18
INVEST IN ITALY Milano 05.07.2017
INVEST IN ITALY Milano 05.07.2017
FDI 2014 - 2015
Directorate General for Country Promotion – Division III FDI
FDI 2014 - 2015
IDE’s stock / GDP UNCTAD, World Investment Report 2016
Directorate General for Country Promotion – Division III FDI
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Direzione Generale Sistema Paese – Uff. III Attrazione Investimenti Esteri
Potential positive impact of FDI
• Capital and investment
• Technology transfer
• Skills upgrading
• Employment
• Linkages
• Exports
• Access to foreign
markets or supplies
• Creation of new
economic activities
(especially in
greenfield)
• Fiscal revenue (taxes)
Directorate General for Country Promotion – Division III FDI
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Direzione Generale Sistema Paese – Uff. III Attrazione Investimenti Esteri
4,6% 4,7%
1,7%
7,0% 6,4%
14,7%
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
14,0%
16,0%
Average AnnualRevenue
Average Profit Productivity
non-target
target
KPMG
2011-2014
Directorate General for Country Promotion – Division III FDI
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Direzione Generale Sistema Paese – Uff. III Attrazione Investimenti Esteri Directorate General for Country Promotion – Division III FDI
China is one of the big investors in the World: 200 billion dollars all over the World, 35 billion dollars in Europe in 2015
Italy is an important target for China
Main Chinese investment in Italy: • Financial investment of State Administration for Foreign Exchange – SAFE (2%) in big
Italian companies: ENI, ENEL, PRYSMIAN, FCA, TELECOM, GENERALI, SAIPEM; INTESA SAN PAOLO, UNICREDIT, Monte dei Paschi di Siena, Mediobanca
• Minority strategic investment by State Owned Enterprises (in CDP Reti - SNAM e Terna, Ansaldo Energia and F2i Fund)
• Acquisition of big and medium Italian companies: ChemChina in Pirelli, Zoomlion in Cifa, Weichai in Ferretti, Bright Foods in Salov e SMIC in Lfoundry
• Acquisition of small but specialized companies: mechanics, faschion, etc. • Quality greenfield investment: Huawei at Segrate and some design car centers in
Torino • Football teams.
Financial liquidity Big Groups Access to Chinese Market
Production in Italy Research and Development in Italy
Directorate General for Country Promotion – Division III FDI
Chinese Investment in Italy
WHY INVEST IN ITALY? ACCESS TO MARKET • 60 mil. consumers with a per capita GDP (PPP) of 36,300 USD • 500 mil. in the European Union • 270 mil. in the Mediterranean area (N. Africa and the Middle East)
BUSINESS • 2nd largest manufacturer in Europe (8th in the world) • «Made in Italy» (4F: Fabricated metal products, machinery & automation,
Fashion & design, Furniture, Food industry) • Trade surplus is the 5th amongst G 20 countries • SMEs: high quality, customized products
SKILLS • Italy ranks 8th overall for scientific publications • High skilled work force at competitive cost • R&D integrated into industrial processes QUALITY OF LIFE • 1st worldwide for UNESCO World Heritage • Healthiest country on earth (Bloomberg 2017) • 5th among the world’s top touristic destinations (Untwo 2017)
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Direzione Generale Sistema Paese – Uff. III Attrazione Investimenti Esteri
WHY NOW? Reform strategy
New Governance
CDP - Group
Access - VISA
Industry 4.0 Taxation
Justice
Jobs Act
Jobs Act A simpler, more stable more flexible labour market
A new employment contract with increasing protection depending upon employee seniority
Directorate General for Country Promotion – Division III FDI
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Direzione Generale Sistema Paese – Uff. III Attrazione Investimenti Esteri
Corporate tax rate reduced to 24% (lower in some cases) 140% super depreciation for investments in new capital goods 250% hyper depreciation for high-tech machinery and equipment (Industry 4.0) Individual taxation tailored to attract human capital
Taxation
Directorate General for Country Promotion – Division III FDI
Advance Tax Ruling on
new investments
Foreign investors Italy's Authority provides comprehensive consultative input about new investments
30 million Foreign investors: €30 million minimum investment in order to obtain consultation
Directorate General for Country Promotion – Division III FDI
Ricerca KPMG
Direzione Generale Sistema Paese – Uff. III Attrazione Investimenti Esteri
New Governance
• Ministry of Economic Development • Ministry of Foreign Affairs and International Cooperation • Ministry of Economy • Ministry of Public Administration • Committee of Regions • Others
Inter-ministerial Committee for FDI
Directorate General for Country Promotion – Division III FDI
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Direzione Generale Sistema Paese – Uff. III Attrazione Investimenti Esteri
160 Embassies, 80 Consulates, 79 ITA Offices +
9 FDI Desks (Italian Trade Agency)
Directorate General for Country Promotion – Division III FDI
MAECI for FDI
Ambassadors and Consuls first contact point for institutional investors and big private investors
New Division at Directorate General for Country Promotion
Visa Policy
Directorate General for Country Promotion – Division III FDI
Visa Policy
Business Visa issued in 72 hours Start Up Visa Investor Visa
Directorate General for Country Promotion – Division III FDI
Someone already noticed
FDI Confidex INDEX: Italy ranks 13th overall in 2017 (16th in
2016) + 20 "Digital Tax Index 2017: Locational Tax Attractiveness for Digital Business Models"
+ 62 % EY Attractiveness Survey (2° best performance after Sweden)
Directorate General for Country Promotion – Division III FDI
Thank You!
Francesco Varriale
Head of Division III – Foreign Direct Investment Directorate General For Country Promotion
