Calabarzon
Manufacturing powerhouse producing P1.33 trillion in industrial value, with Laguna and Cavite hosting electronics exports comprising 57.8% of merchandise trade.
CALABARZON is where Philippine manufacturing actually happens—the southern Luzon region that produces P1.33 trillion in manufacturing value, exceeding even Metro Manila's industrial output. The acronym combines five provinces—Cavite, Laguna, Batangas, Rizal, and Quezon—into a region whose geographic proximity to Metro Manila enabled industrial development that more distant provinces could not replicate.
Electronics dominate the export profile. Semiconductor assembly and testing operations cluster in Laguna and Cavite economic zones, producing components that flow to global supply chains. Electronic products generated $45.66 billion in exports, comprising 57.8% of Philippine merchandise exports. This concentration creates vulnerability to single-sector dependence while also generating scale economies that scattered production could not achieve.
Laguna stands as the region's wealthiest province with P1.093 trillion in Provincial Product Accounts and per capita income of P294,400—wealth generated by industrial zones that attract investment seeking Metro Manila proximity without Metro Manila congestion and costs. Cavite and Batangas follow with their own industrial concentrations.
The government plans strategic infrastructure connecting CALABARZON to Clark and Subic, creating an extended industrial corridor that President Marcos promotes for export manufacturing. By 2026, expect continued electronics sector dominance, industrial expansion along new transport corridors, and CALABARZON's manufacturing output potentially exceeding Metro Manila's as production facilities relocate to zones with superior logistics.