CHAPTER IV

POLICY/PROGRAM OBSERVATIONS AND RECOMMENDATIONS

This chapter presents the policy/program recommendations for the improvement of

succeeding years’ operations. Further, this chapter discusses the way forward or

support mechanism in achieving the purpose of the Organizational Outcome (OO)

as well as the Performance Governance System (PGS). Based on the analysis and

observations of the 2018 performance indicator, a structured and cohesive

policy/program recommendations were developed.

The recommendations thereto were arranged according to programs indicated in the

organizational outcome report card, to wit:

a. OO1: Exports and Investments Increased

i. Investment

As discussed in PGS C.5, DTI Nueva Vizcaya have no pre-structured

investment promotion plan on its priority industries despite the

accomplishment of investor assisted indicator. To be more specific, it

has not yet come-up with a concrete and cohesive plan for investment

promotion and development.

In consonance, this may be attributed to Nueva Vizcaya’s sluggish

economic growth over the past years as evidence by poor investment

climate that limit capital information, productivity improvements and

competitiveness of existing firms. Thus, the purpose of this annual

report is to determine and assess the weakness of the provincial

investment climate, supported by appropriate program specific

initiatives, that will significantly contribute in enhancing the provincial economy’s productivity and long-term

growth.

For succeeding years, DTI Nueva Vizcaya should be committed in undertaking targeted and more aggressive

investment promotion for priority industries. It necessary for DTI Nueva Vizcaya to have an industry focused

investment. To achieved this, a proper plan and strategy for marketing Nueva Vizcaya as a preferred

investment destination and enhancing Nueva Vizcaya’s positive competitiveness ranking.

For starters, the table below shows a simple investment developmental plan for certain industry within the

province, to wit:

Responsibilities
Budget (in
Strategic Stage Programs/Projects/Activities 2019 Target Timeline
PhP) Regional Office Provincial Office
Facilitate coordination with PLGU,
1. CESO Engagement
Implementation of Place and Branding February Facilitate coordination with LGUs, Private
(Growth Strategy and Brand
project of Nueva Vizcaya 30,000.00 2019 the country representative Institution/Organizations and Interest
Development)
Groups
1.1 Nueva Vizcaya Investment
Development Council Meeting Assist in the facilitation of baseline
Identified key priority investment/industry First Quarter
to endorse priority investment N/A N/A information on recommended
areas in the province 2019
areas to Sangguniang investment areas
Panlunsod
1.2 Presentation to the
Image Building Second
Sangguniang Panlunsod on Assist in the preparation of simple
N/A Quarter N/A
the recommended investment feasibility study or its equivalent
2019
areas

Approved Provincial Investment Portfolio

1.3 Submission to the
for promotion Assist in the preparation of
Provincial Governor's Office Second
implementation plan and project
for adoption and inclusion to N/A Quarter N/A
proposals for the PLGU's Annual
the PLGU 2020 Annual 2019
Investment Plan
Investment Plan
 2. Preparation of Baseline
Information on the Investment
priority areas of the province
2.1 Consultation with key
sectoral groups on investment/
industry area
2.2 Preparation of the
investment/industry analysis
Investment and in-depth understanding of
Information investment situations
Gathering and 2.3 Collaboration (i.e.
Promotion interagency) preparation of
Preparation investment/industry portfolio
/study for promotion purposes
2.4 Approval of the promo
collateral by the Nueva
Vizcaya Investment
Development Council
2.5 Preparation of investment
promotional/advertising
campaigns, seminars,
trainings, (e.g. investment
forum and missions)
3 Engagement in Investment
marketing campaigns outside
the region and/or country(ies)
3.1 Conduct of Benchmarking
activities for specific
investment missions
Investment
3.2 Conduct investment
Generation
specific information seminars
3.3 Provision of investment
counseling
3.4 Expediting Ease of Doing
Business
Post-Investment 4. Provision of post investment
Services services
2nd to 3rd
Provincial Investment/Industry Baseline Facilitate investment/industry
Quarter of N/A
Information 20,000.00 information gathering
2019
Provide resource speakers
Identified key issues, concerns, in the industry champions or
3rd Quarter
developmental gaps and problems in the successful Pre-coordination activities
20,000.00 2019
investment/industry plan investment/industry
resource person(s)
Drafting of investment/industry
implementation/communication plan (i.e.
Facilitate
policy paper, PCIP or industry study)
5,000.00 3rd Quarter investment/industry Finalize Investment/Industry Studies,
2019 analysis capacity building on a provincial level
Synchronized investment/industry plan activities
(i.e. DA, DENR)
20,000.00
Assist in the design of Facilitate the finalization of promo
Finalized promo collateral and printing
promo collateral collateral with key stakeholders
5,000.00
Identify and recommend
Provincial Investment/Industry Plan investment/industry Pre-coordination activities
resource person
15,000.00
Identify and recommend
investment campaigns Preparation on necessary investment
and/events outside the documents
Conducted bench marketing/promotional
30,000.00 region (e.g. NCR)
activity(ies)
Identify and recommend
potential investment Pre-coordination activities
50,000.00 champion areas
Identify and recommend
Conducted investment specific
investment/industry Pre-coordination activities
information seminar(s)
20,000.00 resource person
Identify and recommend
Conducted investment counseling investment/industry Pre-coordination activities
2,000.00 resource person
Download finalize IRR or
EODB implementation EODB and capacitation on Pre-coordination activities
20,000.00
investment officers
Provide assistance in post Provide assistance in post
Conducted post investment services
2,000.00 investment services investment services
ii. Exporter

