info@gurcanpartners.com
Gurcan Partners Law FirmGurcan Partners Law FirmGurcan Partners Law FirmGurcan Partners Law Firm
  • Home
  • About Us
    • About Gurcan Partners
    • Offices
      • Hungary
      • Germany
      • Turkey
      • Czech Republic
      • Poland
      • Serbia
      • Estonia
      • UAE
      • United States
      • Kuwait /Mena Region
    • Our Team
    • Our Experiences
    • News
    • Career
  • Practice Areas
    • Blockchain Law
    • Business Immigration
    • Corporate Law
    • Immigration Law
    • Intellectual Property Law
    • Mergers & Acquisitions
    • International Incorporation
    • International Tax Consultation
    • IT Law
    • Real Estate Law
  • Blog
  • Gurcan Invest
  • Gurcan Consultancy
  • Contact Us
  • EnglishEnglish
    • EnglishEnglish
    • DeutschDeutsch
    • TürkçeTürkçe
    • MagyarMagyar
    • РусскийРусский
    • FrançaisFrançais
    • 中文 (中国)中文 (中国)
    • PolskiPolski
    • ČeštinaČeština
Asian FDI in Europe

In this article, we’ll talk about the Asian Outbound FDI in Europe, detailing the most attractive industries and countries to invest in. What are the top sectors in the EU to invest in now?

China's FDI Policies in Europe

There are a few relevant policies investors should consider regarding FDI in Europe:

  • The 14th five-year plan: China targets to boost innovation and be at the frontier of the global technology and science industry. The main focus is to strengthen the engagement of China’s tech enterprises in the global supply chain
  • Belt & Road: The B&R initiative is China’s core global infrastructure development strategy to encourage development collaborations. Member countries in Europe including Czech Republic, Estonia, Hungary, Poland, Romania, and other central European countries.
  • Comprehensive Agreement on Investment: The Agreement, originally drafted to promote trade deals between China and Europe, has been suspended due to geopolitical reasons, which may impact investments prospects for Asian investments in Europe.

What are the top industries to invest in Europe?

1) TMT (Technology, Media, Telecom) and digital technologies

The TMT and digital tech sectors are highly favored in recent years as a result of the world’s increased reliance on high tech and the internet, especially post COVID. While technologies in Europe are relatively mature, Asian tech companies are rapidly growing and expanding. Mass digitalization is in progress; thus, these sectors may be ideal for Asian investors.

  • Turkey: Turkey’s digitalization and technology industry have been growing at a fast pace with promising progress, its E-commerce penetration and gaming start-ups have also greatly grown. Recently, Trendyol (E-commerce start-up) has become Turkey’s most valuable company ($16.5bn valuations) (2021, Daily Sabah). Since the digital sector in Turkey is a young industry, there is plenty of room for growth and investment.
  • Czech Republic, Hungary, and Serbia’s tech industries are also growing very fast (2020, Financial Times).
  • Germany: Though traditionally Germany had been a popular investment destination, many high-tech sectors were newly added to the Foreign Trade and Payments Ordinance in May 2021. This signals increasing scrutiny over foreign investment in technologies in Germany, showing a tougher prospect for investors.

2) Life Sciences, Medical &Pharmaceutical

Similarly, the pandemic has triggered a higher global demand and a bigger focus on life sciences and healthcare. Firstly, despite COVID, the living standard and life expectancy of the global population is increasing; secondly, life sciences and biological technologies are highly developed in Europe, therefore this could also be an ideal sector to invest in.

  • Hungary: Hungary has been well-known for its advanced medical and pharmaceutical expertise in central Europe, with its heavy investment in medical R&D, cost-efficient and professional labor workforce, and a solid infrastructure base for medical supplies production. Hungary attracts many big biotech companies: BD (U.S.A), B.Braun(Germany), and Hoya (Japan), and many other multinational biotech companies have had successful returns from their investment in Hungary.
  • Netherlands, UK, Spain are also FDI hotspots for life sciences and medical supplies for their consistent expertise; however, costs in these countries tend to be more expensive than in central European countries.

