Transcript Investment Climate and Role of SARIO

Perspectives of business development between
Slovakia and Italia
Slovacchia: opportunitá per le imprese del
Triveneto grazie ai fondi strutturali europei
Vicenza – Italia, 25. Novembre 2008
www.sario.sk
COUNTRY PROFILE
Area (km2):
49,035
Population:
5.379.000
Capital:
Bratislava
Member of:
OECD, WTO, NATO, EU
Shengen area
Eurozone (1.2009)
MARKET OF 300
MILLION IN 1000KM
Strategic location with great export
potential
EURO ADOPTION IN 2009
EURO will be introduced as the official currency in 2009
with the exchange rate 1 EUR=30.126 Sk
€
2009
Source: National Bank of Slovakia
EURO implementation impact:
 No currency exchange risk
 Lower real interest rates
MACROECONOMIC OVERVIEW
10,4
Basic macroeconomic indicators 2007 (2008*)
10,4% (6%*)
6,8% (n.a.)
Real wages growth
4,3% (4,5%*)
1,9% (4%*)
Highest economic growth in EU
Growing 2007
A1 positive outlook
A+ stable outlook
A
positive outlook
GDP
HICP Inflation
4,3
productivity
Labour productivity growth
6,8
real wages
Real GDP growth
SARIO KEY ACTIVITIES

Creation of a suitable investment and business-friendly
environment in Slovakia.

Assisting with the completion of investment projects of
foreign investors and ancillary services.

Consultation and solutions for individual State aid to
investors; processing applications for State aid.

Mapping out and creating databases of available real estate
and industrial parks.

Assisting small and medium businesses in their search for
export and trade opportunities abroad.

Assisting municipalities and small and medium business
applying for money from the EU structural funds and helping
them complete their projects.
Slovak Investment and Trade Development Agency
SARIO
Ministry of Economy
SARIO
core sections
Foreign Direct
Investment
Foreign Trade
Structural funds
FDI SECTION
We offer a wide range of services to investors:

Provision of sector-specific information

Analyses of labor market, taxation, macroeconomics etc.

Advice on issues related to starting a business

Recommendation on ideal location and suitable real estate

Facilitation of communication with national and local
authorities

Assistance with applications for investment incentives
SARIO - Real Estate Database
SARIO regional representives monitor the availability of
industrial ground / facilities and compile a real estate database
SARIO project managers prepare comprehensive real estate offers
for potential investors according to their requirement
Greenfield
No. of real
estates in
database:
309
Brownfield
305
Office space
35
Tourism
9
FOREIGN DIRECT INVESTMENT
Significant industrial FDI : Automotive
- highest per capita car production in the world
Electronics
SARIO Investment projects
Number of
projects
Finished
projects in
2007
Finished
projects in
1-2 Q 2008
Current
64
22
131
Investment
(M. EUR)
1.277
240,3
Business area
car, electronics,
machinery, textile,
plastics, metal
processing
plastics, car,
electornics,
machinery
car, electronics,
machinery, textile,
plastics, metal
processing,
chemistry, food
SARIO INVESTMENT PROJECTS
Name of company
Country of
origin
Number of
new job
Investment
amount in
mil. Eur
1500
76,3
Location
SONY
Japan
Nitra
SAMSUNG
South Korea
450 + 800
63
SAMSUNG Electronics
LCD
South Korea
1200-1400
320
Voderady
KIA Hyundai
South Korea
3400
1100
Žilina
Peugeot-Citroen
France
3500
750
Trnava
GFT
Germany/USA
787
345
Kechnec
DELL
USA
1000 + 850
8
Galanta
Bratislava
FDI completed projects by country 2002-2007
Source: SARIO 2008
FDI Completed projects by sector 2002-2007
Source: SARIO 2008
10 reasons

WHY SLOVAKIA ?
Location – Central European hub
 Political
and Economic stability
 High Economic Growth

