| China has been ranked the most attractive | | | | - Russia leapt to fourth position for jobs created |
| destination for foreign direct investment, ahead of | | | | (+85%) and moved from 13th to 8th for number of |
| Eastern Europe and Western Europe, in a survey of | | | | projects (+60%). |
| business leaders released on Thursday at the World | | | | - Poland and Romania maintained their position in |
| Investment Conference in La Baule, France. | | | | terms of number of projects. In terms of job |
| Ernst & Young’s fifth annual European | | | | creation, Poland fell to second, creating 41% fewer |
| attractiveness survey, "An open world", revealed | | | | jobs than last year. |
| that the world’s regions have become much | | | | - Slovenia saw the biggest growth in terms of job |
| more equal in terms of where businesses want to | | | | creation (+458%) and jumped to 15th position in the |
| invest. | | | | ranking. |
| However, it suggested that these investor | | | | - “How to” invest is becoming more |
| perceptions are not yet backed up by the reality of | | | | important than “how much” for investors |
| investment flows. Although 41% of survey | | | | considering sustainable location options. Survey |
| respondents ranked China as the most attractive | | | | respondents revealed that they pay more attention |
| investment destination, it still draws less than 8% of | | | | to political and legal stability (54%) and telecoms |
| global foreign direct investment (FDI) inflows, | | | | infrastructure (51%) than labor costs (47%). |
| according to the United Nations Commission for | | | | - Russia, still an outsider FDI destination in previous |
| Trade and Development (UNCTAD). | | | | surveys, scored this year’s sharpest climb up the |
| While only 33% of respondents ranked Western | | | | attractiveness ladder (up nine points, to a 21% |
| Europe as their top choice investment location, the | | | | rating). Russia has made notable progress in attracting |
| region still accounts for 37% of global FDI inflows, | | | | investor interest over the last two years, rising from |
| according to UNCTAD. | | | | a 5% rating in 2006 to gain the confidence of |
| “The world is becoming a level playing field when | | | | one-fifth of our global panel. |
| it comes to businesses’ perceptions of their | | | | - The shift towards a knowledge economy in |
| cross-border investment options,” observed Marc | | | | Western Europe is slower than the relocation of |
| Lhermitte, Partner of Ernst & Young France, | | | | traditional industries from Europe. Western Europe is |
| adding that: | | | | more active in services FDI (60% of all FDI |
| “The developed markets of Western Europe and | | | | announcements in 2007, 43% in 2006), but it is not |
| the US are being challenged by competing equals. As | | | | yet snaring the large high-tech, high value-added |
| they look ahead, businesses are chasing growth | | | | services projects needed to replace its declining |
| through Asian consumers’ spending power, but | | | | automotive, industrial and electrical industries (30,000 |
| Europe and the US still remain vastly diversified and | | | | fewer FDI jobs created in 2007 than 2006, a drop of |
| powerful markets.” | | | | 51%). |
| Other findings of the survey included that: | | | | - When asked how to make Europe more attractive, |
| - The number of FDI projects across Europe was up | | | | respondents cited a combination of increased |
| by 5% to 3,712 in 2007 (up from 3,531 in 2006), but | | | | flexibility in European labor markets (42%) and |
| FDI job creation fell by 18% in 2007, with a total of | | | | simplified regulations (39%). |
| 176,551 jobs created (down from 214,987 in 2006). | | | | - Investors are also calling for innovation in education |
| - The top five countries for number of projects in | | | | and the supply chain. Alongside high technology |
| 2007 remained the same, but Central and Eastern | | | | clustering and research and development, |
| Europe countries rose quickly. | | | | respondents also seek innovation in high-performance |
| - UK, France and Germany remained first (713 | | | | communication channels (48%), and supply chains |
| projects attracted), second (541) and third (305) | | | | (27%) that will also allow them to prosper in mature |
| respectively. The UK topped the job-creation ranking | | | | economies. |
| as well. | | | | - According to investors, the improvement of |
| - The Czech Republic maintained its place, despite | | | | European innovation capacity is primarily a matter of |
| attracting 27% fewer projects. It moved from | | | | culture and education (34% each), rather than |
| fourth to third place in the job creation table despite | | | | financial and tax incentives (31%). |
| creating 14% fewer jobs than last year. | | | | |