business friendly slovakia€¦ · romania 2.7% 2.9% bulgaria 0.8% 1.0% source: european...
TRANSCRIPT
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Business Friendly Slovakia
Slovak – Ukrainian Forum, Košice
April 20-23, 2015
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CONTENT OF THE PRESENTATION
SARIO
INTRODUCTION TO SLOVAKIA
KEY SECTORS
INVESTMENT AID
SARIO BUSINESS EVENTS
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SARIO INVESTMENT AND TRADE PROMOTION SERVICES
Governmental Agency under the
Ministry of Economy of the SR
Services Free of Charge
Source: SARIO
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Investment Section I FDI attraction
I Assistance, consultancy for investment project implementation
I Database of available real estate
I Consultancy on state aid
I Starting business related materials, analyses
I Promoting Slovakia abroad via seminars
I Manages M&A database, open projects fro investments
SARIO SERVICES
Trade Section I Supports Slovak manufacturers in their
export activities
I Assists foreign companies to identify potential new products for export from Slovakia
I Identifies potential suppliers and subcontractors
I Monitors free production capacities
I Manages online databases
I Trade Fairs
I Organizing B2B meetings
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SARIO BUSINESS EVENTS
I INTERNATIONAL ENGINEERING COOPERATION DAY
– International engineering fair May 2015- Nitra
I EXPORT FORUM 2015
– November 2015- Bratislava
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INTRODUCTION TO SLOVAKIA
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STRATEGIC POSITION WITH EXPORT POTENTIAL
Source: World Resources Institute
300 million
clients in radius of 1 000 km
600 million
clients in radius of 2 000 km
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ROAD & AEROSPACE NETWORK
Vienna-AT
Prague
All major European cities
Brno (CZ) 120 km
Krakow (PL) 180 km
Source: National Motorway Company, Slovak Airports, 2015
Budapest-HU
Prague
WORLD
Vienna-AT London-UK Prague-CZ Bratislava-SK
WORLD
airport
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EURO ZONE MEMBER - ONE OF A FEW IN CEE
Euro € since 1 January 2009
EURO IMPLEMENTATION IMPACT
Limitation of Foreign Exchange Risk
Lowering Transaction Costs
Growth in Foreign Trade
Increased Economic & Financial Stability
Favorable conditions
for long-term business decisions
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FASTEST GROWTH IN EUROZONE, 2004-2014
Source: European Commission, Eurostat 2014
-2 -1 0 1 2 3 4
Greece
Italy
Portugal
EURO area (19)
Spain
Cyprus
Finland
France
Netherlands
Germany
Belgium
Austria
Slovenia
Ireland
Malta
Luxembourg*
Lithuania
Estonia
Latvia
Slovakia
-1,24
-0,28
0,02
0,87
0,9
0,99
1,02
1,05
1,12
1,29
1,35
1,45
1,57
1,72
2,3
2,51
2,67
3,05
3,33
3,97
Average Annual Growth Rate
*Data for 2014 missing
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-5
0
5
10
15
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015f 2016f
European Union (EU 28)
Slovakia
2008 2009 2010 2011 2012 2013 2014
Real GDP Growth 5.8% -4.9% 4.4% 3% 1.8% 0.9% 2.4%
Labor Productivity Growth
2.3% -2.3% 4.4% 2.0% 2.2% 2.8% -
HICP Inflation 3.9% 0.9% 0.7% 4.1% 3.7% 1.5% -0.1%
Unemployment 9.6% 12.1% 14.4% 13.2% 14% 14.2% 13.2%
Average Gross Salary, € 723 744.5 769 786 805 824 858
Real GDP growth
GDP Prediction
by European Commission
SLOVAKIA: MACROECONOMIC OVERVIEW
2015f 2016f
Germany 1.5% 2.0%
Slovakia 2.5% 3.2%
Poland 3.2% 3.4%
Czech Rep. 2.5% 2.6%
Hungary 2.4% 1.9%
Romania 2.7% 2.9%
Bulgaria 0.8% 1.0%
Source: European Commission, Winter 2015 Forecast
Source: European Commission, Winter 2015 Forecast
Source: Eurostat, February 2015
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Slovakia: 3rd Most Promising Pre-Emerging Market
Bloomberg
- ranked pre-emerging markets based on their overall investment potential through 2016
- awarded points based on the following indicators:
• Average projected GDP growth
• Projected inflation rate • Government debt • Total investments
• Current labor participation • Current account balance • Foreign reserves • Infrastructure
Economic indicators
• Price-to-book ratio of the primary equity
• Exchange rate volatility • Liquidity of the primary
equity
• Two-year sovereign debt • Credit-default-swap
spread
Financial indicators
• Corruption Perceptions Index
• Political risk score
• Ease-of-doing-business score
• Adult literacy rate
Political and social measurements
60,3
61,5
62,4
63,8
65
65,7
65,8
67,1
71,4
78,8
Romania
Kazachstan
Vietnam
Bulgaria
Slovenia
Bahrain
Lithuania
Slovakia
