June 2012June 2012
Invest MacedoniaInvest Macedonia
•• Mission: Mission: - to win new investment projects into Macedonia and support the expansion of
the existing base of overseas companies in the country. To deliver value to
investors by using our broad knowledge of the Macedonian business
environment and market segments, country-wide connections and a broad
network of partners.
•• Vision:Vision:•• Vision:Vision:- to become the best and most professional IPA in Europe and to contribute a
significant percentage of Macedonia’s FDI inflows. To be recognized not as a
government organization but as a pro business service provider
•• 4 Main functions:4 Main functions:1. Country promotion
2. Investor Servicing
3. Aftercare
4. Export promotion
Promotion of MacedoniaPromotion of Macedonia
One of the core activities of Invest Macedonia is to widely promote
the business climate of the country, its political, monetary and
macroeconomic stability by:
• Media campaign (global TV-networks and newspapers)
• Specialized editions and brochures
• Network of economic promoters (direct marketing)
• Business forums, fairs and road shows
Our Services Our Services –– Investment ProcessInvestment Process
Evaluation
& Strategy
• Business opportunity analysis
• Identification of supplier base
• Identification of project-specific location factors
• Cost analysis
• Site pre-selection
• Organization of meetings with state and local authorities
• Organization of meetings with legal advisors and financial partners
Decision &
Investment
• Site visit organization
• Final site decision support
• Incentives negotiations and establishment of formalities
Aftercare
• Support with relevant tax and legal issues
• Coordination and support of negotiations with other state and local authorities
• Support with your future expansion or reinvestment needs
44 mainmain sectorssectors identifiedidentified withwith greatestgreatest exportexport potentialpotential
Metal and Precise machinery industry inc. automotive components
ICT
Textile industry
Agribusiness/Food industry
Our Services Our Services –– Export PromotionExport Promotion
MainMain activitiesactivities includeinclude::
• Support and assistance for attendance on international fairs
• Organization of B2B events
• Organization of trade missions
• Country and market analysis
• Creation of data bases of Macedonian companies from different
industries
goal: INCREASING THE VALUE OF EXPORTS
• 26 economic promoters in 22 countries
• Europe: Sweden, Italy, UK, Germany, France, Austria, The
Netherlands, Belgium, Turkey, Poland, Russia, Croatia, Serbia,
Albania
• Asia: China, Japan, India, Qatar, Kazakhstan
Economic promotersEconomic promoters
• Americas: USA, Canada, Argentina
INVESTMENTINVESTMENTOPPORTUNITIESOPPORTUNITIESOPPORTUNITIESOPPORTUNITIES
Investment OpportunitiesInvestment OpportunitiesTarget SectorsTarget Sectors
Machine and Automotive components
ICT
Medical Devices and Pharmaceuticals
Agribusiness and Food ProcessingAgribusiness and Food Processing
Energy sector
Mineral Resources
Textile
Tourism
Investment OpportunitiesInvestment OpportunitiesMachine and Automotive Components IndustryMachine and Automotive Components Industry
• Existing engineering and manufacturing
tradition
• Legacy of skills available to new investors
• Component production started in the 1960’s to
supply Zastava, Serbia
• Companies primarily supply the aftermarket• Companies primarily supply the aftermarket
• Johnson Controls, Johnson Matthey, Kemet,
Teknohose, SMR, (Free Economic Zones)
Kromberg & Schubert, Hi-Tech to supply OEM’s
• Markets are Europe, Russia, Turkey, Africa
• Most companies have ISO 9001 / TS 16949
quality certification
Investment OpportunitiesInvestment OpportunitiesAgribusiness and Food Processing IndustryAgribusiness and Food Processing Industry
• Agribusiness is one of the fastest growing
sectors with more than 10% increase over the
past three years
• More than 400.000 people make whole or
part of their income from agriculture
activities
• Sector comprises 16% of national GDP
• 18.4% increase of exports in 2010
• Excellent supply
• 297 agricultural enterprises
• 192,378 family owned agricultural holdings
• EU Standards applied
Investment OpportunitiesInvestment OpportunitiesAgribusiness and Food Processing IndustryAgribusiness and Food Processing Industry
• Winegrowing and wine production accounts
for ~20% of total agricultural GDP
• More than 80 existing wineries
– Total capacity: 2,338,476hl
Wine ProductionWine Production
– Total capacity: 2,338,476hl
– Production: 100,000,000l
• Domestic cellars purchased 115,542,000kg
wine grapes in 2010
• Domestic consumption of ~15l per
inhabitant
• Major export markets: Germany, Slovenia,
Serbia, USA, Russia, China
Investment OpportunitiesInvestment OpportunitiesTextile sectorTextile sector
• Esteemed reputation of Macedonian textile
producers on the European Union market
• High flexibility and readiness to adapt to the
demands of foreign markets
• Exceptional relation between product quality
and costsand costs
• Modern equipment
• 1-2 days distance to European Union markets
