InvestBulgaria Agency

Transcription

InvestBulgaria Agency
InvestBulgaria Agency
December 2013
issue 3 (3), year 1
Monthly
Electronic Publication

InvestBulgaria Agency

Economic News - Business, Investments,
Trade

Analysis of Sector

Investment Opportunities of Municipality

Interview

Chamber of Commerce in Bulgaria

Macroeconomic Indicators

Upcoming Events
MARRY CHRISTMAS AND A HAPPY NEW YEAR!
Dear colleagues, friends and partners,
We wish you a magical Christmas! Health and strength, warmth and
kindness to you and your close ones! Let the new 2014 be gratifying,
let it bring you a lot of success, optimism and faith! Thank you for
being with us!
Sincerely,
InvestBulgaria Agency
INVESTBULGARIA AGENCY
Bulgarian tourism not only reveals the possibilities of Bulgaria as an attractive
destination, but is increasingly becoming an investment field, which attracts new
projects and investments
Branimir Botev
Deputy Minister of Economy and Energy
In the period 1998 - 2000 he was a senior adviser and secretary of the Council of
Administration at the Council of Ministers.
Co-founder and Co-President of the Bulgarian- Belgian Association Best2Be between
2002 and 2004.
He was Chairman of the Association of manufacturers, importers and retailers of
alcoholic beverages in Bulgaria and member of the Board of the Confederation of
European Spirits Producers (CEPS) - Brussels.
Since 2013 he is a member of the Advisory Business Research Board at the Ministry
of Agriculture and Food. Appointed Deputy Minister of Economy and Energy on July
22, 2013.
Graduated French School "Alphonse de Lamartine" in Sofia and Master's degree in "Sociology", profile "Social
Management" at Sofia University "St. Kliment Ohridski".
InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000
tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320
e-mail: iba@investbg.government.bg, http://www.investbg.government.bg
Issue 3 (3)/ December 2013
InvestBulgaria Agency
Bulgarian tourism not only reveals the possibilities of Bulgaria as an attractive destination, but is increasingly
becoming an investment field, which attracts new projects and investments.
On a territory of only 111 thousand square kilometers, Bulgaria offers several internationally recognized tourist
product:
- Marine tourism - 378 km of Black Sea coast, of which 200 km coastline;
- Mountain tourism - internationally recognized ski resorts with a total of more than 210 km of ski runs and five
big mountains, 146 peaks higher than 2,000 m;
- SPA and wellness tourism based on thermal mineral waters that pour 274 million liters a day
- Cultural tourism - 43 thousand artifacts, in this indicator Bulgaria ranks third in Europe by artifacts from the
Thracian civilization and Rome;
- Eco tourism - preserved natural resources - 3 national and 11 natural parks, 89 reserves and 2234 natural
attractions.
In the second half of 2013 tourism emerged as a leading sector in the Bulgarian economy, during this period it
increased from 12.5% to 13.6% of GDP, according to data from Eurostat and the World Tourism Organization
(WTO). At the end of this year Bulgaria will achieve two absolute statistical records in the development of national
tourism - 7 million foreign tourists will have visited the country and the revenues will exceed EUR 3 billion.
The government clearly recognizes the role of tourism in the Bulgarian economy and aims to conduct a proactive
policy, both on the target markets for Bulgarian tourism and to attract foreign investments to the Bulgarian
tourism. Accordingly, a National Strategy for Sustainable Tourism Development to 2030 was prepared, which
analyzes and indicate priorities in field, the trends of tourism products and services that Bulgaria offers, the
necessary measures to optimize the investment process in tourism, etc. At the same time Council of Ministers
took decisions № 705 on 11.14.2013 and № 668 on 04.11.2013 to establish working groups to conduct tourism
policy and support the investment intentions, shown by leading investors towards Bulgaria, and especially
mountain tourism. For the short period, in which the working groups have functioned, there are already
announced investment plans for over EUR 1 billion, mostly in the mountain areas covering comprehensive
services in this field - from whole-year, green tourism, through SPA tourism based on mineral springs, to ski areas
in winter.
A good example for an integrated approach is the construction of sport complex Kamchiya at the Black Sea,
financed entirely by the Government of Moscow.
In order to facilitate the investment process, the adoption of a special law for the development of mountainous
and hilly areas by analogy with the French law "Loi Montagne" is envisaged.
I believe that the joint efforts of government and business to achieve sustainable growth in tourism will lead to an
efficient and responsible policy in the sector and will attract more international investments.
Annual Awards “Investor of the Year” 2013
InvestBulgaria Agency (IBA) organized for the eighth time the annual awards "Investor of
the Year" 2013. The aim of the event is to honor the most significant investment projects
carried out in Bulgaria in 2013.
Specially appointed committee will review all nominations and determine the companies
that will be awarded at a ceremony in February 2014.
page 2 of 26
InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000
tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320
e-mail: iba@investbg.government.bg, http://www.investbg.government.bg
Issue 3 (3)/ December 2013
InvestBulgaria Agency
EVENTS ORGANIZED BY IBA
InvestBulgaria Agency met the business in Vidin
The potential for economic development of
Vidin and the region were discussed at a
roundtable organized by the InvestBulgaria
Agency (IBA) on 5 December in the building
of Regional Administration Vidin. The
meeting was attended by regional
representatives, private investors, trade
organizations in the face of Vidin Chamber
of Commerce and representatives of Free
Zone Vidin.
At the beginning of the meeting, the
Executive Director of IBA Svetoslav
Mladenov presented the activities of the
Agency, the large project "Promoting the advantages of investing in Bulgaria" and talked about the future plans of
IBA in the regions.
The discussion was very lively because of the desire and aspiration of the participants to affect key issues for
increasing the potential of the region. Transport Corridors 4 and 7, the train connections, the favorable
geographic location and good communications were derived as key advantages for investing in the region. It
became clear that Free Zone Vidin now offers ready sites to accommodate local and foreign investors. The trend
of rising unemployment and low-skilled workforce remains negative, which are one of the most important
conditions that investors look for when initiating new projects. Solutions to these two key issues can be found
again by investing in higher education and the establishment of specialized training centers in the region.
During the discussion a project for making major infrastructure changes in the field of tourism was mentioned,
which has the potential to find financing very quickly due to the increased interest in this sector at the moment.
At the end of the year will be published an investment catalogue, aimed at informing potential investors of the
business climate in different regions of Bulgaria, for which IBA urged attendees to assist with providing additional
information to the completeness of the material.
Svetoslav Mladenov announced that the Agency is ready to work actively with the Bulgarian municipalities for the
conversion of Bulgaria as an attractive investment destination for foreign business.
page 3 of 26
InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000
tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320
e-mail: iba@investbg.government.bg, http://www.investbg.government.bg
Issue 3 (3)/ December 2013
InvestBulgaria Agency
MEDIA FOR INVESTBULGARIA AGENCY
The business wants tourism in four seasons
Bulgarian Business Leaders Forum hosted a conference on
"government and business in a conversation about tourism
and investment", which was held in Burgas. Ambition of BBLF
as an organizer was to provide a platform for constructive
dialogue of all stakeholders - representatives of the tourism
industry and related industries, local and central government
that are relevant to the sector, know its problems and can
offer suitable solutions.
Moderator was Maxim Behar, a member of the Board of
BBLF who opened the ceremony in the presence of over 100
guests – government officials and regional municipal
administrations, representatives of the private business from
Burgas, Varna, Sozopol and the region, and the media, with the words: "For its 15 years of existence the Bulgarian
Business Leaders Forum organized many different initiatives that have contributed significantly to the
development of the business. One of them was the signature of our Standard of business ethics. This leads us in
Burgas today - ethics, transparency, the need to develop the business and the need for dialogue between
government and business, because with no dialogue this important sector of the country could not develop."
The conference began with a speech by Dimitar Nikolov, Mayor of Burgas, who confirmed that tourism is a
powerful stimulus for the development of the region and said that the local government is very active in
improving the quality of service and open to suggestions, recommendations and opinions from business
structures. "In recent years we develop new segments - ornithological, cultural, rural, festival, archaeological,
pilgrimage tourism and even wedding tourism. We also strive to improve the infrastructure," he added.
IBA Executive Director Svetoslav Mladenov said that Burgas is among the cities that are good examples for both
investment and infrastructure and tourism has enormous potential. According to him, the opportunities for
tourism lie in the four seasons, attracting wealthy tourists and more work in the field of advertising, for which IBA
is making significant efforts in recent months by issuing a monthly newsletter and an investment catalog. "I
sincerely hope that a model of how investment can raise the living standard of the people can be made in
Bulgaria in the next 10 years," he added.
burgasnews.com, 03.12.2013
InvestBulgaria Agency is ready to find a new investor for EnerSys JSC
EnerSys Jsc - Targovishte will continue to produce batteries for submarines, in which the company is a global
leader. The rest of the operations are temporarily frozen and will be maintained in readiness for commissioning in
case of positive development of the market conditions. This is the statement of the Executive Director of EnerSys
Jsc - Eugen Peterhansel from a meeting between representatives of the InvestBulgaria Agency and the
management of the company, IBA announced. Last week the company announced production and staff cuts at
the plant by 80%. During the meeting with representatives of the IBA, as main reason for the decision by the
company's headquarters was underlined the deteriorating conditions in the European market and the excess of
production capacity. Representatives of the IBA expressed readiness to look for potential investor, who could
acquire the company and to continue the operations planned for closing. Last week, CITUB alarmed that the
American owner of EnerSys Jsc suspends the company's core business - the production of batteries. 420 people
are in the process of being laid-off.
investor.bg, 17.12.2013
page 4 of 26
InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000
tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320
e-mail: iba@investbg.government.bg, http://www.investbg.government.bg
Issue 3 (3)/ December 2013
InvestBulgaria Agency
ECONOMIC NEWS - BUSINESS, INVESTMENTS, TRADE
ECONOMIC INDICATORS
GE Interested in construction of Bulgarian TPP, South
Stream
US energy giant General Electric has expressed interest in building new
powers at Bulgaria's Maritsa Iztok TPS, and in contributing to the
construction of the South Stream natural gas pipeline, revealed
Bulgarian Economy and Energy Minister Dragomir Stoynev in an
interview for the Bulgarian National Radio Sunday.
"General Electric offered to build units 9 and 10 of Maritsa Iztok 2,
which will be an important development in the-consuming part of
Bulgaria's energy sector," said minister.
Located near the city of Stara Zagora in southern Bulgaria, the stateowned Maritsa Iztok 2 TPP is the largest on the Balkans.
novinite.com, 25.11.2013
Foreign Direct Investments
Source: BNB
BNB exchange rates
ALC Bulgaria will open new plant in Bulgaria till the
end of the year
ALC Bulgaria will open new plant by the end of 2013, said Shaun Bosch,
General Manager, when he was awarded with the representation of
Bavaria in Bulgaria’s prize for a Bulgarian enterprise with contacts in
Bavaria. The second plant for production of upholstery for car seats will
create 200 – 300 work places in Ihtiman. Production is destined for
Mini Cooper. Investment in Bulgaria is to the amount of EUR 10 million
by now and will be increased with the new projects.
At present more than 800 people work in ALC Bulgaria, as compared to
500 at the end of last year. Main company’s customer is the German
automaker BMW.
“Except for the plant in Ihtiman we plan expanding production in
Musachevo in 2014”, said Bosch.
capital.bg, 27.11.2013
Source: BNB
Main Interest Rate
0.02% - 01.12.2013
0.04%
0.03%
0.03%
0.02%
0.02%
0.02%
0.01%
0.01%
Bulgaria ranks 43rd on the world’s most talent
competitive countries
Bulgaria has been ranked 43rd on INSEAD's Global Talent
Competitiveness Index. The index is compiled by Human Capital
Leadership Institute, INSEAD and Adecco consulting company.
Behind Bulgaria are Macedonia (52), Greece (56), Romania (63), Turkey
(67) and Serbia (79), which makes the Bulgarian economy the most
competitive in the Balkans. The good assessment is due to the ability to
retain talents – 33rd place.
The index covers 103 countries, representing 86.3 per cent of the
world's population and 96.7 per cent of global GDP. Switzerland is
placed at the top, followed by Singapore and Denmark.
darikfinance.bg, 27.11.2013
0.00%
Source: BNB
Unemployment Rate
11.5% - November 2013
13.0%
12.0%
11.0%
11.5%
10.0%
9.0%
8.0%
7.0%
6.0%
Source: NSI
page 5 of 26
InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000
tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320
e-mail: iba@investbg.government.bg, http://www.investbg.government.bg
Issue 3 (3)/ December 2013
InvestBulgaria Agency
BSE-Sofia
11.2012-11.2013
Bulgarian state to encourage Qatari investments in
Bulgaria
17.12
13.12
09.12
05.12
01.12
27.11
23.11
19.11
Source: Investor.bg
BG40: 19.11.2013 – 19.12.2013
17.12
13.12
09.12
05.12
01.12
27.11
23.11
158
158
157
157
156
156
155
155
154
154
Source Investor.bg
SOFIX: 19.11.2013 – 19.12.2013
485
480
475
470
465
460
455
borbabg.com, 03.12.2013
17.12
13.12
09.12
05.12
01.12
450
27.11
Oliva JSC has invested EUR 25 million in a factory in Polski Trambesh,
announced Ivo Ivanov, Director of manufacturing department. The
project is financed by EBDR and will create new 120 jobs. At the
moment the factory is under huge repair and the equipment is being
tested. The official opening is due for the summer of 2014.
During the last 10 years the plant Prima-M has changed several
owners. Oliva JSC bought the factory in 2011 for BGN 4 121 819. Over
BGN 3 million was paid for 68 buildings of the company as well as
BGN 1 million for 92 acres of land. Back in time the oil-factory was
named Marek and was one of the biggest oil-producers in Bulgaria.
89
89
88
88
87
87
86
86
85
85
84
23.11
Oliva has invested EUR 25 mln. in a new factory in
Polski Trambesh
BGREIT: 19.11.2013 – 19.12.2013
19.11
mi.government.bg, 03.12.2013
Source: BSE-Sofia
19.11
“The Bulgarian state will encourage realization of Qatari investments
in Bulgaria,” Bulgarian Deputy Minister of Economy and Energy, Krasin
Dimitrov, said at a meeting with the management’s representatives of
leading Qatari investment corporations and institutions in the frames
of a working visit to Qatar, Saudi Arabia and the United Arab
Emirates. During the visit Qatar expressed interest in investment
projects in Bulgaria mostly in the field of infrastructure, real estate,
agriculture, food-processing industry and tourism.
During the meeting it was agreed upon start of negotiations between
Bulgaria and Qatar for founding of a joint investment fund for small
and medium-sized enterprises in Bulgaria in participation with the
Qatari side. Attractive and strategic investment projects in Bulgaria
were also discussed. Sheikh Ahmed Al-Thani confirmed political will of
Qatari government to promote Qatari corporations for their
implementation in Bulgaria.
Source Investor.bg
Swiss experience will be applied in Bulgarian Technopark
Bulgaria will use experience of the oldest technopark in Switzerland, as it examines its background in assigning
criteria for selection of companies and training of entrepreneurs. Cooperation will be discussed during economic
minister Dragomir Stoynev’s visit in Zürich within the forum "Bulgaria as an industrial partner”.
It is the first techno-park in Switzerland and has a 20-year history. Basic emphasis in its activity is attraction of
young and innovative start-ups. Swiss technopark offers wide range of services: lower rents of offices, training,
setting up contacts and networks among companies, as well as with potential customers and investors.
Significant importance is given to creation and maintenance of close partnerships with institutes, universities and
research and development (R&D) units.
economy.bg, 03.12.2013
page 6 of 26
InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000
tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320
e-mail: iba@investbg.government.bg, http://www.investbg.government.bg
Issue 3 (3)/ December 2013
InvestBulgaria Agency
Bulgaria's Business Climate up Nov 2013 M/M
In November 2013, the total business climate indicator in Bulgaria
increased by 1.7 percentage points compared to its October level. This is
attributed to the more favorable business climate in industry and service
sector. The data was released Monday by the country's National
Statistical Institute, NSI.
The composite indicator "business climate in industry" increased by 4.3
percentage points in comparison with the previous month due to the
improved managers' assessments and expectations about the business
situation of the enterprises. Uncertain economic environment and
insufficient domestic demand remain the main obstacles for the business
development in the branch, 55.4% and 43.3% of the industrial
entrepreneurs respectively pointed out.
novinite.com, 04.12.2013
BHTC: We plan to create up to 800 jobs in the next five
years
German company’s plans to construct a factory in Bulgaria became clear
a year ago. It will be the first company in the state economic zone in
Bouzhurishte. The company is among key producers of equipment and
control systems for air-conditioners for cars. Among BHTC’s customers
are big car producers, such as Lamborghini, Рorsche, Bugatti,
Volkswagen, Ford and Renault. Except for Germany, the company has
subsidiaries in the US, China and India. They employ more than 1000
people.
Good economic development in recent years, good infrastructure,
beneficial business environment in terms of corporate tax, presence of
well-prepared engineers are among reasons the company to choose
investing in Bulgaria.
The first stage of the investment will be to the amount of about BGN
43.5 million. After that within three to five years expansion of the factory
is planned. At the beginning BHTC will start with 7500 square meters.
After that expansion at two stages will take place-each assessed to 5000
square meters more production premises. Investment may reach BGN
100 million in a five years’ time.
Initially the factory will start operation with 100 employees. Afterwards
expansion plans provide for increasing number of employees to 800
people for five years.
economy.bg, 06.12.2013
Parliament adopted Bulgaria’s state budget for 2014
Parliament adopted state budget of Bulgaria for 2014. The budget can be
defined as a social one– a budget that restarts economy and is focused
on speeding up of economic growth, finance minister Petar Chobanov
pointed out.
In Chobanov’s opinion it is a budget that is in conformity with economy’s
development and one that doesn’t ignore fiscal stability. Revenues are
ambitious and tense but that doesn’t make the budget overestimated,
the minister said. According to him numerous changes, including
structural and legal ones are considered. They confirm that higher
Selected Decisions of the
Government
of the Republic of Bulgaria
for the period 27.11-18.12.2013
18.12.2013
 Promotion of economic activity and
career development of young people is
one of the goals of the updated national
youth strategy
 Approved standard contract of mutual
investment promotion between Bulgaria
and third countries
 Updated annual estimates of extrabudgetary account of the National Fund
to the Minister of Finance
 The European Council will review the
Common Security and Defence Policy
 Adopted
a
national
plan
for
implementation of the European Youth
Guarantee
 Government offers synchronization of
the Penal Code with Community law
 Improvement of the legislation on labor
migration of third-country nationals on
the territory of Bulgaria
 The budget of MIE gets BGN 14.7 million
from the sale of greenhouse gas
emissions
11.12.2013
 Defined managing, certifying and audit
authorities of the operational programs
for 2014-2020
 The Government will support the
implementation of large investment
project in Ruse
 Provided land for the construction of the
access road of Vratsa and section of
highway Struma
 The deadline for completion of work
under the loan agreement with the World
Bank extended until mid-2014
 Expanded workers' rights with regard to
control over working conditions
 Reconstruction of the administration of
the Ministry of Economy and Energy, the
states in the system of the institution
shall be reduced by 159
 BEH will negotiate with Toshiba
Corporation to build a new nuclear power
plant in Kozloduy NPP
04.12.2013
 Radomir
municipality
will
build
intermodal terminal on property
provided by the State
 Approved
Bulgarian-Chinese
Memorandum of cooperation in railway
transport
 Prolonged period for granting interestfree loans to municipalities under the
Programme for Rural Development
 Approved agreements between Bulgaria
and the Deutsche Bank to create
collateral contracts for transferable loans
page 7 of 26
InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000
tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320
e-mail: iba@investbg.government.bg, http://www.investbg.government.bg
Issue 3 (3)/ December 2013
InvestBulgaria Agency
revenues can be expected next year. The strongest is of course fiscal
control that is to begin from the start of next year. Still another factor is
reverse charging of VAT. Improvement of some procedures, alleviation
of administrative budget and better communication that exist between
representative of revenue administration and business should not be
underestimated, too. Some buffers have also been planned.
parliament.bg, 09.12.2013
Bulgarian PM: 2014 to be first year of economic
recovery
For five years now, we have expected 2014 to be the first year with
growth of economic development. This was announced by PM Plamen
Oresharski who attended Bulgarian Business leaders’ forum on
Monday. “We are to make some small corrections, recommended by
the European Commission. As far as stability of fiscal position is
concerned, Bulgarian goes on being among the top countries in terms
of deficit, the PM pointed out.
The best policy that guarantees fiscal stability is the one that provides
for growth, he underlined.
“Still other initiative is encouragement of investment activity. We have
several key projects we are working on with investors”, Oresharski
concluded.
27.11.2013
 Adopted a National Strategy for the
development of the forestry sector in
Bulgaria for the period 2013 - 2020
 Bulgaria and Poland will cooperate in the
field of labor, employment and social policy
 Bulgaria and India strengthen cooperation in
science and technology
 Approved Bulgarian position about the
changes in the constituent documents of the
International Investment Bank
 Bulgaria takes over the presidency of the
Black Sea Economic Cooperation (BSEC)
 Adopted Draft Law on Industrial Property
Representatives
 Mineral Resources Act reflected the
provisions of the European directive
 Bulgaria is ready to sign the association
agreement of Ukraine to the European Union
novinar.bg, 10.12.2013
Sofia with direct air route to Belgrade from April
Direct air route Sofia - Belgrade will be released in April next year. This
was announced by Serbian Prime Minister Ivica Dacic after his meeting
with Bulgarian Prime Minister Oresharski in Sofia.
The South Stream project will be profitable for both Serbia and
Bulgaria, Oresharski said in turn. He also stressed that Bulgaria will
comply with all requirements of the EU.
The Serbian Prime Minister and some of his ministers are in Sofia at an
official visit. Serbia's prospects for EU membership will be a topic that
will be discussed in the meetings of the Serbian Prime Minister with
Bulgarian National Assembly Chair Mihail Mikov and President Rosen
Plevneliev.
bnr.bg, 11.12.2013
Breweries provide for EUR 163 million of budget
revenues
Brewery sector in Bulgaria has generated EUR 163 million revenues in
the state budget and provided for maintenance of 28 900 jobs in 2012.
This is what data of Ernst & Young’s latest research on contribution of
brewery industry to European economy for 2012 shows. Results of the
study were presented in Brussels on the annual gala evening of Brewers
of Europe.
Data shows that the sector is adapting well to present economic
difficulties and has a potential for growth and creation of jobs, Union of
brewers in Bulgaria says.
Ernst & Young’s report points out that in 2012 production and sales of
beer have generated EUR 53 billion tax revenues for governments in
EU
InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000
tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320
e-mail: iba@investbg.government.bg, http://www.investbg.government.bg
page 8 of 26
Issue 3 (3)/ December 2013
InvestBulgaria Agency
EU countries and provided more than 2 million jobs.
The sector reported a 4% growth in exports that forms
revenues to the amount of EUR 3 billion in the EU’s
balance of trade.
novinar.bg, 11.12.2013
Economy restarted with BGN 800 million
in the budget for spending
Economy’s restart planned in Budget 2014 will come
from BGN 800 million, set for budget expenditures,
directed to investment projects. This is what MP
Rumen Gechev pointed out before BTV. He stressed on
the need Bulgaria to support public spending in order
to step out of the crisis. In his words Bulgaria should
act as lots of other countries. It has to pay up to
stimulate the economy.
trud.bg, 11.12.2013
Bulgaria successfully meets crisis
challenges
Bulgaria is one of the countries in Europe that
successfully meet challenges of the crisis and maintains
positive rates of growth in the current difficult
economic situation. This is what the President of the
National Assembly Mihail Mikov told participants in the
Bulgarian-Chinese Economic Forum in Chongqing.
As an example of successful Chinese investments in
Bulgaria Mihail Mikov pointed out the Great Wall car
factory in Lovech, which is the first European factory
for production of Chinese cars. In Bulgaria Chinese
telecommunication companies "Huawei" and "ZTE"
also do successful business, Mikov added. He used the
forum in Chongqing to invite Chinese citizens to take
advantage of the excellent conditions for tourism that
Bulgaria provides.
bnr.bg, 14.12.2013
BEH to negotiate with Toshiba
Corporation
Bulgaria's Cabinet has approved the report of the
Minister of Economy and Energy, Dragomir Stoynev, on
the need to build a new unit at the country's only
nuclear power plant.
