Transcript SLOVENIA

Business environment &
FDI opportunities in Slovenia
4Qs4U
Four Qs For You
Goran Križ
Embassy of the Republic of
Slovenia
SLOVENIA:
dynamic EU member
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Area: 20,273 sq. km
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Capital: Ljubljana
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Population of 2 million
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EU member state - May 2004
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Euro area - January 2007
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Schengen Space - December 2007
•
EU presidency - first half of 2008
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Invited to Join the OECD - 2010
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GDP per capita (2009) = 17,602 EUR
86% EU-27
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Average GDP annual growth (2010)
+0,9 %
Slovenia
EU countries
Non-EU countries
SLOVENIA – macroeconomic
indicators 2010
GDP – current prices
EUR 35.9 billion
GDP – real growth rate
+ 0,9 %
GDP per capita
EUR 17,602
GDP per capita, PPS*
EUR 23,100
*Purchasing Power Standard
… 86 % EU-27
EXPORTS of goods and services
real growth rate
+ 13.7%
IMPORTS of goods and services
real growth rate
+ 14.6%
INFLATION, annual average
1.4%
Unemployment rate (by ILO)
(registered: 10.6%)
5.7%
Source: Institute of macroeconomic analysis and development, 2010
Export driven economy
Sectors, 2010
_____________
Transport
equipment; 20%
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High value-added products and services exported
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70% of exports destined for EU
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EUR 18.2 bn exports of goods and services in
2010; 60% of GDP
Food and
beverages; 3%
Crude materials
and fuels; 3%
Products for
investments;
20%
Manufactured
goods; 34%
Geographic distribution, 2010
______________________
Russian
Other countries federation;
of Former
USA; 1.4%
4.0%
Yugoslavia;
EFTA; 1.1%
8.7%
Other; 7.2%
Croatia; 8.6%
Consumer goods;
20%
Source: Institute of macroeconomic analysis and development, 2010
EU; 69.0%;
of which
DE 18.9%,
IT 12.1%,
AU 7.9%,
FR 6.5%
SLOVENIA – The right mix of
Qualities
4Qs4U
(Four Qs For
You)
Quality of life
• High standard
of living
• Cultural and
geographical diversity
• At the intersection of
Roman, German and
Slavic culture
• Nestled between Alps
and Adriatic Sea
• Mixture of Alpine,
continental and
Mediterranean climates
• Huge continuous forest
ecosystem – 3rd in
Europe after Finland and
Sweden
Quality of workforce
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Technologically-minded (long industrial tradition), innovative spirit
Highly educated: 16% university degree, 62% secondary school
Excellent IT & foreign language skills (English, German, Italian, Serbo-Croatian …)
Not cheap but
cost-effective
60
50
Minimum gross wage
• € 597.43
40
30
20
10
0
France
Austria
Italy
Germany Slovenia
Czech
Rep.
productivity (GDP per employee per hour, US$)
compensation (per employee per hour, US$)
Source: IMD World Competitiveness Yearbook 2010
Slovakia
Est. monthly gross
labour costs:
• low skilled € 700
• skilled € 1,000
• engineer € 1,700
• computer engineer:
€ 2,200
Full-time working hours
may not exceed 40 hours a
week
Quality link to regional
markets
• Strong export orientation
• Well established links with neighbouring countries and countries of
former Yugoslavia
• Hub for foreign companies to serve the EU and Central European
markets
• Advantages:
 Economic and political stability
 Knowledge of circumstances, language,
culture, people
 Geographical location with a strategic edge
• Slovenia is an important investor in the
SE Europe
Quality infrastructure
• Well-developed general
infrastructure at the
intersection of 5th and 10th
European transportation
corridor
Welldeveloped
ICT
infrastructure
• Port of Koper
– ideal as a logistics and distribution centre
– the fastest developing port in the Adriatic basin
– the shortest sea connection between Central Europe and Asia
Taxes
Corporate income tax
20%
Tax relief
- 20-40% of the amount invested in R&D
- tax relief on employment of certain workers
- up to 30% of the amount invested in equipment and
intangible long-term assets
Profit repatriation tax
15% on dividends paid abroad
Capital gains tax
0 – 20% (depending on a holding period)
VAT (Value added tax)
20% - standard rate; 8.5% - reduced rate
Property tax
0%
Immovable Property Transfer Tax
2%
Social security contributions
16.1% paid by employer; 22.1% paid by employee
Personal income taxes
progressive tax rates: 16%, 27% and 41%
FDI in Slovenia
60
50
40
Hungarian
FDI in
Slovenia
Slovenian
FDI in
Hungary
30
20
10
0
Inward inflow in 2009
• 52.8 mio €
Inward inflow in 2009
• 25.4 mio €
Source: Bank of Slovenia, 2010
2005 2006 2007 2008 2009
FDI stock in Slovenia (from Hungary)
50.8 mio € FDI in Hungary (from Slovenia)
25.4 mio €
Bilateral relations
Slovenia - Hungary
Slovenian export and import from Hungary
(in EUR million)
1600
1400
1200
1000
Export
800
Import
Total
600
400
200
0
2005
2006
2007
2008
2009
Source: Statistical Office of the Republic of Slovenia, 2009
Bilateral relations
Slovenia - Hungary
EXPORT
• electric equipments,
machines (26%)
• chemical goods
(17%)
• vehicles (14%)
• food, drinks, tobacco
(11%)
• base metals, metal
goods (8%)
• mineral goods (4%)
IMPORT
• electric equipments,
machines (23%)
• mineral goods (15%)
• chemical goods (13%)
• vehicles (10%)
• food, drinks, tobacco
(8%)
• base metals, metal
goods (7%)
Source: Statistical Office of the Republic of Slovenia, 2010
Investment opportunities
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Energy and renewable energy
Construction and engineering
Telecommunications & ICT
Chemical & Pharmaceutical
Shared service centers
Regional Headquarter (HQ)
Research & Development
Logistics & Distribution
New materials and Nanotechnology
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Textile industry
Automotive & Components
Machining & Metalworking
Industry
Electronics & Electrical
ICT
Finance
Environmental technologies
Tourism
Business and industrial
parks in Slovenia
OKO
NOORDUNG
OREH
GREGOR
TEHNOPOLIS
IN PRIME
PERSPEKTIVA
PHOENIX
JV SLOVENIJA
Resolution projects
approx. 30 business and industrial zones across Slovenia
(Komenda business zone, Brnik business and logistics zone, Vrbina business zone, Drnovo, Komenda, šenčur etc.)
Financial incentives
Foreign direct investment (FDI) grant scheme for 2010:
VALUE OF
INVESTMENT
NUMBER OF NEW
JOBS
€ 1 million
25
Strategic services
€ 0.5 million
10
R&D
€ 0.5 million
5
ACTIVITY
Manufacturing projects
Amount of incentives
• up to 30% of the total eligible investment costs
• amount of the incentive may be increased by 10 percentage points for
medium-sized companies, and 20 percentage points for small
companies
• Government action plan for Mura region
Thank you for your attention!
Embassy of the Republic of Slovenia
www.budapest.embassy.si