This data was collected by means of a survey — questionnaires were sent to firms — in co-operation with voivodship offices and economic sections of foreign embassies in Poland. In December 1994 the value of FDI was 4,321 million USD, rising to 6,832.2 million USD in 1995, and by December 1996 — 12,027.7 million USD. The data presented here relates to the current position of foreign investment in total, that is profits reinvested (over a period extending beyond 1996) as well as equity & loans and refers only to investments over 1 million USD.
By the end of 1997, the future investment plans of the major foreign investors had amounted to
10,777.1 million USD (compared to 7,933.3 million at the end of December 1996).
Of the investors present on the List of Major Foreign Investors at the end of 1997 the largest group were investors from Germany — 134 investors. In the next places were investors from the USA — 91, France — 51, Italy — 44, Sweden — 36, Netherlands — 34, Austria — 34, Great Britain — 26 and Denmark — 22. The lowest number of investors were from Russia, Singapore, China, Luxemburg, Slovenia, Croatia, Spain, Czech Republic and Republic of South Africa (1 investor from each).
|No.|| Country|| Equity & Loans|| Plans|| Number of Companies|
|21||Republic of South Africa||25.0||40.0||1|
|Total foreign direct investment over $ 1 mn||17,705.4||10,777.1||585|
|Estimated value of foreign direct investment less than $ 1 mn||2,882.3|
|Total FDI in Poland||20,587.7|
Germany ranks first on the List according to number of firms, but according to the volume of invested capital the USA is in first position among all investing countries. At the end of 1997 the value of investments paid up by American investors was 3,981.8 million USD, which constituted 22.5% of the total value of investments made by all foreign investors at that time. In December 1996 the value of American investments in Poland was 2,965.6 million USD (24.6%), while in December 1995 –1,698 million USD (24.9%).
German concerns were in second position. At the end of 1997, their investments were 2,104.9 million USD (in 1996 — 1,524.4 million USD, in 1995 — 683 million USD). International concerns such as Swedish-Swiss ABB, British-Dutch Unilever or EBRD were in third position — 1 654.0 million USD (at the end of 1996 and 1995 — 1 493 and 1 101 million USD respectively). In the following places were: Italy — 1,636.3 million USD, France — 1,616.4 million USD and Netherlands — 1,213.6 million USD.
On the other hand the investments of Luxemburg, Czech Republic, Greece, Spain, Slovenia were the lowest. They invested only 2.3 million USD, 2.5 million USD, 3.6 million USD, 5 million USD and 6 million USD respectively. The analysis of PAIZ data confirms the fact of concentration of capital. At the end of December 1997 69% of capital was from 5 countries: USA, Germany, Italy, France and Netherlands as well as international concerns.
By the end of 1997 European Union countries had invested 9,561.3 million USD in Poland (54% of the total investment). At the same time, Asian investors invested only 1,185.3 million USD (6.7% of the total investment).
Foreign Direct Investment — countries of origin (December 1997)
The increase in the value of FDI in Poland in 1997 was the result of both an increase in investments of firms present on the Polish market and new investors.
Among the former it is important to note the increase in the investment of Korean car producer Daewoo, which due to a further investment of about 709.9 million USD moved to second position among the major foreign investors in Poland. Italian car producer FIAT remains in first place among the major investors in Poland. Its investment increased to 1 141.9 million USD. Thus, FIAT is the first foreign investor with investment exceeding 1 billion USD.
The investment of French company France Telecom, shareholder of Centertel S.A. increased by 170 million USD. British Petroleum increased its investment by 166 million USD, German Commerzbank — by 155 million USD, American Citibank — by 150 million USD, French Lafarge — by 134.8 million USD, Norwegian Statoil — by 129 million USD, American PepsiCo — by 120 million USD.
On the other hand among those new firms which invested capital in Poland by the end of 1997 it is important to note the Austrian company Framondi with investments of 175 million USD. Framondi bought 65% shares in the paper plant — Zakłady Celulozy i Papieru "Celuloza" S.A. The Croat firm Pliva d.d. bought 70% shares in the pharmaceutical plant Polfa — Kraków. Central European Media from USA invested 85 million USD in the creation of the television channel — TVN. Electricite de France Internationale bought 55% of shares in power plant — Elektrociepłownia Kraków S.A. and French Canal Plus invested 70 million USD in its television channel in Poland.
At the end of 1997, the majority of foreign capital was invested in manufacturing — 11,042 million USD The most attractive sectors for foreign investors as regards manufacturing were food products, beverages and tobacco products manufacturing (3,276.9 million USD), transport equipment manufacturing (2,510.5 million USD) and pulp, paper and paper products manufacturing, publishing and printing (1,158.4 million USD). Foreign companies are also interested in investing in chemicals and chemical product manufacturing (1,087.4 million USD). other non-metalic mineral products manufacturing (971.4 million USD) and electrical and optical equipment production (664.4 million USD).
The second most significant branch as regards foreign capital inflow was financial intermediation, up to the end of 1997 foreign companies invested 3,130.4 million USD in this section. Other branches attracting capital were: wholesale and retail trade and repairs (1,408.5 million USD), transport and communication (743.5 million USD), and construction (554.9 million USD). The lowest amount of investment was attracted by primary industries like agriculture (15 million USD), and mining and quarrying (16.2 million USD).
Branch Structure of foreign investment in Poland (December 1997)
|BRANCH OF ACTIVITY according to European Activity Classification||Equity & Loans by 20.12.1997 $ mn||Investment plans $ mn|
|- food products, beverages and tobacco products||3,276.9||1,109.4|
|- transport equipment||2,510.5||1,969.5|
|- pulp, paper and paper products, publishing and printing||1,158.4||293.3|
|- chemicals, chemical products||1,087.4||518.0|
|- other non-metalic mineral products||971.4||864.5|
|- electrical and optical equipment||664.4||260.8|
|- basic matals and metal products||375.3||184.3|
|Wholesale and retail trade, repairs||1,408.5||2,033.8|
|Transport and communication||743.5||299.4|
|Other services: communal, social and individual||354.6||232.0|
|Hotels and restaurants||305.5||431.0|
|Electricity, gas and water supply||96.5||1,040.0|
|Real estate, renting and business activities||38.3||24.5|
|Mining and quarrying||16.2||0.0|
|Total foreign direct investment over $ 1 mn||17,705.4||10,777.1|
|Estimated value of foreign direct investment less than $ 1 mn||2,882.3|| |
|Total FDI in Poland||20,587.7|
Prepared by Research Department
Przygotowano: Departament Badań PAIZ, Warszawa, luty 1998
PAIZ, Aleja Róż 2, 00–559 Warszawa
tel.: (48 22) 621 62 61, 621 89 04, 629 57 17, 622 61 47, 621 06 23
fax: (48 22) 621 84 27, comertel: (48) 3912–0444