republic of macedonia - :: sito anfia ::anfia.it/allegati_contenuti/presentazione agenzia macedone...
TRANSCRIPT
February, 2008February, 2008
Republic of MacedoniaRepublic of Macedonia::INVESTMENT OPPORTUNITIESINVESTMENT OPPORTUNITIES
REPUBLIC OF MACEDONIAREPUBLIC OF MACEDONIA
AT A GLANCE:• Area: 25,713 km2
• Population: 2.1 million
• Capital city: Skopje
TRANSPORT INFRASTRUCTURE• Road network of 9,205 km
• Railway network of 900 km • Two Pan-European corridors:
– East-West Corridor 8, and– North-South Corridor 10
• Two international airports: Skopje and Ohrid
• International Ports:- Thessalonica (Greece) : 250km- Durres (Albania) : 300 km
TRANSPORT INFRASTRUCTURETRANSPORT INFRASTRUCTURE
AT A GLANCE AT A GLANCE
ECONOMIC INDICATORSECONOMIC INDICATORS
FDI by year
050
100150200250300350400
2002 2003 2004 2005 2006Year
USD
m
Low inflation of avg <2% in last 10 years
(2003: 1.2%, 2004: -0.4%, 2005: 0.5%, 2006: 3.1%)
INFLATION INFLATION
CURRENCY CURRENCY
AVERAGE SALARY AVERAGE SALARY Export by year
0
0,5
1
1,5
2
2,5
3
2002 2003 2004 2005 2006Year
USD
bn
IX.2007
€ 370 per month
Macedonian Denar pegged to the DM/€
for the last 10 years (€1= MKD 61.3)
Real GDP growth rate
0,0
1,0
2,0
3,04,0
5,0
6,0
7,0
8,0
2002 2003 2004 2005 2006 H1.2007Year
(%)
RANKINGS & RATINGSRANKINGS & RATINGS
4th BEST REFORMERIN THE WORLD
World Bank’s Doing Business 2008 Report
BEST EUROPEAN ECONOMICDEVELOPMENT REGION 2008
Institute of Transport Management, UK
BB+Positive Outlook
BB+Stable Outlook
BB+Stable Outlook
CREDIT RATINGSCREDIT RATINGS
WHY MACEDONIA?WHY MACEDONIA?
WHY MACEDONIA?WHY MACEDONIA?
FiscalFiscalBenefitsBenefits
10% Flat tax rate
Free Economic Zones/
Technology Parks
CompetitiveCompetitiveWorkforceWorkforce
Young, Dynamic Workforce
(45% of population under 30)
4 state owned and 5 private Universities
Excellent language skills
Tailor-made training programs through
Vocational Schools or Universities
~€370/month Average gross salary
Excellent Excellent InfrastructureInfrastructure
100 % digital telecommunication
network
Largest Wi-Fi Hotspot!
3 mobile and 2 fixed telecommunications
providers
Independent telecommunications
regulator
Strong Intellectual Property legislation
Highway system linked to EU
Sites and Buildings
Green customschannel
Investor Investor --friendlyfriendly
GovernmentGovernment
Invest Macedonia
2 Ministers for FDI
Minimizedinstitutional
risks
Access to top decision makers
Higher Profits & Increased Competitiveness
CompetitiveCompetitiveLocationLocation
Free trade to 650m+ market
Competitive labor costs
Competitive utilities
Training facilities
•• 45% of population under 3045% of population under 30•• High intellectual capitalHigh intellectual capital
– +10% increase in total degrees;– ~15% of graduates in technical fields;– 4 state owned and 5 private
universities;– Multiple vocational high schools in
each city.
•• Excellent language skills Excellent language skills 73% of engineering and ICT graduates can hold technical conversation in English on the phone: 62% of secondary students study English while a substantial number study German;
•• TailorTailor--made training programsmade training programsthrough Vocational Schools or Universities.
Young, Dynamic WorkforceYoung, Dynamic Workforce
Graduated students
0
1500
3000
4500
6000
7500
2003 2004 2005 2006 Year
Stud
ents
Graduated students in technical fields
Year0
200
400
600
800
1000
2003 2004 2005 2006
Stud
ents
Average Gross Salary (€)
370707
855Macedonia
Czech RepublicCroatia
Unbeatable Fiscal Benefits in EuropeUnbeatable Fiscal Benefits in Europe
• 10% Corporate & Personal income among lowest in Europe
• 0% Tax on reinvested profit
• Double taxation and investments protection treaties signed with many European countries
• Zero tax for operation in a Free Economic Zone
• Real estate taxes at 2% - 5%
• VAT at 18%, with 5% on specific items
• Free trade agreements with EU, EFTA, CEFTA countries; Turkey and the Ukraine; providing access to over 650 m customers
MACEDONIA*
POLAND
SLOVAKIA
CROATIA
10%
19%
19%
20%
CORPORATE INCOME TAXCORPORATE INCOME TAX
24%CZECH R.
