Foreign Investment in France Annual Report
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Annual Report 2018 Foreign investment in France 2018 Contents 2 Foreign investment in France in 2018 6-7 FOREWORD 28 8-9 PROJECTS EDITORIAL AND JOBS 10-11 32 2018 SUMMARY SOURCE COUNTRIES 37 BUSINESS ACTIVITIES 47 BUSINESS SECTORS 1 53 INVESTMENT Introduction TYPES 10 56 INTERNATIONAL FINANCIAL CONTEXT INVESTMENTS 4 Country overviews 86 FOREIGN INVESTMENT OVERVIEWS 3 Investment attractiveness of France’s regions 5 in 2018 Appendices 64 156 REGIONAL ANALYSIS JOB-CREATING PHYSICAL INVESTMENT SELECTION CRITERIA 76 THE CONTRIBUTION OF FOREIGN SUBSIDIARIES 160 TO FRANCE’S REGIONAL ECONOMIES BUSINESS FRANCE 2018 RE PORT - BUSINESS FRANCE FOREIGN INVESTMENT IN FRANCE France has no fewer than 28,000 foreign companies, employing two million people Pascal Cagni Chairman of the Board, Business France, and Ambassador for International Investment 6 FOREWORD France’s attractiveness improved further If there is one thing from this journey into – Station F – which can host up to 1,000 in 2018, despite the slowdown in global the heart of France’s attractiveness that startups. And Europe’s largest tech growth, economic tensions and rising has resonated with me, it is that France event is VivaTech, which takes place protectionism. A new record was set, is proving increasingly attractive among annually in Paris. with 1,323 foreign investment projects, decision-makers and influencers. France Finally, France has a strong industrial a figure greater than the previous record is emerging as a leading country, that is heritage, which the government has high of 1,298 projects in 2017. capable of dealing with the challenges committed to revitalizing in order that lie ahead, and one that offers Companies investing in France come to make the most of the Industrial excellent conditions for economic from nearly 60 different countries. Revolution 4.0. With 260,000 development. Prominent among them are European companies and more than €1,000 Union member states, which represent The reasons behind this renewed interest billion in revenues, 38% of which is in 61% of all investment decisions. This is are based on what we can call the magic exports, our manufacturing expertise a sign that the European market is still circle of attractiveness for investors. is known the world over. This is why structured and unified. North America France has been Europe’s leading host France is, first and foremost, an open still considers France to be an ideal for industrial investment projects for and welcoming country, gateway to the European continent, with with no more than 15 years. In 2018, a quarter of the United States retaining its position fewer than 28,000 foreign companies, foreign investment projects concerned as the leading investor. Although Asia’s employing two million people and production/manufacturing activities, score is encouraging – 11% of all projects accounting for 21% of R&D expenditure as shown by companies such as Bosch, – we need to continue our efforts, as and 31% of exports. In addition, 343,400 Merck and ThyssenKrupp. “La French Asia’s economy now accounts for nearly foreign students chose France for their Fab”, which is helping to promote this 36% of global GDP. If this difference is studies in 2017-2018, up 4.5% on the industrial renaissance, should help understandable, given the distance to previous year. attract more talent and capital to a and distinct business culture in Asia, France is also an innovative country network of employment-generating it should however encourage us to with a wealth of talent. It is home to one SMEs across France. increase trade with these countries, million engineers, the largest number All of these key assets have been move towards a two-way relationship, in Europe along with Germany, and is strengthened by almost two years of and open up to Chinese investment. among the leading countries in Europe reforms. The law regarding the action France’s image has greatly improved: for the number of students in advanced plan for the growth and transformation 61% of foreign executives believe that research. A clear example of France’s of enterprises, which will come into France’s attractiveness has increased talent when it comes to innovation is “La effect this spring, confirms France’s over the last two years. This is an French Tech”, which shone once again ability to adapt, along with its desire to increase of seven percentage points at CES 2019 in Las Vegas, with its 9,400 simplify the life of entrepreneurs and compared with 2017, after a 16-point startups raising as much as €3.6 billion both national and international investors. rise the previous year. The Kantar/ in 2018, a new record. It should therefore There is no doubt that the continuation Business France survey, carried out in come as no surprise that in 2018 more of the reform process initiated by the December 2018, also highlights the fact than 130 foreign