Data from the Asian Development Bank shows that Indonesia, Malaysia, Thailand and Vietnam have attracted large amounts of FDI over the past two to three decades.

But The Philippines must make greater efforts to sustain its improved FDI performance if it is not to be left behind by its south-east Asian peers. The Philippines has enjoyed a boom in inward FDI under the presidency of Benigno Aquino.

Data from the Asian Development Bank shows that Indonesia, Malaysia, Thailand and Vietnam have attracted large amounts of FDI over the past two to three decades.

A key factor behind this trend has been the offshoring of lower-value-added manufacturing activities by East Asia’s advanced countries, such as Japan, South Korea, Taiwan and Singapore, which created the value chains that today crisscross the region.

A notable absence from these lists, however, is the Philippines.

“The Philippines missed out on this wave of FDI due to political instability, poor governance and inadequate infrastructure,”

says Dr Cielito Habito, a former Philippines economic planning secretary. “The country has suffered from not only a shortage of FDI, but domestic investment too. It is critical to improve the investment climate for all investors.”

Acting vice-president of the Philippine Institute for Development Studies, Adoracion Navarro, adds: “It is only since 2010, when Benigno Aquino became president, that we have seen a sustained rise in inflows of FDI.”

Inward FDI reached an all-time high of $6.2bn in the Philippines in 2014, up from $1.1bn in 2010, according to data from the Bangko Sentral ng Pilipinas, the Philippine central bank.

These investments were made across a range of different industries, including finance and insurance, manufacturing, real estate, mining and quarrying, and wholesale and retail trade. Japan and the US are the most active foreign investors in the Philippines.

Source: Is the Philippines about to realise its FDI potential? – Locations – fDiIntelligence.com

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

Will cryptocurrency expansion continue among emerging markets in 2022?

Emerging markets were at the forefront of last year’s massive growth in global cryptocurrency adoption. With this growth widely tipped to continue into 2022, a range of countries will see their crypto markets mature or expand.

New Requirements for MSME Franchise Holders in the Philippines

MSMEs in the Philippines are defined as businesses that employ between 10 to 200 workers and have asset sizes (excluding land) between PHP 3 million (US$56354) and PHP 10 million (US$187,866).

Philippines: What a Ferdinand Marcos Jr Presidency Will Mean for Foreign Investors

The immediate challenges facing Marcos Jr include the Philippines’ high budget deficit, income inequality, and balancing relations between the US and China