Proposed marketing plan seen boosting FDI

MANILA, Philippines — The Philippines is aiming for a five percent increase in foreign direct investments (FDI), and an additional one-percentage-point growth annually until 2028, through a proposed implementation of a foreign investment promotion and marketing plan (FIPMP).

In a notice posted on the Department of Trade and Industry’s website, the Board of Investments invited the public to participate in the consultation and provide feedback on the draft FIPMP, which will serve as a roadmap to coordinate the government, private sector and local government units’ efforts in positioning the country as an attractive destination for investments to support growth.

“With the execution of this promotion and marketing plan, the Philippines is projected to increase FDI by five percent, with an additional one percentage point of growth expected annually until 2028,” the draft FIPMP read.

Data from the Bangko Sentral ng Pilipinas showed that FDI net inflow from January to September  rose by 3.8 percent to $6.7 billion from $6.4 billion in the same period last year.

Based on the draft FIPMP, foreign investment commitments are projected to grow steadily and build on the P485.87 billion foreign investments approved by investment promotion agencies from January to September.

In the third quarter alone, approved foreign investments reached P146.75 billion, up by 434 percent from just P27.46 billion in the same period last year.

In 2023, approved foreign investments reached P889.24 billion, more than double pre-pandemic levels in 2019.

As FDIs increase, more jobs are expected to be created.

“Job generation from approved foreign investment projects, which were expected to add over 80,000 jobs in 2023, is forecasted to grow by five percent annually, with an additional one percent annual increase expected through 2028,” the draft FIPMP read.

While the Philippines has made progress in efforts to attract and encourage foreign investments, it still lags behind neighbors like Vietnam, Thailand and Malaysia, which have harnessed FDI more effectively for economic growth.