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Vienna's Attractiveness as a Location for Business Continues to Grow

Published: April 30, 2018; 09:30 · (Vindobona)

For the sixth year in a row, Vienna recorded the highest number of companies settling in the city. After Vienna had already achieved a record figure in the previous year with 178 international new additions, this was again exceeded last year with 191 new companies, which is an increase of 13%. These business establishments together are responsible for investments totalling €537 million and 1,087 new jobs. There are 344 new foreign invested businesses throughout Austria. German companies remain the number one investors in Austria.

German companies remain the number one investors in Austria / Picture: © Wikimedia Commons / NuclearVacuum [CC BY-SA 3.0]

Vienna as a Location for Business

The number of companies included in the count varies from one authority to another, depending on the extent to which cooperations have also been included.

According to a report by the Vienna Business Agency, the number of international settlements in Vienna has risen by 73 percent since 2012.

The most frequently mentioned criteria in favour of setting up a business in Vienna are the infrastructure, the stability and the resulting predictability of planning.

Furthermore, the Vienna Business Agency states that all these business establishments together are responsible for investments totalling €537 million (+86.5 percent) and 1,087 new jobs.

List by top countries of origin:

Germany: 51 projects
Switzerland: 17 projects
China: 13 projects
Hungary: 12 projects
France: 8 projects
Italy: 8 projects
Ukraine: 8 projects
Great Britain: 7 projects
USA: 6 projects
Russia: 5 projects
Serbia: 5 projects
Slovakia: 5 projects

Austria as a Location for Business

The Federal Ministry for Digital and Economic Affairs confirms that a total of 344 foreign-funded companies have been established in Austria. This is an increase of 7.8% compared to the 319 companies in the previous year.

The Ministry via the Austrian Business Agency (ABA-Invest in Austria) confirms that stability, security, high level of CEE competence, the quality and motivation of employees as well as a prosperous market are the main reasons for locating here.

In 2017, the number of new businesses settled through the ABA increased by 7.7 percent compared to the previous year. "With a budget of 4.3 million euros, we were able to move 724 million euros in investments," reported Managing Director Rene Siegl. This is an increase of 2.6 percent compared to 2016.

The new companies created 2,672 jobs - an increase of 1.9 percent over the previous year.

There are 24 (2016: 18) start-ups, including a Syrian company called Medicus, which makes blood analyses understandable.

One third (34 percent) of the new companies came from Germany in the previous year, 8 percent each from Italy, Switzerland and Slovenia.

After all, 29 percent came from Eastern and Southeastern Europe: "The Czech Republic, Slovakia, Hungary, Russia and Slovenia have developed extraordinarily dynamically for us," says the ABA Managing Director.

German companies remain the number one investors in Austria

Germany was once again the top investor nation in Austria in 2017 with 118 companies, accounting for about one - third of all business location projects handled by ABA. 

There are already close to 9,000 German firms which actively operate in Austria, demonstrating the country's attractiveness as a business location to foreign investors.

To ensure that this remains the case in the future, it is important to strengthen our innovativeness and guarantee a sufficient number of skilled employees in the long term", says René Siegl, Managing Director of ABA - Invest in Austria.

Italy, the traditionally second most important invest or nation, was responsible for 26 business location projects, but had to share the second place ranking with two other countries.

Austria was even more attractive in 2017 for Switzerland, which also accounted for 26 projects (2016: 17).

The same applied to the 26 companies from Slovenia (2016: 16).