World-class and self-reliant cities across the country and the world have at least one or two manufacturing firms to boost their economy and provide employment opportunities to thousands of their constituents. Compared to other industries, manufacturing provides more multiplier effect as it utilizes not only its internal manpower and resources but definitely requires suppliers and services of support sectors. Further, having export-oriented manufacturing companies will provide a platform for international trade, enhance foreign reserve, and improve tourism.
This is the reason why the City Government of Naga is excited in partnering with Fuji Industries Corp., a Japan-based manufacturing firm, to establish an industrial economic zone in a 25-hectare lot in Barangays Carolina and Pacol. It is also the rationale that we have enacted this week, in our 14th Regular Session, Resolution No. 2016-440 authorizing Mayor John Bongat to enter into a tripartite agreement with said company and with Enjoy Realty and Development Corp. and Mrs. Daisy Sison-Payumo as the private developer and owner, respectively, of the aforementioned lot.
In the subject agreement, the city government will ensure the widening of roads from the Maharlika Highway in Del Rosario towards the site to cater to the needs of the economic zone as well as the public motorists and common constituents of the city which will therefore likewise benefit from the same.
Meanwhile, the total capital investments of private investors are pegged at P3.7 billion to P4.1 billion. The amount accounts only for the land, building and equipment of the economic zone. It does not yet include administrative costs on their part.
Added to this, the employment projection for Fuji alone is set at 1,500 employees, excluding the indirect job opportunities it will produce in other sectors of Naga’s local economy. Seven (7) to eight (8) more investors could still be accommodated to locate in the ecozone which will likewise generate more than 10,000 direct employment not to mention the indirect job opportunities. Increase in real property valuations in the upland barangays is also expected based on experience in CBD-I and CBD-II, by a minimum of 57 percent to as high as 8,567 percent. Taxes from real property and from businesses that will be located around the industrial ecozone will significantly contribute to the city’s delivery of effective social services, advancing our pursuit for “growth with equity”.
Overall, the industrial economic zone is a wise investment and is a vital component of propelling our Maogmang Lugar towards greater heights. For years we have been a service-oriented local economy, having Fuji and other similarly-situated companies in the city will diversify risks and expand our market-base and really open up new opportunities for the city and its people.