Philippines rising as investment destination in ASEAN 

The Philippines recorded a robust 38.5 percent increase in foreign direct investment (FDI) inflows in 2024, reaching $8.94 billion, up from $6.45 billion the previous year, according to the latest World Investment Report 2025 from the United Nations Conference on Trade and Development (UNCTAD).

This marks one of the highest year-on-year growth rates in the region, a signal of rising investor confidence in the Philippine economy despite lingering global uncertainties and intensified geopolitical risks.

While the country retained its sixth place among ASEAN’s top FDI destinations, the sharp jump in net inflows highlights its growing competitiveness and capacity to attract long-term capital in an increasingly cautious global investment landscape.

UNCTAD said the broader ASEAN bloc remained a key hub for global capital, receiving $225 billion in net FDI inflows in 2024—up 10 percent from the previous year. The Philippines accounted for a rising share of this inflow, outpacing Cambodia, Myanmar, Laos, and Brunei, and positioning itself for potential upward movement in the ASEAN FDI rankings.

Globally, total FDI inflows contracted by 11 percent to $1.53 trillion amid rising protectionism and economic uncertainty. In contrast, the Philippines managed to expand its investment pipeline, underscoring its resilience and reform potential.

UNCTAD noted that strong fundamentals—such as stable macroeconomic management, growing domestic demand, and strategic reforms in key sectors—have enabled the Philippines to continue attracting investment even as project finance deals and infrastructure capital declined worldwide.

While international project finance (IPF)—a critical source for infrastructure—fell by 27 percent globally, the Philippines is seen to benefit from targeted policy reforms that promote ease of doing business, attract more diversified investors, and enhance capital access for large-scale public-private projects.

The report urges policymakers to capitalize on the current momentum by implementing “bold reforms and coordinated action” to unlock even greater foreign capital and project financing in the years ahead.

“Only by reshaping the rules and incentives that guide global capital can countries unlock leapfrog opportunities and turn today’s volatility into tomorrow’s development gains,” UNCTAD said.

With the Philippine government continuing to pursue investor-friendly measures and infrastructure expansion, analysts believe the country is well positioned to climb higher among ASEAN investment destinations in the near term.