This is to say that the Minister gives his permission to
the Bulgarian Energy Holding (BEH) to negotiate with
Toshiba Corporation for conclusion of an agreement
for a strategic investor. Thus project for construction of
a new unit at the nuclear power plant NPP Kozloduy
with Westinghouse Electric Company’s technology
reactor with water pressure AP 1000-3 + is to be
completed. The minister was authorized to organize,
coordinate and control negotiations for structuring and
funding of the project.
government.bg, 11.12.2013
50 000 cars a year will be produced in the
factory near Lovech
"Full production capacity of Litex motors’ factory is 50
000 cars per year. We are optimistic that if we develop
successfully as until now, we are soon to reach the
goal. The capacity might be increased to 70 000 cars in
three work shifts. For the purpose, though we have to
have corresponding volume of orders, Litex motors’
CEO Iliya Terziev said. He is the winner of title Mr.
Economics for 2013. Terziev explained that from the
opening of the factory until now, production has been
constantly expanding.
Minister Stoynev: Relations between
Bulgaria and the USA are going in a
positive direction
"In recent weeks, the relations between Bulgaria and
the United States have developed very positively in the
Economy." This said Minister of Economy and Energy
Dragomir Stoynev meeting with AmCham Bulgaria. He
recalled that during his working visit to the U.S.
American business supported the assumption that the
economy must be at the forefront of relations between
the two countries.
Above representatives of American business Minister
Dragomir Stoynev stressed out that foreign investors’
trust might be gained only if stable and predictable
business environment is ensured in Bulgaria. One of
the first tasks facing the Government was removal of
the pressure on the economy and restoration of
dialogue with business, he reminded. "We have
already taken steps in this direction –84 licensing and
registration regimes were removed. Amendments to
the Law on Public Procurement are to be adopted, as
well. They are aimed at facilitating access of SMEs to
them", added Stoynev.
mi.government.bg, 14.12.2013
Bulgarian Industrial Association: Economy
Bottoms Out
Bulgarian economy emerges from recession after a
turbulent 2013; the results of the traditional annual
trud.bg, 12.12.2013
page 9 of 26
InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000
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Issue 3 (3)/ December 2013
poll of the Bulgarian Industrial Association (BIA) have
shown.
The results of the survey conducted among the BIA
members were announced in a press conference
Monday.
More than 22% of the polled said that the business
climate in 2013 had improved compared to the
previous year. Some 53% of the respondents claimed
that the economic conditions in the country were
deteriorating, while 23% of people thought they
remained the same.
Despite the fact that 39% of BIA members anticipated
economic stagnation in 2014, the poll showed certain
optimism – 33% foresaw over 1.5% growth.
InvestBulgaria Agency
Only 25% of the polled this year said they ‘expected
crisis aggravation’, compared to 51% of pessimists in
2012.
Every third businessman (29%) declared recovery of
the economic conditions, 36% were able to maintain
the same indicators, and 32% reported a decline of
business performance. The crisis has affected mostly
the sales/turnover (50% of the polled companies
reported a decline), followed by production volumes
(41%), employment (36%), investments (33%) and
market presence (31%).
bia-bg.com, 16.12.2013
page 10 of 26
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Issue 3 (3)/ December 2013
InvestBulgaria Agency
INVESTMENT PROJECTS IN A PROCESS OF REALIZATION
Maritsa olio JSC
The enterprise is located in the village of Yasen, Pleven municipality. It will produce vegetable oils mainly
from rapeseed, sunflower and soya. On the first stage of construction the company will produce raw oils. On
the second stage - refined bottled oil. The investment is to the amount of BGN 50 million and is to create 150
jobs. Production capacity of the enterprise is assessed to 1000 tons of processed raw materials within 24
hours in three-shift work. The official opening is planned for 2014.
Oliva JSC
Oliva JSC has invested over EUR 50 mln in the company’s factory in Polski Trambesh. Funding is ensured by
European Development Bank. 120 new jobs will be creates. Currently the company is under vast repair
works, machinery and facilities are being tested. Official opening is due for the summer of 2014.
Boni Holding JSC
Boni Holding, will modernize and expand its business with a loan from the European Bank for Reconstruction
and Development (EBRD) to the amount of EUR 10.5 million. Funds are envisaged for financing the
company’s investment program for modernization of pig farms and meat processing capacity. The program
provides for the purchase of new equipment, modernization of the existing ones and purchase of new farms,
improving microclimate and food systems, and general overall reduction of direct operating costs. Boni
Holding is one of the biggest companies in food-processing industry. It is a leader in the processing of pork
meat and is among the most renowned producers of meat products and sausages.
Pohl Agrar Company JSC
Pohl Agrar Company JSC will construct a dairy farm near the village of Krasen. The investment is to the
amount of over BGN 15 million. The planned farm of the German company will be situated at an area of 170
decares. Its capacity will be for 2000 cows of Bulgarian black colored cattle breed. The dairy farm is planned
to start operations in January 2014, when the first out of five stables will be ready. The company will initially
employ 30 people from the area. Until the end of 2015 the whole project is to be completed.
Zagorka JSC
In 2014 the company will invest over BGN 8 million in its brewery in Stara Zagora. In 2013 Zagorka invested
BGN 2 million in a ‘green warehouse’ and plans to turn into the greenest brewery company in Bulgaria.
Monrol Bulgaria SPLTD
The investment project includes construction of a cyclotron center and laboratory for production of
radiopharmaceuticals in Sofia. The investment in high-tech activity is assessed to over BGN 8 million. The
company’s investment project will be completed within three years. It is expected that production of
radiopharmaceuticals will be launched by June 2015. Once the center has been finished, the number of
employees in total will be 10. These are to be highly qualified experts in the sphere of nuclear medicine.
page 11 of 26
InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000
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Issue 3 (3)/ December 2013
InvestBulgaria Agency
Trakia Economic Zone unites 6 industrial zones with 1 billion Euro investment
made so far
Trakia Economic Zone (TEZ) unites the 6 industrial zones in the region of Plovdiv –
Industrial&Commercial Zone Maritza, Rakovski Industrial Zone, Industrial&Commercial Zone
Kuklen and the early stage of development of - Education and hi-tech Park in Plovdiv,
Industrial Zone and Hi-Tech Center Trakia and Agrocenter Kaloyanovo.
Trakia Economic Zone is implemented on 10 700 000 m², 3 250 000 m² of which has been
already occupied.
Over EUR 1 billion have been invested in all the zones ever since the start of the first
industrial zone - Maritza in 1995. Over 100 investors have been attracted, more than 80 of
them foreign, more than 12 000 jobs created.
World leaders like ABB, Liebherr, Socotab, Schneider Electric, Ferrero, Shell Gas, Linde,
William Hughes, Kaufland, Zobele, Ixetic, Mecalit, and Techno Aktas built and opened
enterprises, trade and logistic facilities. One of the most important companies in Bulgaria –
KCM JSC operates in TEZ. Emblematic Bulgarian brands - Bella Bulgaria, MAXCOM, Dimitar
Madjarov, Refan, Ataro Clima, Andy, Agria-Bulgaria, also have facilities within the zone.
Trakia Economic Zone provides 7 450 000 m² free space for new investment. Over EUR 750
mln, which will open 30 000 new jobs, are expected to be made within 10 years, according
to preliminary estimates. 11 new projects are currently being developed in Trakia Economic
Zone - some of them are at a design stage, others are near completion.
Trakia Economic Zone is located on lands of KCM 2000, Sienit Holding, as well as municipal
lands. Israeli and Italian companies also contribute to its development.
