OTOP investments to grow by up to 25% next year

Investments for the Department of Trade and Industry’s One Town One Product (OTOP) will grow 10 to 25 percent next year, OTOP national program manager and Undersecretary of Trade Carissa C. Evangelista said yesterday

In an interview at the sidelines of yesterday’s First National OTOP Summit, Cruz placed investments for 2006 at P 3.72 billion.

She said the expected jump in investments is due to the government and the private sector’s aggressive marketing efforts for the development of more market outlets.

With the improvement of several key components of products like design, packaging and quality, more businessmen are expected to put in more money, Cruz added.

Currently, almost 200,000 jobs are generated through the government project.

Early this year, Two business groups gave their support to the OTOP program by opening a multi-million credit line for small and medium sized enterprises (SMEs).

Evangelista said the Federation of Filipino Chinese Chamber of Commerce and Industry Inc. (FFCCCII) and the Philippine Chamber of Commerce and Industry (PCCI) have signed a memorandum of agreement (MOA) with DTI which gives OTOP entrepreneurs access to the chambers’ financing program.

PCCI has set aside P850 million for lending to small firms while the FFCCCII has agreed to give SMEs access to accredited financing programs.

Aside from financial support, Evangelista said the two chambers also agreed to work closely with the DTI in finding the best investments  suited for a specific locality. The businessmen also agreed to lend their support to SMEs who wish to gain access to domestic and foreign investments and markets.

The OTOP program, which is part of President Arroyo’s  program for revitalizing countryside growth through entrepreneurial assistance to micro and small firms, already has nine existing MOAs with six government organizations and three private institutions. Evangelista said the partnership will help push the OTOP program through special projects.

“These partnerships are key elements for the promotion and development of OTOP products  within and out of the country,” she said. The partner organizations are Air Transport office (ATO), Philippine Information Agency (PIA), League of Cities of the Philippines (LCP), League of Municipalities of the Philippines (LMP), National Economic and Development Authority (NEDA), Philippine Small and Medium Business Development Foundation, Philippine Export Confederation, Philippine Center for Entrepreneurship and National Livelihood Support Fund.

Partnership with the local government will help OTOP with its development plan while NEDA will assist in product development and design mentoring, prototype financing and the development of regional brand and labeling. PIA, meanwhile, will promote OTOP by giving creative and technical assistance in planning, conceptualization, development, production and delivery of multi-media materials.