According to a report released on October 11 by a British-based economic think tank, the Philippines was named one of the most attractive destinations for foreign direct investment (FDI) in the Asia-Pacific region in the new ranking of the Oxford Economics Institute. It pointed out that in the FDI attractiveness scorecard of the Oxford Economics Institute, the country ranks 13th among the 14 Asia-Pacific economies, second only to Taiwan. The ranking shows that the main reasons for the low ranking are poor infrastructure and logistics, generally unsound business environment, political unreliability, and small market size, which has little potential. The severe economic trauma caused by the Covid-19 pandemic has amplified this point. The Oxford Economics Institute stated…
According to a report released on October 11 by a British-based economic think tank, the Philippines was named one of the most attractive destinations for foreign direct investment (FDI) in the Asia-Pacific region in the new ranking of the Oxford Economics Institute.
The country ranks 13thday It pointed out that in the FDI attractiveness scorecard of the Oxford Economics Institute, among the 14 Asia-Pacific economies, it is only ahead of Taiwan.
The ranking shows that the main reasons for the low ranking are poor infrastructure and logistics, generally unsound business environment, political unreliability, and small market size, which has little potential. The severe economic trauma caused by the Covid-19 pandemic has amplified this point.
According to the Oxford Economics Institute, the Philippines ranks low in terms of infrastructure quality and performs worse than its neighboring economies. Business environment in 2020 World Bank Report 95day Among 190 economies.
On the positive side: labor dynamics and exports
In contrast, the country scored positively in terms of export structure and labor dynamics.
“Continued urbanization and a relatively young labor force mean that in the next ten years, we expect the labor supply to increase… We also predict that by 2029, their average annual income will be about one-third lower than China’s ,” said Oxford Economics.
In contrast, the top regional economies on the FDI Attractiveness Scorecard of the Oxford Institute for Economic Research are China, Vietnam, and Malaysia.
Vietnam’s prospects are much better
“We think the prospects of FDI inflows into the Asia-Pacific region in the medium term [will] Although the supply disruptions caused by the pandemic and the uncertainty of the pace of recovery may cause some companies to reconsider their supply chains, they remain strong,” said Oxford Economics.
“Given its fast-growing domestic market, we expect China to remain the preferred destination for foreign direct investment. As the supply chain continues to adapt to China’s rising labor costs and trade protectionism, we expect Southeast Asia, especially Vietnam, to be the main beneficiaries ,” the think tank added.
