Brazilian investors in search of investment opportunities in France

Posted by Invest in France Agency in Events, Investment in France; December 22, 2011

Brazilian Investors Club 2011

The third “Brazilian Investors Club” summit, organized by the IFA, was held at the prestigious Palais Brongniart on December 13, 2011.

“Relations between Brazil and France are broad, wide-ranging and fruitful”, said Ricardo Guerra, the Brazilian Embassy in France. However, one cannot help but notice the two countries’ differing levels of economic interest in each other. France is the fifth largest foreign investor in Brazil, while Brazil is only the 34th largest foreign investor in France. But Brazil – the world’s sixth-largest economy – is far from having said its last word on the matter.

Brazilian Investors Club 2011

The opening of an Invest in France office in São Paulo last year cast something of a new light on the situation. Brazil’s domestic market is very rich, and only a few months ago France was giving off a somewhat hazy image. Since then, Brazil’s interest in the French market – which plays a strategic role not only at the heart of Europe but also in the Mediterranean market and towards the Middle East – has increased significantly. Intentions to invest in France have trebled in a year, and Brazilians are increasingly attracted by France’s many key strengths, including in particular its infrastructure, education and training establishments, industrial fabric and R&D opportunities.

Fatia Bouteiller

Fatia Bouteiller, legal specialist with the IFA, presents an overview of new government measures introduced in 2011

The purpose of the first panel discussion was to provide an overview of new government measures introduced in 2011 to promote the establishment of foreign companies in France. Attendees had the opportunity to find out more about the various tax benefits and residence permits for which they may be eligible. The French Immigration and Citizenship Office (OFII), a one-stop shop established in 2011 to facilitate administrative procedures, will act as their preferred point of contact.

Marcia Azevedo of Beraca then spoke about what led this Brazilian company to choose France. There were many reasons, but the main ones were quality standards in product manufacturing and closer contact with their customers belonging to major groups that market their products.

Marcia Azedevo

Marcia Azevedo, Global Account Manager, Beraca International Europe

The IFA gave Beraca a lot of help when it set up in France by putting its representatives in contact with Aéropôle, a recently established business incubator that enabled Beraca to launch its business by providing it with offices and various services. Since its launch in France, the company has seen sales in the country increase by almost 40%. It now has a storage facility in Le Havre and is set to launch R&D projects in France in the near future.

The second panel discussion presented various forms of financial support for which foreign companies may be eligible in France. Oséo and the BNDES gave an overview of the types of aid they provide to Brazilian companies wishing to set up in France, while Global Approach Consulting summarized the many benefits of France’s research tax credit, which is unique in Europe.

Eric Portelli, Carmen Steffens

Eric Portelli, Carmen Steffens, during the Q&A session following the presentations

This latest “Brazilian Investors’ Club” summit delivered on its promises, as Eric Portelli of Carmen Steffens reflected: “These meetings of Brazilian investors are an opportunity to get your name known. I really like the “club” aspect – it allows you to meet and discuss with others facing the same issues.”

Denis Allard, Subventium, David Appia, IFA Chairman and Thierry Aubry-Lecomte, Natura

Denis Allard, Subventium, David Appia, IFA Chairman/CEO and Thierry Aubry-Lecomte, Natura

In conclusion, David Appia, Chairman and CEO of the IFA, emphasized France’s financial commitments to R&D and encouraged future Brazilian investors to participate in these future projects, reminding them that “France is an ideal location for innovation”.

Attendees at the “Brazil Club” summit with Valdimir Almoualem de Souza of the BNDES (left) and Marcia Azevedo of Beraca (right)

Attendees at the “Brazil Club” summit with Valdimir Almoualem de Souza of the BNDES (left) and Marcia Azevedo of Beraca (right)

For more information about Brazilian investments in France, please contact Marie Piffaut on Marie.Piffaut@investinfrance.org

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Innovation in France: a central topic of the Japanese Investors Club

Posted by Invest in France Agency in Events; October 3, 2011
ClubJapon

Japanese Investors Club Conference 2011, opening remarks by IFA Chairman & CEO David Appia

Held at the IFA’s Paris headquarters on September 20, this year’s Japanese Investors Club conference drew 140 participants, including 80 investors and His Excellency the Ambassador of Japan. The aim of the event was to bring current and future Japanese investors and the IFA’s partners up to date on new investment opportunities in France. 

Japan and France in a few figures: 

-           430 corporate subsidiaries in 2011. 

-           650 establishments employing 64,000 people in 2011. 

-           1,363 jobs created in 2010. 

-           Japan is the leading Asian investor in France. 

-           Japan invested more in France in 2010 than in any other euro zone country. 

