Foreign Direct Investment

FDI by sector -The Economist Intelligence Unit estimates that foreign direct investment (FDI) to the Philippines was $6 bn in 2020. As revealed in chart 1, foreign interest in the Philippines’ manufacturing sector is so very keen that all other sectors seem to be dwarfed in comparison, and as such, the Philippines could be well placed as companies look to further fragment their supply chains in Asia. Data in chart 2 further indicates that foreign investment into the archipelago comes largely from the Philippines’ Asian peers with a few western powers such as the United States also establishing their footprint in the country.

 

Chart 1

Chart 2

FDI growth – FDI net inflows in the Philippines have grown by over 600% in the ten-year period starting 2008. The graph below indicates that foreign investment into the country has grown at a steady and consistent pace and that foreign investors have not been deterred by the social conflicts and extremist insurgencies that have surfaced in recent years. This stands as proof of the fact that the Philippines is indeed capable of attracting high-volume foreign investment.

 

But where does the Philippines stand in comparison to some of its South East Asian peers? As shown in the chart below, the Philippines, despite lagging behind its regional counterparts, is picking up speed in the race to attract foreign investment and this inspires positive prospects for the future of the economy.

 

Economic Zones – Philippines is home to 380 Economic Zones spread across its dispersed geographic landscape. These Economic Zones cater to a number of industries, ranging from Manufacturing to Information Technology. A detailed map and catalogue of the country’s various Economic Zones can be found at the link below:

http://www.peza.gov.ph/index.php/economic-zones/list-of-economic-zones

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