1. SERBIA – CZECH REPUBLIC Opportunities for growth
Serbia Investment and Export Promotion Agency
SERBIA – CZECH REPUBLIC
Opportunities for growth
Mr. Bozidar Laganin| Director
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2. Investment Track Record Czech Republic investments to Serbia
Serbia Investment and Export Promotion Agency
PRESENTATION OUTLINE
Investment Track Record
Czech Republic investments to Serbia
Most Improved Business Environment
South East Europe – snap shot view by consultants
Skilled and Competitive Workers
Attractive tax and financial environment
SIEPA Activities and Services
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3. LEADING FOREIGN INVESTORS
Serbia Investment and Export Promotion Agency
LEADING FOREIGN INVESTORS
Since 2001 Serbia attracted around 20 billion USD of investments
Source: Vienna Institute for Economics
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4. Serbia FDI analysis 2001/2009 – based on 180 projects
Serbia Investment and Export Promotion Agency
Serbia FDI analysis 2001/2009 – based on 180 projects
Source: SIEPA
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5. SERBIA – CHEZCH INVESTMENT RELATIONSk
Serbia Investment and Export Promotion Agency
SERBIA – CHEZCH INVESTMENT RELATIONS
According to the National Bank of Serbia the value of investments from Czech Republic stands at modest 21.4 million USD; However, actual investments are higher;
In September 2008, company CGS Mitas bought Serbian Ruma Guma, the value of investment around 35 million Eur;
Company Connex Morava bought a Serbian LITAS for 1.4 million Euros while planning to invest additional 9.9 million;
Czech companies are also very interested to participate in the Serbian energy sector but also in the reconstruction of the railway on Corridor X;
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6. Serbia FDI analysis 2001/2009 – based on 180 projects
Serbia Investment and Export Promotion Agency
Serbia FDI analysis 2001/2009 – based on 180 projects
Source: SIEPA
PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2010.

7. Serbia FDI analysis 2001/2009 – based on 180 projects
Serbia Investment and Export Promotion Agency
Serbia FDI analysis 2001/2009 – based on 180 projects
Source: SIEPA
PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2010.

8. MAJOR AUTOMOTIVE AND FOOD INDUSTRY INVESTORS
Serbia Investment and Export Promotion Agency
MAJOR AUTOMOTIVE AND FOOD INDUSTRY INVESTORS
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9. MOST IMPROVED BUSINESS ENVIRONMENT
Serbia Investment and Export Promotion Agency
MOST IMPROVED BUSINESS ENVIRONMENT
Economist Intelligence Unit:
“SERBIA IS FORECAST TO MAKE THE LARGEST IMPROVEMENT IN THE BUSINESS ENVIRONMENT IN THE REGION OF EASTERN EUROPE BETWEEN 2009 AND 2013.”
“OUT OF 16 COUNTRIES INCLUDED IN THE RESEARCH, SERBIA WILL BE LEADING THE REGION IN TERMS OF BUSINESS REFORMS BY A WIDE MARGIN.”
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10. BELGRADE – CITY OF THE FUTURE
Serbia Investment and Export Promotion Agency
BELGRADE – CITY OF THE FUTURE
Belgrade, the capital, has been awarded as the City of the Future for Southern Europe 2007 by the fDi Magazine.
Selection criteria - economic potential, cost effectiveness, human resources, IT and telecommunications, transport, quality of life, and FDI promotion.
In 2008 the municipality of Indjija was ranked among the Top 25 Most Attractive locations for foreign direct investment in Europe by the Financial Times.
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11. ATTRACTIVE DESTINATION
Serbia Investment and Export Promotion Agency
ATTRACTIVE DESTINATION
SERBIA IS THE 3RD MOST ATTRACTIVE MANUFACTURING AND 7TH MOST ATTRACTIVE SERVICES FDI DESTINATION AMONG EMERGING ECONOMIES, ACCORDING TO PRICEWATERHOUSECOOPERS.
THE 2ND BEST PERFORMANCE IN THE SOUTH EAST EUROPE REGION WITH NEARLY 150 INWARD INVESTMENT PROJECTS IN 2007, 2008 AND 2009, BY ERNST & YOUNG.
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12. Serbia Investment and Export Promotion Agency
SEE – A CLEAR LEADER
Which region in Europe is the most attractive in terms of labor and productivity?
Labor cost
Flexibility of labor
legislation
Productivity
increase
49% 1
36%
33% 1 1
18%
16%
15%
14%
13% 2
10% 2 3 2 3 3
Central
Europe
Southeast
Europe
Russia
Ukraine
Belarus
Western
Europe
Southeast
Europe
Central
Europe
Western
Europe
Southeast
Europe
Central
Europe
Source: Ernst & Young Southeast Europe Attractiveness Survey international executives
If you want to receive the full report please contact SIEPA or Ernst & Young
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13. SNAPSHOT OF INVESTMENT PERCEPTION AND REALITY
Serbia Investment and Export Promotion Agency
SNAPSHOT OF INVESTMENT PERCEPTION AND REALITY
Which region is the most attractive for manufacturing activities?
