Annual Report 2020: Foreign investments in France [fr]

Business France published its “Annual Report 2020: Foreign investment in France” on 25th March. Despite the contexts of health uncertainty weighing heavily on the global economy, and a sharp decline in investments due to the Covid-19 pandemic, foreign investors have confidence in France as a place to set up business.

In 2020, 18 new investments from ASEAN member countries or Oceania were confirmed in France, up 20%, creating 253 jobs, up 33%. Sector-wise, chemicals/plastics and IT services were the main recipients of investments from ASEAN+Oceania in 2020, with three investments in each of these sectors. France received nearly one-quarter of investments from ASEAN+Oceania in Europe (24% of investments), making it the second leading European recipient of investment from ASEAN+Oceania, after the United Kingdom, and the first country within the EU.

Investments from Singapore rose once again last year, from 8 in 2019 to 10, creating two times more jobs (166 up 80). These results are the fruits of the coordinated action and responsiveness to the pandemic of the Business France and the Economic Department teams of the French Embassy as well as the Team France Invest representatives in Singapore and in France.

In total, France attracted 1,215 new foreign investment decisions in 2020, a 17% decline on 2019, versus -33% worldwide. The crisis interrupted the positive momentum of 2019 but has not challenged the attractiveness of France as an investment location. Jobs created or maintained by foreign subsidiary investments were also down by 13% since last year. The shock was nevertheless softer on the creation of employment, as with 34,567 jobs, 2020 was the second best year in the last decade.

One quarter of the projects aimed to establish or expand a production facility. Manufacturing activities were the leading contributor to employment, with 12,875 jobs, or 37% of total employment. Healthcare projects recorded an increase of 40%. Strengthened by investment in renewable energies, the number of projects in the energy sector was up 13% and the number of jobs generated virtually doubled.