Part 5: LOCAL ECONOMY

A. Investment Potentials
1. INVESTMENT PRIORITIES PLAN
1.1. FEATURES AND COMPETITIVE ADVANTAGES
Ilocos Norte is primed to be the best place in the country to invest and to do business. It is
emphatically committed to research and development, supplying investors with the highest
motivated and best skilled talent, ready to partner with enterprises in growth and
development. Ilocos Norte is bound to dominate and hold its mark as:

a. An Excellent Logistics Springboard

Situated at the northernmost part of Luzon,

Ilocos Norte is poised to be a major trade hub,
linking north and central Luzon to major
Asian economies north of Philippines such as
Taiwan, China, Hongkong, Japan, and South
Korea. Its proximity to China, the second
largest economy of the world, makes the
province an excellent springboard and
gateway for inbound-outbound logistics.

b. Bastion of Peace and Order

The friendly and God-fearing populace, coupled with the country’s finest police
force, transformed the province into a safe place ideal for investors who pursue
optimum returns and a good quality of life. The province enjoys a very low crime
rate and declared as insurgency-free.

c. The Frontier of Green Technology

In pursuit of sustainable development and

cutting-edge technology, Ilocos Norte is the
Philippines’ home of renewable energy. It the
site of Southeast Asia’s First Wind Farm. The
province’s location is best suited for renewable
energy, including a solar power plant that was
groundbroken in November 2012 at Brgy.
Paguludan, Currimao, Ilocos Norte.

Ilocos Norte is the Cleanest and Greenest

province in Region 1 and 1 st runner-up in the Philippines. True to its commitment
to the environment, the province has adopted green practices to limit dependence
on fossil fuel and to pursue sustainable development.

Ecological Profile: PROVINCE OF ILOCOS NORTE Part 5: LOCAL ECONOMY 114

 d. A Paradigm of Proactive and Committed Government

Awarded in 2011 by Department of Interior and Local Government (DILG), Ilocos

Norte is one of the top 10 high performing provinces in the Philippines. Through
the provincial government’s remarkable leadership, Ilocos Norte continues to grow
at an unprecedented rate, especially in the field of investment, agriculture, trade,
tourism, health and education, among many. Projects are underway to develop
Ilocos Norte as a global-province, positioning it to be one of the most attractive
trade and investment sites in the country and in Southeast Asia.

e. Driven by Robust Transportation, Network, and Utilities Infrastructure

Laoag City International Airport’s daily flight routes bring Ilocos Norte closer to
Manila and the world. With three daily flights provided by Airphil Express,
Philippine Airlines and Cebu Pacific, reaching the province is now more
convenient than ever. The Currimao seaport also serves a vital role in shipping and
receiving goods in and out of the province.

Ilocos Norte’s all-weather road networks connect the business centers to major
cities in the country. Telecommunication companies equipped with Digital Fiber
Optic Network (DFON) such as Smart, Globe, PLDT and Digitel are operating in
the province.

f. A Powerhouse of Foreign Remittance Inflows

Php 5.4B (2010) foreign remittance inflow to

Ilocos Norte elevates the province as an
excellent source of capital. This has afforded
greater spending power among Ilocanos, paving
the way for small, medium and large businesses
to flourish.

g. Most Business Friendly Province in Northern Luzon

The Provincial Government of Ilocos Norte was a finalist during the 2012 Most
Business Friendly Province Awards by the Philippine Chamber of Commerce Inc.
With the active support of the Provincial Government through the Ilocos Norte
Investment Center, investors experience top-notch customer service.

h. A Treasure-Trove Of Industrious, Well-Educated and Globally Competitive

Manpower

The Ilocanos’ value for quality education has made a great impact in the high
literacy level of the province. Globally-competitive schools engaged in higher
learning, including technical and vocational courses assure the steady supply of
highly competitive human resources.
Ecological Profile: PROVINCE OF ILOCOS NORTE Part 5: LOCAL ECONOMY 115
1.2. STRATEGIC INVESTMENT THRUSTS
The province’s investment thrusts, as excerpted from Annual Investment Program
(AIP) of the province, include the following:

Laoag-Currimao Industrial Park

Investment Promotion and Marketing Program
Trade and Industry Development Program
Development Planning and Marketing for Public-Private Partnership
(PPP) Packages
Tourism Development and Marketing Program
Tourism Transport Services
Mangroves Development Project
Beach Forest and Sand Dune Geologic Monument Development
Kapurpuraoan Rock Formation Development
Improvement of UNESCO Heritage Site, Commercial Arcade and
Plaza
Improvement of Burgos Lighthouse Complex
Improvement of Paoay Lake National Park
Improvement/Upgrading of the Laoag International Airport
Improvement/Upgrading of the Currimao Seaport
Integrated Coastal Management Program
Climate Change Adaptation
Farm to Market Roads
Water Supply and Sanitation Program
Solid Waste Management Program

1.3. PREFERRED INVESTMENT AREAS

The Provincial Government of Ilocos Norte, in line with its aim of developing the
economic condition of the province, laid out its preferred investment areas. These
areas were chosen on the basis of employment they generate and other socio-economic
benefits they bring to the province. The preferred investments are:
Eco-Tourism
o Accommodation Facilities
o Nature Parks/Mountain Resort
o Transportation Services
o Golf Course
o Restaurants/Food Outlets
o Other Tourism-Related Services
Mining
o Small-Scale Mining
o Large-Scale Mining
Agri-Business
o Post Harvest Facilities
o High-Value Crop Production
o Fruit/Meat Processing
o Feed Mill
o Aquaculture
o Cottage and Lime Industries
Ecological Profile: PROVINCE OF ILOCOS NORTE Part 5: LOCAL ECONOMY 116
 Alternative Energies
o Wind Power
o Solar Energy
o Bio-Fuel
Services
o Media/Advertising
o Medical Services/Facilities
o Information Technology
o Financial Services
o Engineering/Architectural Services
o Training and Sports Facilities
o Human Resource Development (i.e. Training Facilities, Educational
Institutions, etc.)

1.4. LOCAL INCENTIVES FOR DOING BUSINESS IN ILOCOS NORTE

Fiscal Incentive
o All registered enterprises qualified under the Ilocos Norte Investment
Code shall be granted full exemption from the payment of basic real
property taxes of the 35 percent share of the Provincial Government
within a specified period vis-à-vis actual investment infused.

New Enterprises
Investment Period of Exemption
P1.5 Million to P3.0 Million 3 years
>P3.0 Million to P15.0 Million 5 years
>P15.0 Million to P60.0 Million 7 years
Above P60.0 Million 7 years
Source: Ilocos Norte Investment Center (INVEST)

Additionally, qualified registered enterprises who invest more than

Php60 Million shall receive 10 percent discount on the 35 percent
provincial share from real property taxes for the succeeding five (5)
years from the expiration of the period of full exemption.

Existing Enterprises
Investment Period of Exemption
P750,000 to P1.5 Million 3 years
>P1.5 Million to P7.5 Million 5 years
>P7.5 Million to P30.0 Million 7 years
Above P30.0 Million 7 years
Source: Ilocos Norte Investment Center (INVEST)

Additionally, qualified registered enterprises who invest more than

Php30 Million shall receive 10 percent discount on the 35 percent
provincial share from real property taxes for the succeeding five (5)
years from the expiration of the period of full exemption.
Ecological Profile: PROVINCE OF ILOCOS NORTE Part 5: LOCAL ECONOMY 117
 Non-Fiscal Incentives
o Provision of a one-stop documentation center for simplified
documentation procedures;
o Assistance in securing local permits and licenses;
o Assistance in labor recruitment;
o Assistance in securing direct source of electric power, water supply,
communication and other public utilities;
o Assistance in the negotiation of special rates for industries with a
minimum load of at least 1,000 kilowatts;
o Assistance in selection and negotiation of right of way;
o Assistance in identifying business location and factory sites;
o Facilitating access to financial and technical assistance programs of the
government; and
o Business linkages with local enterprises.

