SERBIA Q U A L I T Y W O R K S. Aleksandar Nedeljkovic FDI Advisor. Serbia Investment and Export Promotion Agency

Transcription

1 SERBIA Q U A L I T Y W O R K S Aleksandar Nedeljkovic FDI Advisor

2 PRESENTATION OUTLINE Most Improved Business Environment Home of the Largest Investors Belgrade - City of the Future Quality Recognized South East Europe snap shot view by consultants Skilled and Competitive Workers Financial grants support scheme & other competative incentives Investment Track Record SIEPA Activities and Services

3 MOST IMPROVED BUSINESS ENVIRONMENT Economist Intelligence Unit: SERBIA IS FORECAST TO MAKE THE LARGEST IMPROVEMENT IN THE BUSINESS ENVIRONMENT IN THE REGION OF EASTERN EUROPE BETWEEN 2009 AND OUT OF 16 COUNTRIES INCLUDED IN THE RESEARCH, SERBIA WILL BE LEADING THE REGION IN TERMS OF BUSINESS REFORMS BY A WIDE MARGIN.

4 HOME OF THE LARGEST INVESTORS The biggest Greenfield projects in South East Europe for three consecutive years awarded by OECD. BALL PACKAGING EUROPE, USA, IN 2004 METRO CASH & CARRY, GERMANY, IN 2005 AIRPORT CITY BELGRADE, ISRAEL, IN 2006

5 BELGRADE CITY OF THE FUTURE Belgrade, the capital, has been awarded as the City of the Future for Southern Europe 2007 by the fdi Magazine. Selection criteria - economic potential, cost effectiveness, human resources, IT and telecommunications, transport, quality of life, and FDI promotion. In 2008 the municipality of Indjija was ranked among the Top 25 Most Attractive locations for foreign direct investment in Europe by the fdi Magazine.

6 QUALITY RECOGNIZED SERBIA IS THE 3RD MOST ATTRACTIVE MANUFACTURING AND 7TH MOST ATTRACTIVE SERVICES FDI DESTINATION AMONG EMERGING ECONOMIES, ACCORDING TO PRICEWATERHOUSECOOPERS. THE 2ND BEST PERFORMANCE IN THE SOUTH EAST EUROPE REGION WITH NEARLY 150 INWARD INVESTMENT PROJECTS IN 2007, 2008 AND 2009, BY ERNST & YOUNG.

7 SEE A CLEAR LEADER Which region in Europe is the most attractive in terms of labor and productivity? 14% 2 Labor cost 49% 1 10% 3 Flexibility of labor legislation 15% 33% 1 13% % 2 Productivity increase 36% 1 16% 3 Central Europe Southeast Europe Russia Ukraine Belarus Western Europe Southeast Europe Central Europe Western Europe Southeast Europe Central Europe Source: Ernst & Young Southeast Europe Attractiveness Survey international executives If you want to receive the full report please contact SIEPA or Ernst & Young

8 ATTRACTIVE DESTINATION Which region is the most attractive for manufacturing activities? 38% Vs. 32% in % 12% 5% 3% 2% 1% Southeast Europe Central Europe Western Europe Russia Ukraine Belarus Northern Africa Nordic countries Baltic countries Source: Ernst & Young Southeast Europe Attractiveness Survey international executives If you want to receive the full report please contact SIEPA or Ernst & Young

9 REAL ATTRACTIVENESS (No. of inward FDI projects 2007) Serbia Investment and Export Promotion Agency SNAPSHOT OF INVESTMENT PERCEPTION AND REALITY Which region is the most attractive for manufacturing activities? 150 Matching image and reality Romania Image/reality Outsider with a poor image but strong results SERBIA Bosnia & Herzegovina Cyprus Croatia Bulgaria Challengers with a stronger image than the reality Turkey Greece 0% 20% 40% 60% Source: Ernst & Young Southeast Europe Attractiveness Survey international executives/e&y European Investment Monitor 2008 If you want to receive the full report please contact SIEPA or Ernst & Young

10 RANKING Serbia Investment and Export Promotion Agency TOP FIVE MANUFACTURING DESTINATIONS IN THE WORLD Source: The PricewaterhouseCoopers EM20 Index, July 2008

11 HUMAN RESOURCES 27,000 university and 2-year college graduates, and 75,000 high school graduates per year Top quality technical education at both high school and university level A wide availability of highly qualified staff Strong command of the English language This initiative demonstrates our confidence and trust in Serbia, its industry, management competence, and the skill of its workers. Sergio Marchionne, CEO

12 TECHNICAL EDUCATION 11 technical faculties for white collar workers 71 technical schools for blue collar workers Faculty of Mechanical Engineering Faculty of Technical Sciences Faculty of Electrical Engineering Faculty of Traffic and Transport Engineering Faculty of Technology and Metallurgy