 Highly
High Labour Productivity
skilled workforce

 Flexible
Strong engineering tradition
Labour Market

 Business
friendly environment
19% flat tax rate
UNIVERSITY EDUCATION
Total Number of Students in
Žilina
2007/2008
Ružomberok
12 269
Trenčín
10 204
Martin
212 273
Graduates in
Trnava
18 400
Bratislava
70 413
Prešov
14 178
Banská
Bystrica
2007/2008 –
16 930
42 030
Košice
27 031
Zvolen
4000
Nitra
23 410
Komárno
Universities across Slovakia & major fields of studies
Source: Institute of Education Information and Prognosis of Slovakia, 2008
ROAD INFRASTRUCTURE
R5
D3
R3
Žilina
R6
Považská
Bystrica
R4
Dolný Kubín
D1
Martin
Poprad
D1
Prievidza
R2
R3
R1
Banská Bystrica
D1
Michalovce
R2
R4
D1
Piešťany
R2
D1
Nitra
Bratislava
R1
R3
R7
Rimavská
Sobota
Lučenec
R1
D4
Veľký Krtíš
Highway in operation
Speedway in operation
R7
D2
Humenné
Košice
Zvolen
Trnava
D4
Prešov
FUTURE
2010
2008
Trenčín
Nové Mesto
nad Váhom
D2
D1
Spišská Nová Ves
Nové Zámky
Under construction
Motorway in operation
Existing network & construction projection
AIRPORT INFRASTRUCTURE
Žilina
Prague
Poprad
London
Košice
Vienna (A)
Bratislava
All major
European
cities
All major
European &
World cities
Flight Destinations
Note: Flight destinations as of January 2008
Vienna
Prague
Bratislava
Dublin
London
Poprad
Industrial Zones & Clusters of suppliers
Cluster for VW Slovakia
Cluster for Peugeot Citroen
Kys. Nové Mesto
Cluster for Kia Motors
Zilina
Martin
Electrotechnical cluster
Poprad
Dubnica n.Vahom
Presov
Trenčín
Nove M. n. Vahom
Trnava
VW -Lozorno
D.N. Ves
Bratislava
Banská
Bystrica
Košice
Roznava
Zvolen
Hlohovec
Malacky
Humenne
Nitra
Galanta
Vrable
Sladkovicovo
Wood processing zone
Steel processing industry,
heavy industry zone
Chemical orientated zone
Flexible Labour Market






3 months probation period
Weekly working time 40 hrs net (excluding 30 min. break)
+ 8 hrs overtime per week
Annual leave of 20 days (25 days after 15 years of
employment)
150 hrs of overtime per year can be ordered by the
employer
(a further 250 hrs of overtime annually can be agreed with
employees)
No obligation to pay bonuses for 150 hrs of overtime per
year
Bonuses for overtime (25%) and for working on bank
holidays (50%)
Wages and Obligatory Contributions
Minimum monthly wage Slovakia
242 EUR / month
Poland
Average monthly salary Slovakia
593 EUR / month
Czech rep.
710 EUR
Slovakia
783 EUR
593 EUR
737 EUR
Romania
354 EUR
Hungary
295 EUR
Central & Eastern European Countries Comparison
Bulgaria
* Excl. social security contributions covered by employer
Source: CE Research LLP
Salary
Slovakia - INVESTMENT AID
Slovakia - INVESTMENT AID
Chance to reduce investment costs
Aid can be granted to following projects ...
Minimum required of investment
•
Industrial projects
mil. € 26.6 / 13.3 / 6.7
•
Technological centers
mil. € 1.32
•
Centers of strategic services
mil. € 1.16
•
Tourism centers
mil. € 16.6 / 8.3 / 3.3
Further requirements are set separately for each type of projects.....
INDUSTRIAL PROJECTS
basic requirements
new factory or expansion
long- term assets in min. amount of 26.6 / 13.3 / 6.7 mil. EUR
new machinery min. 60% of the total costs



CA
BY
26.6 mil. EUR
PB
M
Y
S
E
MA
BA
NM
PN
TT
LM
BB
DT
PO
R
V
S
KS
LC
K
N
ML
SV
HE
RS
I
TTV
6.7 mil. EUR
VK
NZ
DS
V
VT
KE
PPT
KA
SP
G
GL
RA
ZV
SK
B
SB
LE
BR
BS
ZM
PP
BJ
SN
ZH
LV
SA
K
KK
RK
TR
ZC
NR
GA
PD
PE
HC
PK
P
SC
BN
TO
DK
MT
TN
SL
TS
KM
ZA
PU
IL
S
A
NO
13.3 mil. EUR
Investment must be implemented in max. 36 months
S
SO
MI
Technological centers

Procurement of tangible and intangible assets in the
amount of at least 40 mil. SKK (1.2M EUR)

At least 50 % of procured assets have to be covered by
own equity

At least 60 % out of the total amount of new employees
have to achieve university education

Procurement of new production and technology
equipment.
Centers of Strategic Services

Procurement of tangible an intangible assets in the
amount of at least 35 mil. SKK (1M EUR);

At least 50 % of procured assets have to be covered by
own equity;

At least 30 % out of the total amount of new employees
have to achieve university education;

