In VOJVODINA, SERBIA BUSINESS OPPORTUNITIES
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BUSINESS OPPORTUNITIES in VOJVODINA, FREE TRADE SERBIA PRODUCTIVITY 2017 NEW TECHNOLOGY 2 Vojvodina is a northern Autonomous Province of the Republic of Serbia and it is sourrounded by the EU member states. The ideal geographic location of Vojvodina region, covering 21,506 square kilometers, and its abundancy in natural resources, provide excellent opportunities for agricultural production and export, production sites in various industries, logistics, and export processing zones. VOJVODINA SERBIA admin center capital Novi Sad Belgrade total area total area 21,506 km² 88,361 km² population population 1.89 mil 7.09 mil 26 nationalities 6 official languages terrain rich fertile plains time zone GMT + 1h 3 The closest airport is the Airport "Nikola Tesla" in Belgrade (70 km from Novi Sad). Vojvodina also has a well-developed system of roads and railways, as well as an extensive network of canals and navigable waterways. 4 If you want to unlock your export potential and gain a duty-free access to a number of markets, optimize operational costs, employ high-quality workforce at competitive rates, or relocate and remain close to your distribution centers, Vojvodina is the region that meets your needs. Top-notch investment locations suitable for a wide range of activities and tailored to your specific requirements - provide an excellent starting point to boost your investment to its fullest potential. growing your profits Increasing productivity Check out our video about Vojvodina boosting competitiveness 5 With its long industrial tradition, well VOJVODINA KEY EXPORT SECTORS: developed educational system, and 84.9% MANUFACTURING innovation stimulating environment - 15.3% Food & Beverage Vojvodina is considered to be the 8.6% Machines & Equipment 7.4% Chemicals engine of Serbia’s economic Year 7.4% Rubber & Plastic development. As a result of its 2015 6.3% Motor vehicles & trailers advanced hi-tech culture that VOJVODINA positively supports an aptitude for SERBIA quickly applying new technologies, GDP* Active population € 32,908 million 799,983 Vojvodina continues to significantly *according to ESA 2010 Export volume contribute to Serbian GDP creation. Currency: € 4.3 bn Serbian Dinar (RSD) Export growth unemployment 3.2% 18.5% Export markets Inflation y-o-y EU, CEFTA, Russia 1.5% Source: NBS, Vojvodina Chamber of Commerce, Government of Vojvodina 6 As the land of farmers, of electro motors Sever Subotica, iindustrialization in Vojvodina has Airplane factory Utva Pancevo, Factory first started within agricultural of armatures, Factory of dental production. equipment and many others. Next phase led to further Development of industrial production in development of industrial Vojvodina had a significant influence on capacities, which has improved the education in Vojvodina, thus production in Vojvodina in other encouraging development of human sectors as well, and enabled resources in certain industry sectors, construction of large number of which resulted in large number of factories. Those were mainly for technical schools (high schools and different kind of metal production, universities) that had a goal to form metal processing, and machine basis of professionals for industry of tools industry, and later on metal processing. construction of many foundries and Today, we have in Vojvodina more than metal casting foundries. 30 schools for machine industry, two Furthermore, Vojvodina was colleges and Machine department on worldwide known for its industry the University of Novi Sad. 3 UNIVERSITIES IN VOJVODINA: FACULTY OF TECHNICAL SCIENCE NOVI SAD – 12,500 students 1 state University - 14 Faculties 2 private Universities - 9 Faculties TECHNICAL FACULTY ZRENJANIN VOCATIONAL SECONDARY SCHOOLS Strong command of the Metal processing English language Car mechanics Electrotechnical – automatics Electrotechnical – vehicle Introduction of Electrotechnical A/C equipment dual education Car electrics 7 It is a rich plain, also known as the Granary of the Balkans, due to its abundant agricultural resources. Extraordinary plain landscape with a lot of greenery, big rivers (one of the largest in Europe – Danube), canals, lakes, spas, "Fruska Gora" National park and Deliblatska desert (sandy terrain) are only a part of Vojvodina treasure. Land – The geography and climate of Vojvodina are extremely conducive to agricultural production. The arable area consists of 1.78 million hectares of fertile agricultural land, 84% of the province’s territory, providing a solid resource base. Most of this territory is under intensive steppe-field agricultural production. The fields are generally very fertile chernozem and alluvial. Climate – Vojvodina enjoys a moderate continental climate. With extremely favorable edaphic and climate conditions, it is suitable for agricultural production. Water – The region is also rich in water. Major rivers, the Danube, Sava and Tisa, flow through Vojvodina. One of the largest hydrological nodes in Europe is situated in Vojvodina with about 1,400 km of navigable rivers and canals. Rural activity – Vojvodina is unique in the high percentage of its rural population actively involved in primary agricultural production. Approximately 1.6 million hectares of agricultural land in Vojvodina is being used by either familiy holdings or big companies, who are involved in agricultural production. 