Investment potential of Minsk city Minsk's population is mostly active in the industry (24%), Out of the total workforce of the city of Minsk, 38% has commerce and catering (20%), construction (11%). higher education, every third has either a vocational or specialised secondary education. Employment by sectors of economy, 2010 WORKFORCE QUALIFICATIONS, 2010 Workforce, total 890 745 20% 24% workforce with the following education: higher 341 339 4% 0,3% vocational 170 537 7% specialised secondary 131 231 industry 20% 6% general secondary 232 690 11% agriculture 8% Source: National Statistics Committee of the Republic of Belarus, 2012 commerce and catering education 2. Region’s economy 1. Labour resources construction The city's specialisation in the country's economy is Quantity of population active in sectors of economy, 2010 public health service, physical training, determined by such sectors as industry, construction, science and science services. The enterprises of the city of Minsk (thousand persons) and public welfare transportation produce over a fifth of the country's industrial products. Total active 1 086,3 The city specialises in manufacturing trucks, tractors, buses, including: public utilities trolleybuses, motorcycles, bicycles, transformers, household Industry 259,8 refrigerators and deep-freeze refrigerators, ball and roller other sectors bearings, wool fabrics. Agriculture 3,2 Commerce and catering 216,7 The official unemployment level in Minsk is 0.3% of the Education 90,4 economically active population, which is 0.3% lower than in Gross regional product (GRP), 2011 the country in general. The salary level is almost 30% higher Construction 119,8 per capita than on average in the country. Total (billion Public health service, physical training, and (million 63,6 rubles) public welfare rubles) Average salary in Q1 of Transportation 73,1 Unemployment level, 2012 (thousand rubles) Minsk city 67 975,7 47,53 Communications 15,4 2011 (%) 5000 GRP share in GDP of Forestry 1,0 24,8% 4000 Belarus Science and science services 24,8 Source: National Statistics Committee 3000 Real GRP growth rate 114,3% of the Republic of Belarus, 2012 2000 0,6 Source: National Statistics Committee 1000 3868,6 0,3 3006,1 of the Republic of Belarus, 2012 0 Republic of Minsk city Republic of Minsk city Belarus Belarus tel./fax.: +375 17 2008874 www.investinbelarus.by e-mail: [email protected] Investment potential of Minsk city In the near future advance development of knowledge- Minsk Electrotechnical Plant named after V. I. Kozlov PRUE, Goods made in Minsk are exported to over 100 countries of consumptive productions, in the first place, of electric JCSC Beltelecabel, Holding Management Company the world. The main consumers of Minsk's goods are located equipment, electronic and optical equipment, expansion of BELKOMMUNMASH OJSC; in Russia, the UK, Baltic countries, Germany, Ukraine, Italy. the range of high-end products in other economic sectors are • electrical and instrument-making industry (Minsk Watch Imports mostly (almost 49%) consist of raw materials, provided for. Plant OJSC, Household Appliances and Consumer Electronics materials, components; of the equipment for enterprises Special attention will be paid to the introduction of new- Horizont PPUE, Atlant CJSC, Integral CJSC, Belomo CJSC); modernisation (30%). As to the manufacturing process, generation technologies, including nanotechnologies and • wood-processing (DLC Bellesizdeliye, Minskdrev OJSC); almost all the exporters of the city require modernisation, automation devices, aerospace technologies and ICTs based • light (Minsk Porcelain Factory OJSC, Kamvol OJSC, Milavitsa technologies upgrade, and expansion of target markets. on them. As to machines, equipment, and vehicles, it is JCJSC, Elema OJSC ); planned to manufacture competitive equipment (Euro 4 and • chemical (Belplast Plant OJSC, Belkosmex PC LLC); Euro 5 vehicles), modernise production at Minsk Vehicle • production of construction materials (Keramin OJSC, Minsk 4. Foreign investment Factory and Minsk Motor Factory open joint-stock group of silicate products OJSC ); companies. • food (Minsk Kristall RUE, Minsk Grape Wines Factory CJSC, The location of foreign investment is characteristically Kommunarka OJSC, Confectionary «Slodych» OJSC, Minsk concentrated in Minsk in the recent 5 years. The city leads as Margarine Plant OJSC, Foodstuffs LLC, Krinitsa OJSC , Yeast to the number of the organisations set up with foreign The gross regional product of the city of Minsk is higher than Plant OJSC ). that of any of the regions and amounts to a quarter of the investment (over 3.5 thousand joint ventures and foreign country's GDP. companies have been registered). The principal investor countries of the city's economy are Russia, Switzerland, Virgin 3. Foreign trade Weight of regions' and Minsk's GRP in GDP, Islands, Austria, Netherlands, the UK, the USA, Germany. 