PAIH: BOOSTING POLAND’S ECONOMY

WBJ: Last year, FDI in Poland, which benefited from government incentives, hit a record high of about €3.5 billion. Does all FDI go through PAIH? How do PAIH-generated investments compare against total FDI in Poland?

Krzysztof Drynda: As PAIH, we support projects of key importance for the Polish economy. Our goal is to increase the inflow of FDIs to our country. Of course, not all of them go through PAIH, but we are very active in this field, supporting the most important ones. Last year, was a record year for us, foreign companies invested over €3.5 billion with the agency's support, which turned into the creation of nearly 18,000 jobs.

It is also worth noting that we do not fully supervise all projects. There are those in which we are involved from the beginning to the very end. Sometimes, however, we only participate in specific stages of the investment project, such as in the case of state aid or location consulting.

What is PAIH's main role?

The PAIH is an advisory institution operating in cooperation with the Polish Development Fund Group (PFR), under the leadership of the ministry of development and technology. We are the first point of contact for both exporters and investors. We operate in two ways, and our goal is to increase the inflow of foreign direct investments to the country and to increase the range and dynamics of the internationalization of Polish companies. We operate both in Poland and through a network of PAIH offices around the world. We promote the Polish economy: domestic products, services and technological solutions which are "made in Poland." We offer quick access to comprehensive information on the economic and legal environment of the business projects. We also help in overcoming administrative procedures for specific projects, developing legal solutions, finding suitable locations as well as reliable partners and suppliers.

What countries or projects are key for PAIH?

We do not focus on specific regions or sectors. We operate in two ways, promoting Poland as an investment region and Polish companies wishing to develop internationally. When it comes to investments, the largest number of projects that we are working on currently are from Belarus. This is undoubtedly due to our program called “Poland.Business Harbour,” which enables IT specialists, start-ups and small, medium and large companies from Belarus to relocate seamlessly to the territory of Poland. After the program's enormous success, we extended it last year to other countries: Armenia, Georgia, Moldova, Russia and Ukraine, and recently, also to Azerbaijan. Investments in CEE are in line with Polish foreign policy. Thanks to them, Poland has a chance to lead the region, positively influencing its neighbors and supporting their economic development, especially in the field of new technologies.

Historically, most projects came from the US and Germany, but recently we have seen an increase in Asian investments, especially thanks to the development of Poland’s electromobility sector. In 2021, South Korea was the largest investor in terms of financial outlays, investing €1.9 billion in our country and creating 1,967 jobs. The next spots were taken by the US, with projects worth €363.91 million, and Germany, with an amount of €155 million. Most of the projects were in the BSS, R&D, electromobility, electronic automotive, construction materials and chemical sectors.

The same is true for exports. Every time, we carefully analyze the export potential of a given company, helping to choose its optimal expansion path abroad. We offer our support to all companies, regardless of the industry they operate in. However, it is natural, that we tend to focus on those sectors that are a particular Polish export specialty. For example, such sectors are BSS, automotive, gaming and aviation, wherein as many as five of the largest manufacturers of aircraft engines in the world have located their production in Poland.

What sectors are developing fastest in Poland?

Among the sectors currently characterized by the greatest potential are — apart from the service sector — industries related to energy, electromobility and automotive. For several years, we have been seeing an increase in the interest of foreign investors from these industries. We must not forget about the IT sector, which year to year continues to grow dynamically.

How does Poland compare to competing countries in terms of investments?

The development and promotion of investments, entrepreneurship and business are at the heart of PAIH's operations. In 2021 alone, we supported 98 investment projects worth over €3.5 billion, which contributed to the creation of nearly 18,000 jobs. This is in line with what was observed by UNCTAD, which reported that FDI flows increased by as much as 77% in 2021 after a disastrous 2020. Our goal, which we are consistently pursuing, is to increase the inflow of foreign investment. We want Poland to become the investment center of our region and an example for other countries in CEE. I am all the more proud that last year was a record-breaking one in this respect. However, we are not slowing down and I hope that soon we will be able to announce further successes, effectively supporting the development of the Polish economy.

What are your targets for 2022?

Despite the growing competition in terms of obtaining investments, we are optimistic about the future. I am convinced that at the end of the year we will be able to announce another record in terms of FDI. 2022 still carries the risk of uncertainty. Last year, supply chains that had not yet been rebuilt led to a crisis in the automotive industry. Therefore, our goal is to continue to actively promote Poland in the international arena. We want to present our country as the one taking over the role of the production center of Europe. We will also continue our efforts to attract high-quality investments from the most promising countries, such as South Korea, Japan and the US. What distinguishes us from other countries is our primarily young, well-educated people. We have outstanding specialists, which will certainly help us to attract investors from the industries of the future: electromobility, electronics and IT, which we will be focusing on in 2022.

Are there some specific areas in Poland — geographically and services — that you focus on?

Each region is equally important to us, both in terms of exports and investments. We do not focus on any of them, but there are differences in the interests of investors. In 2021, the greatest number of investment projects was attracted by the Mazowieckie region, where 27 projects are being implemented, Dolnośląskie with 15 initiatives, and Małopolskie and Śląskie — 10 projects each. When it comes to the value of investments, the Śląskie region is the undisputed leader, which is mainly due to, the high industrialization of the region. As for industries, as I have already mentioned, we primarily want to strengthen our presence in the sectors of the future.

Is PAIH also involved in helping Polish companies expand and invest abroad?

We are committed to promoting Poland and the Polish economy. We strive to increase the awareness of Polish brands on international markets. We promote domestic products and services. We help entrepreneurs choose their optimal path for foreign expansion and support them at every stage of entering a new market — from an in-depth analysis of export potential, through to the development of a detailed expansion strategy on selected markets and the development of lists of potential business partners, to support in contacts with the local administration and the organization of business missions.

INFO

Investments in 2021 are up €3.5 billion compared to €2.9 billion in 2019 & €2.7 billion in 2020

Largest investors: South Korea, Germany, USA

Employing about 18,000 

source: paih.gov.p