Transcript ПРЕЗЕНТАЦИЯ - Invest Bulgaria Agency

Bulgaria – Your Investment Destination in
Europe
Shanghai
20 November 2012
Mr. Delian Dobrev
Minister of Economy, Energy and Tourism
Republic of Bulgaria
Ministry of Economy, Energy and Tourism
Bulgaria at a glance:
Location and key data
•
Area: 110,910 sq. km
•
Number of Inhabitants (2011): 7.4 mln
•
Capital and Largest City: Sofia
•
Other Cities: Plovdiv, Varna, Bourgas, Ruse, Stara
Zagora, Pleven, Veliko Tarnovo
•
Natural Resources: oil, gas, coal, iron ore, copper,
lead, zinc, antimony, chromite, gold, silver,
magnesium, nickel, pyrite, marble, limestone, salt,
arable land
•
Major Industries: electricity, water and gas supply;
food, beverages and tobacco; machinery and
equipment; base metals, chemical products, coke,
refined petroleum
•
Currency: Lev (BGN). Fixed exchange rate with
Euro.
•
EU Member since 2007, NATO Member since 2004
•
Government Type: Parliamentary Republic
•
Last Government Elections: July 2009
Ministry
of Economy,
Energy and Tourism
Министерство
на икономиката,
енергетиката и туризма
1
Bulgaria is a main transport and transit center and is only 3
hours flight from all major destinations in Europe, Russia and
the Mediterranean region
Strategic geographic location
Major transport corridors pass
through Bulgaria
Ministry
of Economy,
Energy and Tourism
Министерство
на икономиката,
енергетиката и туризма
2
Why invest in Bulgaria
•
•
•
Political and business stability
–
EU member since 2007
–
NATO member since 2004
–
WTO member since 1996
–
Currency board backed by IMF
–
Among the lowest budget deficits and government debts in the EU
Low cost of doing business
–
Favorable tax regime
–
Lowest operational costs within the EU
”the culture of impunity that once
plagued Bulgaria has largely gone“
May 27, 2010
Access to markets
–
European Union / European Free Trade Association
–
Russia and CIS
–
Turkey / Middle East
•
Educated and skilled workforce
•
Government Incentives
–
Shortened administrative procedures
–
Preferential acquisition of state or municipal land
–
Financial support for professional training / education
–
Infrastructure subsidies
–
Individual administrative services
Ministry
of Economy,
Energy and Tourism
Министерство
на икономиката,
енергетиката и туризма
„While governments across the eurozone periphery are on the ropes or have
been felled by the economic crisis,
Prime Minister Boyko Borisov's
government has drawn international
accolades for cutting spending while
maintaining high levels of public
support.”
September 10, 2011
3
Why invest in Bulgaria
Advantages
Taxes
•
10 % effective corporate income tax rate
•
10 % effective flat personal income tax rate
•
Equipment imports for projects over € 5 M exempted from VAT
•
5% withholding tax on dividends and liquidation quotas (0% for EU tax
residents)
•
68 Double Taxation Avoidance Treaties including EU, China, Russia and USA;
66 Agreements on mutual protection and promotion of foreign investments
Labor
Government policies
•
Skilled labour
•
Lowest labour cost per hour in EU
•
Employer-friendly labour laws
•
Standard labor contracts with 1-month severance and 20 days vacation
•
Stable and independent government policies
•
Bulgaria is not subject to current Eurozone legislation
•
Financial stability pact ensuring continued low taxation and stable fiscal
policy
Customs & visas
Infrastructure
•
24-hour customs at the warehousing locations
•
Virtual consulate (online visa approval and issue of travel documents)
•
Visa-free transit to non-EU countries
•
Focus on development of infrastructure – 7 highways currently under construction
•
70% of allocated road, rail and industrial zone infrastructure development funds still
available
Ministry
of Economy,
Energy and Tourism
Министерство
на икономиката,
енергетиката и туризма
4
Bulgarian economy has kept on growing despite the financial
and economic difficulties in Europe and worldwide
Bulgarian economy has outperformed
EU average for the last 10 years
7.5%
6.7%
In absolute terms, exports have grown
about 4 times since 2000
22
6.4% 6.5% 6.4% 6.2%
Real GDP
growth (%)
5.5%
5.0%
20
18
16
2.5%
1.9%
1.7%
0.5%
0.4%
14
12
0.0%
10
8
-2.5%
6
Bulgaria
-5.0%
4
EU-27
-5.5%
Exports (€ bn.)
