SERBIA - siepa.gov.rs

SERBIA

Aleksandar Nedeljkovic| FDI Advisor

Q U A L I T Y W O R K S

Serbia Investment and Export Promotion Agency

PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2010.


Most Improved Business Environment

Home of the Largest Investors

Belgrade - City of the Future

Quality Recognized

Duty-free Access to a Market of 1 Billion Consumers

Strong Economic Performance

Skilled and Competitive Workers

Financial Grants Support Scheme & Other Competative Incentives

Ideal Setting for Growing Profit

Investment Track Record

SIEPA Activities and Services


PRESENTATION OUTLINE


Economist Intelligence Unit:

“SERBIA IS FORECAST TO MAKE THE LARGEST IMPROVEMENT IN THE BUSINESS ENVIRONMENT IN THE REGION OF EASTERN EUROPE BETWEEN 2009 AND 2013.”

“OUT OF 16 COUNTRIES INCLUDED IN THE RESEARCH, SERBIA WILL BE LEADING THE REGION IN TERMS OF BUSINESS REFORMS BY A WIDE MARGIN.”


MOST IMPROVED BUSINESS ENVIRONMENT


The biggest Greenfield projects in South East Europe for three consecutive years awarded by OECD.

BALL PACKAGING EUROPE, USA, IN 2004

METRO CASH & CARRY, GERMANY, IN 2005

AIRPORT CITY BELGRADE, ISRAEL, IN 2006


HOME OF THE LARGEST INVESTORS


Belgrade, the capital, has been awarded as the City of the Future for Southern Europe 2007 by the fDi Magazine.

Selection criteria - economic potential, cost effectiveness, human resources, IT and telecommunications, transport, quality of life, and FDI promotion.

In 2008 the municipality of Indjija was ranked among the Top 25 Most Attractive locations for foreign direct investment in Europe by the fDi Magazine.


BELGRADE – CITY OF THE FUTURE


SERBIA IS THE 3RD MOST ATTRACTIVE MANUFACTURING AND 7TH MOST ATTRACTIVE SERVICES FDI DESTINATION AMONG EMERGING ECONOMIES, ACCORDING TO PRICEWATERHOUSECOOPERS.

THE 2ND BEST PERFORMANCE IN THE SOUTH EAST EUROPE REGION WITH NEARLY 150 INWARD INVESTMENT PROJECTS IN 2007, 2008 AND 2009, BY ERNST & YOUNG.


QUALITY RECOGNIZED


SNAPSHOT OF INVESTMENT PERCEPTION AND REALITY

Source: Ernst & Young Southeast Europe Attractiveness Survey 2008 - 216 international executives/E&Y European Investment Monitor 2008

If you want to receive the full report please contact SIEPA or Ernst & Young


Which region is the most attractive for manufacturing activities?

SERBIA Bulgaria

Romania

REA

L A

TTR

AC

TIV

ENES

S (N

o. o

f in

war

d F

DI p

roje

cts

20

07

)

0% 20% 40% 60%

0

50

100

150

PERCEIVED ATTRACTIVENESS

Outsider with a poor image but strong results

Matching image and reality

Image/reality

Croatia Greece

Turkey

Challengers with a stronger image than the reality

Cyprus

Bosnia & Herzegovina


Source: The PricewaterhouseCoopers EM20 Index, July 2008


TOP FIVE MANUFACTURING DESTINATIONS IN THE WORLD

1

5

10

15

20

25

30

35

RA

NK

ING



STRONG ECONOMIC PERFORMANCE



DUTY-FREE ACCESS TO A MARKET OF 1 BILLION CONSUMERS

European Union EFTA

CEFTA Turkey Belarus

Russia Kazakhstan

USA



HUMAN RESOURCES

27,000 university and 2-year college graduates, and 75,000 high school graduates per year

Top quality technical education at both high school and university level

A wide availability of highly qualified staff

Strong command of the English language

“This initiative demonstrates our confidence and trust in Serbia, its industry, management competence, and the skill of its workers.“ Sergio Marchionne, CEO



