INVESTBULGARIA AGENCY PRESENTED THE INVESTMENT … · HIGHLIGHTS InvestBulgaria ... Mr. Ivan Stoimenov, manager of the Bulgarian-Nordic Chamber of Commerce and a ... Bulgaria were

InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000

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November 2014 issue 10 (13), year 2

InvestBulgaria Agency’s Monthly

Online Publication

www.investbg.government.bg

HIGHLIGHTS

InvestBulgaria Agency – Investment forums 2014

Economic News - Business, Investments, Trade

Headlines from the European institutions

Analysis of Sector Transport mechanical engineering – automotive parts manufacturing

Investment Opportunities of Municipality Sandanski

Interview with Tomas Jindra, General manager of WITTE Automotive Bulgaria EOOD

Chambers of Commerce in Bulgaria – Bulgarian-Korean Committee for economic cooperation

Macroeconomic Indicators

Upcoming Events

INVESTBULGARIA AGENCY

INVESTBULGARIA AGENCY PRESENTED THE INVESTMENT CLIMATE IN BULGARIA IN 10 CITIES AROUND THE WORLD

Representatives of the international business community participated in the investment forums, under the motto "Bulgaria: Grow your business"

From the 21st of October to the 20th of

November 10 cities from 7 countries around the world were talking about Bulgaria – the investment opportunities, the business climate and its competitive advantages. InvestBulgaria Agency (IBA) organized international investment forums under the project "Promoting the advantages of investing in Bulgaria", realised under the Operational Programme “Development of the Competitiveness

of Bulgarian Economy 2007-2013”. The initiative entitled "Bulgaria: Grow your business" was to present Bulgaria as a place to establish and expand a business, to invite potential investors to benefit

from the competitive advantages of the country, and those who have already invested, to expand their business. Representatives of IBA and selected lecturers visited Copenhagen, Stuttgart, Hannover, Geneva, Beijing, Shanghai, Moscow,

Seoul, Boston and New York to meet with presidents, CEOs and managers – the decision-

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issue 10 (13) / November 2014 InvestBulgaria Agency

George Alipiev, Acting Director, "Sectoral Investment Services" "The forum was very useful, because it gave an opportunity for potential investors from Scandinavia, to be informed for the current business environment in Bulgaria. This region of Europe has big potential to organize such events in the future, in order to attract companies to contribute in the deployment of new technologies, solutions and business practices in sectors such as Agriculture, Tourism, Engineering. "

makers responcible for the business expansion abroad, and presented to them the investment advantages of Bulgaria. The presentations were focused on the priority sectors of the Bulgarian economy, supported by IBA - "Machine building and automotive industry", "Electronics and Electrical Engineering", "Food and Agriculture", "Transport and Logistics", "Chemistry and related industries", „Information Technology”, "Business process outsourcing", "Healthcare and Medical Tourism". The lecturers were selected amongst the managers and senior staff of the companies that have successfully implemented investment projects in Bulgaria. The audience in the aforementioned countries was made aware of examples such as ABB, Nestle, TUI, Lufthansa Technik, Tianjin State Farms Agribusiness, IBM, Litex Motors, that are companies with a long standing business in Bulgaria and motivated by the achieved success in Bulgaria, have expanded their business further.

Among the speakers were also leaders of the Bulgarian-Swiss Chamber of Commerce, the American Chamber of Commerce, the German-Bulgarian Chamber of Commerce and Industry, the Bulgarian-Korean Economic Cooperation Committee and others. They talked about the business environment in Bulgaria and how it favours the expansion not only at home but also in the European Union. The diplomatic missions of the Republic of Bulgaria in the countries selected to host the events played an active role in the organization and conducting of the investment forums. Ambassadors and heads of the Bulgarian trade missions abroad provided full support to the events while explaining to the participants in the events that Bulgaria is a place that can guarantee a successful penetration into the European market and easy access to markets in Turkey, Middle East and others.

COPENHAGEN – EXPRESSED INTEREST IN THE INVESTMENT OPPORTUNITIES

IN AGRICULTURE AND ENERGY AND BIOMASS PRODUCTION On the 21st of October 2014 in Copenhagen, Denmark, InvestBulgaria Agency (IBA) hosted an investment forum, attended by representatives of IBA, Ambassador Extraordinary and Plenipotentiary of the Republic of Bulgaria to the Kingdom of Denmark H.E. Mr. Roussi Ivanov, H.E. Viorel Ardeleanu, Ambassador of Romania to the Kingdom of Denmark, representatives of the Bulgarian diplomatic mission in Copenhagen, businessmen from Denmark and Sweden, consultants and others.

After the exposé of Mr. Svetoslav Mladenov, Executive Director of IBA, the investment climate in Bulgaria was presented by George Alipiev. The audience was informed about the country's economy, the government incentives provided under the Investment Promotion /IPA/, and the situation in the sectors of Food and Agriculture, Transport equipment and Machinery, Chemical industry and Medical tourism. In the discussions participated Mr. Ole Andersen, a representative of a company from the sector “Food and Agriculture”, Mr. Ivan Stoimenov, manager of the Bulgarian-Nordic Chamber of Commerce and a former representative of company SKF, Country manager for Bulgaria of "ABB" Mr. Ekkehard Neureither, Mr. Konstantin Daradanov,


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representative of "Hempel" for Bulgaria, Mr. Peter Dyakov, governor of Cleves, a real estate company. The main interest was focused on the investment opportunities in agriculture and energy production

from biomass. Questions were asked about the business environment in Bulgaria - tax costs of setting up production facilities, funding opportunities, etc.

COMPANIES FROM STUTTGART AND HANNOVER WERE INFORMED ABOUT THE BUSINESS CLIMATE IN THE COUNTRY

On the 23rd of October 2014 in Stuttgart and the 28th of October 2014 in Hanover, were held forums organized by InvestBulgaria Agency (IBA) "Bulgaria: Grow Your Business". In Stuttgart for the event was chosen "Maritim Hotel Stuttgart". The guests were welcomed by The General Consul of Bulgaria in Bavaria and Baden-Württemberg, Mrs. Antoinette Baicheva and the head of Commercial and Economic Section of the Embassy of the Republic of Bulgaria in Munich, Mr. Petar Georgiev. The Honorary Consul of Bulgaria in Baden-Württemberg, Mr. Til Trukenmyuler attended the event. Hristo Stankov – sector expert from IBA, presented the Bulgarian economy and the investment climate. The accent was on the incentives under the Investment Promotion Act. The programme of the event was focused on four priority sectors of the Bulgarian economy: Food and Agriculture, Transport equipment and Machinery, Information technology and Business process outsourcing, and Balneology and Medical tourism. Moderator of the discussion was Mr. Mitko Vasilev, Chairman of the German-Bulgarian Chamber of Industry and Commerce. The successful projects in Bulgaria were presented by Stefan Yordanov,

financial director of "Lufthansa Technik Sofia", Ekkehard Neureither, country manager of ABB for Bulgaria, Sonya Nachkova, director of "Software" AG Bulgaria, Georgi Vutev, representative for Bulgaria of GIS Transfer, Valentin Iossifov, director of TUI Bulgaria. The guests asked many questions followed by announcements about upcoming visits to Bulgaria and desires for special meetings with representatives of IBA with the aim of obtaining more specific information on topics of interest to them. The forum in Hanover took place at hotel "Novotel Hannover". Ambassador Extraordinary and Plenipotentiary of the Republic of Bulgaria to the Federal Republic of Germany, H.E. Mr. Radi Naydenov and the head of Commercial and Economic Section of the Embassy of the Republic of Bulgaria in Berlin, Mr. Veselin Gornishki came especially for the event. Mr. Naydenov made a comprehensive review of trade

and economic relations between Bulgaria and Germany, highlighting the advantages of Bulgaria as a place for business development for German companies. In a presentation, given by a

Maria Ivanova, Sector Expert, "Sectoral Investment Services" Department "At the forum in Stuttgart became clear that “Kemmler Electronic” has begun production in Rakovski, Bulgaria. The Director Mr. Stefan Reamer expressed his eagerness for closer cooperation with IBA. There was a specific interest in the sectors IT, BPO, Food and Agriculture. Anelia Baklova, Director, “Marketing” "In Hanover the interest was focused on the opportunities that Bulgaria offers for investments in Balneology and SPA tourism. Questions related to the government policy in this area were asked. Great interest provoked also the presentation of the development in the sector "Information Technology". There was specific interest in the organization and participation of Bulgarian innovative companies from the IT sector in the largest exhibition of information technologies in Europe BAIT."


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representative of IBA was presented detailed information on the macroeconomic indicators of

Bulgaria, the incentives under the Investment Promotion Act, etc. Moderator of the event was Ms.

Carmen Struck, Deputy Chairman of German-Bulgarian Chamber of Industry and Commerce. The focus of the event was on the priority sectors: Transport equipment and machinery, Electronics and Electrical engineering, Information Technology, Medical Tourism and SPA. Alexander Uzunov, project manager of BHTC, revealed the inspiration for the plant for the production of auto parts, whose commissioning in industrial zone Bojurishte is

forthcoming. Rumen Atanasov, Chairman of the Bulgarian Association of Electrical engineering and Electronics, presented the investment opportunities in this sector of the Bulgarian economy. Janet Popova, Manager of "AMET", shared her experience in medical device manufacturing realized in collaboration with German manufacturers. Georgi Brashnarov, General manager

of "Nemetschek Bulgaria", presented the vigorous development of the IT sector in Bulgaria and the international companies successfully established in Bulgaria. Valentin Iossifov recommended to the

attendees to invest in SPA and balneology in Bulgaria, citing the long experience as Executive director of "TUI Bulgaria".

