MANILA, Philippines - Foreign direct investments (FDI) posted a net inflow of $304 million in November 2010, reversing the previous month's outflow of $23 million, the central bank reported on Thursday.

The November figure was more than 3 times the $92 million inflow recorded in the same month of 2009.

"Investors’ continued risk appetite for emerging Asia’s assets along with the brighter outlook on the Philippine economy helped boost the flow of capital into the country," said Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr.

For the 11 months to November, however, net FDI inflow amounted to $1.4 billion, 22.7% lower than the previous year's level of $1.8 billion.

"This can be attributed to investor concerns over the sovereign debt crisis in some parts of Europe, rising inflation in China, tensions in Korea, and the subdued economic prospects in the US," Tetangco noted.

The 11-month FDI was also dragged down by "markedly lower" inflow of equity capital, which fell to $477 million. In January to November 2009, equity capital amounted to $1.8 billion owing to "large investments arising from the privatization of a local power corporation and the acquisition of a number of shares of a local beverage manufacturing firm."

Meanwhile, other capital account, consisting mainly of lending between multinational firms and their subsidiaries or affiliates in the Philippines, recovered in the first 11 months of 2010. It posted a net inflow of $634 million, a turnaround from the $88 million outflow in the year before.

Reinvested earnings also increased by over 4 times to $263 million during the period.

The central bank was expecting the net FDI inflow to rise 5.3% to $2 billion in 2010 from $1.9 billion in 2009.

FDI, portfolio inflows, and remittances from Filipinos working overseas help keep the country's balance of payments (BOP) in surplus.

The BOP surplus for the 11 months to November of last year was $13.2 billion, higher than the central bank's upwardly revised estimate for 2010 of $8.2 billion.