Download - Invest in serbia_august_2010
INVEST IN SERBIAINVEST IN SERBIA
PRESENTATION OUTLINEPRESENTATION OUTLINE
1. Key Drivers to FDI in Serbia
2. Strong FDI Figures
3. SIEPA Services
KEY COUNTRY DATAKEY COUNTRY DATA
Area: 88,361 km²Population: 9.5 millionCapital: Belgrade (1.7 million)State form: Democratic RepublicPresident: Mr. Boris TadicPrime Minister: Mr. Mirko CvetkovicCurrency: Serbian Dinar (RSD)GDP: €31.51 billion (2009)GDP pc: €4,304 (2009)Internet domain: .rs
KEY DRIVERS TO FDI IN SERBIAKEY DRIVERS TO FDI IN SERBIA
Enhanced Investment Stability
Booming Market Potential
Quality Human Resources
Strategic Geographic Location
Low Overhead Costs
Attractive Investment Incentives
Robust Recent Growth
The SAA with the EU signed in April 2008; membership application submitted in late 2009; acquis communautaire to be adopted by 2012
Serbia’s application for the WTO accepted; accession expected by the first half of 2011
PwC EM20 Index 2008–Serbia as the 3rd most attractive manufacturing and 7th Shared Services location among emerging markets
E&Y European Investment Monitor–nearly 150 new projects in Serbia in 2007, 2008, 2009; Serbia holding the 2nd spot in South East Europe
ENHANCED INVESTMENT ENHANCED INVESTMENT STABILITYSTABILITY
National treatment of foreign companiesFree transfer of financial and other assets, including profits and dividendsBilateral Investment Treaties with more than 30 countriesInvestment projects insured against non-commercial risks by all major national agencies
ENHANCED INVESTMENT ENHANCED INVESTMENT STABILITYSTABILITY
Business legislation reforms in line with the EU legal framework
Key investment-related reforms implemented:- Tax laws, including VAT Law- Business registration: 51 days 5 days- Foreign trade–top reformer in the world for 2006- The new Planning and Construction Law- The new Law on Competition Protection
Key investment-related reforms to be implemented:
- ‘The Guillotine of Regulations’–30% fewer regulations
ENHANCED INVESTMENT ENHANCED INVESTMENT STABILITYSTABILITY
The new Law on Planning and Construction:
- Freehold ownership of land
- Improved license issuing
As of May 2009, business registration done in up to 5 days
All common company forms available
ENHANCED INVESTMENT ENHANCED INVESTMENT STABILITYSTABILITY
BOOMING MARKET POTENTIALBOOMING MARKET POTENTIAL
Duty-free access to a 1 billion people market:
Customs-free exports to the EU Generalized System of Preferences for exports of 4,650 products to the United StatesFree Trade Agreements with the Russian Federation, Kazakhstan, Turkey, EFTA members, and BelarusFree Trade Agreement (CEFTA) in South East Europe
QUALITY HUMAN RESOURCESQUALITY HUMAN RESOURCES
35,000 university and 2-year college graduates and 75,000 high school graduates yearly Top quality technical education at both high school and university level A wide availability of highly qualified staffStrong command of the English language
QUALITY HUMAN RESOURCESQUALITY HUMAN RESOURCES
Rising unemployment as a result of privatization process layoffs; the unemployment rate particularly high in former, large industrial centers, making a skilled labor force widely availableHeadhunting agencies available in major citiesA 40-hour working week; overtime up to 4 hours/day, 8 hours/weekFlexible working forms available: part-time, work at home, etc.Two major labor unions, chiefly active in former state-owned firms
QUALITY HUMAN RESOURCESQUALITY HUMAN RESOURCES
STRATEGIC GEOGRAPHIC STRATEGIC GEOGRAPHIC LOCATIONLOCATION
Two European transportation corridors: - Corridor X: Salzburg-Thessalonica highway- Corridor VII: The River DanubeA total of €1.7 billion earmarked for further road network development on the Corridor XThe three remaining Corridor X sections to be completed in the next three years
LOW OVERHEAD COSTSLOW OVERHEAD COSTS
Europe’s second lowest Corporate Income Tax rateThe Value Added Tax rate among the most competitive in Central and Eastern Europe
LOW OVERHEAD COSTSLOW OVERHEAD COSTS
The average salary–60% of the level in CEE countries
Tax burden totaling about 65% of the net salary; reduction possible through tax incentives
The 9.4:1 salary ratio by specific industries; 4:1ratio by municipalities
ATTRACTIVE INVESTMENT ATTRACTIVE INVESTMENT INCENTIVESINCENTIVES
ATTRACTIVE INVESTMENT ATTRACTIVE INVESTMENT INCENTIVESINCENTIVES
Tax incentives:A 10-year Corporate Income Tax holiday for investment over €8 million and 100 employeesA 5-year Corporate Income Tax holiday for investment in undeveloped regionsCorporate Income Tax reduction up to 80% of the fixed assets investmentSalary Tax exemptions for employees below 30 and above 45 years of ageSocial insurance charges exemptions for employees below 30 and above 45 years of ageValue Added Tax exemption in Free ZonesCustoms-free imports of equipment and certain raw materials
ROBUST RECENT GROWTHROBUST RECENT GROWTH
ROBUST RECENT GROWTHROBUST RECENT GROWTH
Average exports growth over the 5-year period–33%
Strong exports performance driven by the Food, Textile, Metal, Chemical, Machinery, and Wood industries
Nearly 55% of foreign trade pursued with the European Union
ROBUST RECENT GROWTHROBUST RECENT GROWTH––THE THE CRISIS IMPACTCRISIS IMPACT
The crisis impact cushioned by: a) state-subsidized banking loans, b) active employment measures, c) public investment in infrastructure development
External liquidity secured through the €3 billion Arrangement with the IMF and the Agreement with foreign-owned commercial banks in Serbia
STRONG FDI FIGURESSTRONG FDI FIGURES
Total inward FDI between 2004 and 2008–over €11 billionInward FDI in 2009 reached about €1.8 billionA sharp upward trend in Greenfield projects–130+ such ventures in 2007, 2008, 2009About 70% of FDI stemming from EU countries
LEADING FOREIGN INVESTORSLEADING FOREIGN INVESTORS
SIEPA SERVICESSIEPA SERVICES
Free-of-charge assistance in all investment project stages; the Agency specialized in Greenfield projects An investment portfolio in excess of €1 billion Fiat, Kronospan, Ball Corporation, Grundfos, Knauf among major clients
CONTACT USCONTACT US
SERBIA INVESTMENT AND EXPORT PROMOTION AGENCY
3, Vlajkoviceva St.
11000 Belgrade, Serbia
Phone: +381 11 33 98 55 0
Fax: +381 11 33 98 81 4
www.siepa.gov.rs