• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Bulgaria   general presentation july 2011
 

Bulgaria general presentation july 2011

on

  • 1,560 views

Bulgaria general presentation july 2011

Bulgaria general presentation july 2011
By InvestBulgaria

Statistics

Views

Total Views
1,560
Views on SlideShare
1,560
Embed Views
0

Actions

Likes
1
Downloads
34
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • 14

Bulgaria   general presentation july 2011 Bulgaria general presentation july 2011 Presentation Transcript

  • Bulgaria – investment climate and business opportunities July 2011
  • Macroeconomic indicators show consistent pre-crisis economic growth and quick post-crisis recovery 7 Page Real GDP Growth Inflation Unemployment FDI Inflow Source: Bulgarian National Bank, Eurostat 2011 Q1 2010 0.2% 2009 2008 2007 2006 2005 2004 2010 2008 2007 2006 2005 2004 2009 * May 2011 6.9% 2006 2005 2004 2007 2011 8.9% 2010 2009 2008 6.3% EU-27 Bulgaria EU-27 Bulgaria 2004 2007 2005 2010 2009 2008 2006 € mln. EU-27 Bulgaria
  • Visible signs exist that the Bulgarian economy is emerging rapidly from the crisis % 4,500 4,000 3,500 3,000 0 +44% Q4 2010 Q3 2010 Q2 2010 Q1 2010 Q4 2009 Q3 2009 Q2 2009 Q1 2009 Q4 2008 Q3 2008 Q2 2008 Q1 2008 +66% +6% Exports (€ mln.) Q3 2008 Q4 2008 4.8% Q1 2008 -4.6% Q1 2011 Q2 2009 Q4 2009 Q2 2010 -6.0% Q4 2010 0.0% Q3 2009 Q1 2010 -6.7% Q1 2009 -0.4% -3.3% Q3 2010 Q2 2008 Real GDP growth (% annual basis) Source: National Institute of Statistics, Bulgaria Page
  • Role of Bulgaria as FDI location has grown significantly for the last 10 years 2006 2007 2008 2009 1999 2000 2001 2002 2003 2004 2005 Czech Republic Romania Hungary Bulgaria Slovakia Croatia 0 1,000 10,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Inward FDI per country (€ mln.) Page Source: UNCTAD
  • FDI in Bulgaria comes mostly from EU countries and is concentrated in four main sectors 6 Page Source: Bulgarian National Bank FDI by host country, 1996-2010 (€ mln.) FDI flows by industry, 1996-2010 (€ mln.) Telecom 1,955 Energy 2,492 Construction 2,608 Trade 6,425 Manufacturing 6,552 Finance 7,422 Real Estate 8,419 Other 2,376 (10) Italy 1,221 (9) Russia 1,229 (8) USA 1,337 (7) Hungary 1,362 (6) Cyprus 2,229 (5) Germany 2,646 (4) UK 2,948 (3) Greece 3,763 (2) Austria 5,183 (1) Netherlands 5,740
  • Why invest in Bulgaria?
    • Political and business stability
      • EU and NATO member
      • Currency board
      • Low budget deficit and government debt
    • Low cost of doing business
      • 10% corporate tax rate
      • Lowest cost of labor within EU
    • Access to markets
      • European Union / EFTA
      • Russia
      • Turkey / Middle East
    • Educated and skilled workforce
    • Government incentives
    Page
  • Bulgaria enjoys one of the most stable political and economic environments in Southeastern Europe
    • Bulgaria is a member of some of the most prestigious political organizations
      • European Union member since 2007
      • NATO member since 2004
      • WTO member since 1996
    • Strong commitment to political reform and transparency has earned praise from leading media and experts worldwide
    • Stable currency
      • Bulgarian Lev has been pegged to the Euro since the adoption of the currency in 2002
      • Currency board backed by IMF
    Page “ The Bulgarian economy looks to be stabilizing after weathering the recent financial crisis better than most of its neighbors” “ the government has earned accolades from Western economists ” July 20, 2010 ” the culture of impunity that once plagued Bulgaria has largely gone“ May 27, 2010
  • Government financial indicators are remarkable not only in the region, but on a pan-European scale Page 3% 2% 1% 0% -1% -2% -3% -4% -5% -6% -7% -8% -9% average debt (2004-2009) average budget (2004-2009) 16% Turkey Croatia Norway Iceland United Kingdom Sweden Finland Slovakia Slovenia Romania Portugal Poland Austria Netherlands Malta Hungary Luxembourg Lithuania Latvia Cyprus Italy France Spain Greece Ireland Estonia Germany Denmark Czech Republic Bulgaria Belgium Source: Eurostat
  • Bulgaria has one of the lowest business costs in Europe (1) taxes and labor costs p Page Lowest corporate income tax rate in Central / Eastern Europe * 0% tax rate for manufacturing companies in regions with low employment Most competitive cost of labor in Central / Eastern Europe Average wage, € / month March 2011 Source: Eurostat; CEIC Turkey 20% Czech Rep 19% Slovakia 19% Hungary 19% Romania 16% Bulgaria (*) 10% Croatia 20% Slovenia 1,524 Croatia 1,065 Czech Republic 956 Poland 878 Slovakia 809 Hungary 802 Romania 493 Serbia 480 Bulgaria 352