THE BULGARIAN DELEGATION WAS WELCOMED WITH INTEREST BY THE BUSINESS COMMUNITY IN GENEVA

On the 30th of October 2014, in Geneva, Swiss Confederation, InvestBulgaria Agency (IBA) hosted an investment forum. Ambassador Extraordinary and Plenipotentiary of the Republic of Bulgaria to the Swiss Confederation, H.E. Meglena Plugtschieva-Alexandrova opened the forum and wished for successful investment projects. Among the hosts was Mrs. Aneta Gruycheva, the Head of Commercial and Economic Section of the Embassy of the Republic of Bulgaria in Bern, actively participated in the preparation of the event. Mr. Svetoslav Mladenov, Executive Director of IBA, focused the audience's attention on the advantages

and opportunities, offered by the business environment in Bulgaria. The panel discussions were moderated by Boni Bonev, Chairman of the Bulgarian-Swiss Chamber of Commerce (BSCC). Presentations were made by representatives of LEM, ABB, Nestle, Evrika 7 and Vasil Radoynovski, from the Secretariat of the BSCC. Juan Carlos Peralejo, Executive Director of "Nestle Bulgaria", presented their successful investment of over 150 million dollars in two factories in Bulgaria - in Sofia and Varna. Mr. Peralejo expressed a concern about the demographic crisis. "The human factor is essential for an investment decision", said Mr. Pereleho. Among the guests were representatives of HP, Siemens, PricewaterhouseCoopers, Le Monde Economique, Aurelys, Voxia, Obal and others. The main focus of the discussions were the expressed plans for future development in the country, an impression of the work environment and workforce problems, related to language and cultural barriers, administrative barriers and more.

Valya Yosifova, Expert, "Marketing" Department "After a detailed presentation of the investment climate by Svetoslav Mladenov, Executive Director of IBA, and the presentations of successful investments in Bulgaria, there were many questions about the future development in the country, for the employability of the workforce and others."



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Milena Lozanova, Expert, "Marketing" Department "Huge was the interest about investment opportunities in tourism, and expanding the trade and economic relations between Bulgaria and Russia. The presentation of the conditions for development of medical tourism and SPA in Bulgaria brought to many questions, answered by the lecturers in detail ".

THE ACCENT OF THE INVESTMENT FORUM IN MOSCOW

WAS ON BALNEOLOGY AND SPA TOURISM On the 12th of November 2014 in "Esenin", hotel "Zolotoy kolytso", was held an investment forum, with the participation of representatives of IBA, Ambassador Extraordinary and Plenipotentiary of the Republic of Bulgaria to the Russian Federation, representatives of the Bulgarian diplomatic mission in Moscow, businessmen, consultants, journalists and others. The sectors "Food and Agriculture" and "Healthcare and medical tourism" were presented. Among the guests were representatives of the business, leading managers, consulting companies, media and members of the governing bodies of the business unions and associations. Boyko Kotzev, Ambassador Extraordinary and Plenipotentiary of the Republic of Bulgaria to the Russian Federation, made a congratulatory address. From the Russian side, Vladimir Ivanovich Padalko, Director of "External relations and cooperation" in

the Chamber of Commerce of the Russian Federation, congratulated the participants. Julian Balchev, Marketing expert in IBA, presented the economic climate and the competitive advantages of Bulgaria as an investment destination, briefed the participants on the services of InvestBulgaria Agency, and the incentives under the Investment Promotion Act. Atanas Nenov, CEO of "National Company Industrial Zones", presented the conditions that the company offers to investors. Stefan Sharlopov, president of the Bulgarian Union of Balneology and SPA Tourism, presented the investment opportunities in the sector. During the event were asked questions, related to investment opportunities in agriculture and tourism and how IBA supports the investors.


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THE CHINESE BUSINESS INTERESTED IN INPLEMENTING NEW INVESTMENTS IN BULGARIA

"Tianjin State Farms Agribusiness Group" announced a plan, approved by the Government of Tianjin, to invest 100 mln. euros in the construction of agro business park for processing agricultural production in Bulgaria. The initial idea is to attract 5 more Chinese companies as partners to invest in the construction of the new facilities. Serious intentions to invest in other subsectos of the food industry, machinery and tourism were

announced at the investment forums in Beijing and Shanghai, organized by InvestBulgaria Agency. Both forums attracted more than 350 participants from the business and political circles in China. Kostadin Djatev, Deputy Executive Director of InvestBulgaria Agency (IBA), presented the investment climate in Bulgaria, highlighting the competitive advantages of our country. Lyubomir Hristov, Deputy Mayor for Transport and Transport communications of Sofia, presented concrete investment proposals

and projects that could be realized through public-private partnership in the field of transport infrastructure and the development of SPA. Representatives of "National Company Industrial Zones" and "Sienit Holding" provided information about the conditions they offer to foreign investors and successful examples of foreign companies that have already implemented an investment in the country. The Executive Director of "Tianjin State Farms Agribusiness Group” shared with the audience the emotional story of the company's success in the Bulgaria and invited her

countrymen to follow them. Li Jiayi, owner of "Jiayi Travel", pointed to the huge opportunities for investment in Spa and tourism that Bulgaria provides. Anton Donchev, Permanent Representative of "Litex Motors" in China, presented the company's successful partnership with the Chinese automobile manufacturer "Great Wall", that have a plant in Lovech. Representative of “Export Import Bank of China” showed the mechanisms for funding investment projects of Chinese companies in Bulgaria. The moderator of the forums Nelson Wong, a real admirer of Bulgaria, emotionally presented the reasons why he loves our country and the motivation to make efforts to promote Bulgaria in China. "Bulgarian wines are superb, but are unknown to the Chinese market. We need to make a campaign to promote Bulgarian wine as a single brand, but to do this all Bulgarian wineries should make a joint effort. The market is so large that all will benefit if the Bulgarian wine become a trend," said Mr Wong.

Kostadin Djatev, Deputy Executive Director of IBA "The biggest interest in the investment conditions in Bulgaria that we have met was in Shanghai. Specific requests connected to the presented investment projects were received. We gave answers to questions, related to the legal framework for implementing foreign investments, opportunities to obtain permanent residence in the country by foreign investors, the conditions for obtaining land in industrial zones."


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Anelia Baklova, Director, “Marketing” Directiorate "The forum in Seoul made big interest to number of business leaders, heads of international companies and representatives of business associations, bringing together many companies. It was stated an interest for building a plant for automotive parts, for setting up joint ventures in the field of information technology, to break into third markets, as well as stepping in Bulgaria by financial institutions of the Republic of Korea. At the event was expressed intention for research of investment opportunities in the field of spa tourism. "

KOREAN COMPANIES INTERESTED IN PRODUCING AUTO PARTS, ESTABLISHING FINANCIAL INSTITUTIONS AND SOFTWARE COMPANIES IN BULGARIA

Executive directors, managers, decision-makers, representatives of the banking sector and journalists from the Republic of Korea came to the forum, organized by InvestBulgaria Agency (IBA) on the 14th of November at the "Lotte Downtown" Hotel in Seoul to learn about the investment environment in Bulgaria. Mr. Petar Andonov, Ambassador Extraordinary and Plenipotentiary of the Republic of Bulgaria to the Republic of Korea outlined the government priorities in attracting investments. "Bulgaria and Korea are highly competitive in the field of software development, which is an important prerequisite for an active partnership between companies from both countries under the concept of the so-called “creative economy”, implemented by the Administration of the President of the Republic of Korea, Park Geun-hye", said Ambassador Andonov. In a congratulatory address to the participants the General Secretary of IBA Boyan Hitrov reviewed the trade and economic cooperation between the two countries and emphasized the huge potential for development. Anelia Baklova, Marketing director at IBA, presented the investment climate and the competitive advantages of

Bulgaria. She introduced to the audience the investment conditions in the country, with a focus on the support for the investors, provided by the Bulgarian state. "The people in Bulgaria are the reason why it is worth to come to Bulgaria - smart, intelligent, educated, fluent in foreign languages – you will find such employees in our country", said Mrs. Baklova. She added that the labour costs are still the most competitive, not only compared the other EU-Members, but also to some Asian countries. The same thesis was supported by Ms. Heydzhu Lee, CEO of "Asia Invest". She presented the first successful project

of the company in the field of renewable energy and a new project - creating a farm for clean mushrooms in the village of Telish. She stressed that she has received support by the Bulgarian state and gave an example with the cooperation with the “National Company Industrial Zones", which had provided land for the development of the new project. The Chairman of National Company Industrial Zones Mr. Valery Andreev presented the opportunities to investors, provided by the company and gave examples of already completed projects. Georgi Stoev, Chairman of the Bulgarian-Korean Economic Cooperation Council, introduced detailed information regarding the possibilities offered by the EU funds that can be accessed by Korean companies during the programme period 2014-2020. The Senior Vice President of the Research Lab of Korea Telecom - Kim Hee-su, expressed his admiration to

Bulgarian talents in the field of software development and mathematics. He pointed out the prospects for establishment of joint ventures between Korean and Bulgarian companies in the aforementioned fields for joint penetration into the African markets. The presentations led to a number of specific issues – the condition of the financial market in Bulgaria, the economic regulations in Bulgaria, the possibility for development of high-tech parks and more. There was a specific interest in the production of car parts in Bulgaria and the opportunities that the country provides for development of balneology and spa tourism.


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IN THE USA THE INVESTORS GAINED NEW INFORMATION ABOUT THE INVESTMENT OPPORTUNITIES IN BULGARIA

H.E. Elena Poptodorova, Ambassador Extraordinary and Plenipotentiary of the Republic of Bulgaria to the United States of America, underlined the importance and necessity of this type of events, in her welcoming speech to the participants in the investment forum "Bulgaria: Grow your business", held in Boston and New York. Mrs. Poptodorova added that the investment forums’ aim is to provide detailed information about the benefits of the Bulgarian economy and the business climate in the country. Mrs. Poptodorova invited representatives of the American business to be active and to make the necessary steps towards learning about the economic situation in Bulgaria. Mr. Svetoslav Mladenov, Executive Director of InvestBulgaria Agency (IBA), focused the audience's attention on the advantages and opportunities that the Bulgarian market and economic environment provide. The main reasons for American business to expand operations in the country were highlighted. The American companies

that states intentions to develop business in Bulgaria would meet eagerness for effective cooperation and support. The moderator Thomas Higgins, co-owner and managing partner of Empower Capital, with more than 15 years experience in the implementation of business projects in Bulgaria, gave a clear message to the representatives of US companies to be more decisive in the realization of investment plans and business projects in Bulgaria. The priority sectors for investment were presented: Information Technology, Business Process Outsourcing and services, Electronics and Electrical engineering, Transport and logistics, etc.

