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Khmelnytskyi Investment Profile Khmelnytskyi Investment Profile 2019 Table of Contents About Khmelnytskyi Economics and Key Sectors Business Environment Why Khmelnytskyi? Infrastructure Trade and Services Doing Business Summary Economic Data Garment Industry Industrial Park Key Facts Railway Transport Food Processing Local Taxes and Fees Geopolitical Profile Road Transport Construction Trading and Office of the City Centers Municipal Public Industries and Logistics Transport Event and Exhibition BPO / SSC / IT sector Facilities Investments Success Stories Standard of Living Labour Market Other Relevant in Khmelnytskyi and Education Information Quality of Life Labour Market Interesting Facts Municipal Services Education about Khmelnytskyi Annual Key Events Transportation Universities in Khmelnytskyi Cost of Living Achievements Municipal Institutions 2 3 About Khmelnytskyi Photo: Oleksandr Savenko Why Khmelnytskyi? Strategic Qualified The most The largest Vivid geographical labour force affordable trading center cultural location housing in Western life market Ukraine 6 7 Summary Key Facts Transit Routs Area Khmelnytskyi is a marketplace for innovation and opportunity. The city is one of the best Time zone UTC +2 Gdansk places for doing business in Ukraine, which has Climate Temperate continental dynamic development, progressive views and Accessibility By train — from Poland, Slovakia, the safest city foresight of its residents. According to Focus Kyiv Romania, Bulgaria and Russia. in Ukraine Rava-Ruska magazine Khmelnytskyi was recognized as one Lviv By bus — from more than 100 Pshemysl of the most comfortable cities in Ukraine – it got European cities. second place (after Kyiv) and was ranked first in the Transparency and financial health of cities Population (2019) 273,700 Kropyvnytskyi Dnipro Chop and regions in Ukraine survey conducted by the The average monthly gross ₴ 8,513 / € 288 Chernivtsi International Center for Policy Studies in 2019. Donetsk wages and salaries (2019) the largest trading center Vadul-Siret Average gross monthly The Parliamentary Assembly of the Council of € 400 in Western Ukraine salary in industry Odesa Europe (PACE) appreciates the efforts of the city of Khmelnytskyi toward European integra- National currency Hryvnya (UAH / ₴) tion, economic development, energy manage- Average exchange rate of the UAH 29.55 per EUR 1 ment and international cooperation, and in hryvnya to the euro recognition it recently awarded the city with the city is driven by small and Flag of Honour (2017) and the Plaque of Number of enterprises 28,648 Honour (2019). (2019) medium enterprises The largest sectors of Trade and Services As an active member of the Eastern Partnership the economy based Engineering Industry Ukrainian Routes European Routes Initiative of the European Union's “Mayors for on the number of Production of chemicals and H02 H03 E40 E50 E85 Economic Growth,” the city is a main center of enterprises chemical products a junction of impor- Lviv Zhytomyr Dunkirk Brest Klaipeda local economic growth in the region. The city Production of building materials Brussels Paris Kaunas tant transport routes Ternopil Chernivtsi promotes long-running businesses and Wood products, paper Dresden Nuremberg Vilnius comprehensively supports new business devel- production and printing activities Legnica Prague Lida opment. Trade and services, clothing produc- Textile production, clothing, Krakow Uzhgorod Slonim tion, food industry, construction, logistics, and Lviv Ternopil Kobrin leather goods and other materials the IT sector are in rapid development. Kyiv Khmelnytskyi Dubno Food processing industry Kharkiv Kropyvnytskyi Ternopil A reliable business ecosystem, skilled work- Capital investments ₴ 3,100 mln / € 105 mln efficient distances Dnipro Chernivtsi Donetsk Siret force, low-cost operating space, and excellent Accumulated foreign direct $ 27.4 mln it takes 20 minutes to get from one side of the city to the other Suceava connectivity with other cities provide investors investment in share capital Bucharest with a unique opportunity to tap into the city's of companies (2019) Kastanies potential. Alexandroupolis Rating of Investment invA+ attractiveness of Khmelnytskyi city the most affordable in 2020 assigned housing market at the level of among regional centers of Western and Central Ukraine Information about khm.gov.ua Khmelnytskyi invest.khm.gov.ua 8 9 Travel Time Geopolitical Profile Border Crossings Distance Rail Car Rava-Ruska 302 km 4 h 34 min of the City Chop 466 km 10 h 57 min 7 h 21 min Vadul-Siret 216 km 10 h 56 min 3 h 43 min International Airports Vinnytsia 134 km 1 h 48 min 2 h 14 min Vinnytsia International Airport, VIN Lviv 255 km 3 h 28 min 4 h Khmelnytskyi Lviv Danylo Halytskyi International Airport, LWO Kyiv 