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Philippines Luzon Economic Corridor

On April 11, 2024, President Biden, Japanese Prime Minister Kishida and Philippine President Ferdinand Marcos, Jr., launched a steering committee to drive infrastructure development in the country’s Luzon Economic Corridor (LEC), supporting connectivity between Subic Bay, Clark, Manila, and Batangas in the Philippines. This trilateral commitment—part of the Partnership for Global Infrastructure and Investment—seeks to accelerate coordinated investments in high-impact infrastructure projects, including rail; ports modernization; clean energy and semiconductor supply chains and deployments; agribusiness; and civilian port upgrades at Subic Bay. 
 

Stretching through the central and northern parts of the Philippines island of Luzon, the LEC encompasses key urban and industrial zones, including Metro Manila, Batangas, and Central Luzon. The LEC is strategically significant as a hub for commerce, industry, and logistics, driving economic growth and regional development.

Metro Manila: As the nation’s capital region, Metro Manila serves as the epicenter of the Philippine economy. It contributes approximately 36% to the country’s GDP.

Batangas: Batangas is one of five provinces in the Calabarzon administrative region and is a significant industrial and manufacturing hub, contributing around 17% to the national GDP. Calabarzon is known for its industrial parks and economic zones, which attract foreign direct investment (FDI) due to favorable policies and infrastructure. The area’s proximity to Metro Manila, along with well-developed transport links, enhances its appeal to businesses. Key industries include electronics, automotive, food processing, and textiles.

Central Luzon: As an emerging growth center, Central Luzon contributes about 9% to the national GDP. The region is pivotal in agriculture, logistics, and emerging industrial activities. With the presence of the Clark Freeport and Special Economic Zone, Central Luzon is becoming an attractive destination for both local and foreign investors. Infrastructure projects like the New Clark City and the expansion of Clark International Airport are set to further boost the region’s economic prospects.


Key LEC projects include:

  • North Luzon Expressway (NLEX) and South Luzon Expressway (SLEX): These highways connect Metro Manila to northern and southern Luzon, facilitating efficient movement of goods and people.
  • Manila-Clark Railway and North-South Commuter Railway: These railway projects aim to improve connectivity and reduce travel time between major urban centers.
  • Port of Manila and Batangas Port: These ports serve as crucial nodes for maritime trade, enhancing the region’s role in global supply chains.


The LEC offers numerous investment opportunities across various sectors:

  • Manufacturing: With established industrial zones and a skilled labor force, the corridor is ideal for manufacturing investments, particularly in electronics, automotive, and food processing.
  • Real Estate and Infrastructure: The ongoing urbanization and infrastructure projects present lucrative opportunities in residential, commercial, and industrial real estate development.
  • Agriculture and Agribusiness: Central Luzon’s fertile plains provide a foundation for agribusiness ventures, including food processing and high-value crop production.
  • Tourism: With its rich cultural heritage and natural attractions, the LEC is a promising area for tourism investments, particularly in eco-tourism and heritage tourism.


The Philippine government’s “Build Better More” program, focusing on infrastructure development, is set to enhance the region’s connectivity and economic prospects. Additionally, policies aimed at improving ease of doing business and attracting foreign investment are crucial for sustaining growth.

 

For additional information contact BusinessPhilippines@trade.gov.