Philippines among least attractive countries in Asia-Pacific for foreign investments
The Philippines has been named one of the least attractive destinations for foreign direct investment (FDI) in Asia-Pacific in a new ranking by Oxford Economics, a release by the UK-based economic think tank on October 11 showed.
The country ranked 13th out of 14 Asia-Pacific economies in Oxford Economics’ FDI attractiveness scorecard, ahead only of Taiwan, it noted.
The low ranking is mainly attributed to poor infrastructure and logistics, a generally unsound business environment, political unreliability and a small market size with little potential, amplified by a deep economic scarring from the Covid-19 pandemic, the ranking revealed.
Oxford Economics said the Philippines ranked low in terms of quality of infrastructure and performed worse than its neighbouring economies in the Doing Business 2020 report by the World Bank where it is placed 95th among 190 economies.
On the positive side: Labour dynamics and exports
In contrast, the country had positive scores in export structure and labour dynamics.
“Ongoing urbanisation and a relatively young workforce mean that over the next decade we expect the labour supply to rise… We also forecast their average annual earnings to be around a third lower than in China in 2029,” Oxford Economics said.
Conversely, regional economies topping the Oxford Economics FDI attractiveness scorecard are China, Vietnam and Malaysia.
Prospects much better for Vietnam
“We believe prospects for FDI inflows into Asia-Pacific over the medium term [will] remain strong, even though pandemic-driven supply disruptions and uncertainties over the pace of recovery may see some firms rethink their supply chains,” Oxford Economics said.
“We expect China to remain the top destination for FDI given its rapidly growing domestic market. And as supply chains continue to adjust to higher labour costs in China and trade protectionism, we anticipate Southeast Asia, notably Vietnam, to be the key beneficiary,” the think tank added.
The Philippines has been named one of the least attractive destinations for foreign direct investment (FDI) in Asia-Pacific in a new ranking by Oxford Economics, a release by the UK-based economic think tank on October 11 showed. The country ranked 13th out of 14 Asia-Pacific economies in Oxford Economics’ FDI attractiveness scorecard, ahead only of Taiwan, it noted. The low ranking is mainly attributed to poor infrastructure and logistics, a generally unsound business environment, political unreliability and a small market size with little potential, amplified by a deep economic scarring from the Covid-19 pandemic, the ranking revealed. Oxford Economics said...
The Philippines has been named one of the least attractive destinations for foreign direct investment (FDI) in Asia-Pacific in a new ranking by Oxford Economics, a release by the UK-based economic think tank on October 11 showed.
The country ranked 13th out of 14 Asia-Pacific economies in Oxford Economics’ FDI attractiveness scorecard, ahead only of Taiwan, it noted.
The low ranking is mainly attributed to poor infrastructure and logistics, a generally unsound business environment, political unreliability and a small market size with little potential, amplified by a deep economic scarring from the Covid-19 pandemic, the ranking revealed.
Oxford Economics said the Philippines ranked low in terms of quality of infrastructure and performed worse than its neighbouring economies in the Doing Business 2020 report by the World Bank where it is placed 95th among 190 economies.
On the positive side: Labour dynamics and exports
In contrast, the country had positive scores in export structure and labour dynamics.
“Ongoing urbanisation and a relatively young workforce mean that over the next decade we expect the labour supply to rise… We also forecast their average annual earnings to be around a third lower than in China in 2029,” Oxford Economics said.
Conversely, regional economies topping the Oxford Economics FDI attractiveness scorecard are China, Vietnam and Malaysia.
Prospects much better for Vietnam
“We believe prospects for FDI inflows into Asia-Pacific over the medium term [will] remain strong, even though pandemic-driven supply disruptions and uncertainties over the pace of recovery may see some firms rethink their supply chains,” Oxford Economics said.
“We expect China to remain the top destination for FDI given its rapidly growing domestic market. And as supply chains continue to adjust to higher labour costs in China and trade protectionism, we anticipate Southeast Asia, notably Vietnam, to be the key beneficiary,” the think tank added.
