Transcript FIPA BiH - Vienna Economic Forum

Director
Haris Bašić
FIPA SUPPORT
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Servicing potential and existing investors, especially during
the process of business registration
Legal advises for foreign investors
Providing of all information related to BiH business
environment
Investor’s after-care
Policy advocacy
Analysis and presentation of attractive sectors for foreign
investments
Good co-operation with all levels of Government in BiH
OUR SERVICES ARE FREE AND CONFIDENTIAL!
Bosnia and Herzegovina – facts and figures
• Located in the
West Balkans – SE Europe
• Territory: 51,209 sq.km
• Territorial units:
• two entities – Federation B&H
•
Republika Srpska
• one district – Brčko District B&H
• Climate: continental, sub-continental,
Mediterranian
• Population: about 4 million
GENERAL ECONOMIC INDICATORS (2000 – 2005)
Indicators
2000
2001
2002
2003
2004
2005
5,6
6,1
6,5
6,8
7,5
8,0
1.475
1.603
1.690
1.778
1.950
2.095
• Real GDP growth rate, %
5,5
4,5
5,5
3,0
6,0
7,5
• Industrial production growth rate, %
8,8
12,2
9,2
4,8
9,0
10,0 1
• Annual inflation rate, %
4.8
3.1
0.4
0.6
0.4
3.7
• Annual unemployment rate, %
39,7
40,3
40,9
42,0
47,2
31,1 2
• Average monthly net salary, €
190
209
228
247
258
275
• Foreign reserves, million €
522
1.378
1.260
1.422
1.768
2.144
• GDP, billion €
• GDP per capita, €
TOTAL FDI INFLOW million €
159
140
309
338 3
Source : Central Bank B&H, MOFTER
1 Statistical offices in B&H produce only data for Industrial Production Growth rate on entity levels.
Therefore, B&H Industrial Production Growth rate is estimation.
2 The Labour Force Survey was for the first time carried out in April 2006, as an annual survey
3 Source: Central Bank B&H
618
421 3
SARAJEVO AND BANJA LUKA STOCK EXCHANGE
In Million EUR
Turnover (EUR)
2002
2003
2004
2005
I-VI
2006
TOTAL
The Sarajevo Stock
Exchange
21,31
60,79
102,84
283,95
91,58
560,47
Banja Luka
Stock Exchange
3,75
37,08
51,54
142,19
64,04
298,60
Sources: SASE – Sarajevo Stock Exchange and Banja Luka Stock Exchange
MAJOR FOREIGN TRADE
PARTNERS (2005)
Volume
(in 000 €)
Country
TOTAL
CROATIA
TOP INVESTOR COUNTRIES IN BIH
(1994 – 2005)
TOTAL AMOUNT 2.2 billions €
100%
7.621.480
21,8%
1.664.393
294,00
Austria
281,21
SERBIA &
MONTENEGRO
12,7%
973.928
GERMANY
11,5%
881.988
SLOVENIA
10,1%
773.978
ITALY
9,4%
718.815
AUSTRIA
6,1%
465.421
HUNGARY
4%
307.059
SWITZERLAND
2,3
182.161
TURKEY
1,9
150.529
UNITED KINGDOM
1,7
131.454
CZECH REPUBLIC
1,6
128.474
UNITED STATES
1,6
123.258
POLAND
1,4
112.735
39,37
RUSSIAN
FEDERATION
1,4
110.604
29,65
FRANCE
1,3
102.950
90%
6.827.748
TOP 15
Croatia
252,58
Lithuania
221,39
Netherlands Antili
201,45
Slovenia
151,85
Germany
50,11
Netherlands
39,37
Serbia and Montenegro
Switzerland
Italy
milion €
FDI in BiH by sectors
(May 1994 – June 30, 2006)
Non-banking
financial sector
9%
Other
1%
Production
41%
Banking
30%
Other services
6%
Transport
1%
Tourism
2%
Source: Central Bank of BiH, MOFTER
Trade
10%
Top 20 Foreign Investment
1994- June, 2006 (million EUR)
No
Source: MOFTER
Foreign Investor
Home Country
Host Company
1
Uždaraji Akcione Bendrove U.B. Investicine Grupe
Lithuania
Tvornica glinice "BIRAČ" AD-Zvornik
238.05
2
Mittal Steel Holding V.V.
