Challenge to Davao I.T. promotion efforts
by Blogie • 16 April 2007
A group of Japanese investors was in town for a look-see over the weekend. They were 3 top executives of an I.T. firm based in Tokyo, and a Manila-based Japanese investor. They were accompanied by a Filipino investment agent who contacted the Department of Trade & Industry - XI for arrangements in Davao.
The group, led by Mr. Kunihisa Suzuki, is keen on establishing an offshore I.T. development center, focusing on software solutions. The Tokyo-based executives represent SanaDo Global Solutions. Its business development officer, Mr. Toshiya Shishido, explained that their expertise lies in Microsoft technologies, as well as in Java. During their meeting with DTI-XI and myself (as the chair of the ICT Cluster of the Economic Development Council-Region XI), Mr. Shishido expressed interest in Davao’s I.T. manpower supply. In that department, Davao can definitely compete with other I.T. investment destinations. He and his colleagues were also delighted to find out that there are Japanese language schools in the city. However, he did clarify that proficiency in Nihongo is not a prerequisite for employment. (Such is the advantage of software development — the language of programming is international.)
Aside from manpower, the Japanese group is concerned about office space and investment incentives. To this end, DTI-XI arranged for site visits to Damosa, the A&M building, and the JIB contact center training facility on Mabini St. It is rather unfortunate, however, that the group was not at all impressed by Davao’s upcoming I.T. park. For one thing, these investors are looking for an existing building. But there’s more.
Damosa Land’s I.T. park project, which has been proclaimed by the President as a PEZA-registered I.T. investment zone, should be a feather in Davao’s cap. It should be rightfully at the forefront of the city’s investment promotion efforts. But at the rate they’re going, with regards their marketing initiatives, it might be a while before we can break out the champagne….
Truth be told, it was embarrassing for me that Damosa Land’s representative was unable to satisfy the Japanese investors’ queries. Basic information such as power generation capabilities, planned rollout of Internet leased lines, etc. were unavailable. In fact, I had previously requested for similar data from Damosa Land’s marketing person several months ago. To no avail. The park’s mock-up was all that was presented to the group. A very well-crafted model, yes, but when it comes to getting investors to sign a contract, it will need a whole lot more than fancy presentations. Japanese businessmen are especially meticulous: they’ll even want to know how many electrical outlets there’ll be per room.
Fortunately, DTI-XI was able to show the potential investors alternate choices for their office space requirements. Also, Davao’s peace & order situation, and the cleanliness of the city, clearly impressed them. (It’s interesting to note that they found it a plus factor that there are plenty of coffee shops with free WiFi access here.) The only remaining concern now is the investment incentives package. Should this group decide to locate here, but opt for a place other than the I.T. park, they won’t be able to avail of PEZA incentives, which are indeed considerable.
Will present local incentives — perhaps coupled with BOI’s — be attractive enough for them to choose Davao? They are in fact considering Cebu as well. With the Queen City’s track record vis-a-vis the Land of Promise’s performance to-date, how will the latter fare in the toss-up?
Davao does have a fighting chance, but only if we shape up and strive to be at par with — or surpass — competing investment destinations in the country. This is not a chicken-and-egg problem: there is no question that we must always initiate and constantly innovate. Down to brass tacks, this translates to our being prepared with comprehensive data pertinent to investing in Davao. It isn’t a simple task, that’s why it has to be accomplished ASAP.
(This article is published in Sun·Star Davao.)
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