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10 REASONS TO INVEST IN FRANCE 10 REASONS TO INVEST IN FRANCE January 2008

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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 Presentation

TRANSCRIPT

Page 1: 10 REASONS TO INVEST IN FRANCE

10 REASONS TO INVEST IN 10 REASONS TO INVEST IN

FRANCEFRANCE

January 2008

Page 2: 10 REASONS TO INVEST IN FRANCE

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

Page 3: 10 REASONS TO INVEST IN FRANCE

3© AFII 200877 bd Saint Jacques75680 Paris Cedex 14

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

Page 4: 10 REASONS TO INVEST IN FRANCE

4© AFII 200877 bd Saint Jacques75680 Paris Cedex 14

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

Page 5: 10 REASONS TO INVEST IN FRANCE

5© AFII 200877 bd Saint Jacques75680 Paris Cedex 14

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

Page 6: 10 REASONS TO INVEST IN FRANCE

6© AFII 200877 bd Saint Jacques75680 Paris Cedex 14

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

Page 7: 10 REASONS TO INVEST IN FRANCE

7© AFII 200877 bd Saint Jacques75680 Paris Cedex 14

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

Page 8: 10 REASONS TO INVEST IN FRANCE

8© AFII 200877 bd Saint Jacques75680 Paris Cedex 14

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.

Page 9: 10 REASONS TO INVEST IN FRANCE

9© AFII 200877 bd Saint Jacques75680 Paris Cedex 14

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

Page 10: 10 REASONS TO INVEST IN FRANCE

10© AFII 200877 bd Saint Jacques75680 Paris Cedex 14

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

Page 11: 10 REASONS TO INVEST IN FRANCE

11© AFII 200877 bd Saint Jacques75680 Paris Cedex 14

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

Page 12: 10 REASONS TO INVEST IN FRANCE

12© AFII 200877 bd Saint Jacques75680 Paris Cedex 14

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.

Page 13: 10 REASONS TO INVEST IN FRANCE

13© AFII 200877 bd Saint Jacques75680 Paris Cedex 14

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.

Page 14: 10 REASONS TO INVEST IN FRANCE

14© AFII 200877 bd Saint Jacques75680 Paris Cedex 14

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