France: A Resilient Destination for Foreign Investment in 2024
April 2, 2025
Written by : Marc Huynh
Business France published its latest Annual Report on Foreign Investment in France for 2024 on April 1, 2025. Based on this comprehensive report, our article provides a concise overview of the key aspects and trends in foreign investment in France, specifically tailored for our potential Chinese clients. Despite a global downturn in investment flows, France has demonstrated remarkable resilience in attracting foreign investment in 2024. This report offers valuable insights for businesses, particularly those in China, considering expanding their operations into Europe.
Key Trends and Highlights for 2024:
Sustained Attractiveness: While the number of foreign investment projects in France saw a slight decrease of 7% compared to the exceptional years of 2022 and 2023, it remains significantly higher (25%) than the average of the preceding decade. This indicates France's enduring appeal as an investment destination.
Confidence of Investors: A significant 28% of foreign businesses invested in France for the first time in 2024, while 72% reinvested, showcasing continued confidence in the French market. Notably, takeovers of struggling businesses nearly quadrupled, safeguarding over 3,600 jobs, a 160% increase.
Focus on Innovation: Investment in Research & Development (R&D) and engineering remains robust, with a 9% increase in jobs created or maintained in these sectors. This highlights France's commitment to innovation and technological advancement.
Manufacturing Strength: Manufacturing continues to be a preferred sector for foreign investors, accounting for 44% of identified projects and nearly half of all jobs created. A significant portion of these projects involved reinvestments aimed at digitalization and reducing carbon emissions.
Regional Economic Development: Foreign investment plays a crucial role in the economic development of French regions, with nearly half of all projects and associated jobs located in municipalities with fewer than 20,000 inhabitants.
European Leadership: Europe remains the primary source of foreign investment in France, accounting for 64% of projects. Germany led in new establishments, while the United Kingdom was the top investor in financial services, energy, and recycling.
Growing Interest from China: Reflecting global economic trends, China was among the top 10 investors in France in 2024, with the highest number of investment decisions since the COVID-19 pandemic.
France 2030 and Green Industry Act: Catalysts for Investment
The French government's proactive policies, including the "France 2030" investment plan and the Green Industry Act, are significant factors in attracting foreign investment. These initiatives focus on supporting promising sectors, promoting decarbonization, and simplifying procedures for setting up industrial sites. Notably, nearly one-third of announced projects align with the sectors of excellence supported by the "France 2030" plan.
Conclusion:
The 2024 Business France report underscores France's enduring appeal and resilience as a destination for foreign investment. Despite global economic headwinds, France continues to attract significant investment, particularly in manufacturing, R&D, and future-oriented sectors. For Chinese businesses seeking a strategic foothold in Europe, France offers a stable, innovative, and supportive environment. Our firm is well-positioned to assist Chinese clients in navigating the French legal and business landscape to capitalize on these opportunities.
Source:
Business France. Annual Report Foreign Investment in France 2024