[Character and Development Pattern]
Known as the “Heart of Bicol,” Naga is the Bicol Region’s business trendsetter.    The city is also the educational, cultural and religious center.

 

Despite the Asian economic crisis, Naga is now one of the fastest-growing economies in the country. According to the Asian Development Bank (ADB), the city’s economy grew at an average pace of 6.5% annually for the period 1993 to 1998.  This is significantly higher than the growth posted by the national economy.

 

Top companies have made Naga their location of choice.  Since 1988, 3 new banks have opened every 2 years.  There are now 40 banks within the city. There has been a 100% increase in the number of hotels and inns.  A new residential subdivision has been opening every year for the past 10 years.

 

Traditionally, the Centro or old Central Business District, a contiguous area of around 30 hectares near the mouth of the Naga River, has been the focal point of city life.  Over the last 50 years—particularly during the 1960’s— commercial establishments and housing settlements grew around this urban core in a radiating fashion.  In the 1980’s and 1990’s, growth drifted eastward, leading to commercial development in the Panganiban area; and the establishment of suburban settlements in the Concepcion Grande-Del Rosario area.  

 

Development has spilled to the Metro Naga towns.   To the north, Canaman has become an expansion area for residential subdivision development.  Southwards, Milaor has become an alternative site for warehousing and bulk storage activities.  The town of Pili, east of Naga, is an agro-industrial community.


[
Local Market Size and Reach]
Naga is a significant market by itself.  It is an ideal location for companies looking for opportunities in the regional markets.   Households have an annual income that is 42% and 126% higher than the Philippine and Bicol averages, respectively.

 

INCOME DISTRIBUTION

INCOME BRACKET AVERAGE ANNUAL INCOME (US$)

Top 20%

15,399.66

Next 20%

6,350.98

Middle 20%

3,472.38

Next Bottom 20%

2,537.14

Bottom 20%

1,360.82

  Source: Cities Databook Project, ADB, 1998

 

43.7% of household expenditures are for food and beverages.  Shelter, travel and other expenditure items account for 20.9%, 5.8% and 29.5%, respectively.

HOUSEHOLD EXPENDITURE  

ITEM CAMARINES SUR NAGA CITY

Food

53.2%

43.7%

Shelter

14.6%

20.9%

Travel

4.3%

5.8%

Others

27.9%

29.5%

Source: Cities Databook Project, ADB, 1998

As the regional center of business, Naga is a hub for doing business with Metro Naga, Camarines Sur and the rest of Bicol.

The music industry and consumer goods manufacturers market test their products in the city.  This is because Naga represents the whole spectrum of the Philippine market.

NAGA’S MARKET

AREA POPULATION # OF HOUSEHOLDS

Bicol Region

4,674,855

891,541

Camarines Sur

1,551,549

288,172

METRO NAGA

 

Naga City

137,810

26,317

Bombon

12,843

1,485

Bula

57,474

9,490

Calabanga

67,408

10,827

Camaligan

19,188

2,384

Canaman

27,719

1,981

Gainza

8,412

1,162

Magarao

20,964

1,214

Milaor

22,635

2,59 3

Minalabac

41,734

6,754

Ocampo

36,316

6,102

Pamplona

29,177

4,530

Pasacao

36,070

5,078

Pili

67,393

10,471

San Fernando

27,433

3,974

Source: National Statistics Office, 2000  

Companies producing goods for export, or for the Bicol, South Luzon and part of the Visayas and Mindanao markets, will find Naga a good location for their factories or regional headquarters.  The food and beverage, feedmilling and agricultural implements industries manufacture and distribute goods from Naga to other parts of the country.  Export firms involved in agribusiness, aqua-marine, and gifts and housewares have plants or regional offices in Naga.  Many of the city’s financial institutions have made Naga their center for regional and South Luzon operations.

[
Investment Growth]
Investments in the Bicol region have been on the upswing for the last 5 years.  Department of Trade and Industry (DTI) data show that the region generated a total of P 4.5 billion in the year 2000, a 52% increase over that of the previous year.  31% of investments were made in the wholesale and retail trade sector.  The finance, real estate and business services accounted for 17% of the total.  15% of investments were in the manufacturing sector.

INVESTMENTS GENERATED BY SECTOR – BICOL REGION
(million pesos)

SECTOR 1999 2000

Agriculture, Fishery and Forestry

644.932

363.163

Mining/Quarrying

11.927

38.640

Manufacturing

370.062

694.981

Electricity, Gas and Water

21.564

191.306

Construction

199.068

324.131

Wholesale and Retail Trade

726.504

1,411.19

Transportation, Storage and Communication

204.075

241.550

Finance, Insurance, Real Estate and Business Services

293.821

779.412

Community, Social and Personal Services

509.178

493.814

TOTAL 2,981.131 4,538.187

Source: Department of Trade and Industry, 2000

The province of Camarines Sur has consistently accounted for the biggest chunk of Bicol investments.  50% of all investments were made in the province in 2000.

