Slide1: © AFII 2002 -2, Avenue Vélasquez 75 Paris - Tel : (33) 1 40 74 74 40 - Fax : (33) 1 40 74 73 27 - E-mail : info@afii.fr - URL : http://www.afii.fr 24/01/2008 Bernard Yvetot Confederation of Indian Industry November 4th 2003 Bernard YVETOT Executive Vice-President, Invest in France Agency France: set for a rebound


Slide2: Foreign Direct Investment (FDI) in France France: Strengths and Weaknesses France: excellence in key sectors IFA strategy and regional partners IFA services for an international investor


France a leader in FDI: France a leader in FDI Sources: OECD, CNUCED, Banque de France FDI flows in 2002


Europe and internationally mobile investment: Europe and internationally mobile investment France holds market share at 13.5%, second after United Kingdom France, a major player in manufacturing, but also in R&D France in a big, enlarged market Rise in flows to countries in Central and Eastern Europe - Czech Rep., Hungary, Poland, etc Ernst & Young analysis bears out data from Invest in France observatory Ernst&Young analysis of the European market


Europe and mobile international investment: Europe and mobile international investment Invest in France Agency set up European data-collection unit (observatory) in 2002


FDI in France : FDI in France  Projected employment: trend for France better than for Europe as a whole (-10% vs. -29%, E&Y).


FDI in France : FDI in France  Automotive industry, information & communications technology and business services lead the field


France: strengths and weaknesses: France: strengths and weaknesses E&Y and other surveys confirm France strengths: Market Infrastructure Labour R&D and innovation Quality of life


France: strengths and weaknesses: France: strengths and weaknesses Market Source: OECD, DP, INSEE - IFA estimate


France: strengths and weaknesses: France: strengths and weaknesses Excellent infrastructure Source: Eurostat 2002


France: strengths and weaknesses: France: strengths and weaknesses Excellent infrastructure


France: strengths and weaknesses: France: strengths and weaknesses Skilled labour


France: strengths and weaknesses: France: strengths and weaknesses R&D : above EU average


France: strengths and weaknesses: France: strengths and weaknesses Quality of life


France: strengths and weaknesses: France: strengths and weaknesses E&Y and other surveys also highlight weaknesses in France: red tape taxes and social charges …offset by high-quality and low- or zero-cost public services: healthcare, education, transport


Main Attractiveness Measures: Main Attractiveness Measures A wide range of reforms such as: Legislation to favour business initiatives Innovation and research (tax credit system) Decrease of tax burden (income tax,…) Adjustments to the 35-hour legal working week (overtime, clear definition of yearly-based working time for managers and engineers) New pension scheme


Main Attractiveness Measures: Main Attractiveness Measures Attracting skills Foreign students and scientists Impatriated managers and executives Facilitation of the impatriates daily life (schooling, suppression of business permits, simplification of visa procedure, etc) Attracting capital and investments Reducing the cost of research and development activities Make the legal framework for international investment more secure Commitment by public services to making investment projects a success Innovation and research Decrease of tax burden (income tax,…) Adjustments to the 35-hour legal working week (overtime, clear definition of yearly-based working time for managers and engineers) New pension scheme New policy in favour of France’s international appeal


Main Attractiveness Measures: Main Attractiveness Measures Attracting strategically important activities Corporate World and European Headquarters Culture: film industry Financial sector High tech sectors: development of research and technology networks: biotechnology, fuel cell, nanotechnology, telecommunication, software industry, etc Enhance a new business oriented image of France New policy in favour of France’s international appeal


France: excellence in key sectors Biotechnology: France: excellence in key sectors Biotechnology 270 new companies launched since 1997 Ranking third in Europe Annual growth of sector business 10% over the last 3 years Sector workforce of 5,000 in 2002 Innovation backed by outstanding research at universities and public research institutes such as INSERM for medicine and INRA for agriculture. Two research and technology networks Genhome and Rare Several bio-technopoles including Paris and its Region, Lyon, Strasbourg, Montpellier and Marseille, Nantes, etc Strong support of French Public Authorities through various programs such as bioam Launching of a 1.5 bil euros plan for research and investment in biotechnology


France: excellence in key sectors Software and IT services: France: excellence in key sectors Software and IT services French domestic market EUR 30 billion a year 16%annual growth over the past ten years More than 300 000 software engineers in France Several companies with leading positions on European and World markets including CAP Gemini E&Y, Atos Origin, IBM, EDS, Dassault systems, etc Public and private-sector R&D resources pooled through RNTL, a Nationwide Network for Research and Technology founded in 1998 with areas of interest including security, onboard systems, simulation, etc


Invest in France strategy and partners: Invest in France strategy and partners A comprehensive approach to meet investors needs and expectations: Project engineering: shared IT for processing between IFA and its Regional partners Nationwide programme of promotion A network of experts and information Follow-up of companies already set up in France and head offices in Europe


Invest in France strategy and partners: Invest in France strategy and partners Target investments with high added value in technology and science Focus on areas of excellence to promote regional strengths Draw up a list of opportunities for takeovers and partnerships


Invest in France services to investors: Invest in France services to investors Information (legal and fiscal regulations, industry-specific regulations and business environment) Complimentary, confidential and practical assistance for the conduct of projects Assistance to maximizing applicable investment incentives Ongoing assistance after start-up of the operation


CONTACT US : CONTACT US AFII Paris 2 avenue Velasquez 75008 PARIS Tel 33 (0) 1 40 74 74 40 www.afii.fr Contact : Bernard YVETOT Trade and Economic Commission 2/50 E Shantipath, Chanakyapuri New Delhi 110 021 Tel 91 11 2611 87 48 Contact: Jean-Louis LATOUR


Slide25: Bernard YVETOT Executive Vice-President, Invest in France Agency