Phl lags in FDI inflows in Asean

MANILA, Philippines - The Philippines logged behind other Southeast Asian countries in attracting foreign direct investments (FDIs) last year, an international study showed.

Based on the World Investment Report 2013 released by the United Nations Conference on Trade and Development (UNCTAD), the Philippines logged in $2.79 billion FDI inflows last year, way behind Indonesia’s $19.8 billion and Thailand’s $8.6 billion.

Norio Usui, senior country economist of the Philippine country office of the Asian Development Bank (ADB), added that Vietnam drew in $8.3 billion while Malaysia lured $10 billion.

“What is noteworthy is that Myanmar nearly equaled the Philippines’ FDI by tapping $2.24 billion, and Cambodia drew $1.55 billion,” Usui, who served as a reactor to the UNCTAD report, added.

The whole of Southeast Asia managed to attract a total of $111.3 billion in FDIs in the same period.

Last year’s FDIs to the Philippines, however, 54 percent higher than the $1.81 billion in 2011.

As a percentage of gross fixed capital formation, the FDI inflows were just 5.6 percent. This is higher than the 4.2 percent in 2011 bit just half of the pre-crisis 2005-2007 annual average of 10.3 percent.

In contrast, Indonesia’s inflows last year had more than twice the size of its pre-crisis average of $6.7 billion.

The UNCTAD report said Asean experienced a modest two-percent increase in FDIs, with Singapore as biggest contributor, attracting $57 billion last year.

Meanwhile, developing countries accounted for 52 percent of global FDI flows, as the developed nations took a beating and settled for just 42 percent, while the poorest states taking the remaining six percent.