Currently Mainly Import Dependent On Yarns And Fabrics

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  • 1. Presentation by: Milivoje Mandic Head of FDI Department SIEPA SERBIA Your Partner for Success
  • 2. Why invest in Serbia?
    • Strategic position
    • Partnership culture
    • Low taxes
    • Free Trade Agreements
    • Market of 10 million people (8 Serbia, 2 Kosovo)
    • Intellectual capital and skilled labor
    • Linguistic skills
  • 3. Strategic Position Intersection of Pan European Corridors No.10 and No.7 Gateway to Middle East and South- East Europe Proximity of the Adriatic sea
  • 4. T rade Liberalization Decreased Customs Eliminated Restrictions Customs Rate Reduction Clearance Rate: 0.5% Tariff Rate Reduction Average Rate: 7.2% Minimal export quotas No import quotas Free Trade Agreement with Russia FTA with SEE Free Zones 14 Free Zones FYROM Bosnia Hungary Croatia Albania Bulgaria Romania Greece
  • 5. Strong commitment to FDI
    • Stabilized macroeconomic situation
    • Legal Reform
    • More than 1,000 foreign companies operating in Serbia
    • More than $2.1 billion in revenues through privatization
    FDI in millions $
  • 6. Decreasing Inflation Source: National Bank of Serbia Annual Inflation in %
  • 7. Sound Financial Sector to Support Your Business!
    • HVB
    • Raiffeissen Bank
    • Societe Generale
    • National Bank of Greece
    • Pro Credit Bank
    • Hypo-Alpe-Adria Bank
    • Folksbank
    • Steps taken
    • Paris club of creditors wrote of 2/3 of Serbia’s debt
    • London club negotiations soon to be finished
    • 23 insolvent banks closed
    • 9 socially owned banks to be privatized in 2004
    • Securities market active since 1989
    Banks with foreign capital:
  • 8. Corporate Profit Tax in % Source: SIEPA
  • 9. Electricity Cost for Industrial Consumers Source: Electric Power Industry of Serbia $ / KWH
  • 10. Business Environment Scores and Ranks Source: Economist Intelligence Unit 3 2 Czech Republic 20 22 Bosnia & Herzegovina 18 17 Ukraine 13 16 Macedonia 25 14 Serbia and Montenegro 9 10 Bulgaria 4 5 Poland 1 1 Estonia Regional rank 1998-2002 (out of 27) Regional rank 2003-2007 (out of 27)
  • 11. Incentives for Your Business
    • Investment
    • Incentives
    • Tax Incentives
    • Import of goods and equipment on the basis on foreign investment is free
    • Accelerated depreciation
    • Investment in fixed assets
    • New employment
    • Tax holidays
    • Carrying forward of losses for 10 years
    • Tax exemptions
  • 12. Skilled Workforce
    • Long history of cooperation with foreign companies
    • High availability of skilled workforce
    • Diversified sector experience
  • 13. Good Command of Foreign Languages
  • 14. Textile Industry
    • Long tradition
    • Currently mainly import dependent on yarns and fabrics
    • Export mainly to EU countries (75%)
    • CMT
    • High domestic demand
    • Well developed retail network
  • 15. Compelling Cost Savings ( Textile Industry) In Euros In % 25% 31% 14% Corporate Profit Tax Rate 170 494 159 Gross wage Romania Czech Republic Serbia
  • 16. Foreign Trade ( Textile Industry)
  • 17. Sub sectors ( Textile Industry)
  • 18. Timber & Furniture
    • Excellent raw base (27% of the Serbian territory)
    • Successful history - major partners: US, Russia and EU
    • Highly skilled workforce
    • Active wood and furniture cluster
    • Average gross salary 136 EUR (Sept. 2003)
  • 19. Foreign Trade ( Timber & Furniture ) MOST SIGNIFICANT CATEGORIES IN TOTAL FURNITURE EXPORT IN 2002 50.0% 7.0% 26.0% 11.0% 3.0% 3.0% Leisure furniture Dining room furniture Kitchen furniture Chairs (bent wood) Bedroom furniture Other wooden furniture
  • 20. Trade with Italy ( Timber & Furniture )
  • 21. Agribusiness
    • Total area of agricultural land exceeds 5 million ha with 85% of land ownership under private farms;
    • Fertile soils, restricted use of chemical fertilisers and perfect climatic conditions;
    • Favourable ‘brand’ image
    • Average gross salary 270 EUR (Sept. 2003)
  • 22. Foreign Trade ( Agribusiness) Top 5 Exporting Products in 2001 Serbia is the regional and global leading producer of raspberries. 52 129,928 Total top 5 products 3 8,400 Sour cherries 3 8,633 Products made of cocoa 3 9,279 Biscuits, waffles 14 38,769 Refined sugar 24 64,847 Raspberries % of total agro industry exports 000 USD Agribusiness
  • 23. SIEPA
    • Established in February 2001 by the Government’s Decree
    • Mission: To attract, facilitate and support FDI and promote Serbian exports
    • SIEPA has three departments:
      • Marketing and Research
      • FDI / Investor Services
      • Export Promotion
  • 24. Foreign Direct Investment Support SIEPA ICE Foreign Investors Council (Investors association) Italian Embassy Ministry for International Economic Relations
  • 25.
    • S erbian I nvestment and E xport P romotion A gency
    • 23 Terazije St., Belgrade
    • Serbia and Montenegro
    • Tel: +381 11 3248 040
    • Fax: +381 11 3248 227
    • www.siepa.sr.gov.yu
    • [email_address]
    Thank You!