2011 The priority of the investment policy is to attract investment Minsk is the largest exporter ensuring 40% of the foreign- resources to the manufacturing and their concentration on Brest region trade turnover of the Republic of Belarus. Minsk's implementation of investment projects with high export and 14,7% 7,3% enterprises manufacture over 1/5 of the volume of import-substituting knowledge-consumptive and resource- Vitebsk region 9,0% industrial products of Belarus over 60% of which is saving technologies orientation. 24,8% Gomel region exported. The main export positions are tractors, trucks, 8,6% trailers and semitrailers, metal-processing machines, Grodno region 7,7% 11,2% bearings, paving blocks. FOREIGN DIRECT INVESTMENT, net, 2011 (thousand US Minsk city dollars) Minsk region Volume of foreign trade in products and services, 2011 Republic of Belarus 3 973 953,9 Mogilev region (million US dollars) Region Minsk city Republic of Belarus Minsk city 3 505 787,0 Largest enterprises by industries: Turnover 35 608,5 86 041,1 Source: National Statistics Committee • engineering and metal processing (Minsk Tractor Works of the Republic of Belarus, 2012 RUE, Minsk Automobile Plant OJSC, Minsk Aircraft Overhaul Exports 18 437,4 40 294,0 Plant OJSC, Minsk Motor Plant OJSC, Minsk Instrument Imports 17 171,1 45 747,1 Making Plant OJSC, Minsk Automobile Kitting Plant JOJSC, In the city of Minsk a High Technologies Park functions to Balance 1 266,3 -5 453,1 Minsk Plant Termoplast, Minsk Bearing Plant OJSC, Amkodor develop software, ICTs and other technologies aimed at OJSC, Source: National Statistics Committee increasing competitiveness of the national economy, raising of the Republic of Belarus, 2012 domestic and foreign investment for the sector. tel./fax.: +375 17 2008874 www.investinbelarus.by e-mail: [email protected] Investment potential of Minsk city To stimulate business in the city of Minsk, a Centre of • Polytechnik Research and Technological Park of the Around 80% of all the expenses for research and Entrepreneurship Support as well as two Small Enterprises Belarusian National Technical University Innovation development is in Minsk. Incubators have been established. Minsk Free Economic Zone Republican Unitary Company; operates on preferential terms. • National Infopark Research and Technology Association; The principal activities of Minsk FEZ are manufacturing, • Arvit-Avto JLLC Research and Technology Park; Expenses for R&D in regions and Minsk, 2010 services (transport and logistics, sports and physical training, • Research and Technology Park Foundation; culture and entertainment, financial, information), Minsk City Technopark LLC. • Gomel region infrastructure development. 8% Minsk region The city relates the prospects of its economy to innovation 6% development and information resources mobilisation. EDUCATION AND SCIENCE Vitebsk No. of higher educational institutions 31 region 2% 5. Transport and communications Mogilev No. of R&D organisations 303 region 2% Minsk's share in railway passenger transportation is around Grodno 30%, in motorway goods transportation is 20% in exports and region Personnel engaged in R&D 15 182 is 40% in imports. The city is served by two airports, Minsk 1 Minsk city 1% and Minsk National Airport, to which 14 airlines perform 80% Brest region flights. Expenses for R&D (million rubles) 856 371 1% Minsk is the largest railway centre of Belarus. Trains bound No. of organisations active in for Russia, Ukraine, Poland, Latvia, Lithuania, Germany, 83 France, the Czech Republic depart from it. innovations The operational length of the two lines of Minsk Source: National Statistics Committee Underground is 30.3 km with 25 stations. of the Republic of Belarus, 2012 Minsk leads among the regions as to the number of 6. Education and science Among the total expenses for R&D in Minsk 60% is for organisations engaged in research and development. development. Distribution of R&D organisations by regions Minsk is the centre of research and scientific and technical Distribution of expenses for R&D, million and Minsk, 2010 potential of Belarus. There the National Academy of Sciences rubles of Belarus is located, the National Library of Belarus, a repository of an all-purpose collection which amounts to 9 5% million copies of different information media in all branches 5% Minsk city of knowledge, functions. Development 513 365 Gomel region 31 educational institutions train specialists with higher 6% education, 43 educational establishments train those with Vitebsk region specialised secondary education. 6% Applied research 194 537 The following institutions function in the region: Brest region • Minsk City Centre of Engineering Services Municipal Unitary 6% Fundamental Minsk region 148 469 Company; research 7% 65% Mogilev region Grodno region 0 200 000 400 000 600 000 tel./fax.: +375 17 2008874 www.investinbelarus.by e-mail: [email protected] .