The first roundtable discussion allowed speakers to present the reforms that have been implemented as a result of the March 28, 2011 meeting of the Strategic Attractiveness Council: 

-           ‘One-stop shop’ service from the French Immigration and Citizenship Office (OFII) to streamline the administrative formalities associated with moving to France. 

-           Special services for foreign investors. 

-           Fast and effective ‘contact us’ feature on the IFA website. 

-           Single point of contact for each region. 

First “Japan Club” roundtable discussion

First “Japan Club” roundtable discussion

These reforms are designed to promote high-skilled, ‘circular’ immigration. France wants to control migration flows to make them fit for the needs of its economy and its absorptive capacity. The new immigration policy is being implemented by the Secretariat General of Immigration and Citizenship (SGII) through its various divisions, including the consular, border security and citizenship departments. 

Presentation on NEDO-Oséo partnerships

Presentation on NEDO-Oséo partnerships

Additionally, new multi-year residence permits – the “Skills and Expertise” permit and the “Expatriate Employee” permit, for example – have been introduced to make it easier for new investors and their employees to move to France. Steps have also been taken to make it easier for expatriates to bring their families with them. 

During the second roundtable discussion, participants were introduced to various examples of innovative projects involving technological partnerships between the two countries. Philippe Delahaye, President of Toshiba France, emphasized the need to provide “more concrete examples of Japanese companies doing business in France.” Mr. Delahaye, who is also President of the regional development agency Normandie Développement, was very enthusiastic about the conference, where he gave a presentation on Toshiba’s involvement in the global initiative to develop Smart Grid systems. 

Philippe Delahaye, President of Toshiba France and Normandie Développement

Philippe Delahaye, President of Toshiba France and Normandie Développement

The most persuasive example was the Greater Lyon (Grand Lyon) project, which came up repeatedly during the roundtable presentations. This project, in which Japanese government agency NEDO played a major role, was interesting principally because it had been possible to develop smart technology solutions in partnership with local companies. The Greater Lyon project primarily involved the design and construction of positive energy buildings and the development of a shared-use system for electric vehicles. 

Similar projects are planned for other countries, and the companies involved in the Greater Lyon project are looking for new, innovative local partners. 

Representatives of the Japanese Ambassy and participants

Representatives of the Japanese Ambassy and participants

“Participating in the Japan Investors Club is a great way to share information with colleagues facing the same issues, such as how to transfer people from Japa to France. The IFA helps us to find solutions,” Philippe Delahaye said after the conference. “The topic of innovation might merit a longer discussion than the one here today.” 

The representatives of Nippon Express

The representatives of Nippon Express

The IFA Chairman & CEO David Appia once again encouraged innovative local projects, as well as cross sectors ones like the Greater Lyon project.

In his closing remarks, Mr. Appia Reminded French attendees working in foreign corporations of the IFA’s support. “As directors or investors, you are ambassadors for our country, and we will remain at your side.” 

Satoka Tonegawa, in charge of the IFA’s Japan Desk, surrounded by investors

Satoka Tonegawa, in charge of the IFA’s Japan Desk, surrounded by investors

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Benchmarking France’s performance

Posted by Invest in France Agency in France's image, Investment in France; June 22, 2011

In 2010, the Invest in France Agency (IFA) and its regional partners recorded and cross-checked 782 job-creating foreign investment decisions in France.

For the same year, Ernst & Young’s “European Investment Monitor” listed 30% fewer projects in France, while the “fDi Markets” database counted fewer than 300. The reasons behind these statistical disparities lie in methodological differences and sector classifications, as well as the inherent difficulty of compiling such surveys.

This being so, where exactly does France stand in Europe? The first half of 2011 has provided several interesting clues.

France’s image abroad

In January, a survey conducted by the IFA with foreign company directors and decision-makers confirmed two key points: the Agency’s 2010 “France. Expert More” promotional campaign in leading emerging economies has borne fruit, particularly in India and China, where France is now widely perceived as a country “on the move”, attractive to investment, innovative, and forward-looking.

However, this survey also showed that Germany and the United Kingdom also enjoy a strong business image in these countries, which is another good reason not to let up in the promotion of France’s investment attractiveness.

Projects and investment attractiveness

In March 2011, the “Strategic Attractiveness Council”, chaired by the President of France, coincided with the announcement of growth in job-creating foreign investment in France last year, after three years of sluggishness following the global economic crisis.

The number of projects rose by 22% in 2010. On average, 15 foreign investment decisions were made in France every week. The trend of foreign investment in R&D centers and European headquarters remained buoyant. We can therefore conclude that the decisive advantages of doing business in France are now widely recognized abroad.

