pursuing sustainable growth serbia’s investment perspectives...• a major part of the corridor x...

20th Annual meeting of the EBRD Board of GovernorsEBRD Business Forum

PRESENTATION RIGHTS RESERVED. COPYRIGHT MINISTRY OF ECONOMY AND REGIONAL DEVELOPMENT. YEAR 2011.

Vesna

ArsićState Secretary for International Economic Relations

Government of the Republic of SerbiaMinistry of Economy and Regional Development

Pursuing sustainable growthSerbia’s investment perspectives

Ministry of Economy and Regional Development


Official Name: Republic of SerbiaArea: 88,361 km2

Population: 9.5 millionOfficial Language: SerbianState Form: Democratic RepublicCapital: Belgrade (1.6 million) Currency: Serbian Dinar

(RSD)

Key country data

GDP growth rate and GDP per capita (EUR)Ministry of Economy and Regional Development


Inflation (CPI)Ministry of Economy and Regional Development


First recovery in the regionMinistry of Economy and Regional Development


Average GDP growth rate

2001-2008

GDP growth rate

2009 2010 2011*

Bulgaria 5,6 -4,9 0,4 2,6

Romania 6,2 -7,1 -1,9 1,1

Hungary 3,4 -6,7 1,3 2,0

Serbia 5,4 -3,1 2,0 3,0

Croatia 4,5 -5,8 -1,3 2,0

Slovenia 4,4 -8,1 1,0 1,7

*Source: EBRD, January 19,

2011

The basis for sustainable growthMinistry of Economy and Regional Development


• Pro-investment and export-oriented economy• Reindustrialization• Completion of strategic public infrastructure projects• Starting an intensive investment cycle in energy sector• EU and WTO accession, integrated regional growth

Targeting export growth and elimination of foreign trade deficitMinistry of Economy and Regional Development


In 2010 exports rose by 24% to 7,4 bn

EUR

Targeting export growth and elimination of foreign trade deficitMinistry of Economy and Regional Development


Export-import coverage ratio rising from 32,8% in 2004 to 58,6% in 2010

Trade by economic groupings in 2010Ministry of Economy and Regional Development


Top export destinations 2008-2010Ministry of Economy and Regional Development


in mn

EUR

FDI stocks in SEE 2006 -

2009Ministry of Economy and Regional Development


Source: UNCTAD –

World investment report July 2010

FDI origin by country and sector 2000 -

2010Ministry of Economy and Regional Development


Investments in transportation infrastructure –

Corridor XMinistry of Economy and Regional Development


• A major part of the Corridor X highway already built, but some sections missing:

• towards FYR Macedonia and Greece• towards Bulgaria• towards Hungary• Belgrade bypass

National Roads Strategy 2010/11Ministry of Economy and Regional Development


• Infrastructure is crucial for equal regional development opportunities;

• The National Roads Strategy envisaging further upgrade of the road network;

Investments in energy sectorMinistry of Economy and Regional Development


• The South Stream gas pipeline• The high capacity underground gas storage • Construction of thermal power plants

Kolubara

BTENT B 3TE TO Novi Sad

• Capacity expansion of existing TPP• Construction of hydro power plants

Djerdap

3Great MoravaUpper Drina

(with Republika

Srpska)

Serbia’s Free Trade AgreementsMinistry of Economy and Regional Development


European Union EFTA Russia Kazakhstan

CEFTA Turkey Belorussia USApreferential trade

Free Zones in SerbiaMinistry of Economy and Regional Development


• Fiscal benefits (exemptions from any tax burden for FDI, VAT, company profit tax, property tax, income tax, etc.)

• Free of customs duties for goods, equipment, raw and construction material

• Efficient administration, (one stop shop) • Simple and fast customs procedures • Local subsides for using the infrastructure

Providing a set of services to users under preferential terms

Supportive investment regimeMinistry of Economy and Regional Development


• National treatment of foreign companies;• Free transfer of financial and other assets, including profits and dividends;

• No industry restrictions on foreign investment;• Business legislation reforms in line with the EU legal framework;

