The New Economic Frontier
The Top 10 Visayas–Mindanao Powerhouse Cities of 2025 and Their Investment Horizons
For decades, the Philippine economic narrative revolved almost exclusively around Metro Manila. In 2025, that narrative has decisively shifted. The latest fiscal data confirms the rise of the Visayas and Mindanao (VisMin) as formidable, self-sustaining engines of national growth—no longer peripheral contributors, but central pillars of the Philippine economy.
Based on Total Locally-Sourced Revenue reported by the Bureau of Local Government Finance (BLGF), this ranking highlights cities with strong internal economic capacity. Unlike externally funded growth, locally sourced revenue reflects a city’s entrepreneurial vitality, administrative efficiency, and attractiveness to investors. It is the clearest indicator of economic resilience and long-term sustainability.
What follows is an in-depth look at the Top 10 VisMin Cities by Total Revenue in 2025, examining the foundations of their success and the investment opportunities shaping their future.
VisMin Top 10 Cities by Total Locally-Sourced Revenue (2025)
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Davao City — ₱17.5 Billion
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Cebu City — ₱9.2 Billion
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Cagayan de Oro City — ₱5.8 Billion
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Zamboanga City — ₱5.4 Billion
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Iloilo City — ₱5.05 Billion
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Lapu-Lapu City — ₱4.09 Billion
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General Santos City — ₱3.9 Billion
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Mandaue City — ₱3.7 Billion
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Bacolod City — ₱3.4 Billion
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Butuan City — ₱3.3 Billion
City Spotlights: Economic Pillars and Emerging Gateways
1. Davao City — The ASEAN Gateway
Total Revenue: ₱17.5 Billion
Davao City stands as the undisputed economic capital of Mindanao, generating nearly twice the revenue of its closest regional counterpart. Its strength lies in a diversified economic base encompassing agribusiness (cacao, coffee, bananas), a growing IT-BPM sector, strategic air and sea connectivity, and consistently disciplined governance.
Looking ahead, Davao is positioning itself as the Philippines’ principal gateway to the BIMP-EAGA region. Major infrastructure projects—including the Davao City Bypass Road and the Samal Island–Davao City Connector Bridge—are expected to significantly enhance logistics efficiency and tourism capacity.
Priority Investment Sectors:
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High-value agribusiness processing
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Renewable energy and data centers
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Logistics, cold chain, and ASEAN trade services
2. Cebu City — A Mature Hub in Reinvention
Total Revenue: ₱9.2 Billion
Cebu City remains the economic and cultural heart of the Visayas, supported by a highly diversified economy spanning IT-BPM, creative manufacturing, finance, and tourism. Its well-established business ecosystem and academic institutions continue to anchor regional growth.
The city’s strategic pivot is toward innovation-led development—moving beyond traditional outsourcing into software development, fintech, design, and startup incubation.
Priority Investment Sectors:
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Smart city and proptech solutions
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Regional headquarters and shared services
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Specialized healthcare and medical tourism
3. Cagayan de Oro City — The Resilient Logistics Core
Total Revenue: ₱5.8 Billion
Known as the “Gateway to Northern Mindanao,” Cagayan de Oro (CDO) thrives on its strategic port, strong education and healthcare sectors, and growing light manufacturing base. It is widely recognized for disaster resilience and sound urban planning.
With the completion of the Panguil Bay Bridge, CDO’s economic reach is set to expand further, reinforcing its reputation as a stable, future-ready investment location.
Priority Investment Sectors:
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Cold chain logistics and agri-packaging
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Affordable housing and mixed-use townships
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Eco-industrial and manufacturing parks
4. Zamboanga City — The Niche Trade Frontier
Total Revenue: ₱5.4 Billion
Zamboanga City’s economy is shaped by its strategic location and cultural linkages within the BIMP-EAGA corridor. Key revenue drivers include fisheries, high-value agricultural exports, and the Zamboanga City Special Economic Zone (ZCSEZA).
As connectivity and stability improve, the city is emerging as a center for the modern Halal industry and cross-border maritime trade.
Priority Investment Sectors:
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Halal food and certification ecosystems
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Seaweed biotechnology and carrageenan processing
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Port modernization and formalized barter trade
5. Iloilo City — A Model of Balanced Urban Growth
Total Revenue: ₱5.05 Billion
Iloilo City’s rise is widely regarded as a benchmark for strategic urban planning. Growth has been driven by real estate development, IT-BPM expansion, tourism, and its status as a regional education hub.
The proposed Panay–Guimaras–Negros Island Bridge is expected to cement Iloilo’s role as the economic capital of Western Visayas.
Priority Investment Sectors:
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Sustainable and green-certified real estate
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Creative industries and education technology
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Integrated tourism and MICE developments
6. Lapu-Lapu City — The Export and Tourism Nexus
Total Revenue: ₱4.09 Billion
Home to the Mactan-Cebu International Airport and the Mactan Economic Zone, Lapu-Lapu City is the industrial and tourism backbone of Metro Cebu. Its economy benefits from export manufacturing and a globally competitive resort sector.
Priority Investment Sectors:
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Aerospace maintenance and repair (MRO)
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Advanced and precision manufacturing
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High-end marine and heritage tourism
7. General Santos City — Beyond the Tuna Capital
Total Revenue: ₱3.9 Billion
Globally recognized for its tuna industry, General Santos City is rapidly diversifying into broader agro-industrial processing. Investments in logistics and airport cargo capacity aim to strengthen direct export channels.
Priority Investment Sectors:
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Sustainable aquaculture and fisheries technology
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Food processing and agri-innovation
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Farm-to-export logistics solutions
8. Mandaue City — The Manufacturing Innovator
Total Revenue: ₱3.7 Billion
As Metro Cebu’s industrial workhorse, Mandaue City hosts a dense concentration of manufacturers, particularly in furniture, metals, plastics, and food products. With limited land availability, growth is increasingly driven by efficiency and innovation.
Priority Investment Sectors:
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Industrial automation and robotics
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Furniture design and R&D
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Vertical and smart industrial estates
9. Bacolod City — A Digital Services Sweet Spot
Total Revenue: ₱3.4 Billion
Bacolod City has successfully transitioned from a sugar-based economy into a competitive IT-BPM destination, supported by a skilled workforce and cost advantages.
Priority Investment Sectors:
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Non-voice and creative BPM/KPO services
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Biomass energy and circular economy projects
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Cultural and culinary tourism
10. Butuan City — The Rising Agri-Industrial Anchor
Total Revenue: ₱3.3 Billion
As the regional capital of Caraga, Butuan City’s economy is anchored in agri-forestry, mining support services, and public administration. Its future growth lies in responsible value-adding and downstream processing.
Priority Investment Sectors:
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Mineral processing and beneficiation
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Sustainable timber and coconut processing
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River-based and eco-tourism development
Strategic Takeaway for Investors
The 2025 VisMin revenue leaders are not merely beneficiaries of growth—they are active architects of their economic futures. Their trajectories underscore a powerful reality: the next decade of Philippine growth will be decentralized, diversified, and driven by Visayas and Mindanao.
Across these cities, cross-cutting investment opportunities are emerging in digital infrastructure, climate-resilient technologies, inter-island logistics, and advanced talent development.
Source: Bureau of Local Government Finance (BLGF) 2025 Data
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