FDI in Austria

Overview by Globlatrade.net:

FDI in Figures

With the country being located at the crossroad of East and Western Europe, direct foreign investment has always been important because of Austria's geographic location. After an economic slowdown due to the global crisis, the trend has once again been upward. Austria's strengths are its political stability, its location at the centre of Europe and a skilled work force.

Foreign Direct Investment 200720082009
FDI Inward Flow (million USD) 31,15411,2727,051
FDI Stock (million USD) 162,649158,654168,550
Performance Index*, Ranking on 141 Economies 359182
Potential Index**, Ranking on 141 Economies 2826-
Number of Greenfield Investments*** 10911173
FDI Inwards (in % of GFCF****) 38.512.526.1
FDI Stock (in % of GDP) 43.938.443.8

Source: UNCTAD

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.


FDI Inflows By Countries and Industry

Main Investing Countries 2009, in %
Germany 31.1
Italy 24.9
United States 11.9
Switzerland 6.3
Netherlands 5.7
Countries of the Persian Gulf 4.0
France 3.4
Main Invested Sectors 2009, in %
Real estate, renting and business activities 64.5
Trade and maintenance 16.4
Manufacturing 11.4
Financial intermediaries 4.2
Transport, storage, communication 1.8

Source: OECD. Stat Extracts

Form of Company Preferred By Foreign Investors
Gesellschaft mit beschraenkter Haftung (GmbH Limited Lliability Company)
Main Foreign Companies
Boeing, BAE Systems, Toyota, General Motors, Ford, Mitsubishi, BASF, DuPont, McLanahan, Siemens, etc.
Sources of Statistics
Statistics Austria

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Why You Should Choose to Invest in Austria

Strong Points
Well developed infrastructures, a skilled and competent work force and high productivity are the country’s strong points. Austria has the headquarters of many firms and ranks 27th out of 181 economies with regard to ease of doing business. Austria also has a significant assemblage of pharmaceutical companies based in the country, thus developing a focus of biotechnological skills and attracting the big companies of this sector.
Weak Points
Austria’s weak points:
- Rigid labor practice;
- Lack of risk capital financing;
- restrictive migration laws;
- Strong dependance to Central and Eastern Europe where numerous investments have taken place (risky in case of a crisis in one of these countries);
- the restrictions of its internal market.
Government Measures to Motivate or Restrict FDI
Export incentives, political stability and low telecommunication costs make the Austrian business climate favorable. Another attractive factor is the fact that Austria has the most attactive taxation system in Europe and does not have a wealth tax or professional tax. Regional investment subsidies, tax exemptions on training (20%) and a training bonus for apprentices guarantees the country's appeal.
To mitigate the effects of the crisis, Austria has implemented mesures to reinforce the liquidity and the capitalization of the financial system.

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