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2 VINNYTSIA REGION KEY FACTS Vinnytsia 2 km Kyiv 212 km VINNYTSIA Warsaw 616 km Beijing Istanbul 6 663 km 883 km Chisinau Frankfurt am Main Paris Amsterdam 332 km 1430 km 1 887 km 1 702 km Przemysl Berlin 638 km Vienn Prague 1 330 km 1 055 km 1 142 km Lviv 363 km Odesa Rotterdam 430 km 1 950 km Warsaw Hamburg 806 km Varna Gdansk 1 580 km 952 km 1 083 km 26.513 thousand km2 1.546 million 4.39% of the territory of Ukraine people 52.1 thousand students of higher educational institutions 6 rayons 63 territorial communities 11.4 thousand vocational students ineВ (high) investment efficiency rating in 2019 706.0 thousand working age people 3 Transport and Logistics Ranked #1 Criss-crossing trade in Ukraine by routes – well-developed the Transitivity Ratio transportation network Kyiv Zhytomyr E95 Lviv E40 Ternopil E50 Khmelnytsky Vinnytsia Dnipro E583 E50 Mariupol Uzhhorod Mykolaiv E40 Odesa Railway connection Existing motorways E40 Dunkirk – Brussels – Dresden – Krakow – Kyiv – Volgograd E95 St. Petersburg – Gomel – Kyiv – Samsun European road routes: The biggest freight E50 Brest – Prague – Kosice – Vinnytsia – Makhachkala railway stations: Vinnytsia, Zhmerynka, E583 Roman – Balti – Vinnytsia – Zhytomyr Koziatyn, Vapniarka 4 Road density – 339 km per 1,000 km2 – is one of the highest in Ukraine The railway network of the region includes an operating route length of 1,124 km, connecting all the main industrial centers of the region with cities in Ukraine, Asia, and Europe Vinnytsia International Airport is located just 2 km from the city with a passenger turnover of 400 people per hour and existing regular international flights Vinnytsia Region has a favorable transport location, In the mid-term, it is planned to construct Gdansk- which provides additional opportunities for Odessa highway connecting two countries strengthening international connections. (Ukraine and Poland), two seas (the Baltic and Black) and two ports (Gdansk and Odesa). Vinnytsia already has a direct railway connection to Polish Przemysl, from which you can get to other This international highway will run directly through cities and regions in Poland, Germany, Slovakia, Vinnytsia, which in tandem with the international Czechia, etc. airport and passenger and freight railway stations will create new opportunities for regional The E50 (M12) and E583 (M21) motorways connect development. the region with Moldova (which shares borders with Vinnytsia Region, Romania, and Poland. 5 Strong agricultural sector with great potential for further growth With over 1.8 million hectares of agricultural land, including 1.7 million hectares of arable land, 48.0 thousand hectares of perennial plantings, 48.8 thousand hectares of hayfields, 183.9 thousand hectares of pastures. The vast majority is high quality black soil. The region contributes 12 % to the gross agricultural output of Ukraine. Ranked #1 in Ukraine for gross agricultural output gross agricultural output per person potato production sugar beet production milk production meat production number of poultry number of cows 6 Vinnytsia Region has one of the strongest agricultural sectors in the country, consisting of STRUCTURE OF GROSS 841 agricultural enterprises, 1,893 farms, 274.4 AGRICULTURAL PRODUCTION thousand individual family farms. There are 4 research stations in the region, such as the National Academy of Agricultural Sciences’ Institute of Feed Research and Agriculture of Podillia as well as the Vinnytsia National Agrarian University. The number of employed people in 31.1 % agriculture is 215.0 thousand people. Organic agriculture has been gradually developing in Vinnytsia Region: 4,308 hectares are organically managed, taking into account the transition period, and 2,467 hectares have organic status, plus 60 agricultural enterprises, including 7 farms, are 68.9 % producing organic products. In recent years, there is a growing tendency for regional agriculture to increase agricultural production and transform the sector into a profitable and technologically advanced business. In particular, large-scale projects are being crop livestock implemented in the region focusing on the production products development of modern infrastructure, including grain elevators, fruit and vegetable storage facilities, terminals, etc. 7 Developed and diversified industrial sector There are over 1,200 large, medium and small enterprises of various forms of ownership that produce various industrial products in the region. Almost 60,000 people are employed by industrial enterprises, operating in the region. The majority of the workforce is employed in the food industry (over 22,000 people) and energy sector (over 10,000 people). Food industry STRUCTURE OF INDUSTRIAL 62,1 PRODUCTION, % Textiles, Clothing and Footwear Energy 17,0 Production of construction materials 0,4 2,0 Mining industry 2,2 Other 6,9 2,2 Chemical and pharmaceutical Wood industry industry 3,7 3,5 Mechanical engineering and metalworking The food industry of Vinnytsia Region is the most promising and investment-attractive economic sector of the region. It accounts for a third of total foreign direct investment inflows in the region. Food industry products are exported to more than 100 countries around the world. Industrial production includes mechanical engineering enterprises, wood manufacturers, pharmaceutical companies, as well as clothing and textile manufacturing companies. 