8 Premium food products for global markets No. 1 FDI sector: #companies, #investment volume, #workers High-quality resource base, optimal climate conditions Ample fertile soil: 1.5 mil ha – 84% of territory Strictly prohibited production and trade of GMO food Growth trend in the export volume share Gear up for greater profitability indicators Ideal geographic location for JIT/JIS production Close proximity to leading car manufacturers Access to top OEMs – 1,250 km radius Cutting-edge technical education Tradition in high-quality production standards Optimal ratio: labor cost – productivity - quality Growing demand for modern real estate development Residential, office, and retail development projects Industrial zones for manufacturing facilities Free Zones in Novi Sad, Subotica, Zrenjanin, Apatin Intermodal logistics hubs: water, rail, road infrastructure National parks, nature resorts, rivers, lakes, canal networks, hotels, spa centers, resorts, golf courses, marina complexes Hot spot for innovation-oriented ICT companies Reliable, high-quality, and cost effective alternative Sophisticated solutions at lower cost Easy access to best quality, experienced IT staff Continuous increase in a number of enrolled ICT students Vast international market expertise of local companies Strong capacity to adjust to new market demands Abundant potential in renewable energy sources Biomass, Wind power, Solar energy, Hydropower Easy access to raw material base 1.5 ha of arable land – full value chain coverage Ideal locations for wind power plants – average 6.27 m/s 20-30% higher insolation intensity than EU average Small hydropower plants potential – approx. 20.2 MW 9 By choosing to locate in Vojvodina, foreign investors enjoy the benefits of a highly competitive and advantageous tax system, essential for boosting company profits. In general, Serbia’s tax regime is highly conductive to doing business. Corporate profit tax is the lowest in the region, while VAT, salary tax and social insurance contributions are among the most competitive in Central and Eastern Europe. Serbia 15 % Serbia 10 % Serbia 20 % Romania 16 % Czech Republic 15 % Slovakia 20 % Hungary 19 % Romania 16 % Czech Republic 21 % Poland 19 % Hungary 15 % Poland 23 % Czech Republic 19 % Slovakia 19-25 % Romania 20 % Croatia 20 % Poland 18-32 % Croatia 25 % Slovakia 22 % Croatia 12-40 % Hungary 27 % 10 year corporate tax holiday Carrying forward of losses 5 years Annual Income tax deductions Duty-free import of equipment Salary tax base deduction 65-75% contributions reimbursment If a resident taxpayer earns profit by conducting business in another state and tax was paid on that Serbia and China profit in another state, it shall be granted a tax credit have signed a on its enterprise profit tax account determined in Double Taxation conformity with the provisions of this Corporate Profit Tax Law, amounting to the tax paid in another state. Treaty on avoiding At the moment 54 countries have signed the Double double taxation! Taxation Treaty with Serbia. 10 The region of Vojvodina is DUTY-FREE EXPORT uniquely positioned for global TO OVER 1 BILLION trading offering you a duty-free CONSUMER BASE access to over 1 billion consumer base! As the most developed part of Serbia, Vojvodina has unique economic and trade relations with the European Union and other European countries, which have enabled customs free export of all products bearing the Serbian origin label, excluding wine and baby beef. In addition, the EU FTA abolished customs duties and quantitative restrictions for import of Serbian textile products and guarantees to maintain the same policies in the future. Using this strategy the Serbian export of these products will become entirely free. Other Free Trade Agreements with: 11 Excellent ratio between labor quality, cost and productivity is particularly appealing to foreign investors seeking to achieve higher profitability through cost effectiveness, while not compromising their quality standards. In addition to the existing skilled and semiskilled labor pool in the manufacturing sector, the region of Vojvodina is characterized by the constant influx of newly qualified workers.