business friendly slovakia€¦ · romania 2.7% 2.9% bulgaria 0.8% 1.0% source: european...
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Business Friendly Slovakia
Slovak – Ukrainian Forum, Košice
April 20-23, 2015
CONTENT OF THE PRESENTATION
SARIO
INTRODUCTION TO SLOVAKIA
KEY SECTORS
INVESTMENT AID
SARIO BUSINESS EVENTS
SARIO INVESTMENT AND TRADE PROMOTION SERVICES
Governmental Agency under the
Ministry of Economy of the SR
Services Free of Charge
Source: SARIO
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
SARIO BUSINESS EVENTS
I INTERNATIONAL ENGINEERING COOPERATION DAY
– International engineering fair May 2015- Nitra
I EXPORT FORUM 2015
– November 2015- Bratislava
INTRODUCTION TO SLOVAKIA
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
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
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
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
-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
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
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
KEY SECTORS
LEADING SECTORS OF THE SLOVAK ECONOMY
Automotive Electronics ICT/SSC
INNOVATION & INFORMATION TECHNOLOGIES IN-LINE WITH TRADITIONAL INDUSTRIES
R&D
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
MADE IN SLOVAKIA: AUTOMOTIVE PAST
TAZ 1500 / Škoda 1203
Tatra T815 Jawa Babetta
MADE IN SLOVAKIA: AUTOMOTIVE PAST
Audi Q7 VW Touareg
Peugeot 208 Kia Cee'd
I 35 established SSCs
I Personnel over 24 800
Key Sector No 2: ICT/SSC
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
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
CORPORATE R&D CENTRES IN SLOVAKIA
dernières
INVESTMENT INCENTIVES
ELIGIBLE PROJECTS
Industry
Shared Service Centers
Technology Centers
Tourism
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
MAX REGIONAL INTENSITIES OF INVESTMENT AID
35%
35%
25%
for SMEs plus 10 to 20%
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
Slovak Success Stories
Source: SARIO, 2015
Significant global leaders in IT, automotive and machinery sectors with unique innovation potential
SLOVAKIA Country where history meets future
5th TOP best travel destination by Lonely Planet
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]