InvestBulgaria Agency

August 2014  InvestBulgaria Agency issue 8 (11), year 2  Economic News - Business, Investments, Trade  Headlines from the European institutions  Analysis of Sector Monthly  Investment Opportunities of Municipality Electronic Publication  Interview  Chambers of Commerce in  Macroeconomic Indicators  Upcoming Events

INVESTBULGARIA AGENCY

TODAY WE PRESENT:

Vаssil Shtonov

Interim Minister of Economy and Energy

Mr. Shtonov was born in on April 25, 1972. He graduated the English Language School in Plovdiv. In 1995 he graduated the University of Pennsylvania in the USA with a bachelor's degree in electronic engineering science and finance. He is also master of sciences in business administration at the Massachusetts Institute of Technology (MIT), graduating in 1999. Until 2004, he has worked as an investment banker in the field of energy and technologies in the USA, as well as as a consultant in the field of management. Mr. Shtonov has managed some of the biggest deals in mergers and acquisitions, such as the merger of Bell Atlantic with GTE in 2000. In 2004 Vasil Shtonov establishes the office of international consultant company McKinsey in where he worked until 2009, mainly in the field of banking, telecommunications and energy. Since 2010 until August 4, 2014 Mr. Shtonov works as Marketing and Strategies Director at Bulgaria's Blizoo cable operator. He speaks English.

The Ministry of Economy and Energy is facing some urgent issues which have to be resolved as soon as possible. Our efforts are aimed at stabilizing the economy and energy in order to regain the investors’ trust.

InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000 Tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320, e-mail: [email protected], http://www.investbg.government.bg

issue 8 (11) / August 2014 InvestBulgaria Agency

Improvement of the business environment is also important for us in order to aid the development and growth of small and medium enterprises. These are the main source of jobs and generate innovative ideas which to a great extent provide the potential for economic growth. Urgent measures are in need to be taken in order to boost foreign trade, aid the business enter new markets and support the export- oriented enterprises.

The need of a full-scope state policy in the electricity sector makes financial stability of the sector as well as improvement of the work efficiency of State enterprises a priority. After we present the real situation in the sector - where do the obligations in it come from and how will they develop in the future – we will create a program consisting of a number of measures. We made a decision to create an Energy Board as a permanent consultative body to Council of Ministers in which all concerned parties will take part. Bulgarian energy industry will be healed through a consensus between all concerned parties.

We will regain the beneficiaries’ trust and the trust of the partners under the OP ‘Competitiveness’ to ensure that the means get to the Bulgarian business in a just and effective way. The total budget of the new operational programme ‘Innovations and competitiveness’ will reach 1.39 billion euro. There is a plan for creation of a Guarantee fund during the next programming period: 2014 – 2020. Thus one of the main problems of the business will be solved – the lack of enough collateral if crediting is needed.

стр. 2 от 26 InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000 Tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320 e-mail: [email protected], http://www.investbg.government.bg issue 8 (11) / August 2014 InvestBulgaria Agency

ECONOMIC NEWS – BUSINESS, INVESTMENTS, TRADE

ECONOMIC INDICATORS Bulgaria to pour BGN 1 billion in R&D in 2015 Foreign Direct Investments, Current

and Financial Account Bulgaria is to spend BGN 937.9 million on innovations in 2015, almost twice the amount allocated in 2011, when the expenses for research and development amounted to BGN 429.6 million. The decision is part of the last version of the Innovation Strategy for Intelligent Specialization 2014-2020, which is aimed at determining the distribution of EU funding under the program "Innovations and Competitiveness" in the 2014-2020 programming period, Standart wrote. Bulgaria's public spending on innovations will total BGN 525.6 million next year, including BGN 275 million through EU funds, BGN 197 million from the state budget and BGN 53.6 million from institutions of higher learning. Business climate Companies and non-profit organizations are expected to spend around BGN 412.3 million on technological innovations in this period.

amcham.bg

Bulgaria ranks fourth place in the world in low taxes for foreigners

Bulgaria is fourth in the world ranking of destinations with the lowest taxes for foreigners, published by the "Daily Mail". Bradley Hekford, company specializing in international expatriation, Main Interest Rate compiled the top ten countries with low tax burden based on criteria 0.04% - 01.08.2014 such as quality of life, legal and physical security, quality of economic investment, accessibility of the site and opportunities for recreation. Bulgaria is placed at fourth place in the ranking for lowest tax burden in Europe with 10% tax on personal income. Europeans don't have to invest in order to gain citizenship, but non-Europeans must be willing to invest 400,000 pounds in government bonds, marked by Bradley Hekford.

First in the list are placed Bahamas who are close to the U.S.A. and Inflow, outflow and unemployed enjoy the splendid surroundings and political stability. The country, persons which consists of over 700 small islands, offers an excellent standard of living and 0% tax on personal income. www.news.bgnes.com

CORADO Bulgaria invests BGN 25 million

The factory for radiators and heating CORADO Bulgaria will invest BGN 25 million in its manufacturing base in . The company aims to increase its product range and thus to strengthen its leading position in the country and abroad. The Executive Director engineer Irji

Rzheznichek revealed that part of the facilities will work this year. Source: NSI стр. 3 от 26 InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000 Tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320 e-mail: [email protected], http://www.investbg.government.bg issue 8 (11) / August 2014 InvestBulgaria Agency

HICP and contributions by main components "From the beginning of the year we have started the installation of the second modern line that is fully automated and is over three generations from the existing. This will expand the production capacities. The first investment amounts to about 3 million euro. Production will begin at the end of the year and the capacity is about 650 000 units per year", revealed for “Pressadaily” Mr. Rzheznichek.

pressadaily.bg

Bulgaria is the largest exporter of sunflower in the world

Bulgaria is the largest exporter of sunflower seeds in the world. Our country has moved out of the top spot Ukraine, according to the World Trade Organization. Last year, the revenues from export of GG debt and fiscal reserve sunflower reached 743.625 million dollars. The largest part of Bulgarian sunflower is exported to the Netherlands, Turkey, France and Portugal. The growth in the exports of sunflower in 2013 compared to 2012 was 46%, and averaged over the period 2009-2013 - 21%, according to statistics. Bulgaria holds a share of 17.8 percent of world exports of sunflower. In recent years in Bulgaria are used new technologies from the world leaders in agriculture. While in 2003 the average yield per hectare sunflower was 120 kg, whereas in 2010 has reached to 210.5 kg / ha.

24chasa.bg

Increase in the retail sales in Bulgaria and the EU in Merchandise trade dynamics June 2014

Retail sales in the 28 countries - members of European Union rose in June after stagnating in May, while there was an improvement in retail in Bulgaria for the second consecutive month, show the latest Eurostat data. Retail sales in the EU in June rose 0.3% on a monthly basis after their stagnant (0.0%) in May (upward revision from a previous estimate of a decline of 0.1%) as the last retail sales registered decline in December 2013.

