Cagayan de Oro sparks Region X as Most Competitive City in the Philippines

Nov 10, 2013



Led by Cagayan de Oro, Northern Mindanao remains the fastest growing region in Mindanao with an average annual growth rate of 5.8 percent over the last 10 years (NEDA/NSCB) - Photo by Taum'a Udasco

The World Economic Forum defines competitiveness as a “set of institutions, policies and factors that determines the level of productivity of a country.”

According to the National Competitiveness Council (NCC), Cagayan de Oro is the Philippines’ most competitive city in 2012.


NCC measured a city’s competitiveness through three indicators: economic dynamism, government efficiency and infrastructure.


Guillermo Luz, NCC private sector chairman, said the rankings can be used by investors in placing their investments.  Luz said an LGU has to prove its competitiveness by showing data to back its claim. Makati, Cebu and Davao did not submit data that would measure their competitiveness.


For the economic dynamism index, a city was measured for business registration figures; employment, and financial institutions. For government efficiency, a city it was judged in terms of transparency and accountability, public finance, performance recognition, business responsiveness and basic government services. For infrastructure, data for a city’s road network, basic utilities and registered vehicles were collated.


Due in a large part to Cagayan de Oro’s resilience and dynamism, Northern Mindanao’s economy grew 7.4 percent in 2012, up from the previous 5.8 percent growth registered in 2011.


Growth was led by the services sector which contributed 41.8 percent, doubling growth to 9.0 percent compared to 4.6 in 2011. Industry accounted for 33.4 percent, expanding 9.2 percent in2012 from 6.7 percent the previous year. AHFF, which constituted 24.8 percent of the region’seconomy, slowed down with a 2.5 percent growth in 2012 from 6.5 percent in 2011.


“Northern Mindanao was the seventh biggest regional economy in the Philippines in 2012 with a 3.8 percent,” said Brenda Lynn M. Castro, officer in charge, National Statistical Coordination Board –Regional Division 10 (NSCB-10).


For the second year in a row, Ms. Castro said Region X led all regions in Mindanao with a per capita GRDP of P53,632 and per capita index of 81.4, outperforming all regions including Davao (per capita GRDP P52,201 and 79.2 per capita index) and Soccsksargen (per capita GRDP P40,043 and 60.8 per capita index).


In addition, the region’s per capita GRDP grew 5.5 percent in 2012, higher than the 3.9 percent growth registered in 2011. Nationwide, Region X ranked sixth in terms of per capita GRDP.


“This is a very impressive performance considering the relatively good performance of the economy in 2011,” said Engr. Clark Y. Clarete, chief, Knowledge Management Division of NEDA-10 during the news conference hosted by the NSCB.


The NSCB adjusted Region X’s GRDP growth in 2011 to 5.8 percent from the previously reported 2.5 percent after the Regional Development Council –X (RDC-X) petitioned the agency for a re-estimation, particularly the construction sub-sector which showed a deceleration from 10.8 percent in 2010 to -27.2% in 2011.


RDC-X through NEDA-X Regional Director and RDC-X Vice Chair Leon M. Dacanay noted how funding released for DPWH X alone increased 11.05 percent from P5.1-5.7 billion. Funding released for the Laguindingan Airport Development Project (LADP) likewise increased 83.34% from P 0.74 to P 1.4-billion. The private sector boom in construction was likewise evident throughout the region.


Northern Mindanao accounted for the second largest regional economy in Mindanao with a Gross Regional Domestic Product (GRDP) of P239.677-billion or 26.3% of the Mindanao economy, just a hair’s breadth away from Davao Region which had a GRDP of P242.230-billion or 26.6% of the island’s economy.


Region X likewise made the second largest contribution to growth in Mindanao in 2012 with 1.96, close on the heels of Davao Region which contributed 1.99 and ahead of Zamboanga Peninsula (1.72), Soccsksargen (1.54), Caraga (0.88) and the ARMM (0.07).


According to the National Economic and Development Authority (NEDA) Region X Office, Region X remains the fastest growing economy in Mindanao, averaging an annual growth rate of 5.8 percent for the last 10 years.


It is the runaway domestic trade leader in Mindanao, its PhP 57.9-billion (2010) accounting for 11.3 percent contribution to the Philippines (Commodity Flow, NSO) and the leading agriculture producer in Mindanao for the period 2010-2012 (National Accounts, NSCB).


“It is the largest producer of pineapple in the country, the second largest producer of bananas and corn, the third largest producer of coconut and chicken, its fourth largest producer of cattle, its fifth largest producer of swine and the ninth largest producer of palay,” noted Mr. Dacanay in a recent presentation during the 2nd Cagayan de Oro Business and Investment Conference cum Canada Night.


Northern Mindanao also has the biggest industrial sector among Mindanao’s regions for the period 2010-2012 as well as the highest manufacturing output over the same period.. Consequently, it was also the top revenue producer in electricity and water over the same period. (National Accounts, NSCB), he added.  


Not surprisingly, Mr. Dacanay said the region is now at the threshold of full employment with a 94.9 percent employment rate over the last three years (Labor Force Survey, NSO).


Earlier, preliminary results of the 2010 Annual Survey of Philippine Business and Industry (ASPBI) showed Northern Mindanao having the highest revenues per worker, value added per worker, average revenue per establishment, and average profit per establishment among the Mindanao regions.


Liza M. Bigornia, Statistician III of the NSO Regional Office 10, said workers from Northern Mindanao recorded an average of  P2.18 million revenue per worker in 2010. In contrast, second ranked Region 11 posted P1.52 million per worker followed by Region 12 with P1.48 million per worker.

Bigornia disclosed Region 10 was also the most productive in 2010 in terms of value-added per worker posting P593,000 per worker, followed by Region 11 and Caraga with P493,000 and P392,000 per worker, respectively.

In terms of profitability, Northern Mindanao posted an average revenue of P265 million per establishment in 2010 surpassing Region 12 which ranked first among Mindanao regions in 2009, she added.

Region 10 also posted the highest average profit per establishment at P34.9 million followed by Region 11 at P32.9 million.

The ASPBI is a nationwide undertaking of the NSO which aims to provide key measures on the performance level, structures and trends of economic activities in the entire country.

Initial results of the 2010 Annual Survey of Philippine Business and Industry (ASPBI) show Northern Mindanao having the highest revenues per worker, value added per worker, average revenue per establishment, and average profit per establishment among the Mindanao regions (NSO).

The annual survey is confined to the formal sector of the economy, such as the corporations and partnerships, cooperatives and foundations, single proprietorships with employment of 10 or more and single proprietorship with branches.

According to the NSO, a total of 23,630 establishments were selected for the 2010 ASPBI with an overall response rate of 95 percent.



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