Region 2 or the Cagayan Valley is strategically located on the northeastern part of mainland Luzon. With a total land area of 26,388 square kilometers the Cagayan Valley is the second largest region in the Philippines.

It is bounded to the west by the Cordillera mountain range, to the east by the Sierra Madre, to the south by the Caraballo Mountains, and to the north by the Luzon Strait. The mountains in the east serve as natural barriers from devastating winds during typhoon season.

It is a natural catch basin having the largest watersheds in the country. It is crisscrossed by the longest and largest river network, the Cagayan River, also known as Rio Grande de Cagayan, with a total length of approximately 505 kilometers and a drainage basin covering 27,753 square kilometers.

The valley floor experiences cold winds from November to February, funneled through the opening in the north, and traps surface temperature usually from March to June. With most of the production and settlement areas along the valley floor, frequent exposure to extreme temperature is normal.

The region is largely an agricultural economy with thirty-seven percent (37%) of its total land area dedicated to agriculture production.

Bountifully endowed with vast natural resources and development potentials, from its rich soil, extensive coastlines, renowned rivers and lakes, and widespread forest, grasslands and mountain ranges, and teeming with highly skilled and competent workforce, the Cagayan Valley is becoming a desired investment destination in northern Philippines.

Its proximity to the East Asian countries is a given endowment that makes it not only a natural gateway for trade and investments but also a virtual link to other growth corridors.

Land Area/Population

Cagayan Valley has a total population of 3,685,744, distributed as follows:

            Batanes – 18,831

            Cagayan – 1,268,603

            Isabela – 1, 697,050

            Nueva Vizcaya – 497,432

            Quirino – 203,823

(PSA, Census 2020)

Number of Provinces/Cities and Municipalities/Barangays/Congressional Districts

Region 2 is composed of  5 provinces, namely,  the valley provinces of Cagayan and Isabela, the mountain provinces of Quirino and Nueva Vizcaya, and the island province of Batanes. It has one independent city, three component cities, 89 municipalities and 2,311 barangays within its 12 congressional districts.

Natural Resources

Land ResourcesWater ResourcesOther Endemic Resources

Rich in coastal resources, Region 2 has a total of 5,640 hectares of mangrove, 15,437 hectares corals, and 4,089 hectares of seagrasses.

It is the fourth largest region of the country accounting for about nine percent of the national land area.

It has 14 nationally proclaimed protected areas covering 997,466 hectares: Batanes Protected Landscape and Seascape; Peñablanca Protected Landscape and Seascape, Magapit Protected Landscape, Palaui Island Protected Landscape and Seascape, Baua Watershed Forest Reserve and Wangag Watershed Forest Reserve in Cagayan; Tumauini Watershed Natural Park, Fuyot Spring National Park and Northern Sierra Madre Natural Park in Isabela; Salinas Natural Monument, Dupax Watershed Forest Reserve, Casecnan Protected Landscape and Bangan Hill National Park in Nueva Vizcaya; and Quirino Protected Landscape.

The Valley is dissected by the Cagayan River, the longest river and largest basin in the country. It has a total stretch of about 520 kilometers from its source in Kasibu, Nueva Vizcaya down to its mouth in Aparri, Cagayan. It has a drainage area of almost 2.8 million hectares that extends to the Cordillera Administrative Region.

Based on the 2015 census, Region 2 has a population of 3.4 million or about 3.4 percent of the total population of the country.

  • Mangrove Area
  • Coral Area
  • Seagrass Area

Rich in coastal resources, Region 2 has a total of 5,640 hectares of mangrove, 15,437 hectares corals and 4,089 hectares of seagrasses.

It is home to the Cagayan River or Rio Grande de Cagayan  – the longest and largest River in the Philippines with 520km total stretch and drainage area of 2.8 million hectares.

The Cagayan River’s principal tributaries are the Pinacanauan, Chico, Siffu, Mallig, Magat and Ilagan Rivers. Magat River is the largest tributary with an estimated annual discharge of 9,808 million cubic meters.

The Northern Sierra Madre Natural Park is considered the richest in terms of genetic, species and habitat diversity in the Philippines.