According to European statistics on retail sales in Bulgaria rose by 0.3% on a monthly basis (similar to the entire EU) after their growth by 1.4% in May (solid upward revision from previous assessment Eurostat decrease of 0.1% ). This represents an improvement of retail in Bulgaria for second consecutive month after three previous months of decline (from February to April).

On an annual basis, retail sales in June in our country reported a sharp increase after a delay of their growth in стр. 4 от 26 InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000 Tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320 e-mail: [email protected], http://www.investbg.government.bg issue 8 (11) / August 2014 InvestBulgaria Agency

the previous month. According to Eurostat retail in Bulgaria registered a Selected Decisions solid increase of 2.4% (compared to June-2013) after an increase of 1.4 of the Government percent in May and an increase of 2.2% in April. And this indicator of the Republic of Bulgaria Bulgaria is situated in the "golden mean" of retail sales for the entire for the period European Union. 30.07.2014-27.08.2014 г.

bnr.bg

AFP: IT outsourcing boom boosts struggling Bulgaria 06.08.2014

After a timid start 15 years ago, the Balkan country is now a hub for KRISTALINA GEORGIEVA IS THE information technology and back-office outsourcing, reported AFP. BULGARIAN CANDIDATE FOR A VICE-PRESIDENT OF THE As well as call centres, firms offering software and web development, EUROPEAN COMMISSION AND data services and technical support are attracting business from foreign companies finding it cheaper to sub-contract abroad. FOR HIGH REPRESENTATIVE OF THE UNION FOR FOREIGN The 22,000 people employed in outsourcing generated up to three AFFAIRS & SECURITY POLICY percent of Bulgaria's gross domestic product in 2013, according to the Bulgarian Outsourcing Association, with turnover of more than one billion leva (510 million euros, $685 million). THE FRENCH AMBASSADOR The industry profits from top-quality IT specialists, as well as the wide PHILIPPE OTIE AND THE GERMAN range of over 20 languages other than English taught in Bulgarian high AMBASSADOR MATTHIAS schools and universities. HOPFNER ARE PROPOSED TO THE AWARDED WITH THE ORDEN A number of global players have also set up shop in Bulgaria including “STARA PLANINA” Adecco, IBM and Sutherland. Coca Cola HBC opened its own back-office services centre in Sofia in 2005 and is now serving 26 countries from here. It was followed by Hewlett-Packard, which opened a global delivery centre in 2006 and picked Bulgaria as one of its six "delivery hubs" in 30.07.2014 г.

2010. NINE INFRASTRUCTURAL au.news.yahoo.com COMPOUNDS OF NATIONAL SIGNIFICANCE ARE DETERMINED Litex Motors expands its presence in Eastern Europe IN THE SCOPE OF THE SCIENTIFIC RESEARCH Bulgarian car manufacturer Litex Motors starts export cars to Romania. The cooperation agreement with Romanian importer Alexandros Motors was signed on August 11 in Bucharest. BULGARIA TO OPEN CONSULATE IN BRAZIL The contract with the Romanian company is a step towards expanding partners` network of Litex Motors in Central and Eastern Europe and strengthening the brand Great Wall. Automobiles produced in Bulgaria THE FISCAL POLICY INTRODUCED are already on the market in Italy, Macedonia and Serbia. The company GIVES THE OPPORTUNITY FOR expects significant sales growth abroad as planned and seriously enter MAINTAINING FINANCIAL AND the markets in Slovakia and Hungary. MACROECONOMIC STABILITY The Romanian company valued as a key partnership with Litex Motors and the ability to enforce cars Great Wall, which meet all emission requirements of the EU and offer excellent quality at affordable prices suitable for the European market. Of particular importance is the short distance of the manufacturer to the point of sale – the supply of vehicles will be done in a much shorter period, which is an important advantage for the end user, Alexandros Motors representatives said. This стр. 5 от 26 InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000 Tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320 e-mail: [email protected], http://www.investbg.government.bg issue 8 (11) / August 2014 InvestBulgaria Agency

agreement sets a new stage in the European car market.

At first, Litex Motors will export to the Romanian market Great Wall H 6 SUV and the Steed 5 Pick-up in both gasoline and diesel engines. The 27.08.2014 г. distribution and maintenance of the cars will be provided through a 20 dealers network, located in the biggest cities of Romania. FACILITATING ACCESS TO HIGHER EDUCATION FOR FOREIGN Alexandros Motors has significant experience in the distribution and sale STUDENTS WITH BULGARIAN of new and used cars. The Romanian company is the exclusive NATIONALITY representative of King Long – bus manufacturer and Shangli – manufacturer of forklifts. GOVERNMENT ADOPTED FOUR The collaboration between Litex Motors and Alexandros Motors aims to REGULATIONS IN ACCORDANCE achieve a significant percentage of the Romanian SUV and Pickup market WITH EUROPEAN and, simultaneously, to strengthen the pole of car-manufacturers in REQUIREMENTS FOR Central and Eastern Europe. GREENHOUSE GAS EMISSIONS

greatwall.bg ENERGY BOARD WILL HELP Bulgaria’s GDP grows by 1.6% in second quarter of 2014 RESOLVING THE PROBLEMS IN THE SECTOR on same period of 2013

According to the seasonally adjusted data, the GDP growth rate in the second quarter of 2014 has an increase of 0.5% compared with the previous quarter. Gross value added increases in the second quarter of 2014 by 0.6%. According flash estimates of GDP by final expenditure in the second quarter of 2014 major contribution to the growth registered have the export of goods and services which increases with 1.0%, gross fixed capital formation with 0.8% and individual consumption with 0.1%. During the second quarter of 2014 GDP at seasonally adjusted data increased by 1.6% compared to the same quarter of the previous year. Gross value added increased by 2.4%. An increase is recorded in industry (4.5%) and the services sector (1.0%), while agricultural sector decreases its level with 1.5%. As regards the expenditure components of GDP, the final consumption registered a positive economic growth of the individual and the collective consumption by 1.9 and 0.3% compared to the same quarter of the previous year. Gross fixed capital formation recorded an increase by 3.9% compared to the same quarter of the previous year. Exports and imports of goods and services increased by 2.9 and 1.0%.

nsi.bg

Bulgaria ranks first in the production of copper and gold in Europe

Bulgaria ranks first in production of copper and gold in Europe, according to the Bulgarian Mining Chamber. Furthermore, Bulgaria is among the first in the European mining. стр. 6 от 26 The new plant of "Devnia cement"InvestBulgaria will beAgency ready (IBA), 31 in Aksakov Str., Sofia 1000 Tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320 September e-mail: [email protected], http://www.investbg.government.bg

The complete reconstruction of the plant "Devnia cement" (part of "Italcementi Group Bulgaria"), which began in the summer of 2012, issue 8 (11) / August 2014 InvestBulgaria Agency

In the sector are employed nearly 24,000 people and The assets of investment funds increased for the previous year is recorded growth in the average at the end of June wage in the industry.