TEZ is a public private initiative. Under the idea of “Investment Initiative” association in May
2013 the mayors of 8 municipalities (Plovdiv, Rakovski, Maritza, Rodophi, Kuklen,
Asenovgrad, Parvomay, Stamboliyski) signed an agreement for cooperation aiming at the
development of the Plovdiv Region through creating a better business environment.
page 12 of 26
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Issue 3 (3)/ December 2013
InvestBulgaria Agency
In this sense the objectives of TEZ are:
•
•
•
•
•
•
•
•
•
•
creating a good business climate for the attraction of foreign and domestic investors
expanding the production of goods for export
industrialization led by innovation
processing of local agricultural production
development of agro sector
development of knowledge-based economy
realization of the regional stuff
creating a general system for coordination and management
improvement of the infrastructure connectivity
ensuring of qualified work force
The advantages of TEZ are:
• Convenient geographical location – on important railway routes and European transport
corridors, connecting Europe, Asia and Africa
• Secured infrastructure– transport, electricity, gas, water, sewerage, telecommunications
• A specialized administrative unit provides additional services, accelerated procedures
• Qualified multilingual work force
• 9 major universities with technical and economics disciplines
• More than 80 schools, language and specialized high schools
• Special training center for education of the personnel
The investors in TEZ gains easy access to funds of EU operational programs under the new
programming period 2014-2020, possibility for direct funding from Brussels. TEZ has
professional consultants who assist the investors in applying for European programs: „Good
Management“, „Science and Education for Smart Growth“, „Environment“, „Program for
rural development of the Republic of Bulgaria“, „Human Resources Development“, „Regions
in Growth“, „Transport and Transport infrastructure“
The projects of Trakia Economic Zone are implemented within SHORT TERMS, thanks to the
finished spatial planning of the territory, the assistance of the local authorities, the
InvestBulgaria Agency and the work team of the zone – specialists with over 15-years of
experience in the construction of industrial, logistic, infrastructural, energy and commercial
sites, lawyers, brokers. Construction of sites upon the requirements of the investor, for
example – an enterprise of 10 000m² production area, with 300 work places is completed
within 6 months
The Zone has ready production, logistic, commercial facilities.
Within TEZ are zones with different economic specifics, which make the project unique –
there are areas in the agro sector, in the high-tech sector, with focus on the heavy
industry. The investor has real options to choose from.
page 13 of 26
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Issue 3 (3)/ December 2013
InvestBulgaria Agency
THE SUCCESS OF THE COMPANIES THAT HAVE ALREADY INVESTED
• Ben Cox, commercial director of William Hughes: „We had to choose between Bulgaria and
Romania for our investment, and we decided that Bulgaria is better.“
• Peter Simon, ABB Group manager for Bulgaria and Romania: „Zone Rakovski is really an industrial
zone and we realized the project in very short terms. Here we found educated, motivated people,
the base for the success of this plant. We built a second plant in 2013.“
• Hristo Georgiev, manager of „Liebherr-Hausgerete Maritza“: “We were attracted by Zone Maritza
with its provision of highly qualified personnel with technical education, suppliers for the production,
competitive labor cost and opportunity to conquer East European markets from here.“
• Radoslav Koshkov, vice-president of LifeSpace in Schneider Electric: „We chose Zone Maritza for
its highly skilled work stuff and its location – from here we make deliveries worldwide. Recently we
expanded the factory and it became one of the biggest production factories of such products in
Europe“.
• Sinan Emin, Turkish concern „Techno Aktas“: „Since the establishment of the pant in 2008 till now
we increases the production and sales 5 times. The location of Zone Kuklen itself ensures the fast
service to our customers from East, West and North Europe. Our Bulgarian experts train workers of
the holding throughout the world.“
• Ludwig Kohl, former CFO of „Ferrero Bulgaria“: „Only 12 months passed from our decision to
invest in Bulgaria to the opening of the factory and during that time we received full assistance from
the Bulgarian authorities”.
page 14 of 26
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Issue 3 (3)/ December 2013
InvestBulgaria Agency
ANALYSIS OF SECTORS „ELECTRICAL ENGINEERING“ AND „ELECTRONICS“
Sectors Electrical Engineering and Electronics
Number of companies, number of employees in the sector „Manufacture
of computers and communication equipment,
electronic and optical products
(NACE26)“
Number of companies, number of employees in the sector „Manufacture
of electrical equipment (NACE27)“
Top companies in the sector by number of employees
Number of employees
Company
2010
2011
Manufacture of computers and communication equipment,
electronic and optical products (NACE26)
Festo Production SPLTD - Sofia
395
468
Optics JSC - Sofia
330
411
ITW Ispra Controls Bulgaria SPLTD Plovdiv
336
306
Sisko Set LTD - Sofia
207
316
Factory for Optics JSC - Sofia
270
278
Manufacture of electrical equipment (NACE27)
Yazaki Bulgaria SPLTD - Yambol
2 634
2 263
Liebherr Hausgeraete Marica SPLTD
- Radinovo
1 474
1 468
DZU (Disk Storage Devices) JSC Stara Zagora
1 197
881
Schneider Electric Bulgaria SPLTD Sofia
730
768
Hyundai Heavy Industries Co.
Bulgaria JSC - Sofia
649
662
2012
574
493
358
353
333
2 156
1 490
883
832
635
Top companies in the sector by sales income
Sales (BGN mln)
Company
2010
Assets of the companies 2008-2011, BGN
mln
2011
Manufacture of computers and communication equipment,
electronic and optical products (NACE26)
BTL Industries JSC - Sofia
40.1
62.7
Melexis Bulgaria SPLTD - Sofia
115.9
109.3
Festo Production SPLTD - Sofia
39.4
51.4
Daisy Technology SPLTD - Sofia
12.7
51.8
Centillion LTD - Sofia
4.2
7.1
Manufacture of electrical equipment (NACE27)
Liebherr Hausgeraete Marica SPLTD
- Radinovo
293.8
286.6
Schneider Electric Bulgaria SPLTD Sofia
109.3
154.9
Monbat JSC - Sofia
203.4
196.2
EnerSys JSC - Targovishte
79.3
131.7
Hyundai Heavy Industries Co.
Bulgaria JSC - Sofia
96.7
102.9
2012
66.1
64.4
58.2
33.7
12.9
321.7
186.7
183.8
131.5
73.0
Data is for companies reporting balance sheets from the sectors Manufacture
of computer, electronic and optical products (NACE 26) and Manufacture of
electrical equipment (NACE 27).
Net sales 2008-2011, BGN mln
page 15 of 26
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Issue 3 (3)/ December 2013
InvestBulgaria Agency
Investments in sectors Electrical Engineering and Electronics
Bulgaria has a good tradition in this sector. Electrical
industry in Bulgaria has over 100 years of history, which
roots from the early years of the creation of the modern
Bulgarian state. Since then it is constantly in the forefront of
the development of Bulgaria’s economy.
Currently sector "Electrical Engineering and Electronics" is
also successful in Bulgaria and manages to attract many
reputable foreign companies that already have their
business here. Successful examples worth mentioning: ABB
(Swedish-Swiss conglomerate), Schneider Electric (France),
Hristo Stankov
Kaloyan Kaloyanov
Liebherr (Germany), Festo (Germany), Melexis (Belgium),
Wuerth Elektronik (Germany), Siemens (Germany), Hyunday Heavy Industries (Republic of Korea), Yazaki
(Japan), etc. The majority of them have been in the country for more than 10 years. Some of these
companies continue to implement new projects and expand production capacity. As confirmation of the
above can be mentioned the new plants under construction of ABB and Festo, respectively in Plovdiv
and Sofia, which will be officially opened next year. Thus they will double their production facilities and
staff. Also, recently the world leader in the manufacture of electrical wiring for automobiles, the
Japanese company Yazaki, opened a second factory in Bulgaria in Sliven, so the total number of
employees in the company grew to over 3000 people. These examples are good evidence that
companies assess the conditions and opportunities provided by Bulgaria as attractive for investment.
In addition, Bulgaria has managed to attract new players, which make investments in production
capacity. Such companies are the Swiss Reichle & De-Massari and LEM, which over the last two years
have invested and continue to invest in factories in Sofia. Indicative is the example with LEM, which just
seven months after the decision was able to put into operation its production hall with an area of 4500
m2, in which BGN 3 million have been invested so far.
Besides the large international companies, Bulgarian companies also emerge as regional and global
leaders in the manufacture of electronics and electrical equipment. Such success stories are Incotex,
Datex, Acom MonBat, Electrostart etc. that produce products such as LED lamps, cash registers,
antennas, amplifiers, batteries, etc. at global level and with global competitiveness.
