Main industries include furniture, hollow block factory, tilapia farming, buko pie, pineapple vinegar, and meat processing.

At the coming of the Spaniards, the natives were mostly settled along the Magat River where they had small farms of vegetables and root crops as well as ricefields.

The town was formed on October 7, 1741 by a Dominican friar, Antonio del Campo, at sitio "Nagcumventuan" a place now located between Pogonsino, Bagabag, and Bangar, Solano.

The present name of the sitio bears proof to the fact that the Spanish priest constructed a church in the original town site.

In 1753, the Spanish established a fortress at Bagabag to serve as a base of operations for conquering the Ifugaos and to defend the mountain pass leading to Isabela.

[7] In 1945, the combined United States and the Philippine Commonwealth troops together with guerrillas attacked the Japanese Imperial forces in the Battle of Bagabag during World War II.

The recent aquaculture congress found that the growth of tilapia production was due to government interventions: provision of fast-growing species, accreditation of private hatcheries to ensure supply of quality fingerlings, establishment of demonstration farms, providing free fingerlings to newly constructed fishponds, and the dissemination of tilapia to Nueva Vizcaya (in Diadi town).

Chairman Thompson Lantion of the Land Transportation Franchising and Regulatory Board, a retired two-star police general, has fishponds in La Torre, Bayombong.

Also, Nueva Vizcaya Governor Luisa Lloren Cuaresma also entered into similar aquaculture endeavors in addition to tilapia production.