CZECH R.
MACEDONIA
SERBIA
SLOVAKIA
CZECH R.
10%
12%
19%
15%
PERSONAL INCOME TAXPERSONAL INCOME TAX
MACEDONIA*
SLOVAKIA
CZECH R.
POLAND
CROATIA* 5% preferential rate
18%
19%
19%
20%
22%
VAT RATESVAT RATES
MACEDONIAN MACEDONIAN INVESTMENT OPPORTUNITIESINVESTMENT OPPORTUNITIES
Investment OpportunitiesAutomotive components industryAutomotive components industry
• Existing engineering and manufacturing tradition;
• Legacy of skills available to new investors;
• Component production started 1960’s to supply Zastava, Serbia;
• Companies primarily supplying aftermarket;
• Johnson Controls, Johnson Matthey (Free Economic Zone), Hi-Tech to supply OEM’s;
• Markets are Europe, Russia, Turkey, Africa, etc.;
• Most companies have ISO 9001 / TS 16949 quality certification.
Investment OpportunitiesAutomotive components industryAutomotive components industry
Investment OpportunitiesICT SectorICT Sector
• Best Telecommunication networksin the region – the system is 100% digital;
• Leading multinational hardware and software suppliers (Microsoft, HP, IBM) have local sales and support services in Macedonia;
• 100,000 PCs for every kid in school; free internet sessions provided by the government;
• IT skills shortage in Western economies and growing demand for outsourcing services –Macedonia can be your solution!
• Availability of well-educated staff at competitive costs;
• Quality assurance and standardization procedure intitialized.
Investment OpportunitiesHealthcare Sector Medical devices and Pharmaceuticals
• Existing pharmaceutical industry , exports to over 30 countries worldwide;
• Strong educational system, with an abundance of medical and pharmacy graduates;
• Supportive Regulatory environment;• Licensing arrangements in place with
many of worlds leading pharmaceutical companies;
• Availability of serviced industrial sites;• Manufacturing tradition in sector.
Investment OpportunitiesAgribusiness and Food Processing IndustryAgribusiness and Food Processing Industry
• Unique combination of Continental andSub-Mediterranean climate;
• Environmentally friendly production practices;• Technologies for food processing;• Excellent access to regional markets;• Strong reputation for quality food products.
The greatest investment opportunities:The greatest investment opportunities:• fruits and vegetables - production, storage, distribution and processing industries;• wine production;• sheep and goat cheese production.
Investment OpportunitiesTextile sectorTextile sector
• Good image and reputation of Macedonian textile producers on the EU market;
• High flexibility and readiness to adapt to the demands of foreign markets;
• Exceptional relation between product quality and costs;
• Good modern equipment;
• 1-2 days distance to EU-markets;
• Foreign investment welcomed in the ready-made clothing and knitted production.
Historical and Culture HeritageHistorical and Culture Heritage• 4,293 archeological sites with original materials and
spirit rarities;• 992 churches and monasteries, 150,000 m2 fresco
painting, 23,000 icons (4-th most valuable collection in the world), 240 iconostases, and other church items carved in wood;
• 228 mosques, inns, Turkish baths and old bazaars;• 47 towers and fortress.
Land of LakesLand of Lakes• Around 1,100 Water springs about, and more than 60
thermal springs tapped at several spas;• Most attractive rivers: Vardar flows to the Aegean sea,
Crn Drim flows to the Adriatic see, Radika, CrnaReka, Lepenec, Pcinja and others;
• Three bigger lakes (Ohrid, Dojran and Prespa) and a number of small lakes.
Ski ResortsSki Resorts• Biggest Ski Resorts: Mavrovo, Popova Shapka.
Investment OpportunitiesTourismTourism
TECHNOLOGICAL TECHNOLOGICAL INDUSTRIAL DEVELOPMENT INDUSTRIAL DEVELOPMENT
ZONESZONES
TIDZ TIDZ ““SKOPJESKOPJE””
• Location: • 2km from Skopje Airport,
7km from Skopje City Center;
• 1km from Corridor 10 highway,~30km to border with Serbia;
• 300,000 economically active in travel to work area – 40% under 35 years of age*.
• Total size:140 Ha, fully fenced in
• CONNECTIONExits directly to highway, connects with E-75 (Corridor 10).
LOCATION LOCATION
TOTAL SIZE TOTAL SIZE
CONNECTION CONNECTION
* Source: State Office of Statistics – Labour Force Survey 2006
• Electrical grid outlet, new power substationin construction;
• Telecommunication network;• Central heating;• Lighting; • Fire safety system, Airport Fire Department minutes
away;• Security monitoring system;• Water, sewage and water treatment plant;• Gas pipeline, etc.
