Davao City has approved incentives for companies with a total of Php 3.38 billion investment in Davao City for the first nine months of 2024, already three times higher compared to the investment amount of companies that availed of incentives in 2023.
The Davao City Investment and Promotion Center said in 2023, the city only approved incentives for companies with a total of around Php 1 billion in investment.
Christian Cambaya, DCIPC Investor Assistance Servicing Unit Head, told Madayaw that the amount of investments that flowed into the city during the first nine months of the year already surpassed their Php 3 billion target.
“Target for the year Php 3 billion pero na achieve namo with just four projects. Kani tong nag apply og incentives through the DCIPC (Our target for the year is Php 3 billion but we achieved this with just four projects. These are those who applied for incentives through the DCIPC),” he said.
Monde Nissin’s capital expansion amounted to Php 2.3 billion, Vikings Cold Storage’s project cost was Php 700 million, Golden Senorita Inc’s project cost was Php 300 million while that of VA Professionals was Php 8 million.
Cambaya said that all of these companies were given incentives by the Davao City Investment Incentive Board (DCIIB) in the form of exemptions from the payment of business sales tax for three years, real property tax for two years, and Mayor’s permit fees for three years.
The exemptions are part of Davao City’s investment incentives for those who seek to invest in the focus areas of agribusiness, tourism, light manufacturing, health, education, technology, green projects, and inclusive business activities.
Monde Nissin, Vikings, and Golden Senoritas Inc. fell under the light manufacturing category while VA Professionals fell under the BPO Industry (Technology).
Cambaya attributed the increase in investment and incentive grants to their continued consultation meetings with the business sector, participation in trade shows, and the broadcast of services on Facebook and its website.
They also continue to reach out to cities that can potentially become sister cities with Davao, which in turn could bring in more investments in Davao.
Cambaya said that the sister city relationship with Jinjiang, with the agreement signed in 2018, is the most successful to date as it brought investors to the city, with one of them building a Php 24-billion steel mill plant set to operate soon. CIO
