Foreign direct investment in Czechia: developments and trends

Czechia offers an excellent environment to support investments with higher value added, i.e. investments that are technologically oriented or related to research and development, sometimes also referred to as high-tech investments, in key sectors (creative industries, healthtech, mobility, AI and digital, advanced industrial technologies, ecotech, space, aerospace and defence)). In 2022, more than two-thirds of arranged investments involved expansions of the operations of companies already established in Czechia.

The change in the structure of foreign direct investment in the past ten years indicates a new trend in Czechia. The number of projects in the fields of research and development, technology centres and business support services is rapidly increasing. Other trends in the area of investment include autonomous driving, electromobility, virtual and augmented reality, cybersecurity, artificial intelligence and advanced materials.

Selected key investors in the Czechia by industrial sector
Sector Investor
(country/region of origin)
Sector Investor
(country/region of origin)
Aerospace

GE Aviation materials (US)

High-tech
mechanical
engineering
Bombardier (CA)
Honeywell Aerospace (US) Daikin (JP)
Latecoere (FR) Edwards (UK)
Bell Helicopters (US) Ingersoll Rand (US)
UGMK (RU) Siemens (DE)
Automotive Hyundai (KR) Information and
communication
technologies
Microsoft (US)
Nexen Tire (KR) Oracle (US)
Robert Bosch (DE) Red Hat (US)
Toyota/Groupe PSA (JP/FR) Solarwinds (US)
Volskwagen (DE) Tieto (FI)
Business
support
services
Accenture (US) Life sciences Lonza (CH)
DHL (DE) MSD (US)
Anheuser-Busch InBev (BEL/US) Otsuka Pharmaceutical (JP)
Infosys (IN) Synthon (NL)
SAP (DE) Teva Pharmaceutical Industries (IL)
Electrical
engineering
and electronic
ABB (CH)

Nanotechnologies
and advanced
materials

AGC (JP)
ThermoFisher Scientific (US) Thermofisher Scientific (US)
Foxconn (TW) Fibertex Nonwovens (DK)
On Semiconductor (US) Saint-Gobain (FR)
Panasonic (JP) Toray Industries (JP)
Source: CzechInvest, 2021

Investment in individual years, 2012 - 2022
  Number
of projects
Investment
(EUR mil.)
Number
of jobs
2012 81 970 8,530
2013 108 2,296 10,412
2014 147 4,144 16,842
2015 106 1,720 14,040

2016

101 2,405 12,102
2017 106 2,622 12,116
2018 82 1,587 6,146
2019 94 2,241 6,948
2020 27 622 2,734
2021 53 1,105 4,121
2022 24 776 2,655
Total 929 20,488 96,646
Source: CzechInvest, 2021
 

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 - 2020
Investor Sector Country 
of origin
Investment 
(EUR mil.)
Volskwagen Motor-vehicle
manufacturing

Germany

739
Nemak Motor-vehicle
manufacturing
Mexico 443
Denso Motor-vehicle
manufacturing
Japan 373
Toyota/PSA Motor-vehicle
manufacturing
Japan 915
Hyundai Motor Company Motor-vehicle
manufacturing
South Korea 1,341
Nexen Tire Corporation Rubber South Korea 887
Source: CzechInvest, 2021

Top 10 investment by country of origin, 2010 - 2022
Country
of origin
Number
of projects
Investment 
(EUR mil.)

Czechia

282 4,897
Germany 185 4,379
United States 124 2,203
Netherlands 43 1,648
South Korea 19 1,459
Japan 59 1,421
Austria 37 1,351
Switzerland 45 613
France 31 511
China 22 479
Total 775 18,961
Source: CzechInvest, 2023

Top 10 investment by sector, 2010 - 2022
 Sector Number
of projects
Investment
(EUR mil.)
Motor-vehicle manufacturing (automobiles, buses, trailers) 252 6,541
Metalworking and metal-processing 123 2,314
Paper and wood-processing 43 2,097
Advanced Engineering 104 1,554
Rubber 17 1,432
Plastics 73 1,317
Electrical devices (batteries, generators, cables, appliances) 42 1,122
Food industry  50 1,042
Miscellaneous 50 941
Electronics (computers, 
optical instruments, electronics)
32 868
Total 786 19,228
Source: CzechInvest, 2023