Why do international companies invest in Poland?
According to AmCham’s report published in December 2021, in 2010-2018, the value of assets held by companies with foreign capital operating in Poland increased by 70%, reaching 415 billion USD. The main foreign players on the Polish market are Germany, the United States, the United Kingdom and France. Together, companies from these markets represent almost half (48%) of foreign assets in Poland[1]. However, you may be wondering – is Poland really a good place to invest? The answer is yes, and we’re going to show you why.
In their extensive report, the American Chamber of Commerce explains that the total value of the foreign direct investment in Poland in 2019 was equivalent to 40% of Polish GDP. It’s a percentage that’s close to the average for developed economies:
Image source: https://amcham.pl/sites/default/files/content-files/AmCham_IGCC%20Foreign%20Direct%20Investment%20in%20Poland_F.pdf
According to another source provided by SantanderTrade.com, FDI (foreign direct investment) inflows to Poland remained stable in 2019 at slightly over 13 billion USD. On the other hand, the total stocks of investments in Poland stood at 236.5 billion USD in 2019. As a result, we can say that Poland is the largest recipient of foreign direct investment inflows in Central Europe[2].
As you can see, the Polish market continually attracts foreign capital and assets. This raises the question – why? Are there any substantial reasons why Poland would be a good business destination? Well, there are a few, and we want to present them in this article. Who knows, maybe you will decide to invest in this beautiful country as well?
Low labour costs
For starters, you have to know that Polish companies can provide high-quality production at low costs, especially compared to Western European countries. That’s because salaries and labour costs in Poland are lower than in Western Europe, making our country highly competitive for foreign investors.
According to Statista.com[3], the hourly labour cost in Poland in 2020 was slightly over 13 USD. That’s well below the European Union’s average (almost 34 USD), and below the rates of all Western European countries as well. For example, take a look at hourly costs in:
- The United Kingdom: 33.8 USD
- Germany: 43.4 USD
- France: 44.5 USD
- Denmark: 54.3 USD
Shortly put, you can produce much more in Poland than in other European countries for the same amount of money. This means that you can easily increase the profitability of your business or the production process.
Motivated and skilled employees
Thanks to the inflow of foreign investments in Poland, Polish employees have experience in diverse sectors and business branches and are skilful at using modern technology and know-how in executing various operations. We are keen to implement new, innovative solutions and are open to improving our work. Moreover, Poles have a top-notch work ethic, great work organisation and a prevalent can-do attitude. This makes us the perfect business partner in all of your endeavours, including language projects! 🙂
As the OECD illustrates[4], we are one of the busiest nations in Europe, too. In 2020, the average number of hours spent at work in Poland was 1766. That’s more than the OECD average (1687) and far more than in Germany (1332):
You can definitely count on a motivated and hard-working workforce in Poland!
Educated workforce: Higher education and languages
Poles are not just hard-working and motivated. They are educated as well. In 2019, the OECD published the Education at a Glance report, which stated: “Seven out of ten tertiary-educated adults have a master’s degree in Poland compared to three in ten on average across OECD countries.”[5] In 2021, 42.5% of Poles aged 25 to 34 have higher education, which also puts us above the European average (around 35%)[6].
And what about languages? Without a doubt, language is a critical element of business communication. As experience shows, it is essential that both parties talk fluently in a language that’s understandable for each person involved in the conversation. The most popular foreign language in Poland is obviously English. In the EF English Proficiency Index 2021, Poland was ranked #16 among 100 countries and regions. That result gives us the “High proficiency” level of English knowledge with an EF EPI score of 596. For comparison, the Netherlands (which were ranked #1) got an EF EPI score of 652.
Communication
Although it cannot be measured in any particular way, it is important to look for business partners who work and communicate similarly. People and companies coming from different cultures and environments frequently do not have common experiences or points of view, which may adversely affect future cooperation.
In Poland, you will find a business culture that’s consistent with other European countries. Poles and other European nations share the same values, way of working and used solutions. This significantly streamlines the communication and enables both parties to understand each other and find common ground quickly and easily.
Should you invest in Poland? Yes!
Lastly, we want to mention some other aspects of investing in Poland, which also have a vital impact on the success of your project. First off, take a look at the map. Poland is located in the very centre of Europe, so you can benefit from close proximity to Scandinavian and Western European markets. And thanks to the lack of customs and borders within the EU, Polish companies can ensure quick order processing and attractive transport rates. Furthermore, Poland is a member of the European Union, which means that our legal system has to be compliant with the EU legislation.
All in all – Poland is a great place for your business, no matter what you do, sell or produce. And remember: If you’re thinking about investing here, you’ll need a trusted language partner that will help translate all of your documents and marketing materials. The Aploq’s team is at your service! We are an experienced LSP (language service provider) specialising in the Polish language. All of our translators and interpreters are Polish native speakers. With our help, you will ensure the success of your endeavours in Poland.
[1] https://amcham.pl/sites/default/files/content-files/AmCham_IGCC%20Foreign%20Direct%20Investment%20in%20Poland_F.pdf
[2] https://santandertrade.com/en/portal/establish-overseas/poland/foreign-investment
[3] https://www.statista.com/statistics/1211601/hourly-labor-cost-in-europe/
[4] https://data.oecd.org/emp/hours-worked.htm
[5] https://www.oecd.org/education/education-at-a-glance/EAG2019_CN_POL.pdf
[6] https://www.bankier.pl/wiadomosc/Wyksztalcenie-wyzsze-w-2020-r-Polska-w-polowie-europejskiej-stawki-8142230.html