B. Trade and Industry

1. MAJOR PRODUCTS

Table 5-1. Major Products, Ilocos Norte, Cities and Municipalities, 2013
OTOP (One-Town, One-Product)
Major Industries/Products:
City/Municipality OTOP
1. Bamboo Craft Adams Soft Broom
2. Blacksmithing Bacarra Basi/Vinegar
3. Ceramics/Pottery Badoc Rice Wine
4. Cornick Making Bangui Bamboo Craft
5. Furniture Making Banna Rice Coffee
6. Gifts, Toys and House Wares Batac City Empanada
7. Holiday Decors Burgos Dragon Fruit
8. Ironworks and Metal Craft Carasi Processed Cassava
9. Leather Craft Native Delicacies (bibingka,
Currimao
10. Loom Weaving tupig, puto)
11. Meat Processing Processed Rice (rice wine,
Dingras
rice cracker)
12. Mushroom Culture Dumalneg Processed Ube
13. Native Delicacies Making Laoag City Basi/Vinegar
14. Noodle Making Marcos Processed Mango
15. Salt and Bagoong Making Nueva Era Handicraft
16. Snacks Manufacturing Pagudpud Shell Craft
17. Vinegar Making Paoay Cornick
18. Wine Making (Basi, Duhat Pasuquin Garlic
Wine, Mango Wine, Rice Wine) Piddig Vinegar (tomato/sugarcane)
19. Moringga Processing Pinili Garlic
20. Dragon Fruit Production and San Nicolas Ceramics (potteries/bricks)
Processing Sarrat Loom Weaving (binakol craft)
Solsona Veggie Noodles
Vintar Honey
Source: Department of Trade & Industry, Ilocos Norte thru Ilocos Norte Investment Center (INVEST)

Ecological Profile: PROVINCE OF ILOCOS NORTE Part 5: LOCAL ECONOMY 118

2. INVESTMENT AND EMPLOYMENT
Table 5-2. Investments Generated (All Sources), 2012
Source Amount
Business Name Registration 725,136,730.38
SEC Registered Firms
DTI Financing Programs
Priority SMEs (Model OTOPs) 57,409,938.00
Other SMEs
Infrastructure
Grants
Trainings
Equity to DTI Financing
Big Investments
Marketing Assistance Program
CARP Program 19,242,165.00
S TOTAL 801,788,833.38
Source: Department of Trade & Industry, Ilocos Norte thru Ilocos Norte Investment Center (INVEST)

Table 5-3. Investments in Leading Industries, 2012

Source Amount
Agri-products
Ceramics 331,250.00
Fine Jewelry
Food Processing 45,870,038.00
Furniture and wood products 6,550,000.00
Garments/Textiles
Gifts, toys and housewares 4,148,650.00
Metalcrafts
Feldspar/Pebbles
Tobacco/Plants 510,000.00
Construction
Special Projects (pls specify)
CARP 19,242,165.00
Business Names Registration 725,136,730.38
- Manufacturing 75,865,662.00
- Industrial Services 3,361,500.00
- Personal Services 422,490,346.38
- Trading 223,419,222.00
TOTAL 801,788,833.38
Source: Department of Trade & Industry, Ilocos Norte thru Ilocos Norte Investment Center (INVEST)

Ecological Profile: PROVINCE OF ILOCOS NORTE Part 5: LOCAL ECONOMY 119

 Table 5-4. Employment in Leading Industries/Sectors, by Quarter, 2012
SOURCE Q1 Q2 Q3 Q4 TOTAL
Agri-products 0 0 0 0 0
Ceramics 2 4 2 2 10
Fine Jewelry 0 0 0 0 0
Food Processing 159 157 104 242 662
Furniture and wood products 15 26 7 3 51
Garments/Textiles 0 0 0 0 0
Gifts, toys and housewares 38 41 62 72 213
Metalcrafts 0 0 0 0 0
Feldspar/Pebbles 0 0 0 0 0
Tobacco/Plants 15 6 0 8 29
Construction 0 0 0 0 0
Special Projects (pls specify) 0 0 0 0 0
CARP 60 315 220 570 1,165
Others: Business Names
2,817 1,516 1,031 712 6,076
Registration
TOTAL 3,106 2,065 1,426 1,609 8,206
Source: Department of Trade & Industry, Ilocos Norte thru Ilocos Norte Investment Center (INVEST)

3. NUMBER OF ESTABLISHMENTS AND GROWTH OF INVESTMENTS

Table 5-5. Number of Establishments Registered, by Month, 2012

Industrial Personal
Months Manufacturing Services Services
Trading Total
January 40 12 325 717 1,094
February 22 9 172 282 485
March 18 1 133 207 359
April 14 2 93 165 274
May 18 6 138 198 360
June 13 7 115 145 280
July 5 8 87 133 233
August 19 2 56 103 180
September 8 4 68 116 196
October 14 3 59 75 151
November 6 0 49 64 119
December 7 2 43 75 127
Total 184 56 1,338 2,280 3,858
Source: Department of Trade & Industry, Ilocos Norte thru Ilocos Norte Investment Center (INVEST)

