Lipa’s proximity to the country’s capital, Manila, having an approximate distance of 86 kilometers or an hour and half drive via the Southern Luzon Expressway enhances its strategic access to development trends. It is fast emerging as a key city in the province, becoming a major institutional/administrative center, medical center, commercial center, financial center, agro-industrial center and residential center.
It is identified as an ideal hub and center of the CALABARZON Agro-Industrial Region in the Regional Physical Framework Plan of Region IV-A.
In the recent past, Lipa is being transformed from an agrarian to an urbanized area. A significant portion of the agricultural land area of the city has been converted to residential subdivisions, industrial area with the establishment of LIMA Technology Center utilizing lands in the city and Malvar Municipality. Recently, the influx of business process outsourcing(BPO) firms such as call centers have contributed much to the growth of the local economy. BPO sites are scattered throughout the city. It ranked 6th out of 10 in the Top 10 next wave cities of 2010 by the Commission of Information and Communication Technology (ICCT). Teletech Inc. pioneered the BPO company in Lipa City in 2006. Alorica followed after few years.The most recent BPO company is The Results.
Likewise, due to a very strategic location, LIPA CITY MARKET is comparatively busy than other neighboring towns. Thus it boasts a large quantity of market business. As a result, it attracts more customers from neighboring towns like Padre Garcia, Rosario, Ibaan, San Juan, Malvar, Tanauan, Mataas na Kahoy, Balete Cuenca, Lemery and Batangas.
It is also noticeable that Lipa City is being home to new settlers from different regions. Muslims from Mindanao for example have settled in Lipa City, primarily due to growing economy. There are also settlers from Mindoro, Bicol, Quezon and other places. Likewise, there are many Koreans who established their business in Lipa. Furthermore, it is evident that Indian Nationals are also an everyday sight.