13 SALARIES IN SERBIA Gross monthly wages in 2009 in EUR NET SALARY 25,000 RSD (250 EUR) GROSS SALARY 41,037 RSD (400 EUR) ,000 RSD (400 EUR) 66,266 RSD (650 EUR) ,000 RSD (600 EUR) 99,903 RSD (1,000 EUR) Net vs. Gross Salary Croatia Czech Republic Slovakia Poland Hungary Serbia Source: Vienna Institute for Economics

14 Eligible Projects Grant Amount Minimum Investment Amount FINANCIAL GRANTS SUPPORT SCHEME Serbian government offers a special financial package for supporting various investment projects Large-Scale Projects Manufacturing and Export-Related Services 25% of the total investment 20% of the total investment Financial Grants Projects Realized in Devastated Regions and Regions of Special State Interest Standard-Scale Projects Manufacturing Projects in Automotive, Electronics, IT Industries Realized in Regions of Special State Interest Projects Realized in Other Regions Export-Related Services Projects Realized in Any Region 4,000-10,000 EUR 5,000-10,000 EUR 2,000-5,000 EUR 2,000-10,000 EUR 200 mn EUR 50 mn EUR 0.5 mn EUR 0.5 mn EUR 1 mn EUR 0.5 mn EUR Minimum Number of New Jobs Created 1,

15 COMPETATIVE INCENTIVES By investing in Serbia, businesses can take advantage of a wide array of investment incentives Other incentives State Development Fund provides loans under favorable conditions (lower interest rate than referent interest rates in the banking market); approximate 2% annual interest rate. The Regional Employment Program includes grants from 800 EUR to 1,600 EUR for full-time employment of at least 5 unemployed persons. Tax incentives A 10-year corporate profit tax holiday for investments over 8 million EUR in value and which employ at least 100 workers. Corporate profit tax reduction up to 80% of fixed assets investment. A 5-year corporate profit tax holiday for concessions. The Apprentice Program includes state grants for professional training of apprentices holding high school degrees, apprentices holding college degrees and apprentices holding university degrees. The Retraining Program is organized by the National Employment Services at companies request provided there are no unemployed persons from specific professions registered with the service or they lack professional skills required by the company. The retraining expenses can be covered in the amount up to 80,000 RSD or roughly 800 EUR per employee. Carrying forward of losses over up to 5 years. Salary tax exemptions for hiring certain categories of workers on a permanent basis. Social insurance charges exemptions for certain category of workers hired on a permanent basis. No double taxation. Customs-free imports of equipment and some raw materials.

16 FOREIGN DIRECT INVESTMENTS (MIL USD) Inward FDI in million of USD Source: Ernst & Young Southeast Europe Attractiveness Survey international executives Since 2001 Serbia attracted around 20 billion USD of investments

17 LEADING FOREIGN INVESTORS Source: Vienna Institute for Economics

18 OUR ACTIVITIES Assistance in various activities Selecting suppliers Linking all stakeholders Project aftercare PROMOTING INVESTMENTS Web site Conferences Investment seminars Project management Financial grants administration Tax, legal, other assistance Managing investment projects Selecting investment location Providing information General data Tax and legislation Sector analysis, brochures Municipal data Brownfield locations Greenfield locations

19 EXAMPLE SIEPA ANALYSIS ELECTRONIC INDUSTRY In terms of annual operating costs, Serbia is by far the best low-cost solution for electronic producers Average annual total operating costs in other countries Average annual total operating costs in other countries Total labor cost Total industrial space cost Average annual total operating costs in other countries Assumptions used in IBM-PLI 2008 benchmark: Total headcount: 100; Total industrial space: 7500 m2; Location: Out of town.

20 EXAMPLE SIEPA ANALYSIS PHARMACEUTICAL INDUSTRY In terms of annual operating costs, Serbia is the best low-cost solution for pharmaceutical companies Average annual labor costs in other countries Average annual operating costs in other countries Average annual space costs in other countries Total labor cost Total industrial cost Assumptions used in IBM-PLI 2008 benchmark: Total headcount: 100; Total industrial space: 7500 m2; Location: Out of town.

21 DATABASE OF AVAILABLE BROWNFIELD AND GREENFIELD LOCATIONS

22 SIEPA SUPPLIERS DATABASE On our website Search by: Sector / sub-sector, markets, technology, used products, certificates

23 SERBIA

24 SERBIA

25 SERBIA

26 Thank you for your attention! SERBIA INVESTMENT AND EXPORT PROMOTION AGENCY 3, Vlajkoviceva St Belgrade, Serbia Phone: Fax: office@siepa.gov.rs