Cost Of Doing Business In Davao, Part 1
Davao City is a growing metropolis that holds good promises for commercial establishments and business enterprises. At the turn of the millennium, thousands of businesses started to flourish in the city. The commercial advancement of the Davao region continues to soar high today as more and more infrastructures are being constructed for the convenience of the people and the business sector.
A business venture in the city of Davao is a wise investment. Compared to other places, the cost of doing business in Davao is considerably cheaper and very cost-effective. Other necessary expenditures such as public utilities and transportation means costs lesser as compared to other major cities in the Philippines.
The peaceful environment provides security for establishments as well as the businessmen who transact and do business here. Despite the negative image of the Southern Philippine Region as a whole, Davao City takes pride in being one of the most peaceful cities in the Philippines. To add up, it has the most commendable Police Force and the city itself is in fact one of the most livable cities in Asia.
Government agencies regulating and assisting commercial and industrial concerns in the city and business organizations are collaborating to maintain the ideal business atmosphere of the city. City Laws and Ordinances are also provided to assist businessmen within the region in their different concerns and issues.
The sub-urban mode of the metropolis and the fast-paced advancement of modern living give good grounds for healthy business market and dynamics. Though competitions are stiff among business of the same kind, the growing population continues to provide enough market demand for products to be purchased and consumed. The competition also results to high-quality products and services that are delivered to the people.
The Davao Work Force
Another thing that makes business venture favorable in the city is its work force. Davao City is a pool of talented men and women—both in the fields of professional and manual labor.
Colleges and universities in the city boast of quality education and their highly-skilled graduates. Those in skilled-jobs and manual labor were also proven effective and their population continues to rise as more training centers and schools are being erected. In fact, the city is cited as the one of the next BPO industry hubs in the country and has generated thousands of jobs from the locals for many years now.
For people, especially foreigners and expats who are planning to have a business venture here in the city of Davao, here are some information that you might find useful.
(This is the first part of a two-part series of articles on the Cost of Doing Business in Davao.)
Minimum Wage and Cost of Living Allowance (COLA)
Davao City’s minimum wage with Cost of Living Allowance (COLA) rate for non agricultural businesses ranges from Php 248.00 to Php 250.00. For agricultural businesses: plantations no more than 24 hectares wide with a maximum of 20 workers pays from Php 238- Php 240.00, while non-plantation agricultural businesses pay ranges from Php 219- Php 217.00. Those who are employed in the retail/service business (with an employment population of more than 10 employees) receives a daily pay of Php 248.00- Php 250.00 Those who are employed in the same industry whose enterprise employs less than 10 people receives Php 217- 219.00.
Watch out for the Part 2 of this series. In the next part, we’ll discuss Power Rates, Hotel Rate, Commercial Spaces Rental, Transport Cost and others.
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This article on The Cost Of Doing Business in Davao is written by Matt Regis.
More On Davao Business, Living In Davao
Tags: Cost of Doing Business, Davao Business, Minimum Wage, Work Force