An interesting fact in attracting investments in this particular sector is that initially large companies
indulge licenses to Bulgarian enterprises for activities under their technology, and at a later stage these
Bulgarian enterprises have been acquired. Examples are Festo, ABB, etc.
A factor behind attracting investments in electrical engineering and electronics in Bulgaria is the
presence of regional centers with a long tradition shaped over the years as Sofia, Plovdiv and Botevgrad.
Mainly in these regions are concentrated the majority of businesses, as well as centers for training of
highly qualified personnel for the needs of the industry.
Availability of qualified personnel is among the leading factors in making investment decisions by
companies investing in Bulgaria. Students in subjects related to the industry "Electrical Engineering and
Electronics" in Bulgaria are nearly 30,000 as about 9,000 of them study directly Electrical Engineering
and Electronics, and the rest study related disciplines. Furthermore, the country has over 20
professional schools focused on Electrical Engineering and Electronics, which also train qualified staff.
Vocational schools and technical universities cooperate actively with the business in the preparation of
page 16 of 26
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Issue 3 (3)/ December 2013
InvestBulgaria Agency
future skilled workforce. It is interesting to note that each year Bulgaria participates with its teams in
international competitions in the field of automation and robotics.
Bulgaria produces a wide range of products: from small electronic components for building in to
industrial batteries and transformers as big as a room. Recent years show a trend of change towards
products with higher added value, requiring more engineering expertise. The majority of this production
- over 75%, is exported to developed markets in Western Europe, America and Russia. The average
growth rate of exports of electronics for the past five years is about 12%. A significant number of the
customers are companies in the automotive industry, for which in Bulgaria work reputable companies
such as Yazaki, SE Bordnetze, Wuerth Elektronik, IMI, Festo, Johnson Controls, etc.
Electrical and electronic industries are among the sectors of manufacturing, which are most closely
associated with the development of high technology. Therefore, attracted investments in these
activities are essential for the sustainable development of the Bulgarian economy because they make
products with higher added value.
Kaloyan Kaloyanov, Hristo Stankov
Sector Investment Services Department
Successful investments in the sector
ABB has been presented on the Bulgarian market via companies
ASEA and respectively BROWN BOVERI for more than 80 years
now. From 1993 it has been presented officially by its own local
subsidiary. ABB plays significant role on the Bulgarian market of
power and automation equipment.
ABB has been investing in Bulgaria for many years now, as it has
always demonstrated its reliability as a business partner on the domestic market. Thus the company was
nominated for Investor of the year in 2009 by InvestBulgaria Agency for its green investment to the
amount of USD 20 mln in production unit for components of low and medium voltage in Rakovski,
Plovdiv region. At present the company employs more than 700 people from the region. A year later for
the same investment the company was awarded with the Prize of German economy in Bulgaria by the
German-Bulgarian Chamber of Industry and Commerce.
In December 2012 the company officially started the construction of its fourth production unit,
assessed to USD 23 million. It is the second green investment of ABB, which is to be constructed in
Plovdiv region. The new production unit will operate as ABB’s domestic supplier of products of low and
medium voltage. When the production base starts operation in its full capacity, it will employ 600
people.
ABB functions in Bulgaria via a single company with a head office in Sofia. The company has offices and
branches in five more locations. ABB’s production units in the country are located in Petrich - for
products of low voltage, Sevlievo - for high voltage products and transformers and in Rakovski - for
products of low and medium voltage. The company has a service station for turbochargers in Varna, as
well as a joint center for accounting and HR in Rakovski. ABB has more than 1300 employees in Bulgaria.
page 17 of 26
InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000
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Issue 3 (3)/ December 2013
InvestBulgaria Agency
INVESTMENT OPPORTUNITIES OF MUNICIPALITY
Veliko Tarnovo Municipality
Area:
Mayor:
Tel:
e-mail:
Web site:
885.345 sq. km
Daniel Panov
+359 62 619304
mayorvt@vt.bia-bg.com
http://www.veliko-tarnovo.bg/
Veliko Tarnovo Municipality
Population
Total for Varna Municipality
Population (number)
Birth rate, (number)
2010
88 442
2011
88 417
2012
88 286
-381
-364
-342
99
48
211
Mechanical growth - total (number)
Leading companies by sales
income (BGN thousand)
Leading companies by profit
(BGN thousand)
Projects carried out in the
Veliko Tarnovo Municipality
58 724
58 187
58 081
Working-age population, number
Company
2010
2011
2012
Prestige 96 JSC - V. Tarnovo
59 328
64 546
77 697
CBA Targovia SPLTD - Debeletz
112 625
98 991
75 458
Agrocom SPLTD - V. Tarnovo
64 720
111 843
57 130
Lights Tabac LTD - V. Tarnovo
n.d.
12 510
48 040
Extrapack LTD - V. Tarnovo
34 435
39 518
45 309
Company
2010
2011
2012
Prestige 96 JSC - V. Tarnovo
11 191
8 409
10 460
Krasi SPLTD - V. Tarnovo
2 328
2 028
4 922
Resen SPLTD - Resen
2 061
9 003
3 753
Agrocom SPLTD - V. Tarnovo
4 636
8 840
2 967
Extrapack LTD - V. Tarnovo
975
2 647
2 517
 International project "Culttour - cultural/garden/heritage as focal points for
sustainable tourism"
 International project "Joint strategy for sustainable territorial development
of the zone for CBC Romania Bulgaria"
 Project "Development of investment projects in Veliko Tarnovo for the next
programming period"
 Project "City of Veliko Tarnovo - green and affordable Balkan capital of
cultural tourism"
Veliko Tarnovo prepares investment projects for the next program period
Veliko Tarnovo is preparing investment projects for the next program period aimed at strengthening the
municipality’s capacity to successfully take part in execution of Operational programme for regional
development 2014-2020.
Specific purposes are:
Provision of technical support for generation and preparation of investment projects under the
Operational Programme for Regional Development for the period 2014-2020.
Support of local authorities in compiling of a list with ready for funding projects that are to be
included in Veliko Tarnovo’s Integrated plan for urban regeneration and development.
page 18 of 26
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Issue 3 (3)/ December 2013
InvestBulgaria Agency
Two fields for preparation of 13 investment projects have been chosen. Five investment projects are
envisaged within the field with predominant social features. Two of them are for urban environment;
two are focused on educational infrastructure and one on cultural infrastructure. Eight investment
projects are planned within the field of public functions of high public importance. Five of them are
related to urban environment, two are focused on educational infrastructure and one is again for
cultural infrastructure.
Application of integrated territorial approach will contribute to development of a clear system of
mutually related activities among subjects of future intervention-elements from urban environment,
cultural and educational infrastructure. Sites are included within the span of approved zones of
interaction, approved of by project Preparation of Integrated plan for urban development in the span of
three zones in Veliko Tarnovo (grant contract № BG161РО001/1.4-07/2010/008).
Veliko Tarnovo Province
Area
Population
Economic
indicators and
labor market
4 661.572 sq. km
Total for Veliko Tarnovo Province
Population (number)
Natural increase - from 1000, ‰
Total for Veliko Tarnovo Province
2009
275 395
-6.4
2009
2010
271 400
-7.8
2010
2011
256 279
-7.9
2011
74 746
70 493
69 215
5 765
6 119
6 488
Economic activity rate - 15-64 years (%)
61.2
59.3
61.9
Employment rate - 15-64 years (%)
Unemployment rate (%)
Registered unemployed as to 31.12. (number)
55.6
51.4
54.6
9
13.1
11.7
12 873
11 817
11 834
1 580.253
1 677.363
1 684.164
5 716
6 135
6 539
68.836
67.212
73.034
283.9
267.9
390.4
3 312.0
3 652.1
3 973.9
2 147.0
2 351.3
2 520.5
659.4
744.2
794.3
Employees under labor contracts (number)
Average annual salary of employees under labor contracts (BGN)
GDP (BGN mln)
GDP per capita (BGN)
Foreign direct investment in non-financial enterprises, as at 31.12.
