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For Potential Foreign Investors & Business Partners 925<'1/'-;/*+ For Potential Foreign Investors & Business Partners 2009 ISBN 978-80-970068-6-0 Sponsored by The American Chamber of Commerce in the Slovak Republic © 2009, Published by ECENTER The American Chamber of Commerce in the Slovak Republic Founded in 1993, the American Chamber of Commerce (AmCham) in Bratislava is an indepen- dent and self-supported organization, relying entirely on contributions from its member compa- nies. Fifteen years after, this membership has grown to more than 300 international and Slovak companies, including a majority of the largest and most important ¿ rms in Slovakia. IMPORTANT ECONOMIC FIGURES 15 Years in Slovakia 20 Percentage of Slovakia´s GDP represented by AmCham members 320 Number of AmCham members* 130,000 Number of employees in AmCham membership 13,000,000,000 Total annual turnover in EUR represented by AmCham members * From the total of AmCham members, approximately 1/3 are subsidiaries of US companies, 1/3 are Slovak com- panies and 1/3 are multinational companies The American Chamber of Commerce in Slovakia Come join us! Crowne Plaza, Hodžovo nám. 2, 811 06 Bratislava Tel: (421-2) 5464 0534, Fax: (421-2) 5464 0535 We´re making E-mail: of¿ [email protected], Web: www.amcham.sk KOŠICE OFFICE: Hlavná 6, 040 01 Košice things happen! Tel./Fax: (421-55) 720 5218, E-mail: [email protected] amchamA52008.indd 1 26.9.2008 10:47:30 We provide help with research, consulting, coaching, management, implementation, and operations. ECENTER – helps its clients to excel Think, Work & Excel with us! ECENTER HELPS your business enter the Slovak market. Business intelligence ECENTER IS Bratislava based management As a young, aggressive and entrepreneurial Market research and analysis consulting company focusing on the Slovak ECENTER OFFERS: Acquisitions assistance market. Though our approach is simple, we Faster response and turnover time Target identifi cation take on complex issues. Our clients range from Higher quality of work Due diligence blue chip multinationals seeking to invest, Greater fl exibility Identifying sources of fi nancing expand or improve their operations in Slovakia Greater reliability to entrepreneurial domestic clients aiming to Courteous personalized service ECENTER ENHANCES performance of your existing boost their bottom line through adoption of Competitive prices operations. western management techniques. Organizational /process assessment and evaluation SWOT analysis In-depth Competitive Forces analysis Gap analysis Mid-term and Short-term planning Long-term strategic planning ECENTER ASSISTS with implementation and operations Oversight of complex projects requiring close “in- country” monitoring and control Temporary executive management services Executive recruitment Formulating and executing corporate turnaround strategies. ECENTER, s.r.o., Grosslingova 17, 811 09 Bratislava, Tel.: +(421) 2 5273.1124, Fax: +(421) 2 5273.1211, [email protected] In my discussions with U.S. businesses in Slo- As Slovakia moves up the economic ladder, homegrown entrepreneurs will vakia, they all say that the welcome business develop, as it reforms secondary and university education giving students environment, such as the tax laws and flexible the necessary technological and managerial skills that companies are in- labor force are what make Slovakia attractive. creasingly demanding. Those skills will be especially needed as Slovakia Based on a recent survey by the Embassy, we moves to higher value-added industries. found that Slovakia has attracted some impres- With a tightening labor market in the west and the government making prog- sive investments. U.S. companies have in- ress in developing the infrastructure to connect Kosice to Bratislava, I be- vested more than $4 billion in the country and lieve that the best new investment opportunities are now in eastern Slovakia. employ more than 50,000 Slovak citizens. Investors can benefit from the successful experience of those already oper- Entrepreneurs should find Slovakia attractive ating in the east, such as U.S. Steel, Whirlpool, Getrag Ford and Molex. as a place to do business. Slovakia has main- tained a business environment that remains welcoming to both current in- Vincent Obsitnik vestors and companies considering opportunities in the country for the first time. A range of policies in recent years have helped bolster the labor market U. S. Ambassador to Slovakia and to protect intellectual property. We will continue to advocate for policies that encourage companies to expand U.S.