Hyundai Asia Resources, Inc. (HARI) has set its sights on Mindanao region and is mulling it as their next hub as it anticipates a boost in transport and construction come 2018. HARI, with four dealerships in Mindanao to date – Cagayan de Oro, General Santos, Southern Mindanao (Davao), and Zamboanga City – looks to developing its network buoyed by the region’s strong economic performance reported in May 2017.
According to regional growth statistics, Davao grew by 9.4 percent in 2016, thanks to its industry sector, as construction surged to 25.8 percent (from 10.2 percent) in the same year. Meanwhile, Northern Mindanao posted a record-high growth in the last six years, with its gross regional domestic product reaching P305 million in the same period.
“Infrastructure helps in leveling the field for growth, allowing cities and provinces to maximize their full potential particularly for Mindanao. It’s encouraging not only for Hyundai, but for the rest of the business community to expand our presence in the country further,” said HARI President and CEO, Ma. Fe Perez-Agudo.
In the 2017 World Economic Forum Competitiveness Index, the Philippines’ ranking was dragged down by its current weak state of infrastructure; with the global institution calling on public and private sector to address this huge gap in development.
Heeding this call, the ‘Build, Build, Build’, the government’s massive infrastructure program, is expected to take off in 2018, with a P1-trillion allotment in the National Budget. This will increase public construction tenfold, with private sector expecting to follow – as government accelerates spending for main roads, bridges, seaports, airports nationwide.
Parallel to the government’s widespread efforts is the completion of Hyundai’s commercial division dealership facilities in ten key locations nationwide by end of the first quarter of 2018. Situated in growth centers in CALABARZON, Western Visayas, and Mindanao, these facilities cover a wide-range of trucks, buses, and special-purpose vehicles to service large-scale and commercial accounts and SMEs. With construction on the rise, Hyundai’s commercial division foresees expanding to 20 locations by 2020.