The leading panelists with major experience of working in Bulgaria gave their examples of successful implementation of investment projects. IBM, C3i answered the question why they are growing in Bulgaria and Mr. Valentin Georgiev, Executive Director of the American Chamber of Commerce in Bulgaria, summarized the advantages of the country, which the American business is seeing. The audience received a clear and immediate view of the economic environment in the country. Many questions were asked and they were answered by the panelists. The main interest was towards the working environment and quality of the labour force, education, investment and tax incentives for investors, investment legislation, administrative relief, and the development of the respective sectors.

WHY BULGARIA

Boyan Hitrov, Secretary General of IBA "Emphasis in the forum held in Boston, was the desire to invest in areas with high unemployment and incentives, that could benefit investors in these areas. There were expressed views in that respect, that Bulgaria is more attractive destination than other competitive countries. Strong interest raised the presentation of the industrial zones."

Boyan Hitrov, Secretary General of IBA "US investors asked questions about hiring professional staff and manpower, and the language skills of the workforce. Mr. Kevin Aspegren, President of the American University in Bulgaria, expressed his admiration for the exceptional skills and abilities of the Bulgarian students in the acquisition of knowledge and their high linguistic culture, which any investor can count on. There was specific interest towards the incentives for priority investment projects and infrastructure projects, which the state is planning for the next three years."

On behalf of Boston Science and Technologies, and on my behalf, I would like to thank you for the invitation to participate in the events, organized by Invest Bulgaria Agency in Boston and New York. It was a pleasure to participate in the discussion forums together with you and the other guests, to share their views and their belief that Bulgaria is developing in a way that complies with the European and the world trends. Definitely that was the impression of the American guests at the event as well, which is a good indication for the short- and long-term success itself ... Кrasimir Marchev, President


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EKKEHARD NEUREITHER

Country Manager of ABB Bulgaria LTD

“Bulgaria has proven over the years that it has a good investment

environment. Moreover, having in mind our previous positive experience

in Petrich and Rakovski, we have started new projects in Sevlievo and

once again in Rakovski. One of the main advantages of Bulgaria is that

the operational cost are still very competitive. This doesn’t mean only

cheap, but it also means highly efficient. The industry is interested in

costs for labour, services, energy, etc. and they are still not expensive in

Bulgaria. Even if costs for labour or energy rise, I think that Bulgaria will

keep its competitiveness, because efficiency will rise as well and the

margin between revenue and costs will be large enough. Another

important factor regarding competitiveness is the business environment

as a whole which is still very attractive in Bulgaria.”

STEFAN YORDANOV

CFO at Lufthhansa Technik Sofia

“Since our company was founded in Bulgaria we invested a lot; we provided

a lot of workplaces for highly qualified workers and we are proud that we

had the opportunity to develop our business exactly in this county. The place

was chosen among many others mostly because of the strategic area in which

Sofia is located, the developed aviation industry and the highly qualified

professionals that we have found here. Moreover, the business climate in

Bulgaria is good for foreign investors. The combination of all these factors

makes Bulgaria very attractive destination for the foreign investors.”

*Statements, extracted from interviews for Invest Bulgaria Bulletiin

SPIROS NOMIKOS

Executive Director Solvay Sodi & Deven AD

“Major advantage for attracting investments is, of course, the low level

of direct taxation. I would like however to emphasize that this is not

enough by itself to attract foreign investment. As I have repeatedly

emphasized, when Solvay shareholders decided to invest in Bulgaria,

the corporate tax was 35%. Therefore, it is necessary to ensure

predictable and stable investment environment, with a clear long-term

vision for economic development and reduced administrative burden.”


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ECONOMIC NEWS – BUSINESS, INVESTMENTS, TRADE

1105.6 mln. Euro FDI in Bulgaria for the period January - September 2014

1105.6 mln. Euro (2.7% of GDP) are the attracted FDI in the Bulgarian economy from January - September, announced from Bulgarian National Bank (BNB). These are preliminary, unrevised data, specified the Bank, adding that the current data will be revised in the statement of attracted investment from January to October 2014 For the same period in 2013 the economy has attracted FDI 1,160.7 mln. Euro (2.8% of GDP). This are already revised data. If we compare these volumes the result will be 55.1 million euro less investments than the same period last year. If the data is compared with the preliminary data of the same period last year, it would be quite a different picture. The announced volume for the first nine months of 2013, was 854.4 mln. Euro (2.1% of GDP), which is an increase of 29.4%. Investments in equity capital during January-September 2014 are about € 259.4 million or 506.4 million Euro less than the equity capital raised during the same period in 2013 (765.7 million. Euro). The unrevised data for attracted private equity for the same period last year, showed that under this item are entered 618.3 mln. Euro. The incomes from the investment by foreign persons in real estate in the country are 83.1 mln. EUR, while they are 118.9 million Euro in January - September 2013. The investments in other capital in January - September 2014 are 721.8 mln. Euro, while for the same period in 2013 they are only 321.7 million. Euro. On the basis of preliminary data on the financial result, reinvested earnings for the period are estimated to 124.4 million. Euro, while they are 73.3 million for the same period in 2013. By country, the largest direct investments in Bulgaria for January - September 2014 are from Austria(EUR 284.2 million). The largest net negative flows for the period were towards Luxembourg (EUR -19.6 million). By branch, the largest investments for January – March 2014 were in real estate, renting and business activities (EUR 354.1 million), transport, storage and communication (EUR 246.3 million) and financial intermediation (EUR 159.5 million). By preliminary data of Bulgarian direct investments abroad in January - September 2014 are 243.2 mln. Euro.

ECONOMIC INDICATORS

Foreign Direct Investments, January-August (2013/2014), mln. euro

Source: BNB

Inflation measured by CPI by months

Source: NSI

Interest rates and volumes of time deposits in BGN up to 1Y

Source: BNB, MF

GG debt and fiscal reserve

Source: MF

I


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Three of the top five outsourcing companies will start operations in Plovdiv Three of the top five outsourcing companies will start operations in Plovdiv in the next few months, announced Ivan Totev, mayor of Plovdiv. Details of the investment intentions of the 3 companies will be revealed on 30 October when in Plovdiv will take place the business forum "Outsourcing Destination Bulgaria". About 100 representatives of companies from the IT and outsourcing industry are expected to attend the event.

http://www.plovdiv.bg/

The investments in commercial real estate increased by 54% The investments in commercial real estate in Bulgaria - mainly retail and office centers, have reached 114 million euro from the beginning of the year until the end of September. This is 54% more than all of 2013, announced the consulting company "Forton". Two months ago another consulting company - "Colliers" gave data on 26 million euro in investments in such properties in Bulgaria for the period January to June, but a week later corrected it to 36 million euro. The two companies expect growth in this market in 2015 and as main drivers of demand are considered the technology companies, business process outsourcing and the development of e-commerce.

http://www.trud.bg/

Bulgaria and Romania to sign memo for two new bridges on the Danube Bulgaria and Romania are going to sign a memorandum for the construction of two new bridges across the Danube at Nikopol-Turnu Magurele and at Silistra-Kalarash. Construction works for the new facilities will be financed by Bulgaria-Romania 2014-2020 Programme for Cross-Border Cooperation, announced the Ministry of Transport, Information technology and Communications.

bnr.bg

8000 new subsidized jobs open in Bulgaria 8000 new jobs will be financed under the project “Employment Support” realized by the National Employment Agency. The first framework agreements with employers have already been signed and by the end of October some 5000 unemployed would have jobs, according to the Employment Agency. The Agency has reported a record-high interest by employers. Requests for opening of more than 21 500 jobs have been received in labour offices across the country for a period of just three weeks.

bnr.bg

SOFIX: 01.10.2014 – 30.10.2014

Source: bse-sofia.bg

BGREIT: 01.10.2014 – 30.10.2014


BGBX40, BGBX40 TR: 01.10.2014 – 30.10.2014


BGTR30: 01.10.2014 – 30.10.2014



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Devnya Cement launches new production facility Devnya Cement launches new production facility, announced the Italcementi Group, the owner the company. The value of the investment, which was certified with "Investor Class A" in 2012 was over 160 million euro. "This investment is the largest in Bulgaria over the past 25 years. It will help us to improve production efficiency and to be in accordance with the best technology to protect the environment. The new plant will allow us to meet the domestic demand, as well as the demand in Eastern Europe", said Carlo Pesenti, CEO of Italcementi Group. The new facility will start operating at full capacity in early 2015. It will produce 4,000 tons of clinker per day and 1.5 million tons of cement annually.

IndustryInfo.BG – the portal of the Bulgaria industry

Bulgaria has the second lowest public debt in the EU Bulgaria has the second lowest public debt in the EU, according to the latest revised data of Eurostat. At the end of 2013 the debt of the EU-28 amounted to EUR 11.55 trillion or 85.4% of GDP and grows compared to previous years. The lowest debt as a percentage of GDP was recorded in Estonia (10.1%), Bulgaria (18.3%), Luxembourg (23.6%), Romania (37.9%), Latvia (38.2%), Sweden (38.6%) and Lithuania (39%). Even with the loans taken in 2014 Bulgaria is still before Luxembourg in terms of government debt as a percentage of GDP.

www.Standartnews.com

VMware will double its Bulgarian unit The American software company VMware will double its unit in Bulgaria over the next few years. The company will open a new center for professional services and integration that will serve customers of its products and virtual services. The company has already hired a new building near its current office at "G.M. Dimitrov" blvd., and it is expected to employe 50 people by the end of the year and at the end of the next, the number is expected to reach 150 people. At the same time VMware will increase the specialists in the research center. The company's plans are to double the staff from 500 to 1000, this number will be reached by "several years."

www.capital.bg

SELECTED DECISIONS OF THE GOVERNMENT

OF THE REPUBLIC OF BULGARIA FOR THE PERIOD

01.10.2014-05.11.2014 Г.

