10 reasons to invest in france
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10 REASONS TO INVEST IN FRANCE. January 2008. THE DOMESTIC MARKET # 1 Europe is the world’s leading market. Source: International Monetary Fund, World Economic Outlook Database , October 2007. THE DOMESTIC MARKET # 2 France, an influential economy at the heart of the EU. - PowerPoint PPT PresentationTRANSCRIPT
10 REASONS TO INVEST IN 10 REASONS TO INVEST IN
FRANCEFRANCE
January 2008
2© AFII 200877 bd Saint Jacques75680 Paris Cedex 14
THE DOMESTIC MARKET # 1 Europe is the world’s leading market
Source: International Monetary Fund, World Economic Outlook Database, October 2007
GDP 2007 (estimates - in billion dollars)
14,6
09.8
13,1
94.7
4,36
6.5
2,64
4.6
16,5
74.4
13,7
94.2
4,34
5.9
3,24
8.5
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
18 000
20 000
EU-27 United States Japan China
GDP 2006
GDP 2007
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THE DOMESTIC MARKET # 2 France, an influential economy at the heart of the EU
Source: International Monetary Fund, World Economic Outlook Database, October 2007
GDP 2007 (estimates - in billion dollars)
3,25
9.2
2,75
5.9
2,51
5.2
2,06
7.7
1,41
4.6
754.
9
442.
8
431.
6
413.
3
366.
7
310.
7
253.
3
236.
1
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
Germ
any
Unite
d Kin
gdom
Fran
ceIta
ly
Spain
Nether
land
s
Belgi
um
Sweden
Polan
d
Austri
a
Denm
ark
Irela
nd
Finl
and
GDP 2006
GDP 2007
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THE DOMESTIC MARKET # 3 Tourists in France: Another source of revenue
Source: World Tourism Organization - 2007
Tourist entry in 2006 (in millions)
20.220.321.423.630.1
41.1
49.651.1
58.5
79.1
0
10
20
30
40
50
60
70
80
90
Fran
ce
Spain
Unite
d Sta
tes
China
Italy
Unite
d Kin
gdom
Germ
any
Mex
ico
Austri
a
Russi
a
International tourism in 2007
A sustained growth rate reaching 5.6 %
32 million more visitors counted in 2007
France, the “Rugby World Cup“ effect
High increase in tourist occupancy during the autumn season
October 2007: 7.6% increase of overnight stays of foreign tourists compared to October 2006
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THE MEN AND WOMEN
# 4 A highly educated population
Science graduates 2005 - higher education (Per 100,000 employed 25-to-34-year-olds)
948
1,3021,3751,4011,401
1,6561,746
2,283
2,9173,022
0
500
1000
1500
2000
2500
3000
3500
Source: OECD 2007
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Source: International Labor Organization - September 2007
Labor productivity - GDP per hour worked
29.4930.4230.4430.9
32.8234.1434.47
35.0835.63
37.99
25
27
29
31
33
35
37
39
Norway
United
State
s
France
Irela
nd
Belgiu
m
Nether
lands
Sweden
Denmar
k
United
Kingdom
Germ
any
THE MEN AND WOMEN
# 5 The most productive workforce in the EU
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THE BUSINESS ENVIRONMENT
# 6a Competitive employment costs
Compared employment costs for an executive (in $/year)
121,549
155,612176,097
46,465
14,481
13,984
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
200000
220000
France Germany United Kingdom
Data source: Mercer Human Resources Consulting, April 2007
Employer contributions
Total remuneration
168,014170,093
190,081
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THE BUSINESS ENVIRONMENT
#6b France: A low cost and high quality real estate offering
1,517
879
730
420
0
200
400
600
800
1000
1200
1400
1600
LondonWest-End
London The City
Paris CBD*
Frankfurt
Data source : European Market 2007, Atisreal * Central Business District
Office Rents in 2007 (in €/m²/year)
The most dynamic market in Europe with 2.8 million m² of office space distributed and total of €23.1 billion invested in 2006.
Paris Region is the Paris Region is the
leading European business leading European business
real estate center, with an real estate center, with an
office park of 49 million m², office park of 49 million m²,
an industrial park of 30 an industrial park of 30
million m² and a warehouse million m² and a warehouse
park of 20 million m².park of 20 million m².
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THE BUSINESS ENVIRONMENT # 7 Excellent infrastructures
Data source: UIC – September 2007 (forecast 2007)
High speed train lines (km)December 2007
890
570
300197 113
1,893
1,552
1,300
0
500
1 000
1 500
2 000
France
Spain
Ger
man
yIta
ly
Turkey
Nether
lands
Belgiu
m
United
Kingdom
Paris-London in 2h15
Paris-Brussels in 1h20
Paris-Lille in 50 min.
Paris-Marseille in 3h10
Paris-Strasbourg in 2h20
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THE BUSINESS ENVIRONMENT
# 8a An administrative framework favorable to companies
Source: Doing Business in 2008 report (IFC, World Bank Group, Sept-2007)
Easily register a new business
05
101520253035404550
Bel
gium
Uni
ted
Sta
tes
Fran
ceN
ethe
rland
s
Italy
Uni
ted
Kin
gdom
Ger
man
y
EU-2
7
Japa
n
Pola
nd
Indi
a
Chi
na
Spai
n
Du
rati
on
(d
ay
s)
0
2
4
6
8
10
12
14
Nu
mb
er
of
pro
ce
du
res
Duration (days) Number of procedures
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THE BUSINESS ENVIRONMENT
# 8b The French government is determined to make it better
Four fundamental reforms in 2007:
Reduced social charges on overtime work for companies (“TEPA” law – August 21st 2007)
Social charges tax exemption and removal of taxes on overtime work for employees ( “TEPA” law – August 21st 2007)
Overall tax drop from 60% to 50% of an individual’s total revenue, including direct, national and local taxes, as well as CSG and CRDS contributions, for taxes paid in 2007 (“TEPA” law – August 21st 2007)
Research tax credit 2008: 30% of yearly R&D expenses, up to a limit of €100 million (Finance law 2008)
Other measures expected for 2008:
Labor law simplified with a single contract
Possible buy-back of remaining “Work Hour Reduction” days
Facilitation of working on Sundays
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THE REGIONS
# 9 Making innovation a priority
France has 71
competitive clusters,
making a network of
players at the
forefront of
innovation.
Foreign companies
participating in
clusters represent
nearly 500 sites and
173,500 employees.
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THE REGIONS
#10 Paris, the most popular city for future company expansion
Source: Cushman & Wakefield, European Cities Monitor, 2007. Results from an opinion poll obtained from chief executives.
Number of companies expecting to set-up within the next five years
5 8 11 14 17 20 23 26
Milan
Amsterdam
Dublin
Madrid
Lisbon
Brussels
Berlin
Barcelona
London
Paris Paris is the most attractive of the Western European cities, for future expansion.
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CONCLUSION : AN APPEALING COUNTRY FOR FOREIGN BUSINESSES
Source: Ernst & Young - European Attractiveness Survey - 2007
TOP 15 investment destinations among European countries (number of projects 2006)
686
565
286212 185 152 140 136 113 113
0
100
200
300
400
500
600
700
800
United
Kingdom
France
Ger
man
y
Spain
Belgiu
m
Poland
Romani
a
Switz
erla
nd
Czech
Repu
blic
Swed
en
3rd worldwide destination for FDI with $81 billion in 2006, after only the United States and United Kingdom