SKOPJE TIDZSKOPJE TIDZ
INFRASTRUCTURE BENEFITSINFRASTRUCTURE BENEFITS
SKOPJE TIDZ FISCAL BENEFITSSKOPJE TIDZ FISCAL BENEFITS
• 0% corporate tax for 10 years, 10% corporate tax rate outside zone;
• 0% VAT, customs duty, excise taxes;
• Personal income tax reduced by 50% for employees in the TIDZ during the first 5 years;
• Free infrastructure setup;
• €500k Building cost subsidy for global brands;
• Green Customs Channel available at border for rapid export from Zone to EU countries;
• Land in a TIDZ in Macedonia is available under long-term lease for a period of up to 99 years.
“This foundation stone signifies an important and exciting achievement for Skopje and Johnson Controls,” said company Chairman and CEO John Barth. “The Macedonian government has been extremely committed and I would like to thank its officials for their work in supporting this effort. I have no doubt that our partnership will yield excellent results for both Johnson Controls and the Skopje community.”Excerpts from Johnson Controls Press Release, dated October 5th, 2006
Cornerstone laying Cornerstone laying ceremony, 05.10.2006ceremony, 05.10.2006
Official openingOfficial opening12.12.200712.12.2007
•• $ 40m automotive components plant;$ 40m automotive components plant;
•• 150 employees initially 150 employees initially –– increasing to 500;increasing to 500;
•• First phase production First phase production –– mainly integrated mainly integrated circuits for German and French markets.circuits for German and French markets.
Johnson Controls Johnson Controls -- SkopjeSkopje12.12.200712.12.2007
• Up to €55m automotive components plant (in phase 1);• 150 employees in phase 1.Considered countries
• Reviewed: Bulgaria, Croatia, Estonia, Latvia, Lithuania, Slovenia, Romania, Ukraine, Czech, Poland, Hungary, Slovakia;
• Initial choice: Czech Republic.
Macedonia a “Late entrant”
PROJECT SCOPE
CONSIDERED COUNTRIES
• Macedonia scores best for labour, slightly lower on logistics;
• Labour availability looking very good for Skopje;• Our experience has been positive, InvestMacedonia,
Ministry and others superb;• This will be JM’s ‘mega-European plant’ and the largest
ever single investment project.
WHY MACEDONIAWHY MACEDONIA
Colin Jaffray, Director, Strategic Planning, Johnson Matthey PLC, Presentation Skopje June, 2007
TIDZ TIDZ ““SKOPJE 2SKOPJE 2””
Area size 95,46ha
Ownership State
Municipality Municipality of Ilinden, 10km east of Skopje
International airports
Adjacent to Skopje’s International Airport
Railway station Trans-European Network (TEN) Transport Corridor 10
International ports Thessalonica, Greece is located only 250 km southeast from the Zone
Technological Industrial Development Zone Technological Industrial Development Zone ““Skopje 2Skopje 2””
TIDZ TIDZ ““STIPSTIP””
Area size 208,183 ha
Ownership State
Municipality 5km of municipality of Stip
International airports
Skopje - 90km
Railway station Trans-European Network (TEN) Transport Corridor 10
International ports Thessalonica, Greece - 200 km
Technological Industrial Development Zone Technological Industrial Development Zone ““StipStip””
TIDZ TIDZ ““TETOVOTETOVO””
Area size 96,74 ha
Ownership State
Municipality Municipality of Tetovo
International airports
Skopje - 60km
Railway station Trans-European Network (TEN) Transport Corridor 10 –30km, Local Station 5 km
International ports Thessalonica, Greece - 280 km
Technological Industrial Development Zone Technological Industrial Development Zone ““TetovoTetovo””
IN BRIEF:IN BRIEF:KEY INVESTORS BENEFITSKEY INVESTORS BENEFITS
• Political, monetary and macroeconomic stability;• Strategically located for future expansion; • Inexpensive, available, technologically skilled labor
force;• Low taxes; • Technological Industrial Development Zones;• Free trade agreements with many countries; • Advanced telecom infrastructure and World’s first Wi-Fi
country!• Excellent quality of life;• Welcoming and decisive government ready to serve
investors.
In Brief: Key Investors BenefitsIn Brief: Key Investors Benefits
INVEST MACEDONIAINVEST MACEDONIAAT YOUR SERVICEAT YOUR SERVICE……
At Your ServiceAt Your Service……
• One-stop shop and project management approach;
• VIP Investment tour;
• Locations;
• HR Companies, construction, real estate, tax advisory and consulting;
• Universities and Reference Company visits;
• Creating linkages with local and central Governments;
• Navigate the legal requirements;
• Ensure success!
Thank YouThank You
AGENCY FOR FOREIGN INVESTMENTS AGENCY FOR FOREIGN INVESTMENTS OF THE REPUBLIC OF MACEDONIAOF THE REPUBLIC OF MACEDONIA
Tel: ++ 389 2 3117 564Fax: ++ 389 2 3122 098
Nikola Vapcarov 71000 Skopje
Republic of Macedonia
e-mail: [email protected]: www.investinmacedonia.com