  • Bulgaria has one of the lowest business costs in Europe (2) energy costs and rent Page Bulgarian cost of electricity for industrial users is 67% of the European average Source: Eurostat, CB Richard Ellis Estonia Bulgaria Romania EU average Germany Czech Rep Hungary Slovakia € /kWh, 2009 Office rents in Bulgaria are among the lowest in Europe Moscow Istanbul Bucharest Warsaw Budapest Athens Zagreb Prague Sofia € / sq. m / year, Q1 2010 629
  • Bulgaria is only 3 hours flight from all major destinations in Europe, Russia and the Mediterranean region Page Strategic geographic location Major transport corridors passing through Bulgaria EU and EFTA Russia and CIS Turkey and Middle East
  • The role of the European Union as a trade partner for Bulgaria has been growing consistently n Other Asia Balkans EU-27 2009 14% 2005 16% 2000 17% 1995 29% Share of EU-27 exports has grown by 50 percentage points since 1995 € mln 9,000 6,000 5,000 4,000 3,000 8,000 2,000 10,000 1,000 0 7,000 ... in absolute terms EU-27 exports have grown approximately 5 times Page
  • Educated and skilled workforce is among the main advantages of Bulgaria Page Almost 60,000 students graduate every year from over 50 universities Source: National Institute of Statistics, Bulgaria 12,684 Other 19,480 Business 8,372 Social sciences 7,178 Engineering 3,677 Education 3,166 Health 1,553 Law Architecture Agriculture Bulgaria has one of the highest proportions of students abroad from all European countries 17.8% Iceland 14.2% Ireland 10.2% Slovakia Bulgaria Greece Austria Germany EU-27 average Romania Czech Republic Students in another EU / EEA country, % of all 0
  • The government supports specific industries under the Investment Promotion Act (IPA) Page
    • Investments must be related to the following sectors:
      • Manufacturing
      • Research & development
      • Education
      • Healthcare
      • High-tech services
      • Warehousing and logistics
    • Minimum investment amounts must exceed €10m
      • € 3.5 in regions with high unemployment and €2m for investment projects in high-tech services
    • Benefits for certified investors include:
      • Shortened administrative procedures
      • Preferential acquisition of state or municipal land
      • Financial support for professional training / education
      • Infrastructure subsidies
      • Individual administrative services
  • Biggest investors are supported through a priority investment scheme
    • Priority projects can be related to all sectors of the economy, which do not contradict regulation 800/2008 of the European Commission
      • Subsidies not allowed in mining, primary agriculture production, and shipbuilding
    • Priority projects should exceed €50m and create at least 200 new working places for a 3-year period
      • € 25 + 100 working places for certain manufacturing projects
      • € 10m + 50 working places for high-tech services and R&D
    • Priority projects receive all benefits for certified investors, as well as the following:
      • Lowest possible costs for the acquisition of government and municipal land + waived taxes for land status changes
      • Working group for project support is assigned by the Council of Ministers
      • Financial grant scheme for up to 10% of the investment project cost (50% for R&D)
    Page
  • Page
    • Services:
      • Transport and Logistics
      • Information technologies
      • Outsourcing of business processes
      • Health and tourism related to healthy lifestyle
    • Industry:
      • Transport equipment and machine building
      • Electronics and Electrical engineering
      • Chemical industry
      • Food and Agriculture
    • Resources:
      • Mining
      • Oil
      • Alternative energy
    Attractive FDI sectors
  • Leading global investors have chosen Bulgaria as an FDI destination Page IT & BPO Mechanical and Electrical Engineering Construction Materials Telecom and Media Energy Finance
    • InvestBulgaria Agency is a Government investment promotion arm, part of the Ministry of Economy, Energy and Tourism
    • IBA services:
    • Macroeconomic data on Bulgaria
    • Legal advice
    • Data on operational costs
    • Regional information: industrial zones and infrastructure, data on unemployment, skilled labour force and level of education
    • Recommendation of investment project sites
    • Identification of potential suppliers, contract manufacturers and joint-venture partners
    • Personalized administrative servicing
    • Liaison with central and local governments
    • Liaison with branch chambers and NGOs
    InvestBulgaria Agency Page
  • InvestBulgaria Agency Sofia 1000 , 31 Aksakov Str. Phone : (+359 2) 985 5500 Fax : (+359 2) 980 1320 E-mail: iba@investbg.government.bg Web: www.investbg.government.bg