It is considered as one of the most important protected areas systems in the Philippines owing to the myriad of rare and endangered species of flora and fauna that it supports. They include the Philippine eagle, giant golden-crowned flying fox, Philippine eagle-owl, Isabela oriole, green sea turtle, loggerhead sea turtle, hawksbill sea turtle, Philippine crocodile and dugong. It is also home to the green-faced parrotfinch and the Northern Sierra Madre forest monitor.

The park is also a habitat to many endemic species of plants.

The Luzon rainforests extend from sea level up to 1000 meters elevation, and are characterized by various species of tall, straight and slender trees of the family Dipterocarpaceae such as Shorea spp. and Hopea spp.. The Luzon mountain rain forests include areas above 1000 meters elevation, and the predominant trees are oaks and laurels. The park is home to various orchids such as Dendrobium aclinia, the leguminous plant millettia, and species of citrus (Aurantioideae).

Philippine Duck

The endemic Philippine duck thrives in a 178- hectare safe haven in Isabela province.


With a total installed capacity of 468.105 megawatts, the region has 8 grid and 8 off-grid power stations: 5 water-fired, 3 biomass-fired, and 8 diesel-fired. The Magat Hydroelectric Power Plant (HEPP) in Ramon, Isabela, is the largest power plant in Region 2.

Water Supply

Local water districts (LWUA) provide the majority of the region’s water, which is derived from the ground. Communities that do not have access to piped water from municipal or city water districts rely on deep wells (also known as “poso” or “pump wells”) to receive their water (groundwater).

Communication Infrastructure


Gross Regional Domestic Product (GRDP)

Regional Director Marilyn Estrada of the Philippine Statistics Authority reported the improved economic performance of Cagayan Valley at 6.7 percent in 2019 during the Regional Dissemination Forum on the 2019 Economic Performance held on November 23, 2020 at Pulsar Hotel, Peñablanca, Cagayan.

Regaining strength from a slowdown in 2018, Director Estrada highlighted the fact that the region emerged as the fifth fastest growing region in 2019, with its Gross Regional Domestic Product (GRDP) valued at PhP 410.87 billion at constant 2018 prices. This growth was within the government’s target of 6.1-7.1 percent during the year. Among the three sectors, the services sector contributed to the biggest chunk of the economic output in 2019, with a share of 44.1 percent.

The region likewise posted the highest growth in agriculture at 7.2 percent, recovering from its negative performance in 2018. It surpassed the 2019 government’s growth target of 4.2-5.2 percent.

RD Dionisio C. Ledres, Jr. of the National Economic and Development Authority and the Chair of the Regional Statistics Committee, in his delivery of policy implications of the GRDP figures underscored the need for all sectors to learn from the lessons of the pandemic and move forward. He urged all sectors to continue to be responsive and resilient, and help the economy bounce back, resume social, and economic activities, while sustaining efforts to contain the spread of the virus. He shared the strategies in the Regional Recovery Program (RRP) and the national recovery program, ReCharge PH, to restart social and economic activities amid the COVID19 pandemic and allow the region to smoothly navigate the “new normal”.

According to Ma. Liberte V. Masculino of the PSA Central Office, this round of estimation marks many changes from the previous presented economic accounts. This GRDP round, the PSA Central Office estimated and simultaneously released both the GRDP and Gross Regional Domestic Expenditure (GRDE).

The GRDP is the total value of all goods and services a region produces while the GRDE is the total amount of money spent on goods and services. The estimates were also rebased using 2018 constant prices from 2000 constant prices using a more updated structure of the industries.


Unemployment Rate

Philippines Unemployment Rate: Region II: Cagayan Valley data was reported at 2.800 % in Oct 2018. This records an increase from the previous number of 2.700 % for July 2018.

Philippines Unemployment Rate: Region II: Cagayan Valley data is updated quarterly, averaging 3.050 % from Jul 2004 to Oct 2018, with 58 observations.

The data reached an all-time high of 8.000 % in Jul 2004 and a record low of 2.100 % in Oct 2017. The data remains active status in CEIC and is reported by Philippine Statistics Authority. The data is categorized under Global Database’s Philippines – Table PH.G014: Labour Force Survey: Unemployment Rate.

