The Departments of Trade and Industry and Interior and Local Government have teamed up to ensure that local governments nationwide have environments that are conducive to investments.
The two departments recently signed a joint memorandum circular on the formulation of a Local Investment and Incentives Code (LIIC).
Under the circular, the DTI’s Board of Investments (BOI) will help local government units review their local investments code or formulate such guidelines if they do not have one yet.
Investment priority areas in each LGU will also be reviewed.
The BOI will likewise help LGUs with their respective investment promotion activities, including investment conferences, business matching sessions, and inbound and outbound investment missions—some of the activities that the BOI itself conducts to reel investments into the country.
Other forms of aid include preparation of projects, development and implementation of capacity-building programs, and conduct of training and technical assistance programs.
For the DILG’s part, it will rally the country’s LGUs to reform and update their existing LIICs and be more aggressive in implementing investment promotion programs.
The DILG will also monitor the status and progress of the LGUs in crafting their own LIICs or upgrading their existing ones. It will likewise provide the necessary support to the BOI’s regional offices, the Local Government Academy, and other relevant agencies in holding training and capacity-building activities for local governments.
According to the DTI and DILG, this joint undertaking was designed to make LGUs more competitive and more business-friendly.
Some LGU ordinances have been the subject of complaint of investors. One major example is the ban on open pit mining currently in force in South Cotabato, which runs counter to the national government’s thrust to use mining as one of the country’s growth engines.
Other LGUs, on the other hand, have rules and regulations that make it easy for businesses to set up shop and operate.
The Philippine Chamber of Commerce and Industry recently awarded the country’s most business-friendly municipalities and cities.
Bagging the awards this year were Carmona in Cavite and Guimbal in Iloilo as the most business-friendly municipalities and San Fernando, Pampanga; Balanga, Bataan; and Olongapo City as the most business-friendly cities.