Serbian Investment and Export Promotion Agency SIEPA Prepared by: Zlatan Miloevic 9th of September,

1
SERBIA Your Partner for Success
Presentation by Milivoje Mandic Head of FDI
Department SIEPA
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Why invest in Serbia?

• Strategic position
• Partnership culture
• Low taxes
• Free Trade Agreements
• Market of 10 million people (8 Serbia, 2 Kosovo)
• Intellectual capital and skilled labor
• Linguistic skills

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Strategic Position
Intersection of Pan European Corridors No.10
and No.7 Gateway to Middle East and South- East
Europe Proximity of the Adriatic sea
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Trade Liberalization
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Strong commitment to FDI

• Stabilized macroeconomic situation
• Legal Reform
• More than 1,000 foreign companies operating in
  Serbia
• More than 2.1 billion in revenues through
  privatization

FDI in millions
6
Decreasing Inflation
Annual Inflation in
Source National Bank of Serbia
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Sound Financial Sectorto Support Your Business!

• HVB
• Raiffeissen Bank
• Societe Generale
• National Bank of Greece
• Pro Credit Bank
• Hypo-Alpe-Adria Bank
• Folksbank
• Steps taken
• Paris club of creditors wrote of 2/3 of Serbias
  debt
• London club negotiations soon to be finished
• 23 insolvent banks closed
• 9 socially owned banks to be privatized in 2004
• Securities market active since 1989

Banks with foreign capital
8
Corporate Profit Tax
in
Source SIEPA
9
Electricity Cost for Industrial Consumers
/ KWH
Source Electric Power Industry of Serbia
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Business Environment Scores and Ranks
Source Economist Intelligence Unit
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Incentives for Your Business

• Investment
• Incentives
• Tax Incentives

• Import of goods and equipment on the basis on
  foreign investment is free
• Accelerated depreciation
• Investment in fixed assets
• New employment
• Tax holidays
• Carrying forward of losses for 10 years
• Tax exemptions

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Skilled Workforce

• Long history of cooperation with foreign
  companies
• High availability of skilled workforce
• Diversified sector experience

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Good Command of Foreign Languages
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Textile Industry

• Long tradition
• Currently mainly import dependent on yarns and
  fabrics
• Export mainly to EU countries (75)
• CMT
• High domestic demand
• Well developed retail network

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Compelling Cost Savings(Textile Industry)
In Euros
In
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Foreign Trade(Textile Industry)
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Sub sectors(Textile Industry)
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Timber Furniture

• Excellent raw base (27 of the Serbian territory)
• Successful history - major partners US, Russia
  and EU
• Highly skilled workforce
• Active wood and furniture cluster
• Average gross salary 136 EUR (Sept. 2003)

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Foreign Trade (Timber Furniture )
MOST SIGNIFICANT CATEGORIES IN TOTAL FURNITURE
EXPORT IN 2002
50.0
Leisure furniture
Dining room furniture
Kitchen furniture
Chairs (bent wood)
11.0
Bedroom furniture
26.0
Other wooden furniture
3.0
7.0
3.0
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Trade with Italy(Timber Furniture )
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Agribusiness

• Total area of agricultural land exceeds 5 million
  ha with 85 of land ownership under private
  farms
• Fertile soils, restricted use of chemical
  fertilisers and perfect climatic conditions
• Favourable brand image
• Average gross salary 270 EUR (Sept. 2003)

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Foreign Trade(Agribusiness)
Top 5 Exporting Products in 2001
Serbia is the regional and global leading
producer of raspberries.
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SIEPA

• Established in February 2001 by the Governments
  Decree
• Mission To attract, facilitate and support FDI
  and promote Serbian exports
• SIEPA has three departments
• Marketing and Research
• FDI / Investor Services
• Export Promotion

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Foreign Direct Investment
Support
Ministry for International Economic Relations
Italian Embassy
ICE
SIEPA
Foreign Investors Council (Investors association)
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Thank You!

• Serbian Investment and Export Promotion Agency
• 23 Terazije St., Belgrade
• Serbia and Montenegro
• Tel [phone]
• Fax [phone]
• www.siepa.sr.gov.yu
• invest_at_siepa.sr.gov.yu