OTOP (One Town One Product


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a Presentation by Department of Trade and Industry (DTI) at the BSP Regional Financial Literacy Campaign for OFWs in Bacolod City, Philippines on June 28, 2007

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OTOP (One Town One Product

  1. 2. One Town, One Product (OTOP) <ul><li>The concept of OTOP-Philippines adapted from Japan’s successful One Village One Product (OVOP) project, which was started in 1979 by Governor Morihiro Hiramatsu of Oita Prefecture. </li></ul><ul><li>This is a form of people’s participation in the regional development of that country. </li></ul><ul><li>Its success prompted other countries to adopt the concept in their own areas as an effective tool for poverty alleviation, particularly in the rural areas. OTOP has been established in Thailand, Vietnam, Malawi, Cambodia, Pakistan, India, Bangladesh, and Indonesia. </li></ul>
  2. 3. What is OTOP-Philippines? ONE TOWN ONE PRODUCT – Philippines (OTOP – Philippines) is a priority program of Her Excellency President Gloria Macapagal-Arroyo to promote entrepreneurship and create jobs. Through OTOP, local chief executives of every city and municipality take the lead in identifying, developing, and promoting a specific product or service which has a competitive advantage. OTOP-Philippines supports MSMEs to manufacture, offer, and market distinctive products or services through the use of indigenous raw materials and local skills and talents.
  3. 4. What assistance is provided in OTOP – Philippines? <ul><li>Business Counseling; </li></ul><ul><li>Skills and Entrepreneurial Training; </li></ul><ul><li>Product Design and Development; </li></ul><ul><li>Appropriate Technologies; and </li></ul><ul><li>Marketing </li></ul>OTOP-Philippines offers a comprehensive assistance package through a convergence of services from local government units (LGUs), national government agencies (NGAs), and the private sector. This includes: The Medium-Term Philippine Development Plan (MTPDP) 2004-2010 outlines the dual strategies of (A) product development through OTOP, and (B) credit provision through SULONG (SME Unified Lending Opportunities for National Growth) to support 3 million entrepreneurs and generate 6 to 10 million jobs.
  4. 5. The program targets MSMEs with an asset size of not more than P100 million, which account for about 99% of business establishments. Who may avail of the assistance?
  5. 6. <ul><li>Department of Agriculture (DA) </li></ul><ul><li>Department of Environment and Natural Resources (DENR) </li></ul><ul><li>Department of Interior and Local Government (DILG) </li></ul><ul><li>Department of Science and Technology (DOST) </li></ul><ul><li>Department of Tourism (DOT) </li></ul><ul><li>Department of Land Reform (DLR) </li></ul><ul><li>Technical Education Skills Development Authority (TESDA) </li></ul>Who supports OTOP-Philippines? The LGUs identify the specific product or service and make available all forms of assistance. The Department of Trade and Industry (DTI) advocates the program’s ideals and provides the necessary support for the LGUs in its implementation together with the following agencies: These agencies work hand in hand with other government offices and the private sector to sustain the program.
  6. 7. What makes OTOP-Philippines succeed? <ul><li>Dedicated LGUs </li></ul><ul><li>Reliable Raw Material Supply </li></ul><ul><li>Rich Local Culture and Tradition </li></ul><ul><li>Local Talents and Skills </li></ul><ul><li>Ready Market for Products/Services </li></ul><ul><li>Aggressive Core of Producers </li></ul><ul><li>Convergence of Government Services </li></ul>OTOP’s key elements are the following:
  7. 8. OTOP – NEGROS OCIDENTAL Puto Manapla Dried Fish Cadiz City Squid Rings Sagay City 2 nd Processed Food Escalante City Pineapple Don Salvador Benedicto Handicrafts Toboso Mushroom Culture Calatrava Peanuts San Carlos City 1 st Giftware & Holiday Décor Bacolod City Lone PRODUCT TOWN DISTRICT
  8. 9. OTOP – NEGROS OCIDENTAL Swine Production La Carlota City Processed Food (Kalamay hati) San Enrique Hablon Valladolid Silk (Model OTOP) Bago City 4th Game Fowls Murcia Bamboocraft Talisay City Processed Food (Banana Chips) Silay City Blue Crabs EB Magalona Eco-tourism (Gawahon) Victorias City 3 rd PRODUCT TOWN DISTRICT
  9. 10. OTOP – NEGROS OCIDENTAL Bangus Sardines Himamaylan Garments Binalbagan Livestock Isabela Processed Meat Moises Padilla Processed Meat La Castellana Oysters Sauce Hinigaran 5 th Shrimp Paste (Bagoong) Pulupandan Processed Food (Sardines) Pontevedra PRODUCT TOWN DISTRICT
  10. 11. OTOP – NEGROS OCIDENTAL Aquamarine Products Hinoba-an Tourism Sipalay City Corn Cauayan Lime Candoni Aquamarine Products Ilog Charcoal Briquettes Kabankalan City 6 th PRODUCT TOWN DISTRICT