Serbia Investment and Export Promotion Agency PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2015. China – Serbia Building on Success Serbia Investment

Serbia Investment and Export Promotion Agency

PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2015.

China – SerbiaBuilding on Success



Mr. Nikola JankovicAssistant Director for Investment Projects

Belgrade, 11. June 2015



• Serbia – Political Framework

• Serbia – PR China

• Foreign Direct Investment (FDI) in Serbia

• Why Invest in Serbia?

• About SIEPA (Serbia Investment and Export Promotion Agency)

Presentation Outline



New Government, Stable and Proactive

• New government determined to improve the business climate.

• Economic reforms, fiscal and budget consolidation.

• New set of laws including Labor Law, Law on Bankruptcy, Law on Privatization, Law on Planning and Construction.

• Support for investments, focus on new employment.

• On-going EU accession negotiations, full membership expected in 2020.



Serbia – China

China is in Top 30 net investors in Serbia in 2007-2014 period* FDI stock: €60 million*

*Source: National Bank of Serbia**Source: SIEPA, 2015



Serbia – China

Source: Statistical Office of the Republic of Serbia

• Exports mostly include cork and wood, machinery and equipment, plastics, paper and paperboard, vegetables and fruits, footwear, furniture, and telecommunications.

• Imports list is topped by telecommunications and sound-recording and reproducing apparatus and equipment, office machines, electrical machinery and equipment, industrial machinery and equipment, apparel and clothing accessories.



Since year 2000, Serbia has attracted more than €24 billion

of inward foreign direct investment.

Success in Attracting FDI



Success in Attracting FDI

63 new projects12,179 new jobs

According to EY*, Serbia was one of Europe’s favorite investment locations in CEE in 2012. The success continued in 2013 - number of new jobs was up by 18%, placing Serbia on the 5th position in Europe, while 63 new projects made Serbia the second most attractive location in CEE, second only to Poland. * EY European Attractiveness Survey 2014



Key Investors

EU countries dominate the FDI environment

Source: SIEPA, 2015



Key Sectors

Food, automotive and manufacturing are the most attractive sectors

Source: SIEPA, 2015



• Leading investment sector by number of projects;

• Automotive products top export item, as of 2013;

• Tradition of over 70 years;• Available, experienced,

educated and competitively priced labor;

• Well developed infrastructure.

Top Investment SectorsAutomotive



• 2nd most atractive sector by number of projects;

• Excellent agricultural land – opportunity for investments in primary production;

• Over 30% of world’s raspberries grown in Serbia;

• Excellent position to cover SEE market;

• Excellent conditions to serve the Russian market.

Top Investment SectorsFood



• One of Serbia's top exporting sectors;

• FDI projects created more than 10,000 new jobs;

• Abundant supply of experienced labor;

• Salaries provide cost effective production;

• Available Brownfield locations.

Top Investment SectorsClothing



• One of Serbia’s core industries with the longest manufacturing tradition;• Most of the companies export- oriented; • Manufacturers with internationally acknowledged quality and competitive prices;• Growing sector by the number of FDI projects;• Highly-skilled workers and low labor costs;• Quick and easy access to the key markets - EU, SEE and Middle Eastern customers.

Top Investment SectorsMetalwork and Machine

Building Industry



• Strategic sector for Serbia;

• Long tradition stepped up by Siemens, Eaton, Panasonic, Gorenje, etc.;

• Development of innovation technology parks;

• Strong university centers in Belgrade, Nis and Novi Sad.

Top Investment SectorsElectronics



• Top-quality raw base materials;

• Long tradition in wood processing and supplying of international buyers;• Duty-free export access to

Russian, EU and SEE market;• Strong local demand;• Production of massive furniture

is a growing sub-sector;• Large opportunities in sawn

wood, engineered wood products, furniture, and paper production;

• Furniture industry is one of the few recording trade surplus of over €100 mil.

Top Investment SectorsWood and Furniture

Industry



Why Invest in Serbia?


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• Around 47,000 university and college graduates, and 75,000 high school graduates every year.

• Top quality technical education at both high school and university level.

• Over 100,000 registered unemployed hold either university or college degree.

• Strong command of the English language. Serbia was ranked 4th out of 76 countries in Business English proficiency by BEI*.

• Young graduates speak other languages, primarily French, Italian, German, and Russian.

*Business English Index, Source: Global English Corporation, 2012

Commitment to Education

“This initiative demonstrates our confidence and trust in Serbia, its industry, management competence and the skill of its workers”

Sergio Marchionne, CEO


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Technical Education Centers



Free Trade Agreements

European Union EFTA

CEFTA Turkey Belorussia

Russia Kazakhstan



CompetitiveTax Environment

Source: National IPA’s 2014



Tax Incentives

Corporate Profit Tax •10-year tax holiday for investments over €8.5 milion, 100 new jobs;

Reduced Salary LoadNew employment entitles employers to a sizable relief of taxes and contributions paid on net salary from the moment of employment until June 30, 2016.

• 1-9 new jobs: 65% reduction;

• 10-99 new jobs: 70% reduction;

• 100+ new jobs: 75% reduction;

This reduces the total salary load to very competitive 20%*.

*an estimate for an average salary in Serbia.



Low Operating Costs

• One of the most competitive locations in Europe, according to Eurostat. • Among 37 European countries the lowest cost of electricity, gas, other fuels, postal

services, landline telephony, fax service, and maintenance of motor vehicles costs. • Serbian cities always on Financial Times´ list of the Most Cost Effective Cities of the

Future.

Source: Vienna Institute, 2014



Cost Effectiveness Across the Board

Source: Cekos, Statistical Office of the Republic of Serbia



Financial Incentives



Free Trade ZonesOperation within designated free zones is VAT-free and entitles to a tax return for exported goods.



About SIEPA



SIEPA Locations DatabaseThe largest database of industrial locations in Serbia www.serbia-locations.rs



SIEPA Suppliers Database

The largest database of the Serbian industry www.serbia-suppliers.rs



Thank you for your attention!SERBIA INVESTMENT AND EXPORT PROMOTION AGENCY

3, Vlajkoviceva St.11000 Belgrade, Serbia

Phone: +381 11 33 98 550Fax: +381 11 33 98 814

E-mail: [email protected]

www.siepa.gov.rs


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Serbia Investment and Export Promotion Agency PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2015. China – Serbia Building on Success Serbia Investment