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INVEST IN BOSNIA AND HERZEGOVINA YOUR NEW OPPORTUNITY. “ KOIMA“ DELEGATION VISIT TO BIH. www.fipa.gov.ba. Sarajevo, March 2011. www.fipa.gov.ba. BUSINESS ENVIRONMENT REASON S TO INVEST IN BIH. Stable financial sector Favorable trade and other agreements Favorable legislation
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INVEST IN BOSNIA AND HERZEGOVINA YOUR NEW OPPORTUNITY “KOIMA“ DELEGATION VISIT TO BIH www.fipa.gov.ba Sarajevo, March 2011
www.fipa.gov.ba BUSINESS ENVIRONMENT REASONS TO INVEST IN BIH • Stable financial sector • Favorable trade and other agreements • Favorable legislation • Favorable tax and customs system • Competitive labour force • Foreign Investors Support Fund
www.fipa.gov.ba 1. Stable financial sector The most stable currency in SEE (1KM = 0,51129 EUR) Constant growth of foreign currency reserves Foreign ownership in private banking sector in BiH is 86% Annual inflation rate, % Source: Agency for Statistics of BiH, IMF
www.fipa.gov.ba Stock exchange turnover in million € Source: SASE, BL Stock Exchange
www.fipa.gov.ba www.fipa.gov.ba 2. Favourable trade and other agreements Free Trade Agreements: - Central European Free Trade Agreement (CEFTA) - 30 millconsumers - Free Trade Agreement with Turkey - 70 millconsumers • Preferential Trade Agreements: • EU, 27 countries - 500 mill consumers • Preferential export regimes with: USA, Australia, Canada, • Japan, New Zealand,Switzerland, Norway, Russia Agreements on Avoidance of Double Taxation - with 35 countries Agreements on Promotion and Protection of Investments – with 35 countries
Central European Free Trade Agreement (CEFTA) - 30 mill Free Trade Agreement with Turkey - 70 mill Preferential Trade Agreement with EU, 27 countries - 500 mill Preferential export regimes with USA, Australia, New Zealand, Switzerland, Norway, Russia, Japan, Canada and Iran Free Trade Agreements
www.fipa.gov.ba 3. Favourable Legislation • FDI Law • National treatment of foreign investors • Repatriation of profits • Protection against nationalization, expropriation • or similar measures • Right to freely employ foreign nationals, subject • to the labour and immigration laws in BiH • Corporation organization • There are no citizenship/nationality limitations • for partners or the members of the menangment and supervisory boards
Tax system Unique VAT rate of 17% Profit tax is 10% Favorable incentives and tax exemptions Customs system Exemption from payment of customs duties for foreign investors Customs rates 0-15% www.fipa.gov.ba 4. Favorable tax and customs system
www.fipa.gov.ba 5. Competitive labour force • Educated & skilled • Efficient, creative and innovative • Foreign language spoken • Price competative • (in comparison to other EU countries) • Average net wage in 2010 - 408 EUR
www.fipa.gov.ba 6. Foreign Investors Support Fund • Established by Council of Ministers • Budget 1 mill € • Foreign investment projects in production, research, development etc. (except trade, banking, leasing and insurance) • Conditions: - Number of employees - Investment location - Value of investment - Export of products - Environment protection
FDI by Sectors (May 1994 – December 2010) FDI inflow in BiH, by years, mill € Source: CBBH, MoFTER, FIPA Source: CBBH, MoFTER i FIPA
www.fipa.gov.ba Top investor countries in BiH May 1994 - December 2010 – Total amount 6.1 billion € Million € Source: CB BiH, MOFTER, FIPA
www.fipa.gov.ba The most attractive sectors • Energy sector • Toursim sector • Wood industry • Metal processing industry • Automotive industry • Constructuction industry • Agriculture and food processing • Textile and footwear • ICT
www.fipa.gov.ba Investment opportunities • Availability of natural resources and supply networks • Highly competitive overall cost structure • Privatization process • Concessions • Bankruptcy opportunities • Investment projects • Joint ventures • Investment locations
www.fipa.gov.ba FIPA support What we can do for you? • To inform you on: • FDI related legislation • Macroeconomic indicators • Business environment • Investment projects, privatisation opportunities,available tenders • To advice you: • How to set up a company • To identify location for Greenfield investment or business service providers • To support you to: • Implement projects • Cooperate with local private sector • Organise meeting with responsible authorities ALL FIPA SERVICES ARE CLIENT-ORIENTED AND FREE OF CHARGE!
INVEST IN BOSNIA AND HERZEGOVINA YOUR NEW OPPORTUNITY Sarajevo Office Avaz Twist Tower, Tešanjska 24A Phone: +387 33 278 080 Fax: +387 33 278 081 E-mail: fipa@fipa.gov.ba Banja Luka Office Ðure Daničića 1/III Phone/ Fax: : ++387 51 226 180 E-mail: banjaluka@fipa.gov.ba Mostar Office Rade Bitange 30 Phone /Fax: ++387 36 558 815 E-mail: mostar@fipa.gov.ba www.fipa.gov.ba THANK YOU FOR YOUR ATTENTION www.fipa.gov.ba