,
restaurants, beach and mountain resorts and theme parks;
(3) Agro-business and food processing such as but not limited to
fruit processing (vacuum, dehydrated, spray dried), canned specialty
vegetables, extruded snack food, cupflower production;
(4) Light manufacturing and Assembly such as but not limited to
garments, footwear, toys, bulky kitchen and house wares; and
(5) Transshipment infrastructure/facilities such as seaport
construction and common bonded warehouse.
(6) The putting up of environmental enhancement and protection
projects,
(7) The establishment of foreign bank branches,
(8) Telecommunications (including information and communications
technology or ICT) and
(9) Educational, medical, training, and sports facilities
Business
Opportunities in Davao City Requiring Medium to Large Scale
Capitalization
1. Business Process Outsourcing
The City is now being eyed as a viable site for call center
operations and other related business process outsourcing operation
(medico-legal transcription, animation, etc.) due to its readiness
in terms of manpower, infrastructure and other required amenities.
2. Housing Development
With a backlog of more than 40,000 units, Davao City is a very
viable site for housing projects that will offer low-cost to medium
cost housing units.
3. Products and Services for Relaxation
There is a growing demand for products and services that will offer
relaxation to the growing working population such as spas, salons,
candles for aroma therapy, pillows, etc.
4. Establishment of Medical, Educational, Training and Sports
Facilities
Davao’s daytime population doubles primarily because it is
considered as the de facto capital of Mindanao serving as the center
for commerce, education, services.
In its
effort to encourage investment, the government has instituted
investment incentives. This makes investing in the area more
attractive, at the same time, making it easier to penetrate the
local market. These incentives are either fiscal or non fiscal.
A. National Government Investment Incentives
Investors may enhance their investment edge through incentives
offered by the national government. Qualified enterprises may avail
of the different incentive packages provided by the national
government.
Under Book I of the Omnibus Investments Code, an investor may enjoy
certain benefits and incentives, provided he invests in preferred
areas of investments found in the current Investment Priorities Plan
(IPP).
The IPP, issued annually by the Board of Investments (BOI), is a
list of promoted areas of investments eligible for government
incentives in consultation with related government agencies and
private sector.
An enterprise may still be entitled to incentives even if the
activity is not listed in the IPP so long as:
1. at least 50% of production is for exports, if Filipino-owned
enterprise; and
2. at least 70% of production is for exports, if majority
foreign-owned enterprise (more than 40% foreign equity),
The BOI in certain instances as indicated in the IPP may completely
or partially limit the incentives available to export products.
Under Book I of the Omnibus Investments Code, BOI-registered
enterprises are given a number of incentives in the form of tax
exemptions and concessions. These are:
Fiscal incentives
• Income Tax Holiday
• Exemption From Taxes And Duties On Imported Spare Parts
• Exemption From Wharfage Dues And Export Tax, Duty, Impost And Fees
• Tax Exemption On Breeding Stocks And Genetic Materials
• Tax Credits
• Additional Deductions from Taxable Income.
The following
fiscal incentives are in the place to entice more investors to do
business in Davao City:
Local Fiscal Incentives
• Exemption from payment of the Mayor’s permit fees, building permit
fees, business sales taxes and other fees and charges imposed under
existing city ordinances for a maximum of 3 years;
• Exemption from payment of basic real property tax for a maximum of
2 years.
Non-fiscal Incentives being offered by the Local Government of
Davao
Investor’s Assistance Services. The Davao City Investment Promotion
Center, the implementing body of the Invest in Davao Project could
do the following for investors:
a. Assist in securing business licenses and permits
b. Avail of local investment incentives
c. Business matching services
d. Find suitable sites for your business or plant location
e. Possible sources of raw materials
f. Manpower and other production needs
g. Databanking Services
Investors interested in availing of these local incentives being
granted by the City Government of Davao are advised to contact:
Davao City
Investment Promotion Center
Magsaysay Park Complex, R. Magsaysay Avenue
Davao City, Philippines
Tel. No. (06382) 2272860 and Fax (06382) 227-2880
Website: www.davaocity.gov.ph
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