05.11.2014 THE GOVERNMENT APPROVED

THE PROJECT INNOVATIVE

STRATEGIES FOR INTELLIGENT

SPECIALIZATION OF

BULGARIA

BULGARIA OPENS HONORARY

CONSULATE IN THE SECOND

ECONOMIC CENTER OF JAPAN

MEMORANDUM OF

COOPERATION IN

AGRICULTURE BETWEEN

BULGARIA AND AZERBAIJAN

IS APPROVED

"BH AIR" IS THE BULGARIAN

CARRIER, WHICH WILL FLY TO

KUALA LUMPUR

29.10.2014 г.

IN BULGARIA WILL BE

ESTABLISHED CENTER FOR

COOPERATION IN

AGRICULTURE BETWEEN

CHINA AND THE COUNTRIES

FROM CENTRAL AND EASTERN

EUROPE

EXTENDING THE AGREEMENTS

WITH THE EUROPEAN

INVESTMENT FUND ON THE

INITIATIVE JEREMIE IS

PROPOSED FOR RATIFICATION

22.10.2014 г.

GOVERNMENT ADOPTED

DEVELOPMENT STRATEGY OF

VOCATIONAL EDUCATION

AND TRAINING


http://www.government.bg/cgi-bin/e-cms/vis/vis.pl?s=001&p=0228&n=6466&g=
































стр. 13 от 33


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A new factory was opened with a Romanian investment The executive director of InvestBulgaria Agency Svetoslav Mladenov participated in the official opening of the new factory "VERNADA" in Gorna Rosica, Sevlievo. The factory in Gorna Rosica is specialized in production of hummus based salads under an Israeli technology. VERNADA company has invested over BGN 2.5 million, half of which are European investments provided under Measure 123, and the rest of the funds are provided by its Romanian partner OCEAN FISH. The company’s monthly capacity is 45 tones of packaged salads, most of which are exported to the Romanian market. An export to Israel is being negotiated.

mi.government.bg

Bulgarian export to EU rises In the period January-July 2014, Bulgarian export to the EU rose by 3.6 percent in comparison to the same period last year and amounts to 7.8 billion euro. The major trade partners of Bulgaria are Germany, Italy, Romania, Greece, France and Belgium. Export to these countries reaches 72.3 percent of total export to the EU. Bulgarian import from the EU in the period January-July 2014 rose by 2.3 percent in comparison to the same period in the previous year and reached 9 billion euro. Foreign trade balance of Bulgaria with the EU is negative and totals in 1.25 billion euro.

bnr.bg

The greenhouse gas emissions will be reduced with € 16 million under operational programme "Energy Efficiency and Renewable Energy" The implementation of the operational programme "Energy Efficiency and Renewable Energy" will lead to reduction of the greenhouse emissions by 35 thousand tons СО2 through innovative technologies for utilization of the energy potential of RES and introduction of energy efficiency solutions into the buildings. The total budget of the programme is around €16 million, and 85% of it is formed by a financial grant (€ 13.3 million), and with an operational period up to April 2017. The initiative is supported by the Financial Mechanism of the European Economic Area on the basis of a memorandum of understanding between Bulgaria and Iceland, Liechtenstein and Norway, that is operated by the Ministry of Economy and Energy of the Republic of Bulgaria. MEE partner fromn the donor’s side is the Directorate of Water Resources and Energy to the Ministry of Petroleum and Energy of Norway.

mi.government.bg

15.10.2014 г. BGN 15 MILLION ARE

GRANTED FOR

COFINANCING THE

PROJECTS OF NRIC UNDER

OP “TRANSPORT”

BGN 8.7 MILLION ARE

GRANTED FOR

MODERNIZATION OF

SCHOOL FACILITIES

BULGARIA ACCREDITED

AMBASSADORS TO IRAN,

QATAR, KAZAKHSTAN

AND TURKMMENISTAN

08.10.2014 г. AGREEMENT FOR

ECONOMIC COOPERATION

BETWEEN BULGARIA AND

BOSNIA AND

HERZEGOVINA IS

ESTABLISHED

01.10.2014 г. BULGARIA AND

INDONESIA WILL

COOPERATE IN THE

SPHERE OF YOUTH AND

SPORT


























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Installation with a new system for production of biogas from animal manure was inaugurated in Dobri dol, Lom municipality Installation with a new system for production of biogas from animal manure was inaugurated in Dobri dol, Lom municipality. The site is worth BGN 15 million and was built for eight months by Dimitar Zorov. It ranks in the top three installations of this type in Europe. The dairy farm near Dobri dol breeds 2,200 cows, that give 28 liters of milk a day each. The most modern cow-complex on the Balkans and one of the largest in Europe, was built using company funds, financing from the Agriculture Fund and a loan from the Bulgarian Development Bank. The total investment including the installations is BGN 30 million. The farm produces its own fodder for animal feed.

http://pressadaily.bg/

GeoPost France acquired its first large package of Speedy shares The French company GeoPost made the first step towards the acquisition of a considerable minority share in the Spedy delivery company by buying 11% of its shares for the amount of BGN 12 million in a deal on the BSE – Sofia. The strategic intention of the foreign investor is to increase its stake to 25% from Speedy’s capital. The move is part of a strategic deal on the Balkans. Meanwhile, Speedy plans to acquire the GeoPost subsidiaries in Bulgaria and Romania with the aim of focusing on the development of the courier and logistic activities in the region and strengthening the connection to the European market. Currently, Speedy is expanding its capital amounting to BGN 20,5 mln. that coupled with an investment loan is going to finance an investment programme with a total of BGN 32,4 mln.

Standartnews.com

83 million euros for projects with neighboring countries CBC programs of Bulgaria with Serbia, Turkey and Macedonia for the programme period 2014 - 2020

were submitted to the European Commission. With the introduction of the full package of documents on the three programs, the Commission launched procedures for coordination and approval. It is expected that the Commission's decision will be announced by the end of the year. In the new programming period Bulgaria expects about 71 million euros in EU grants designated for funding projects in border areas. With the national co-financing of the partnering countries, the budget of the three programs totals 83 million euros. It will be invested in projects for development of sustainable tourism, environment, youth activities and development of the competitiveness of the local economy.

mrrb.government.bg

The construction of the new waste plant near Sheremetya started According to the project the current wastelands of Veliko Tarnovo, Lyaskovets, Gorna Oriahovitsa, Elena and Strajitsa will become modern parks and recreation areas, and all the waste will be processed near the current landfill near Sheremetya. The investment opens 51 new jobs, but the facility will engage in different ways almost 1,000 people. The project, known as "Regional system for waste management" is worth BGN 33,463,212.

borbabg.com

WITTE Automotive opened the new plant in Bulgaria Mr. Rosen Plevneliev, President of Bulgaria together with Dr. Manfred Pueschel, Chairman of the Advisory Board of WITTE Automotive GmbH, opened officially a new production facility in Bulgaria. “I am a president but I am also an engineer and I have to say that this plant is a very important achievement not only for Ruse but for Bulgaria”, President Plevneliev declared in his opening speech. Dr. Pueschel proudly praised: “On 10th of October 2013, we met here for the laying of the foundation stone. Today, only one year later, we are celebrating the official opening of the most modern plant of WITTE Automotive covering an area of 15,000 square meters and that inclusive the logistics infrastructure.” The amount of investment will reach approx. 10 million euro till the end of the year 2015.

witte-automotive.bg


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Bulgaria progressed to 40th place in the ranking of economic freedom Bulgaria ranks 40th out of 152 countries included in the "Economic Freedom of the World: 2014 Annual Report" prepared by the Canadian Institute "Fraser" and disseminated to Bulgaria by the Institute for Market Economics. The report presents the picture in 2012 - the latest year for which official data are available for all countries.

Bulgaria’s result this year is 7.29 points from the maximum of 10, this is a slight increase compared to last year, when the country had 7.28 points and was ranked to 49th place. Bulgaria ranks 21st among the EU countries and has the same result as Spain. Hong Kong again leads the ranking, followed by Singapore, New Zealand and Switzerland.

ime.bg

THE INVESTMENT OF “TRISA” IN BULGARIA IS SIGNIFICANT

Svetoslav Mladenov, Executive Director of InvestBulgaria Agency (IBA), Regina Escher Ambassador Extraordinary and Plenipotentiary of the Swiss Confederation to the Republic of Bulgaria and Evgeni Krastev, CEO of "Trisa" Ltd. made the first sod of the future logistical and administrative center of the Swiss company, which will be built in the Industrial Park "Sofia East" near Elin Pelin. Firstly will be built 3,000 square meters on own plot of 27,000 square meters. The President of the Bulgarian-Swiss Chamber of Commerce Boni Bonev and Yordan Yordanov, vice Mayor of Elin Pelin attended at the ceremony. "Trisa's investment in Bulgaria is significant. It is an expression of confidence in our country and is a signal to the Swiss companies that here is worth to invest", said Mr. Mladenov in his address to the participants and the guests of the ceremony. He said that the investment is of key importance both for the region and the people who will be employed at the center. The certificate Class A, that is issued for the project is a gesture of support from the Bulgarian state and the confidence that the company's presence in our country will expand", added the Executive director of IBA. In the project will be invested over 6 million euro and after the construction of the center will be created 30 jobs. "Today is a very important holiday for Bulgaria, for Elin Pelin and for "Trisa" said Her Excellency Ambassador Regina Escher. She highlighted the fact that for the first time in its history "Trisa" make an investment outside of Switzerland. Through this investment, the company plans to begin expansion of the markets in Eastern Europe, Russia and former Soviet republics. "Trisa" Ltd. is a Bulgarian-Swiss company, the only subsidiary of the company outside of Switzerland. "We have chosen for the groundbreaking Dimitrovden because St. Dimitar is a protector of the builders, and we are about to build the center. After almost 20 years successful presence on the Bulgarian market the investment decision here is to assess the importance of the country for the company and confidence in the Bulgarian team", said the manager of the company Evgeni Krastev. He pointed intention the construction to be completed by June 2015 and from September next year tens of thousands of toothbrushes and other products with the famous brand to leave from here for the whole world.


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DEAL

PROGRESS SOFTWARE IS TO ACQUIRE TELERIK FOR $263 MLN.