• Foreign investment welcomed in the ready-
made clothing and knit production industries
Investment OpportunitiesInvestment OpportunitiesHealthcare Healthcare Sector, Medical Sector, Medical Devices Devices and Pharmaceuticalsand Pharmaceuticals
• Existing pharmaceutical industry exports to
over 30 countries worldwide
• Strong educational system, with an
abundance of medical and pharmacy
graduates
• Supportive regulatory environment • Supportive regulatory environment
• Licensing arrangements in place with many
of world’s leading pharmaceutical
companies
• Availability of serviced industrial sites
• Manufacturing tradition
Investment OpportunitiesInvestment OpportunitiesICT SectorICT Sector
• Best telecommunication networks in 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 school child; free
internet sessions provided by the 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 OpportunitiesInvestment OpportunitiesMineral ResourcesMineral Resources
• Wide range of mineral resources
– Metals: Iron, Copper, Lead, Zinc, Gold,
Silver Ferronickel, Ferrosilicon,
– Non-metalic resources: Marble, Granite,
Onyx, Gypsum, Limestone, Quartz, Silica,
Marl, Bentonite, Feldspar, Clay
• 7.4% sector growth in 2011
• 18.5% of Macedonian industrial output
• Sector employs 6% of total employees in
Macedonia
• Strong mining tradition
Summer Destinations
• Numerous tectonic, glacial and man-
made lakes, 50 in total
• Large Ohrid, Dojran and Prespa lakes
• Wartersports, archeological, wine,
eco and rural tourism
• In 2011, increase in foreign tourists
Investment OpportunitiesInvestment OpportunitiesTourismTourism
• In 2011, increase in foreign tourists
from EU of 38%
Winter Destinations
• Over 45 mountain peaks over 2.000m
• Around 70% of the territory is
mountainous, many locations have
more than 100 days of snow
• Opportunities for development and
enhancements of hotels and resorts
on many locations
TECHNOLOGICAL INDUSTRIAL TECHNOLOGICAL INDUSTRIAL DEVELOPMENT ZONESDEVELOPMENT ZONES
(TIDZs)(TIDZs)(TIDZs)(TIDZs)
Investment OpportunitiesInvestment OpportunitiesFree ZonesFree Zones
Free Zone Tetovo
Area Size: 95 ha;
Distance from Skopje - 35 km
Free Zones Skopje 1 & 2
Area Size: 145 + 95 ha;
E-75 Highway;
Next to the Int’l Airport
Free Zone Rankovce
Area Size: 40 ha;
Corridor 8
Free Zone Stip
Area Size: 208 ha;
The largest Free Zone;
Excellent logistic support
Free Zone Radovis
Area Size: 10 ha;
Main Road M6
Free Zone Strumica
Area Size: 23 ha;
Free Zone Gevgelija
Area Size: 50 ha;
85 km from the port of
Thessaloniki
Free Zone Prilep
Area Size: 68 ha;Between Prilep and Bitola
(4th and 2nd largest city)
Free Zone Struga
Area Size: 30 ha;
Next to the Int’l Airport;
170 km from Durres port
Free Zone Kicevo
Area Size: 30 ha
TAXTAXTAX RATESTAX RATES
TIDZsTIDZs Outside TIDZsOutside TIDZs
Corporate tax0%
for the first 10 years10%
Personal income tax0%
for the first 10 years10%
Value added tax 0% 18%
PRODUCTPRODUCTCUSTOMS DUTYCUSTOMS DUTY
TIDZsTIDZs Outside TIDZsOutside TIDZs
Raw materials 0% Up to 15%
Equipment 0% 5% - 20%
Fiscal BenefitsFiscal Benefits
Investment OpportunitiesInvestment OpportunitiesTechnological Industrial Development Zones Technological Industrial Development Zones -- TIDZs TIDZs
• Connection to utilities
• Subsidy of up to €500,000 towards building costs
• 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
Property tax 0.1% - 0.2% 0.1% - 0.2%
Excise taxes 0% 5% - 62%
TIDZ TIDZ ““““““““Skopje 1Skopje 1””””””””
JOHNSON CONTROLS
• $40mn automotive components plant;• 150 employees initially – increasing to 500;• Integrated circuits
JOHNSON MATTHEY
• €55mn investment• over 500 employees• catalyst production
KEMETKEMETJOHNSON CONTROLSJOHNSON MATTHEY
TEKNOHOSE TEKNOHOSE ANNOUNCING BEGINNING OF ANNOUNCING BEGINNING OF
CONSTRUCTION WORK IN TIDZ CONSTRUCTION WORK IN TIDZ ““““““““SKOPJE 1SKOPJE 1””””””””
KEMETKEMETSIGNING OF THE AGREEMENTSIGNING OF THE AGREEMENT
PRODIS GROUP PRODIS GROUP ANNOUNCING BEGINNING OF ANNOUNCING BEGINNING OF
CONSTRUCTION WORK IN TIDZ CONSTRUCTION WORK IN TIDZ ““““““““SKOPJE 1SKOPJE 1””””””””
SAMVARDHANA SAMVARDHANA MOTHERSON GROUP MOTHERSON GROUP ANNOUNCED BEGINNING OF CONSTRUCTION ANNOUNCED BEGINNING OF CONSTRUCTION
WORK IN TIDZ WORK IN TIDZ ““““““““SKOPJE 1SKOPJE 1””””””””
Thank YouThank You
AGENCY FOR FOREIGN INVESTMENTS AND EXPORT PROMOTION AGENCY FOR FOREIGN INVESTMENTS AND EXPORT PROMOTION OF THE REPUBLIC OF MACEDONIAOF THE REPUBLIC OF MACEDONIA
Nikola Nikola VapcarovVapcarov 77
1000 Skopje1000 SkopjeRepublic of MacedoniaRepublic of Macedonia
Tel.: Tel.: + 389 2 31+ 389 2 3100 11100 111
Fax: + 389 2 3122 098Fax: + 389 2 3122 098
ee--mail: mail: [email protected]@investinmacedonia.com
web: web: www.investinmacedonia.comwww.investinmacedonia.com
International Office SwedenInternational Office Sweden
Katerina Orovchanec
Head of International Office - SwedenAgency for Foreign Investments and Export Promotion of Agency for Foreign Investments and Export Promotion of the Republic of Macedonia
Riddargatan 35 , 114 57 Stockholm
Kingdom of Sweden
T: + 46 8 661 18 30
F: + 46 8 661 03 25
M:+ 46 73 326 2968
E-mail: [email protected]