City investment center mulls China trade missions this year-A A +A
Monday, March 3, 2014
THE Davao City Investment and Promotion Center (DCIPC) is in talks with the Bureau of Investments to conduct trade missions in China this year.
DCIPC office-in-charge Ivan Cortez said that due to the rising cost of doing business in China, it is time for Davao City to take advantage of it.
"There are many businesses in China that are moving out to countries that have lesser cost of doing business like Vietnam, Thailand, Indonesia, and Cambodia," he said.
Cortez said the trade mission aims to convince businesses in China to relocate in Davao City.
He said the cost of doing business in Davao City is competitive enough to attract investors.
For example, the minimum wage rate in the city for the non-agriculture sector is P301 daily and P291 for the agriculture sector. If the retail or service sector employs more than 10 workers, the minimum wage rate is P301, and P270 if it employs less than 10 workers.
The power rates in Davao City are also cheaper compared to other cities or areas. Davao Light and Power Company, a subsidiary of Aboitiz Power Corp., has a flat rate of P7.1868 per kilowatt hour.
Cortez said the trade missions are part of their plan this year to bring in investors from China.
Cortez said Best Power, a British-owned China-based toy assembly and manufacturing company, is planning to relocate in Davao City due to the rising cost of doing business in China and after the Chinese government stopped giving incentives to the industry as it shifts its focus to much bigger manufacturing industries like steel production.
He said if the operations of Best Power are successful in Davao City, it will bring in other manufacturers because other manufacturers that are connected to the company also want to relocate their operations in Davao.
Earlier, Cortez said Philippine Trade and Investment Centre commercial counsellor Glenn G. Penaranda of the Philippine Embassy in Singapore has recommended DCIPC to attend two major Asian trade fairs: the Food and Hotel Asia 2014 in Singapore and the 18th China International Fair for Investment and Trade in Xiamen, China.
Published in the Sun.Star Davao newspaper on March 04, 2014.