Minimum Wage


Major Industries

• Agri-based and aqua-marine industries
• Rice production
• Corn production and processing
• Mango production
• Citrus production
• Banana production
• Pineapple production
• Coffee production and processing
• Cacao production and processing
• Peanut production
• Highland and lowland vegetables production
• Shrimp and prawn production
• Livestock production (cattle, goat, swine, poultry)
• Dairy production (carabao, cattle, goat)
• Meat processing
• Forest-based industries
• Industrial tree plantations
• Bamboo plantations
• Rattan production
• Wearables and homestyle
• Furniture and furnishings
• Agri-tourism and eco-tourism
• Renewable energy (biomass)
• Construction

List of Seaports

In order to improve connectivity and mobility, not just for the people but also for goods and commodities across the country and beyond, (that is to establish economic linkages) in the Cagayan Valley Region, five seaports were constructed.

Two major ports – classified as National Port of Entry

  • Port Irene in Santa Ana which is being managed by the Cagayan Economic Zone Authority (CEZA)
  • Port of Aparri

Municipal Ports

  • Port of Abulug
  • Port of Claveria
  • Port of San Vicente in Sta. Ana

List of Airports

International airport

1. Cagayan North International Airport, sometimes referred as Lal-lo International Airport

Principal domestic airport

2. Tuguegarao Airport

Community airport

3. Cauayan Airport
4. Jorge Abad (Itbayat) Airport
5. Palanan Airport

Unclassified aerodromes

6. Barit Airstrip in Aparri, Cagayan
7. Bicobian Bay Airstrip in Divilacan, Isabela
8. Dinapigue Airstrip
9. Divilacan Airstrip
10. Fuga Airstrip in Aparri, Cagayan
11. Mabag Airstrip in Aparri, Cagayan
12. Maconacon Airport
13. Magapit Airstrip in Lal-lo, Cagayan
14. Magat River Multipurpose Project (MRMP) Airport, Ramon, Isabela
15. Taggat Airstrip, Claveria, Cagayan

Military airfields

16. San Vicente Naval Airfield within Naval Base Camilo Osias, Santa Ana, Cagayan

Proposed international airport

17. Cagayan Valley International Airport, Tumauini, Isabela

Domestic airport under construction

18. Calayan Airport, Calayan, Cagayan

Land Transportation

Transport utilities  are also available for those who prefer  to use land transportation:

  1. GV Florida Transport
  2. Victory Liner
  3. Dalin
  4. Five Star
  5. Baliwag Transit
  6. Partas

Cost of Doing BusinessHuman ResourcesExportsInvestmentsTrade and Investment Support Services

Price of land area per square meter in the ecozones and designated investment locations

CEZA – P2,500/sq.m
Source: LGU Santa Ana Data

Daily Minimum Wage Rates


Administrative Position

Retail/Service Establishments employing more than 10 – P370
Retail/Service Establishments employing not more than 10 – P345

Agriculture – P345

(Source: National Wages and Productivity Commission data for Region 02)

Technical Position

Managerial Position

Setting up housing for foreign nationals

No data available

Electric Power Rates (per kilowatt hour)



7.7 – 10.049


7.7 – 10.01

Water Supply Rates (per cubic meter)



27.42 – 55.29


28.33 – 30.77

Telecommunication Rates

NDD Calls – P5.10/minute

Cellular Calls – P14.00/minute

(Source: PLDT/Smart rate)

Internet Service Rates

(Source: Globe Telecom)

No. of Senior High School Graduates/year

Total Senior Highschool Graduates 2017-2018: 27,092

Graduates under Academic Track


Graduates under Technical-Vocational and Livelihood Track


Graduates under Sports Track


Graduates under Arts and Design Track


No. of College Graduates/year

25,561 as of Academic Year 2017-2018

Skills and Expertise

Globally competitive tertiary private schools, state universities and colleges and technical vocational schools are continuously producing topnotch graduates in the fields of Engineering, Nursing, Accountancy, Education, Pharmacy and other specializations. There are 23 public HEIs and 49 private HEIs in the entire region producing an average of 23,720 graduates annually.

With a high functional literacy rate of 97.2%, the workforces in Cagayan Valley Region are generally easy to train, are English proficient, equipped with competent technical skills, are naturally caring and service oriented, adaptable to any situation, dependable and highly motivated, which are ideal qualities for professional careers and job opportunities across industries here and abroad.

