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.

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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

  • Privatisation of large Czech companies
  • Incentives only for major foreign direct investments in manufacturing

2000 - 2012

Greenfield investment in manufacturing

  • Large foreign direct investment
  • Peak of newly created jobs
  • Establishment of supplier base for Western European markets

2012 - 2018

Diversification of supportes activities

  • Investment incentives for technology centres, high-tech repair centres, software development, data centres etc.
  • Technology interchange

2018 +

Innovation

  • Higher-value-added foreign direct investments
  • Encouragement of investment in KETs
  • Advancement of Czech suppliers into gloval value chains
  • Start-up accelerators and incubators

 

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