Almost 600 are the mining localities in the country. The assets managed by resident and non-resident Despite the good results in the extraction of gold and investment funds operating in Bulgaria totalled BGN copper, the coal remains the main raw material mined 1,860.5 million as of end-June 2014. They increased by in Bulgaria. BGN 648.2 million (53.5%) year-on-year (from BGN 1,212.2 million), and from March 2014 they increased econ.bg by BGN 98.5 million (5.6%), show the data of Bulgarian National Bank (BNB). "Carat Electronics" invests BGN 8 million The total amount of resident and non-resident in Bulgaria investment funds assets equated to 2.3% of GDP4 at end-June 2014, growing by 0.8 percentage points from "Carat Electronics" has changed its name to AQ June 2013 (1.6% of GDP). Plastronic and with an investment of nearly BGN 8 The assets of resident investment funds amounted to million will expand its production. The local company BGN 830.5 million as of end-June 2014 growing by BGN recruits employees and initially are announced 30 new 209.4 million (33.7%) year-on-year. They increased by work places, since the electronics company is working BGN 42.1 million (5.3%) from March 2014 (BGN 788.3 on a project for the supply of plastic products and million). electronics for the giants "Volvo", "Ericsson" and "Scania", informed the Executive Director Emil Equity funds increased by BGN 56.9 million (30.8%) to Nikolov. The new Swedish owner has several BGN 241.8 million at end-June 2014, compared with businesses in the country, including "AK Electric" - BGN 184.9 million in June 2013, whereas mixed funds’ and "Magnet" - . assets grew by BGN 23.9 million (23.8%) to BGN 124.3 million, from BGN 100.5 million in June 2013. Borba – Compared with March 2014, equity funds grew by BGN 6 million (2.5%), and mixed funds’ assets rose by BGN Plant in the will employ 4,900 9.4 million (8.2%). Bond funds’ assets increased by BGN seamstresses 128.8 million (38.5%) to BGN 463 million in June 2014, Investor who produce sportswear, jeans and leather from BGN 334.2 million in June 2013. Compared with jackets in Germany will build a huge textile factory in March 2014, bond funds assets increased by BGN 26.8 the Bulgarian city Knezha. Vakas Malik has registered million (6.1%). his company in "Avanstar Bulgaria" and has received As of end-June 2014, bond funds held the largest share certificate for investment Class A. of 55.8% in the assets of resident investment funds, Malik has committed to invest BGN 55.1 million for against 53.8% reported in June 2013, and 55.3% in three years and to create 4900 new jobs. As a future March 2014. Equity funds held 29.1% at the end of employment, this is the largest project in Bulgaria in June 2014, against 29.8% in June 2013 and 29.9% in the past 10 years. It is envisaged that after the first March 2014. year will be employed about 1,000 people in the plant, bnb.bg and full employment will be reached after five years. This will solve the problems with the unemployment not only in the Kneja but also in the neighboring BGN 2.5 million will be invested in new municipalities of , cherven Briag, tire plant in Slanotran, Oriahovo. About 30 jobs will be created in the new processing pressadaily.bg plant for tires near the Vidin village Slanotran, announced at a press conference the Executive director of the company Todor Nikolov.

стр. 7 от 26 InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000 Tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320 e-mail: [email protected], http://www.investbg.government.bg issue 8 (11) / August 2014 InvestBulgaria Agency

BGN 2.5 million are invested in the plant for non-waste Accommodation and food service activities) - 4 688 processing of discarded tires. The company "Trade and million Euro. In 2013 these activities formed 64.1% of Technology Company" Inc, which is the owner of the the total foreign direct investments, as their relative enterprise, has introduced an innovative technology share increased by 0.2 percentage points with for processing of raw materials, which is protected by a comparison with the previous year. The foreign direct patent in more than 50 countries and was developed investments in Construction sector amounted to 918 by Bulgarian scientists. million Euro or by 0.3% more as compared to 2012.

economynews.bg, BTA According to preliminary data in 2013 the actual expenditure on acquisition of tangible fixed assets in all Arms factory "Arsenal" will recruit more sectors of the economy amounted to 18 351 million than 1,000 new employees BGN and decreased by 3.9% compared with the previous year. Arms factory "Arsenal" in plans to recruit more than 1,000 new employees as a result of the The largest volume of investments in tangible fixed increased workload and the long term contracts. This assets was invested in the sector of Industry 5 912 was announced by the Executive director Hristo million BGN and in the Service sector (Wholesale and Ibushev. In his words new workers are necessary for retail trade; repair of motor vehicles and motorcycles; the implementation of the long-term and large orders. Transport, communication and services; Accommodation and food service activities) - 4 016 The company returns to its position in the United million BGN. In 2013 these sectors formed 54.1% of States, where is supplier for the civilian market and the total expenditure on acquisition fixed assets. The government. According to Ibushev main buyers of the investment in tangible fixed assets in the Construction arms market in Eastern Europe, India, America and the sector was 1 298 million BGN and increased by 19.3% Middle East, who had stopped the purchases in the compared with 2012. recent years, now return. capital.bg In 2013 the structure of expenditure on acquisition of tangible fixed assets by kind was changed. The relative Foreign direct investments in the non- share of investments for machines and equipment reduce by 3.2 percentage points compared with the financial sector in Bulgaria increased by previous year and was 32.9%. The share of the 4.5 % in 2013 compared to 2012 expenditure for purchase of land decreased by 0.2 percentage points and was 7.3%. At the same time According to preliminary data the foreign direct observed an increase of the relative share of investments in the non-financial sector as of expenditure for means of transport by 2.1 percentage 31.12.2013 amounted to 22 948 million Euro, which is points and of buildings and construction equipment - 4.5% more compared to 2012, announced National by 1.5 percentage points, which formed 11.4% and Statistical Institute (NSI). The largest volume of the 39.8% from total investments respectively. foreign investments was made in Industry - 10 011 bta.bg million Euro and Service sector (Wholesale and retail trade; repair of motor vehicles and motorcycles; Transport, communication and services;

стр. 8 от 26 InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000 Tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320 e-mail: [email protected], http://www.investbg.government.bg issue 8 (11) / August 2014 InvestBulgaria Agency

INVESTMENT PROJECTS IN A PROCESS OF REALIZATION

C3i C3i a U.S. company that specializes in providing IT services and outsourcing of business process for the pharmaceutical industry creates 100 new jobs in the country. This was announced by Joel Morse, CEO of C3i, and Svetoslav Georgiev, Managing Director of C3i for Bulgaria, during the official opening of a new office in Sofia. According to Joel Morse determining factors for the company's decision to open its European Operations Centre in Bulgaria are mostly due to our country’s good economic climate, excellent physical and technical infrastructure and high-quality and educated staff who speak one, two or even more foreign languages. C3i is specialized in offering IT outsourcing services to pharmaceutical companies, organizations engaged in clinical research, as well as in the field of telemedicine. The company has over 1,600 employees in U.S.A., Bulgaria, India and China. It serves more than 70 customers worldwide, many of which are among the top 50 pharmaceutical companies.

Source: www.cio.bg

Zvezda Ltd The new facilities are part of the second stage of a project for modernization of the enterprise. Construction of two entirely new warehouses is imminent. They will be used for preparation and pressing of the raw material and for oil extraction. Thus the plant’s existing capacity will grow. This will make possible processing of sunflower, as well as of rapeseed and soybeans for the food industry, and for production of biodiesel. The estimated investment amounts to EUR 10 million, the owner of the company Mite Nikolov informs. He added that the new industrial units will become operational in 2015.

Source: http://plevenzapleven.bg/

“Elekta 03” Varna-based company "Elekta 03“ turned the first sod of a processing factory for rapans in . The total investment is BGN 1.5 million, as BGN 440 thousand are co-financed from project approved by the Local Fisheries Action Group -Kavarna- under Operational Programme for Fisheries Development. The factory will be located in an area of 576 square meters and is implemented in the neighborhood - Hadzhi Dimitar in Kavarna, the main workforce will be hired from the employment office and the free market, which will significantly reduce unemployment in the municipality of Kavarna. The investor plans to fully launch the plant within three months. This is the largest project under the Operational Programme in the fisheries sector taking into account the indicator 'new jobs opening'.

Source: http://daily.bia-bg.com/

стр. 9 от 26 InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000 Tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320 e-mail: [email protected], http://www.investbg.government.bg issue 8 (11) / August 2014 InvestBulgaria Agency

HEADLINES FROM THE EUROPEAN INSTITUTIONS

Safer cruise ships thanks to EU-funded research See more

European Commission adopted ‘Partnership Agreement’ with Bulgaria on using EU Structural and Investment Funds for growth and jobs in 2014-2020 See more

Protecting Intellectual Property Rights: Customs authorities detain nearly 36 million fake goods at EU borders in 2013 See more

Water re-use in Europe See more

The EU's energy dependence: facts and figures See more

стр. 10 от 26 InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000 Tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320 e-mail: [email protected], http://www.investbg.government.bg issue 8 (11) / August 2014 InvestBulgaria Agency

ANALYSIS OF SECTOR

Textile industry in Bulgaria

As a leading sub-sector of light industry, the textile industry in Bulgaria dates back to the beginning of the XIX century, with the opening of the Zelyazkov / Fabrikazhdiyata / textile factory in in 1834. Until the liberation, textile production was centered mainly in the Balkan, Srednogorian areas where plenty of raw materials were found. After that, textile industry has developed at a faster pace, due to the availability of local raw materials, secured markets and labor force. During the period, main cotton textile centers become the port cities of Varna, Rousse and Bourgas. Other textile centers by the end of the Second World War were Sofia, , Plovdiv, Sliven, and . In the 30s of the twentieth century, Bulgaria was one of the main exporters of silk cocoons in Europe. The sector employs over 33%of the people working in the industry, producing 20% of CFS in the country. Today, the textile and clothing industry still plays an important role in the Bulgarian economy, as shown by a rise in exports, which in 2013, reached € 1.8 billion.

In terms of employment, in 2013 there was a decline by 2% in the number of employees in the sector. The total number of people employed in the textile industry, according to the Bulgarian Association of Producers and Exporters of Textile and Apparel (BAATPE), amounted to 110,000 people, making the sector the second largest employer after the state administration. In line with textile exports, according to the latest data from the National Statistics Institute last year, as well as recent data from Eurostat, the sector reported growth in exports, which in 2013 reached 1.8 billion Euros. The increase of 7% is the highest value of exports after 2007 fit, with 90% of the produced clothes and textiles in Bulgaria are exported to Europe. 23% of the export industry is aimed at Germany, 22% at Italy and 11% at Greece. Other countries to which Bulgaria makes deliveries are customers from France, Austria and the UK. In comparison, in 2012 the sector sold overseas production for 1,671 million Euros.

Despite the crisis, the interest of European producers towards Bulgarian textile industry has increased. The country retains its competitiveness, due to low wages and the constructed image of good quality. These factors are crucially important to smaller series top brand clothing. Sewing workshops in Veliko Tarnovo region reported sales growth, which was mainly due to non-competitors price and excellent quality of goods produced. Production at factories, working mainly for the European market, as key partners and guarantors are companies from Spain, Italy, France and Germany leads to an increase in wages. The delivery of Bulgarian textiles to European factories takes about 4-5 days, but the quality is still an advantage over Chinese goods for which the waiting period is more than one month.

Foreign partners of Bulgarian clothing companies choose our country because of the low labor costs and the fact that the workforce in the country is coping with the complexity of set patterns for sewing. That's why many Western fashion companies choose production of their models here. Bulgarian textile is also characterized by:

• Trained and cheap labor force, compared with competitors states;

• Strategic geographic position of the country-crossroads between the East and the West, as well as a gateway to the Balkans and the Middle East;

• The high quality of the garments, produced in the country;

• Availability of raw materials;

• Long-standing traditions;

стр. 11 от 26 InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000 Tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320 e-mail: [email protected], http://www.investbg.government.bg issue 8 (11) / August 2014 InvestBulgaria Agency

• Macroeconomic stability in the country;

Traditional long-term development of the textile industry has helped the industry to become a suitable place for foreign investment. These investments will stimulate the development of the sector in Bulgaria. New financial revenues would increase the skills of the workforce, which will lead to improved quality of the final product and increased efficiency in the production itself, and will also help the Bulgarian enterprises to be more competitive in the international market. Moreover, quality of the work force is high, the timing of manufacture and delivery - short, flexible. The equipment is highly technical, skilled workers, prices are completive. Bulgarian enterprises are still producing custom clothing, mainly for Europe and even today, despite the crisis and reduced consumption, which has a strong influence on the fashion industry, Bulgaria dress Europe. The textile industry is the oldest industrial sector in Bulgaria and as such, is actually part of the European market long before Bulgaria’s joinery in the EU. The first eight European countries for export are Italy, Germany Greece, France, UK, Austria, Belgium, and the Netherlands. This also proves that Bulgarian companies work in a way that satisfies customers that contributes to the promotion of the textile sector.

стр. 12 от 26 InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000 Tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320 e-mail: [email protected], http://www.investbg.government.bg issue 8 (11) / August 2014 InvestBulgaria Agency

INVESTMENT OPPORTUNITIES OF MUNICIPALITY

Municipality Area: 625.32 км² Mayor: Stanislav Petrov Blagov Tel: +359 631 68 101 Fax: +359 631 605 04 e-mail: [email protected] Web site: www.svishtov.bg

IVESTMENT OPPORTUNITIES OF THE

Svishtov is one of the oldest towns in Bulgaria. It is located in northern central Bulgaria on the Danube river, the largest European river, in its southernmost point. The town lies about 230 km from the capital Sofia, and 80 km from the regional center Veliko Tarnovo.

The municipality’s total population at 15.06.2014 is approximately 44, 622 people, 32,132 live in the municipal centre and the rest are distributed in the 15 villages of the municipality.