 

 Gurcan Partners  is a Law and the Consulting firm. Our professional team can assist you at all steps of incorporation and investment process in Europe.

3) Advanced Manufactures & infrastructure

Manufacturing and infrastructure are among the top sectors of Asia’s FDI outflow. Currently, an increased focus on green production has been set as a goal by countries around the world, with a promising prospect.

  • Serbia: Manufacturing is a key sector in Serbia where most of its FDIs flow into. As a result, employment in this sector has grown by 50% over the past two years. Firstly, Serbia has a young and cost-effective workforce which is advantageous for innovation and productivity. Secondly, its technological stability ensures a good manufacturing capability. Green energy and sustainability are also at the core of Serbia’s development plan, echoing with the global ESG focus and China’s ambition on infrastructure.

Conclusion - Outbound FDI from Asia to Europe

As for now, TMT and technology, life sciences and biotech, advanced manufacturing appear to be relatively suitable for investment, with European emerging countries such as Turkey, Hungary, and Serbia being good destinations. These countries have reasonable tax rates (see our articles: Company Taxation in Hungary, Taxation in Turkey, Company Taxation in Serbia), labor costs, and stable technology capabilities, and can be a starting point for Asian investors interested in the rest of the European market by virtue of their geographical locations.

In the short term, there seem to be some hurdles and tighter compliance issues on foreign investment in European companies. However, outbound investment from Asia is rapidly growing and encouraged. In the long term, since the European and Asian economies are complementary to each other, there could be more opportunities for investment.

DEIK, AMCHAM, ICC, AHK

Gurcan Partners is a Foreign Economic Relations Board, Hungary Business Council, Association of German Chambers of Industry and Commerce, and International Chamber of Commerce member international law and consultancy firm.

All rights reserved. All rights of Asian FDI in Europe article belong to Gurcan Partners. The author has no responsibility for the information in this article. This article is prepared just to inform.

Pingyao Zhu

Gurcan Partners Budapest Office

Address :

Westend Business Centre, 7th Floor, Váci út 22-24, 1132 Budapest /Hungary

@: info@gurcanpartners.com

Phone: +48  22 153 03 60 (English)

Gurcan Partners logo

Check out Gurcan Journal for more articles in 13 languages

  • What You Need To Know About Crypto Licenses In Dubai
    What You Need To Know About Crypto Licenses In Dubai

    18 May 2022 | English,General,UAE

  • Free Trade Zones in the Czech Republic
    Free Trade Zones in the Czech Republic

    18 April 2022 | Czech Republic,English,General

  • Letter of Credit
    Letter of Credit

    3 March 2022 | Europe,General

  • Business Immigration to Poland
    Business Immigration to Poland

    21 October 2021 | English,General,Poland

  • branch office registration in serbia
    Branch Office Registration in Serbia

    15 October 2021 | English,General,Serbia

  • Legal Aspects of NFTs
    Legal Aspects of NFTs

    23 September 2021 | Blockchain Law Lab,English,General

  • Latest cryptocurrency regulations in Hungary
    Latest cryptocurrency regulations in Hungary

    7 July 2021 | Blockchain Law Lab,English,General,Hungary

  • cryptocurrency regulations in serbia
    Cryptocurrency Regulations in Serbia

    17 June 2021 | Blockchain Law Lab,English,General,Serbia

  • taxation in the Czech republic
    Taxation in the Czech Republic

    28 May 2021 | Czech Republic,English,General

  • Belgrade, Serbia, Beneficial Ownership in Serbia
    Beneficial Ownership in Serbia

    23 May 2021 | English,General,Serbia

  • invest in czech republic, prague
    Invest in Czech Republic

    21 April 2021 | Czech Republic,English,General

  • invest in germany, berlin, bridge, german flag
    Invest in Germany

    15 April 2021 | English,General,Germany

  • Residency Application in Turkey
    Residency Application in Turkey

    26 February 2021 | English,General,Turkey

  • Company foundation in North-Rhine-Westphalia
    Company Foundation in North-Rhine-Westphalia (NRW)

