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Business Friendly Slovakia Presented by Robert Simoncic, CEO SARIO.

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Presentation on theme: "Business Friendly Slovakia Presented by Robert Simoncic, CEO SARIO."— Presentation transcript:

1 Business Friendly Slovakia Presented by Robert Simoncic, CEO SARIO

2 Slovakia – Growing Heart of Europe Strategic Geographic Location Source: SARIO, 2011 I Establishment: 1st January 1993 I Official name: Slovak Republic I Area (km2): 49,035 I Population: 5,379,000 I Capital: Bratislava I Member of: OECD, WTO, NATO, EU, Schengen area I Official currency: EURO I Official Language: Slovak I Government: Parliamentary democracy I Election term: 4 years I Neighbours: Austria, Czech Republic, Hungary, Poland, Ukraine I Time zone: GMT + 1hour

3 Eurozone Member – One of the few from CEE Euro since 1 st January 2009 EURO IMPLEMENTATION IMPACT: Limitation of Foreign Exchange Risk Lowering Transaction Costs Growth in Foreign Trade Increased Financial Stability Source: SARIO, 2011

4 2010: Highest GDP Growth in the Eurozone Source: Eurostat, February 2011

5 COUNTRY RATINGS (Sovereign foreign currency ratings) SLOVAKIA CZECH REPUBLIC HUNGARYPOLANDBULGARIAROMANIA A+ stable A positive BBB- negative A- stable BBB stable BB+ stable A1 stable A1 stable Baa3 negative A2 Stable Baa3 positive Baa3 stable A+ stable A+ positive BBB negative A- Stable BBB- negative BB+ stable A+ stable A stable BBB+ stable A- Stable BBB stable BBB- negative A stable A stable BBB stable A- stable OECD Country risk Source: com,www.moodys.com, Best Country Credit Ratings in the CEE

6 Source: World Bank Group – Doing Business Report 2011 Registering property Paying taxes Enforcing contracts Protecting investors Closing business Construction permits Methodology The Doing Business project provides objective measures of business regulations and their enforcement across 183 economies and selected cities at the subnational and regional level. Starting a business Trading across borders Regional Leader according to World Bank Getting credit

7 Low Labour Cost & High Labour Productivity Labour productivity 744,50 Slovakia 957, CZK Czech Republic 785, ,96 HUF Poland 739, HUF Hungary Data for 2009 Source: National Statistical offices of Czech republic, Hungary, Poland, Slovakia, Bulgaria, Romania exchange rate (as of 7 October 2010) EUR 1 = 24,530 CZK, 3,949 PLN, 270,33 HUF, 4,2720 RON, 1,9558 BGN GDP (in PPS) per hour worked as compared to EU15 (100) Source: Eurostat 2010 Gross monthly salary 299, BGN Bulgaria 431, RON Romania

8 Corporate Income Tax Personal Income Tax Value Added Tax - VAT Dividend tax Inheritance and Gift Tax Real Estate Transfer Tax R epatriation of profits Simple and Fair Taxes 19% Flat Tax Rate Source: SARIO % 0% 100% 20%

9 Top-Notch Sectors of Slovakia Automotive 3rd in world car production in cars/1000 inhabitants Electronics Leading Slovak Exporter – driver of economic and technological growth SSC/ICT SR is becoming a hive of SSC and ICTs

10 Key Sector: Automotive Car Production in Slovakia Source: SARIO 2010, Slovak Automotive Industry Association ZAP,VW, KIA, PSA-Peugeot 1 st Place in cars/1000 inhabitants in World Car Production/1000 inhabitants 3 rd Place in cars/1000 inhabitants

11 Key Sector: Electronics Source: SARIO, 2010 I Assembly of Bravia models for the European market doubled in 2008 to 4mil. I 3D TV from April 2010 I Production of LCD 10 mil pcs. I Assembly of LCD I Logistic center I Europe service center I 3D TV from February 2010 I Production of LCD moduls I Only 1 in Europe I Headquarter for Europe I 3000 new jobs I Investment 191,3 mil Eur

12 Key Sector: Information Communication Technologies 33 established Information-Communication Technological Centers Shared Service Centers Employing over 20,000 people with college/ university education excellent language skills In 2009 the ICT sector was more contributive for the state treasury than all companies from the entire Slovak industry Source: IT Association of Slovakia, 2011