Svishtov is recognized as an educational and commercial center, rich in history, culture and traditions. It is known as the first Bulgarian town to be liberated during the Russo-Turkish War, 1877-78, the first Bulgarian civil government was founded there, too. One of the most prestigious economics universities in Bulgaria - University of Economics "Dimitar Apostolov Tzenov" is situated in the town due to which Svishtov has its distinctive appearance of a university center. The main industries in the town are the chemical and food industries, as well as commercial companies and services. The region has traditions in viticulture and winemaking.

Similar to most Bulgarian municipalities, in the last few years the Municipality of Svishtov implemented a wide funding programme, relying mainly on EU funds. During the past programme period 2007 - 2013 year in the budget of the Municipality of Svishtov were attracted more than 100 million lv. by winning and implementing large-scale projects under the operational programs of the Republic of Bulgaria. The municipality is working towards an improvement of the infrastructure, environmental and water protection, waste management, the creation of new social services, and culture and tourism development.

The European funding has enabled the complete renovation and refurbishment of all schools and kindergartens in the town of Svishtov, an approximate of 4 million lv., the quality of the health services has also been improved by the repair and supply of specialized medical equipment in the hospitals amounting to 3 million lv. With the implementation of a project for over 30 million lv. began the construction of wastewater treatment plant and inlet manifold. Along with the municipalities of , Levski, Pavlikem and Nikopol, the Municipality of Svishtov participates in a project for the construction of a regional landfill site. With a series of projects for the improvement of the urban environment, a cozy place for living and recreation was created in the center of Svishtov, while the park areas in the suburbs are currently undergoing a renovation.

The municipality of Svishtov proudly shared its successful social projects, thanks to which the city started a Day Center for disabled children, Social Support Centre and a Center for social integration and rehabilitation. During the last 10 years the emphasis in the investment programme of Svishtov municipality was put on the development of culture and tourism. In the territory of Svishtov municipality is located the biggest Roman стр. 13 от 26 InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000 Tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320 e-mail: [email protected], http://www.investbg.government.bg issue 8 (11) / August 2014 InvestBulgaria Agency

monument in Eastern Europe – Novae. Taking advantage of the opportunities of this important archaeological site from 2008 onwards an annual festival of the ancient heritage ’Eagle on the Danube’ takes place in the town of Svishtov. The Festival recreates ancient history - the customs, culture and military clashes between imperial Rome and the barbarian tribes of Thracians, Dacians, and Goths. Groups from Italy, Romania, Poland and Bulgaria participate in the event. This is the biggest festival in Bulgaria dedicated to the reenactment of events from the glorious past of our land. Over the last years there had been attempts for historical reenactment but never on such scale, such length and with such huge international participation. The event is organized by the Svishtov municipality and the Council of Tourism - Svishtov. In May 2014 the festival took place for the eighth time. The unique thing about it was that the Festival returned to its authentic place - the ancient Roman town Novae, partially restored and spectacularly exposed as a result of the implementation of several consecutive projects realized by Svishtov municipality. In the period 2012-2014 Svishtov municipality implemented a project entitled "Novae - the Heart of the legion. Socialization and exhibition of Roman military camp and ancient town of Novae - I stage" with total value of 5 880 992 leva. The main objective of the project is to increase the tourist potential of Svishtov municipality through restoration and promotion of the ancient town of Novae as an attractive specific tourist product. The project involved the restoration and conservation of most of the existing archaeological sites (Episcopal complex), an attractive reconstruction of the headquarters of the First Italic Legion (principles) and creating outdoor scenes for conducting reenactments of the Roman military life - fights, sports games, theater etc., creating tourist routes, infrastructure and accessible environment, and development of marketing and advertising related to Novae. At the end of July 2014 the project ‘Majestic Danube - untouched natural beauties and cradle of ancient nations’ with total value of 427 771 leva was completed. With this project Svishtov municipality had the opportunity to popularize the ‘Eagle on the Danube’ festival in Europe. Within the project the three border municipalities of Belene, Svishtov and Tsenovo united and, with Svishtov municipality as a leading partner, ad materials and parcels including tourist brochures, a tourist map of the region, guidebook and ad souvenirs were prepared and made. The ambition of Svishtov municipality is to continue to implement large projects during the next programming period of the EU levelling its objectives and priorities with the new vision written in the Municipal plan for development (2014-2020) namely: Svishtov municipality – an attractive place to live and invest, a prosperous, modern, educational, cultural, industrial, processing and transport centre – a bridge between the North and the Aegean sea.

For more information and pictures: http://www.svishtov.bg/projects.php www.VisitSvishtov.com/themajesticdanube https://www.facebook.com/eagleonthedanube

Municipality Svishtov Population Total for Svishtov Municipality 2013 Population (number) 40 602 Birth rate -5,31 Mechanical growth - total (number) -574 Leading companies by sales Company 2013 income (BGN thousand) Zaharni Zavodi JSC - Gorna Oryahovitza 150 810 Svilotsel SPJSC - Svishtov 109 106 Sugar SPJSC - Gorna Oryahovitza 90 367 66 109 Prestige 96 JSC - Veliko Tarnovo

стр. 14 от 26 InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000 Tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320 e-mail: [email protected], http://www.investbg.government.bg issue 8 (11) / August 2014 InvestBulgaria Agency

Extrapack LTD - Veliko Tarnovo 48 930 Leading companies by profit Company 2013 (BGN thousand) Svilotsel SPJSC - Svishtov 9 199 Day and Night LTD - Gorna Oryahovitza 4 072 Extrapack LTD - Veliko Tarnovo 2 629 Unipack JSC - 2 429 Arcus JSC - Lyaskovetz 1 729

Veliko Tarnovo Province Area 4 661,6 sq. km. Population Total for Veliko Tarnovo Province 2010 2011 2012 Population (number) 271 400 256 279 253 580 Natural increase - from 1000, ‰ -7.8 -7.9 -7.9 Economic Total for Veliko Tarnovo Province 2010 2011 2012 indicators Employees under labor contracts (number) and labor 70 493 69 215 67 706 market

Average annual salary of employees under labor contracts (BGN) 6 119 6 488 6 742

Economic activity rate - 15-64 years (%) 59.3 61.6 63.9 Employment rate - 15-64 years (%) 51.4 54.3 55 Unemployment rate (%) 13.1 11.7 13.8 Registered unemployed as to 31.12. (number) 11 817 11 834 12 526

GDP (BGN thousand) 1677.3 1684.1 NA GDP per capita (BGN) 6135 6539 NA Foreign direct investment in non-financial enterprises, as to 31.12. (USD thousand to 2006 - incl./ EUR thousand - after 67 211.5 73 033.8 84 292.3 2007)

Cost of acquisition of long-term tangible assets 267 898 340 400 377 732 (BGN thousand)1) Turnover (BGN thousand) * 3 652 061 3 973 940 4 184 791 Produced output (BGN thousand) * 2 351 308 2 520 466 2 667 361 Value added at factor cost (BGN thousand) * 744 216 794 340 807 225 1) Incl. purchase of land * Data are calculated by the methodology of Structural Business Statistics

стр. 15 от 26 InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000 Tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320 e-mail: [email protected], http://www.investbg.government.bg issue 8 (11) / August 2014 InvestBulgaria Agency

OPERATIONAL PROGRAMMES

Operational Programme on Transport 2007-2013

The Operational Programme on Transport 2007-2013 (OPT) is one of the seven operational programmes of the Republic of Bulgaria, which are financed by the Structural and the Cohesion Funds of the EU. The OPT is the operational programme with the largest budget in Bulgaria - EUR 2 003 481 163.68.