 

INVESTMENTS GENERATED BY PROVINCE – BICOL REGION (million pesos) 

PROVINCE 1999 2000

Camarines Sur

1,343.256

2,279.686

Camarines Norte

201.550

409.428

Albay

639.585

989.713

Sorsogon

218.100

445.219

Catanduanes

91.060

225.821

Masbate

487.580

188.288

TOTAL

2,981.131

4,538.155

Source: DTI, 2000

The pace of investment growth in Naga City can be seen from the number of registered firms.  45% of the total registered with DTI, for the period 1996 to 2000, located in Naga. 


[
City Product]
In 1998, the city’s per capita gross product stood at P 79,874.02 (US$ 1,953 at P 40.893: US$ 1.00).  This is 115% higher than the Philippine per capita GNP.

GROSS CITY PRODUCT 

SECTOR

CITY PRODUCT (P)

Agriculture & Mining

13,331,753.00

Manufacturing, Utilities & Construction

1,386,215,852.00

Wholesale & Retail Trade, Transport & Communication

1,218,872,214.00

Finance, Insurance, Real Estate & Business Services

6,911,882,867.00

Government

706,199,056.00

Others

554,120,745.00

TOTAL 10,790,622,487.00

Source: Cities Databook Project, ADB, 1998  


[
Major Investors]

Beverage giants Coca-Cola and Pepsi have long established bottling plants in Naga City. These serve the whole Bicol market.


Many multinational and Philippine firms operate profitably in Naga.  Many of these have regional or South Luzon operations.  They are usually engaged in real estate and property development, transportation and communications, banking and financial services, food and beverage manufacturing and distribution, and consumer goods distribution.  Some of these firms are:  

 

ABN-AMRO Savings Bank

Allied Banking Corporation

Asia Brewery

Ayala Land

Banco Filipino

Bank of the Philippine Islands

Bayan Telecommunications

China Banking Corporation

Coca-Cola Bottlers Phil., Inc.

Consolidated Industrial Gases, Inc.

Development Bank of the Philippines

Digital Telecommunications

Equitable-PCI Banking Corporation

Euro-Med Laboratories Phils., Inc. 

Ever Industries

Fil-Estate

Fortune Tobacco Corp.

Globe Telecoms

Greenwich Corporation

ING Insurance

Insular Life Assurance Co., Inc.

International Pharmaceuticals, Inc.

Jacinto Steel Corporation

Jamaica Realty and Development Corp.

Jollibee Foods Corp.

JVC Phils.

Land Bank of the Philippines

LBC Bank

Liberty Commercial Center

McDonald’s

Mercury Drug Corporation

Metro Drug Distribution

Metropolitan Bank and Trust Company

Naga Air Ventures/Asian Spirit

Nestle Corporation

Pepsi-Cola Products Phil., Inc.

PHILAM Life and General Insurance

Philippine Airlines

Philippine National Bank

Philippine Postal Savings Bank

Philippine Telephone and Telegraph

Philippine Veterans Bank

PHILUSA Corporation

Procter and Gamble Phils., Inc.

PRU Life Insurance Corp.

Prudential Bank and Trust Company

Purefoods Corp.

Republic Asahi Glass Corporation

Republic Flour Mills

Rizal Commercial Banking Corporation

San Miguel Corporation

Sanyo Phils.

Security Bank and Trust Company

Selecta Dairy Products

Semexco Marketing Corporation

Sharp Phils.

SMART Telecommunications

Tanduay Distillers

Triple V Corporation (Shakey’s)

Ubix Corporation

Union Ajinomoto, Inc.

Union Bank

United Coconut Planters’ Bank

United Laboratories, Inc.


Small and medium-scale enterprises dominate the trading, and community, social and personal services sectors.  In manufacturing and processing, their activities fall under any of the following broad categories:

 

Aqua-Marine Processing

Auto Body-Building

Bakeshop

Coconut Oil Milling

Construction Materials

Feedmilling

Food Processing

Furniture and Upholstery

Garments Manufacturing

Ice Cream Manufacturing

Ice Plant and Cold Storage

Machine Shop

Metalworks

Printing and Publishing

Rice Milling

Shoes/Bags Manufacturing

Tire Retreading/Recapping