Foreign business groups urge review of FDI policies News - July 20, 2015 By: Richmond S. Mercurio The American Chamber of Commerce of the Philippines (AmCham) has expressed concern about the slowdown of the country’s FDI inflows in recent months. “The Philippines did a great job last year at over $6 billion but we’re somewhat concerned that that number has fallen by almost 50 percent in the first four months this year,” AmCham senior advisor John Forbes said. Foreign business groups urge review of FDI policies
I think the following definition explains why the Philippines are not receiving their share of FDI investment. DEFINITION OF 'FOREIGN DIRECT INVESTMENT - FDI' An investment made by a company or entity based in one country, into a company or entity based in another country. Foreign direct investments differ substantially from indirect investments such as portfolio flows, wherein overseas institutions invest in equities listed on a nation's stock exchange. Entities making direct investments typically have a significant degree of influence and control over the company into which the investment is made. Open economies with skilled workforces and good growth prospects tend to attract larger amounts of foreign direct investment than closed, highly regulated economies. Read more: Foreign Direct Investment (FDI) Definition | Investopedia Follow us: @Investopedia on Twitter
Until they get rid of the limitations on foreign ownership/control of a business/property and deal with the massive corruption in the judicial system (contracts and property deals are not upheld consistently enough) they will have low foreign investment levels. It's far to risky to invest any significant amount of money in the Philippines IMO. Until that stuff is dealt with my money will stay in the US.