INVESTMENT OPPORTUNITIES IN VOJVODINA. VOJVODINA INVESTMENT PROMOTION VIP Branislav Bugarski, VIP CEO

Transcription

1 INVESTMENT OPPORTUNITIES IN VOJVODINA VOJVODINA INVESTMENT PROMOTION VIP Branislav Bugarski, VIP CEO

2 DICTANCES FROM MAJOR EUROPEAN CITIES

3 SUCCESS STORIES

4 MARKET ADVANTAGES CONSUMER MARKETS: CEFTA FTA million EFTA FTA 12.6 million RUSSIA FTA 140 million TURKEY FTA 76.8 million BELARUS FTA 9.6 million EU preferential status USA preferential status

5 DOUBLE TAXATION TREATIES ES Albania Belgium Belarus B&H Bulgaria China Cyprus Croatia Czech Republic Denmark Finland France Germany Ghana Hungary India Italy Kuwait Latvia Malaysia Moldova Macedonia Netherlands Norway Poland Romania Russia Sri Lanka South Korea Sweden Switzerland Slovak Republic Slovenia Turkey Egypt Ukraine UK

6 OVERVIEW OF TAX RATES SALARY TAX IN CEE COUNTRIES (%) Annual Income Tax Social Insurance Contributions 10/15% (for annual income below or above 8 average annual salaries) Pension and disability insurance 11% Health insurance 6.15% Unemployment insurance 0.75%

7 TAX RATES BENCHMARK VAT EU + CEE (%) CORPORATE PROFIT TAX (%)

8 QUALITY WORKFORCE Average salary in Vojvodina, July 2011 NET Salary (EUR) Personal Income Tax Contributions (employee) % 378, , ,64 GROSS Salary 528,85 Contributions (employer) ,64 TOTAL COST 623,49

9 EMPLOYMENT SUBVENTIONS GOVERNMENT OF THE REPUBLIC OF SERBIA GOVERNMENT OF THE AP VOJVODINA 2,000-10,000 per employee (over 50 new employees) 1,300 per every new job created Subventions for traineeship programs NATIONAL EMPLOYMENT SERVICE 900 for co-financing retraining programs 1,000 4,000 per employee (over 50 new employees)

10 SUBSIDIZED INVESTMENT LOAN DEVELOPMENT FUND OF THE REPUBLIC OF SERBIA INVESTMENT LOANS Municipalities: Žitište, Plandište i Nova Crnja Up to 8 million 3 years grace period 2.5 % interest rate VOJVODINA DEVELOPMENT FUND LONGTERM & SHORT TERM LOANS Longterm loans -3 years(12 moths grace period) 2.8% interest rate Short term loans up to 12 months 4.2% interest rate

11 TAX INCENTIVES 10-year corporate profit tax holiday for investment over app. 7.5 million and 100 new employees Corporate profit tax credits up to 80% of the fixed assets investment Carrying forward of losses over a period up to 5 years Accelerated depreciation of fixed assets 5-year corporate profit tax holiday for concessions Salary tax exemptions for employees under 30 and over 45 years Annual income tax deductions up to 50% of the taxable income Social insurance contributions exemptions for employees under 30and over 45 years Customs-free imports of equipment based on foreign investment Salary tax base deduction in the fixed amount of 62 a month

12 INVESTMENT OPPORTUNITIES METAL PROCESSING AUTOMOTIVE COMPONENTS INDUSTRY ELECTRONIC & ICT PHARMACEUTICAL INDUSTRY AGRIBUSINESS

13 METAL PROCESSING Category Production Engineers Job description Total Costs Gross Net Blue Collar production Blue Collar metal industry Machine assembler Machine technician Electrical technician CNC/PLC operator CNC/PLC programmer Electrical engineer Machine engineer Maintenance engineer

14 AUTOMOTIVE SUPPLY INDUSTRY Just in-time and just just-in-sequence possibilities Average total cost: 405(Net 250) Number of employees: 8,548

15 ELECTRONICS & ICT Intensive development of EMS sector 1,000 students in Serbia graduate in Electrical Engineering and Computer Science = 7% of total university graduates 68% of the market value comprises equipment, 20% are services, and the remaining 12% goes to packet software ICT Cluster - 28 companies in Vojvodina which employ 1,500 engineers, and in 2010 havehadover EUR 44 million in annual turnover Trim your operating costs, increase work productivity, maintain quality

16 PHARMACEUTICAL INDUSTRY Rising market volume trend with intensive R&D investments Approx. 10 % of total FDI inflow million, 2,381 employees Estimated 10% annual production growth rate Investment opportunity: Privatization of Jugoremedija Average gross salary January 2010: 630 Number of employees average 2009: Cost effective healthy investments committed to high quality standards

17 AGRIBUSINESS Arable areas covering 1.78 million hectares -89% of the total land The region is rich in water -rivers the Danube, the Sava and the Tisa flow through Vojvodina 40% of total industrial production and 30% of total export TOP EXPORT COUNTRIES Romania, Hungary, Italy, Slovenia, Bulgaria, Greece, Germany, Austria, Belgium and Holland

18 INVESTMENT OPPORTUNITIES IES VRSACKA PIVARA BREWERY AGROZIV MEAT INDUSTRY VRSACKI VINOGRADI VINEYARD JUGOREMEDIJA PHARMACEUTICAL INDUSTRY

19 AGROZIV Leading chicken meat producer in Serbia From animal feed to processed chicken products Feed production 1,100 t per week Slaughter capacity 180,000 chicken a week

20 VRSACKI VINOGRADI Largest vineyard in the region 1,300 ha of vineyards Mainly white grape varieties Winery s capacity 10,000 l/h Storage capacity 321,000 hl Yield in 2009 was 7,500 t of grapes

21 VRSACKA PIVARA One of the oldest breweries in the region 91 % state owened 340 employees Products: ligth and dark beer and non-alcoholic bevereges Annual production: beer -10,000 l non-alcoholic beverages 2,500 l Production capacity: 320,000 hl/year

22 JUGOREMEDIJA Ownership: 48% State, 52% private stake holders 429 employees Sale structure in2008 on domestic market was 87 % and foreign market 13% Holds 7% of Serbian market Exporter to Russian market via FTA The Company owns quality assurance certificate ISO 9001,, and GMP It has total land surface of 72,692 m2(production facilities on 9,250 m2, administration buildings 1,921 m2, warehouses 5,153 m2 July New plant for production of solid and semi-solid solid medicines (pills, film pills, coating pills, creams and suppositories), quality control is complied with both domestic and European pharmaceutical regulations. The plant has established and certified quality system.

23 Vojvodina Investment Promotion -VIP Location Marketing Tailor made solutions for potential and existing investors After Care Policy advocacy Development of business incubators

24 Thank you for your attention! Vojvodina Investment Promotion VIP Narodnog fronta 23d, Novi Sad, Serbia Tel: Fax: Web: