During the Japanese occupation period, the city is one of the island's three major timber distribution centers. On account of which, related industries have also fostered, paving a sound foundation for the region's economic development both industrially and commercially. The economy had transformed from agriculture in the early days to today's industrialization.

     With efficient distribution channeling, Fengyuan is a distribution centre for products of neighboring towns, which much added to the booming economic development.

      The city is equipped with sound infrastructure in transportation and utilities which has generated active manufacturing in diverse scales, particularly in the sectors of machinery making, shoe production, timber processing and motors. Today Fengyuan houses many factory facilities, and is developing in the direction of small and medium light industry as well as precision technology. In addition to which, there are more than ten thousand stores of wide varieties and some fifty plus financial institutions. In recent years, department stores, hypermarkets and high-tech industry having been taking roots locally, turning the city into a metropolis.

      Besides industrial activities, agriculture remains an important asset to the city. Calabash Rice is renowned nation-wide, and is critical economic yield. Other agricultural products include potato, tangerine, grape and garlic.