Photo: Yulia Lazarova

Progress Software Corp. will acquire the Bulgarian Telerik AD for $263 million. The deal will allow Progress to form a comprehensive cloud platform, where developers will create applications for any device, reported the Wall Street Journal. The company aims to transform itself into a preferred destination for application developers. The deal will make both companies stronger and more capable to help the individual developers and companies to build advanced applications, added "Telerik". The company will keep its identity and its current name. "Telerik" is the largest software developer in the country, founded 12 years ago by Svetozar Georgiev, Vassil Terziev, Boyko Yaramov and Christo Kosev. It currently has over 650 employees in Bulgaria and offices in Canada, the UK, Germany, Australia and India.

www.investor.bg


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INVESTMENT PROJECTS IN PROCESS OF REALIZATION

“KORADO – Bulgaria” AD The factory for radiators and heating “KORADO – Bulgaria” AD will invest BGN 25 million in its manufacturing base in Strazhitsa. The company aims to increase its product range and thus, to strengthen its leading position in the country and abroad. The Executive Director eng. Irji Rzheznichek revealed that part of the facilities are to start operating this year. "From the beginning of the year we have started the installation of the second modern line that is fully automated and is over three generations ahead from the existing one. This will expand the production capacities. We will introduce to the market that kind of variety and madels that are currently delivered to the facilities in the Czech Republic. The first investment amounts to about 3 million euro. Production is to begin at the end of the year and the capacity is for around 650 000 units per year", revealed for “Pressadaily” Mr. Rzheznichek.

Source: www.pressadaily.bg

SE Bordnetze Bulgaria The plant in Mezdra, that produces cables for the Automotive industry, will create 800 new jobs. This is part of a new project for expansion of the capacity of the facility. The management of the company envisages this to berealized by the end of next year. The vacant job possitions are for installers, specialists and supervisors in the departments of quality management and planning. The plant in Mezdra opened in early 2008. The company is a supplier of components to the international automotive industry. It produces cable sets for a variety of automotive platforms. The plant currently employs over 1,100 people in the municipalities of Mezdra, Vratsa, Roman, Slatina and Borovan. The company plans to also start employing people from the municipalites of Cerven Briag, Zlatna Panega, and Rumyantzevo.

Source: www.kmeta.bg

“Provident Financial Bulgaria” OOD Consumer loan company Provident “Financial Bulgaria” OOD will strengthen its presence in Bulgaria and for this purpose it intends to increase its investment in the country to BGN 12 million during the current calendar year. So far the company has invested in the Bulgarian market BGN 6.7 million, reported Money.bg. The company started its business in Bulgaria in September 2013 and currently has operating subsidiaries in Sofia, Plovdiv, Varna, Burgas, Stara Zagora, Shumen, Veliko Tarnovo, Pleven and Ruse. Reportedly, its client portfolio includes 5,000 customers served by 300 employees. The future investments of Provident Financial is designated to seek expansion of the customer base up to 100,000 people and presence in 30 cities. For this purpose, 1,200 employees are expected to be hired.

Source: www.Money.bg


http://www.pressadaily.bg/

http://www.kmeta.bg/

http://www.money.bg/

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HEADLINES FROM THE EUROPEAN INSTITUTIONS

Open days: “Growing Together” - EU regions and cities put the theory into practice with investment plans for 2014-2020

See more

The European Commission and data industry launch €2.5 billion partnership to master big data

See more

Employment: “Progress Microfinance” loans €182 million to over 20,000 entrepreneurs for establishing start-ups and expansion of facilities

See more

Commission adopts detailed rules on contributions of banks into the restructuring funds

See more


http://www.investbg.government.bg/en/news/eu-news-open-days-growing-together-eu-regions-and-cities-put-the-theory-into-practice-with-inves-991.html?page=2

http://www.investbg.government.bg/en/news/eu-news-european-commission-and-data-industry-launch-2-5-billion-partnership-to-master-big-data-992.html?page=2

http://www.investbg.government.bg/en/news/eu-news-employment-progress-microfinance-loans-worth-182-million-given-to-over-20-000-entrepreneu-993.html?page=2

http://www.investbg.government.bg/en/news/eu-news-commission-adopts-detailed-rules-on-contributions-of-banks-to-resolution-funds-994.html?page=2

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ANALYSIS OF SECTOR

Transport mechanical engineering- automotive parts manufacturing Mechanical engineering is an industrial sector with great economic importance. It is a basic industrial sector in Bulgaria, actively contributing to the development of the national economy and revolutionizing the spheres of material production. That’s why it is reasonably believed that the mechanical engineering is the "industry core”. Our country’s history of the industrial sector is relatively short. By the end of World War II mechanical engineering in Bulgaria had been one of the lagging industries, which due to lack of own metallurgical base, minimum needs of machinery and equipment, small size of the country and impossibility to compete against the developed countries in international markets. There were only a few small engineering enterprises and workshops (total 86 companies with a personnel of 1000 people). They mostly met the needs for rail transport, mining and military. They predominantly performed repairs and manufactured items of metal. The largest mechanical engineering factories were the Muelhaupt and Co. JSC’s factory for farming and milling machines in Ruse, the military workshops in the towns of Lovech, Karlovo, Kazanlak, the railway factories in Sofia, Ruse and Drianovo, the mining workshop in Pernik, the factory for blowers in Debeletz and the shipyards in Varna, Rousse and Bourgas. In the years following World War II the capacity of mechanical engineering increased, new enterprises were built and the existing ones were expanded. The branch structure of mechanical engineering was formed during the years 1960-1980, when the influence of the “international division of labour” factor was manifested. Mechanical engineering branches such as device manufacturing, radio frequency engineering, electrical engineering, organizational machinery and automotive engineering became more popular. By the year 1990 mechanical engineering in Bulgaria had ranked first among the industry. The sector experienced particular problems after the changes had occurred and the country's transition from a planned to a market economy. Today Bulgaria is one of the most attractive destinations in Europe regarding investments in the production of automotive components and parts.


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The automotive engineering in Bulgaria is one of the priority sectors and with great potential for growth. For the past five years export of automotive components has estimated to be approximately BGN 3 billion which is about 14% of the country’s total industrial output. In Bulgaria there are currently about 100 companies in this sector. Different kinds of automotive parts and components for brands such as BMW, "Mercedes", "Audi", "Ford”,” Volvo", "Peugeot", "Renault", "Dacia" and others are made in their plants. The manufactured parts and components include upholstery, seats, cables, parts for air conditioners and motors, microchips, rubber seals, glass, spring, electronics, filters, aluminum profiles, belts, etc. Until 1989 Bulgaria’s main trade partners are the CMEA countries. After the dissolution of this Union country felt an acute need for new larger markets. Since the accession to the European Union in 2007 the country’s export has mainly been directed to member states. Over 75% of the total volume of manufactured goods, which was estimated to be BGN 25 billion in 2013, is exported to this part of the world. Bulgaria’s main trading partners in the EU are Germany, Italy, Romania, Greece, France and Belgium. Other major trading partners of the country are the United States, China, Russia and Turkey. Trends in the mechanical engineering in the EU and Bulgaria show that by 2020 the deficit of cadre will deepen both in a quantitative and qualitative matter. When the mechanical engineering in Bulgaria overcomes the crisis the deficit of skilled and qualified employees will continue to grow. Exacerbating the problem within the EU, expanding and liberalizing of the labor market in the EU, enlarging and easing migration process in the EU will all create additional conditions for the movement of skilled labour to other countries that offer better living and working conditions. The predicted increase in the number of employees in 2020 compared to 2013 is 15%. It is expected that in 2020 the number of employees in the sector will reach 36,000 people. In accordance with the accepted initial conditions a 35-percent increase in the turnover can be expected in 2020 compared to 2013. The expected growth in the added value for the same period is 34.4%. The ratio between skilled and unskilled personnel willl change from 5:1 to 6:1, i.e. about 83% of the employed will belong to the category of qualified staff. Development of the mechanical engineering in Bulgaria is a prerequisite to believe that in the future it will continue to be a major economical force of the country. Bulgaria’s perspectives are related to the introduction of new technologies in the production process and attracting new investment in the sector. These factors would make the country a regional leader in manufacturing automotive components. Changing the export direction towards the Middle East is also an opportunity for the Bulgarian mechanical engineering. Threats to the development of the industrial sector are mostly related to the lack of skilled and qualified labour. This is a serious obstacle and needs quick response of both the state and private sector, but to achieve the desired results there has to be an interaction between both paries.

1924 The bodywork workshop in Botevgrad produced the first bus

1925 2 aircraft plants were created in Bozhurishte and Kazanlak

1936 The production of the first Bulgarian trams started in Sofia

1951 The first electrocar was manufactured

1966 Assembling of the cars Moskvich, FIAT 850 and FIAT 124 began in “Balkan” plant

1969 Assembling of the cars Renault 8 and Renault 10 began in Plovdiv

1974 Mass production of the “Chavdar“ buses began in Botevgrad

In the period between 1970 -1989 electrical engineering, electronics and mechanical engineering were rapidly developed in Bulgaria. There were 730 factories, 430 000 employees (35 000 engineers) and 5000 scientists in 30 research institutes.The leading role of machine engineering contributed for 30% of the total country manufacture in the late 1980’s.


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In 1987 the production of industrial forklift trucks reached about 89 000 units, which represented more than 20% of the world production. Nowadays, the industry is concentrated on manufacture of cars, vehicles and auto-components; manufacture of home appliances and machines for the food industry; hydraulics; metal casting; weapons; etc. Compared to 2007 there was a 134-persent growth of the sector’s FDI in 2010. An average annual amount of the FDI for the last 5 years has been approximately EUR 65 mln. 11% of the university students are enrolled in related programs. Currently there are more than 50 000 employees in the industry working in more than 1500 companies. Bulgaria in the center of the emerging automotive cluster of CEE. The Transport and logistics cluster in Bulgaria combines all modes of transport: Land (Road and Rail), Air and Water (Sea and River).