Hol. Antili
"Mittal Steel Zenica" d.o.o. Zenica
192.11
3
Hypo Alpe-Adria-Bank AG
Austria
4
HT- Hrvatske telekomunikacije
Amount
111.76
"Hypo Alpe-Adria-Bank" d.d. Mostar
61.35
"Hypo Alpe-Adria-Bank" AD Banja Luka
50.41
Croatia
57.86
Eronet Telekomunikacije d.d. Mostar
35.28
Eronet Pokretne komunikacije d.d. Mostar
22.59
5
LIVAR d.d. Ivančna Gorica
Slovenia
"JELŠINGRAD" Livnica čelika a.d. Banja Luka
46.03
6
Zagreb. banka d.d.
Croatia
UniCredit Zagrebačka banka d.d. Mostar
39.95
7
PS Mercator-Ljubljana
Slovenia
"Mercator BH" d.o.o. Sarajevo
36.80
8
Petrol-Ljubljana
Slovenia
"Petrol BH Oil Company" d.o.o. Sarajevo
35.18
9
Heidelberger Zement AG
Germany
"Tvornica cementa" d.d. Kakanj
25.06
10
CC Beverages Holdings II B.V.
Netherland
"Coca Cola HBC-BH" d.o.o. Sarajevo, Hadžići
23.62
11
Finvest Co-Čabar
Belgium
"Finvest Drvar" d.d. Drvar
22.11
12
V.I. Sports Consulting
Belgium
"Mico" d.o.o. Banja Luka
20.45
13
Alas International Baustoff. AG
Austria
"Fab. cementa Lukavac" d.d. Lukavac
18.31
14
Ostereich. Volksbanken
Austria
"Volksbank BH" d.d. Sarajevo
17.38
15
Hemofarm a.d. Vršac
Serbia and Monte Negro
"Hemofarm" d.o.o. Banja Luka
17.15
16
OMV Refining & Marketing GmbH
Austria
"INTEROIL" d.o.o. Srebrenik
17.08
17
Global Infrastructure Holding LTD
Great Britain
Global Ispat Koksna industrija d.o.o. Lukavac
15.92
18
Bank Austrija
Austria
HVB-Banka Bosna i Hercegovina d.d. Sarajevo
15.00
19
KCIC
Kuvajt
"UNITIC" d.o.o.Sarajevo
14.99
20
Dubai I.B.
UAE
"Bosna Bank International" d.d. Sarajevo
13.25
FDI INFLOWS IN SOUTH EAST EUROPE (mil. $)
Slovenija
Croatia
Serbia and
Montenegro
Makedonia
Bulgaria
Albania
BiH4
2002
1 686
1 126
137
78
905
135
265
2003
337
2 042
1 360
95
2 097
178
381
2004
516
1 076
966
151
2 488
426
663
2005
N/A
1 605,81
1 2862
N/A
2 324,23
N/A
523
Serbia and
Montenegro
Makedonia
FDI PER CAPITA (in $)
Slovenija
Croatia
Bulgaria
Albania
BiH4
2002
844,26
253,75
16,88
38,61
113,55
42,19
69,23
2003
168,75
460,17
167,53
47,03
263,11
55,63
99,43
2004
258,39
242,48
118,99
74,75
312,17
133,13
172,52
2005
N/A
361,87
158,41
N/A
291,61
N/A
136,06
Source: UN World Investment Report 2005
1
Source: Hrvatska narodna banka
Source: SIEPA
3 Source: InvestBulgaria Agency
4 Source: Centralana banka BiH
2
Why invest in BiH?