Procurement of new production and technology
equipment.
ELIGIBLE COSTS
include costs of:
Land + Buildings + New machinery
Licenses + Patent rights + Know how
50%
50%
40%

How much of eligible cost can be covered by aid?
FORMS OF INVESTMENT AID




Cash grant
Corporate income tax relief
Contributions on newly created jobs
Transfer of real estate for a discounted price
DECISION ON GRANTING OF AID
Decisive factors:




Region of investment
Number of new jobs, Amount of investment
Added value of investment
Overall importance for economy
In period 2002-2007 aid for 84 Projects (over 1 bn.EUR)
Slovak Investment & Trade Development Agency
SARIO
Foreign Trade Section
Departments
International
Communication
Regional offices
SARIO
Information
Centre
Main activities on TRADE
 Participation
on Expositions and Trade Fairs
 Organization of business missions abroad and
foreign missions in Slovakia
 Assistance to SME related to their promotion
abroad
 On-line databases (S.I.C.)
 Matchmaking services
 Subcontracting activities
 Joint ventures opportunities
 Presentation of investment activities abroad
 Special market and sector analysis
How to cooperate with Foreign Trade

DEMAND

First contact:
Territory Manager:


SUPPLY

First contact:
Regional managers

Contact to Territory Manager to
find a suitable foreign partner
S.I.C.
department
Russian Federation + CIS
ASEAN countries
Central and Middle East
Central and West Europe
Balcan countries
Contact to Regional offices to
find a suitable partner in
Slovakia
S.I.C. - SARIO Information Centre
At SIC you can find following:
 Good suppliers
 Investment partners
 Information about international tenders
 Partners for joint ventures
 New subcontractors
Slovak subcontracting companies operate in the following industries:
 Mechanics
 Electro mechanics
 Electronics
 Plastic and rubber
 Wood and furniture
 Textile and clothing
http://www.sic.sario.sk
Slovak Matchmaking Fair
Unique & the most important subcontracting business event in
Slovakia
Mission – find for you a suitable cooperation partner from
various sectors of industry in Slovakia






Number of companies participated: 240
Embassies attended: 16
Combined Chambers of Commerce +
organizations: 8
Number of visitors/persons: 564
Sector represented: machine engineering,
electrotechnics, electronics, metallurgy,
plastics, IT, power engineering
Partner country: Czech Republic
III. Slovak Matchmaking Fair 2009
Get the best of east Slovakia high potential
Place: Kosice-Prešov cities (Slovakia)
 Date: November 2009


Represented sectors:
 machinery and automotive
 electro technical industry
 metallurgy
 plastic and chemistry
 agriculture and food industry
 IT (soft- and hardware)
 wood-processing
Bonus:
 Matchmaking meetings
 Many kinds of presentations
 Cultural and culinary adventure
Subcontracting
Rubena Slovakia
Kinex
Chemni Usip
PSL
PS Vojus
FLAMM Adtool
SULE IKS
AVC Čadca
ZVL Žilina
VURAL
Krasplast Krasňany
DANA
Metalsint
MIBA Slovakia
KLF-ZVL
INA
MartinmetalKováčňa
VW Martin
Eybl
Matador
Makyta
Čadca
TATRAMAT
TATRAMAT Quasar
Schüle Slovakia
.
. Kysucké Nové Mesto
Bytča .
Dolný Kubín .
. Považská Bystrica
Púchov .
.
Dubnica nad Váhom .
. Poprad
Liptovský Hrádok
Krompachy .
.
.
. Prievidza
.
.
Myjava
.
Nové Mesto n. V.
.
.
. Brezová. pod Bradlom Topoľčany .
. Žiar nad
Hronom
.
Senica
. Detva
Banská Štiavnica .
.
. Vráble
. Nové Zámky
. Dunajská Streda
.Veľký Meder
. Kolárovo
Contitech Vegum
Contitech Vib.Cont
ZŤS Metalurgia
SEZ
Snina
Humenné
.
Michalovce .
TATRA Sipox
Magna Slovteca
SlovBus
Delphi
Podbrezová
Dol. Vestenice
Bánovce n.B.
.
Železiarne Podbrezová
Chemes
Siemens
MEZ I nžiniering
Mireal
Hnúšťa
Vlkanová
Technická Guma
Hriňová
Subtil Slovakia
PFS
Vihorlat
MOPS Press
. Stropkov
TESLA
L. Hrádok
Leoni Autokabel
DMD Holding
SAM Holding
MOTOSAM
Tesla
Stropkov
ZVL Auto
VAP
GBI
Fragokov
Smrečina Holding
SACHS
Lisovňa Trnava
Zlieváreň Trnava
TZK
BOGE Slovakia
SAO
SEWS
Osram
ZSNP Zlieváreň
ZSNP Rautenbach
ZSNP Foundry
Pal-I nalfa
Tesmech
Švec a spol.
SCHÜTT
KrombergSchubert
PPS Detva Holding
Hodruša-Hámre
Hriňovské strojárne
YAZAKI Debnár Slovakia
AkuTrade
Rotobalance
Volkswagen Slovakia
Johnson Controls
Sommer Allibert Systemtechnik
Heiland
BAZ-Inalfa Metal, BAZ-Naskom
Kablo Pirelli
Presskam
Technické sklo
Brose Slovakia
SAI Automotive , SAS Automot.
Slovakia Door Company
Grupo Antolin
Plastic Omnium
Lear Corporation
Inergy Automotive Systems
VSŽ Košice
VSS
Kto
Küster
Witzenmann
VW Elektrické
systémy
Služba vdi
SEC
Plastika Nitra
Vúsapl
Motokom
Edscha
April 20th,2003
SARIO „made in slovakia“
project for 3 years
Promotion and support of Slovak traditional, original and top class goods
Partners:
• Ministry of Economy
• National Agency for Development of SME
• Chamber of Commerce and Industry
• municipalities
• entrepreneurs from Slovakia
• foreign partners (organizations and
companies)
Activities:
• new internet portal
• professional personnel
• “exporter of the year” and “product of the year”
• global promotion “Made in Slovakia”
• workshops & seminars in Slovakia and abroad
NEW: on-line „Automotive database“
Complete information database of sub-suppliers network in
automotive industry, suppliers for production of various
vehicles (bus, microbus, omnibus, motorbike, truck, trailer,
semi-trailer)
 Circa 400 companies registered


