Transcript Investment environment

Foreign investments in Central
and Eastern Europe (CEE)
Theis Klauberg, bnt attorneys-at-law
Investment environment – Economic conditions
• Transition process of CEE countries completed
• CEE countries have overcome economic crises
• Emerging markets with ready excess to western European
markets
• Steady GDP growth
• Skilled labour force
• Comparatively low labour costs
• Good transport infrastructure
• Investment incentives (SEZ, tax exemption etc.)
• Business friendly environment
Source: eurostat
Investment environment: Legal conditions
• Bilateral investment agreements between China and many
CEE countries
• Modern legislation framework (often influenced by EU
legislation/Western European legislation e.g. Baltic States)
• High level of legal certainty, rule of law, predictability
• Business friendly legal environment (e.g. little bureaucracy
when setting up a company / acquiring shares)
• Anti corruption legislation
• No political risks
Poland: Acquisition of machinery division
• Investor: Chinese company LiuGong Machinery Limited
• In 2012 LiuGong acquired the construction machinery
division of Polish company Huta Stalowa Wola (HSW)
and its distribution subsidiary Dressta
• Investment volume approx. US-$ 100 million
• Objective of investment is transfer of technology and
better access to European markets
Hungary: Construction of logistics center
• Investor: Huawei Technologies (Shenzhen/Guangdong)
• Huawei is currently the largest Chinese investor in Europe
with 7000 employees around Europe
• In 2012 Huawei signed an agreement with the Hungarian
government to set up a new logistics center in Hungary
• Investment volume US-$ 1.5 billions
Czech Republic: Production of meat products
• In 2006 Chinese Shanghai Maling Aquarius entered into a
cooperation with Gastro Sunwick Ltd. for the construction of
a factory in the Czech Republic
• Volume of investment: approx. US-$ 23 million
• In 2011 the company has 150-200 employees and produced
3-4 thousand tons of meat in 2010
Latvia:
Furniture production
• Aim: Establishment of furniture production in Latvia
• Investor: Chinese company based in Huzhou/China
• 300 Latvian employees / app. 5 Chinese specialists
• Locational advantage:
• Resources (wood) are locally available
• Part of the European Common Market
• Special Economic Zone: tax exemptions
Legal Services Provided
Investors needed legal advice particularly in the following fields
of law:
– corporate law
– labour law
– law of contracts
– commercial law
– real estate
– tax law
Summary
• CEE is an excellent region for foreign investments (cost
structure, qualified labour force, geographical location)
• CEE countries are open to and are looking for foreign
investments
• CEE countries have significantly improved their investment
environment (infrastructure, SEZs, curbing corruption)
• CEE countries provide a stable legal and political
environment