The main goal of OPT is developing of railway, road and waterway infrastructure, as well as stimulating the development of mixed transport in accordance with the transport policy of the European Union and the established requirements for development of the Trans- European transport network in order to achieve stability of the Bulgarian transport system.

Specific features of the program - in comparison with other operational programs in Bulgaria - is that it operates with pre-selected beneficiaries who, generally speaking, are the largest government bodies responsible for the various types of transport infrastructure. The Operational Programme is divided into five priority axes for the different types of transport – railway, road, waterway and Intermodal transport - and in the latter projects on technical help are funded – development of the administrative capacity, project preparation etc. From thе 15 billion leva European financial aid for Bulgaria within the framework of the Structural and the Cohesion Funds during this programming period nearly 4 billon leva are allocated to the Operational Programme on Transport. The largest infrastructural projects are being built with this money. The former consist of over 200km of motorways and express roads and over 400km of railways are being modernized at present. The funding of the Sofia metro railway network is also realized through the Operational Programme on Transport and purposeful investments are made in projects for shipping development. The current state of OPT can be measured directly by its achievements - over 256km wrap around distance of railways were renovated;over 140km of motorways were built along with over 40km of first class national roads; 13km of underground railways were built with 13 metro stations. The results are evident for the users of the transport infrastructure and it is not accidental that the sociological surveys show a high percentage of recognition and approval of the OPT. 21 projects, 11 of which are large ones – for over €50 million – are funded under the programme. Implementation has started on all projects. The projects currently completed are 7 but document work has finished on only three of them – the two sections of extension of the Sofia metro railway system in Sofia and the ‘Trakia’ motorway – which can be singled out as the top of the class of the programme.

The financial results of the programme are good and are within the realistic prognoses of the Governing body. The amount of payments to the beneficiaries and contractors respectively is already over 2 billion and 470 million leva or else 63% of the total disposable cash pool within the framework of the programme. The certified expenses forwarded for refunding to the EC have risen up to 57%.

Project for building of Vessel traffic monitoring and information system in Bulgaria

The transport policy of the EU regards the development of the waterways and in land waterways transport with in the Community as two key components of the Intermodal transport and as an instrument for easing of the

стр. 16 от 26 InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000 Tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320 e-mail: [email protected], http://www.investbg.government.bg issue 8 (11) / August 2014 InvestBulgaria Agency

increasing burden on the road and railway transport infrastructure and for reducing of the air pollution. Up to this point these two types of transport have not been used to a sufficient degree. Their development has to be supported by the development of better transport services on the waterways and inland waterways and more effective port services. The project will have significance for passenger and cargo control services in the maritime transport and those who have inspection and controlling duties – from the carriers in the logistics chain or the economically active subjects in the area, investors, concessionaires etc. – for the Vessel traffic monitoring system as well as the investments for improving of shipping in Bulgaria funded under The operational Programme on Transport.“

Significance of the Vessel Traffic Management Information System (VTMIS) development project The construction and maintenance of the Vessel Traffic Management Information System (VTMIS) is part of the Community vessel traffic monitoring and information system (SafeSeaNet). The main objective is to improve the safety, security and efficiency of the maritime transport, as well as reduce the environmental effects of pollution caused by ships in the sea areas of the Community. It is essential to note that the project fulfills all the requirements related to European directives which are applicable to our country.

Administrative capacity for project implementation The project beneficiary is the State Enterprise "Port Infrastructure" (SEPI) where a Project Implementation and Management unit is formed. Within the competence of the enterprise are information and communication services, as well as management of the vessel traffic in the sea areas of the Republic of Bulgaria. Therefore, in recent years SEPI executes several similar projects by operating with the existing VTMIS system. Most of the experts involved in the Project Implementation and Management unit have vast experience in the field of maritime information technology and telecommunications, associated with the introduction of modern systems such VTS, GMDSS and VTMIS. The team consists of skilled navigators who have worked both on ships and in coastal centers for management and information service of the vessel traffic. The biggest challenges for the team are related to the complexity of the system solutions. After completing the project an integration of all subsystems into a single national maritime information system linked to the EU structures will be completed, and for the first time in Bulgaria high-end radars of new generation will be installed.

Investment project VTMIS The management system of the vessel traffic is built within the pre-accession programs and is currently used in our country. The project funded by the Operational Program "Transport" will contribute to its upgrade and two new contemporary coastal management centers of vessel traffic will be built in and Varna. This will improve the safety and will create conditions for better vessel traffic service. The agreed funds under priority axis 4 "Improvement of the maritime and inland waterway transport" of the OP "Transport" are now almost 76 million lv., with 39 million invested in the VTMIS project. An investment of nearly 4 million lv. is provided for the construction of coastal stations in Varna and Bourgas. According to the program of the contractor they will be ready by the end of this year. The deadlines are very short, but best efforts to comply are made. OP "Transport" is in its final stage of construction and by the end of 2015 the projects in progress must be completed in order the available funds to be successfully utilized.

Main activities and technologies implemented in the project

стр. 17 от 26 InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000 Tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320 e-mail: [email protected], http://www.investbg.government.bg issue 8 (11) / August 2014 InvestBulgaria Agency

The project consists of two parts – construction and technological. The construction part includes the development of two buildings in Burgas and Varna while the technological section - the supply and installation of equipment and software for 20 sites and two Operational Centers. Thanks to that radiolocation and radionavigational systems of the latest generation will be embedded, a high-tech system for exchanging data in real time. An automated data processing required for the search and rescue of people and vessels in distress will be provided, as well as an integrated monitoring of all hardware and software within the system. The total investment for the project implementation amounts to over 39 million lv.

The benefits of the project The maritime space of the Republic of Bulgaria will be continuously monitored; the communicational, radio navigational, video and weather subsystems will all be integrated into a single national maritime information system related to pan-European structures, according to current requirements. One of the most important things about the project execution is that it creates conditions for greater efficiency in maritime search and rescue of vessels in distress. Following the successful completion of the project, information on shipping services will be collected and provided to all who require it. The project also creates prerequisites for more efficient and safe maritime business. These benefits will be most evident by the ships arriving or leaving the Bulgarian ports, as well as those in transit. www.optransport.bg Miglena Beliakova Monitoring, Information and Communication Department Tel. 02/ 9409 209

стр. 18 от 26 InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000 Tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320 e-mail: [email protected], http://www.investbg.government.bg issue 8 (11) / August 2014 InvestBulgaria Agency

The project "Tehnostart - Encouragement of innovation activity of young people in Bulgaria" With Order №RD-16-910/02.07.2014 from the Minister of Economy and Energy approves the Guidance 2014 for project "Tehnostart – Encouragement of innovation activity of young people in Bulgaria".

