Two Years of Massive Economic Growth Year 2006: Record Balance of Trade Surplus Czech Companies Invest Millions in Research and Development Ústí nad Labem Region 05-06 2007 CONTENTS Ministry of Industry and Trade I INTRODUCTION CZECH BUSINESS Question of the Month for Martin Říman, Minister of Industry and Trade .............4 AND TRADE I ECONOMIC POLICY Economic Bi-monthly Magazine with Two Years of Massive Economic Growth ................................................................5 a Supplement is Designed for Foreign Czech "Autoland": Is Car Manufacture the Only Segment Driving Partners, Interested in Cooperation the Economy Forward?...........................................................................................7 with the Czech Republic Year 2006: Record Balance of Trade Surplus...........................................................9 Rapid Salary Growth Continues............................................................................11 Issued by: PP AGENCY s.r.o. I CZECH TOP Myslíkova 25, 110 00 Praha 1, Czech Republic Kunín Dairy Send Yoghurt to the Italians..............................................................12 PP Agency Škoda Electric has Secured Significant Orders.......................................................12 Company with the ISO 9001 certified quality Hydroprojekt CZ Triumphs in the Russian Federation and Beyond........................13 management system for publishing services EDITORIAL BOARD: I REGION Martin Tlapa (Chairman), Ivan Angelis, NUTS 3 – Ústí nad Labem Region ................................................................14 – 31 Zdena Balcerová, Jiří Eibel, Zbyněk Frolík, Růžena Hejná, Alžběta Honsová, Josef Jílek, I INVESTMENT Ivan Jukl, Zdeněk Kočárek, Marie Košťálová, Marie Pavlů, Pavla Podskalská, Josef Postránecký, Czech Companies Invest Millions in Research and Development..........................32 Libor Rouček, Jiřina Semanová, Jarmila Škvrnová 300 Schools Participating in a Unique Project.......................................................33 MANAGING EDITOR: I SERVICES Jana Vápeníková Moravian Golf Pearl ..............................................................................................34 EDITORS: Jaroslava Bradová, Naďa Vávrová I PRESENTATION OF FIRMS Český porcelán, akciová společnost, REGULAR COLLABORATORS: Porcelánová manufaktura Royal Dux Bohemia, a.s. ................................................2 Eva Tomášková České filtry, s.r.o....................................................................................................21 TRANSLATION: LUTOS a.s. ............................................................................................................29 Vlasta Benešová, Alena Kenclová, BETONSTAV TEPLICE a.s. .....................................................................................31 Robert Krátky, Dagmar Šímová, GOLF BRNO a.s.....................................................................................................34 Halka Varhaníková Severočeské doly a.s. ............................................................................................35 PROSPER TRADING a.s..........................................................................................36 READ: Mathew Booth, Ivana Kadlecová, Tiskárna Horák s.r.o.; STAP a.s.; HOCO BAUELEMENTE, spol. s r.o.; KERAMOST, a.s. Katherine McCloghry, Zuzana Pavlíčková GRAPHIC DESIGN: Miloslav Bucvan, Helena Dvořáková, Lobby Česká republika DEADLINE: 23/3/2007 ADDRESS: Myslíkova 25, 110 00 Praha 1 Czech Republic Phone: +420 221 406 623, +420 221 406 626 Fax: +420 224 934 383 e-mail: [email protected] www.ppagency.cz www.mpo.cz/cbt Czech "Autoland": Is Car Manufacture the Only Ústí nad Labem Press run: 13.500 copies. Segment Driving the Economy Forward? The number of printed and sold copies of the journal is verified by auditor, HZ Praha, s.r.o., member of PANNELL KERR FORSTER Worldwide. It is not allowed to reproduce any part of the contents of this journal without prior I COVER PICTURE consent from the editor. Attitudes expressed by the authors of articles carried by CBT need not necessarily be consistent Did you know that the current holder of the Miss World title is a certain Miss Taťána with the standpoint of the Publisher. Kuchařová from the Czech Republic? This 19-year-old lady is the very first Czech to win the MK ČR E 6379, ISSN 1211-2208 „Podávání novinových zásilek povoleno title. Taťána Kuchařová was crowned the most beautiful woman in the world last year in Českou poštou, s. p., odštěpný závod Přeprava, Warsaw, Poland. The young Czech entered the competition with a clear goal. "I have č. j. 3468/95, ze dne 24/10/1995“ nothing to lose, I can but gain. I promise to put up a fight", the beauty declared before the Miss World competition. During the contest, Taťána Kuchařová told the jury she would like to become a model after concluding her university studies and that her life motto was "Always be an optimist!". 