DOF: Long-term prospects for FDI revival are promising
After observing the recovery of foreign direct investments (FDIs) in the first half of the year, the Philippines’ long-term prospects remain optimistic, according to a Department of Finance (DOF) economic report.
According to the economic report, FDIs increased by 60.5 percent year on year to USD833 million in June, citing statistics from the Bangko Sentral ng Pilipinas (BSP).
FDIs were USD4.3 billion in the first half of this year, increasing 40.7 percent from the same period last year.
According to the economic report, the 7.7% increase in reinvested profits and the 86.5 percent increase in net loan instruments for the six-month period offset the 8.9% decrease in net equity capital investments.
“The Philippines’ long-term prospects remain bright,” it added, citing a year-over-year increase in FDI during the first half of the year.
“A cautious and measured reaction to the dangers presented by the (coronavirus disease 2019) Covid-19 pandemic, as well as the continuation of the vaccination campaign, will be critical in successfully restarting the economy,” it said.
“Moving ahead, initiatives that make conducting business simpler and infrastructure improvements will be critical in drawing additional investment into the nation,” the report said.
The Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law, as well as upcoming legislation such as changes to the Foreign Investment Act, the Commonwealth-era Public Service Act, and the Retail Trade Liberalization Act, are among the reasons cited as attracting FDIs.