Favorable tax regimeMinistry of Economy and Regional Development


Financial incentives overviewMinistry of Economy and Regional Development


105050503001,000Minimum Number of New Jobs

€0.5 mn€1 mn€0.5 mn€0.5 mn€50 mn€200 mnMinimum Investment

Amount

€2,000-10,000per job created



€4,000-10,000 per job created

Up to 20% of the total

investment

Up to 25% of the total

investmentGrant Amount

Projects Realized in Any Region

Projects Realized in Other Regions

Projects in Automotive,

Electronics, IT Industries

Realized in Regions of Special

State Interest

Projects Realized in Devastated Regions and

Regions of Special State Interest

Labour-

Intensive Projects

Capital and Labour-

Intensive Projects

Export-Related ServicesManufacturingManufacturing and Export-

Related Services

Standard-Scale ProjectsLarge-Scale Projects

Eligible Projects

Investment incentives in different regionsMinistry of Economy and Regional Development


In the municipalities of special interest for regional development: • Incentives from 5,000 to 10,000 EUR for every new job createdIn the most underdeveloped municipalities • Incentives from 4,000 to 10,000 EUR/ every new job createdIn other municipalities• Incentives from 2,000 to 10,000 EUR/ every new job created

Human resources



“This initiative demonstrates our confidence and trust in Serbia, its industry , management competence, and the skil of its workers.”Sergio Marchionne, CEO

• 27,000 university and 2-year college graduates, and 75,000high school graduates yearly

• Top quality technical education at both high school and university level

• A wide availability of highly qualified staff• Strong command of the English language

Technical educationMinistry of Economy and Regional Development


• 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

Success story: FIAT in SerbiaMinistry of Economy and Regional Development


FDIs

in 2010/11 –

New comersMinistry of Economy and Regional Development


Name Country Sector Municipality Value €

million JobsMaxim BG Slovenia Metallurgy & Metalworking Inđija 21 200Credy

banka Slovenia Financial Kragujevac 20PepsiCo Marbo United States Food & Beverage, Agriculture Bački

Petrovac 20 100Tigar Tyres

Michelin France Automotive industry Pirot 16 220Yura

Corporation -

Nis South Korea Automotive industry Niš 15 1500Koteks

Viscofan Spain Packaging Novi Sad 14 165Dytech

F&F Italy Automotive industry Niš 13 403Vossloch-Schwabe

(Panasonic) Germany Electrical & Electronics Svilajnac 13 400Calzedonia

/ Fiorano Italy Clothing Sombor 13 400Gorenje

Tiki Slovenia Electrical & Electronics Stara

Pazova 12 250NORMA Group Germany Automotive industry Subotica 11 500FALKE Germany Clothing Leskovac 10 600Tatravagonka Slovakia Machinery & Equipment Subotica 8.4Farmina

Pet Foods Italy Food & Beverage, Agriculture Inđija 8 50Yura

Corporation -

Raca South Korea Automotive industry Rača 8 1000Valy

Golden Lady Italy Clothing Loznica 6.4 200Harder Digital Sova Germany Electrical & Electronics Niš 6.3 70Bauerhin

–

IGB Automotive Germany Automotive industry Inđija 5 750Metech Belgium Metallurgy & Metalworking Smederevo 3.5 100Sagemcom France Electrical & Electronics Niš 3.3 203Modital Italy Textile Zrenjanin 3 300Euro BB Norway Food & Beverage, Agriculture Užice 3 250Jeanci Turkey Textile Leskovac 2.8 500Termoprodukt Austria Construction Sremska

Mitrovica 1.2 51Grammer

System Germany Automotive industry Aleksinac 1.1 211Elrad

WS -

S Slovenia Electrical & Electronics Vlasotince 1 50Dunkermotoren Germany Electrical & Electronics Subotica 1 50Labod Slovenia Textile Rekovac 0.8 82Gruppo

Fiorentino Italy Clothing Vlasotince 0.7 60IMP Holding / JIE engineering Germany Energetics Palilula

(Belgrade) 0.5 5

Improved country ratingsMinistry of Economy and Regional Development


• OECD ranking, in

Q1 2010, from classification 7 to

6• Dun &

Bradstreet, March

2010, from

“high risk”

DB5a to

“moderate”

DB4d• Fitch Ratings, November

2010, from

BB-

negative to

BB-

stable• Standard & Poor’s, March 2011, from BB-

to BB

Final remarksMinistry of Economy and Regional Development


Prerequisites for further export-based growth

• Attracting competitive export-oriented investors• Completion of restructuring and

modernization/privatization of large domestic companies• Enabling domestic private sector to grow and become more

competitive• Finalization of initiated

infrastructure projects• Construction of new energy facilities


Government of the Republic of SerbiaMinistry of Economy and Regional Development

www.merr.gov.rs

Thank you!


pursuing sustainable growth serbia’s investment perspectives...• a major part of the corridor x...

Documents