1. China – Serbia Building on Success1
Serbia Investment and Export Promotion Agency
China – Serbia
Building on Success
Mr. Nikola Jankovic
Assistant Director for Investment Projects
Belgrade, 11. June 2015
PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2015.

2. Presentation Outline Serbia – Political Framework Serbia – PR China
Foreign Direct Investment (FDI) in Serbia
Why Invest in Serbia?
About SIEPA (Serbia Investment and Export Promotion Agency)

3. New Government, Stable and Proactive3
New Government,
Stable and Proactive
New government determined to improve the business climate.
Economic reforms, fiscal and budget consolidation.
New set of laws including Labor Law, Law on Bankruptcy, Law on Privatization, Law on Planning and Construction.
Support for investments, focus on new employment.
On-going EU accession negotiations, full membership expected in 2020.

4. Serbia – China
China is in Top 30 net investors in Serbia in period*
FDI stock: €60 million*
*Source: National Bank of Serbia
**Source: SIEPA, 2015

5. Serbia – China
Exports mostly include cork and wood, machinery and equipment, plastics, paper and paperboard, vegetables and fruits, footwear, furniture, and telecommunications.
Imports list is topped by telecommunications and sound-recording and reproducing apparatus and equipment, office machines, electrical machinery and equipment, industrial machinery and equipment, apparel and clothing accessories.
Source: Statistical Office of the Republic of Serbia

6. Success in Attracting FDI6
Success in Attracting FDI
Since year 2000, Serbia has attracted more than €24 billion of inward foreign direct investment.

7. Success in Attracting FDI7
Success in Attracting FDI
12,179 new jobs
63 new projects
According to EY*, Serbia was one of Europe’s favorite investment locations in CEE in The success continued in number of new jobs was up by 18%, placing Serbia on the 5th position in Europe, while 63 new projects made Serbia the second most attractive location in CEE, second only to Poland.
* EY European Attractiveness Survey 2014

8. Key Investors EU countries dominate the FDI environment 8
Source: SIEPA, 2015

9. 9
Key Sectors
Food, automotive and manufacturing are the most attractive sectors
Source: SIEPA, 2015

10. Top Investment Sectors Automotive
1010
Top Investment Sectors
Automotive
Leading investment sector by number of projects;
Automotive products top export item, as of 2013;
Tradition of over 70 years;
Available, experienced, educated and competitively priced labor;
Well developed infrastructure.

11. Top Investment Sectors Food
1111
Top Investment Sectors
Food
2nd most atractive sector by number of projects;
Excellent agricultural land – opportunity for investments in primary production;
Over 30% of world’s raspberries grown in Serbia;
Excellent position to cover SEE market;
Excellent conditions to serve the Russian market.

12. Top Investment Sectors Clothing
1212
Top Investment Sectors
Clothing
One of Serbia's top exporting sectors;
FDI projects created more than 10,000 new jobs;
Abundant supply of experienced labor;
Salaries provide cost effective production;
Available Brownfield locations.

13. Top Investment Sectors Metalwork and Machine Building Industry
1313
Top Investment Sectors
Metalwork and Machine Building Industry
One of Serbia’s core industries
with the longest manufacturing
tradition;
Most of the companies export-
oriented;
Manufacturers with
internationally acknowledged
quality and competitive prices;
Growing sector by the number of
FDI projects;
Highly-skilled workers and low
labor costs;
Quick and easy access to the key
markets - EU, SEE and Middle
Eastern customers.

14. Top Investment Sectors Electronics
1414
Top Investment Sectors
Electronics
Strategic sector for Serbia;
Long tradition stepped up by Siemens, Eaton, Panasonic, Gorenje, etc.;
Development of innovation technology parks;
Strong university centers in Belgrade, Nis and Novi Sad.

15. Top Investment Sectors Wood and Furniture Industry
1515
Top Investment Sectors
Wood and Furniture Industry
Top-quality raw base materials;
Long tradition in wood
processing and supplying of
international buyers;
Duty-free export access to Russian, EU and SEE market;
Strong local demand;
Production of massive furniture is a growing sub-sector;
Large opportunities in sawn wood, engineered wood products, furniture, and paper production;
Furniture industry is one of the few recording trade surplus of over €100 mil. 

16. 1616
Why Invest in Serbia?

17. Commitment to Education
Around 47,000 university and college graduates, and 75,000 high school graduates every year.
Top quality technical education at both high school and university level.
Over 100,000 registered unemployed hold either university or college degree.
Strong command of the English language. Serbia was ranked 4th out of 76 countries in Business English proficiency by BEI*.
Young graduates speak other languages, primarily French, Italian, German, and Russian.
“This initiative demonstrates our confidence and trust in Serbia, its industry, management competence and the skill of its workers”
Sergio Marchionne, CEO
PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2011.
*Business English Index, Source: Global English Corporation, 2012

18. Technical Education Centers
PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2010.

19. Free Trade Agreements European Union EFTA Russia Kazakhstan CEFTA
1919
Free Trade Agreements
European Union
EFTA
Russia
Kazakhstan
CEFTA
Turkey
Belorussia

20. 2020
Competitive
Tax Environment
Source: National IPA’s 2014

21. Tax Incentives Corporate Profit Tax
2121
Tax Incentives
Corporate Profit Tax
10-year tax holiday for investments over €8.5 milion, 100 new jobs;
Reduced Salary Load
New employment entitles employers to a sizable relief of taxes and
contributions paid on net salary from the moment of employment
until June 30, 2016.
1-9 new jobs: 65% reduction;
10-99 new jobs: 70% reduction;
100+ new jobs: 75% reduction;
This reduces the total salary load to very competitive 20%*.
*an estimate for an average salary in Serbia.

22. 2222
Low Operating Costs
One of the most competitive locations in Europe, according to Eurostat.
Among 37 European countries the lowest cost of electricity, gas, other fuels, postal services, landline telephony, fax service, and maintenance of motor vehicles costs.
Serbian cities always on Financial Times´ list of the Most Cost Effective Cities of the Future.
Source: Vienna Institute, 2014

23. Cost Effectiveness Across the Board
Source: Cekos, Statistical Office of the Republic of Serbia

24. 2424
Financial Incentives

25. 2525
Free Trade Zones
Operation within designated free zones is VAT-free and entitles to a tax return for exported goods.

26. 2626
About SIEPA

27. SIEPA Locations Database
2727
SIEPA Locations Database
The largest database of industrial locations in Serbia

28. The largest database of the Serbian industry www.serbia-suppliers.rs
2828
SIEPA Suppliers Database
The largest database of the Serbian industry

29. Thank you for your attention!
2929
Serbia Investment and Export Promotion Agency
Thank you for your attention!
SERBIA INVESTMENT AND EXPORT PROMOTION AGENCY
3, Vlajkoviceva St.
11000 Belgrade, Serbia
Phone:
Fax: