business friendly slovakia presented by robert simoncic, ceo sario
TRANSCRIPT
BusinessFriendlySlovakiaPresented by Robert Simoncic, CEO SARIO
Slovakia – Growing Heart of EuropeSlovakia – Growing Heart of Europe
Strategic
Geographic Location
Source: SARIO, 2011
I Establishment: 1st January 1993
I Official name: Slovak Republic
I Area (km2): 49,035
I Population: 5,379,000
I Capital: Bratislava
I Member of: OECD, WTO, NATO, EU, Schengen area
I Official currency: EURO
I Official Language: Slovak
I Government: Parliamentary democracy
I Election term: 4 years
I Neighbours: Austria, Czech Republic, Hungary, Poland, Ukraine
I Time zone: GMT + 1hour
Eurozone Member – Eurozone Member – OOne of the few from CEEne of the few from CEE
€ Eurosince 1st January 2009
EURO IMPLEMENTATION IMPACT: Limitation of Foreign Exchange Risk Lowering Transaction Costs Growth in Foreign Trade Increased Financial Stability
Source: SARIO, 2011
2010: Highest GDP Growth in the Eurozone 2010: Highest GDP Growth in the Eurozone
1,72
3,6
-0,2
-4,2
-0,2
1,61,1
0,5
3,2 3,1
1,72
1,3 1,1
2,9
4,1
Source: Eurostat, February 2011
COUNTRY RATINGS(Sovereign foreign currency ratings)
SLOVAKIACZECH
REPUBLICHUNGARY POLAND BULGARIA ROMANIA
A+ stable
A positive
BBB- negative
A- stable
BBB stable
BB+ stable
A1 stable
A1 stable
Baa3 negative
A2 Stable
Baa3 positive
Baa3 stable
A+ stable
A+ positive
BBB negative
A- Stable
BBB- negative
BB+ stable
A+stable
A stable
BBB+ stable
A- Stable
BBBstable
BBB-negative
A stable
A stable
BBB stable
A- stable
OECDCountry risk 0 0 2 0 4 4
Source: www.standardandpoors. com,www.moodys.com, www.fitchratings.com, www.jcr.co.jp, www.r-i.co.jp, www.oecd.org
Best Country Credit Ratings in the CEEBest Country Credit Ratings in the CEE
Source: World Bank Group – Doing Business Report 2011
Registering property
Paying taxes
Enforcing contracts
Protecting investors
Closing business
Construction permits
Methodology
The Doing Business projectprovides objective measures of business regulations and their enforcement across 183 economies and selected cities at the subnational and regional level.
Starting a business
Trading across borders
Regional Leader according to World Bank Regional Leader according to World Bank
Getting credit
Low Labour Cost Low Labour Cost && High Labour Productivity High Labour Productivity
Labour productivity
744,50 €Slovakia
957,5 €23 488 CZK
Czech Republic
785,75 €3 102,96 HUF
Poland
739,23 €199 837 HUF
Hungary
Data for 2009Source: National Statistical offices of Czech republic, Hungary, Poland, Slovakia, Bulgaria, Romaniaexchange rate (as of 7 October 2010) EUR 1 = 24,530 CZK, 3,949 PLN, 270,33 HUF, 4,2720 RON, 1,9558 BGN
GDP (in PPS) per hour worked as compared to EU15 (100)Source: Eurostat 2010
Gross monthly salary
299,11 €585 BGN
Bulgaria
431,88 €1 845 RON
Romania
Corporate Income TaxPersonal Income Tax
Value Added Tax - VAT
Dividend tax Inheritance and Gift Tax
Real Estate Transfer Tax
RRepatriation of profitsepatriation of profits
Simple and Fair TaxesSimple and Fair Taxes
19% 19% Flat Tax RateFlat Tax Rate
Source: SARIO 2011
19%
0%
100%
20%
Top-Notch Sectors of Slovakia
Automotive3rd in world car
production in 2009 - 86 cars/1000 inhabitants
ElectronicsLeading Slovak Exporter –
driver of economic and technological growth
SSC/ICTSR is becoming a
hive of SSC and ICTs
Key Key SSector: Automotiveector: Automotive
Car Car PProduction in Slovakiaroduction in Slovakia
Source: SARIO 2010, Slovak Automotive Industry Association ZAP,VW, KIA, PSA-Peugeot
1st Place in 2008106 cars/1000 inhabitantsin World Car Production/1000 inhabitants
3rd Place in 200986 cars/1000 inhabitants
Key Sector: ElectronicsKey Sector: Electronics
Source: SARIO, 2010
IAssembly of Bravia models for the European market doubled in 2008 to 4mil.
I3D TV from April 2010
I Production of LCD 10 mil pcs.