8 Aiming at introducing new technologies into production processes, improving the management efficiency, increasing production capacities, and creating new jobs, certain industrial companies of the region are modernizing existing and There are over 1,200 large, medium and small enterprises of various forms of ownership that produce various industrial products in the region. The current task for the region is industrial diversification to ensure intersectoral structural changes transitioning the economy to the next technological level, namely the production of innovative products with high added value and the development of a creative economy. For further diversification of the economy and attracting investments to Vinnytsia Region, necessary infrastructure is developed, innovative solutions are introduced to improve the business climate, and significant international activities are conducted. The 2018 Regional Doing Business Rankings recognize Vinnytsia Region as the best region in Ukraine 9 International trade In 2020, foreign trade operations were conducted with partners from over 150 countries. 1,429.3 1,455.5 1480 1,217.8 631.6 563 540 EXPORTS 407 AND IMPORTS, MLN USD 2017 2018 20192020 Exports Imports The balance of foreign trade remains consistently positive and amounts to 823.9 million USD IMPORT STRUCTURE, % China 10.4 Poland 9.7 India Netherlands 7.3 49.8 Romania 4.9 Turkey 4.7 Belarus 4.7 4.1 4.4 Egypt 10 Other countries 10 The international trade structure is diversified by countries and product groups Fats and oils EXPORT STRUCTURE OF GOODS Products of plant origin cereal crops, sunflower seeds, flour Ready-made food products oil cake, alcohol, sugar Wood and wood products Products of animal origin dairy products, eggs, honey, meat Machinery, equipment, mechanisms Other products Chemicals Mineral products kaolin Textile products 1.7% 1.8% 1.9% 3.4% 5.5% TOP 5 EXPORTS 5.5% 7.9% 922.82 million USD 14.3% 28.1% Sunflower oil 29.9% Cereal crops IMPORT STRUCTURE, % China Oil seeds 14.8 Poland Ready-made food products Germany 33.3 dairy products, eggs, honey, meat 13.3 USA Romania Dairy products Serbia 3.7 12.5 Turkey 4.5 Belarus 4.7 6.2 7 Other countries 11 Investment Activities The favorable investment climate is highly appreciated by partners from 54 countries all over the world which have invested in establishing almost 400 successful companies in the region with high standards of production quality and commitments to social responsibility. As of January 1, 2020, total foreign direct investments made in the regional economy total to 236.7 million USD. The vast majority (83.7% of total share capital) was attracted from EU countries – 198.2 million USD. STRUCTURE OF DIRECT INVESTMENTS Top 5 Investing IN THE REGION BY TYPES OF Countries ECONOMIC ACTIVITIES Poland woodworking and printing industry Austria 23.5% 29.6% food industry Cyprus agriculture, forestry and fish industry France 3.9% chemical industry Germany 6.5% real estate 8.0% transactions 28.5% other activities CAPITAL INVESTMENTS 4.7% 2019 662.83 mln USD 9.6% 22.0% 14.4% 37.1% 10.8% 1.4% 2018 3.7% 635.65 mln USD 8.9% 24.3% 9.6% 41.3% 11.2% 1.0% 2017 4.3% 11.1% 15.9% 9.1% 44.0% 14.5% 1.1% 416.86 mln USD residential buildings engineering structures vehicles non-residential buildings machinery, equipment and other tangible assets inventory investments in intangible assets 12 INVESTMENT PROJECTS IN 2019-2020 alternative energy 51 projects 116.32 mln USD 55,9 230 mlnUSD new jobs 736 new jobs 26 5,57 projects 47,1 mlnUSD mln USD 1 17 200 project projects 171 new jobs new jobs mechanical food and processing engineering 5 2 industry projects projects 105 30 new jobs new jobs 6,5 1,27 mlnUSD mln USD other mining industry BIGGEST INVESTMENT PROJECTS IMPLEMENTED IN 2019-2020 State Enterprise Separate Division Biogas Ladyzhyn Electric Systems Vinnytsia Poultry Farm, LLC Increased production capacity by expanding to Constructed Phase 1 of a biogas production 2000 employees complex 10 million EUR 20 million EUR NESS PV, LLC Barlinek Invest, LLC Constructed Phase 1 of a new solar panel production plant Increased capacity for parquet board
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