TECHNICAL EDUCATION

11 technical faculties for white collar workers

71 technical schools for blue collar workers

Faculty of Mechanical Engineering

Faculty of Technical Sciences

Faculty of Electrical Engineering

Faculty of Traffic and Transport Engineering

Faculty of Technology and Metallurgy



NET SALARY GROSS SALARY

25,000 RSD (250 EUR)

41,037 RSD (400 EUR)

40,000 RSD (400 EUR)

66,266 RSD (650 EUR)

60,000 RSD (600 EUR)

99,903 RSD (1,000 EUR)

Net vs. Gross Salary

Source: Vienna Institute for Economics

SALARIES IN SERBIA

Gross monthly wages in 2009 in EUR

0

200

400

600

800

1.000

1.200

Croatia CzechRepublic

Slovakia Poland Hungary Serbia

1.051

893

745717 713

469



FINANCIAL GRANTS SUPPORT SCHEME

Financial Grants

Eligible Projects

Large-Scale Projects Standard-Scale Projects

Manufacturing and Export-Related Services

Manufacturing Export-Related

Services

Projects Realized in Devastated Regions

and Regions of Special State

Interest

Projects in Automotive,

Electronics, IT Industries Realized

in Regions of Special State

Interest

Projects Realized in Other Regions

Projects Realized in Any Region

Grant Amount 25% of the total

investment

20% of the total

investment 4,000-10,000 EUR 5,000-10,000 EUR 2,000-5,000 EUR 2,000-10,000 EUR

Minimum Investment

Amount 200 mn EUR 50 mn EUR 0.5 mn EUR 0.5 mn EUR 1 mn EUR 0.5 mn EUR

Minimum Number of New

Jobs Created 1,000 300 50 50 50 10

Serbian government offers a special financial package for supporting various investment projects



COMPETATIVE INCENTIVES

Other incentives

State Development Fund provides loans under favorable conditions (lower interest rate than referent interest rates in the banking market); approximate 2% annual interest rate.

The Regional Employment Program includes grants from 800 EUR to 1,600 EUR for full-time employment of at least 5 unemployed persons.

The Apprentice Program includes state grants for professional training of apprentices holding high school degrees, apprentices holding college degrees and apprentices holding university degrees.

The Retraining Program is organized by the National Employment Services at companies’ request provided there are no unemployed persons from specific professions registered with the service or they lack professional skills required by the company. The retraining expenses can be covered in the amount up to 80,000 RSD or roughly 800 EUR per employee.

Tax incentives

A 10-year corporate profit tax holiday for investments over 8 million EUR in value and which employ at least 100 workers.

Corporate profit tax reduction up to 80% of fixed assets investment.

A 5-year corporate profit tax holiday for concessions.

Carrying forward of losses over up to 5 years.

Salary tax exemptions for hiring certain categories of workers on a permanent basis.

Social insurance charges exemptions for certain category of workers hired on a permanent basis.

No double taxation.

Customs-free imports of equipment and some raw materials.

By investing in Serbia, businesses can take advantage of a wide array of investment incentives



IDEAL SETTING FOR GROWING PROFIT


Source: Ernst & Young Southeast Europe Attractiveness Survey 2008 - 216 international executives

Since 2001 Serbia attracted around 20 billion USD of investments

0

1000

2000

3000

4000

5000

6000

2002 2001


178 504

1389 987

1616

5474

2404

FOREIGN DIRECT INVESTMENTS 2000 – 2009 (MIL USD)

Inward FDI in million of USD

3363 3569

2003 2004 2005 2006 2007 2008 2009



LEADING FOREIGN INVESTORS

Source: SIEPA



OUR ACTIVITIES

PROMOTING INVESTMENTS

Providing information

Selecting investment

location

Managing investment

projects

Project aftercare

Municipal data

Brownfield locations

Greenfield locations

Web site

Conferences

Investment seminars

General data

Tax and legislation

Sector analysis, brochures

Project management

Financial grants administration

Tax, legal, other assistance

Assistance in various activities

Selecting suppliers

Linking all stakeholders


SERBIA

Thank you for your attention! 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

E-mail: [email protected] www.siepa.gov.rs


Documents

SERBIA - siepa.gov.rs