2
-7.5%
0
2003
2005
2007
2009
2011
2013
2000
Source: Eurostat
Ministry
of Economy,
Energy and Tourism
Министерство
на икономиката,
енергетиката и туризма
2002
2004
2006
2008
2010
2012
Source: Bulgarian National Bank
5
Bulgaria’s exemplary financial stability has continued after
the crisis
In 2011, Bulgaria had one of the lowest budget
deficits in EU
BG
Bulgaria was the only European country with
increased credit rating by Moody’s in 2010 and 2011
Aa1
Egypt
-10.0%
Greece
-10.0%
United States
-8.7%
Japan
-8.6%
United Kingdom
Spain
Poland
A1
-8.4%
-8.2%
-5.6%
-5.4%
India
-5.3%
Euro Area
Bulgaria
-4.8%
Hungary
-4.3%
Italy
-3.9%
Czech Republic
-3.8%
Denmark
-3.7%
Turkey
-2.6%
Brazil
-2.6%
China
-1.4%
Germany
Hungary
B1
-1.6%
Turkey
Switzerland
Ireland
Ba1
Austria
Sweden
Lithuania
Baa1
France
Netherlands
Estonia
-1.0%
Budget deficit
(% of GDP)
Caa1
0.2%
0.8%
Greece
Ca
01/10 04/10 07/10 10/10 01/11 04/11 07/11 10/11
1.2%
Ministry
of Economy,
Energy and Tourism
Министерство
на икономиката,
енергетиката и туризма
6
Government financial indicators are remarkable not only in
the region, but on a pan-European scale
Average government debt (2006-2011)
130%
Greece
120%
Italy
110%
100%
Belgium
90%
80%
70%
United Kingdom
Portugal
France
Iceland
Ireland
60%
Poland
50%
Spain
40%
Hungary
Germany
Malta
Austria
Cyprus
Netherlands
Turkey
Croatia
Slovakia
Lithuania Slovenia Czech Republic
Latvia
Romania
30%
20%
Finland
Sweden
Norway
Denmark
Bulgaria
10%
Luxembourg
Estonia
0%
-11%
-10%
-6%
-5%
-4%
-3%
-2%
-1%
0%
1%
15%
16%
Average budget deficit/surplus (2006-2011)
Source: Eurostat
Ministry
of Economy,
Energy and Tourism
Министерство
на икономиката,
енергетиката и туризма
7
The composition of FDI in Bulgaria has changed lately
towards manufacturing and other sustainable sectors
Total FDI
(€mln)
Finance, real
estate, trade
1,103
903
33%
32%
980
1,851
2,736
3,152
6,222
9,052
6,728
2,437
1,151
1,746
34%
34%
47%
50%
56%
60%
73%
81%
76%
100%
Manufacturing,
energy, high
tech services,
other sectors
67%
68%
66%
66%
53%
50%
44%
40%
27%
19%
2000
2001
2002
2003
2004
2005
2006
2007
2008
24%
2009
2010
2011
Source: Bulgarian National Bank
Ministry
of Economy,
Energy and Tourism
Министерство
на икономиката,
енергетиката и туризма
8
Investments by Chinese companies in Bulgaria
Chinese companies that have already chosen
Bulgaria as an investment location:
•
•
Huawei and ZTE :
–
Huawei Bulgaria Branch opened in 2005 and has
become one of the main suppliers to Bulgaria telecom
industry
–
ZTE opened its office in Sofia in 2001. It operates
successfully on the Bulgarian market, providing
telecommunication equipment and network solutions
Great Wall/ Litex Motors:
–
Litex Motors factory near Lovech is the only assembly
plant for Chinese automobiles in Europe
–
Production started in 2012. Maximum capacity of 50
000 cars annually
–
Three models covering various market segments are
being assembled in Bulgaria
•
Tianjin State Farms Agribusiness Group Company
–
In 2011 the Chinese company rented 20 000 decares of
agricultural land in Northwestern Bulgaria
–
All of its agricultural production (maize, lucerne,
sunflower) is exported to China
–
The company is considering further expansion of its
activities in Bulgaria in the field of agriculture (wine
production; animal breeding)
•
In recent years many Chinese companies have invested
in renewable energy
Economic sectors with highest potential
for attracting Chinese investments:
•
Electronics and electrical engineering
•
Machine building
•
Automotive industry
•
IT and BPO
•
Transport & Logistics
•
Agriculture and food processing industry
•
Chemical industry
Ministry
of Economy,
Energy and Tourism
Министерство
на икономиката,
енергетиката и туризма
9
The EU and China – two of the biggest traders in the world
Facts on EU-China cooperation
EU-China trade picture
•
China is the second largest economy and
biggest exporter in the world
•
EU-China trade has increased dramatically in
recent years
•
China has become the fastest growing
market for European exports
•
•
China and the EU are trading more than € 1
billion euro every day
China is now the EU’s 2nd trading partner
behind the USA and the EU is China’s
biggest trading partner (2011):
•
•
By 2015, 90 % of world growth will be
generated outside Europe, with a third from
China alone
At the 15th EU-China Summit held on 20
September 2012, both sides agreed to
launch negotiations on a bilateral investment
agreement as soon as possible.