Matching image and reality
150
Romania
Image/reality
Outsider with a poor image but strong results
100
(No. of inward FDI projects 2007)
REAL ATTRACTIVENESS
Challengers with a stronger image than the reality
SERBIA
Bulgaria 50
Bosnia
& Herzegovina
Turkey
Croatia
Greece
Cyprus 0%
20%
40%
60%
Source: Ernst & Young Southeast Europe Attractiveness Survey international executives/E&Y European Investment Monitor 2008
If you want to receive the full report please contact SIEPA or Ernst & Young
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14. A wide availability of highly qualified staff
Serbia Investment and Export Promotion Agency
HUMAN RESOURCES
27,000 university and 2-year college graduates, and 75,000 high school graduates per year
Top quality technical education at both high school and university level
A wide availability of highly qualified staff
Strong command of the English language
“This initiative demonstrates our confidence and trust in Serbia, its industry, management competence, and the skill of its workers.“
Sergio Marchionne, CEO
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15. TECHNICAL EDUCATION 11 technical faculties for white collar workers
Serbia Investment and Export Promotion Agency
TECHNICAL EDUCATION
11 technical faculties for white collar workers
71 technical schools for blue collar workers
Faculty of Mechanical Engineering
Faculty of Technical Sciences
Faculty of Electrical Engineering
Faculty of Traffic and Transport Engineering
Faculty of Technology and Metallurgy
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16. Gross monthly wages in 2009 in EUR
Serbia Investment and Export Promotion Agency
SALARIES IN SERBIA
Gross monthly wages in 2009 in EUR
NET SALARY
GROSS SALARY
25,000 RSD
(250 EUR)
41,037 RSD
(400 EUR)
40,000 RSD
66,266 RSD
(650 EUR)
60,000 RSD
(600 EUR)
99,903 RSD
(1,000 EUR)
Net vs. Gross Salary
Source: Vienna Institute for Economics
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17. USA – preff. trade regime
Serbia Investment and Export Promotion Agency
TRADE DIPLOMACY – MARKET ACCESS
European Union
EFTA
Russia
Kazakhstan
CEFTA
USA – preff. trade regime
Turkey
Belorussia
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18. COMPETITIVE TAX SYSTEM
Serbia Investment and Export Promotion Agency
COMPETITIVE TAX SYSTEM
Withholding tax of 20% (double taxation treaty rules apply);
Annual income tax is 10 or 15 % for annual income below or above 8 times the average annual salary in Serbia (tax applies on the difference);
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19. FINANCIAL INCENTIVES TO INVESTORS
Serbia Investment and Export Promotion Agency
FINANCIAL INCENTIVES TO INVESTORS
Eligible Sectors
Large-scale Projects
Standard-scale Projects
Manufacturing
Export Related Services
Capital and Labour Intensive Projects
Capital Intensive Projects
Investment Realised in Devastated Regions
Investments in Automotive, Electronics and IT, Realised in Regions of Special State
Interest
Investment Realised in Other Regions
Investments in All Regions
Grant Amount
(EUR)
25% of the total investment
20% of the total investment
€ 4, ,000 / per job created
€ 5, ,000 / per job created
€ 2, ,000 / per job created
€ 2, ,000 / per job created
The Minimum Investment Amount
€ 200 mn
€ 50 mn
€ 0.5 mn
€ 1 mn
The Minimum Number of New Jobs Created
1.000
300 50 10
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20. SERBIA – CZECH REPUBLIC, A WORLD OF OPPORTUNITIES
Serbia Investment and Export Promotion Agency
SERBIA – CZECH REPUBLIC, A WORLD OF OPPORTUNITIES
We are yet to explore the full potential of cooperation; trade is still limited but is showing signs of recovery; investments are yet to grow;
Two countries have signed the double taxation treaty;
Serbia offers national treatment of foreign investors; Free transfer of financial and other assets; No industry restrictions;
The industrial heritage and current situation in Czech Republic can be complementary to Serbian and we see a lot of potential in JV’s, technology and know-how transfer;
I believe that many companies of Czech origin supplying MNE’s in the automotive and electronic sector can find opportunities in Serbia;
Logistics and transportation are also very interesting;
For Czech companies looking to develop retail activities in SEE, we see Serbia as the perfect platform;
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21. PROMOTING INVESTMENTS
Serbia Investment and Export Promotion Agency
OUR ACTIVITIES
PROMOTING INVESTMENTS
Providing information
Selecting investment location
Managing investment projects
Project aftercare
Assistance in various activities
Selecting suppliers
Linking all stakeholders
Web site
Conferences
Investment seminars
Project management
Financial grants administration
Tax, legal, other assistance
General data
Tax and legislation
Sector analysis, brochures
Municipal data
Brownfield locations
Greenfield locations
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22. DATABASE OF AVAILABLE BROWNFIELD AND GREENFIELD LOCATIONS
Serbia Investment and Export Promotion Agency
DATABASE OF AVAILABLE BROWNFIELD AND GREENFIELD LOCATIONS
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23. SIEPA SUPPLIERS DATABASE
Serbia Investment and Export Promotion Agency
SIEPA SUPPLIERS DATABASE
On our website Search by: Sector / sub-sector, markets, technology, used products, certificates
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24. Thank you for your attention!
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: