Business Consulting BlogForeign Direct Investment increases in the Philippines

March 25, 2014

The Philippines registered a record high of the net foreign direct investment in 2013 reaching $3.86 billion, which is 20% more than in 2012 and economic managers expect it to rise again in 2014.

This increase is a good sign for the country and comes along with a Foreign Portfolio Investment increase as well. The difference between those two types of investment is basically the length of it. Foreign Portfolio Investment tends to be short term investment as opposed to Foreign Direct Investment.

FDI has taken advantage from the lending of multinational to their local subsidiaries as this number is 6 times more important than the previous year to reach $2.5 billion. This number is in constant evolution due to companies wishing to increase their operations in the Philippines, and the political and economic stability of the country over the past few years keep attraction new investors.

Philippines is one of the fastest growing economies in South East Asia and will most likely remain attractive for foreign investors and new companies interested in setting up a shop in the Philippines.

Despite the great news, Philippines remains miles away of its neighbors such as Thailand, Indonesia or Malaysia in the ranking of this major driver of economic growth. Liberalization of some sectors and the review of Foreign Investment Negative List must happen.

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