European standings

Last month saw the publication of Ernst & Young’s “European Investment Monitor”, in which France remained the second largest recipient after the United Kingdom of job-creating foreign investment projects in 2010. France also remains the leading destination in Europe for foreign investment in industry, but in the overall standings, Germany is hard on France’s heels in the top three; as such, we should bear in mind that the intense competition between European rivals is unlikely to diminish.

We can look forward to the publication in July of the IFA’s “France Attractiveness Scoreboard 2011”, which will provide a chance to examine more closely France’s standing in Europe according to a complete range of investment attractiveness factors.

David Appia Chairman and CEO, The Invest in France Agency

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Good news: “Europe is back on track”

Posted by Invest in France Agency in Events, France's image, Innovation and R&D, Investment in France; June 15, 2011

The latest Ernst & Young European Attractiveness Survey concludes that “Europe is back on track” in light of the intentions of companies worldwide to invest and expand in Europe. The report was compiled using feedback from no fewer than 812 international business decision-makers.

The results of the survey, unveiled at the World Investment Conference (WIC) in La Baule, France, were well received as a positive signal by the global business and political leaders in attendance. The findings were reflected in the general positive feeling that pervaded the event about the future for investment in Europe.

There was also good news for France specifically as, along with the UK, it remained an FDI leader in Europe, while Western Europe remained the second most attractive investment region in the world in the eyes of respondents, surpassed only by China.

Attending the conference was David Appia, Chairman and CEO of the Invest in France Agency. He drew attention to the agency’s own annual report, which also confirmed France’s improving position in the inward investment market. He commented that “France remains the leading recipient in Europe of industrial projects. For us, 2010 was a very good year. According to our own figures and the perceptions of the Ernst & Young survey, we expect to maintain our growth.”

Bronwyn Curtis, Head of Global Research for HSBC, was an inspiring delegate at the conference and, when interviewed, pointed out that “France does quite well if you look at the World Bank’s Ease of Doing Business Index.” When asked if she felt France is reacting fast enough to the market, Curtis said that “France is moving quickly, they see that they must take the opportunities now.”

Another delegate and business leader who is very enthusiastic about France as a business destination is Cees de Wijs, Senior Vice President of International Operations at ACS. ACS, a Xerox company, runs major cutting-edge urban transport projects in France and around the world. Mr. de Wijs commented that “The future of investment in France is very positive for Xerox. We invest a lot in product development and the know-how of our people and we are confident that we will continue to do so in France.”

Further insight into France’s position in the market was provided by Marc Lhermitte, a partner at Ernst & Young. He observed that “France’s challenge is to make sure that it retains its existing investors and works hard to help them grow.” One other area of progress he noted is that France is now doing well in attracting manufacturing projects.

From a wider perspective, Mr. Appia recognized the importance of the European economy to France’s position. “Companies that come from foreign countries and invest in France do so of course because of the size of the French market, but they also use France as a springboard into Europe. Having a strong, vibrant, dynamic European economy contributes to France’s investment attractiveness.”

France’s strong showing in the Ernst & Young survey, backed up by the views of numerous business leaders at the World Investment Conference, highlights the country’s political commitment to uphold and enhance policies that increase France’s attractiveness to foreign investors.

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Recommendations for European competitiveness – How is France doing?

Posted by Invest in France Agency in Events, France's image, Innovation and R&D, Investment in France; June 15, 2011

The recent World Investment Conference (WIC) in La Baule, France hosted a series of workshops with panels composed of global business chiefs, academics, investors and political leaders, resulting in a series of recommendations for European governments.

This collaborative approach sought solutions to ensure that European countries remain competitive and continue to be highly attractive to investors. There was a general consensus that recommendations should not only be made in response to the current economic and social climate, but also be born out of foresight and predictions of conditions in the future.

The suggestions, which sometimes amounted to impassioned pleas, included a request to create a business environment that would be more conducive to apprenticeships in France. Calls to streamline bureaucracy for small businesses in France have already been answered, so it is hoped that this latest request will also be recognized and responded to quickly. As conference attendee Clara Gaymard, City Initiative Global Leader & President & CEO of General Electric (GE) France, pointed out “10 years ago, France was not seen as an enterprising country, but the fact is that today France has the most start-ups in Europe because the business environment has provided the opportunities for these companies to be created.”

Other recommendations for Europe included centralizing bureaucracy for SMEs and changing the culture of public-private partnerships to improve mutual trust. This would consequently help France for example to compete better with China in the speed of getting such projects underway – it takes around two months in China, compared with at least 18 in France, as Marc Duval-Destin, VP Automotive Research and Advanced Engineering for PSA Peugeot Citroën pointed out at the conference.