investment projects government will further strengthen that the large-scale “yellow vest” social involved R&D activities, with company France’s attractiveness in the coming movement has not affected France’s examples including SAP, Allergan and months. The world is changing… it’s perception among foreign investors, Collins Aerospace. Who could say no to choosing France. who appear to be satisfied with both the such a deep talent pool? political and economic response. France is, moreover, a country fully During the last 18 months, I have committed to the digital revolution, witnessed this change through my and has a strong entrepreneurial meetings with several hundred leaders spirit. Sixty percent of young people from five continents, members of the want to start their own business, which foreign press, and French expatriates, is significantly higher than the figure in places such as mainland China, Hong of 13% recorded 10 years ago. What’s Kong, Singapore, Rome, Berlin, New more, France has 300 incubators and 50 York, San Francisco, Mexico City and the accelerators spread across the country. Arabian Peninsula. The world’s largest incubator is French 7 2018 RE PORT - BUSINESS FRANCE FOREIGN INVESTMENT IN FRANCE France received a total of 1,323 new foreign investment decisions, which led to some 30,300 jobs being created or maintained Christophe Lecourtier CEO Business France 8 EDITORIAL France has never been a fan of fatalism backs up what the government is our productive system, it is essential and loves proving people wrong. trying to do, is that France remains that we keep up the momentum In 2018, in a global context which the preferred destination for industrial surrounding the reforms. The world is questioned economic liberalization activities, representing 24% of foreign watching us. And everyone is aware of and a European financial environment investment in France and 38% of jobs. what is at stake, especially in a social which seemed to carry more risks than This trend confirms the presence context which has shown that France, promises, our country’s economic of foreign multinationals in French like anywhere else, is home to those attractiveness continued to grow, industry, 36% of whose total number who consider themselves to be the thanks to an outstanding 2017. of employees are based in France. “winners” and those who feel that they are the “losers” of globalization. Last year, 25 new investment Examples of companies that chose decisions were identified per week France in 2018 include Collins From this spring onwards, the PACTE (compared with 19 in 2015 and 21 in Aerospace, the world’s leading provider law will serve to foster business 2017, respectively). France received a of technology systems and solutions development – whether they are SMEs, total of 1,323 new foreign investment for the aerospace sector, which microenterprises, small retailers, or decisions, which led to some 30,300 invested more than €18 million and artisans – by simplifying their lives and jobs being created or maintained. created 55 jobs in Occitanie; Canadian enabling them to face up to national company Robotiq, and international competition. Other It was no coincidence that France which designs measures, such as the “talent passport” received such impressive results. The and manufactures components for and a larger support network for 2017 presidential election profoundly collaborative robots (robotic hands) entrepreneurs, investors, artists, changed France’s image among foreign and chose Lyon (Auvergne-Rhône- researchers, employees of large business leaders, and this positive Alpes) to raise its profile in Europe; companies and foreign students, also trend continued and improved further and Japanese food group Takara aim to improve the overall business in 2018. What’s more, according to a Foods, which announced plans to environment here in France. Kantar Public survey, 87% of foreign invest €1.6 million in a 3,000-sq. m. business leaders in December 2018 ramen manufacturing facility, which There is no doubt that other decisions considered that France was an will include a 500-sq. m. workshop. and reforms will help to sustain the attractive investment location. At last, France has shown that, on a image created two years ago of France being back in business on the This “attractiveness revolution” has global scale, it is punching above its economic front. really taken off in the last few months, weight in terms of innovation. R&D and can be seen both in terms of operations have grown year-on-year Beyond the reforms, the challenge is people’s mindsets and the economy. by more than 9% on average over the to provide greater support by way of Culturally, this means that the French last five years, and now represent 10% listening and useful services for foreign have reconciled with the idea of of investment. Furthermore, every investment projects across France’s entrepreneurship. Starting a business year global tech giants such as Cisco, regions.