ATTRACTING INVESTMENTS TO THE AREA

AND THE ROLE OF THE LOCAL

GOVERNMENT ON INVESTMENTS
PROMOTION
OUTLINE OF THE PRESENTATION

Investment Promotion Objectives

Trade Promotion vs Investment

Promotion

Role of LGUs in Investment Promotion

REFERENCE: BOARD OF INVESTMENTS

 WHY ENCOURAGE INVESTMENTS

i. Financial

National Tax
Allotment
(previously
IRA) is not
enough

REFERENCE: BOARD OF INVESTMENTS

 WHY ENCOURAGE INVESTMENTS

i. Financial ii. Innovation

and growth
National Tax
Private Sector
Allotment
is the engine
(previously
for innovation
IRA) is not
enough

REFERENCE: BOARD OF INVESTMENTS

 WHY ENCOURAGE INVESTMENTS

i. Financial ii. Innovation iii. Role of Local Governments

and growth
National Tax Government’s role is to make
Private Sector
Allotment the environment in the area
is the engine
(previously conducive for businesses to
for innovation
IRA) is not have sustainable growth
enough

REFERENCE: BOARD OF INVESTMENTS

 INVESTMENT PROMOTION

Investment Promotion covers all activities and measures aimed at

creating favorable conditions to attract investments.

Source: Framework of the Cities

and Municipalities
Competitiveness Index (CMCI)
https://cmci.dti.gov.ph/about-
indicators.php

REFERENCE: BOARD OF INVESTMENTS

 OBJECTIVES OF
INVESTMENT PROMOTION

1. Create a positive image of the area as an investment destination

2. Encourage investors towards desired investment areas and sectors

3. Provide accurate and up-to-date information and services to potential

investors

4. Educate investors on how to do business in the area

5. Motivate existing investors to maintain and expand their investments

REFERENCE: BOARD OF INVESTMENTS

TRADE PROMOTION INVESTMENTS PROMOTION

OUTCOME
Sale of Products Job Generation

REFERENCE: BOARD OF INVESTMENTS

TRADE PROMOTION INVESTMENTS PROMOTION

TARGET CLIENT
Supply Officer Company President / CEO

REFERENCE: BOARD OF INVESTMENTS

TRADE PROMOTION INVESTMENTS PROMOTION

TIMELINE
When sale is When project is
consummated implemented

REFERENCE: BOARD OF INVESTMENTS

TRADE PROMOTION INVESTMENTS PROMOTION

MONEY INVOLVED
Procurement budget Company’s future may be
of client at stake

REFERENCE: BOARD OF INVESTMENTS

TRADE PROMOTION INVESTMENTS PROMOTION

DURATION
For as long as there is May last forever, open to
demand/sales expansion and/or diversification

REFERENCE: BOARD OF INVESTMENTS

INVESTMENT
PROMOTIONS
KEY PLAYERS

REFERENCE: BOARD OF INVESTMENTS

 ROLE OF LOCAL GOVERNMENT UNITS IN
INVESTMENT PROMOTIONS

✓ Primary leader in the local economic development in sync with the

national priorities

✓ Indispensable partner to drive programs and projects in the local

communities

✓ Key actor in investments promotion (national government, industry

associations, chambers of commerce, financing institutions, academe)

REFERENCE: BOARD OF INVESTMENTS

 ROLE OF LOCAL GOVERNMENT UNITS IN
INVESTMENT PROMOTIONS

✓ Directly impact an investor’s decision to establish its investments

✓ Investor’s window to the local economy and its access to immediate

business needs

✓ Forefront of investment facilitation

REFERENCE: BOARD OF INVESTMENTS

 Investment Promotion at
the Local Level

1 Create an environment conducive for

investments
Efficient services for investors/
4 Business-friendly procedures

2 Promote the area as a viable

investment destination

5 Set budget for investments promotion

3 One-stop Shop for investors

REFERENCE: BOARD OF INVESTMENTS

 UNDERSTANDING
LOCAL INVESTMENTS
AND INCENTIVES CODE
EDNON JOHN E. APARICIO
LGOO III / OIC-MLGOO, DILG Del Carmen, SDN
 1987 Constitution of the Republic of the Philippines
Barangay Clearance Guidelines

• Article 10 (2) - Local Autonomy

LEGAL Republic Act (RA) 7160:

Local Government Code (LGC) of 1991
BASES • Sec. 109 (4), Title VI Book I - Functions of the Local Development
Council to formulate local investments incentives to promote inflow of
investments capital
• Sec. 16, Chapter 2, Book I - General Welfare of the people to a
balanced ecology, peace. employment, health , morals, justice and
convenience of inhabitant
• Sec. 192, Chapter 5, Book II -Authority to grant tax exemptions
 Barangay Clearance Guidelines
LEGAL
DILG MC 2010-113
• 13 October 2010
BASES
• Designation of LEIPO DILG MC 2020-167
• 09 December 2020
DILG-DTI JMC 2011-01 • Guidelines in Promoting
Economic Development
• 12 October 2011 and Investments
• Formulation of the LIIC Promotion and
Establishment of LEDIP
Office /Unit in All LGUs
HB 392 - “Institutionalizing the Position of Economic
and Investments Promotion Officer in the LGU
Amending RA 7160 or the LGC of 1991”

LUIS A. FERRER IV
Cavite Congressman
 SB 2093 - “AN ACT Institutionalizing the Appointment
of Economic and Investment Promotion Officers in Local
Government Units, Amending for the Purpose Republic
Act No. 7160, Otherwise known as the local government
code of 1991”

