Transcript invest in serbia

INVEST IN SERBIA
SERBIA
SERBIA
KEY COUNTRY DATA
 Area: 88,361 km²
 Population: 9.5 million
 Capital: Belgrade (1.6 million)
 State form: Democratic republic
 President: Mr. Boris Tadic
 Prime Minister: Mr. Mirko Cvetkovic
 Currency: Serbian Dinar (RSD)
 GDP: $52.18 billion (2008)
 GDP pc: $7,054 (2008)
 Internet domain: .rs
SERBIA
KEY DRIVERS TO FDI IN SERBIA
 Enhanced Investment Stability
 Booming Market Potential
 Quality Human Resources
 Upgraded Transportation Infrastructure
 Low Overhead Costs
 Attractive Investment Incentives
 Key Industries
SERBIA
ENHANCED INVESTMENT
STABILITY
 National treatment of foreign companies
 Free transfer of financial and other assets, including profits and
dividends
 No industry restrictions on foreign investment
 Bilateral Investment Treaty with the USA in effect since 2001
SERBIA
BOOMING MARKET POTENTIAL
 Duty-free access to a 1
billion people market
 A member of CEFTA in
South East Europe
 The only country outside
the Commonwealth of
Independent States with
a Free Trade Agreement
with Russia
 A preferential trade
regime with the EU and
USA for most products
and services
 FTA with Belarus signed
in April; the Agreement
with Turkey to take
effect as of 2010
SERBIA
LOW OVERHEAD COSTS
SERBIA
LOW OVERHEAD COSTS
 The average salary–50%
of the level in CEE
countries
 Tax burden totaling about
65% of the net salary;
reductions possible
through tax incentives
 The 8:1 salary ratio by
specific industries; 4:1
ratio by municipalities
SERBIA
Readily available workforce
SERBIA
ATTRACTIVE INVESTMENT
INCENTIVES
 Financial incentives:
 Automotive, Electronics, IT: up to 25% of the total investment
 The minimum investment amount–€200 million and 1,000
employees
 Production: from €2,000 up to €5,000 per new job created
 The minimum investment amount–between €1 million and €3
million and 50 employees
 Services: from €2,000 up to €10,000 per new job created
 The minimum investment amount–€0.5 million and 10
employees
 R & D: from €5,000 up to €10,000 per new job created
 The minimum investment amount–€0.25 million and 10
employees
SERBIA
ATTRACTIVE INVESTMENT
INCENTIVES
 Tax incentives:
 A 10-year corporate profit tax holiday for investment over €7
million and 100 employees
 Corporate profit tax reduction up to 80% of the fixed assets
investment
 Corporate profit tax reduction of 100% of the gross salary for
new employees
 Salary tax exemptions for employees under 30 and over 45
years
 Social insurance charges exemptions for employees under 30
and over 45 years
 Customs-free imports of equipment based on foreign
investment
SERBIA
ROBUST RECENT GROWTH
SERBIA
Perspective sectors
Automotive
The most extensive tradition in
automotive industry in the region –
1939
Availability of design, engineering,
manufacturing, testing and
maintenance companies : Zastava
OEM
Experienced and well trained
workers
Cooperation and production
experience with EU and USA
based companies : Fiat, GM,
FORD, PSA, etc
SERBIA
Perspective sectors
Automotive
Engine components
mostly not assemblies flywheels, valves,
camshafts (significant
inflow of FDI)
Plastic and rubber parts
– various exterior and
interior parts (mostly
produced by domestic
companies)
Electrical and electronic
– mostly wire harness
but also batteries and
starter motors
(significant inflow of
FDI)
Perspective sectors
Renewable Energy
SERBIA
Wind
5%
Potentials
(Mtoe)
Biomass
2.40
SHPP
0.40
Solar
0.64
Geothermal
0.20
Wind
0.19
TOTAL
3.83
Geothermal
5%
Solar
17%
SHPP
10%
Biomass
63%
Serbia ICT - Overview
SERBIA
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Over 2,300 ICT companies
currently operate in Serbia
More than 60,000 people
employed in the sector
Telecom market revenue
around 1.47 billion EUR
and IT market revenue
around 460 millions EUR
in 2007
Market share of the GDP
was around 4.7% in 2007
More than EUR 1.5 billion
invested in Serbia’s ICT
sector over last 5 years
SERBIA
Electronics
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Intensive development of
embedded electronics and EMS
(electronic manufacturing services)