EU Imports Partners: EU Exports Partners
1. China (€ 292 bn)
1. USA (€ 261 bn)
2. Russia (€ 198 bn)) 2. China (€ 136 bn)
3. USA (€184 bn)
•
3. Switzerland (€ 122 bn)
EU-China main trading goods
 EU imports from China are dominated by
industrial goods: machinery and transport
equipment, and manufactured articles.
 EU exports to China are also
concentrated on industrial products:
machinery and transport equipment,
manufactured goods and chemicals.
Ministry
of Economy,
Energy and Tourism
Министерство
на икономиката,
енергетиката и туризма
10
China is our biggest trading partner in Asia
 In 2011 trade between Bulgaria and Asia totalled USD 4.7 bn, with Bulgarian exports amounting to
USD 2.2 bn – up 22 % from 2010. The largest increase of Bulgarian exports was to China (62%), India
(53%) and Japan (42%)
 In the third quarter of 2012 China became our second largest trading partner among non-EU
countries, after Turkey
 Exports to China have increased nearly 33 times and imports 7 times since 2002
1200.0
1110.5
1000.0
961.0
942.8
832.6
800.0
708.0
628.4
600.0
653.8
467.0
400.0
404.7
279.4
250.0
200.0
157.3
137.4
60.3
0.0
12.4
2002
2003
36.9
2004
71.9
2005
78.0
2006
Export ($ m ln.)
101.7
2007
2008
136.8
2009
2010
2011
Im port ($ m ln.)
Ministry
of Economy,
Energy and Tourism
Министерство
на икономиката,
енергетиката и туризма
11
Trade in goods between Bulgaria and China (2011)
Exports to China were dominated by refined copper
and copper ores
Item
Refined copper and copper alloys
Imports from China were quite diverse
%
68.1
Item
Semiconductor devices
%
10.3
Copper waste and scrap
8.0
Air-conditioning machines
2.9
Copper ores and concentrates
4.2
2.6
Copper mattes; cement copper
2.3
Parts and accessories for
motorcycles and bicycles
Electric water heaters and electric
space heating apparatus
2.5
Telephone sets
2.4
Ball or roller bearings
2.4
Taps, cocks, valves and similar
appliances for pipes, boiler shells,
tanks
2.2
Flat-rolled products of iron or nonalloy steel
1.9
Toys
1.8
Other
71.0
Boards, panels, consoles and other
bases for electric control and
distribution of electricity
Lead ores and concentrates
1.9
1.7
Organo-sulphur compounds
1.4
Aluminium waste and scrap
1.3
Automatic regulating and controlling
instruments and apparatus
1.0
Other
10.1
There is scope for expanding Bulgarian exports to China of agricultural and food products, wine,
essential oils, perfumery and cosmetics, dairy products, machinery and other commodities.
