One Town, One Product (OTOP)

• 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.

• This is a form of people’s participation in the regional development of that country.

• 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.

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 OTOP-Philippines supports MSMEs to manufacture, offer, and market distinctive manufacture, offer, and market distinctive

products or services through the use of products or services through the use of indigenous raw materials and local skills indigenous raw materials and local skills

and talents.and talents.

What assistance is provided in OTOP – Philippines?

• Business Counseling;• Skills and Entrepreneurial Training;• Product Design and Development;• Appropriate Technologies; and• Marketing

OTOP-Philippines offers a comprehensive assistance package through OTOP-Philippines offers a comprehensive assistance package through a convergence of services from local government units (LGUs), a convergence of services from local government units (LGUs), national government agencies (NGAs), and the private sector. This national government agencies (NGAs), and the private sector. This includes:includes:

The Medium-Term Philippine Development Plan (MTPDP) 2004-2010 The Medium-Term Philippine Development Plan (MTPDP) 2004-2010 outlines the dual strategies of (A) product development through OTOP, outlines the dual strategies of (A) product development through OTOP, and (B) credit provision through SULONG (SME Unified Lending and (B) credit provision through SULONG (SME Unified Lending Opportunities for National Growth) to support 3 million entrepreneurs Opportunities for National Growth) to support 3 million entrepreneurs and generate 6 to 10 million jobs.and generate 6 to 10 million jobs.

The program targets MSMEs The program targets MSMEs with an asset size of not more with an asset size of not more

than P100 million, which than P100 million, which account for about 99% of account for about 99% of business establishments.business establishments.

Who may avail of the assistance?

• Department of Agriculture (DA)• Department of Environment and Natural Resources (DENR)• Department of Interior and Local Government (DILG)• Department of Science and Technology (DOST)• Department of Tourism (DOT)• Department of Land Reform (DLR)• Technical Education Skills Development Authority (TESDA)

Who supports OTOP-Philippines?The LGUs identify the specific product or service and make The LGUs identify the specific product or service and make available all forms of assistance. The Department of Trade and available all forms of assistance. The Department of Trade and Industry (DTI) advocates the program’s ideals and provides the Industry (DTI) advocates the program’s ideals and provides the necessary support for the LGUs in its implementation together necessary support for the LGUs in its implementation together with the following agencies:with the following agencies:

These agencies work hand in hand with other government These agencies work hand in hand with other government offices and the private sector to sustain the program.offices and the private sector to sustain the program.

What makes OTOP-Philippines succeed?

• Dedicated LGUs• Reliable Raw Material Supply• Rich Local Culture and Tradition• Local Talents and Skills• Ready Market for Products/Services• Aggressive Core of Producers• Convergence of Government Services

OTOP’s key elements are the following:OTOP’s key elements are the following:

OTOP – NEGROS OCIDENTALDISTRICT TOWN PRODUCT

Lone Bacolod City Giftware & Holiday Décor

1st San Carlos City

Peanuts

Calatrava Mushroom Culture

Toboso Handicrafts

Don Salvador Benedicto

Pineapple

Escalante City

Processed Food

2nd Sagay City Squid Rings

Cadiz City Dried Fish

Manapla Puto

OTOP – NEGROS OCIDENTAL

DISTRICT TOWN PRODUCT3rd Victorias City Eco-tourism (Gawahon)

EB Magalona Blue Crabs

Silay City Processed Food (Banana Chips)

Talisay City Bamboocraft

Murcia Game Fowls

4th Bago City Silk (Model OTOP)

Valladolid Hablon

San Enrique Processed Food (Kalamay hati)

La Carlota City

Swine Production

OTOP – NEGROS OCIDENTAL

DISTRICT TOWN PRODUCTPontevedra Processed Food

(Sardines)

Pulupandan Shrimp Paste (Bagoong)

5th Hinigaran

Oysters Sauce

La Castellana Processed Meat

Moises Padilla

Processed Meat

Isabela Livestock

Binalbagan Garments

Himamaylan Bangus Sardines

OTOP – NEGROS OCIDENTAL

DISTRICT TOWN PRODUCT6th Kabankalan

CityCharcoal Briquettes

Ilog Aquamarine Products

Candoni Lime

Cauayan Corn

Sipalay City Tourism

Hinoba-an Aquamarine Products