Internationalization of the Italian

companies in Bulgaria and in the

Balkans

Current Situation and Future Developments

Federico Cassi - Confindustria Bulgaria

Italian companies in Bulgaria: statistical and geographic analysis

There are around 1.000 Italian companies in Bulgaria

Most of them are situated in two areas: 46% in Sofia and

25% in Plovdiv

There is a significant concentration of more than 20

companies in Varna, Kyustendil and Pleven.

Main sectors of the Italian firms in Bulgaria

30% of the industrial activity is covered by

the manufacturing sector

Other important sectors are:

Consulting services,

Trade,

Constructions.

Geographical Distribution of the Manufacturing activity

Mainly, they are located in the Sud-west area of the country.

Blagoevgrad, Kyustendil: shoe district

Plovdiv: textile and food district Pleven, Gabrovo, Ruse, Varna,

Vratsa: textile and clothing district Pazardzhik: food and wood district

Italian role in Bulgaria

Italy is the third European most important trade partner of Bulgaria

Total trade exchange: €3.691 billion FDI from Italy to Bulgaria have been of €289 billions in 2009

(+60% from 2008 to 2009)

2011(€) Var.% 2010/2011

Import 2.112.048.235 23,41%

Export 1.579.577.428 10,43%

Investing in Bulgaria

Advantages Tight fiscal policy GDP growth Increasing export Good implementation of EU

funds Development of the

infrastructure network

Critical points Low consume Worsening of the external

economic condition and of the external demand

Weak recovery of the labour market

Population ageing

New challenges: Justice reform and Bureaucracy

restraining

Balkans

Balkans’ geographic position is strategic due to the transit of Pan-European corridors and for the advantageous tax rates.

Bosnia-Herzegovina

Bulgaria Macedonia Moldova Romania Serbia

VAT 17% 20% 18% 20% 24% 18%

Corporate Tax

10% 10% 10% 12% 16% 10%

Balkans’ exports: unexpected patterns

Source: ISTAT 2010

Current situation in the Balkans

GDP growth expected in

2012

Per capita GDP (€)

Number of Italian active

firms

Employees working in the italian

firms

Interchange (€)

Bosnia and Herzegovina

1,50% 3.258 60 5.000 2.088.345.207

Bulgaria 2,60% 4.801 1.000 25.000 6.524.105.513

Macedonia 3,70% 4.483 80 2.500 1.026.208.228

Romania 2,50% 5.675 15.700 800.000 21.076.269.542

Serbia 2,80% 3.917 250 20.000 3.768.935.001

Total 13,10% 22.134 17.090 852.500 34.483.863.491