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VIENNA ECONOMIC TALKS - SARAJEVO MEETING
28 September 2009
Presented by:
Haris Bašić, director of FIPA BiH
INVESTMENT INVESTMENT POSSIBILITIESPOSSIBILITIES
IN BOSNIA AND HERZEGOVINAIN BOSNIA AND HERZEGOVINA
1. Stable financial sector
2. Favorable trade and other agreements
3. Favorable legislation
4. Favorable tax and customs system
5. Competitively priced human capital
6. Foreign Investors Support Fund
BUSINESS ENVIRONMENT
REASON TO INVEST IN BIH
ww
w.f
ipa
.go
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a
8.8
12.2
9.2
4.8
9.010.0 11.0 10.0 9.2
0
2
4
6
8
10
12
14
2000 2001 2002 2003 2004 2005 2006 2007 2008
Source: CB BiH, Agency for Statistics of BiH, FIPA
Nominal GDP, billion € Real GDP growth rate, %
Industrial production growth rate, % Annual unemployment rate, %
5.5 5.96.6
7.48.1
8.79.8
11.1
12.6
0
2
4
6
8
10
12
14
2000 2001 2002 2003 2004 2005 2006 2007 2008
GDP/C
3,648 € 3.0
6.3
3.94.5
5.4
6.86.7
5.55.5
0
1
2
3
4
5
6
7
8
2000 2001 2002 2003 2004 2005 2006 2007 2008
40.940.339.7 43.242.0 43.0
31.0 29.023.4
0
5
10
15
20
25
30
35
40
45
50
2000 2001 2002 2003 2004 2005 2006 2007 2008
Average5.3
Average9.4
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The most stable currency in SEE (1KM =0.51 EUR)
The lowest inflation in SEE
“B2” credit rating with the stable outlook by Moody’s Agency
Foreign ownership in private banking sector in BiH is 86%
STABLE FINANCIAL SECTOR
Annual inflation rate, %
Source: IMF, CB BiH, Agency for Statistics of BiH
1.5
7.4
1.60.60.43.1
4.80.4 3.7
6.1
-0.9
7.96.15.75.6
6.6
11.3
18.9
24.4
28.2
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
BiH
CEE
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PREFERENTIAL TRADE AND OTHERAGREEMENTS
Free Trade Agreements:
- Central European Free Trade Agreement
(CEFTA) - 30 mill consumers
- Free Trade Agreement with Turkey - 70 mill consumers
Preferential Trade Agreements:- EU, 27 countries - 500 mill consumers
- Preferential export regimes with: USA, Australia, Canada,
Japan, New Zealand, Switzerland, Norway, Russia
Agreements on Avoidance of Double Taxation
- with 32 countries
Agreements on Promotion and Protection of Investments – with 39 countries
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• Tax system
– Unique VAT rate of 17%
– Profit tax is 10%
– Favorable incentives and tax exemptions
• Customs system– Exemption from payment of customs duties for foreign
investors– Customs rates 0-15%
22
20
19
19
19
18
17Bosnia and Herzegovina
Serbia
Czech Republic
Slovakia
Romania
Poland
Croatia
FAVOURABLE TAX AND CUSTOMS SYSTEM
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874
693
674
509
422
395
388
0 200 400 600 800 1000
Slovenia
Croatia
Slovakia
Hungary
Serbia
Montenegro
Bosnia and Herzegovina
COMPETITIVELY PRICED HUMAN CAPITAL
• Average net wages (2008), €
• Creative, skilled and educated workforce
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4.6
7.0
14.7
4.35.5 5.8 5.6
2.92.2
0
2
4
6
8
10
12
14
16
2000 2001 2002 2003 2004 2005 2006 2007 2008
159 133282
338
567478
564
1,628
701
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2000 2001 2002 2003 2004 2005 2006 2007 2008
FDI by Sectors
Total - 5.6 billion €
Total FDI inflow, mill € FDI contribution to GDP (%)
Source: CB BiH, Agency for Statistics of BiH,MoFTER, FIPA
Tourism; 1%Manufacturing;
33%
Trade; 12%
Telecomm.; 14% Banking; 22%
Transport; 2%
Other f inancial
service; 7%
Real estate; 2%
Service; 7%
Average
5.8
Mil
lio
n€
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Top investor countries in BiHMay 1994 - August 2009 – Total amount 5.6 billion €
Source: CB BiH, MOFTER, FIPA
660
70
100
114
130
215
304
364
640
656
834
1,483
0 200 400 600 800 1,000 1,200 1,400 1,600
All other Countries
Turkey
USA
Italy
The Netherlands
Russia
Germany
Switzerland
Croatia
Slovenia
Serbia
Austria
INVESTMENT OPPORTUNITIES
• Availability of natural resources and supply networks
• Highly competitive overall cost structure
• Privatisation process
• Concessions
• Bankruptcy opportunities
• Investment projects
• Joint ventures
• Investment locations
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INVEST IN BOSNIA AND HERZEGOVINA
YOUR NEW OPPORTUNITY
THANK YOU FOR YOUR ATTENTION
Sarajevo Office
Avaz Twist Tower, Tešanjska 24A
Phone: +387 33 278 080
Fax: +387 33 278 081
E-mail: [email protected]
Banja Luka Office
Ðure Daničića 1/III
Phone/ Fax: : +387 51 226 180
E-mail: [email protected]
Mostar Office
Rade Bitange 30
Phone /Fax: +387 36 558 815
E-mail: [email protected]