The Philippines came in sixth place in foreign direct investment (FDI) flows to the 10 economies of Southeast Asia, according to a new international study, hinting of the need for more reforms to invite more investment funds to the country.
Although economic growth in the Association of Southeast Asian Nations (Asean) region has slowed along with sluggish world trade, FDI inflows to the region has remained resilient, according to the newest edition of the World Investment Report 2015 by the United Nations Conference on Trade and Development (Unctad).
The Unctad report, released late June, said global FDI inflows in 2014 declined 16 percent to $1.23 trillion, due mostly to the fragility of the global economy, policy uncertainty for investors and elevated geopolitical risks.
But while FDI flows faltered worldwide in 2014, developing Asia bucked this trend to set record levels last year. Regional FDI share rose 9 percent to receive nearly half-a-trillion dollars in foreign investments in 2014, further consolidating developing Asia’s position as the largest recipient in the world.
In the Asean particularly, FDI flows rose 5 percent to $133 billion in 2014, from $126 billion in 2013. Of the total invested in the area, the Philippines received $6.2 billion, a big jump from $3.7 billion in 2013.
But compared to Singapore, it is a small amount. The city-state was the biggest FDI recipient in the Asean last year with a whopping $67.5 billion, up from nearly $64.8 billion the preceding year.
Indonesia came in second with $22.6 billion, from $18.8 billion in 2013. Following behind were Thailand with $12.5 billion (down from $14 billion in 2013), Malaysia with $10.8 billion (from $12.1 billion previously) and Vietnam with $9.2 billion (from $8.9 billion).
After the Philippines came Cambodia with $1.7 billion, from $1.9 billion from a year earlier, Myanmar with $946 million from $584 million, Lao People’s Democratic Republic with $721 million from $427 million, and Brunei Darussalam with $568 million from $776 million.
The report said inflows to Indonesia rose by 20 percent on the back of a significant increase in equity investment, particularly in the third quarter of the year. The most important targeted industries were mining; food; transportation and telecommunications; metal, machinery and electronics; and chemical and pharmaceutical.
Vietnam also saw its inflows increase 3 percent in 2014. Neighboring low-income countries in Southeast Asia, such as Myanmar, have significant labor-cost advantages over Vietnam, prompting an increase in FDI in manufacturing to those countries, including for large projects.
2 comments
6th
place. That’s also our final medal standing at last SEA Games and surely an
indication of economic prosperity / or backwardness for that matter . ##ekonomiyaNaman
You know what we are still the sick man and basket case of Asia after 30 years. Consistency