Available Workforce

As of January 2020, there are 2,443,000 available workforce

Employment Profile


o   Average Labor force participation rate (LFPR)

o   Average employment rate

o   Average unemployment rate

o   Average underemployment rate


Employment rate in Region 2 has always been among the highest across regions. In January 2020, the employment rate in Cagayan Valley remained high at 96%, which was way  above the national average 94.7%. while the unemployment rate was recorded at 4% and underemployment at 16.3%. But due to the Covid-19 pandemic, the employment rate dropped by 12% at 84.4% for the month of April. The Region recorded a 77% increase in the unemployment rate from 4% to 17.7%, and a slight increase of 4.1% in underemployment. The number of people available for work (Average labor force participation rate (LFPR)) is 64.4% in January 2020 and 55.6% in April 2020.

Year-to-Date Growth Rate exports statistics


2019 Export Growth Rate


2018 Export Growth Rate


Regional share to total PH exports


Regional share to total PH exports growth rate


Provincial shares to total PH exports


Top Regional Exported Products


List of Regional Products for Promotion

Being an agriculture economy, the Cagayan Valley Region is not only known for its huge production in corn and rice. It is slowly being recognized as among the top producers of the following high value crops:

1.    Mango

2.    Citrus ( Mandarin & Calamansi)

3.    Pineapple

4.    Banana

5.    Coffee

6.    Cacao

7.    Peanut

The region also promotes the following products:

8.    Handicrafts

9.    Shrimps

List of Top Services for Promotion

Agribusiness remains to be the largest contributor to industrial development in the Region. However, the following services are seen to have great potentials hence, are being promoted:

1.    Construction and Real Estate Development

2.    Agri-Trading

3.    ICT-BPM

  1. Financial Technology (FinTech)

List of Exporting Companies


Latest available investments data



o   BOI-PEZA Approved Investments

o   Share to PH (?) total approved investments

o   FISCAL INCENTIVES. In addition to the fiscal incentives provided by laws and by the Local

o   Government Code of 1991, registered enterprise’s project shall enjoy exemptions from business

o   tax, real property tax on the share of the City and transfer tax, which shall take effect only during

o   the next calendar year after project completion.

o   Investment Growth Rate

From 2016 up to May 2020, the Cagayan Valley Region’s total  BOI Approved Investments amount to 35,497.82 million pesos which accounts for .87% share to the Philippines total approved investments. (The amount does not include nationwide projects.)


Incentives being offered by the region to Registered and Existing Enterprises

Local incentives, both fiscal and non – fiscal, are provided to investors who locate in any area in the region, aside from the incentives that the Board of Investments provide BOI and PEZA-registered companies.

Local Fiscal Incentives


In addition to the fiscal incentives provided by National laws, registered enterprise’s project shall enjoy exemptions from business tax, real property tax and transfer tax, which shall take effect only during the next calendar year after project completion. 

The schedule of incentives is based on the preferred activities and amount of project investments.


●     For Infrastructure, creative and knowledge-based industry, alternative energy and waste management projects, the following schedule applies:

Amount of Investments

Percent (%) Business Tax

Percent (%) Real Property Tax & Transfer Tax

P500 Million and above

Year 1 — 100%

Year 2 — 100%

Year 3 — 100%

Year 4 — 75% Year 5 — 50%

Year 1 — 100%

P300 Million up to less than P500 Million

Year 1 — 100% Year 2 — 100% Year 3 — 75% Year 4 — 50% Year 5 — 25%

Year 1 — 100%

P200 Million up to less than P300 Million

Year 1 — 100% Year 2 — 75% Year 3 — 50% Year 4 — 25% Year s — 10%

Year 1 — 100%

●     Tourism, agri-business or agro-industries with One Hundred Million (P100,000,000.00) and above project investment shall enjoy 100% business tax exemption for the first five (5) years of operation plus one (1) year Real Property Tax exemption on the share of City including Transfer Tax.

●     Tech Industry and Alternative Energy projects with the investment of not lower than Two Billion Pesos shall enjoy 100% business tax exemption for five years plus one (1) year Real Property Tax exemption on the share of the City including Transfer Tax.

