Transcript 1_Minister Dobrev - Invest Bulgaria Agency

Bulgaria – Your Investment Destination
in Europe
Tokyo,
14 December 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 the
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 major 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
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 recently
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
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
9
Japanese Investment in Bulgaria
Opportunities for investment in
Bulgaria in:
Some Japanese companies which have
already chosen to invest in Bulgaria:
•
•
•
•
Yazaki Corporation
–
Yazaki, a top wiring harnesses producer, decided to
come to Bulgaria and build a factory in the city of
Yambol in 2006. The company has become an employer
for more than 2000 people.
–
Yazaki’s facilities in Bulgaria are supplying to automobile
manufacturers like Renault. The company is planning
further expansion in the city of Sliven.
Mitsubishi Heavy Industries (MHI)
–
MHI is currently operating a 35 MW wind farm in
Bulgaria near Kaliakra. For that purpose, MHI
established a joint venture with the Bulgarian company
‘INOS 1’ in late 2005.
–
The Kaliakra wind farm (KWP) was the first project of a
Japanese company in power generation in Bulgaria.
Tokushukai Medical Corporation
–
Tokushukai Medical Corporation invested in ‘Tokuda
Hospital’ in Sofia which opened in 2006. This was a
flagship project and Dr. Tokuda’s first hospital outside
Japan. The hospital now offers more than1000 hospital
beds. It comprises 32 specialized medical departments
and has 3 operation blocks with 22 surgery theatres.
More recent good examples are:

Aquafarm’s ongoing geothermal plant project in
Sapareva Banya;