Another recommendation made was to centralize the promotion of innovation clusters in Europe and their attractiveness to foreign investors. Prof. Delphine Manceau of the Institute of Innovation and Competitiveness said “Competitiveness in European countries is based on innovation in a world where it is difficult to compete on cost and price, so the way to stimulate employment and build competitiveness today is to innovate. France has really benefited from its strong innovation clusters policy”. It is also hoped that Europe as a whole can mimic France in benefiting from cluster promotion. As David Appia, Chairman and CEO of the Invest in France Agency asserted “Promotion on a national and European level is equally important.”

One overriding question that came out of the WIC workshops was why Europe as a whole shouldn’t have a research tax credit and the funding for innovation that France already enjoys. The general consensus was that these are major factors in attracting big business to invest in the country, making France a global model in encouraging investment. Regarding GE’s investment program, Ms. Gaymard pointed out “The tax environment in France is much better than it was before and of course this has had a direct impact on GE’s strategy.”

GE is investing €45 million in signaling and public transport in France, as well as in research, healthcare and hundreds of new staff for their engineering center. “We believe in France, we invest in France, we believe in research and development in France”, added Ms. Gaymard.

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Significant funding for innovation gives France a competitive edge

Posted by Invest in France Agency in France and its regions, France's image, Innovation and R&D; May 13, 2011

Companies now have the opportunity to take advantage of the 13th round of the French government’s financial support program for research and development (R&D). The next bidding process for funding as part of the innovation cluster concept will close on September 30, presenting a second opportunity this year to join what has proved to be a very successful initiative.

France is already the second-largest spender on R&D in the European Union and the innovation clusters sit at the heart of the country’s efforts to attract international investment. President Sarkozy and Industry Minister Eric Besson both reiterated their importance in speeches earlier this year.

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Building bridges for innovation

Posted by Invest in France Agency in Innovation and R&D; April 8, 2011

Engineers and investors can and should communicate, says biohealth expert Jean-Pierre Saintouil.

Before he became the CEO of the Cancer Bio-Santé innovation cluster, Jean-Pierre Saintouil spent 18 years at Sanofi-Diagnostics- Pasteur and another six at the Institut Pasteur, in charge of technology transfers. In these positions, he became closely acquainted with the faulty communication between the various communities that play essential roles in technological innovation: researchers, business leaders and financial investors. “When engineers talk about their work, they invariably focus on the technological aspects. They often forget to present a business case.” The rifts exist even inside the R&D community: “Scientists engaged in fundamental research tend to be biased against applied research: they are more interested in academic publications.” But things have changed in the past decade and new opportunities are emerging for investors.

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France – Wind Power Pioneer

Posted by Invest in France Agency in Green; March 18, 2011

Tender launched for five offshore wind farms – good news for the green energy sector in France.

President Sarkozy of France has announced the first round of bidding for the construction of five 3,000 MW offshore wind farms, or 600 wind turbines, at a total cost of €10 billion. The wind farms, which are expected to be in action by 2015, will be located in north-west France. A subsequent tender is planned for another 3,000 MW.

The offshore wind farm project aims to make France one of the most advanced European countries in this field, and will increase the percentage of electricity from renewable sources used in France by 2%, or the equivalent of three small nuclear power stations. A target of 23% overall has been fixed for 2020.

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Work and residence permits made easy

Posted by Invest in France Agency in Reforms; February 22, 2011

The Karl Waheed law firm specializes in international mobility law and is a partner of the Invest in France Agency. It advises and assists multinational organizations on compliance with French immigration and labor regulations. In 2006, the French government asked the firm to assess the impact of these regulations on the mobility of multinational assignees. The firm’s recommendations were then broadly adopted in the groundbreaking Expatriate Employee status. Founding partner Karl Waheed offers an update on conditions for companies and their international employees in France.

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Growing green shoots

Posted by Invest in France Agency in Green; February 7, 2011

Those who still don’t believe that ecology and economy can go hand in hand should ask a resident of Lyon. Until 2005, cyclists were a bit of a rarity in France’s second-largest city. Then the municipality introduced a bicycle sharing system called Vélo’v. Unlike the idealistic, unregulated community sharing programs of previous decades – where most bikes were soon vandalized or stolen – Vélo’v relies on electronic locks, smart cards, telecommunication systems and embedded electronics, as well as a public-private partnership with an advertising company that keeps the scheme cost-neutral for the city. The system has been a huge success. Within a year, the number of cycle rides in the city had increased by 500%, a quarter of which were on Vélo’v bikes. In 2007, Paris introduced a similar bike sharing system of its own, the now world-famous Vélib.

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