(EUR mln)
Cost of acquisition of long-term tangible assets (BGN million)
Turnover (BGN mln) *
Produced output (BGN mln) *
Value added at factor cost (BGN mln) *
1)
1) Incl. purchase of land
* Data are calculated by the methodology of Structural Business Statistics
Source: NSI
page 19 of 26
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Issue 3 (3)/ December 2013
InvestBulgaria Agency
The St. Cyril and St. Methodius University of Veliko Tarnovo
The first university outside Sofia was opened in the autumn of 1963 on the historic and vivid hill Sveta
Gora in Veliko Tarnovo. Cyril and Methodius were chosen as patrons of the University of Veliko
Tarnovo. It is the second largest university in Bulgaria. The university is an heir of educational and
cultural traditions of the once famous Tarnovo Literary School from ХІV century. University of Veliko
Tarnovo offers training in humanitarian and economic profiles in seven departments: philological,
historical and legal, art, teaching, Orthodox theological, economic and philosophical. More than 10
000 students in more than 60 disciplines are studying in the university.
Faculty of modern languages maintains active bilateral relations with universities from Belarus,
Belgium, Great Britain, Germany, Egypt, Spain, China, Moldova, Poland, Russia, France, the
Netherlands, Japan, etc. It participates in more than 40 international projects under programs
Socrates-Erasmus, Comenius, Lingua, Tempus, Ceepus, Leonardo da Vinci, and Interreg II.
Prominent foreign scientists have frequently visited the faculty and have read lectures there. Some of
them are awarded with honorary titles and are long-standing friends of Bulgaria and the University.
Diplomas of its graduates are both nationally and internationally acknowledged. Lots of teachers and
students have won high international awards. Guests of the University are prominent scientists, some
of whom are Honorary Doctors of Veliko Tarnovo’s alma mater.
For more than 25 years students in bachelors and masters’ degrees have studied IT and computer
sciences in St. Cyril and Methodius University of Veliko Tarnovo. Students have the chance to take
part in various forms of students’ mobility under Erasmus and other European programs. While they
are still studying and especially after graduation students have fast and successful career both in
Bulgaria and abroad. Level of preparation makes graduates competitive for work in IT companies that
develop system and applicable software and hardware in all economic sectors. Training in attractive
masters’ degrees in professional field of Informatics and Computer Science in the following subjects:
information systems, computer multimedia, data protection, multimedia systems and technologies in
education, corporate network environments and applied computer science are also offered by the
University.
page 20 of 26
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Issue 3 (3)/ December 2013
InvestBulgaria Agency
INTERVIEW
Interview with Marcel Schwab
Partner, Country Tax Leader Bulgaria and Macedonia at
EY (ERNST & YOUNG)
Ernst & Young is a leader in Assurance, Tax, Transactions
and Advisory. According to you, what are Bulgaria’s
advantages for attracting FI, compared to the rest of the
countries in Central and Eastern Europe and our neighbor
countries?
In terms of location for production (labor-consuming
production), services (outsourcing) and development (IT, technical developments) for foreign investors,
Bulgaria is a very interesting place on the European map. Bulgaria and the Bulgarians are far better than
rumor has it. Unfortunately, this is known to only few outside Bulgaria.
Bulgaria has low salaries with attractive tax framework conditions - this is not known to almost anybody
in the rest of Europe either - and, above all, it has people who love their country and are loyal if treated
well, and the investment in education is returned later. Since in respect of production costs, and also
labor costs, Bulgaria competes with India and China, particular emphasis has to be attached to this
aspect. Despite the continuing need for infrastructural improvement compared to the said countries,
Bulgaria has the logistic benefit and the advantage of being an EU member state. Moreover, the fixed
exchange rate tied to the euro is a matter of great importance to investors. On the other hand, foreign
investors view Southeast Europe as a region, and here Bulgaria competes primarily with Romania and
the countries of the former Yugoslav Republic. I have this idea about making an objective comparison
between the countries in this respect, that is, doing the so-called ‘Comparative assessment’ the results
of which can be provided to potential investors.
What are the best practices of the EU member countries in attracting FI?
In my view, the question should be posed in another way. Based on the
different history of the countries and their different mentality, you
cannot just do “copy-paste”, that is, copy one to one and apply the same
version; instead, you need to understand and bring to the fore what
Bulgaria supports
and emphasize the strengths, whereas the
weaknesses have to be realized in order to be eliminated. The
respective responsible authorities should view themselves as supreme
service performers, as managers of the citizens, of the businessmen and
of the country, respectively. A look across the border towards some
neighboring countries could also help in this instance.
page 21 of 26
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Issue 3 (3)/ December 2013
InvestBulgaria Agency
Bulgaria is not a very famous investment destination outside the EU. According to you, what actions
should be taken in order for our country to become more popular?
Investors should not be overwhelmed with subsidies, because the latter sometimes are just an indicator
of compensating for deficiencies. The attractive tax system is already a sufficient subsidy. As I have
already mentioned, here, we need in Bulgaria:
• Stable, sustainable framework conditions
• Effective management and administration directed towards rendering of service
• Active counteraction against corruption, which should be visible to those outside
• A will to change, and the factual changes should be accompanied by media activity (“It is only
he who beats the drum that can be heard.”)
According to you, is there a need for legislative or tax system changes in Bulgaria? If yes, what should
they be?
As regards the tax system – from the investor’s viewpoint – attention should be given to the following
issues:
- Repeal of the restriction on using carried forward tax loss for 5 years
An investment is often made by stages, over several years, which is in contrast with Bulgaria’s interest
through the restriction on carried forward tax loss for the country to be made attractive for foreign
investors. In economic terms, this acts as a tax increase and, hence, as a negative subsidy.
- Possibility to give mandatory “Advance ruling”
The above-mentioned security for the laws is a decisive factor for investors. A rule should be created
here, which is to motivate a legal requirement for advanced binding ruling.
- Rules and norms for tax “abuse of law”
The financial administration in Bulgaria can view every tax development that saves taxes from the
“abuse of law” perspective. A tighter, non-arbitrary legal rule should be established here, which is the
standard in other countries. Whoever pays taxes has to be entitled to save taxes.
page 22 of 26
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Issue 3 (3)/ December 2013
InvestBulgaria Agency
GERMAN-BULGARIAN CHAMBER OF INDUSTRY AND COMMERCE
German-Bulgarian Chamber of Industry
and Commerce
25A Frederic Joliot-Curie Str.
1113 Sofia
tel.: +359 2 81630 10
e-mail: info@ahk.bg
web: http://bulgarien.ahk.de
Follow us! www.facebook.com/ahkbulgarien
German-Bulgarian Chamber of Industry and
Commerce (GBCIC) is part of the worldwide network
of German Chambers of Commerce. They offer their
experience, contacts and services to both German and
foreign companies in 80 countries. In 2013 GermanBulgarian Chamber of Industry and Commerce
celebrates 20 years German economy in Bulgaria.
Representation of the German Economy in Bulgaria
was founded in March 1993. In March 1995 it is
followed by Business club of German economy in
Bulgaria. The two organizations, headed by Doctor
Mitko Vassilev, are predecessors of the GermanBulgarian Chamber of Industry and Commerce. March
is an eventful month in the history of BulgarianGerman business contacts after the changes. GBCIC is
founded in the spring-on the 9th March of 2004.
Doctor Vassilev is chief manager of the chamber.
Today it is the sole bilateral economic chamber in
Bulgaria, founded on the basis of an
intergovernmental decision and it is also the biggest
one in the country. More than 470 companies,
institutions and other organizations are members of
the chamber.
The huge number of companies in Bulgaria that are
interested in access to German market or have
German origin reflects on the economic statistics.
Trade exchange between Bulgaria and Germany is
marked by record after record. In the last ten years
the foreign trade exchange increased 2.5 times: from
EUR 1.9 billion to EUR 4.8 in 2012. In 2013 it is
expected to register a new peak. Apart from being the
most important foreign market for Bulgarian goods,
Germany is a strategic investor in Bulgaria, too.
Volume of German direct investment in the country
for the last decade has been over EUR 2.4 billion.
Die AHK (Auslandshandelskammer) Bulgarien gehört
zum weltweiten Netz der deutschen AHK-Büros in
etwa 80 Ländern. 2013 feiert die AHK Bulgarien das
Jubiläum „20 Jahre Deutsche Wirtschaft in
Bulgarien“. Im März 1993 wurde die Repräsentanz
der Deutschen Wirtschaft und im März 1995 der
Arbeitskreis der Deutschen Wirtschaft gegründet.