Pentax Life Care’s decision to invest in a service center
in Plovdiv; etc.
•
Electronics & Electrical Engineering
•
Automotive Industry & Parts; Machine
building
•
IT and BPO
•
Transport & Logistics
•
Agriculture and Food Processing Industry
•
Chemical Industry
Ministry
of Economy,
Energy and Tourism
Министерство
на икономиката,
енергетиката и туризма
10
Potential investment locations in Bulgarian industrial zones
Industrial zones in Bulgaria offer attractive conditions for establishing production, warehousing, logistics
and other activities at 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
11
Investment incentives under the Investment Promotion Act
(IPA)
 Equal treatment of Bulgarian and foreign investors
 The investment has to be related to the setting up of a new enterprise/venture, expansion,
output diversification with new additional products or a fundamental change in the overall
production process of existing enterprises.
 The investment is to be made in the following sectors: Manufacturing; Research & development;
Education; Healthcare; High-tech services; Warehousing and Logistics
 Investment classes A and B (depending on the value, region and sector allocation of the
investment); Priority projects (depending on the value, jobs created and region allocation of the
investment)
Euro m
Region or Sector
Class B
Class A
General
5 - 10
>10
In municipalities with unemployment rate equal or more than the country
average
2 – 3.5
>3.5
In high-tech activities in the manufacturing
industry for the whole country
2 – 3.5
>3.5
1–2
>2
In high-tech activities in the services, computer technologies and R&D
sectors for the whole country
Ministry
Ministry
ofofEconomy,
Economy,
Energy
Energyand
andTourism
Tourism
Министерство
на икономиката,
енергетиката и туризма
12
Investment incentives under the Investment Promotion Act
(IPA)
 Priority investment projects - depending on the value, jobs created and region allocation of the
investment;
 The investment to be made in all economic activities
Investment
(Euro m)
Jobs
General
>50
>200
In municipalities with unemployment rate equal or more than the country
average
>25
>100
In high-tech activities in the manufacturing
industry for the whole country
>25
>100
In high-tech activities in the services, computer technologies and R&D
sectors for the whole country
>10
>50
Industrial zone development
>35
>100
>15
>50
Region or Sector
High-tech park development
Ministry
Ministry
ofofEconomy,
Economy,
Energy
Energyand
andTourism
Tourism
Министерство
на икономиката,
енергетиката и туризма
13
New Measures in the Investment Policy
Sector Strategy- adopted in 2011
 Eight priority sectors
 Amendments to IPA in 2012
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Financial support for reimbursement of
social security payments expenditure for
newly created jobs for 2 years – 17,4%
labour costs due by the employer;
-
Opportunity for certifying projects in the
service sector (in particular outsourcing),
where a significant employment is
generated;
-
Decentralization of the certification process issuing of investment certificates by the
municipal council and the mayor of the
municipality in which investment projects up
to EUR 1 mln. are implemented.
Electronics
and Electricals
Health &
health tourism
Food &
Agriculture
Information
Technology
Sector strategy
Transport &
logistics
Outsourcing
Chemical
Industry
Machinery &
Transport
equipment
Министерство на икономиката, енергетиката и туризма
14
There is significant potential for increase and diversification
if trade between Bulgaria and Japan
• After 2003, imports and exports have been
varying widely
• The structure of imports and exports can be further
diversified
Exports to Japan
%
Electronic integrated
circuits & microassemblies
220
209
188
14
2003
16.6
Motor cars and other motor
vehicles
15.8
Machinery for preparing
tobacco
15.3
Insulated wire, cable; optical
fibre cables, etc.
13.0
Essential oils
13.9
Bars and rods of alloy steel
7.0
Prepared pigments,
opacifiers and colours
6.9
Parts and accessories for
machines of headings 8469
to 8472
5.7
Waste and scrap of
precious metals
136
118
14
2004
17
2005
26
2006
36
2007
105
26
2008
93
21
20
2009
2010
95
32
2011
Export (USD mln.)
Import (USD mln.)
%
(main items), 2011
(main items), 2011
308
Imports from Japan
13.2
Molluscs
5.1
Antibiotics
4.3
Woven fabrics of synthetic
yarn
5.3
Crustaceans
2.6
Acrylic polymers in primary
forms
5.3
Wine of fresh grapes
2.3
Wristwatches
2.0
Source: Bulgarian National Bank
Ministry
of Economy,
Energy and Tourism
Министерство
на икономиката,
енергетиката и туризма
Tractors
Steam turbines; other
vapour turbines
3.6
3.4
Source: Ministry of Economy
15
The EU and Japan – Two of the Largest Traders in the World
Facts on EU-Japan Cooperation
EU-Japan Trade Snapshot
• Japan, being the third largest economy in the
world and a leading global exporter, is among
our major partners in East Asia.
• Japan is the EU’s second largest trading
partner in Asia after China. The EU ranks third
among Japan's trading partners.
• Four important agreements have so far been
finalized between the EU and Japan:
 Mutual Recognition Agreement (2002);
• In 2011, EU exports reached €49 billion,
whereas EU imports from Japan totaled €67.5
billion.
 Agreement on Cooperation on Anti-Competitive
Activities (2003);
• Main categories of goods and services traded
between the EU and Japan:
 Agreement on Cooperation and Mutual Administrative
Assistance (2008);
 Science and Technology Agreement (2009).
• In November 2012, the EU Council adopted a
negotiating mandate for a bilateral Framework
Agreement with Japan.
• A future successful deal could increase EU
exports to Japan by 32.7%, and Japanese
exports to the EU by 23.5%
Ministry of Economy, Energy and Tourism
 EU imports from Japan are dominated by
industrial goods like machinery & transport
equipment as well as chemicals.
 EU exports to Japan mainly include
machinery & transport equipment,
chemicals and agricultural products.
 In 2010, EU imports and exports of
commercial services from and to Japan
totaled €12.7 and €17.2 billion
respectively.
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
17
Travel & Tourism – important and growing industry
Facts and figures:
•
Revenue from international and domestic tourism forms 10.5 %
of GDP
•
In 2011, revenue from international tourism totalled 2 852.4
million euros
•
8 712 821 foreign visitors visited Bulgaria in 2011, of which 6
328 023 were tourists
•
4.6 % annual growth in international tourist arrivals in 2011
We are offering:
•
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 on 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
18
Bulgaria-Japan Tourism Exchange
• In 2005, 2006 and 2007, the annual number of Japanese
visitors to Bulgaria surpassed 10000 people.
• In 2008 and 2009, the number of tourists from Japan
declined to a certain degree, but since then it has been
rising.
• In 2011, 10236 Japanese citizens visited Bulgaria, 9990 of
which as tourists.
• From January to October 2012, 9992 Japanese tourists
visited Bulgaria (16.5 % increase on an annual basis).
• In Japan, Bulgaria is mainly known for the Bulgarian
yogurt, Bulgarian rose oil as well as Bulgarian sumo
wrestlers.
• Bulgaria, as a country with magnificent
nature and many cultural spots, can be very
attractive for Japanese tourists as an all-year
destination.
• We can attract more Japanese tourists
through combined tours (cultural+spa,
cultural + summer tourism, etc.)
Ministry of Economy, Energy and Tourism
19
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
20