MAJOR INVESTORS IN THE SECTOR Integrated Micro-Electronics Inc. Established in 1993 as EPIQ, since May 2011 it has been part of the international group Integrated Micro-Electronics (IMI). It employs 2800 people. The company is specialized in the design and production of electronics and electro-mechanical modules and systems for the automotive industry. IMI subcontracts for well-known names in the automotive sector, including Valeo, Denso, Brose and EF. Montupet The French-based company established its plant in Russe in 2006. It employs 260 people. The plant is for the production of aluminum head gaskets, wheel rims, engine and chassis parts for Audi, Renault, Peugeot, Citroen and Ford. The plant is exporting parts to car factories in Germany, Turkey, Romania, the Czech Republic and Slovakia. Great Wall

Great Wall Motor Company, one of China's biggest automotive manufacturers, started car production in 2011. The plant in Lovech has an annual production capacity of 50,000 units, it employs more than 200 people and assemble four different models – a sports utility vehicle (SUV), a pickup and two passenger car models, which are expected to be sold in EU countries.

Johnson Controls Their technology center was established in 2001 and employs about 500 people. It provides project support and delivery of automotive software development and validation, hardware solutions design and prototyping, mechanical engineering services and global IT support. Ixetic The German company built its plant in Plovdiv in 2009 and employs 620 people. The main product of the plant in Plovdiv is the steering system equipment for companies like Audi, BMW, Daimler, Porsche, Renault, Toyota, Volkswagen and Volvo. SE Bordnetze The German company, started operations in Bulgaria in 2002. It produces equipment and parts for the electrical system for a variety of automobile platforms and employs 1800 people. Yazaki It started operations in Bulgaria in 2008. The Japanese company produces equipment and parts for the electrical system for various companies in the automotive industry. The company has currently 2 plants in Bulgaria and planns to build a new one. With its 3,400 employees, the Yazaki’s plant in Yambol is one of the biggest companiy’s factories in Europe.


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INVESTMENT OPPORTUNITIES OF MUNICIPALITY SANDANSKI

Municipality Sandanski

Area: 998.4 км²

Mayor: Аndon Totev

Tel: 0746/ 89 090

Fax: 0746/ 89 055

e-mail: [email protected]

Web site: http://sandanskibg.com/

The Sandanski municipality, with its 998.4 square km., is the largest municipality in the Blagoevgrad province, third in the South-West region and ninth in the Republic of Bulgaria. The municipality covers 54 villages – the towns Sandanski and Melnik and 52 villages. Located among the majestic Pirin mountain and the bordering with Greece and Macedonia mountains Slavianka, Ograzhden and Maleshevska, it occupies a large part of the vast Sandanski-Petrich valley in the picturesque valley of Struma river. The first class road E-79 Sofia-Thessaloniki-Kulata and the international railway line Sofia-Athens-Kulata pass near the town. Sandanski is located 160 km away from Sofia, 150 km away from Thessaloniki (Greece) and 250 km away from Skopje (Macedonia). The town is easily accessible for tourists from all around the world through international airports in Sofia and Thessaloniki. An important advantage of Sandanski is its exceptional transitional-mediterranean microclimate. Its fame as the best natural health station for asthma in Europe is not accidental. Located at 220-240 m. above the sea level, the city is known as the hottest town in the Republic of Bulgaria with an average annual temperature of 13.9 °C, the lowest average relative humidity in the country - 66%, with the longest duration of the sunshine - 2,506 hours, with fewest foggy days per year - an average of 5. The average annual rainfall is 513 mm. The mild climate of Sandanski has attracted people since ancient times. This is the reason the town’s rich history of 3200 years of habitation and unique archaeological heritage. The region has a good tradition in viticulture and winemaking. The municipality of Sandanski has a number of wineries that offer wine routes for tourists. During the transition planning period 2007-2013 the Sandanski Municipality, as most Bulgarian municipalities, realized many European projects in different fields, which estimated the amount of over BGN 30 million, through the operational programs of the Republic of Bulgaria. The main areas, which the municipality works in, are improving the infrastructure, the environmental and water protection, waste management, creating new social services, development of culture and tourism. Under Operational Programme "Regional Development 2007-2013," the Sandanski Municipality implements projects for "Rehabilitation of road IV-10903 Melnik-Karlanovo-Rozhen from km. 0+000 to km. 6+000 ", "Establishment of social center in the building GHG "Yane Sandanski" – in Sandanski, "Correction of Sandanska Bistrica River - Sandanski Park City", "Creating Archaeological Park - Sandanski" from three cultural values, categorized as national significance, "Renovation and equipment of the hospital "Saint Vrach"- in Sandanski, "Development of the regional tourist product and marketing of the municipalities Sandanski, Petrich and Strumiani", "Creating a protected home and center for family-type accommodation in the village Vulkovo, Municipality Sandanski", "Development of an integrated plan for urban regeneration and development the town of Sandanski. " Experts from the administration of the municipality in cooperation with the management, are working on two major and essential municipal projects under the Operational Programme "Environment 2007-2013": technical assistance for investment project "Construction of the second cell of the regional landfill for municipal solid waste


mailto:[email protected]

http://sandanskibg.com/

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for the municipalities Sandanski, Strumiani and Kresna", "Preparation and construction of WWTP - Sandanski and rehabilitation and extension of water supply network of the town of Sandanski". Of course the Sandanski municipality is working to develop the rural areas as well, therefore it has implemented and applied for several projects with the "Program for Rural Development 2007-2013" - "Reconstruction of the water supply network of the village of Petrovo, Municipality Sandanski", "Creating MIG - Sandanski for realization Leader approach of the EU", "Implementation of the local development strategy MIG - Sandanski "," Reconstruction of the water supply network of villages Damyanitsa New Delchev and Sandanski municipality Stoja". For realizing the project "Creating MIG - Sandanski for realization Leader approach of the EU", Sandanski Municipality applied for and managed several projects: "Construction of pedestrian access from tourist sites to City Park - Sandanski", "Construction of recreation center and outdoors sports in city Park - Sandanski", "Building a playground in Sandanski", "Enriching a traditional village fair in Sklave presenting the Roman restorations, associated with local legends of the Thracian Spartacus, with the aim of capitalizing on local folklore and cultural heritage for tourism ", "Children's playgrounds, sports fields, renovation of the museum building, building a bicycle lane, holding a traditional festival and others in the settlements in Sandanski municipality". To improve the quality of life of the residents and the tourists, Sandanski Municipality has implemented projects under the "CBC" between Bulgaria – Greece and Bulgaria - Macedonia, Sandanski Municipality has renovated: ropes in Sandanski park, landscaped street market for agricultural products, partially renovated cultural center, a large major renovation of the City boarding (accommodation facilities, based on nutrition, learning, sports training) with a swimming pool of Olympic dimensions using mineral water. Turning the site into "Eco Campus" for year-round use, conducting sports training and competitions and more. Sandanski Municipality shares the successful social projects, implemented under the Operational Programme "Human Resources Development" - "Modernization of the home for children and young people with multiple disabilities in the village of Petrovo, by creating conditions for curative education and social therapy for tracking successful adaptation and integration of these children and young people", "Provision of services in the domestic environment in the municipality of Sandanski for adults who are in partial or complete inability to self and are at risk of social exclusion" and "Ensuring the functioning of the established project under the OPRD protected home and center for family-type accommodation. " Ambitions of Sandanski Municipality are to continue to implement large-scale projects in the next programming period of 2014-2020, financed by the European Union, fulfilling the objectives and priorities of the municipality of Sandanski, stipulated in the strategic plans.


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Municipality Sandanski Population Total for Sandanski Municipality 2013

Population (number) 39 922

Birth rate (number) - 131

Mechanical growth - total (number) - 251

Leading companies by sales income (BGN thousand)

Company 2013

Blagoevgrad BT JSC - Blagoevgrad 246 892

Leaf Tobacco-A.Mihailidis JSC - Sandanski 57 019

Pirin Tex SPLTD - Gotze Delchev 48 850

Balkanstroy JSC - Razlog 41 275

Pirin Tex Production SPLTD - Gotze Delchev 31 090

Leading companies by profit (BGN thousand)

Company 2013

Blagoevgrad BT JSC - Blagoevgrad 14 195

LKV Dimov SPLTD - Blagoevgrad 1 696

Color Foods SPLTD - Petrich 1 542

Cable Sat West LTD - Blagoevgrad 1 497

Ilakati Textil LTD - Petrich 1 261

Blagoevgrad Province Area 6 449 sq. km.

Population Total for Blagoevgrad Province 2010 2011 2012

Population (number) 325 870 322 025 320 160

Natural increase - from 1000, ‰ -1.7 -2.1 -2.6

Economic indicators and labor market

Total for Blagoevgrad Province 2010 2011 2012

Employees under labor contracts (number) 86 088 88 086 87 591

Average annual salary of employees under labor

contracts (BGN) 5 683 5 990 6 271

Economic activity rate - 15-64 years (%) 68.8 70.5 73.0

Employment rate - 15-64 years (%) 64.9 64.6 65.4

Unemployment rate (%) 5.8 8.4 10.4

Registered unemployed as to 31.12. (number) 18 961 18 689 21 218

GDP (BGN thousand) 1955.5 2157.4 NA

GDP per capita (BGN) 5982 6682 NA

Foreign direct investment in non-financial enterprises, as to

31.12. (USD thousand to 2006 - incl./ EUR thousand - after

2007)

251 985.2 257 517.3 306 899.0

Cost of acquisition of long-term tangible assets

(BGN thousand)1) 342 999 396 641 354 424

Turnover (BGN thousand) * 3 836 155 4 456 777 4 750 769

Produced output (BGN thousand) * 2 863 954 3 280 979 3 538 757

Value added at factor cost (BGN thousand) * 821 121 928 330 992 912 1

* Data are calculated by the methodology of Structural Business Statistics ) Incl. purchase of land


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UNIVERSITY OF NATIONAL AND WORLD ECONOMY

The University of National and World Economy (UNWE) is the eldest, the largest and the most prestigious higher economic school in South Eastern Europe, a leader in the Bulgarian and European higher education and science. In a regular and distance form of learning at the UNWE are educated more than 20 000 Bachelors (in 47 specialities - 10 of them in the English language) and Masters of Science (in 100 specialities including the joint ones with foreign universities) as well as nearly 300 Bulgarian Doctoral students. The UNWE is organized in eight Faculties: General Economics Faculty, Finance and Accountancy Faculty, Managemenet and Administration Faculty, Business Faculty, Economics of Infrastructure Faculty, International Economics and Politics Faculty, Applied Informatics and Statistics Faculty and Law Faculty. The university has 33 Departments as well as an Institute of Postgraduate Studies Division (having a Center for Facultative Education and School for Foreign Languages Training), Center for Distance Learning (having Regional Centers in Haskovo and Plovdiv), Institute for Intellectual Property and Leadership, Entrepreneurship Development Institute, Inter-University Center for Career Development, etc.