-Slovak economic ties. Britain and Slovakia have many things in ment provides increased competition, greater innovation, access to common. We in the UK have always seen new technologies, increased productivity and reduced prices for con- ourselves as a springboard for global growth. sumers. So it is important to remain committed to maintaining liberal We’re the No 1 investment location in Europe, global investment conditions, to improve standards of governance and and 65% of Fortune Global 500 companies are transparency, and to promote fair investment frameworks. represented in Britain. Likewise, Slovakia has There is also a need to accelerate recent improvements to employ- shown that it is a strategically-located market, ment rates among all groups, particularly the most vulnerable and open to new investors, know-how and ideas. marginalised. Increasing labour market flexibility, reducing long term Growing fast, with expectations of continuing unemployment and youth unemployment while raising further the em- high economic growth, coupled with member- ployment rate of older workers should be priorities. Intensifying in- ship of the Eurozone as from January 2009, ternational competition increases the demand for higher-level skills, Slovakia is one of the most exciting markets in Europe. At the British so the right education and skills policies, including a commitment to Embassy, we see it as our job to help British business make the most lifelong learning and job-related training, are a crucial part of the re- of the opportunities to be found here. sponse to increasing global competition. Europe as whole needs to To help realise this potential, Slovakia needs to make itself better known invest more in Research and Development. both to tourists and to the global business community. The favourable Against this background, The Slovakia Guide plays an important role in conditions for doing business here need to be complemented by a drawing the attention of the global business community to Slovakia’s transport infrastructure that presses home these advantages. Britain strengths and opportunities. So I very much welcome the appearance and Slovakia are also, of course, partners in Europe. The European of this edition of the Guide. Union’s single market has delivered jobs, growth and prosperity for Eu- rope’s citizens and businesses. The European economy has benefited Michael Roberts significantly from its openness to foreign investment. Inward invest- British Ambassador to Slovakia Table of Contents Central & Eastern Europe – Better than Asia .....................4 Education .........................................................................12 VAST Business Opportunities in Slovakia......... ....................5 SLOVAK-on Valley: Opportunities in IT ............................13 Slovakia – Consistently a Strong Performer ......................6 HealthCare .......................................................................13 Slovakia – Joins the West and Remains in the Spotlight ...6 A Low Risk, Easy to Setup, and Inexpensive Test Market 13 SPECIFIC Business Opportunities in Slovakia ...................7 Booming Real Estate Development & Construction In General: High-end replaces low-end in the West; more Industries .........................................................................13 basic production will move eastwards (the more basic the VAST Opportunities Still EXIST ........................................14 farther east) .......................................................................7 Amazing Financial Investment Opportunities .....................7 A manufacturing & Assembly Powerhouse ........................8 Appendix Slovakia - Easy, Smooth, and Cost Effective Logistics .......9 Map: Europe in numbers.............................................16-17 Excellent location for Pan-European Headqua Slovakia’s Pay structure .............................................18-19 ters (or at least Central European Headquar ters) .............9 Dashboard: Slovakia’s Automotive Industry ...............20-22 Research & Development (R&D) Heaven ........................10 Dashboard: Slovakia’s RealEstate Industry ................23-26 Vast Tourism Opportunities ..............................................11 Dashboard: Slovakia’s IT Industry ..............................27-30 3 Central & Eastern Europe – Better than Asia Rapid growth, significantly cheaper, abundant, and highly skilled labor, and close physical and cultural proximity to the Western markets are pushing Western Europe to turn more frequently to its own backyard. “American • Close geographical and cultural proximity to Western markets companies are cashing in as well. In recent years, IBM, Dell and Morgan • Multilingual, skilled, available and low cost labor force (1/4 of Stanley, among others, have outsourced services to Eastern Europe, or the cost of Western Europe) helped other American companies do so.”1 • Room for growth within market Given the substantial cost benefits, Asia is the
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