Foreign direct investment in Czechia: developments and trends
The Czech Republic provides an advantageous environment conducive to fostering high-value added foreign direct investments, predominantly encompass technological innovations or research and development projects across pivotal sectors including semiconductors, creative industries, healthtech, mobility, AI and digital technologies, advanced industrial sectors, ecotech, as well as space, aviaion and defense. These investments are perceived as strategic for Czechia.
In 2023, CzechInvest mediated ten new investment cases in Czechia. The investors pledged to create over four thousand new jobs and invest over EUR 740 million. The main sectors involved were electronics, electrical engineering, biotech, and medical devices. Over two-thirds of the investment cases focused on expanding existing operations in Czechia mainly in high-tech manufacturing. The majority of investment cases received investment incentives, marking a significant change compared to previous years.
Investment in individual years, 2013 - 2023 | |||
Number of projects |
Investment (EUR mil.) |
Number of jobs |
|
2013 | 112 | 1,852 | 11,204 |
2014 | 149 | 3,162 | 17,107 |
2015 | 109 | 1,667 | 15,357 |
2016 |
105 | 2,013 | 12,548 |
2017 | 109 | 2,226 | 12,921 |
2018 | 79 | 1,456 | 6,218 |
2019 | 97 | 2,177 | 7,525 |
2020 | 25 | 510 | 2,644 |
2021 | 52 | 993 | 4,101 |
2022 | 24 | 786 | 2,655 |
2023 | 10 | 734 | 4,125 |
Total | 929 | 20,488 | 96,646 |
Source: CzechInvest, 2024 |
Change in the structure investments |
1993 - 2000 Economic transition |
|
2000 - 2012 Greenfield investment in manufacturing |
|
2012 - 2018 Diversification of supportes activities |
|
2018 + Innovation |
|
Top 6 investments, 1993 - 2023 | |||
Investor | Sector | Country of origin |
Investment (EUR mil.) |
Volskwagen AG | Motor-vehicle manufacturing |
Germany |
515 |
Nemak | Motor-vehicle manufacturing |
Mexico | 319 |
Denso | Motor-vehicle manufacturing |
Japan | 281 |
Toyota/PSA | Motor-vehicle manufacturing |
Japan | 763 |
Hyundai Motor Company | Motor-vehicle manufacturing |
South Korea | 1,215 |
Nexen Tire Corporation | Rubber | South Korea | 827 |
Source: CzechInvest, 2024 |
Top 10 investment by country of origin, 1993 - 2023 | ||
Country of origin |
Number of projects |
Investment (EUR mil.) |
Germany |
430 | 8,979 |
Czechia | 484 | 6,741 |
Japan | 163 | 4,521 |
United States | 285 | 4,141 |
South Korea | 44 | 3,019 |
Austria | 81 | 2,027 |
United Kingdom | 126 | 1,757 |
France | 77 | 1,660 |
Switzerland | 80 | 1,241 |
Netherlands | 61 | 1,024 |
Total | 1,831 | 35,110 |
Source: CzechInvest, 2024 |
Top 10 investment by sector, 1993 - 2023 | ||
Sector | Number of projects |
Investment (EUR mil.) |
Motor-vehicle manufacturing (automobiles, buses, trailers) | 522 | 14,598 |
Electronics and electrical engineering | 235 | 4,941 |
Metalworking and metal-processing | 207 | 3,236 |
Paper and wood-processing | 92 | 2,772 |
Mechanical engineering | 230 | 2,779 |
Chemistry and petrochemicals | 85 | 2,447 |
Plastics | 167 | 2,145 |
Rubber industry | 34 | 1,600 |
Food Industry | 94 | 1,603 |
Non-metallic mineral products | 71 | 1,361 |
Total | 1,737 | 37,482 |
Source: CzechInvest, 2024 |