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KEY COUNTRY DATA

KEY COUNTRY DATA. Area: 88,361 km² Population: 9.5 million Capital: Belgrade (1.6 million) State form: Democratic republic President: Mr. Boris Tadic Prime Minister: Mr. Mirko Cvetkovic Currency: Serbian Dinar (RSD) GDP: $ 52.18 billion (2008) GDP pc: $7,054 (2008) Internet domain: .rs.

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KEY COUNTRY DATA

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  1. KEY COUNTRY DATA • Area: 88,361 km² • Population: 9.5 million • Capital: Belgrade (1.6 million) • State form: Democratic republic • President: Mr. Boris Tadic • Prime Minister: Mr. Mirko Cvetkovic • Currency: Serbian Dinar (RSD) • GDP: $52.18 billion (2008) • GDP pc: $7,054 (2008) • Internet domain: .rs

  2. KEY DRIVERS TO FDI IN SERBIA • Enhanced Investment Stability • Booming Market Potential • Quality Human Resources • Upgraded Transportation Infrastructure • Low Overhead Costs • Attractive Investment Incentives • Key Industries

  3. ENHANCED INVESTMENT STABILITY • National treatment of foreign companies • Free transfer of financial and other assets, including profits and dividends • No industry restrictions on foreign investment • Bilateral Investment Treaty with the USA in effect since 2001

  4. BOOMING MARKET POTENTIAL • Duty-free access to a 1 billion people market • A member of CEFTA in South East Europe • The only country outside the Commonwealth of Independent States with a Free Trade Agreement with Russia • A preferential trade regime with the EU and USA for most products and services • FTA with Belarus signed in April; the Agreement with Turkey to take effect as of 2010

  5. LOW OVERHEAD COSTS

  6. LOW OVERHEAD COSTS • The average salary–50% of the level in CEE countries • Tax burden totaling about 65% of the net salary; reductions possible through tax incentives • The 8:1 salary ratio by specific industries; 4:1 ratio by municipalities

  7. Readily available workforce

  8. ATTRACTIVE INVESTMENT INCENTIVES • Financial incentives: • Automotive, Electronics, IT: up to 25% of the total investment • The minimum investment amount–€200 million and 1,000 employees • Production: from €2,000 up to €5,000 per new job created • The minimum investment amount–between €1 million and €3 million and 50 employees • Services: from €2,000 up to €10,000 per new job created • The minimum investment amount–€0.5 million and 10 employees • R & D: from €5,000 up to €10,000 per new job created • The minimum investment amount–€0.25 million and 10 employees

  9. ATTRACTIVE INVESTMENT INCENTIVES • Tax incentives: • A 10-year corporate profit tax holiday for investment over €7 million and 100 employees • Corporate profit tax reduction up to 80% of the fixed assets investment • Corporate profit tax reduction of 100% of the gross salary for new employees • Salary tax exemptions for employees under 30 and over 45 years • Social insurance charges exemptions for employees under 30 and over 45 years • Customs-free imports of equipment based on foreign investment

  10. ROBUST RECENT GROWTH

  11. Perspective sectorsAutomotive The most extensive tradition in automotive industry in the region – 1939 Availability of design, engineering, manufacturing, testing and maintenance companies : Zastava OEM Experienced and well trained workers Cooperation and production experience with EU and USA based companies : Fiat, GM, FORD, PSA, etc

  12. Perspective sectorsAutomotive • Engine components mostly not assemblies -flywheels, valves, camshafts (significant inflow of FDI) • Plastic and rubber parts – various exterior and interior parts (mostly produced by domestic companies) • Electrical and electronic – mostly wire harness but also batteries and starter motors (significant inflow of FDI)

  13. Perspective sectorsRenewable Energy

  14. Serbia ICT - Overview • Over 2,300 ICT companies currently operate in Serbia • More than 60,000 people employed in the sector • Telecom market revenue around 1.47 billion EUR and IT market revenue around 460 millions EUR in 2007 • Market share of the GDP was around 4.7% in 2007 • More than EUR 1.5 billion invested in Serbia’s ICT sector over last 5 years

  15. Electronics • Intensive development of embedded electronics and EMS (electronic manufacturing services) sectors • Embedded.rs – Electronics industry cluster established in 2008 (currently 12 members and expending) • Over 1700 registered companies in electronics industry covering sectors such as  production of electrical material and material for electro-installation, home appliances, medical electric equipment, telecommunications, computers and informational technologies, systems of technical protection • SEE electronics market value in 2008 over 10 billion

  16. Electronics-regional competitiveness

  17. Textile and Clothing Industry • Long standing tradition of Textile industry • High quality goods at competitive prices • Quick Delivery and Minimum Orders • Competitive labor costs with the industry average at € 180 • Investment opportunities in primary production (more than 70% of raw materials used in textile and garment production are imported) • Fashion industries of France, Italy and Germany use Serbian production capacities (Zara, Mango, Benetton, Tommy Hilfiger, Hugo Boss)

  18. Leather and Shoe Industry in Serbia • Great tradition in shoe production industry and is well known for its results (Salamander, Bata, etc.) • The latest fashion trend delivery due to geographical proximity to other markets • International fashion industries have repeatedly used production capacities in the country (production for Prada, Gucci, Janet & Janet, Nero Giardini, etc.) • Competitive labor prices with the industry average at € 180 • Almost 70% of the total industry export goes into EU countries

  19. Food and Wine In figures : • 5 115 000 ha of Agricultural Land • 4 253 000 ha of Arable Land • 67 000 ha of Vineyards • 778 961 agricultural estates • 90 % share of privately owned arable land • 529 326 people permanently employed in Agriculture sector • 10.82 % share of agriculture in GDP

  20. Food and Wine

  21. Grapes and Wine • 60 000 ha of vineyards • 345 000 tones of grapes in 2008 • 193 000 000 liters of wine • International varieties: Sauvignon, Italian Riesling, Cabernet, Chardonnay, White and Red Burgundy, Hamburg, Muscat, Afus Ali • Indigenous varieties : Belgrade Seedless, Prokupac, Vranac, Tamjanika, Krstac, Smederevka, Dinka

  22. How to start • One stop shop for enterprise registration • EUR 500 minimal capital for LLC • Up to 3 days to complete the procedure • More on Serbian Business Register web sitewww.apr.gov.rs

  23. Investment locations • Industrial estates in most of Serbian municipalities • 4 Free zones operating in the moment, up to 10 to be established • Up to EUR 10 per m2 of industrial land, 99 year lease, 4-6 months from LoI to commencement of construction works. • World renown construction and construction material industry

  24. SIEPA SERVICES • Free-of-charge assistance in all investment project stages; the Agency specialized in Greenfield ventures • An investment portfolio in excess of €2 billion • Coca-Cola, Ball Corporation, JTI, Grundfos, Knauf among major clients

  25. CONTACT US SERBIA INVESTMENT AND EXPORT PROMOTION AGENCY 3, Vlajkoviceva St. 11000 Belgrade, Serbia Phone: +381 11 3398 550 Fax: +381 11 3398 814 E-mail: office@siepa.gov.rs www.siepa.gov.rs

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