Ecological Profile: PROVINCE OF ILOCOS NORTE Part 5: LOCAL ECONOMY 120

Table 5-6. Growth of Investments, by Month, 2012
Industrial Personal
Months Manufacturing Trading Total
Services Services

January 5,065,000.00 617,000.00 77,874,996.38 24,657,000.00 108,213,996.38

February 4,608,000.00 249,500.00 53,376,000.00 19,677,500.00 77,911,000.00
March 8,280,000.00 10,000.00 82,160,000.00 17,196,000.00 107,646,000.00
April 1,449,662.00 30,000.00 31,456,000.00 7,843,500.00 40,779,162.00
May 16,235,000.00 305,000.00 37,070,150.00 16,021,222.00 69,631,372.00
June 22,485,000.00 155,000.00 36,584,000.00 22,730,000.00 81,954,000.00
July 310,000.00 1,135,000.00 12,554,000.00 18,086,000.00 32,085,000.00
August 3,840,000.00 240,000.00 16,568,000.00 57,092,000.00 77,740,000.00
September 1,390,000.00 330,000.00 25,422,200.00 13,455,000.00 40,597,200.00
October 6,153,000.00 240,000.00 20,363,000.00 17,303,000.00 44,059,000.00
November 5,170,000.00 0.00 17,896,000.00 3,264,000.00 26,330,000.00
December 880,000.00 50,000.00 11,166,000.00 6,094,000.00 18,190,000.00
Total 75,865,662.00 3,361,500.00 422,490,346.38 223,419,222.00 725,136,730.38
Source: Department of Trade & Industry, Ilocos Norte thru Ilocos Norte Investment Center (INVEST)

4. EMPLOYMENT GENERATED BY BUSINESS ESTABLISHMENTS

Table 5-7. Summary of Employment, by Month, 2012

Industrial Personal
Months Manufacturing Trading Total
Services Services
January 102 21 509 884 1,516
February 45 13 339 356 753
March 46 1 232 269 548
April 30 2 147 208 387
May 61 9 231 293 594
June 35 7 237 256 535
July 8 13 166 178 365
August 68 7 91 186 352
September 20 11 110 177 318
October 47 6 102 150 305
November 25 0 114 90 229
December 13 2 73 86 174
Total 500 92 2,351 3,133 6,076
Source: Department of Trade & Industry, Ilocos Norte thru Ilocos Norte Investment Center (INVEST)

Ecological Profile: PROVINCE OF ILOCOS NORTE Part 5: LOCAL ECONOMY 121

C. Market Information

1. INCOME AND EXPENDITURES

1.1. AVERAGE YEARLY FAMILY INCOME : P 140,565 (2000)
1.2. AVERAGE YEARLY FAMILY EXPENSES : P 110,006 (2000)

1.3 PROPORTION OF FAMILIES BY MAIN SOURCE OF FAMILY INCOME

Table 5-8. Number and Proportion of Families by Main Source of Income, 2000
Source Number %
TOTAL 107,044 100
Salaries and Wages 32,209 30.09
Entrepreneurial Activities 35,176 32.86
Other Source of Income 39,659 37.05
Source: National Statistics Office, Ilocos Norte

2. DISTRIBUTION OF FAMILY EXPENDITURES

Table 5-9. Distribution of Family Expenditure by Expenditure Item, 2000
Expenditure Item %
TOTAL 100.00
Food 46.20
Alcoholic Beverages 1.00
Tobacco 1.10
Fuel, Light and Water 5.70
Transportation and Communication 5.60
Household Operations 2.60
Personnel Care and Effects 4.20
Clothing, Footwear and other Wear 4.30
Education 3.70
Recreation 0.50
Medical Care 2.30
Non-Durable Furnishing 0.40
Durable-Furnishing and Equipment 1.70
Rent/Rental of Value Occupied 10.70
House Maintenance and Minor Repairs 0.60
Taxes Paid 1.50
Miscellaneous 5.20
Others 3.00
Note: Details may not add up to totals due to rounding
Source: National Statistics Office, Ilocos Norte

Ecological Profile: PROVINCE OF ILOCOS NORTE Part 5: LOCAL ECONOMY 122