New Report: Foreign Direct Investment Vital to Northern Virginia Economy
Fairfax County, Virginia (November 13, 2023) – The Northern Virginia Regional Commission (NVRC), with support from the “Go Virginia Region 7 Council,” Fairfax County Economic Development Authority (FCEDA) and other Northern Virginia jurisdictions, have completed a precedent-setting analysis about the effects of Foreign Direct Investment (FDI) within the boundaries of the City of Alexandria, and Arlington, Fairfax, Loudoun and Prince William counties. The study is the first of its kind in the Commonwealth of Virginia and the second in the United States after Los Angeles County. The study assessed all sectors except retail.
“We have hundreds of foreign-owned firms with locations here in Fairfax County, and foreign direct investment plays a key role in the diversity and strength of our local economy,” said Victor Hoskins, President and CEO of FCEDA. “As the economic engine of Northern Virginia, the significant foreign direct investment here in Fairfax County positively impact the vitality of our $250 billion regional economy.”
The findings of the study highlight that:
- 1,252 foreign establishments in Northern Virginia employ approximately 50,879 people.
- Approximately $6.8 Billion in wages are annually paid into Northern Virginia’s economy from FDI.
- FDI in Northern Virginia accounts for approximately 4.6% of all job creation
- Average of 40.6 employees per foreign establishment compared to 13.9 across all types of companies.
- Professional, scientific and technical services account for approximately 49% of employment from FDI in Northern Virginia.
The top five foreign investors in the region are (ranked by job creation):
- United Kingdom (11,980 jobs, 247 establishments)
- Germany (5,976 jobs, 101 establishments)
- Canada (4,590 jobs, 144 establishments)
- Ireland (3,986 jobs, 39 establishments)
- France (3,651 jobs, 100 establishments)
“NVRC has been pleased to work with our partners at the various economic development agencies in the region to undertake this groundbreaking study. One thing is clear, Foreign Direct Investment is an important element to the region’s economy and the report provides a clear roadmap for future economic growth and purposeful global engagement,” said the Honorable John T. Chapman, Chairman of the Northern Virginia Regional Commission and Member of the Alexandria City Council.
The study was conducted by S&P Global under a contract with NVRC and the full report can be downloaded here: https://www.novaregiondashboard.com/reports.