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

3 Eurozone Member – One of the few from CEE
since 1st 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
In 2010, based on first estimates, Slovakia had the highest economic performance among the Eurozone countries, indicating the stable economic environment supported by business friendly policies. In the entire European Union, Slovakia has the second position after Sweden having 4.3% growht. Source: Eurostat, February 2011

5 (Sovereign foreign currency ratings)
Best Country Credit Ratings in the CEE COUNTRY RATINGS (Sovereign foreign currency ratings) SLOVAKIA CZECH REPUBLIC HUNGARY POLAND BULGARIA ROMANIA A+ stable A positive BBB- negative A- BBB BB+ A1 Baa3 A2 Stable BBB+ OECD Country risk 2 4 Aktualizované: 12/2010 Zdroj: S&P: Moody´s: after registration on Fitch: after registration on JCR: R&I Now: OECD Country risk: Source: com,www.moodys.com,

6 Trading across borders
Regional Leader according to World Bank Methodology Starting a business Construction permits Registering property Paying taxes Enforcing contracts Protecting investors Aktualizované: 11/2010 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. Closing business Trading across borders Getting credit Source: World Bank Group – Doing Business Report 2011 6

7 Low Labour Cost & High Labour Productivity
Gross monthly salary Labour productivity 957,5 € CZK Czech Republic 785,75 € 3 102,96 HUF Poland 744,50 € Slovakia 739,23 € HUF Hungary 431,88 € 1 845 RON Romania Aktualizované: 10/2010 Zdroj: Czech Republic: Poland: Exactly: Tabl. 1 (część 2) -Q16 Hungary: Slovakia: Bulgaria: Rumania: Labour Productivity: Labour productivity per hour worked - GDP in Purchasing Power Standards (EU-15 = 100) by Eurostat Short Description: Gross domestic product (GDP) is a measure for the economic activity in an economy. It is defined as the value of all goods and services produced less the value of any goods or services used in their creation. GDP per hour worked is intended to give a picture of the productivity of national economies expressed in relation to the European Union (EU-15) average. If the index of a country is higher than 100, this country level of GDP per hour worked is higher than the EU average and vice versa. Basic figures are expressed in PPS, i.e. a common currency that eliminates the differences in price levels between countries allowing meaningful volume comparisons of GDP between countries. Expressing productivity per hour worked will eliminate differences in the full-time/part-time composition of the workforce. 299,11 € 585 BGN Bulgaria GDP (in PPS) per hour worked as compared to EU15 (100) Source: Eurostat 2010 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

8 19% Flat Tax Rate 19% 20% 0% 100% Simple and Fair Taxes
Corporate Income Tax Personal Income Tax Value Added Tax - VAT Dividend tax Inheritance and Gift Tax Real Estate Transfer Tax Repatriation of profits 19% 20% 0% 100% Source: SARIO 2011

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 1st Place in 2008 106 cars/1000 inhabitants in World Car Production/1000 inhabitants 3rd Place in 2009 86 cars/1000 inhabitants Source: SARIO 2010, Slovak Automotive Industry Association ZAP,VW, KIA, PSA-Peugeot

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

12 Information-Communication Technological Centers
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
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 Unique clustering of shared services and IT support creating a fast-paced, enthusiastic IT environment Advanced wireless technologies – Flash-OFDM, WiMAX, HSDPA – covering large majority of the population High population density and low deployment costs making development and experiments easier than ever

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 all—labor-intensive methods or previous generations of process technology prevail; 7 = highly—the world’s 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) China LENOVO Taiwan AU Optronics, ESON, Foxconn, Delta Electronics Germany Siemens, Volkswagen, T-Systems Japan Sony, Panasonic, Yazaki, Mitsui Sumitomo Korea Samsung, KIA Motors, Hyundai Mobis France PSA Peugeot Citroen, Alcatel R&D Source: National Bank of Slovakia 2010, SARIO, 2010 15

16 Slovakia success stories
Source: SARIO, 2010

17 SARIO Who We Are MISSION EXECUTED THROUGH 3 CORE SECTIONS
Foreign Direct Investment Government Funded Organization under the direction of the Slovak Ministry of Economy 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 17 Bratislava Slovak republic Tel.: „Best European investment agency for high-tech investment“ (Awarded during the Global Investment Conference in La Baule in 2007) 18

19 INVESTMENT AID

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

21 INVESTMENT AID GRANTED IN 2002-2010
108 supported investment projects 6.1 billion € of eligible investments of newly created jobs 1.2 billion € of aid granted 20% - average aid per investment € – average aid per 1 newly created job

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

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

24 NEW RULES OF AID FROM JUNE 2011
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) TV VT KS RA RS PT LC VK SO KK SB PO GL LE BJ SK SP ML HE SV PP SN BR LM TS NO CA DK RK MT ZA KM BY PB PU IL TN TR BB ZV DT ZC BS KA LV NR ZM TO PE BN NM PN TT GA DS MA SE SA PK SC BA HC SL KE MY KN NZ PD ZH RV MI 14 mil € 7 mil € 3.5 mil €

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 SSC - basic condition - 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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