As mentioned in PGS C.6, there were no direct exporters from Nueva

Vizcaya. This may be due to the following factors that undermine the

capacity of potential exporters to directly export their products: (1) poor

infrastructure, (2) high costs of logistic requirements, (3) absence of

post-harvest facilities in the province that could prolong the shelf life of

agri products in the province, as well as maintain its quality, and (4)

information asymmetry on possible trade agreements (i.e. where or

whom will they export the products). However, this would not impede

the office in promoting export of products, it will still make initiatives in

complying this mandatory performance indicator.

DTI Nueva Vizcaya should maintain the following export promotion and

development technical assistance, to wit:

 Frontline Assistance

 Information

 Specialized consultancy services

 Business matching and other export development

 Promotion services to all exporters

For continually improved the export potential of local MSMEs in the province, the following specific interventions should be
considered:

Tasks Success Measure

Physical Resource/
Objectives (what to be done to achieve (how you can Time Frame
the objective. Specific identify your Target Budget
project/activity) success/indicators)

1. Continuing assistance
under the ripples
program
2. Rattan Industry Export
Conduct • 7 Exporters
Initiative 2nd to 4th 80,000.00 (SSF
Export • No. of Exporter Assisted
Quarter of Fund and
Oriented  SSF Provision Assisted (i.e. indirect
2019 SMERA Fund)
Capacities export)
 Benchmarking cum
business matching in
Pampanga
 SMERA
b. OO2: Industries Developed

As analyzed in Chapter II of this annual report, the provincial industry clusters

have no singular approach in achieving industry development. Further, there

were perceived market failures observed by the program account manager,

as follows:

 Information Asymmetry

 The current industry cluster players’ setting are devoid of

information on local players (i.e. listing of local potential/partner in
the supply chain). This is why large manufacturers outside the
region look for partner-suppliers in the others areas (e.g.
neighboring regions & NCR), for more effective and efficient
production and easier assess (i.e. logistics) including security
reasons. This represents an information asymmetry that limits local
linkages.
 Industry development within the supply chain is also hindered by

the following: (1) incorrect choice on industry cluster due to

absence of market research and information; (2)

Insufficient/Inaccurate industry statistics; and, (3) absence of

innovative research facility for prototyping.

 Product/service improvement within the provincial industry cluster

is somewhat lagging due to lack of communication and mutual

understanding between and among industry players, which leads

to fact that it is difficult to assess the ex-ante quality of emerging

products/services.

 The absence of market testing on the part of stakeholders poses

immediate threat in the development of industry clusters. This

 problem focuses on the commercial viability and possible

improvement of products and services to target market.

 Coordination Failure

 Coordination failure is a relevant factor especially for latecomer

development provinces. It may occur when investment project

requires simultaneous investment related activities to become

viable. Take the example of region II’s promising number of

carabaos and cows coupled with good agro-ecological conditions

for dairy industry cluster development. Even if the region offers an

excellent investment climate and the potential investors recognize

its potentials, it will typically start off with lack of milk processing

facility; lack of logistics; no cooling chain facilities for finish

products; high quality inputs and specialized technical support

services available; inefficient land transport and airport facilities:

high freight costs due to low trade volumes; health and safety

procedures, and so on. The dairy industry cluster needs all the

necessary infrastructure facilities and services simultaneously to

able to maximize profits. Therefore, a major coordinated effort

should be organized to develop complementary asset, either by

public-private partnership, private investor or government

investment, for the development of the dairy industry in the region.

 Government Failure

 The government creates additional distortions. One specific

example that is prevalent in the industry cluster implementation is

 existence of “politization” of market failure by those politicians to

make themselves visible during campaign periods which will result

to incorrect measures and away from the general welfare of the

people.