Non-fiscal incentives

a.    One stop documentation for simplified registration procedure

b.    Assistance in resolving issues and concerns with National Government Agencies, NGOs and other service providers;

c.     Support for industrial peace through reconciliation;

d.    Assistance in securing electric power and water supply connection;

e.    Coordination in the negotiation of special rates for utilities for industries with a certain minimum load, if applicable;

f.      Assistance in site selection and negotiation for right of way, if applicable;

g.    Networking with concerned National Government Agencies (NGAs) and other similar institutions for trainings of workers to enhance their skills.

h.    Assistance in identifying and sourcing of skilled human resources; and

i.      such other aftercare services that may be accorded to investors.

The Cagayan Economic Zone Authority (CEZA) likewise provides the following incentives to CEZA locators as follows:

CEZA Fiscal and Non-fiscal incentives

●     Special tax rate of 5% of gross income in lieu of all local and national taxes

●     Tax credits for foreign corporations

●     Tax and duty free importation of articles, raw materials, capital goods, equipment and consumer items

●     Permanent resident status for foreign investors and immediate family (must maintain not less than US$150, 000 capital)

●     Other applicable incentives under Omnibus Investment Code of 1987:

●     Multiple entry visa, valid for a period of two years

●     Tax treatment of merchandise in the Zone

●     Tax credits

●     Additional deduction for labor expense

●     Exemption from local taxes and licenses

●     Exemption from Contractor’s Tax

●     Exemption from Wharfage Dues and any Export Tax, Duty, Impost and Fee on non-traditional export products

Major Companies in the Region


o   BOI Approved Projects (2016 – 2020)

There are 29 BOI Approved Projects  (See attached complete list please click here)

 including 4 Information and Communication projects located nationwide. Excluding the cost of the 4 projects, the 25 projects cost 35,497.83 million pesos.The largest projects include the following:

Name of Project

Amount (Php in Millions)

Natures Renewable Energy Dev’t Corporation in Cagayan


Rio Norte Hydropower Corporation in Isabela


Isabela Power Corporation in Isabela


o   PEZA-registered Company

1.   Green Future Innovations, Inc., Sta. Filomena, San Mariano, Isabela

List of Investment Opportunities

Investors who come to the Cagayan Valley Region have varied options for sound business ventures either under Private-Public Partnership (PPP) or joint venture on the following:

1.  Industrial tree plantation (bamboo, rubber rattan, soft wood)

2.  Agri-trading

3.  Real Estate Development and Infrastructure

4.  IT-BPM

5.  Logistics

6.  Warehouses and cold chain facilities

7.  Ecozone Development

8.  Renewable energy

9.  Waste management

List of Priority Sectors

1.    Agri-business (Mango,Citrus ( Mandarin & Calamansi), Pineapple,Banana, Coffee, Cacao, Peanut) 

2.    Construction

3.    Tourism

4.    IT-BPM and e-Commerce

5.    Logistics

6.  Industrial tree plantation (bamboo, rubber rattan, soft wood)

Activities for Investment Promotion in the Region

Lately, large investments have been pouring into the Cagayan Valley region. This is attributed to the bold steps made and purposive investment promotion initiatives undertaken by the  provincial and municipal/city local government units.

●     All 5 Provincial Local Government Units (PLGUs)  and 82 Municipal and City LGUs have their  respective Local Investment and Incentives Code (LIIC) providing Fiscal and Non-Fiscal Incentives.

●     LGUs have designated Local Investment and Economic Promotion Officers (LEIPOs) rendering investment servicing interventions to potential and existing investors. Some LGUs have created permanent positions manning their Investment Promotion Units.

●     Regional Line Agencies and LGUs embark on focused and purposive investment targeting and marketing initiatives such as Investment Conferences, Inbound and Outbound Investment Mission, Investment Matching among others.

List of Established Shared Service Facilities (SSFs) Project in the Region

As of December 31,  2019, DTI- Region 2 has already established a total of 278 SSFs across the Region distributed as follows:









Nueva Vizcaya




Go Negosyo Centers

There are 74 Negosyo Centers spread all over the region to bring the services of DTI closer to the communities:









Nueva Vizcaya




Cagayan Valley Regional Trade and Investment Report Annexes

Investment Prospects For the Cagayan Valley Region