3 | INTRODUCTION Question of the Month for Martin Říman, Minister of Industry and Trade I parameters are very stringent. This very As akin as in a number of other system is to be replaced by the green card countries, the Czech labour market project next year. faces an acute lack of skilled workers in certain professions. How will the I Czech Republic tackle this relatively Which changes does the green card serious problem? Are you planning to proposal introduce? apply an instrument similar to that common in the majority of European The proposal foresees a division of the countries, i.e. the introduction of so- project into two main phases. The first called "green cards"? That is, the phase will involve the preferential granting of permanent residence treatment of highly qualified university- permits earlier than is usually the educated applicants. The second phase norm to foreigners whose profession will involve attracting skilled workmen, is in "short supply" on the domestic whom there is a lack of on the domestic labour market? market. These include for instance tool- makers, locksmiths, welders, workmen I am certainly an advocate of green cards. skilled in metal machining and machine The Ministry of Industry and Trade has setters. We have discovered that an already drafted a preliminary proposal on absence of these trades is felt both by how to administer the granting of green foreign investors and small and medium cards. This proposal has been the subject Czech enterprises. These worker of recent discussions among ministers with professions will be dealt with during the economic portfolios and I would welcome second phase of the project. First we must if the first green cards were granted at the open the door to university graduates – beginning of 2008. At present, we are e.g. IT experts, designers, doctors, working intensively to implement the university teachers, and scientists. project together with the Ministry of Labour and Social Affairs, the Ministry of I Foreign Affairs, and the Ministry of the Will the introduction of green cards Interior. The project also has the support of for foreigners mean any changes to the business sphere headed by the Czech legislation? Economic Chamber and the Confederation of Industry of the Czech Republic. It certainly will. Changes to the Act on Foreigners’ Stay and Residence in the I Czech Republic will need to be adopted as The Ministry of Labour and Social will further modifications to the Affairs announced one such trial Employment Act. Such changes will in project entitled "Selection of particular include a faster processing of MORE AT: Qualified Foreign Workers" back in applications for work permits and long- 2003. How did this pilot project run? term residence permits as well as the www.mpo.cz possibility to apply for permanent During the last four years up until today residence earlies than is the norm at www.czechtrade.cz fewer than 600 persons have been present. We also plan to reduce the selected to take part in this programme. administrative burden on employers and www.ceb.cz That is indeed very few. A mere 30 persons foreigners applying for jobs. Although the adoption of such changes to legislation is www.egap.cz joined the programme via the representative offices of the Czech not a straightforward matter, I do not www.export.cz Republic abroad, the rest were already consider it unrealistic for changes resident in the Czech Republic upon concerning university-educated workers to joining. The system lacks flexibility and its come into force as early as 1 January 2008. | 4 CZECH BUSINESS AND TRADE Two Years of Massive Economic Growth The Czech economy boasts two I ECONOMIC GROWTH I CONSUMPTION AND years of massive economic PULLED BY THE INVESTMENT ARE PICKING UP AUTOMOBILE INDUSTRY SPEED growth (+6.1 %), which even Most responsible for the fast growth of the Demand indicators markedly reflect the surmounted the 1995 record. Czech economy in recent years has been acceleration of household consumption. With more than six-percent the manufacturing industry, which benefits Last year, household consumption grew by growth of GDP it ranks the from the rapid and successful development 4.6 % in comparison with 2005, which is of manufacturing, mainly export-oriented the fastest growth for the past three years. Czech Republic among the activities. The manufacturing industry The reason for greater spending seems to fastest-growing economies alone accounted for approximately two- be the excellent economic situation, which in the framework of the entire thirds of last year’s economic growth,