Sen. MARK A. VILLAR

LEGAL BASES
Barangay Clearance Guidelines
Mandanas-Garcia Supreme Court Ruling
• 03 July 2018
• The SC ruled that the determination of the just share of the
LGUs should not be based solely on national internal
revenue taxes but on all national taxes. The SC also ruled
that any mention of “internal revenue allotment” in the
LGC of 1991 shall be understood as pertaining to the
allotment of the LGUs derived from the national taxes.
 Executive Order No. 138 s. 2021
LEGAL BASES
• 01 June 2021
Barangay Clearance Guidelines

• Full Devolution of Certain Functions of the Executive

Branch to Local Governments, Creation of A Committee on
Devolution, and for Other Purposes
Philippine Development Plan 2023-2028
• 2023
• Part III: Transform Production Sectors to Generate More
Quality Jobs and Competitive Products
• Chapter 9: Promote Trade and Investments
• Chapter 10: Promote Competition and Improve Regulatory
Efficiency
PDP 2023-2028: Economic and Social Transformation for
a Prosperous, Inclusive, and Resilient Society

PDP 2017-2022: A Healthy and Resilient Philippines

The Local 2.
Investments Investments
Priority
and Areas (IPAs)
1. Sound 3. Incentives
Incentives Investment to
Policy Investors
Code
otherwise
known as LIIC
the “LIIC”
 LIIC OBJECTIVES

Harmonization Consistency & Seal of Good

Investments
of investment Transparency Effective & Housekeeping
promotion
policies of local Efficient IPC / Good
marketing
(National & investment services
tool Governance
Local) policies
 Local
LIIC FRAMEWORK
Declaration of Definition of Investments
Title
Policy Terms and Incentives
Board (LIIB)

Investments Investments Incentives

Promotion Priority Areas Registration (Fiscal & Non-
Center (IPC) (IPAs) Fiscal)

Final
Appropriations
Provisions
Must be clear, consistent with the LGU’s Vision
and Mission and aligned with national and

POLICY OF LGUs
regional thrusts; CDP, CLUP & Zoning

INVESTMENT
Regulation/Ordinances

Incentives should be fair, time-

bound and consistent with laws,
rules and regulations

Industry / business should enhance positive effects on the

environment, encourage use of indigenous materials, local
labor, fair treatment of employees, contractors, service
providers, promote safe and healthy working conditions,
among others.
 Local Investments and Incentives Board

MEMBERS
LEDIPO
District Congressman or
Representative /President
League of Brgy.LCEs VICE CHAIRMAN
CHAIRMAN
(2) Sanggunian LGU Official or Private
Local Chief Executive
Chairperson ( Trade and Sector
Industry/Ways & Means)
(3) Private Sector
Representatives /
Business/NGO

COMPOSITION
 Structure of a
Local Economic
Economic
Development Enterprise
and Investment
Promotions Local Chief Business
LEDIP Office
Office Executive Development

DILG MC 2020-167 Investment

(09 Dec 2020) Services
 IPC AND ITS FUNCTIONS
Image Building Investment Generation Investor Servicing
Develop/ improve area’s Encourage foreign and Provide services to existing
image domestic investments and /or potential investors

▪ Provide an enabling /business- ▪ Conduct investment briefings / ▪ Facilitate Business Entry through
friendly environment with investment generation mix the One-Stop-Shop (IPC) – contact
streamlined procedures & activities details/hotlines are reachable
processes ▪ Collate updated investment Licenses & Permits / Identify Joint
data/figures for information of Venture (JV) Partners, RFOs /
▪ Develop/Update content of Location /Project Profiles / Raw
website/collaterals/ tagline/ investors
Materials & Suppliers, Labor Force
project /location profiles / RFOs ▪ Process / evaluate / recommend (%), Service/Utility Providers, and
/ cost of doing business application for registration Site Visit, among others

▪ Strengthen ▪ Conduct targeted company ▪ Render aftercare services ( entails

networking/partnership with visits with well researched data monitoring / periodic contact with
needed by company investors/troubleshooting of issues
stakeholders
& concerns /anticipate future needs
of investors)
 ❑Aligned with the BOI’s Investments
Priorities Plan until the Strategic
Investments Priorities Plan is
INVESTMENTS
PRIORITY approved
AREAS (IPAs) ❑Specific Industry/Sector
❑Competitive Advantage
❑Consider the raw materials and
labor force
 1) Fiscal incentive must be time-bound
(as much as possible not to exceed
one (1) year from the actual date of
GENERAL start of operation)
POLICIES ON
INCENTIVES 2) Given to new investments/projects
3) No to Regulatory / Service fees such
as garbage, sanitary, electrical, health
fees, public utilities or toll fees, etc.
 4) Fiscal incentives only as allowed

GENERAL under Book II of RA 7160 or the LCG

POLICIES ON of 1991
INCENTIVES 5) No double availment of incentives
6) More of non-fiscal incentives
 Facilitate BPLS / registration procedures

Assistance in resolving issues and concerns with

NGAs, NGOs, Employees, and other Service
Providers
Coordinate/Facilitate inbound /outbound missions
NON-FISCAL (virtual /face-to-face)
Provide updated database (JV
INCENTIVES partners/projects/RFOs/Location & Project
Profiles/Raw Materials & Supplies /Manpower)
Coordinate with NGAs such as TESDA for trainings
of manpower skills/labor force

Other aftercare services for investors, among others

 Operation of the IPC

✓Promo activities generation mix

BUDGET
✓IT Services
APPROPRIATION
✓Collaterals ( Brochures/Website,
AVPs/Project /Location Profiles)
✓Capacity Build up of IPC
personnel
Padajon sa
paglambo,
Surigao del
Norte LGUs