Net foreign direct investments (FDI) into the Philippines remained positive in April 2025, with inflows from Japan and into the manufacturing sector taking the lead, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed.
FDI net inflows rose 7.1 percent to $610 million in April 2025 from $570 million in April 2024.
The increase was driven by higher net inflows from non-residents’ net investments in debt instruments, which surged 24.3 percent year-on-year to $522 million from $420 million. Reinvestment of earnings also saw a 3.3 percent rise, reaching $84 million from $82 million.
Non-residents’ net investments in equity capital (excluding reinvestment of earnings) fell sharply by 94.1 percent to $4 million from $68 million.
Equity capital placements in April 2025 came mainly from Japan, the United States, Singapore, South Korea, and Taiwan. The manufacturing, financial and insurance, and real estate industries received the bulk of these investments.
The BSP said that from January to April 2025, FDI net inflows decreased by 33.4 percent to $2.4 billion from $3.6 billion recorded in the same period in 2024.
The BSP compiles FDI statistics based on the Balance of Payments and International Investment Position Manual, 6th Edition (BPM6).
FDI, under this definition, includes investment by a non-resident direct investor in a resident enterprise where equity capital is at least 10 percent.
It also covers investments made by a non-resident subsidiary or associate in its resident direct investor and can be in the form of equity capital, reinvestment of earnings, and borrowings.
The BSP said its FDI statistics differ from investment data from other government sources. BSP FDI covers actual investment inflows, while approved foreign investments data published by the Philippine Statistics Authority (PSA) are sourced from investment promotion agencies (IPAs) and represent investment commitments, which may not be fully realized.
The PSA data are not based on the 10-percent foreign ownership criterion under BPM6, the BSP said.