I Assembly of LCD
I Logistic center
I Europe service center
I 3D TV from February 2010
IProduction of LCD moduls
IOnly 1 in Europe
IHeadquarter for Europe
I3000 new jobs
IInvestment 191,3 mil Eur
Key Sector: Key Sector: Information Communication TechnologiesInformation Communication Technologies
• 33 established Information-Communication Technological CentersShared Service Centers
• Employing over 20,000 people with college/ university education
excellent language skills
• In 2009 the ICT sector was more contributive for the state treasury than all companies from the entire Slovak industry
Source: IT Association of Slovakia, 2011
Key sectorKey sectorICTICT locations locations– – Highly Competitive SegmentHighly Competitive Segment
I Unique clustering of shared services and IT support creating a fast-paced, enthusiastic IT environment
I Advanced wireless technologies – Flash-OFDM, WiMAX, HSDPA – covering large majority of the population
I High population density and low deployment costs making development and experiments easier than ever
Founding mebembers of
IT Valley Košice:
Technical University of Košice
University of Pavol Jozef Šafárik Košice
T-Systems Slovakia
NESS Slovakia
Siemens PSE
VSE IT služby
Cisco Systems Slovakia
Microsoft Slovakia
Slovak Telecom
Kosice Self-governing Region
Founding mebembers of
IT Valley Košice:
Technical University of Košice
University of Pavol Jozef Šafárik Košice
T-Systems Slovakia
NESS Slovakia
Siemens PSE
VSE IT služby
Cisco Systems Slovakia
Microsoft Slovakia
Slovak Telecom
Kosice Self-governing Region
R&D R&D in Slovakia – Discover the Potentialin Slovakia – Discover the Potential
6,0
4,4
4,3
4,3
3,9
0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0
Finland (1)
Slovakia (52)
Romania (56)
Poland (58)
Bulgaria (88)
6,4
4,4
4,1
3,4
3,2
0 1 2 3 4 5 6 7
J apan (1)
Slovakia (37)
Poland (45)
Romania (74)
Bulgaria (92)
Availability of Scientist and engineers
Production process sophistication
Source: Global Competitiveness Report 2009-2010, World Economic Forum 2010Slide 1: To what extent are scientists and engineers available in your country? (1 = not at all; 7 = widely available) Slide 2: How sophisticated are the production services? (1 = not at all—labor-intensive methods or previous generations of process technology prevail; 7 = highly—the world’s best and most efficient process technology prevails)
Success Stories & FDI Success Stories & FDI IInflow to Slovakia nflow to Slovakia
Country of Origin
Investor
USA (140)
US Steel, Emerson, DELL EMEA Centre of Excellence, Whirlpool, IBM International Services Centre, HP European IT Operation Centre, Johnson Controls R&D Centre, AT&T, Accenture Technology Solutions, Getrag Ford (Deutschland)
China LENOVO
Taiwan AU Optronics, ESON, Foxconn, Delta Electronics
Germany Siemens, Volkswagen, T-Systems
Japan Sony, Panasonic, Yazaki, Mitsui Sumitomo
Korea Samsung, KIA Motors, Hyundai Mobis
France PSA Peugeot Citroen, Alcatel R&D
Source: National Bank of Slovakia 2010, SARIO, 2010
Slovakia success storiesSlovakia success stories
Source: SARIO, 2010
SARIO Who We AreSARIO Who We Are
Government Funded
Organization under the direction
of the Slovak Ministry of Economy
MISSION EXECUTED THROUGH 3 CORE SECTIONS
Foreign Direct Investment
Foreign Trade
Structural Funds of the EU
Thank you for your attentionThank you for your attention!!
For more information, you can contact us at:
Address: Slovak Investment and Trade Development Agency
Martincekova 17 821 01 BratislavaSlovak republic
Tel.: +421 2 58260 248Email: [email protected]
„Best European investment agency for high-tech investment“ (Awarded during the Global Investment Conference in La Baule in 2007)
INVESTMENT AID
BASIC FEATURES OF THE INVESTMENT AIDBASIC FEATURES OF THE INVESTMENT AID
I Objective: To Encourage Direct Investments -in less developed regions -with high added value
I Eligible Investments: INDUSTRY R&D SSC
I Administrative Body: Ministry Of Economy
I Legal Framework: Act On Investment Aid
INVESTMENT AID GRANTED IN 2002-2010
I 108 supported investment projects
I 6.1 billion € of eligible investments
I 40.611 of newly created jobs
I 1.2 billion € of aid granted
I 20% - average aid per investment
I 29.000 € – average aid per 1 newly created job
INVESTMENT AID GRANTED TO US INVESTORS
I 12 supported investment projects
I 675 million € of eligible investments
I 4806 of newly created jobs
I 88 million € of aid granted
I 14% - average aid per investment
I 18.400 € – average aid per 1 newly created job
NEW RULES OF AID FROM JUNE 2011
I Higher transparency & predictability - possible volumes and forms of aid exactly set for each district
I More favourable conditions for all types of project to be supported- lower requirements on minimal investment, longer period of project
I More flexibility for supported projects - possibility of reasonable changes during implementation
I Faster approval procedure -setting shorter periods for authorities involved in procedure
I Long-term support- no limitation for support of expansion after first project finished
I Higher efficiency for budget & motivation for companies - availability of 10 year tax relief
NEW RULES OF AID FROM JUNE 2011
I INDUSTRY - basic condition
- project of the new factory or expansion - min. amount of investment 14 mil. €, 7 mil.€ or 3.5 mil.€
(depending on unemployment rate in the region)
TV
VT
KSRA
RS
PT
LC
VK
SO
KK SB
PO
GL
LE
BJSK
SPML
HE SVPP
SN
BR
LM
TS
NOCA
DK
RKMT
ZA
KMBY
PBPU
IL
TNTR
BB
ZV DTZC
BS
KA
LV
NRZM
TO PE
BNNM
PN
TT
GA
DS
MA
SE
SA
PK
SCBA
HC
SL
KE
SA M
Y
KN
NZ
PD
ZH RV
MI
14 mil €
7 mil €
3.5 mil €
NEW RULES OF AID FROM JUNE 2011
R&D center - basic condition
- project of the new center or expansion - min. amount of investment 500 ths
I SSC - basic condition
- project of the new center or expansion - min. amount of investment 400 ths
NEW RULES OF AID FROM JUNE 2011
Forms of Investment aid
Income tax relief - 10 years
Cash grant (up to 50% in some districts)
Contributions on new jobs (up to 14 600 eur per employee )