13 Key sector ICT locations– Highly Competitive Segment I Unique clustering of shared services and IT support creating a fast-paced, enthusiastic IT environment I Advanced wireless technologies – Flash-OFDM, WiMAX, HSDPA – covering large majority of the population I High population density and low deployment costs making development and experiments easier than ever Founding mebembers of IT Valley Košice: Technical University of Košice University of Pavol Jozef Šafárik Košice T-Systems Slovakia NESS Slovakia Siemens PSE VSE IT služby Cisco Systems Slovakia Microsoft Slovakia Slovak Telecom Kosice Self- governing Region Founding mebembers of IT Valley Košice: Technical University of Košice University of Pavol Jozef Šafárik Košice T-Systems Slovakia NESS Slovakia Siemens PSE VSE IT služby Cisco Systems Slovakia Microsoft Slovakia Slovak Telecom Kosice Self- governing Region

14 R&D in Slovakia – Discover the Potential Availability of Scientist and engineers Production process sophistication Source: Global Competitiveness Report , World Economic Forum 2010 Slide 1: To what extent are scientists and engineers available in your country? (1 = not at all; 7 = widely available) Slide 2: How sophisticated are the production services? (1 = not at alllabor-intensive methods or previous generations of process technology prevail; 7 = highlythe worlds best and most efficient process technology prevails)

15 Success Stories & FDI Inflow to Slovakia Country of Origin Investor USA (140) US Steel, Emerson, DELL EMEA Centre of Excellence, Whirlpool, IBM International Services Centre, HP European IT Operation Centre, Johnson Controls R&D Centre, AT&T, Accenture Technology Solutions, Getrag Ford (Deutschland) ChinaLENOVO TaiwanAU Optronics, ESON, Foxconn, Delta Electronics GermanySiemens, Volkswagen, T-Systems JapanSony, Panasonic, Yazaki, Mitsui Sumitomo KoreaSamsung, KIA Motors, Hyundai Mobis FrancePSA Peugeot Citroen, Alcatel R&D Source: National Bank of Slovakia 2010, SARIO, 2010

16 Slovakia success stories Source: SARIO, 2010

17 SARIO Who We Are Government Funded Organization under the direction of the Slovak Ministry of Economy MISSION EXECUTED THROUGH 3 CORE SECTIONS Foreign Direct Investment Foreign Trade Structural Funds of the EU

18 Thank you for your attention! For more information, you can contact us at: Address: Slovak Investment and Trade Development Agency Martincekova Bratislava Slovak republic Tel.: Best European investment agency for high-tech investment (Awarded during the Global Investment Conference in La Baule in 2007)

19 INVESTMENT AID

20 BASIC FEATURES OF THE INVESTMENT AID I Objective: To Encourage Direct Investments -in less developed regions -with high added value I Eligible Investments: INDUSTRY R&D SSC I Administrative Body: Ministry Of Economy I Legal Framework: Act On Investment Aid

21 INVESTMENT AID GRANTED IN I 108 supported investment projects I 6.1 billion of eligible investments I of newly created jobs I 1.2 billion of aid granted I 20% - average aid per investment I – average aid per 1 newly created job

22 INVESTMENT AID GRANTED TO US INVESTORS I 12 supported investment projects I 675 million of eligible investments I 4806 of newly created jobs I 88 million of aid granted I 14% - average aid per investment I – average aid per 1 newly created job

23 NEW RULES OF AID FROM JUNE 2011 I Higher transparency & predictability - possible volumes and forms of aid exactly set for each district I More favourable conditions for all types of project to be supported - lower requirements on minimal investment, longer period of project I More flexibility for supported projects - possibility of reasonable changes during implementation I Faster approval procedure -setting shorter periods for authorities involved in procedure I Long-term support - no limitation for support of expansion after first project finished I Higher efficiency for budget & motivation for companies - availability of 10 year tax relief

24 NEW RULES OF AID FROM JUNE 2011 I INDUSTRY - basic condition - project of the new factory or expansion - min. amount of investment 14 mil., 7 mil. or 3.5 mil. (depending on unemployment rate in the region)

25 NEW RULES OF AID FROM JUNE 2011 R&D center - basic condition - project of the new center or expansion - min. amount of investment 500 ths I SSC - basic condition - project of the new center or expansion - min. amount of investment 400 ths

26 NEW RULES OF AID FROM JUNE 2011 Forms of Investment aid Income tax relief - 10 years Cash grant (up to 50% in some districts) Contributions on new jobs (up to eur per employee )


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