Estonia
Saudi Arabia
Source: Bloomberg, International Monetary Fund, World Bank, Economist Intellligence Unit, Transparency International, World Economic Forum, CIA , MSCI, FTSE, S&P, JP Morgan as of 2015
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SLOVAKIA: HIGHEST LABOR PRODUCTIVITY IN CEE
933 € 25 686 CZK
Czech Republic
951 € 3 980 PLN
Poland
770 € 237 736 HUF
Hungary
Source: National Statistical Offices of Slovakia, Czech republic, Hungary, Poland and Bulgaria, National Bank of Slovakia, 2015
GDP (in PPS) per hour worked as compared to EU 27 (100) Source: Eurostat 2014
Gross monthly salary 2014
542 € 2 412 RON
Romania 429 € 840 BGN
Bulgaria
Slovakia reaches the highest labour productivity
858 € Slovakia
0,0
10,0
20,0
30,0
40,0
50,0
60,0
70,0
80,0
90,0
2005 2006 2007 2008 2009 2010 2011 2012 2013
Slovakia Hungary Czech Republic Poland Romania Bulgaria
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KEY SECTORS
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LEADING SECTORS OF THE SLOVAK ECONOMY
Automotive Electronics ICT/SSC
INNOVATION & INFORMATION TECHNOLOGIES IN-LINE WITH TRADITIONAL INDUSTRIES
R&D
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Car Production in Slovakia
Source: Business Monitor International, Slovak Automotive Industry Association ZAP, VW, KIA, PSA-Peugeot, International Organization of Motor Vehicle Manufacturers 2015
KEY SECTOR No 1: AUTOMOTIVE
+4,8 % growth/annum forecast
SLOVAKIA, 2014 Leader in World Car Production
per 1000 inhabitants
183 vehicles /1000 inhabitants
World Average 10 vehicles / 1000 inhabitants
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MADE IN SLOVAKIA: AUTOMOTIVE PAST
TAZ 1500 / Škoda 1203
Tatra T815 Jawa Babetta
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MADE IN SLOVAKIA: AUTOMOTIVE PAST
Audi Q7 VW Touareg
Peugeot 208 Kia Cee'd
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I 35 established SSCs
I Personnel over 24 800
Key Sector No 2: ICT/SSC
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Defence industry
Chemistry Electrical equipment
Machinery equipment
Automotive industry, supplier
sector
Medium-High Technology: Manufacturing
Other transport
equipment
Medical and dental
instruments
GREAT BRANDS GATHER IN SLOVAKIA, MEDIUM HIGH- TECH
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High-Tech Services: Knowledge Intensive
Creative, movie, TV industry and ICT
Scientific research and development (biotech, medical, engineering
etc.)
High-Technology: Manufacturing
Computer, electronic and
optical products
Pharmacy Air and spacecraft industry
GREAT BRANDS GATHER IN SLOVAKIA, HIGH-TECH
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CORPORATE R&D CENTRES IN SLOVAKIA
dernières
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INVESTMENT INCENTIVES
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ELIGIBLE PROJECTS
Industry
Shared Service Centers
Technology Centers
Tourism
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BASIC FEATURES
I Targeted at regions with high unemployment rate
I Final decision: Slovak government
I Administrative body: Ministry of Economy of SR
I Investment intensity up to 35% from eligible costs
I ELIGIBLE COSTS : LAND
BUILDINGS
NEW MACHINERY & TECHNOLOGY EQUIPMENT
LICENSES & PATENT RIGHTS OR WAGE COSTS OF NEW EMPLOYEES DURING 2 YEARS
I FORMS: INCOME TAX RELIEF up to 10 tax periods
CASH GRANT (paid ex-post, based on annual costs report) CONTRIBUTIONS ON NEW JOBS (paid ex-post, based on annual costs report)
PROPERTY TRANSFER
Legal framework: Act no. 561/2007 Coll. on Investment Aid
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MAX REGIONAL INTENSITIES OF INVESTMENT AID
35%
35%
25%
for SMEs plus 10 to 20%
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ELIGIBLE INVESTMENTS & REQIUREMENTS
ELIGIBLE
INVESTMENTS
INDUSTRY
TECHNOLOGY CENTER
SHARED SERVICES
CENTER
TOURISM
NEW FACILITY or EXPANSION
MIN. AMOUNT 10/5/3 M € 0.5 M € 0.4 M € 10/5/3 M €
MIN. NEW JOBS 40
30
(70% university
education)
40
(60% university
education)
40
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Slovak Success Stories
Source: SARIO, 2015
Significant global leaders in IT, automotive and machinery sectors with unique innovation potential
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SLOVAKIA Country where history meets future
5th TOP best travel destination by Lonely Planet
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Thank you for your attention
SARIO
Slovak Investment and Trade Development Agency
Address Trnavska cesta 100
821 01 Bratislava
Slovakia
Web www.sario.sk
Email [email protected]