    26 February 2021 | English,General,Germany

  • property purchase in poland
    Property Purchase in Poland

    20 February 2021 | English,General,Poland

  • Bankruptcy in Germany
    Bankruptcy in Germany

    7 December 2020 | General,Germany

  • Purchasing property in Serbia
    Purchasing Property in Serbia

    17 September 2020 | English,General,Serbia

  • Cryptocurrency Regulations in Hungary
    Cryptocurrency Regulations in Hungary

    14 September 2020 | English,General,Hungary

  • Real Estate Investment in Hungary
    Real Estate Investment in Hungary

    7 September 2020 | English,General,Hungary

  • Starting a Business in Hungary
    Starting a Business in Hungary

    27 August 2020 | English,General,Hungary

  • Company Registration in Germany
    Company Registration in Germany

    14 August 2020 | English,General,Germany

  • Company Registration in the Czech Republic
    Company Registration in the Czech Republic

    2 August 2020 | Czech Republic,English,General

  • Germany Skilled Immigration
    Immigration of Skilled Workers to Germany

    3 June 2020 | English,General,Germany

  • Mergers and Acquisition in Czech Republic
    Mergers and Acquisition in Czech Republic

    19 May 2020 | Czech Republic,English,General

  • Doing Business in Czech Republic
    Doing Business in the Czech Republic

    13 May 2020 | Czech Republic,English,General

  • Debt Collection in Hungary
    Debt Collection in Hungary

    13 May 2020 | English,General,Hungary

  • Real Estate Investments in Germany
    Real Estate Investments in Germany

    21 April 2020 | General,Germany

  • Coronavirus Hotlines
    Coronavirus Hotlines

    26 March 2020 | Coronavirus,English,General

  • Current Covid Situation in Germany
    Current Covid Situation in Germany

    20 March 2020 | Coronavirus,General,Germany

  • Potential legal impacts of Coronavirus on companies.
    Legal Impacts of Coronavirus on Companies

    20 March 2020 | English,General

References

UNCTAD, 2021. World Investment Report 2021. 

Schedule an initial online consultation

Schedule Now

Contact Us

    Leave a Comment

    Cancel reply

    Your email address will not be published. Required fields are marked *

    • You may also like

      How To Buy Cryptocurrency As A Company In Europe

      Read now
    • You may also like

      Letter of Credit

      Read now
    • You may also like

      Advantages Of Opening A Company In Europe

      Read now
    • You may also like

      AML and KYC Regulations in EU

      Read now
    • You may also like

      Anti-Money Laundering

      Read now
    Copyright 2022Gurcan Partners | All Rights Reserved
    • Home
    • About Us
      • About Gurcan Partners
      • Offices
        • Hungary
        • Germany
        • Turkey
        • Czech Republic
        • Poland
        • Serbia
        • Estonia
        • UAE
        • United States
        • Kuwait /Mena Region
      • Our Team
      • Our Experiences
      • News
      • Career
    • Practice Areas
      • Blockchain Law
      • Business Immigration
      • Corporate Law
      • Immigration Law
      • Intellectual Property Law
      • Mergers & Acquisitions
      • International Incorporation
      • International Tax Consultation
      • IT Law
      • Real Estate Law
    • Blog
    • Gurcan Invest
    • Gurcan Consultancy
    • Contact Us
    • EnglishEnglish
      • EnglishEnglish
      • DeutschDeutsch
      • TürkçeTürkçe
      • MagyarMagyar
      • РусскийРусский
      • FrançaisFrançais
      • 中文 (中国)中文 (中国)
      • PolskiPolski
      • ČeštinaČeština
    Gurcan Partners Law Firm
    We use cookies to provide you better service.
    This website uses cookies to improve your experience. You can opt-out if you wish your preferences.Accept Read More
    Privacy & Cookies Policy

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
    Necessary
    Always Enabled
    Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
    Non-necessary
    Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
    SAVE & ACCEPT