Potentials and Challenges in the Island / Region

D.C. Ledres, Jr.NEDA Region 7

Multi-Stakeholder Briefing: Industry Development

and the Philippine AEC Game Plan

02 December 2014

Marco Polo Plaza Hotel, Cebu City

1 Socio-Economic Performance

2 Potentials for Growth

3 Challenges to Growth

4 Conclusion

Outline

Part 1

Socio-Economic Performance of Central Visayas, CY 2010 - 2013

Source: NSCB

GRDP Growth Rates, Central Visayas

12.511.7

10.710

7.48.5

7.1 6.86.2 5.8

12.4

10.6

9.38.2 8.1

9.4 9.18.4

7.8 7.7 7.4

0

2

4

6

8

10

12

14

1st in

20103rd in

20113rd in

2012

6th in

2013

Real Gross Regional Domestic Product, Visayas by Region

2009-2013

2009 2010 2011 2012 2013

Visayas 665,784 718,742 759,128 801,957 850,461

Region 6 217,482 227,242 241,401 259,923 270,653

Region 7 301,883 340,701 363,826 398,004 427,614

Region 8 146,419 150,799 153,901 144,030 152,194

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

In M

illio

n P

eso

s

Economic Contribution by Geographic Area to the

National Economy

Sector 2010RDP Plan Targets Accomplishments

2011 2012 2013 2011 2012 2013

GRDP 12.5 5.7- 6.1 6.5 - 7.0 6.7 - 7.3 6.8 9.3 7.4

Agriculture 3.4 2.7 - 3.2 3.3 - 3.8 3.4 - 3.9 3.7 (0.6) 0.3

Industry 22.1 6.3 - 6.8 7.7 - 8.2 7.8 - 8.3 9.3 10.9 9.7

Services 9.2 5.8 - 6.3 6.4 - 6.9 6.8 - 7.3 5.7 9.6 6.9

Sources: NSCB, Regional Development Plan

CV Performance Against RDP Targets

64.49

92.72

7.28

18.84

65.51

93.75

6.26

20.09

0

10

20

30

40

50

60

70

80

90

100

Labor ForceParticipation Rate

(%)

Employment Rate(%)

UnemploymentRate (%)

UnderemploymentRate (%)

First Sem 2014, Selected Employment Indicators

Philippines

Central

Visayas

Source: LFS

Central Visayas Poverty Indicators

(0.3)(4.7) 25.726.030.7Region VII

(3.2)1.6 24.027.225.6Siquijor

15.9 (10.2)43.928.038.2Negros Oriental

(3.4)(3.3)18.922.325.6Cebu

(6.0)(3.7) 30.636.640.3Bohol

2009-122006-09201220092006

Increase/Decrease

(percentage points)

Poverty Incidence Among

Families (%)Province

Poverty incidence declined but not significantly

Source: NSCB

AEC 2015

Under a single market regime where there is free flow

of goods, services and investments, some of the

important issues to deal with are:

• Entry of imported products

• How to make businesses efficient, agile, innovate,

productive

• How to take advantage of a huge market

• How to attract investments

• How to keep our human capital

Part 2

Potentials for Growth

Attractive Location for IT-BPM

Unique Investment Destination

Natural, Historical, and Cultural Attractions for Tourism

Potentials for Growth

Attractive Location for Manufacturing

Creative Industries and the Cultural Economy

Attractive Location for IT-BPM Operations

Tholons Top 100 Outsourcing Destinations

Cebu City – 8th

Bacolod City – 93rd

Iloilo City – 95th

Shipbuilding Industry Success Story

Tsuneishi Heavy Industries Cebu Inc

• Built 190 ships since it started

• Built 20 ships in 2014

• 13,000 direct employees

• The country now ranked 4th among the world’s

biggest shipbuilding economies next to Korea,

Japan, China

• The company plans to make the Balamban facility

the ‘mother shipyard’ in its South East Asian

operations

Source: PEZA

Bright Performance of the IT-BPM and Manufacturing

2011 2012 20132014

(1st Semester)

IT Parks/Centers

Investments in PhP Million 9,326 13,150 9,239 -Direct Employment (Average) 36,550 39,297 51,962 65,303Exports (US$) 398,492,693 484,073,887 608,166,996 411,329,765Imports (US$) 10,510,506 9,003,604 17,016,783 6,398,367

Manufacturing Ecozones

Investments in PhP Million 6,341 11,978 15,815 -Direct Employment (Average) 103,593 107,150 116,651 120,989Exports (US$) 3,619,216,106 3,576,083,695 3,551,915,392 1,808,329,926Imports (US$) 3,369,638,701 3,341,730,360 2,960,116,754 1,253,031,122

CV Economic Growth Drivers

Agriculture, Marine and Fishery Resources

Geothermal and Other Renewable Energy Resources

Minerals, Oil and Gas Deposits

Capable and Skilled Human Resource

Potentials for Growth

Public Private Partnership Program

Part 2

Challenges to Overcome to Achieve Further Growth

Favorable Business Climate

Improve Inter-modal Transport Infrastructure

Adequate and Stable Power Supply

Human Resource Development

Challenges to Growth

Sustainable Mineral and Fossil Fuel Resources Development

Revive / Reinvigorate the Agriculture Sector

Succeed in Investment Promotion Initiatives

Succeed in PPP Initiatives

Improving Connectivity

Identifying / Promoting New Locations for Productive

Activities

Thank You