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Economic Accelerated Reform Process
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Fast improvement of business climate
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Stable financial sector
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Unique VAT rate of 17%
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Availability of skilled, educated and competitively priced
labour force
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An abundance of premises and sites: 7 free zones
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Long industry tradition and experience of joint ventures
(engineering, metal)
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Negotiations with WTO
Why invest in BiH?
Financial Stability

The lowest inflation in SEE
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Most stable currency in Southeast Europe
(pegged to EURO, 1KM =0.51 EUR)
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Permanent growth of GDP 6 % per year
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On the May 17, BiH was given “B2” credit rating with a
stable perspective by the Moody’s Agency
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Large inflow of foreign banks – currently, foreign
ownership in banking sector in BiH is 85%
FREE TRADE
AGREEMENTS
PREFERENTIAL
EXPORT REGIME
AGREEMENTS ON AVOIDANCE OF
DOUBLE TAXATION
AUSTRIA
BELGIUM AND
LUXEMBOURG
BELARUS
CROATIA
CZECH
REPUBLIC
CHINA
DENMARK
EGYPT
ITALY
FRANCE
FINLAND
IRAN
MALAYSIA
GREECE
GERMANY
MOLDOVA
NORWAY
HUNGARY
ITALY
PAKISTAN
PHILIPPINES
IRAN
INDIA
POLAND
ROMANIA
JORDAN
KUWAIT
SERBIA AND
MONTENEGRO
SLOVAKIA
MACEDONIA
MALAYSIA
MOLDOVA
NETHERLANDS
SLOVENIA
SWEDEN
TURKEY
UNITED KINGDOM
OPEC FOUND
PAKISTAN
PORTUGAL
QATAR
ROMANIA
SERBIA AND
MONTENEGRO
SLOVENIA
SWITZERLAND
SPAIN
SWEDEN
TURKEY
USA (OPIC)
UKRAINE
UNITED KINGDOM
ALBANIA
ALL 25 EU COUNTRIES
BELGIUM
CROATIA
BULGARIA
USA
CHINA
ROMANIA
AUSTRALIA
CZECH
REPUBLIC
CYPRUS
DENMARK
CROATIA
NEW ZEALAND
EGYPT
FINLAND
SERBIA AND
MONTENEGRO
SWITZERLAND
FRANCE
GERMANY
NORWAY
HUNGARY
RUSSIA
JAPAN
MAKEDONIJA
MOLDOVA
CANADA
AGREEMENTS ON PROMOTION AND
PROTECTION OF INVESTMENT
UNITED ARAB EMIRATES
Investment Environment
Favourable Legislative Treatment
 FDI Law
 National treatment of foreign investors
 Exemption from payment of custom duties and custom fees for
investment
 Repatriation of profits
 Protection against nationalization, expropriation or similar measures
 Right to freely employ foreign nationals, subject to the labour and
immigration laws in Bosnia and Herzegovina
 Tax incentives
 Five year exemption from payment of tax on profits in Federation
BiH
 Corporate organization
 There are no citizenship/nationality limitations for partners or the
members of the management and supervisory boards
Investment potentials –
Attractive economic sectors
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Auto-components
Metal industry
Energy sector
Tourism
Agriculture and Food processing industry
ICT
Wood industry
Infrastructure
OUR GOALS
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Sustain economic growth
Progress in reforms and economical liberalization
Creating enviromant for public private partnerschips
Creating of industrial parks and eraes
Creating a friendly business environment
Removal of administrative barriers
Implementation Strategy for promotion – attraction
investmants in BiH
Advantages are:
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Macro economic stability
The lowest inflation in the region
The fastest GDP growth in the region
Stable Currency exchange rate
Completely reformed banking sector
Reform of tax system, including VAT system, created
unique tax system in the Country.
Favorable legal framework for foreign investment.
Branilaca Sarajeva 21
Phone: ++387 33 278 080
Fax:
++387 33 278 081
E-mail: [email protected]