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Slovakia – Best Bet for Your Business Slovak - Portugese Business Forum

Slovakia – Best Bet for Your Business Slovak - Portugese Business Forum. Bratislava, 8 July 2009. COUNTRY PROFILE. Strategic location with great export potential. MARKET OF 300 MILLION IN 1000KM. Area (km 2 ): 49,035 Population: 5,379,000 Capital: Bratislava

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Slovakia – Best Bet for Your Business Slovak - Portugese Business Forum

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  1. Slovakia – Best Bet for Your Business Slovak - Portugese Business Forum Bratislava, 8 July 2009

  2. COUNTRY PROFILE Strategic location with great export potential MARKET OF 300 MILLION IN 1000KM Area (km2):49,035 Population:5,379,000 Capital: Bratislava Member ofOECD, WTO, NATO, EU, Schengenborder-free area, Euro currency zone

  3. 10,4% 6,8 4,3 productivity real wages GDP Growing 2007 MACROECONOMIC OVERVIEW Basic macroeconomic indicators 2008 Real GDP growth 6,4% Labour productivity growth 5,8 % Real wages growth 3,3% HICP Inflation 3,9 % Unemployment 9,6% Average monthly salary (EUR) 723 Sovereign credit rating (Long-term Foreign Currency Debt) A1 positive outlook A+ stable outlook A positive outlook

  4. € CURRENCY EXCHANGE-RATE DEVELOPMENT SLOVAKIA JOINED THE EURO ZONE 1st JANUARY 2009 THE EXCHANGE RATE FOR CONVERSIONSETAT 30,126 SKK/EUR • EURO IMPLEMENTATION IMPACT: • Limitation of Foreign Exchange Risk • Lowering Transaction Costs • Growth in Foreign Trade • Increase financial stability

  5. STABILITY IN THE CRISIS Source: European Central Bank, 2008

  6. PAYING TAXES - Simple and Fair 19% Flat Tax Rate Corporae & Personal Income Tax Value Added Tax Dividend tax Inheritance and Gift Tax Real Estate Transfer Tax Repatriation of profits:100% 19% 0%

  7. LABOUR MARKET • Weekly working time 40 hrs (excluding 30 min. break) • + 8 hrs overtime per week • 3 months probation period • 150 of overtime per year can be ordered + 250 hrs agreed with employee • No obligation to pay bonuses (25%) for 150 hrs of overtime per year • Minimum salary:296 EUR / month(2008) • Average salary : 723 EUR / month (2008) • Annual leave of 20 days (25 days after 15 years of employment) • Bonuses for overtime (25%) and for working on bank holidays (50%) Source: Statistical Office of the Slovak Republic, 2009

  8. DOING BUSINESS 2009 1st rank indicates the easiest conditions for doing business Methodology (conditions included) Starting a business Employing workers Paying taxes Enforcing contracts Protecting investors Closing business.... Source: World Bank Group – Doing Business Report 2008

  9. Source: Slovak National Bank , 2007 FDI is growing steadily

  10. Minimum monthly wage Slovakia • 269 EUR / month (2008) • Average monthly salary Slovakia • 723 EUR / month (average 2008) • Soc. security covered by employer • 35,2 % • Soc. security covered by employee • 13,4 % • Excl. social security contributions covered by employer Poland 843 EUR Slovakia Czech rep. 942 EUR 723EUR 792 EUR Hungary Source: Statistical Office of Slovak Republic, ČSOB bank WAGESand SOCIAL CONTRIBUTIONS

  11. Medical and farmaceutical sciences:6,77% Study branch in % (2007/08): Natural sciences:6,22% Technical sciences 28,54% NETWORK OF UNIVERSITIES East Slovakia university region West Slovakia university region Central Slovakia university region Bratislava university region Number of universities:33 Total Number of Students in 08/09: 208 072 Graduates in 08/09: 58 447

  12. ROAD NETWORK and INDUSTRIAL PARKS PLAN 2012 to connect Bratislava and Kośice Large selection of available land in more then 50 industrial parks

