Construction Seen to Fuel Davao Growth
The Davao City Investment and Promotion Center (DCIPC) expects sustained growth for the city’s economy in the next three to five years to be driven primarily by the construction sector.
“The construction industry continues to play a big role in the development of Davao,” DCIPC Officer-in-charge Ivan C. Cortez said.
The center’s records show a near doubling in the value of building permits issued by the city government, from P6.786 million or 4,379 permits in 2008 to P13.364 million or 6,624 permits in 2012.
Mr. Cortez said that the city’s construction sector faces several challenges, including the rising cost of materials, increasing competition, scarcity of skilled workers, and adopting new technologies.
“The construction industry paves the way for other socioeconomic development, so we should encourage it,” Mr. Cortez said.
The DCIPC officer also attributed Davao’s continuous economic growth to the sustained performance of the services sector, particularly in transportation, storage and communications, as well as properties and business services.
Mr. Cortez said that Davao provides an ideal environment for investors, with a minimum daily wage rate of P301, a 3.6% inflation rate and a high employment rate of 95.2%.
Out of the 35,826 businesses in the city, majority or 22,876 are retailers, 1,524 are manufacturers and 1,304 are financial institutions.
Mr. Cortez said that new investments in the city can avail of tax incentives, which include a three-year business tax holiday and a two-year basic real property tax holiday for real properties used in business. However, he added, those who invest in preferred districts will get up to five years of business tax exemption and five years of real property tax exemption.
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