by Greg Deligero
IT’S about time Davao has an export processing zone, says a senior bank official who grew up in the city. The bank officer– Amado “Jun-C” B. Castano Jr., first vice president and VisMin business head of Union Bank, went on to rattle off mouth-watering economic facts about places which had established their own export processing zones.
“Almost all key cities in the Philippines have established export processing zones which are viable in generating employment. But Davao City, with a large tract of land, has zero. It’s strange,” said Castaño.
Davao City is one of the largest cities in the world with a land area of 2,443.61 square kilometers.
Castaño said smaller cities and provinces in the country have established their own exports processing zones such as Cavite, Subic, Mactan, Laguna, Pampanga and Cagayan de Oro City. They are now reaping unprecedented economic benefits for their decision.
Special economic zones including the export zones have more liberal economic, tax and labor laws than the rest of the country.
Each is designed to attract new investors to stimulate the country’s economy through increased economic activities than would otherwise be possible. These investors are usually foreign businesses who want to avail themselves of the special incentives which will afford their firms certain competitive advantages.
Castaño said the exports zones not only increase government revenues but also generate employment.
He specifically cited the Cavite’s 144-hectare export processing zone which has employed 49,000 workers coming from various parts of the country.
“We have so much land to offer. There were many concepts and plans before to put up one in Davao City but nothing has materialized,” he said.
Special economic zones in the country are under the administrative supervision of the Philippine Economic Zone Authority or PEZA which was created by virtue of a presidential decree and passed into law in 1995 during the term of former President Fidel Ramos.
There are 4 public ecozones namely: Bataan (53 operating firms), Baguio (15 operating firms), Cavite (254 operating firms) and Mactan (with 111 operating firms). On the other hand, there are about 42 privately-developed economic zones and another 25 still on the drawing boards and awaiting approval by the president.
The biggest private ecozone is the Gateway Business Park located in Gen. Trias, Cavite (southern Luzon). It is the biggest in terms of export value (due to the high concentration of electronics firms inside with high-value added products).
With the recent pronouncement of City Mayor Sara Z. Duterte-Carpio that she will prioritize the tourism and investment, Castaño expressed optimism that the city will soon establish its own export zone.
The mayor has earlier assured business leaders in the city that her administration will focus more on making the city investment-friendly.
“Davao truly gained after the previous administration’s focus on peace and order. It is about time that the city will prioritize business and tourism. We should drive up Davao as the business center of the South,” Castaño said.
The city hosting an export processing zone is likewise expected to benefit directly or indirectly through additional employment, increased foreign exchange earnings, new technology transfers and foreign direct investments. [With PIA 11 report]
