Philippines posts USD 1.3B FDI inflows in July 2025

Net foreign direct investment (FDI) inflows into the Philippines reached USD 1.3 billion in July 2025, driven mainly by capital from Japan and strong activity in the wholesale and retail trade sector, according to data from the Bangko Sentral ng Pilipinas (BSP).

The latest figure represented a 7.5 percent decline from USD 1.4 billion in July 2024, as lower nonresidents’ net investments in debt instruments offset gains in equity inflows.

 

BSP data showed that nonresidents’ net investments in debt instruments fell by 39.4 percent to USD 711 million from USD 1.2 billion a year earlier.

This decrease was tempered by a sharp 450.6 percent rise in equity capital placements, which surged to USD 418 million from USD 76 million in July 2024.

Reinvestment of earnings also grew by 14.3 percent to USD 139 million from USD 122 million, indicating continued confidence among foreign firms operating in the Philippines.

Most equity capital placements in July came from Japan, accounting for 89 percent of total inflows, followed by the United States at 8 percent.

From January to July 2025, Japan remained the largest FDI source with a 60 percent share, trailed by the United States (15 percent), Singapore (8 percent), and South Korea (5 percent).

Wholesale and retail trade dominated investment activity in July 2025, capturing 73 percent of total equity placements, while manufacturing accounted for 12 percent, real estate activities for 8 percent, and other industries for 6 percent.

For the first seven months of 2025, manufacturing led with 36 percent of total inflows, followed by wholesale and retail trade (30 percent), real estate activities (15 percent), and other industries (19 percent).

On a cumulative basis, total FDI inflows from January to July 2025 reached USD 4.7 billion, down 20 percent from USD 5.9 billion in the same period last year.

The BSP attributed the decline to weaker intercompany lending between foreign investors and their Philippine subsidiaries but noted strong equity placements as a sign of sustained investor confidence in the domestic market.

The BSP compiles FDI data following the Balance of Payments and International Investment Position Manual, Sixth Edition (BPM6), which captures actual investment inflows where foreign ownership is at least 10 percent in a Philippine enterprise.

The central bank clarified that its data differ from the Philippine Statistics Authority’s (PSA) approved investment commitments, as BSP figures reflect realized inflows rather than pledged investments.