sectors
Embedded.rs – Electronics industry
cluster established in 2008
(currently 12 members and
expending)
Over 1700 registered companies in
electronics industry covering
sectors such as production of
electrical material and material for
electro-installation, home
appliances, medical electric
equipment, telecommunications,
computers and informational
technologies, systems of technical
protection
SEE electronics market value in
2008 over 10 billion
Electronics-regional
competitiveness
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Textile and Clothing Industry
•Long standing tradition of Textile industry
•High quality goods at competitive prices
•Quick Delivery and
Minimum Orders
•Competitive labor costs with the industry
average at € 180
•Investment opportunities in primary
production (more than 70% of raw materials
used in textile and garment production are
imported)
•Fashion industries of France, Italy and
Germany use Serbian production capacities
(Zara, Mango, Benetton, Tommy Hilfiger,
Hugo Boss)
SERBIA
Leather and Shoe Industry in
Serbia
•Great tradition in shoe
production industry and is well
known for its results (Salamander,
Bata, etc.)
•The latest fashion trend delivery
due to geographical proximity to
other markets
•International fashion industries
have repeatedly used production
capacities in the country
(production for Prada, Gucci,
Janet & Janet, Nero Giardini, etc.)
•Competitive labor prices with the
industry average at € 180
•Almost 70% of the total industry
export goes into EU countries
SERBIA
Food and Wine
In figures :
 5 115 000 ha of Agricultural Land
 4 253 000 ha of Arable Land
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67 000 ha of Vineyards
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778 961 agricultural estates
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90 % share of privately owned arable land
 529 326
people permanently employed in Agriculture sector
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10.82 % share of agriculture in GDP
SERBIA
Food and Wine
Fruits
Plums
No of trees
Cherries (sweet)
Cherries (sour)
Peaches
Vegetables
Annual production (t)
14,4
650.000
5.800,0
85.000
15.500.000
15,5
245.000
1.800.000
16,8
29.000
10.000.000
12,9
100.000
4.000.000
15,3
63.000
4.800,0
38.000
14,0
22.000
14.700
Strawberries
Apricots
Average yield (kg)
42.600.000
Raspberries
Apples
Planted area (ha)
8.000
1.700.000
No of trees
Planted area (ha)
Average yield (kg)
Annual production (t)
Cabbage
21.240
13.200,0
300.520
Potato
81.172
10.400,0
843.545
Cucumber
8.755
7.070,0
62.000
Carrot
7.623
8.700,0
66.000
Watermelon
16.000
16.100,0
255.000
Onion
19.000
7.500,0
150.000
Tomato
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Grapes and Wine
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60 000 ha of vineyards
345 000 tones of grapes in 2008
193 000 000 liters of wine
International varieties: Sauvignon, Italian Riesling, Cabernet,
Chardonnay, White and Red Burgundy, Hamburg, Muscat, Afus Ali
Indigenous varieties : Belgrade Seedless, Prokupac, Vranac,
Tamjanika, Krstac, Smederevka, Dinka
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How to start
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One stop shop for enterprise registration
EUR 500 minimal capital for LLC
Up to 3 days to complete the procedure
More on Serbian Business Register web site
www.apr.gov.rs
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Investment locations
• Industrial estates in most of Serbian
municipalities
• 4 Free zones operating in the moment, up to 10
to be established
• Up to EUR 10 per m2 of industrial land, 99 year
lease, 4-6 months from LoI to commencement of
construction works.
• World renown construction and construction
material industry
SERBIA
SIEPA SERVICES
 Free-of-charge assistance in all investment project stages; the
Agency specialized in Greenfield ventures
 An investment portfolio in excess of €2 billion
 Coca-Cola, Ball Corporation, JTI, Grundfos, Knauf among major
clients
SERBIA
CONTACT US
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