Plovdiv Investment & Technology Destination 2019 Investment & Technology Destination Plovdiv
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Doing Business Labor Supply Education & in Bulgaria Training Manufacturing Local IT & BPO Economy Property Major Public Market Investors Services Attracting Places to Quality of Life Talent Visit PLOVDIV INVESTMENT & TECHNOLOGY DESTINATION 2019 INVESTMENT & TECHNOLOGY DESTINATION PLOVDIV PUBLISHED BY PLOVDIV MUNICIPALITY COPYRIGHT 2019 PLOVDIV MUNICIPALITY WELCOME TO PLOVDIV As a mayor of Plovdiv, I am proud and ‣ Plovdiv is the “industrial heart” of privileged to open the 2019 edition of Bulgaria with over 75 000 jobs in the “Investment & Technology manufacturing. Destination Plovdiv” catalog. ‣ Trakia Economic Zone hosts over This may be your first encounter with 100 multinational and local Plovdiv or you may update previously producers. known facts about the region. In all cases, it is just the first step in a ‣ A local economy with predominant journey that I and my team will join business profile - 70% of all value you in. added in manufacturing and B2B services. ‣ IT&BPO are the fastest growing sectors - outnumbering 7000 jobs and a 15% annual growth of productivity. ‣ City’s pool of talent is expanding steadily - some 40 000 students, Eng. IVAN TOTEV positive migration balance, growing Mayor of Plovdiv expat community. 1 TABLE OF CONTENTS DOING BUSINESS IN BULGARIA MACROECONOMIC INDICATORS 1 INVESTMENT CLIMATE LABOR SUPPLY POPULATION 2 WORKFORCE 3 EDUCATION & TRAINING LOCAL ECONOMY VOLUME & STRUCTURE 4 INVESTMENT & PRODUCTIVITY IT&BPO INDUSTRY ZOOM 5 WAGES ECOSYSTEM ATTRACTING TALENT TO PLOVDIV COST OF LIVING 6 STARTING A BUSINESS FOREIGNERS IN PLOVDIV 2 PROPERTY MARKET RENTS 7 INDUSTRIAL ZONES MANUFACTURING INDUSTRY ZOOM 8 WAGES 9 MAJOR INVESTORS PUBLIC SERVICES LOCAL TAXES & FEES 10 ACCESS TO UTILITIES 11 PLACES TO VISIT QUALITY OF LIFE SPORTS & RECREATION 12 CHILDCARE & MEDICAL SERVICES 3 Vienna 1 156 km Bucharest 386 km VII IX Port of Russe 313 km Munich 1 480 km IV X Varna Port 368 km VIII Sofia Airport 203 km Burgas Port 256 km Durres (Ferry to Italy) PLOVDIV 700 km Istanbul 419 km Port of Haydarpasa 424 km Thessaloniki Port 334 km Alexandroupoli Port 237 km 4 DOING BUSINESS IN BULGARIA MACROECONOMIC 1.1 INDICATORS €55.2 €1.7 BILLION BILLION GDP FDI €7855 3.2% GDP FDI PER CAPITA (as % of GDP) €28.3 €32.2 BILLION BILLION EXPORTS IMPORTS € 19.8% +3.1% FIXED PUBLIC DEBT GDP CHANGE EXCHANGE RATE (as % of GDP) SINCE 1997 third lowest in EU Year over year change, To stay in place till Ministry of Finance, 2018 Bulgaria joins Eurozone March, 2019 Bulgaria enjoys macroeconomic and fiscal stability and predictability 2.8% 1% 5.2% INFLATION BUDGET SURPLUS UNEMPLOYMENT 2018 (as % of GDP) 2018 2018 Source: NSI, BNB 5 DOING BUSINESS IN BULGARIA INVESTMENT 1.2 CLIMATE 10% 20% 68 FLAT CORPORATE AND VAT DOUBLE TAX INCOME TAX RATE TREATIES 5% TAX €1534 WITHOLDING TAX ON BURDEN MAXIMUM INSURANCE DIVIDENTS & BASE ON WHICH SOCIAL LIQUIDATION SHARES & HEALTH DISTRIBUTED TO NON- CONTRIBUTIONS ARE EU/EEA COMPANIES DUE Source: NSI, BNB st 33rd rd 21 (out of 190) 3 (out of 190) (lowest in EU) PROTECTING TRADING ACROSS MINORITY PUBLIC DEBT BORDERS INVESTORS IMF, 2018 DB Index 2019, DB Index 2019, World Bank World Bank Cost of enforcing contracts (% of claim) Bulgaria OECD high income Europe & Central Asia 18.6% 21.2% 26.3% Source: Doing Business database, 2019 6 LABOR SUPPLY 2.1 POPULATION PLOVDIV Downtown 535 000 775 000 30 min. from 45 min. from DOWNTOWN INDUSTRIAL ZONES 251 000 212 000 Under 20 20-44 45-64 64 -74 75+ High quality of life & a myriad of possibilities 7400 for career development +2300 NEW INHABITANTS constantly attract new NET ANNUAL (city) CHANGE citizens making Plovdiv (city) the fastest growing city in Bulgaria +6.7‰ NET MIGRATION 3600 2500 INTERNATIONAL 20-29 YEARS EXPATS (district) STUDENTS Source: Plovdiv Municipality, NSI, 2018 7 Industry partners in the 2019 program for career orientation & motivation of primary school children www.ei-board.org 8 LABOR SUPPLY 2.2 WORKFORCE Мore than any other region in the 26 400 69.9% WORKFORCE EMPLOYMENT RATE country GROWTH (15-64 years) FOR 2 YEARS EU average: 68% Source: NSI (data on district level for 2018) Number of industry-compatible employees 35 929 27 442 18 420 SKILLED INDUSTRIAL MACHINE OPERATORS TECHNICIANS WORKERS Source: NSI (data on district level for 2017) Local economy structure (by number of jobs) 48 733 IT, BPO & B2B services 48 733 Manufacturing Consumer33 203 services 33 203 75 361 Construction 10 677 220 592 District with jobs 10 677 most jobs in75 361 Others 9 339 manufacturing 9 339 Public services & regulated markets 43 279 Freelancers43 279 & seasonal workers: 96 000 TOTAL EMPLOYMENT : 316 600 Source: Trakia Tech based on NSI (data on district level for 2017) 9 EDUCATION & 3 TRAINING 29 12 315 VOCATIONAL HIGH STUDENTS IN SCHOOLS VOCATIONAL HIGH SCHOOLS 36 10 847 GENERAL HIGH STUDENTS IN SCHOOLS FOREIGN LANGUAGE & GENERAL HIGH SCHOOLS 7 80 FOREIGN LANGUAGE VOCATIONAL HIGH SCHOOLS EDUCATION CENTERS 41 549 9 2500 STUDENTS UNIVERSITIES FOREIGN STUDENTS Source: Plovdiv Municipality based on data from universities for 2018, NSI, NAVET 10 Major fields by number of enrolled students Business Services 7652 Engineering & technical studies 5402 Food technologies & Agricultural studies 4900 Natural Sciences 1896 Source: Plovdiv Municipality based on data from universities (data on district level for 2018) 2005 2328 7641 VOCATIONAL HIGH GENERAL HIGH UNIVERSITY SCHOOL SCHOOL GRADUATES GRADUATES GRADUATES Source: NSI (data on district level for 2017) Top 5 biggest universities in Plovdiv NUMBER OF UNIVERSITY MAJOR FIELDS STUDENTS Information technology & Computer Plovdiv University 25211 Science; Business services; Language studies Medical University of Plovdiv 5311 Medicine & dental medicine; Healthcare Agricultural University Plovdiv 4324 Agronomy; Plant protection Food & beverages technologies; Machine University of Food 2867 Technologies building Technical University Sofia - Electronics & automation; Mechanical 2019 branch Plovdiv engineering Source: Plovdiv Municipality based on data from universities for 2018 11 LOCAL ECONOMY VOLUME & 4.1 STRUCTURE South-central Plovdiv district region Bulgaria TURNOVER €13 €19 €140 BILLION BILLION BILLION OUTPUT €8.3 €12.8 €86 BILLION BILLION BILLION WORKFORCE SIZE, 2018 325 636 3326 THOUSAND THOUSAND THOUSAND Manufacturing & business services account for over 2/3 of the local economy Local economy structure (by added value) 26 Business services 26.3% Public13 services & regulated markets 13% Consumer services 10% Manufacturing 10 Construction 4.5% 42.6% 5 Others 3.6% 4 Source: Trakia Tech based on NSI (data on district level for 2017) 12 LOCAL ECONOMY INVESTMENT & 4.2 