New portal database with
opportunity to seek producers
online, limited edition of
presentation CD

Partners: Ministry of Economy,
Automotive Industry Association
Public accessibility 2nd quarter of 2009
EXPORT - Main Foreign Trade Partners for 2007
Italy
7%
Others
19%
CR
15%
Austria
7%
Spain
2%
Russia
2%
Poland
7%
USA
4%
Germany
25%
France
5%
Hungary
6%
IMPORT - Main Foreign Trade Partners for 2007
CR
8%
Others
50%
Russia
8%
Poland
3%
Italy
3%
Austria
2%
Spain
1%
Germany
14%
France
2% Korea
3%
Hungary
3%
China
3%
Foreign trade Slovakia - Italy
thous. EUR
2002
Export
Import
Turnover
Balance
2003
2004
2005
2006
2007
1 614 767
1 403 665
1 373 478
1 642 559
2 080 321
2 438 366
1 190 050
1 191 120
1 268 982
1 272 510
1 553 150
1 553 088
2 804 817
2 594 786
2 642 460
2 915 069
3 633 471
3 991 454
424 717
212 545
104 496
370 049
527 170
885 277
100,000,000
90,000,000
80,000,000
70,000,000
60,000,000
Export
50,000,000
Import
40,000,000
30,000,000
20,000,000
10,000,000
0
2002
2003
2004
2005
2006
2007
Foreign trade Slovakia – ITALY
Export from Slovakia to Italy 1-5 2008
(thous. EUR)
Vehicles other than railway or tramway rolling-stock, and parts and
accessories
Electrical machinery and equipment and parts thereof; sound recorders and
reproducers, television image and sound recorders
Nuclear reactors, boilers, machinery and mechanical appliances
Plastics and articles thereof
Aluminium and articles thereof
Articles of iron
Paper and paperboard; articles of paper pulp, of paper or of paperboard
Iron and steel
Import from Italy to Slovakia
1-5 2008
282 457
273 938
135
52
52
38
37
34
511
829
615
086
845
832
(thous. EUR)
Nuclear reactors, boilers, machinery and mechanical appliances
149 774
Vehicles other than railway or tramway rolling-stock, and parts and accessories
89 054
Electrical machinery and equipment and parts thereof; sound recorders and
reproducers, television image and sound recorders and reproducers
76 792
Articles of iron
60 461
Plastics and articles
44 810
Iron and steel
37 848
Thank you for your attention!
Juraj Šumichrast
Director of Foreign Trade Section
SARIO
Slovak Investment & Trade Development Agency
Tel.: +421-2-58 260 310
Cell.: +421-910 828 223
Fax: +421-2-58 260 509
Email: [email protected]
www.sario.sk