NORTHERN LUZON INVESTORS CONFERENCE: PROMOTING TRADE AND REDUCING BUSINESS COSTS

14 SEPTEMBER 2017, RIZAL BALLROOM, MAKATI SHANGRI-LA

Northern Luzons Contribution to the

National Economy and Prospects
Ahead

USEC. ADORACION M. NAVARRO

Undersecretary for Regional Development
National Economic and Development Authority
North Luzon contributed 16% to GDP and grew
at 6.92%, 2014-2016
Average Regional Contribution to GDP
100.0%
90.0% 14.6% 11.3% 14.4%
80.0% 32.8% 11.8%
12.6% 12.5%
Contribution to GDP

70.0% 13.0%
60.0% 16.0% 20.7%
34.3% 12.1%
50.0%
40.0% 18.5% 16.0%
30.0% 18.3% 51.9%
20.0% 36.5%
32.0%
10.0% 20.3%
0.0% 0.7%
AHFF IND SER GRDP

NCR Northern Luzon Southern Luzon Visayas Mindanao

N. Luzon ave. GRDP growth, 2014-2016: 6.92%

vs. 6.64% in NCR, 5.28% in S. Luzon, 6.56% in Visayas, and 6.56% in Mindanao during
the same period Source of basic data: PSA
 Exports and Imports, 2013-2016 (in US$'000)
80,000,000 80%
70,000,000 70%
60,000,000 60%
50,000,000 50%
40,000,000 40%
27.1%
30,000,000 19.3% 30%
17.8%
20,000,000 20%
10,000,000 -3.4% 10%
0.4%
0 0%
-10,000,000 -14.9% -10%
-20,000,000 -20%
2013 2014 2015 2016 2013 2014 2015 2016
Exports Imports
Luzon Northern Luzon Growth Rate

Source of basic data: PSA

 Visitor Arrivals, 2012-2015*
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
-
CAR I II III Northern Luzon
2012 2013 2014 2015
Note: * - 2015 data is still partial
Source of basic data: DOT
Northern Luzon in the
Philippine Development
Plan (PDP) 2017-2022
and the Regional
Development Plans
(RDPs) 2017-2022

5
PDP Strategies for Northern Luzon
Region Priority sectors based on National Industry
Roadmap Localization and Consultation (DTI-BOI)

CAR coffee, processed vegetables, aerospace, electronics, tourism

1 coffee, cacao, processed fruits, processed meat, tourism

2 processed fruits, processed meat, coffee, furniture, cacao,

agribusiness

3 bamboo, furniture, aerospace, processed meat, shipbuilding

Cordillera Administrative Regions growth potentials

Support to the growth of electronics sector and metals/

aerospace industry
Sustained increase in IT-BPO activities, eco-cultural
tourism & educational services
MSME competitiveness especially in wood-based
manufacturing, gifts, toys & souvenirs, loom weaving
Harness the potential of hydropower industry
Sustained production of semi-temperate vegetables and
fruits
Increased production of specialty crops (organic
vegetables, heirloom rice, organic coffee)
Ilocos Region as Agribusiness and Tourism Hub in Northern Philippines

Promotion, upgrading skills and food processing, product

development, provision of financing for the regions
strategic commodities and other agri-fishery products
Source: http://ilocosnorte.gov.ph/photos
(mango, coffee, cacao, processed fruits and nuts,
housewares and wearables, bangus and bamboo) ,
encouraging high value adding products for export
Adoption and promotion of farm/agri-tourism

Source:
http://www.ilocossur.gov.ph/index.php/
Cagayan Valley as Prime Water Resource, Agro-Industrial Hub
and Emerging Tourism Destination
Priority industries (dairy, processed meat and fish,
processed fruits and nuts, coffee, cacao, bamboo,
rubber, and tourism support furniture, furnishings,
http://www.lets-go-philippines.com/callao-
cave-one-of-the-best-tourist-attractions-in-
gifts and holiday decors)
cagayan-valley/

Creation of value-adding products and services

(agricultural, fishery, forest products)
Establishment of organic farms
Development of ecotourism
Service-provider for agri-business, electronic
manufacturing services, automotive, tourism,
Source:
http://provinceofisabela.ph/images/de
construction, IT-BPM, etc.
stinations/magat.jpg/
Central Luzon: A Sustainable and Caring Global Gateway , the
Logistics Hub in the Country