Ministry
of Economy,
Energy and Tourism
Министерство
на икономиката,
енергетиката и туризма
12
Many leading multinational companies have chosen Bulgaria
as a location for their production and high-tech services
IT & BPO
Mechanical and
Electrical
Engineering
Construction
Materials
Telecom and
Media
Ministry
of Economy,
Energy and Tourism
Министерство
на икономиката,
енергетиката и туризма
Energy
Finance
13
Infrastructure projects in Bulgaria
Zagora Airport: EU - China Logistics Hub
Project Needs
By 2020 EU transport hubs will not be able
to handle all incoming air traffic
• Air cargo increase
– 5.8 M tonnes increase in air cargo to and from
the EU
Zagora Airport
• The new Zagora Logistics Hub offers
excellent location
– 3 hours by plane to all EU locations;
– 78% of which comes from Asia
– 24 hours by truck to all EU locations
– Available capacity will fall short by 5 M tones
– Central location at the intersection of three EU
transport corridors
• Passengers increase
– 307 M increase in passengers to and from the
EU
– 26% of which comes from Asia
– Available capacity will fall short by 150 M
passengers
– 3-hour drive to Turkey, Greece, Romania, Serbia,
Macedonia
– Intermodal capabilities: air, rail and road transport
– Room for ten-fold expansion
– Good weather conditions
• Fast customs and visa processing for
countries with EU visa regimes
• Infrastructure
New logistics centers will be necessary to
address the new air traffic, especially
between Asia and the EU
- Existing air, road and rail infrastructure currently
upgrade
- E-80 Highway (EU transit Corridor No 8; 1km from the
airport)
- Railway (EU transit Corridors No 8 and No 10;
electrified; 1km from airport)
- Land availability
Ministry
of Economy,
Energy and Tourism
Министерство
на икономиката,
енергетиката и туризма
14
Zagora Airport: EU - China Logistics Hub
Why Zagora Airport
Zagora Logistics Hub Overview
•
Expand current airport to become large
international transit hub
–
Area: 5 km2 current area (expansion planned)
–
Cargo capacity: 250, 000 tonnes per year
–
2 runways handling Boeing 747 and Airbus 380
–
Passenger capacity: 10 -20 M per year
•
Combined Air/Road/Rail cargo terminal
•
Large free trade industrial zones and
assembly facilities
•
Specialized customs/ visa handling
•
Permanent Trade Expo for Chinese manufacturers
•
Zagora will serve as a major distribution hub for
the EU – China air traffic
•
Distribute traffic to smaller airports in the EU, CIS,
North America and Middle East
•
Fast track visa and customs service
•
Provide additional landing slots for wide-body
aircraft
Ministry
of Economy,
Energy and Tourism
Министерство
на икономиката,
енергетиката и туризма
Zagora
Logistics Hub
15
Infrastructure projects in Bulgaria
Port of Varna - General Information
Key part of important domestic and
international logistical chains
• The biggest port complex in Bulgaria
• A convenient bridge for traffic of goods
between: Europe, Russia, Ukraine, Caucasus,
Central Asia, Middle and Far East
• The port can be used during the whole year
• Modern equipment and specialized terminals:
Varna East; Varna West ; Varna Rail Ferry
Complex
• Operating link in the logistical chain “river –
rail – sea” for transit traffic to/from Central
Europe routed via the Danube Port of Ruse and
the Ruse – Varna Railway Line
Growth Potential
• Part of Comprehensive Trans-European
Transport Network – opportunity for European
funding
• Part of Pan-European Transport Corridor VIII
• Strong industrial hinterland, good rail and road
access; excellent conditions for transit traffic
between Europe, the Middle and Far East and
TRACECA Corridor
• Easy and convenient access to the national road
network
• Certified in accordance with the ISPS Code
requirements
Ministry
of Economy,
Energy and Tourism
Министерство
на икономиката,
енергетиката и туризма
16
Port of Varna
Port Terminals - Technical Parameters and Future Development
Varna West
Varna East
Ezerovo Thermal
Power Station
Petrol
Varna Rail
Ferryboat
17
13
3
3
2
3 062
2 072
530
300
400
Open (m2)
storage area
340 000
115 000
4 200
-
-
Warehouse
(m2)
36 000
23 400
-
-
-
25 Electric Portal
Cranes
18 Electric Portal
Cranes, 2 Portainers
6 Electric Portal
Cranes
-
-
General Cargo, Bulk
Cargo, Liquid Cargo,
Ro-Ro, Containers
General Cargo, Bulk
Cargo, Containers,
Passengers
coal
Oil products
Ro-Ro
Berths
Total Berth
Length (m)
Equipment
Commodities
• Hub port – Capacity to handle Post Panamax container ships, 6 750 TEU, L – 300 m, B – 40 m.,
H – 14.5 m.
