Profile of Region 2

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

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.

Electrification

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

  • 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

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

  1. Tuguegarao Airport

Community Airports

  1. Cauayan Airport
  2. Jorge Abad (Itbayat) Airport
  3. Palanan Airport

Unclassified Aerodromes

  • Barit Airstrip in Aparri, Cagayan
  • Bicobian Bay Airstrip in Divilacan, Isabela
  • Dinapigue Airstrip
  • Divilacan Airstrip
  • Fuga Airstrip in Aparri, Cagayan
  • Mabag Airstrip in Aparri, Cagayan
  • Maconacon Airport
  • Magapit Airstrip in Lal-lo, Cagayan
  • Magat River Multipurpose Project (MRMP) Airport, Ramon, Isabela
  • Taggat Airstrip, Claveria, Cagayan

Military Airfields

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

Proposed International Airport

  1. Cagayan Valley International Airport, Tumauini, Isabela

Domestic Airport Under Construction

  1. 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

Cagayan Valley Regional Trade and Investment Report Annexes

Investment Prospects For the Cagayan Valley Region

Address
11 Dalan na Pappabalo Regional Gov’t. Center, Carig Sur, Tuguegarao City, Cagayan

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