Beide Strukturen wurden von Dr. Mitko Vassilev
geleitet.
Die
AHK
Bulgarien,
deren
Hauptgeschäftsführer auch Dr. Vassilev ist, ist der
Nachfolger beider Organisationen. Der Monat März
scheint, schicksalhaft bei der Entwicklung der
deutsch-bulgarischen Wirtschaftsbeziehungen nach
der Wende zu sein. Die AHK Bulgarien wurde am 9.
März 2004 gegründet. Sie ist die einzige bilaterale
Wirtschaftskammer in Bulgarien, die aufgrund eines
Regierungsabkommens besteht. Die Kammer ist mit
über 470 Mitgliedern – Unternehmen, Institutionen
und Organisationen – die größte bilaterale
Wirtschaftsorganisation hierzulande.
Die hohe Anzahl von Firmen in Bulgarien mit
Interesse am deutschen Markt und die Menge der
Unternehmen mit deutschen Wurzeln spiegeln sich
auch in den Wirtschaftsstatistiken nieder. Das
Handelsvolumen zwischen beiden Ländern wird 2013
mit rund 5 Mrd. Euro einen neuen Rekord erreichen.
In den letzten zehn Jahren ist der Handelsumsatz 2,5
Mal gestiegen: von 1,9 Mrd. Euro auf 4,8 Mrd. Euro
(2012)! Deutschland ist nicht nur der wichtigste
ausländische Markt für bulgarische Produktion,
sondern auch ein strategischer Investor in Bulgarien.
Der Wert der deutschen Direktinvestitionen in den
letzten zehn Jahren beläuft sich auf 2,4 Mrd. Euro.
Die AHK Bulgarien bietet sowohl deutschen als auch
bulgarischen Unternehmen unter der Servicemarke
DEinternational verschiedene Dienstleistungen an,
page 23 of 26
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Issue 3 (3)/ December 2013
Under the DEinternational brand, the GermanBulgarian Chamber of Industry and Commerce offers
to German, as well as to Bulgarian companies, wide
range of services aimed at supporting economic
relations between Germany and Bulgaria. The
Chamber is an official representative of leading
German fair enterprises in Bulgaria: Munich, Leipzig,
Frankfurt, Cologne, Nuremberg and Düsseldorf fairs.
In 2003 was founded a representation of Bavaria in
Bulgaria within the German-Bulgarian Chamber of
Industry and Commerce. The Representation of
Bavaria in Bulgaria is also headed by Doctor Mitko
Vassilev. It is a result of Bavarian economic ministry’s
strategy to step on new foreign markets.
GBCIC strives to improve framework conditions for
doing business. For instance, by taking stand on
important public issues. Via active work of the ten
specialized committees and consultative councils the
chamber exercises its influence in various fields of
economic policy that are important to its members.
An important moment in the German-Bulgarian
Chamber of Industry and Commerce’s activity is the
dual vocational training. Introducing elements of the
dominant in Germany education system, Bulgaria may
overcome numerous problems, such as youth
unemployment, migration and lack of qualified staff.
InvestBulgaria Agency
um den wirtschaftlichen Austausch zwischen
Deutschland und Bulgarien zu unterstützen. Die
Kammer vertritt sechs der größten deutschen
Messegesellschaften:
Messe
München,
Leipzigermesse, Messe Frankfurt, Koelnmesse,
NürnbergMesse und Messe Düsseldorf.
2003 wurde im Rahmen der AHK Bulgarien die
Repräsentanz des Freistaats Bayern gegründet.
Bayerischer Repräsentant ist Dr. Mitko Vassilev. Die
Repräsentanz entstand um Zuge der Strategie des
Bayerischen
Wirtschaftsministeriums,
neue
ausländische Märkte zu erschließen.
Die AHK Bulgarien setzt sich für die Verbesserung der
Rahmenbedingungen ein, indem sie z. B. Stellung zu
wichtigen gesellschaftlichen Themen nimmt. Durch
die
aktive
Arbeit
der
insgesamt
zehn
kammerinternen Fachausschüsse und Beiräte
etabliert sich die Organisation als wichtiger Akteur in
verschiedenen Bereichen der Wirtschaftspolitik, die
für die Mitglieder relevant sind. Schwerpunkt der
Tätigkeit der AHK Bulgarien ist die duale
Berufsbildung. Die Einführung von Elementen des in
Deutschland
etablierten
dualen
Berufsbildungssystems wäre eine mögliche Lösung
für Probleme wir die Jugendarbeitslosigkeit, die
Migration und den Fachkräftemangel.
page 24 of 26
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Issue 3 (3)/ December 2013
InvestBulgaria Agency
MACROECONOMIC INDICATORS
Foreign Direct Investments in Bulgaria
Year
2001
903.4
2013
quarters
2013
months
2002
980
2013'Q1
I
97.8
II
192.7
EUR mln
Net cash flow - annual data
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
1850.5 2735.9 3152.1 6221.6 9051.8 6727.8 2436.9 1151.2 1330.2 1480.5
Net cash flow – quarterly data
2013'Q2
2013'Q3
2013'Q4
476.4
260.6*
420.5*
Net cash flow – monthly data
III
IV
V
VI
VII
VIII
IX
X
XI
XII
185.9 -70.8* 152.1* 179.3* 262.2* 122.1*
36.2* -103.8*
Data is updated (as to 17.12.2013)
Source: BNB
Main economic indicators EU-Bulgaria-Germany
European Union
Bulgaria
Germany
GDP (purchasing power parity)
$ mln
15 970 000 [2012]
105 500 [2012]
3 250 000 [2012]
%
-0.3 [2012]
0.8 [2012]
0.7 [2012]
$ thousand
35.1 [2012]
14.5 [2012]
39.7 [2012]
%
-1.6 [2012]
1.2 [2012]
-0.5 [2012]
Mln
230 [2012]
2.585 [2012]
43.93 [2012]
%
10.3 [2012]
11.1 [2012]
5.5 [2012]
% of GDP
n.d.
-0.5 [2012]
0.2 [2012]
% of GDP
n.d.
16.2 [2012]
81.9 [2012]
%
2.6 [2012]
3 [2012]
2.1 [2012]
$ mln
-34 490 [2011]
542.8 [2012]
208 100 [2012]
$ mln
2 170 000 [2011]
26 820 [2012]
1 460 000 [2012]
$ mln
2 397 000 [2011]
31 500 [2012]
1 222 000 [2012]
$ mln
863 800 [2011]
20 500 [12m 2012]
248 900 [12m 2012]
$ mln
15 500 000 [12м 2012]
50 540 [12м 2012]
5 719 000 [12m 2012]
$ mln
n.d.
52 990 [12м 2012]
1 307 000 [12m 2012]
$ mln
n.d.
1 923 [12м 2012]
1 790 000 [12m 2012]
Source: CIA /www.cia.gov
GDP - real growth rate
GDP - per capita (PPP)
Industrial production growth rate
Labor force
Unemployment rate
Budget surplus (+) or deficit (-)
Public debt
Inflation rate (consumer prices)
Current account balance
Export
Import
Reserves of foreign exchange and gold
Debt - external
Stock of direct foreign investment - at home
Stock of direct foreign investment - abroad
page 25 of 26
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Issue 3 (3)/ December 2013
InvestBulgaria Agency
UPCOMING EVENTS
22-25
January
2014
Davos-Klosters,
Switzerland
February
2014
Bulgaria
World Economic Forum Annual Meeting 2014
The Reshaping of the World: Consequences for
Society, Politics and Business
InvestBulgaria Agency (IBA) organized for the eighth
time the annual awards
Investor of the Year 2013
The aim of the event is to acknowledge the most important
investment projects implemented in Bulgaria in 2013.
18 February
2014
Hotel Cascais
Miragem,
Cascais,
Portugal
The Lisbon Summit
The outlook for economic growth and reform
20-21
February
2014
Fairmont
Pacific Rim,
Vancouver
Canadian Financing Forum 2014
27-28
February
2014
Paris, France
Global Forum on Competition
page 26 of 26
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e-mail: iba@investbg.government.bg, http://www.investbg.government.bg