The deadline for submission is September 15th 2014.

The project is an implementation of priority areas № 1 "Entrepreneurship" and № 9 "Skills and innovation” from the National Strategy for support of SME 2014 -2020.

The total amount of the grant for the project is 400 000 Leva.

The project aims to encourage young entrepreneurs – students, phD and graduates in the earliest stage of the entrepreneurial cycle – they have the chance to submit a business idea and win a grant of up to 20 000lv.

In order to obtain the funding for the project, each applicant, after approval of his business plan, must register a company at the Registry Agency and provide his own contribution of 10% of the grant amount in the form of funds and/or assets.

All potential applicants should address questions related to the Competition at e- mail: [email protected] See more

стр. 19 от 26 InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000 Tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320 e-mail: [email protected], http://www.investbg.government.bg issue 8 (11) / August 2014 InvestBulgaria Agency

INTERVIEW Stefan Yordanov CFO at Lufthhansa Technik Sofia

You have been on the Bulgarian market from 6 years. What is your take on the investment climate in Bulgaria through the years?

Since our company was founded in Bulgaria we invested a lot; we provided a lot of workplaces for high qualified workers and we are proud that we had the opportunity to develop our business exactly in the county. In the recent years we passed through a lot of ups and downs in the world economy. Of course, this influenced in Bulgaria and the companies in the country. However, our market is not the Bulgarian one. We work with clients from whole Europe, Asia, former Soviet Union countries. Our activities are spread over 4000 kilometers around Sofia. Of course, we serve additionally planes of Bulgarian air companies, mainly “Bulgaria Air”.

How did you decide to invest in Bulgaria? What were the advantages/prerequisites?

Why Bulgaria? The place was chosen among many others mostly because of its strategic area in which Sofia is located, the developed aviation industry and the high-qualified professionals that we have found here. Moreover, the business climate in Bulgaria is good for foreign investors. The combination of all these factors makes Bulgaria very attractive destination for the foreign investors.

What are your expectations regarding your company’s development in 2014?

After our big project for expansion in 2012, future strategy for the company is to preserved it’s stability, to keep developing our business better and better together with the daughter companies of Lufthansa Technik Group and to keep sharing the good practices between them. Of course, we always have search for innovative ideas for development. At the moment we are working about the establishment of some centralized departments and most of them are going to be based in our base in Sofia.

What are the main challenges that a foreign investor meets in the country?

The main challenge for Lufthansa Technik Sofia is to remain a stable company. After the big expansion of the company in 2012, the planning of the projects should be very precise, because the capacity has been increased very quickly, which could be a problem there is not enough work. Speaking of the aviation industry as a whole, I think the main challenge is to remain competitive because customers have their own requirements, and the market offers a wide variety of choices.

What are the necessary measures that need to be taken by the government in order to improve the investment climate in Bulgaria?

More marketing and stable state policy for maintaining good climate for investing.

стр. 20 от 26 InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000 Tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320 e-mail: [email protected], http://www.investbg.government.bg issue 8 (11) / August 2014 InvestBulgaria Agency

Do you think that offering more government incentives would benefit the process of attracting foreign direct investments?

Relatively but more important is to have good business framework, stability and continuity.

It is often expressed in the media that the foreign investors in Bulgaria flee the country. Do you find this statement to be true?

We are here to stay for long!

What are the necessary steps that need to be taken in order to improve the country’s image internationally?

More marketing as I mentioned.

From todays’ standpoint, would you invest in Bulgaria?

We would definitively invested again in Bulgaria.

стр. 21 от 26 InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000 Tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320 e-mail: [email protected], http://www.investbg.government.bg issue 8 (11) / August 2014 InvestBulgaria Agency

CHAMBERS OF COMMERCE IN BULGARIA

North American-Bulgarian Chamber of Commerce (NABCC)

10 Lege Street, 6th Fl. Sofia 1000, Bulgaria Phone: + 359 2 987 53 80; Fax: + 359 2 987 53 81 Mobile: (+359 87) 860 1670 Email: [email protected]

United States. Canada Main Office - San Francisco #109 – 31063 Wheel Ave 6460 Leona Street, Abbotsford, BC V2T 6H1 Oakland, CA 94605 Phone: (604) 854 – 6793 (415) 251-2322 Fax: (604) 854 – 4371 Cell: (510) 798-7966 Mobile: (604) 835 – 9988 Emails: [email protected] Email: [email protected]

North American-Bulgarian Chamber of Commerce (NABCC) is a California non-for-profit corporation, registered in San Francisco, CA in 1999. This year in September, we will celebrate our 15th anniversary. In March 2014 we have celebrated 11 years since we registered North American-Bulgarian Chamber of Commerce, Branch Sofia and launched our operations on the territory of Bulgaria. We have also a registered office in the city of Vancouver, British Columbia, responsible for the operation on the territory of Canada. At the moment the organization does not have any activity on the territory of Republic of Mexico but we are planning to open this country in the feasible future.

Our activities Our mission is a personal approach to our member's needs. We are dedicated to serving our members business demands and assist them in achieving their goals. Our philosophy is best described by our motto: “A Personal Approach to Business”. We have always strive to seek new business opportunities for our members in this complicated and competitive economic world, to promote potentials for business amidst our Bulgarian members seeking to export their products to the North American markets and vice versa, to assist US and Canadian companies seeking investment or outsourcing opportunities, new markets, or simply a suitable partner in Bulgaria for joint venture endeavors. The activity of NABCC for the territory of Bulgaria is probably most intense. Every other month we organize corporate events for our members and partners in this country. During those events we give the opportunity to our corporate members to present their products and/or services in short multimedia presentations. Of course, we honor with corporate dinners all national holidays of USA, Canada and R. Bulgaria.

Services Below are some of the services that are included in the membership fees and are free of charge to our members. 1. Distribution and exchange of information among members of NABCC to promote business opportunities in стр. 22 от 26 InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000 Tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320 e-mail: [email protected], http://www.investbg.government.bg issue 8 (11) / August 2014 InvestBulgaria Agency

the Republic of Bulgaria and the countries from North America (USA, Canada and Mexico). Means of distribution include but are not limited to internally circulated information and the dissemination of information from sources external to the Chamber to be advertised or became available to its’ members through its media (website, newsletters, bulletins, brochures, etc.) 2. Assistance in the process of obtaining patent, copy and trademark rights. All fees and taxes are paid by the applicant. 3. Assistance in application and registration processes: licenses and registration of companies (corporations, LLC/Ltd, joint ventures, representative offices, agencies etc.). All taxes and fees are paid by customer. 4. Assisting in the process of designing and establishing distribution systems. 5. Facilitating and assisting in finding the most appropriate office space and equipment, and making travel and living arrangements in the foreign environment such as hotel reservations and accommodations, car rentals, etc. All fees and taxes are paid by customer 6. Staffing, administrative and juridical assistance, interpreters, legal translation of documents. 7. Organizing of seminars, workshops and symposiums to raise awareness and create knowledge of the political and investment climate, privatization, distribution and custom laws and regulations, cross cultural communication issues, geographical and historical facts. All members receive 25 to 35% discount on all events organized by us (might not include cover charges for food, beverages and accommodations.) 8. Assistance to members of NABCC in participating in trade shows in their industry sector.

