Foreign investment to the Czech Republic more than doubled

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Czech RepublicYour Gateway to Europe

• U.S. Commercial Service
• Erin Butler-Mueller
• Commercial Attache

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Czech Republic Statistics
2005 Population 10.24 mil Labor
Force 5.27 mil Unemployment 9.1 Inflation
Rate 1.9 Average Monthly Manufacturing Wage
550 GDP growth 6 1 USD 22 CZK
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Czech Trading Trends

• Exports 78.37 billion in 2005
• transport equipment 15.8
• machinery 12.5
• metallurgy-related products 13.3
• communication equipment 6.3
• Imports 76.59 billion in 2005
• machinery and transport equipment 21.1
• raw materials and fuels 10.1
• chemicals 10.4
• metallurgy products 7.7
• The U.S. is the Czech Republics 11th largest
  source of imports.

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An Industrial Economy

• Foreign investment to the Czech Republic more
  than doubled from 5.6 billion in 2004 to 11.4
  billion in 2005.
• GDP By Sector
• Industry 39.3
• Services 57.3
• Agriculture 3.4

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FDI Confidence Index 2005

• China
• U.S.A.
• India
• U.K.
• Germany
• France
• Australia
• Hong Kong
• Italy
• Japan
• Russia
• Poland
• Spain
• Czech Republic

• Malaysia
• Canada
• Brazil
• Singapore
• Hungary
• Thailand
• South Korea
• Mexico
• Indonesia
• Netherlands
• Taiwan
• Source AT Kearney

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Major U.S. Investors

The U.S. is the 5th largest investor in the Czech
Republic with 3 billion invested.
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A Wired Society

• Households with PC and Internet Access
• in Central Europe by of Population

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Emphasis on English
Multilingual Czech Speakers by of Population
Population Age Groups
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Best Sectors for U.S. Exporters

• Automotive Parts Equipment
• lighting equipment, filters, bumpers, shock
  absorbers, electronic equipment parts, in-car
  entertainment, security equipment, car care
  products
• 2. Electronics Sector
• Electronic components, heavy current technology,
  computer technologies

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Best Sectors for U.S. Exporters

• 3. Medical Equipment
• Sterilizing equipment, dental equipment, bone
  implants, infusion and transfusion sets,
  catheters, cobalt irradiators, computer processed
  visual systems, medicine infusion pumps, X-ray
  and mammography systems
• 4. Pollution Control Equipment
• Biodegradable waste treatment, packaging
  packaging waste recycling, waste water treatment
  technologies, brownfield remediation

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Best Sectors for U.S. Exporters

• 5. Electrical Power Systems
•   Equipment for the retrofit of coal plants,
  including boilers and pumps control systems and
  software services for distribution networks
  equipment/services for nuclear reactors
  renewable energy equipment control systems,
  pipeline reconstruction, underground storage for
  natural gas
• 6. Telecommunications Equipment
• Electronic components, network equipment,
  wireless equipment, data service equipment, voice
  service equipment, video conferencing equipment

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Challenges

• Stiff competition from Europe
• Purchasing power growing but limited
• Relationship-based society
• Decision making can be slow
• Judicial system slow but improving
• Government decision-making

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Entering the Market

• First Step?
• Find a partner or distributor
• Take your time
• Think regionally, but work market by market

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U.S. Commercial Service Prague

• The U.S. Commercial Service in Prague is part of
  the
• U.S. Department of Commerce, an agency of the
  United
• States government.

• Our mission
• To promote the export of goods services from
  the United States, particularly by small- and
  medium-sized businesses
• To represent U.S. business interests
  internationally
• To help U.S. businesses find qualified
  international partners

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U.S. Commercial Service Prague

• How can we help you?
• Identify opportunities
• Customized market research
• Find partners and distributors
• Gold Key Service
• Due diligence
• Follow up
• Trouble shooting

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Commercial Service Prague Staff
Greg OConnor Commercial Counselor Erin
Butler-Mueller Commercial Attaché Hana
Obrusnikova - engineering services, construction,
aerospace, defense Zdenek Svoboda - industrial
parts and services, auto parts,
microelectronics Luda Taylor- telecommunications
equipment/services, e-commerce/e-government Ivo
Hofman - sport equipment, security
equipment/services, IT Veronika Novakova -
environmental technologies, medical
equipment Irena Michlickova - consumer goods,
film production, food processing
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Contact us for more info

• Commercial Attaché Ms. Erin Butler-Mueller
• Erin.Butler-Mueller_at_mail.doc.gov
• E-mail prague.office.box_at_mail.doc.gov
• www.buyusa.gov/Czech Republic