• Construction of Grain Terminal on the North Coast of the Varna Lake – Capacity 1,85 mln. t.
Plans for port
development
and PPP:
• Expansion of the container terminal – Varna West – Adding capacity of 100 thousand TEU.
• Construction of terminal for liquid dangerous goods – Varna West – Capacity of 1.2 mln. t.
• Construction of passenger terminal and business center – Varna East
• Under preparation for concession: Port Terminal of Varna West, Varna Rail Ferryboat Complex,
Dangerous Goods Terminal, Ezerovo Thermal Power Station, Petrol Terminal
Ministry
of Economy,
Energy and Tourism
Министерство
на икономиката,
енергетиката и туризма
17
Infrastructure projects in Bulgaria
Port of Burgas - General Information
Traffic and Infrastructure significance
• A connecting point between Pan-European
Transport Corridor VIII and TRACECA
• The nearest largest port to Bosphorus
• Serves the big industrial centers, located in the
South of the Balkan Mountain
• Services a great part of the transit flows coming
from Western Balkan and Central European
countries
• Trakia Motorway and the Plovdiv – Burgas
Railway are the main transport links to the port
• Included in the Core Trans-European Transport
Network – opportunities for European funding
• Easily accessible to the sea
• The port can be used during the whole year
• Modern equipment and specialized terminals:
Burgas East; Burgas West; Burgas East 2; Bulk
Cargo Terminal
• Certified in accordance to the ISPS Core
requirements
Ministry
of Economy,
Energy and Tourism
Министерство
на икономиката,
енергетиката и туризма
18
Port of Burgas
Port Terminals - Technical Parameters and Future Development
Burgas East
Burgas East Bulk
Cargo Terminal
Burgas East 2
Burgas West
Nessebar
14
7
3
5
3
1 965
820
715
890
410
Open (m2)
storage area
50 000
35 000
42 225
191 000
12 000
Warehouse
(m2)
35 000
5 328
-
11 000 + 7 000
-
Equipment
-
23 Electric Portal
Cranes
7 Electric Portal
Cranes
11 Electric Portal
Cranes
-
General Cargo, Bulk
Cargo
General Cargo, Bulk
Cargo, Liquid Cargo,
Ro-Ro, Containers
Bulk Cargo,
Containers
General Cargo, Bulk
Cargo, Liquid Cargo,
Ro-Ro, Containers
Berths
Total Berth
Length (m)
Commodities
Passengers
• Terminal 2B – for General Cargo
• Terminal 3 – for Ro-Ro and ferryboat transportation
Plans for port
development
and PPP:
• Terminal 4 – for containers handling
• Construction of passenger terminal in Burgas East, as part of the SUPER BURGAS Project
• Under preparation for concession: Burgas-West Port Terminal, Nessenar Port Terminal
Ministry
of Economy,
Energy and Tourism
Министерство
на икономиката,
енергетиката и туризма
19
Infrastructure projects in Bulgaria
Black See Motorway
The project is of both national and international importance due to its potential to significantly
improve connections between Bulgaria, Albania, Macedonia, Italy and other EU countries to the west
of Bulgaria
•
•
•
National Significance
–
Will improve route between the west and east of the country
–
Links to A-1 Trakia motorway and A-2 Hemus motorway
International Significance
–
Five Pan European Corridors pass through the country: IV, VII,
VIII, IX, X
–
Improvements are contained within Pan-European corridor VIII
– linking Durres, Tirana, Skopje, Sofia, Stara Zagora, Burgas
and Varna
Economic Context
–
Link to Varna and Burgas ports – key strategic gateways for
trading partners such as Ukraine, Russia and Turkey
–
Burgas – home of the biggest oil refinery in SEE
–
The section is currently served by road which is mostly single
carriageway and running through many towns and villages
–
Close to the coast, the section links many resorts between
Varna and Burgas
–
Preferred option – 94.8 km section of new lane motorway
Ministry
of Economy,
Energy and Tourism
Министерство
на икономиката,
енергетиката и туризма
20
Black See Motorway
Cost Benefit Analysis, Financial and Public-Private Partnership
Cost Benefit Analysis
•
Net Present Value: € 857.48 m
•
Economic Internal Rate of Return: 21.28 %
•
•
Project Partnership
•
National Company Strategic Infrastructure Projects –