Services for Corporate Members Advocacy and V.I.P Meetings Consultation and Research Each Corporate Member receives two hours every month free of charge consultation and preliminary marketing research by NABCC team. The total time is not cumulative and cannot exceed 24 hours per year. The cost of this service is included in the annual membership fee. Additional time that is necessary for completing the work is charged at net prices. Referrals and References If there is a potential for a business, we first refer potential customers to our corporate members

Programs and Projects Developed or Under Development Privilege Club

For seven consecutive years we are publishing the club card program called Privilege Club. The Privilege Club Card program is a loyalty type program, and is a marketing tool by which merchants are building incremental

стр. 23 от 26 InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000 Tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320 e-mail: [email protected], http://www.investbg.government.bg issue 8 (11) / August 2014 InvestBulgaria Agency

sales from their best customers while giving new or infrequent customers a new reason to buy their products or shop at their stores. The idea of the program is to create a virtual shopping mall offering diversified brands of products or services providing direct discount from the tag price by the merchant participating into the program. Instead of making the customer caring a dozen discount or loyalty type cards, we are offering a one card combining many products and/or services under one roof. See more at: www.theprivilegeclub.org

Bulgaria-Serbia IPA Cross Border Programme INFORMATION BRIDGE (the cross-border cooperation program between regional business leaders in Bulgaria and the special economic zone in Nis and Pirot)

North American-Bulgarian Chamber of Commerce, Branch Sofia has signed a contract with the Ministry of Regional Development for a project financed by EC for cross border cooperation with the Republic of Serbia The project aims to achieve a very high cross border impact between the regional business community in Sofia, and Montana regions and the special economic zone (SEZ) in Nis and Pirot with focus on assisting the development of small and medium enterprises (SMEs) operating within this area. A network of Business Support Initiatives (BSIs) will be created and its operation supported by NABCC, on the Bulgarian side and Regional Development Agency Jug (South), on the Serbian side. The BSI will include entrepreneurship support and will provide a wide range of information sessions, financial, marketing, technical and administrative consultations to SMEs and start-up enterprises. Services to be provided by the BSIs will include information about the legal, regulatory and administrative frameowrk of the Nis duty free zone, along with marketing and strategic planning support for its mid term goals, and information about the investment climate, EU regulations and financial opportunities in Bulgaria. The BSI will also include technological support by the construction of information portals, production of promotional materials and business forums for displaying the advantages of the aforementioned regions. More about our organization you can find on our website at: www.nabcc.org

стр. 24 от 26 InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000 Tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320 e-mail: [email protected], http://www.investbg.government.bg issue 8 (11) / August 2014 InvestBulgaria Agency

MACROECONOMIC INDICATORS

Foreign Direct Investments in Bulgaria EUR mln Net cash flow - annual data Years 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 980 1850.5 2735.9 3152.1 6221.6 9051.8 6727.8 2436.9 1151.2 1330.2 1070.3 1092.4 Net cash flow – quarterly data 2013 2013'Q3 2013'Q4 2014'Q1 2014'Q2 Quarters 454.8 1.2 112.0 378.8 Net cash flow – monthly data 2013 2014 VII VIII IX X XI XII I II III IV V VI Months 298.2 119.4 298.2 119.4 298.2 119.4 298.2 119.4 298.2 119.4 298.2 119.4 * Data is updated (as to 25.08.2014 г.) Source: BNB

Main economic indicators EU – Bulgaria - Canada European Union Bulgaria Canada GDP (purchasing power parity) $ mln 15 850 000 [2013 est.] 104 600 [2013 est.] 1 518 000 [2013 est.] GDP - real growth rate % 0.1 [2013 est.] 0.5 [2013 est.] 1.6 [2013 est.] GDP - per capita (PPP) $ thousand 34.5 [2013 est.] 14.4 [2013 est.] 43.1 [2013 est.] Industrial production growth rate % -0.3 [2013 est.] 1 [2013 est.] 1.4 [2013 est.] Labor force Mln 228.6 [2013 est.] 2.551 [2013 est.] 19.08 [2013 est.] Unemployment rate % 10.5 [2013 est.] 11.6 [2013 est.] 7.1 [2013 est.] Budget surplus (+) or deficit (-) % of GDP n.d. -2.4 [2013 est.] -2.9 [2013 est.] Public debt % of GDP n.d. 18.4 [2013 est.] 86.3 [2013 est.] Inflation rate (consumer prices) % 1.5 [2013 est.] 1.5 [2013 est.] 1.0 [2013 est.] Current account balance $ mln -34 490 [2011 est.] -182.3 [2013 est.] -59 500 [2013 est.] Export $ mln 2 173 000 [2012 est.] 27 900 [2013 est.] 458 700 [2013 est.] Import $ mln 2 312 000 [2012 est.] 32 880 [2013 est.] 471 000 [2013 est.] Reserves of foreign exchange and gold $ mln 863 800 [12m 2011] 20 690 [12m 2013] 68 550 [12m 2012] Debt - external $ mln 15 950 000 [12m 2012] 37 850 [12m 2013] 1 331 [12m 2012] Stock of direct foreign investment - at home $ mln n.d. 54 210 [12m 2013] 1 038 000 [12m 2013] Stock of direct foreign investment - abroad $ mln n.d. 1 939 [12m 2013] 1 047 000 [12m 2013] Source: CIA /www.cia.gov

стр. 25 от 26 InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000 Tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320 e-mail: [email protected], http://www.investbg.government.bg issue 8 (11) / August 2014 InvestBulgaria Agency

UPCOMING EVENTS

11 Amsterdam, The Investment Agenda: Amsterdam September Holland Strategic risk taking in the recovery 2014

26 Sofia, Sustainability Forum Sofia 2014 September Hilton Hotel, 2014 Bulgaria

30 Johannesburg, The Investment Agenda: Johannesburg September Republic of South Strategic Risk Taking in the Recovery 2014 Africa The Michelangelo Hotel, Johannesburg

8 Crowne Plaza European Energy 2014 October Brussels - Le Palace, Securing Europe's energy future 2014 Brussels, Belgium

13-16 Geneva, The World Investment Forum 2014 October Switzerland 2014

16-17 London, Seventh Annual European Investment October United Kingdom Conference 2014 A Fresh Perspective: Checking Assumptions, Challenging Mindsets The Guoman Tower Hotel

стр. 26 от 26 InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000 Tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320 e-mail: [email protected], http://www.investbg.government.bg