Candon City has a geographical setting and proximity to the national highway and other towns that encouraged greater mobility in terms of trade, economic, social and cultural activities. The Department of Trade and Industry termed the City as the center for trade and commerce in Ilocos Sur.
Many adjacent towns frequent Candon for commercial activities, catering to the commercial needs of an estimated 100,000 population. The City also has a supermarket and a shopping mall, banking and lending institutions, recreational facilities, tourism facilities, health and medical establishments.
Existing industries in Candon City are manufacturing, agro-industry and cottage industry. The manufacturing sector owns the Tobacco Stalk Cement Bonded Board Plant that produces particle boards for low cost housing and other construction needs. Other manufacturing establishments are based on calamay making, chichacorn, bakeshop/bakery, and ice cream, and vinegar, furniture making shop, concrete products and Coconut Oil Processing Plant located at Barangay Talogtog. On the other hand, the cottage industry includes “balut” or egg production, fish re-drying, salt making, native delicacies, woodcrafts and handicrafts.
Service establishments are also present in Candon, such as sari-sari and grocery stores, carinderias, nightclubs, barber shops, beauty parlors, gasoline stations and stores/outlets for the following: auto parts, agricultural equipment and supplies, school and office supplies, photo and supplies, appliances, pharmaceuticals, hardware and electrical. There are also video centers, bazaars, gift shops, pawnshops and mineral/distilled drinking water store outlets, and real estate.
The city is the center of trade and commerce in the 2nd district of Ilocos Sur. Urban growth has a linear pattern along major thoroughfares in the city center and the national highway.