357 km 4 h 16 min 5 h Boryspil International Airport, KBP Igor Sikorsky Kyiv International Airport (Zhuliany), IEV Odessa 561 km 6 h 29 min 7 h 41 min Odessa International Airport, ODS Cities in Europe Warsaw 629 km 9 h 8 min Khmelnytskyi is situated in Western Ukraine within the Chernivtsi. Khmelnytskyi is part of the Baltic - Black Sea Bratislava 938 km 11 h 35 min Podillia Upland on the Southern Buh River at the transport corridor "Go Highway" - Odessa - Gdansk in Kyiv, the capital confluence with the Ploska River. Khmelnytskyi is a building of which Ukraine is actively involved. and the largest city Budapest 771 km 10 h 18 min significant historical and modern economic and cultural In 2017 Khmelnytskyi became an associate member of in Ukraine, is only center of the Podilla region. The city is the administrative the Silk Road Cities’ Alliance. Minsk 671 km 9 h 11 min 4 hours away from center of Khmelnytskyi Oblast (region) and Khmel- The access to the central and southern regions of Khmelnytskyi. Vilnius 826 km 11 h 16 min nytskyi Raion (district). The significant advantages of the Ukraine is convenient due to consistent improvement of city are its historical location at the crossroads of trade transport infrastructure, road and railway junctions. Kyiv Varna 899 km 17 h 46 min 16 h 16 min Warsaw, routes and geographical proximity to the eastern border is the capital and largest city of Ukraine and is four hours Istanbul, Helsinki, Berlin 1173 km 12 h 42 min of the European Union. by car from Khmelnytskyi. Warsaw, Istanbul, Helsinki, Prague, Berlin, The city is located at a junction of important transport Prague, Berlin, and Budapest can be reached in less than Vienna 1039 km 11 h 35 min Budapest and routes from Western Europe leading to Central Asia and a day by car. One of the largest Ukrainian clothing Bucharest 683 km 21 h 56 min 10 h 28 min from the Baltic states, towards the Black Sea and Turkey. markets is also in Khmelnytskyi. This market is well known Bucharest are These routes include: E50 (Brest-Makhachkala) and throughout Ukraine as well as in Poland, Belarus, within 24 hours via Przemyśl 343 km 7 h 11 min 5 h 13 min national value H03 (Zhytomyr-Chernivtsi). The city has Moldova and other neighbors countries for its large road transport. Kosice 563 km 15 h 32 min 8 h 44 min access to the international routes E40 (Dunkirk-Volgo- territory and low prices. Urban markets are gradually grad) through Lviv, Kiev and Kharkiv and E85 turning into convenient and modern shopping and (Klaipeda-Alexandroupolis) through Dubno, Ternopil, service complexes. 10 11 Economics and Infrastructure Photo: Mykhailo Stopenchuk Economic Data Key Economic Data 2019 >273,700 Population density 2.917 people/km 2 inhabitants Population 273,700 Volume of sales (products ₴ 14.87 billion / and services) € 503.2 mln >28,600 Retail turnover ₴ 7.07 billion / € 239.3 mln businesses registered Volume of construction ₴ 1.9 billion / € 64.3 mln in the city work completed GDP in Khmelnytskyi ₴ 75.7 mln / € 2.56 mln region (oblast) The population of the city of Khmelnytskyi GDP per capita in Khmelny- ₴ 59,600 / € 2,000 in comparison with other European cities, thousand people tskyi region (oblast) Strasbourg 275 Number of business entities Consumer price index 104.4 Khmelnytskyi 273.3 (for the oblast) Wiesbaden 272 474 107 22,761 5,306 Number of the registered 28,648 Chemnitz 247 small medium individual existing business entities Aachen 265 enterprises enterprises entrepreneurs legal entities Average gross ₴ 8,513 / € 288 Cosice 237 monthly salary Magdeburg 230 Average gross monthly € 400 Lille 228 salary in industry Erfurt 203 Rzeszow 158.4 ₴ 652.9 million / € 22.1 million ₴ 209.6 million / € 7.1 million 49.4% Potsdam 145.3 revenues to the budgets of all revenues to the budgets of all revenues to the budgets of all Salzburg 150 levels from small enterprises levels from medium enterprises levels from small and medium enterprises from the total tax revenues of the city budget Age structure of the population of Khmelnitskyi <14 years 14–35 years 35–64 years >65 years 16% 31% 41% 12% 14 15 The share of the City in the economy Railway Transport of the region (2019), % Exports of goods / services, USD, mln Industrial products sales 34.3 2016 71,1 Volume of capital investments 32.6 Some changes were made to the 2017 101,7 48 timetable during the year, but they did Exports of goods / services 19 / 26 2018 127,7 railway routes not result in any significant changes Import of goods / services 52.5 / 22.5 2019 125.1 regarding the number of trains and lines served under a contract within the Retail sales 56.5 operator. Exports (January-September 2019, mln USD) products of plant origin 20.3 Lviv – Khmelnytskyi – Novooleksiyivka textile materials and textile products
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