  13. AIRPORT INFRASTRUCTURE Žilina Prague Poprad Bratislava London Bologna Basel Košice Vienna Prague Bratislava Manchester Poprad Piešťany Sliač Bratislava Vienna (A) All major European cities All major European & World cities Note: Flight destinations as of January 2009

  14. AUTOMOTIVE SECTOR IN SLOVAKIA 1991 – 2000: 1 220 MIL. EUR Planned:350 000 cars/year Volkswagen 2003 – 2009: 1 100 MIL. EUR Planned:300 000 cars/year 2004 – 2009: 1 250MIL. EUR Planned:300 000 cars/year

  15. SLOVAK SUCCESS K1 ATTACK

  16. ELECTRONIC SECTOR IN SLOVAKIA Expansion of capacity Assembly of Bravia models for the European market to be doubled in 2008 to 4mil. Expansion of activities Production of LCD 10mil pcs. Assembly of LCD Logistic center Europe service center

  17. Research and Development in SR Slovak R&D network of domestic and foreign companies Žilina region Poprad region Michalovce region The main R&D locations in Slovakia are: Košice region Košice region Banská Bystrica region Bratislava region

  18. Industry • Technological Centres • Shared Services Centres • Tourism State aid: eligible projects

  19. 1. 4. 2009 – 31. 12. 2010 Industry Tourism Minumum investment amount

  20. Other conditions • Industry: • Procurement of machinery / technological equipmentin the amount of at least 40% of the total eligible costs • At least 50% of the minimum amount of investment to be covered by own equity • Compliance with the environmental protection rules • Technological centres: • At least 50% of the minimum investment amount to be covered by own equity • University education – at least 60% of the employees • Shared service centres: • At least 50% of the minimum amount of investment to be covered by own equity • University education – at least 30% of the employees • Tourism: • Procurement of machinery / technological equipment in the amount of at least 20% of the total eligible costs • At least 50% of the minimum amount of investment to be covered by own equity • Compliance with the environmental protection rules

  21. Regional aid intensity Regional aid intensity is calculated as a percentage of the eligible costs:

  22. SLOVAKIA - Top reasons to remember 1.Central European hub and favourable geographic location 2.Political & economic stability, the highest economic growth in the region 3.19% flat tax rate and 0% dividend tax 4.Availability of highly skilled workforce 5.Low labour costs vs. high labour productivity 6.Euro as an official currency from 2009 7.Large selection of industrial land and offices available for purchase/lease 8.Harmonised investment incentives 9.Infrastructure that is growing steadily 10.High innovation potential for R&D projects

  23. SUCCESS STORIES – Hi-Tech, R&D

  24. FOREIGN TRADE SLOVAKIA - PORTUGAL

  25. Export commodities to Portugal Total value 170,9mil. € Electric machinery, TV-sets Motor cars and motor vehicles Iron and steel Machinery and equipment Wood and wooden products Artificial fibres Products from iron and steel Products from basic metals Shoes Plastics and plastic products Import commodities from Portugal Total value 80,5 mil. € Electric machinery, TV-sets Motor cars and motor vehicles Plastics and plastic products Products from basic metals India rubber and products Shoes Machinery and equipment Raw leather Pharmaceutical products Textile FOREIGN TRADE SLOVAKIA - PORTUGAL Statistics of the year 2008:

  26. SARIO-WHO WE ARE? is a government funded organisation under the direction of the Slovak Ministry of Economy. Slovak Investment and Trade Development Agency SARIO´s primary objective is: • to improve the standard of living of Slovak citizens • to increase the employment rate • - to reduce regional disparities

  27. Thank you for your attention Slovak Investment & Trade Development AgencyContact Information:Alexander ŠkurlaAssigned Head of International Cooperation Department Section of Foreign Tradetel.: +421 2 58260341cell: +421 910 828 311alexander.skurla@sario.sk www.sario.sk

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