8 reasons why investors like Davao City

By CHENEEN R. CAPON
ABOITIZ-OWNED Davao Light and Power Company (DLPC) is having a pleasant problem of experiencing a lack of power supply to distribute due to a tremendous surge of investment in its franchise area encompassing Davao City, Panabo Coty and a fee progressive towns in Davao del Norte. Strategically located in Mindanao, the city was able to draw a total of 37,785 new and existing businesses here with a combined capitalization of P214 billion or a 1.4 percent increase from 2014. EDGE DAVAO asked Davao City Investment Promotion Center (DCIPC) head Ivan C. Cortez what makes Davao City click with investors. He named at least eight top reasons why investors come here to start new business or those already here to continue their ventures. The reasons cited are:
1Market is ripe for the picking- Davao City the convergence point in Southern Philippines and good logistics make that happen.
2Conducive environment for business— the city has the right mix of ingredients to cook a business and satisfy discriminating palate of producers, service providers, end users.
3Life is good in Davao— it may not be as big compared to well known megacities in terms of market size but businessmen who took the dip, did it not only for profits’ sake  but also for the pleasure of being in Davao City which is a reward in itself.
4The best of both worlds – urban amenities and rural pleasures all within arms length. This particular reason is hard to beat.
5There is enough space to start a business or expand on an existing one – the sprawl type of urbanization in Davao is highly preferred by those in the BPO industry especially in the voice sector since sprawl means lesser incidences of agents being recruited by a competitor.
6Public Private Partnerships and Collaboration- the Davao LGU works closely with business organizations and associations in implementing programs and projects to improve and better the business environment.
7High Productivity and availability of talent – being the center of commerce and education in Southern Philippines with over 50 tertiary institutions (colleges, universities and technical schools) – there is a high probability of running a business so smoothly in terms of manpower and productivity.
8Peace and order- it’s hard for a business to sustain its operation if it is surrounded with conflict. Peace and order in Davao City did not just entice businessmen but also migrant who could add to the growing market in the city. In a speech before members of the Rotary Club of East Davao composed of business executives, top professionals and a sprinkling of expatriates, DLPC chief operating office Arturo M. Milan reported that kilowatthour growth in his firm’s franchise area in 2014 was 8 percent, It grew another 8 percent in 2015 and in 2016, the projected growth is now 12 percent. █