In summary, the DTI Nueva Vizcaya have come up with 4 major problems

that negatively affects the industry development in the province, to wit: (i)

Weak industry clusters networks/linkages; (ii) Weak, if not absence of,

collaboration of support services among stakeholders; (iii) Lack, if not

absence of, product innovation and/or lack of value-adding; and, (4)

Insufficient financial capability & poor market network strategies. Based on

analysis and observations of performance and experience of program

account managers in the province, DTI Nueva Vizcaya have adopted the

“Vibrant Operation of Industry Clusters for Economic Sustainability

(VOICES)” initiative; wherein, its seeks respond and support the provincial

industry development. This initiative aims at addressing how the relationships

of the various stakeholders in the market be improved, from the upstream to

downstream, mapping out the primary, secondary, and tertiary industries

present in the locality. The industry clustering approach would look into how

the interplay of this relationship impact on the economic development and

competitiveness of the province, hence, there will be 9 major components, as

follows:

a) Get buy-in of sector representatives and relevant government

agencies in adopting the said initiative;

b) Mapping of businesses and/or industries existing in the locality;

c) Select subsector for promotion using the initiative according to (1)

growth potential, competitiveness; (2) poverty reduction potential,

social benefits; (3) prospects for success; and, (4) outreach;

d) Analyze subsector’s value chain (i.e. value chain analysis);

e) Industry cluster organization and team formation;

f) Industry cluster planning (i.e. develop subsector’s value chain

upgrading strategy);

g) Implementation of industry cluster development process/action plan;

and,

h) Monitor, manage impact and evaluate the overall program

i) Improve the program

For 2019, DTI Nueva Vizcaya have come up with specific interventions, based on process of the VOICES initiative, as

follows:

Success Measure
Tasks (what to be done to achieve the objective. (how you can Estimated
Objectives Physical Target Time Frame
Specific project/activity) identify your Resource/Budget
success/indicators)

Vibrant Operations of Industry Clusters for Economic Sustainability for Coffee

1. Update Coffee Baseline Information; • MSMEs
2. Formation of Provincial Coffee Council; assisted in the
3. Assist Coffee Council in the Localization of Priority
Coffee Roadmap; industries
4. Implementation of Identified Coffee
Interventions:
Provide • 46 MSMEs
 Training on Coffee SSF Machine Operation 2nd to 3rd Quarter
customized assisted in the 45,000.00
(i.e. roasting and grinding) in Talbec and NVSU 2019
interventions for Priority industries
 Coffee 102: Processing of Specialty Coffee
MSMEs for (NVSU)
countryside  Barista 102 (NVSU)
development  Entrepreneurial Training: Coffee Brand
under the priority Development
industries  Coffee Business Forum (see 001)

1. Update Cacao Baseline Information;

• MSMEs
2. Implementation of Cacao Interventions; • 10 MSMEs
assisted in the 2nd to 3rd Quarter
 Conduct of Skills and Techno Transfer Training assisted in the 10,000.00
Priority 2019
on Cacao Processing (SSF Melanger) Priority industries
industries
 Participation to Trade Fair
 Tasks Success Measure Estimated
Objectives (what to be done to achieve the objective. (how you can identify your Physical Target Time Frame Resource/Budget
Specific project/activity) success/indicators)

Vibrant Operations of Industry Clusters for Economic Sustainability for PFN, HW and Bamboo

1.Update PFN Baseline Information; • MSMEs assisted in the

2.Implementation of PFN Pipeline Priority industries
• 60 MSMEs
Interventions:
assisted in 2nd to 3rd 80,000.00
 Skills Training on Technology Transfer
the Priority Quarter of 2019
(see 003 SSF Item)
industries
 Business Development Program/SMERA
 Participation to Local Trade Fairs
Provide • MSMEs assisted in the
customized 1.Update H & W Baseline Information; Priority industries
interventions for • 180 MSMEs
2.Implementation of H & W Pipeline
MSMEs for assisted in 2nd to 3rd 100,000.00
Interventions:
countryside the Priority Quarter of 2019
 Trainings (Skills Upgrading and Mgt
development under industries
Courses)
the priority
industries
• MSMEs assisted in the
1. Update Bamboo Baseline Information; Priority industries
2. Conduct Survey/Industry Assessment; • 30 MSMEs
3. Bamboo Industry Information Analysis; assisted in 2nd to 3rd 25,000.00
4. Bamboo Industry Study/Policy Paper; the Priority Quarter of 2019
5. Focus Group Discussion with industries
Stakeholders
c. OO3: MSMEs Assisted and Developed

d. OO4: Consumer Welfare Enhanced

e. Others