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Investment Guide for the South-East Planning Region

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Investment Guide for the South-East Planning Region 1 2 This document is prepared as part of the Project “Expanding the functions of the Centres for development of the planning regions towards the implementation of activities/services for support of the private sector” financed by the Ministry of Local Self- Government. Provisioned by: Centre for development of the South – East planning region Str.”Boro Djoni” No. 10 2400 Strumica Republic of Macedonia The e-investment guide was prepared by Knowledge Center, Skopje. Team: PhD, Andrijana Bogdanovska G. MBA, Branko Djurovic MA, Meglena Dimitrova Lector: Dejan Vasilevski 3 It is our pleasure to present you the Investment Guide for the South-East Region of Republic of Macedonia. Its main aim is to outline the opportunities for investment in the South-East Region, the national and regional policies, the measures for support of investments, and the characteristics of the existing industrial zones and investment locations available in the region. Geographically, the South-East Region includes the territory of the south-east part of Macedonia, or more precisely, the region of Strumica-Radovish and Gevgelija-Valandovo Valley, following the flow of the river Strumica and Vardar. The region borders Greece to the South and Bulgaria to the East, whereas on the North and West, it borders with the East and Vardar Planning Region. According to population projections for 2014, the region has 173.457 citizens, or 8,48% of the total national population. The Region covers a total area of 2.835 км2, or a 10, 9 % from the total area of the country. The population density is 61, 2 inhabitants per km2. In terms of administrative division, the South-East planning region consists of ten municipalities: Bogdanci, Bosilovo, Valandovo, Vasilevo, Gevgelija, Dojran, Konche, Novo Selo, Radovish, and the Municipality of Strumica. Developed with a purpose of providing all required information about the country, the region, and its municipalities, and enabling investors to make informative decisions, the Investment Guide consists of four sections. The first section provides an overview of Republic of Macedonia (geography, political system, and economy), outlying the advantages of the country 4 as a favourable location for your investment. The second part provides an overview of the business environment, containing detailed information on the legal and institutional frameworks for doing businesses in Republic of Macedonia. This section starts with the legal forms for establishing a business, followed by a description of the legal framework for doing business, taxation, management of the workforce, licences for state construction land, and real- estate, along with the opportunities for receiving a financial assistance for the investors. The third section contains general information about the South-East Region profiling its advantages and outlying the opportunities it offers as a favourable location for your investments. The fourth part presents each of the ten municipalities and their investment potentials, containing general data each Municipality, including a short information of the Municipality, its traffic connections, human capital, local economy, and a special emphasis on the industrial zones and investment locations. The Investment Guide is prepared as a part of the project “Expanding the functions of the Centres for development of the planning regions towards the implementation of activities/services for support of the private sector” financed by the Ministry of Local Self- Government. The project is implemented by the Centre for development of the South-East planning region of Republic of Macedonia. I firmly believe that this Guide will provide you with useful information and will help you make informative decisions for investing in some of the industrial zones and/or locations in the South-Eastern region of the Republic of Macedonia. Respectfully yours, Zulieta Gjurkova Director Centre for development of the South-East planning region 5 TABLE OF CONTENT ...................................................................................................................................... 6 LIST OF TABLES ............................................................................................................................................. 6 TABLE OF FIGURES ........................................................................................................................................ 7 DATA ABOUT CONTACTS OF MUNICIPALITIES IN SOUTH-EAST PLANNING REGION ................... 10 INVEST IN MACEDONIA .............................................................................................................................. 12 1 PROFILE OF REPUBLIC OF MACEDONIA ........................................................................................ 16 1.1 INTRODUCTION ....................................................................................................................... 16 1.2 POLITICAL SYSTEM AND GOVERNMENT........................................................................... 18 1.3 ECONOMY ................................................................................................................................ 19 2 DOING BUSINESS IN REPUBLIC OF MACEDONIA ......................................................................... 26 2.1 STARTING A BUSINESS .......................................................................................................... 26 2.2 LEGAL FRAMEWORK FOR DOING BUSINESS .................................................................... 30 2.3 TAXES ....................................................................................................................................... 31 2.4 TRADE AND TAXES / EXPENSES .......................................................................................... 35 2.5 WORKFORCE............................................................................................................................ 36 2.6 FINANCIAL SUPPORT FOR BUSINESSES ............................................................................. 38 3 SOUTH-EAST REGION ........................................................................................................................ 42 3.1 ADVANTAGES OF INVESTING IN THE SOUTH-EAST REGION ........................................ 42 3.2 GENERAL INFORMATION ABOUT THE SOUTH-EAST REGION ....................................... 42 3.3 GEOGRAPHICAL CHARACTERISTICS OF THE REGION .................................................... 45 3.4 ROAD NETWORK ..................................................................................................................... 47 3.6 POPULATION............................................................................................................................ 49 3.7 ECONOMY ................................................................................................................................ 54 3.8 UTILISATION OF COMPUTERS AND INTERNET ................................................................. 56 3.9 AGRICULTURE AND LIVESTOCK ......................................................................................... 57 3.10 QUALITY OF LIFE .................................................................................................................... 58 3.11 TOURISM .................................................................................................................................. 59 4 MUNICIPALITIES IN THE SOUTH EAST REGION............................................................................ 64 4.1 MUNICIPALITY BOGDANCI .................................................................................................. 66 4.2 MUNICIPALITY BOSILOVO.................................................................................................... 78 4.3 MUNICIPALITY VALANDOVO .............................................................................................. 88 4.4 MUNICIPALITY VASILEVO .................................................................................................... 98 4.5 MUNICIPALITY GEVGELIJA ................................................................................................ 108 4.6 MUNICIPALITY DOJRAN ...................................................................................................... 122 4.7 MUNICIPALITY KONCE ....................................................................................................... 132 4.8 MUNICIPALITY NOVO SELO .............................................................................................. 140 4.9 MUNICIPALITY RADOVIS ................................................................................................... 152 4.10 MUNICIPALITY STRUMICA ................................................................................................ 162 Table 1-1 Macro-economic figures.......................................................................................................... 19 Table 1.1. Macro-economic figures .................................................................................................................. 19 Table 3-1 General information for the municipalities in the South – Eastern Region ............................... 43 Table 3-2 Basic information for the South-Eastern Region ...................................................................... 44 Table 3-3 A – Roads (highways, express roads, arterial roads) ................................................................ 47 Table 3-4 Р1 – Regional
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