Net foreign direct investments (FDI) into the Philippines remained positive in June, with inflows from Japan and into manufacturing taking the lead, the Bangko Sentral ng Pilipinas (BSP) said Wednesday.
Data from the BSP showed that net inflow of FDIs declined by 17.8 percent from $457 million in June 2024 to $376 million in June 2025.
The slowdown in FDI net inflows during the month reflected the shift in nonresidents’ net investments in equity capital (other than reinvestment of earnings), from $85 million inflows to $57 million outflows.
However, the reduction was partly offset by a 36.7 percent increase in reinvestment of earnings, rising from $94 million to $128 million.
Nonresidents’ net investments in debt instruments grew by 9.3 percent, from $279 million to $305 million.
Equity capital placements in June 2025 were sourced primarily from Japan, the United States and South Korea. Industries that received most of these investments were manufacturing, real estate and wholesale and retail trade.
For the first half of 2025, FDI net inflows decreased by 23.8 percent from $4.5 billion posted in January to June 2024 to $3.4 billion in January to June 2025.
BSP statistics on FDI includes investment by a non-resident direct investor in a resident enterprise, where the equity capital in the latter is at least 10 percent.
It also includes investment made by a nonresident subsidiary or associate in its resident direct investor. FDI can be in the form of equity capital, reinvestment of earnings, and borrowings.
BSP FDI statistics are different from the investment data of other government sources.
BSP FDI covers actual investment inflows. In contrast, the approved foreign investments data published by the Philippine Statistics Authority (PSA) are sourced from Investment Promotion Agencies (IPAs).
These represent investment commitments, which may not necessarily be fully realized in a given period.