PRODUCTIVITY €6200 5.8% €4.2 GDP PER BILLION ANNUAL GROWTH CAPITA GDP 2012-2017 AVERAGE Rise of productivity €164 €861 is ensured by MILLION MILLION abundant capital CUMULATIVE FDI FIXED CAPITAL investment EXPANSION IN 2017 EXPENDITURES Source: NSI (data on district level for 2017) New construction projects in the region of Plovdiv consist largely of industrial space & warehouses 2.8 million m2 569 000 m2 (30 million ft2) (6.1 million ft2) 15.8% APPROVED FOR APPROVED FOR OF ALL PERMITS NON-HOUSING NON-HOUSING IN THE COUNTRY CONSTRUCTION CONSTRUCTION SINCE 2013 IN 2018 Source: NSI, 2018 13 IT&BPO INDUSTRY 5.1 ZOOM Employment in IT&BPO & related business services Administrative 7200 Law, accounting & other consulting 5300 IT&telecom 4000 Number of jobs in IT&telecom almost Finance & insurance 2100 doubled for a 5-year 1 000% 267 333% 533 667%period 800 000% Source: NSI (data on district level for 2017) Average annual growth in IT&telecom 3 000% 2 500% The sector has been growing rapidly 2 000% in recent years 1 500% 27.8% 1 000% 22.8% 500% 11.3% 14.7% 0% Output Value added Employment Labor productivity Source: NSI (data on district level for 2012-2017) Most popular programming languages among Bulgarian programmers Bulgaria is among the 17.9% JAVASCRIPT top 4 countries in the world where 0100101010 programmers 101010010 demonstrate the widest 17.5% 0010010 diversity of knowledge NET 001101001 & interests in various 00010 technologies 9.4% JAVA Source: DataArt, 2019 14 Global services location index (score ranges from 0 to 10) Poland 5.69 Bulgaria 5.55 Czech Republic 5.48 Romania 5.45 Estonia 5.30 Hungary 5.30 Lithuania 5.29 Latvia 5.29 Turkey 5.09 Slovakia 5.01 5 5 5 5 5 6 6 Source: A.T. Kearney, 2017 Bulgaria is among the most attractive outsourcing destinations not only in Europe but also in the world th 7 OFFSHORING nd IN PIONEERING DESTINATION 2 & EMERGING OF THE YEAR IN EUROPE LOCATIONS Cushman & Wakefield's Global Sourcing A.T. Kearney's Global BPO & SSC location Association, Services Location index, index, 2016 2015 2017 Plovdiv has become EXCELLENCE IN ITS AMONG TOP 6 the IT & BPO center ECOSYSTEM EMERGING CITIES OF preferred by DEVELOPMENT THE YEAR domestic & foreign SEE Innovation, Technology & Annual CEE Shared investors alike Sourcing Summit 2019 Services Awards, 2018 15 IT&BPO 5.2 WAGES For wages up to €1534 total labor cost includes gross wage plus 18.9% mandatory social security contributions paid by employer. For wages over €1534 total labor cost includes gross wage plus lumpsum €290 Gross wages in IT&BPO in Plovdiv, €/Month (2020 forecast) IT COMPANIES ENTRY & JUNIOR LEVEL EXPERIENCED QA manual 660-1190 1580-2030 QA automated 790-1320 1920-2370 Developers 990-1690 1920-2830 Web content publishers & CMS administrators 530-790 990-1450 Graphic designers - pre-press 530-790 1050-1450 Graphic designers - creative 660-990 1190-1580 System administrators 660-990 1450-1800 SHARED-SERVICES CENTERS JUNIOR LEVEL EXPERIENCED Customer support representatives 590-730 860-1190 Sales specialists 730-790 860-1190 Office managers & assistants 660-730 860-990 Finance & accounting 730-920 1120-1450 Source: Trakia Tech survey 16 IT&BPO 5.3 ECOSYSTEM List of companies 60K Gv Solutions SBND Technologies Actsoft Heisenberg Online Marketing SBTech Global Limited Aii Data Pro Hemisphere Commerce ScaleFocus Angelsoft Hosting Solutions Seeburger ASIC Depot ICYGEN SelMatic Ltd.