Economic Dynamism drives CdO as Vismin’s Most Competitive City PDF Print E-mail
Thursday, 21 August 2014 00:00

 

(Here good business news for Mindanao from Cagayan de Oro-based Zamboagueño business consultant and writer Mike Baños. Pep Talk is glad that this award paints a picture that it is good to invest in Mindanao.)

The City of Golden Friendship, Cagayan de Oro City, celebrates its citation as the Philippines Most Competitive City outside Metro Manila and Numero Uno in the Visayas and Mindanao.

Cagayan de Oro has been ranked by the National Competitiveness Council (NCC) as the second most competitive city in the Philippines in 2014 after Makati City, the country’s premier financial district. It also ranked second in infrastructure, fifth in government efficiency, and ninth in economic dynamism.

Although it only ranks 9th in the country’s Top 10 cities in economic dynamism, it is the lynchpin which drives Region X as the fastest growing region in Mindanao with an average annual growth rate of 5.8 percent over the last 10 years, figures from the National Economic Development Authority (NEDA) Region X office shows.

The NCC’s “Economic Dynamism” scores were based on data on the size and growth of the local economy as measured by business registrations, capital, revenues, and occupancy permits; capacity to generate employment; cost of living; cost of doing business; financial deepening; productivity; and presence of business and professional organizations.

With its sustained economic growth and the leveling up of its competitiveness recently, the possibility of Cagayan de Oro becoming Mindanao’s new business and financial center is no longer remote, according to Cayetano Paderanga Jr., former NEDA director-general and a noted economist, referring to the city’s possible status as Mindanao’s new economic leader in the near future. He said things are looking good for the city, as it is experiencing positive growth.

Paderanga added that with a local economy that keeps on growing, “the prospects for the next three years looks promising, it could extend to five or even seven years. And if we improve the governance, then the growth rate can even go higher.”

“Cagayan de Oro is a very thriving regional economy,” he said, adding that the city has most of the fundamentals covered: peace and order, stable power, very good human resource and enough investors to keep the local economy afloat.

Led by Cagayan de Oro, Northern Mindanao is the runaway domestic trade leader in Mindanao, its PhP 57.9-billion (2010) accounting for 11.3 percent contribution to the Philippines (Commodity Flow, NSO) and the leading agriculture producer in Mindanao for the period 2010-2012 (National Accounts, NSCB).

“It is the largest producer of pineapple in the country, the second largest producer of bananas and corn, the third largest producer of coconut and chicken, its fourth largest producer of cattle, its fifth largest producer of swine and the ninth largest producer of palay,” noted NEDA Region X Dir. Leon Dacanay, Jr.

Northern Mindanao also has the biggest industrial sector among Mindanao’s regions for the period 2010-2012 as well as the highest manufacturing output over the same period. Consequently, it was also the top revenue producer in electricity and water over the same period. (National Accounts, NSCB), he added.

Not surprisingly, Mr. Dacanay said the region is now at the threshold of full employment with a 94.9 percent employment rate over the last three years (Labor Force Survey, NSO).

“Cagayan de Oro is the best place I’ve invested in. Though I have investments in other countries and in Cebu and Davao, I saw a very strong middle class in CdO more than anything else,” A Brown Co. Inc. Executive Chairman Walter W. Brown said during the “Connect and Do Business in Cagayan de Oro” forum held 12 February 2014 at the Grand Ballroom of the Intercontinental Manila.

Guillermo D. Luchangco, Chairman and CEO of the ICCP Group, said its overall competitiveness was what swayed the group to locate its Pueblo de Oro Township in the city.

With Cagayan de Oro city as its economic driver, Northern Mindanao was identified by the Philippine Statistics Authority (formerly National Statistics Office or NSO) as the most labor productive and profitable region in Mindanao in the 2010 Annual Survey of Philippine Business and Industry (ASPBI).

In addition to pursuing across-the-board competitiveness, NCC Private Sector Co-Chairman Guillermo M. Luz advised stakeholders at the Regional Competitiveness Summit to work together in building cities and municipalities which are affordable, accessible, socially-acceptable, environmentally-friendly, economically-viable, and climate-resilient. The CMCI was designed to encourage local governments to regularly track data and eventually benchmark performance against other cities in the ASEAN to better manage their regions.


2 Thessalonians 3:10 “For even when we were with you, we would give you this command: If anyone is not willing to work, let him not eat.”

By: Dante Corteza

Last Updated on Friday, 22 August 2014 11:23