In 2012 the UNWE for a second time (after 2006) has obtained the highest assessment among all Bulgarian universities from the National Agency for Assessment and Accreditation for the next six years (till 2018). The UNWE is a leader in the economic, political and legal sciences. Its scientists are among the vanguard of the Bulgarian and world scientific thought. The university participates in lots of national and international projects. The UNWE has highly competitive positions in the Bulgarian and European educational market. Traditionally, the UNWE has the largest number of prospective students and a record number of excellent students in comparison with the other higher schools in the country. Despite the demographic decline, in the current year the university is the only one in Bulgaria which suceeded to fill all available places for state admission of students. By the National Insurance Institute data 97,5% of graduates from the UNWE succeed to find professional realization at the labour market. The state and private employers accept UNWE as a guarantee for an excellent preparation and high professionalism of its graduates. Since its establishment 94 years ago and up to now the UNWE forms the Bulgarian national elite. Its lecturers and graduates are prominent scientists, state figures, Prime Ministers, Ministers, deputies, politicians, ambassadors, mayors, public figures, businessmen, bankers, etc. Over the last years six of its graduates have been Prime-Ministers of Bulgaria including also the first woman Prime-Minister. The UNWE is a coordinating university for Bulgaria in the Central European Initiative for Inter-University Relations and it cooperates with more than 100 universities from Europe, America and Asia. The UNWE incorporates the most modern world educational practices in the education of its students. At the university are implemented multi-media lectures and seminar studies. There is multi-media equipment in all halls. The elaborated computer lectures and exercises are sent to students by a unified system whereby each student of UNWE is given a personal e-mail valid for an unlimited period.


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Since its establishment 94 years ago and up to now the UNWE forms the Bulgarian national elite. Its lecturers and graduates are prominent scientists, state figures, Prime Ministers, Ministers, deputies, politicians, ambassadors, mayors, public figures, businessmen, bankers, etc. Over the last years six of its graduates have been Prime-Ministers of Bulgaria including also the first woman Prime-Minister.

The UNWE is a coordinating university for Bulgaria in the Central European Initiative for Inter-University Relations and it cooperates with more than 100 universities from Europe, America and Asia. The UNWE incorporates the most modern world educational practices in the education of its students. At the university are implemented multi-media lectures and seminar studies. There is multi-media equipment in all halls. The elaborated computer lectures and exercises are sent to students by a unified system whereby each student of UNWE is given a personal e-mail valid for an unlimited period.

The UNWE is the first and the only university in Bulgaria implementing an electronic testing at all levels: prospective student exams, semester exams, controlling tests and state exams. The overall management of the academic process is implemented by a computer system. An electronic timetable for students and lecturers is elaborated on the base of electronic academic plans, electronic protocols for each exam are generated, the digitally signed electronic protocols of assessments are entered directly into the computer system and each student receives immediately an SMS containing the assessment in the certain discipline. There is also made a computer system giving information in a real time for the administrative status of each student: a timetable for lectures and exercises, passed and unpassed exams, upcoming obligations in the academic process, etc.

1700 Sofia, Hristo Botev Students Town

www.unwe.bg


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OPERATIONAL PROGRAMMES

Operational Programme “Human Resources Development” 2014-2020 (HRD OP) Main commitment for the Operational Programme “Human Resources Development” (HRD OP) in thecurrently ending programme period, as well as in the upcoming one, is to provide access to funding from the European Social Fund. In this regard, the HRD OP retains strong prioritization, focusing on the limited set of important policies in employment and social inclusion problems. This, firstly, is to combat unemployment among vulnerable groups in the labor market, with particular emphasis on young people, long-term unemployed and older people. Next, the priority of the program is to increase the adequacy of skills of workers estimated to the actual needs of the business. The program will contribute to poverty reduction and social inclusion stimulating direct efforts towards socio-economic integration of the most marginalized groups and communities, active inclusion of people furthest from the labor market integration of people with disabilities and the deinstitutionalization of children and adults. Also, as far as the achievement of these results requires a well-working policies and institutions, the program will provide support for existing modernization of public policies in the field of labor market, social enable, health, non-discrimination and equal opportunities. In the period 2014-2020, the HRD OP will have a lot more money for employment policies and social inclusion. Funds allocated for the programme are estimated to be about 1 092 million euro or approximately BGN 2 136 million, including national co-financing. Within the programme the target funds from the EU budget, which are estimated to be just over 55 million euro, will be used to the so called "Initiative for Youth Employment". The total amount of funds to support young people is BGN 257.7 million. The programme will mostly provide support for the employment policy. The appropriations of approximately BGN 1 266 million are nearly 60% of the programme funds. About BGN 659 million are intended for support of social inclusion policies which is 31% of the programme funds. In order to improve the institutional capacity, about BGN 86 million are allocated whis is 4% of the programme recources. Employers are included as eligible beneficiaries under Priority Axis 1 "Improving access to employment and the quality of the jobs" under HRD OP 2014-2020. They could be involved in the implementation of measures for the recruitment and training of unemployed persons, providing apprenticeship/internships for the young people. With this assistance, the employees are expected to increase the relevance of their skills to the actual needs of the business and to continue working or take better jobs afterwards. The support will specifically be focused on persons aged over 54, and those with secondary or lower education.


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Enterprises will be supported for adapting the human resources in priority sectors in the country. Investments will be provided for improving the work conditions and the work organization with a focus on small and medium enterprises. During the 2014-2020 programming period, substantial financial resources will be allocated within the framework of the operational program, which the so-called Youth Guarantee will be supported by. This is an initiative, which allows the Member States to ensure that all young Europeans will receive job offers; continue their education, professional practice (apprenticeship) or training within four months after leaving school or after becoming unemployed. In this regard, a strong accent on the support of measures for reducing the youth unemployment is placed within the new Operational Programme for Human Resources Development in the 2014-2020 programme period and it already contains measures for the sustainable integration of young people between 15 and 29, who are neither in employment nor in education or training in the labour market. HRD OP 2014-2020 intentionally will invest in providing seed capital for entrepreneurial ideas among unemployed and employed people willing to start their own business, in addition, will be provided practical skills and related services to support the sustainability of the initiative. The employers are eligible beneficiary under Priority Axis 2 "Reducing poverty and promoting social inclusion". This axis will be directed at integrating the marginalized communities in public life; active involvement by improving the quality of life of vulnerable groups by replacing institutional model of care with social services in the community and promoting the social economy and social enterprises. The new programme will also continue to support the development of social economy, it will provide funds for the start of new and development of existing social enterprises, including municipal. As far as the problems of socio-economic integration of the most marginalized populations are complex, it will be implemented an integrated approach, combining interventions in each of the following areas: 1) improving access to employment; 2) improving access to education; 3) improving access to social and health services. It should be taken into consideration that beneficiaries could realize measures in additional direction, aimed at development of local communities and overcome the negative stereotypes. In that direction local capacity for implementation of measures for socio-economic integration of the marginalized communities will be developed. Conditions for improving the society attitudes and awareness of the problems of these communities will be created. Under Priority Axis 4 "Transnational cooperation" the employers will have the opportunity to participate in measures, related to the exchange of information and experience, mutual learning, capacity building, implementation of coordinated joint actions and dissemination of the results achieved within the priority axis transnational cooperation. The managing authority of OP HRD 2014-2020, continues its efforts for reducing the administrative burden and facilitating the beneficiaries. The application of simplified costs will be an innovation. For the programming period 2014-2020 an opportunity for electronic application and reporting is stipulated. What is also new is that during the period 2014-2020 the so-called "Equipment" will be eligible cost for the European Social Fund. At present, the Managing Authority of OP HRD 2014-2020 is in negotiations with the European Commission for approval of the final version of the program. The approval is expected to be given by the end of the year. The employers will be able to find actual information on the matter as well as newly started operations on the following website: www.esf.bg.


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INTERVIEW

TOMAS JINDRA, General manager of

WITTE Automotive Bulgaria

THERE ARE FEW POSITIVE STEPS MADE AND THE NEXT

WILL COME SOON

Mr. Jindra, Your Company is a world

leader into the production of parts for the automotive industry, please

tell us little bit more for the company“.

“WITTE Automotive” is on the

Bulgarian market since 2008. Which are the reasons to choose Bulgaria

and to realise the investment project?

What is the total number of the

investment of „WITTE Automotive“ in BG till now?

Tell to the readers of InvestBulgaria for the new plant, that you opened

soon?

WITTE Automotive Bulgaria EOOD is a daughter company of WITTE Automotive GmbH- Germany. The company is founded in Velbert (nearby Duesseldorf) by Ewald Witte in 1899, and main activity of initial production of latches for suitcases. First steps into the automotive industry were made in 1935, by fittings for Volkswagen. Since 1992 the competitiveness is assured with the establishing of WITTE Nejdek in the Czech Republic- which is the first investment abroad. Expansion of global presence by founding a Strategic Alliance with the American partners STRATTEC Security and ADAC Automotive as VAST - Vehicle Access Systems Technology.WITTE Automotive offers to the custommers the full service in production of different locking systems, front and rear modules, latches, lock system, handles, seats latches etc.

The decision to come to Bulgaria and to realise the investment project in Ruse was made after evaluation of the detailed project. The project included evaluation of the quantitative and qualitative figures of many countries. In the second step in the same way were checked the regions of the four preselected countries. From that Bulgaria and town Ruse became the selected one.