urban and industrial heartland

food granary
ecotourism destination
transshipment hub and international gateway

Source:
https://sites.google.com/site/rfo3dagov
ph/news-and-events
Major programs, activities and projects (PAPs) to promote
inclusive development, job creation, and poverty reduction across
regions
PDP Strategies Major PAPs in the RDPs
Improve Provide tools and equipment through the SETUP and shared-
Productivity service facility program
within Ecological Provide Extension Support, Education and Training Services
Limits Food Lane Accreditation and Registration
Increase Streamline registration processes, e.g. One-Stop Shops
competitiveness, Review potentially anti-competitive legislations and policies
innovativeness, Update local investment and incentive codes (LIIC) and assist in
resilience the formulation of LGU Business/Investment Plans
Sikat Saka Program
Adopt appropriate production inputs, farming systems and
technologies that are adaptive to the adverse effects of
climate change
Major programs, activities and projects (PAPs) to promote
inclusive development, job creation, and poverty reduction across
regions
PDP Strategies Major PAPs in the RDPs
Increase Access Provision of technical assistances to MSMEs in terms of
to Value Chains product development, packaging and market-matching;
and Innovative shared service facilities (SSF); SME roving academy for
Financing entrepreneurs
Marketing events (e.g., trade fairs, trade missions)
Financing Facilitation (e.g., NegoKarts)
Extend technical services and capacity development to
ARBs and organizations to prepare them in accessing
credit
Trainings on improving access to modern markets
Major programs, activities and projects (PAPs) to promote
inclusive development, job creation, and poverty reduction across
regions
PDP Strategies Major PAPs in the RDPs
Mitigate risks Convergence Programs provide avenues for more effective
faced by collaboration in the delivery of programs and services
vulnerable Integrated Livelihood and Emergency Employment Program
groups (DILEEP)
Social Protection program for OFWs
Enhance implementation of the Pantawid Pamilya Pilipino
Program (4P)
Government Internship Program among the youth particularly
the 4Ps beneficiaries
Skills for Employment Scholarship Program (SESP)
Education cum Livelihood Assistance Program ELAP (for
Children & Surviving Spouse of deceased OFW)
National Spatial Strategy (NSS)
Shows the direction of growth in the country based on
economic and population trends
Recognizes the increasing role of cities as engines of
economic growth and venues of growth and poverty reduction
Recognizes comparative advantages of cities and
municipalities and the benefits of agglomeration economies
Does not advocate the uniform dispersal of development
which can create diseconomies and inefficiencies
Luzon Spatial Development Framework
Connectivity
Aims to improve linkages
between and among
settlements & production areas

Source:
LSDF
Luzon Spatial Development Framework
Vulnerability Reduction
Relocation or putting up
mitigation measures for existing
settlements in danger zones
Establishment of alternative
routes to ensure access in
disaster-affected areas
(redundancy)
Limit high-density/high intensity
development in hazard prone
areas through land use
planning and zoning
15 out of 75 Flagship Infrastructure Projects are in Northern Luzon
1. PNR North 2 (Malolos-Clark 9. New Clark City Commercial Center
Airport-Clark Green City Rail) 10.North Luzon Expressway East,
2. Clark International Airport Phase I and II
New Terminal Building Project 11.Gregorio del Pilar Impounding
3. Chico River Pump Irrigation Project Project
4. Aqueduct No. 7 (AQ-7) 12.Ilocos Norte Irrigation Project,
5. Ipo Dam No. 3 Stage 2
6. Subic-Clark Cargo Railway 13.Tumauini River Multi-Purpose
Project Project
7. New Clark City National 14.Nationwide Fish Ports Project
Government Center (Package III)
8. New Clark City- Mixed Income 15.Dalton Pass East Alternate
Development Housing Road
 Growth in Northern Luzon will continue to be driven by the
Industry and Services sectors
N. Luzon Northern Luzon's GVA Growth Rate by Sector, actual and projected
ave. growth rate, (at Constant 2000 Prices)
2014-2016
16.0%
6.92%
14.0% Industry, Services,
12.0% est. growth rate est. growth rate
10.0% (2017-2022) (2017-2022)
8.0% 6.7%-7.7% 6.3%-7.4%
6.0%
4.0%
2.0%
0.0% AHFF
-2.0% 2014 2015 2016 2017 2018 2019 2020 Ave
2021 growth
2022rate
(2017-2022)
Actual Target
4.2%-5.2%
AHFF low AHFF high IND low IND high SER low SER high
Source of basic data: PSA;
Source of GRDP targets: NEDA
Growth Prospects per Region in Northern Luzon
End of Plan Target CAR Region 1 Region 2 Region 3
GRDP growth rate 5.3-6.3 7.2-8.0 6.5-7.5 6.3-7.3
GVA in AHFF growth rate 3.0-4.0 5.0-5.8 4.5-5.5 6.0
GVA in IND growth rate 4.5-5.5 7.6-8.4 7.7-8.7 8.2
GVA in SER growth rate 6.5-7.5 7.8-8.6 7.5-8.5 6.8
Investment growth rate Increased TBD P11.297 B* Increasing
Tourist Arrivals 1,760,617 TBD 977,200 Increasing
Exports US$3.65 M TBD TBD Increasing

Notes: * - target CSEZFP capital investment

TBD to be determined
Sources: Regional Development Plans 2017-2022
Thank you!