entity responsible for the project
Economic Benefit to Cost Ratio: 4.73
•
Preferred form for development – public-private
partnership
Evaluation used – multi-modal transportation model
•
Period – 35 years
/The Bulgarian Transport Model/:
•
Parties – Bulgarian state and a strategic investor
•
Bulgarian state does not provide any state or bank
–
people movement
–
movement of freight
•
Total project costs - € 722.6 m
•
€ 474.3 m of this amount = construction costs
•
The analysis shows that the project is a strong
performer in economic terms
•
No sources of income have been included in the
analysis - further study needs to be performed
guarantees or guarantee traffic volume
•
Private partner shall bear all risks and costs
Ministry
of Economy,
Energy and Tourism
Министерство
на икономиката,
енергетиката и туризма
21
Potential investment locations in Bulgarian industrial zones
The industrial zones in Bulgaria offer attractive conditions for establishing production, warehousing, logistics
and other activities at a very competitive prices
- 14 functioning zones, with active local and foreign investors
- 21 zones, either with fully or mostly developed infrastructure and ready to be invested in
- 27 zones under development
Ministry
of Economy,
Energy and Tourism
Министерство
на икономиката,
енергетиката и туризма
22
National Company Industrial Zones - Strategic partner for
investors in Bulgaria
National Company Industrial Zones “NCIZ”
is a state-owned company specialized in:
 Industrial park development
 Management of Industrial zones and
Innovation centers
 Provision of additional services
Main activities:
 Development of industrial zones in line with the
latest standards
 Encouragement of investments in sectors with
high added value
 Creation of favourable conditions for investment
Total of 8 projects
4 969 500 m² total area
841 580 m² built area
225 500 m² open warehouses
Three developed industrial zones: Ruse; Vidin; Svilengrad
Five zones on early stages of development: Sofia; Burgas;
Karlovo; Pleven/ Telish; Varna West
Ministry
of Economy,
Energy and Tourism
Министерство
на икономиката,
енергетиката и туризма
23
Travel & Tourism – important and growing industry
Facts and figures:
•
International and domestic tourism revenues form 10.5 % of
GDP
•
In 2011 revenues from international tourism totalled 2 852.4
million euros
•
8 712 821 foreign visitors in 2011, of which 6 328 023 tourists
•
4.6 % annual growth in international tourist arrivals in 2011
What do we offer:
•
Excellent climate and environmental conditions
•
Unique combination of seaside, mountains and mineral water
•
Long lasting tradition in balneology and spa tourism (more than
600 mineral springs)
•
Ancient history and unique cultural heritage
•
Nine cultural sites in the UNESCO list
•
Vivid customs and friendly people
•
Bulgaria is well known for its valley of roses; Bulgarian rose oil
is one of the main ingredients used in high quality perfumes all
over the world
•
Unique experiences throughout the whole year
•
Affordable prices
Ministry
of Economy,
Energy and Tourism
Министерство
на икономиката,
енергетиката и туризма
24
Bulgaria – emerging golf destination
•
International Association of Golf Tour Operators’ award in 2012 –
“Undiscovered Golf Destination”
•
7 operational golf courses, situated near the Black see coast or in the foot of
the mountains, designed by some of the biggest names in golf – Gary Player,
Paul McGinley, Ian Woosnam, Peter Harradine
–
excellent leisure, treatment and wellness facilities
–
VIP treat
–
gourmet establishments
–
shopping outlets
•
Professional Golfers Association
certified instructors
•
Residential property and rent
Ministry
of Economy,
Energy and Tourism
Министерство
на икономиката,
енергетиката и туризма
25
Ministry of Economy, Energy and Tourism
Sofia 1052, 8 Slavyanska Str.
Phone: + 3592 940 7001
Fax: +3592 987 21 90
E-mail: [email protected]
Web: www.mee.government.bg
Welcome to Bulgaria!
Ministry
of Economy,
Energy and Tourism
Министерство
на икономиката,
енергетиката и туризма
26