The total number of the investments during the entire 6 years period and put into the accounting books is more than EUR 10 million ). But let us not forget the investment that we make into the training and preparation of our employees, bringing them the know-how and essential of the automotive world. We are transferring the knowledge and rules, which company into the hard automotive world can not exist without. It is rather long and hard process, which I think is the most important investment and the specialists can make a rough calculations only.

After almost two years after start up the first steps in Bulgaria with the new company, the Headquarters of WITTE took the decision to rent a pretty new production building, In May 2010 WITTE Automotive Bulgaria EOOD transferred and installed the first 2 machines for production of small parts, called WITOLs, and step-by-step we reached the full capacity of the building by the middle of 2012. The Bulgarian company showed good results and progress, based down on which the Owners took the decision to invest into own facility. We bought the land in December 2012, which was agricultural status and passed the procedure to change it into industrial, to prepare the design and project of the building and to finish the construction activities within 9 months, which used to be rather ambitious plan and nobody believed that we will keep the terms. The new building is designed to cover the modern requirements of the automotive industry and to bring pleasure and excellent working conditions to the employees and workers of Company.


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Which world marks and markets your

production is dedicated to?

Do you foresee new working places

established with the enlargement of the activity of the company. How

many employees do you currently have in your company?

Do you have difficulties by the

recruitment, does the BG education correspond to the needs of the

business ?

How do you evaluate the conditions

of making business in our country- strong and week sites of Bulgaria ?

Based down your experience in our

country, would you give advice how to make Bulgaria more competitive

and attractive to the foreign investors into the automotive sector?

is designed to cover the modern requirements of the automotive industry and to bring pleasure and excellent working conditions to the employees and workers of company. We have been successful by moving and transferring the entire production from the rented to the new building for more or less 1 month, without making interruption and problems to our Customers, which was our target and we are proud of the free capacity of the new building will be filled in by new projects, which are under preparation or almost to the end of the preliminary tests and will be installed here. This of course means enlarging the number of specialists and workers too.

As a part of VAST alliance, WITTE Automotive supplies almost all markets world wide. WITTE Automotive Bulgaria via the mother company is reaching the relevant clients, such as: VW, Audi, Seat, BMW, Ford, GM, Volvo, etc.. We reach not only the European destinations, but such as Korea, , China, Mexico, etc. from Bulgaria.

The current total number of the employees in WITTE Automotive Bulgaria is app. 320. By reaching the full capacity of this first stage of the project, it is planned to over come 600 in steps.

You know, Bulgaria has no much experience into the automotive industry. The development of this sector of the Industry is rather 'young' here, which is causing the main problems may be. Good news is that by the contacts with the University we see the willing to try to adjust their programs in accordance with our needs. Of course we realise that it is a long process and the results will come in steps.

To make such an evaluation is not that easy. Let us say that all countries and nations have their own specifics, and when these specifics are in compliance with those of the foreign investors, than the positive results are coming soon.

Would be better to try to reduce the administrative procedures- by numbers and duration, as much as possible, which will help the investors not to loose their willing to come. To try to explain the lower levels of the administration (Municipal or Governmental) the importance of the investments and to train them how to support the new comer. Could be better to have a trained person, how will support and guide the Investor and protect him from loosing time mainly. But I feel it is realised by the Government and there are few positive steps made, and the next will come soon.


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CHAMBERS OF COMMERCE IN BULGARIA

Bulgarian-Korean Committee for economic cooperation

The Bulgarian-Korean Committee for Economic Cooperation was established in 1990 between the Bulgarian Chamber of Commerce and Industry /BCCI/ and the International Private Economic Council of the South Korea with national councils to both organizations. The first session of the Committee was held in Seoul. In 1992, by mutual agreement the Bulgarian-Korean Committee for Economic Cooperation went to the Chambers of Commerce and Industry of Bulgaria and South Korea respectively. The Committee aims to contribute to the expansion of bilateral trade and economic relations, to stimulate business contacts, exchange of trade delegations, seminars, workshops, training of personnel, participation in fairs and exhibitions. The Committee consists of representatives of banks, companies, organizations interested in long-term development of bilateral relations. Chairman of the Korean Committee is currently Mr. Hyun Yul Choi, from the Bulgarian side is Mr. Georgi Stoev, Vice President of BCCI and co-chairman is a designated Deputy Minister of Economy of the Republic of Bulgaria. With the assistance of the Committee a number of events were held: business delegations, forums, presentations and trainings for the development of bilateral relations. In 2009, BCCI, together with the Korean Chamber of Commerce and Industry /KCCI/ and Bulgarian - Korean Committee for Economic Cooperation organized a business delegation accompanying the President of the Republic of Bulgaria Mr. Georgi Parvanov during his official visit to the Republic of Korea / 24-27 October 2009/. Numerous visits were organized in Bulgaria - visit of the mayor of the town Sihyung with 9-member delegation, including the President of KCCI /April 2004/, delegation led by the mayor of the town.

Chunguon /June 2005/, visit of the mayor and the President of the CCI of Guro district of Seoul /June 2009/, visit of Mr. John Huang Chung, Minister of Land, Transport and Maritime Affairs /March 2010/, visit of the Mayor and representatives of Municipality Gangseo-gu of Seoul /November 2010/, annual meetings of the Committee in Sofia and Seoul, parallel business forums and discussions on topics of mutual interest. An important event in our bilateral relations with South Korea was the business forum with the participation of both Prime ministers /September 2011/. In November was held investment forum "Bulgaria: Expand Your Business" in Seoul, organized by the IBA and the Bulgarian-Korean forum organized by BCCI in Sofia. After Bulgaria's accession to the EU, Bulgarian managers had the opportunity to participate in a training program for managers in Korea - Executive Training Programme - ETP www.etp.org, supported by the European Commission. For the period of 2007 - 2009 Coordinator of the program was EUROCHAMBRES, from the Bulgarian side - partner was BCCI, together with the Committee. The Bulgarian-Korean Committee for Economic Cooperation at the BCCI participates in the consulting group on a review of the free trade agreement between the European Union and South Korea and in the presentation of investment opportunities of Korean companies in Republic of Bulgaria, together with InvestBulgaria Agency and the Ministry of Economy and Energy.

Sofia 1058 9 Iskar Str. Chairman from Bulgarian side: Georgi Stoev, Vice – president of the Bulgarian Chamber of Commerce and Industry


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MACROECONOMIC INDICATORS

Foreign Direct Investments in Bulgaria EUR mln

Net cash flow - annual data

Years 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

980 1850.5 2735.9 3152.1 6221.6 9051.8 6727.8 2436.9 1151.2 1330.2 1141.7 1156.7

Net cash flow – quarterly data

2013'Q3 2013'Q4 2014'Q1 2014'Q2

Quarters 336.2 -3.9 446.7 304.5

Net cash flow – monthly data

2013 2014

IX X XI XII I II III IV V VI VII VIII

Months -13.2 10.8 253.8 -268.5 90.0 131.2 225.5 98.1 144.8 61.6 234.9 235.3

* Data is updated (as to 12.11.2014 г.) Source: BNB

Main economic indicators EU – Bulgaria – South Korea European Union Bulgaria South Korea

GDP (purchasing power parity) $ mln 15 850 000 [2013 est.] 104 600 [2013 est.] 1 666 000 [2013 est.]

GDP - real growth rate % 0.1 [2013 est.] 0.5 [2013 est.] 2.8 [2013 est.]

GDP - per capita (PPP)

$ thousand 34.5 [2013 est.] 14.4 [2013 est.] 33.2 [2013 est.]

Industrial production growth rate % -0.3 [2013 est.] 1 [2013 est.] 2.5 [2013 est.]

Labor force Mln 228.6 [2013 est.] 2.551 [2013 est.] 25.86 [2013 est.]

Unemployment rate % 10.5 [2013 est.] 11.6 [2013 est.] 3.2 [2013 est.]

Budget surplus (+) or deficit (-)

% of GDP -3.2 [2013]² -2.4 [2013 est.] 0.7 [2013 est.]

Public debt % of GDP 85.4 [2013]² 18.4 [2013 est.] 35.8 [2013 est.]

Inflation rate (consumer prices)

% 1.5 [2013 est.] 1.5 [2013 est.] 1.1 [2013 est.]

Current account balance $ mln -34 490 [2011 est.] -182.3 [2013 est.] -55 690 [2013 est.]

Export $ mln 2 173 000 [2012 est.] 27 900 [2013 est.] 557 300 [2013 est.]

Import $ mln 2 312 000 [2012 est.] 32 880 [2013 est.] 516 600 [2013 est.]

Reserves of foreign exchange and gold $ mln 863 800 [12m 2011] 20 690 [12m 2013] 341 800 [12m 2012]

Debt - external $ mln 15 950 000 [12m 2012] 37 850 [12m 2013] 430 900 [12m 2012]

Stock of direct foreign investment - at home

$ mln 246 207 [2013]³ 54 210 [12m 2013] 152 300 [12m 2013] Stock of direct foreign investment - abroad

$ mln 250 460 [2013]³ 1 939 [12m 2013] 223 200 [12m 2013]

Source: CIA /www.cia.gov ² Eurostat/ http://epp.eurostat.ec.europa.eu/ ³ World Investment Report 2014


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UPCOMING EVENTS

24 November

2014

Palais Niederösterreich,

Vienna

11th Vienna Economic Forum – Vienna Summit 2014

3-4 December

2014

Sofia, Bulgaria

Bulgaria Economic Forum Bulgaria on the EU road to 2020

4 December

2014

Mandarin Oriental Hotel, London

The CIO Forum

21-24 January

2015

Davos-Klosters, Switzerland

World Economic Forum Annual Meeting 2015

22-24 January

2015

Karpacz, Poland

9th ENERGY FORUM (2015)

Coming soon


http://www.biforum.org/event-52.html

Documents

INVESTBULGARIA AGENCY PRESENTED THE INVESTMENT … · HIGHLIGHTS InvestBulgaria ... Mr. Ivan Stoimenov, manager of the Bulgarian-Nordic Chamber of Commerce and a ... Bulgaria were