International investments: 2021, record year for the attractiveness of France

“This is a record level reached, and France has never been so attractive than in 2021”. As the French minister in charge of finance wrote, an average of 31 investment decisions were recorded each week last year in France.

Investment projects from all countries

These projects were kickstarted from about 60 different countries, but the French Ministry of Finance said the year 2021 is marked “by a significant consolidation of the attractiveness of France towards European investors”, who initiated two projects out of three. More specifically:

- Germany has become the first investor country in France, with about 300 projects, before the United States (247 projects);

- The United States keep their leadership in terms of employment (10,118 jobs compared to 8,063 for Germany);

- The United Kingdom is still one of the biggest investors in France, with 151 projects registered (for 4,202 jobs), followed by Belgium and the Netherlands.

To be noted also that such projects are the direct consequence of decisions to make new implementations in France. More than half of such projects are creations, which is a “sign of trust from investors in the business environment and economic prospects in France”. According to the Ministry, extensions are “a sign that the renewed confidence of foreign companies that have already invested in France”, and they represent 44% of projects, and about half of jobs. These extensions mainly relate to industrial sites. 

Projects for a France that looks towards industry

The reindustrialisation of France is really happening! This is what the Ministry underlines when it notes the “record level” of industrial-type investment projects. Figures confirm that in 2021, industrial projects stood for 29% of international projects, i.e. 460 industrial projects of foreign origin registered in France last year, a 49% increase.

Such projects led to the creation or maintained more than 15,000 jobs, which are extensions for the most part (not creations). Such results “show that the process of reindustrialisation of French economy, in place for several years, is speeding up in 2021, and that, far from being eroded, trust from international investors in the France site has been strengthened by the health crisis”.

Besides, says the ministry, international investment projects are an overall advantage for the territory, since “companies under foreign control are present and create jobs in all regions of France”. The economic attractiveness of France is apparent in the case of major regional cities, but also of more modest size cities, because 43% of investors in 2021 are localised in urban hubs registering under 200,000 inhabitants. 

In the case of industries with most prospects of international investments, Business France notes that:

- medical expertise: France is the first destination in Europe for the localisation of health projects, and the first industrial sector for foreign investment in France;

- agribusiness, a critical industry in such times of crisis: 77 projects and 1,500 potential jobs;

- several additional industries also improved, such as car manufacturing, construction, financial services or chemistry.

Reasons of the recovery

The Ministry of Finance commented these figures by praising “excellent results” that show “the success of the attractiveness strategy deployed by the government since 2017, through ambitious reforms”. The minister of finance notes among such reforms;

- the labour market reform (a renovation of the labour law that should “modernise the rights and duties of employees and employers, while maintaining its foundations and principles”);

- the taxation reform to guide savings towards productive investment and improve the competitiveness of companies;

- the simplification of administration processes to boost the implementation in France, and in particular in the industrial sector.

The minister concluded that “these actions helped France become the most attractive country in Europe as early as 2019, a leadership that we still have today”.

To know more: 

- Press release from the Ministry of the Economy, Finances and Recovery

- The Invest in France website

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