Vojvodina - rav.org.rsrav.org.rs/wp-content/uploads/2019/02/RAV_brosura.pdf · Vojvodina is located in the northern part of the Republic of Serbia, enclosed by EU border from three

Vojvodina is located in the northern part of the Republic of Serbia, enclosed by EU border from three sides. With its long industrial tradition, well developed educational system and innova-tion stimulating environment it is considered to be the engine of Serbia’s economic development. As a result of its advanced hi-tech culture that positively supports innovation and economic growth, Vojvodina continues to significantly contribute to Serbian GDP creation.

The ideal geographic location of Vojvodina region, covering 21,506 square kilometers, provides excellent opportunities for production sites, logistics, and export processing zones. In addition to various Free Trade Agreements, many benefits originating from its favorable location, includ-ing the two major Pan-European transport routes (Corridor X and the Danube River), are readily available to all the companies doing business in Vojvodina.

The region of Vojvodina provides a sound investment environment guaranteed by the legislation that is in line with the relevant EU practices. Along with the number of government initiatives to proactively facilitate the FDI inflow, Vojvodina offers an outstanding support system for growing your profits, increasing productivity, and boosting competitiveness.

Vojvodina is among the most culturally vibrant places in the region. It is a home to 26 diffe-rent nationalities where 6 official languages are in use. This magnitude of multicultural density is what guarantees continuous supply of fresh perspectives and an ever-enduring ex-change of creative ideas between people that share the same values of inclusive, cohesive, and open society.

Additionally, various arts and music festivals all year round are continuously invigorating the cultural landscape allowing you to recharge your creative batteries and get in that innovation-oriented mindset.

If you seek to sharpen your competitive edge and be one step ahead of your competitors, Vojvodina is the right place to grow your profits.

www.rav.org.rs 1

2 VOJVODINA DEVELOPMENT AGENCY

Romania

Bulgaria

Macedonia

Greece

Slovakia

UkraineCzech Republic

Austria

Croatia

Italy

Germany

Switzerland

Albania

Montenegro

Serbia

Vojvodina

Hungary

Slovenia

Bosnia andHerzegovina

250km500km

750km

1000km

1250km

E-75

E-75

Novi Sad

Sava

Danube

Tisa

E-70 E-70

Belgrade

Total area 21,506 km2

Territorial organization 3 counties45 municipalities

Main sectors

AgricultureFood processing

Automotive supply industryMetal processing

ChemicalsPharmaceutical industry

Industrial production growth rate 2016/2017 7.7 %

Vojvodina export share in total Serbian export 2017 32.9 %

Export volume 2017 EUR 4.95 billion

Export growth rate 2016/2017 14.8 %

Key export sectors

Manufacturing 83.5 %Food & Beverage 17.0 %Motor vehicles & trailers 11.8 %Rubber & Plastics 9.4 %Electrical products 7.8 %Coke and oil derivate production 7.7 %Chemicals 6.7 %

Unemployment rate 13.2 %

SERBIA

Source: Chamber of Commerce and Industry of Vojvodina, NBS

Total area 88,407 km2

Population 7.04 million (excl. Kosovo)

GDP 2017 EUR 36.832 billion

Credit rating BB/Stable

Doing business rating 2018 - 43th out of 190 2017 - 47th out of 190

Unemployment rate 14.7 %

Double Taxation Treaties with 59 countries

Bilateral Investment Treaties with 39 countries

VOJVODINA

% of total export

Key export marketsEU 69.8 % RUSSIA 6.4 % OTHER 7.1 %CEFTA 16.7 %

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AirporTs Airport “Nikola Tesla” Belgrade (70 km from Novi Sad). Timisoara Airport (154 km from Novi Sad). Osijek Airport (105 km from Novi Sad).

By Air The closest airport to Novi Sad is Belgrade Nikola Tesla International Airport (70 km away), which is served by major European flight carriers and several low-cost carri-ers. Once you arrive at Belgrade Airport you can easily get to Novi Sad by pre-booking a private transfer with the average cost of EUR 30.

roAdwAys Corridor X: E - 75 highway (Greece – Mace-donia – Serbia – Hungary – Slovakia – Czech Republic – Poland – Finland – Nor-way) & E - 70 highway (Spain – France – Italy – Slovenia – Croatia – Serbia – Ro-mania – Bulgaria – Turkey – Georgia)

on roAd The ideal location and transportation in-frastructure of Vojvodina enables quick and easy access to other CEE and SEE countries. Public roads and railway lines are passing through the regional administrative center of Novi Sad with all other areas being easily accessible within a relatively short period of time. Standard speed limits which may vary are 120 km/h on highways; 100 km/h on motorways; on main roads outside built-up areas 80 km/h, and in built-up areas 50 km/h. Road toll is to be paid on most sec-tions of the highways (E70, E75), and can be paid: in cash (RSD, EUR), by credit card (Mastercard, Maestro, Visa or American Ex-press, as well as the national DinaCard) or by using electronic toll collection pass.

rAilwAys Novi Sad – Budapest (Hungary); Novi Sad – Zagreb (Croatia); Novi Sad – Thessaloniki (Greece); Novi Sad – Sofia (Bulgaria); Novi Sad – Timisoara (Romania)

By rAil Railway-road Corridor X connects Salzburg, Ljubljana, Zagreb, Belgrade, Nis and The-ssaloniki with branch in Belgrade, Novi Sad, Budapest. The railway network is well organized. Intercity trains operate between all major cities in the region.

wATerwAys Corridor VII - Danube, Sava, Tisza, Danube–Tisza–Danube canal

puBlic TrAnsporTATion Public transportation in major cities in Vojvo-dina is well established and organized, and can be used by purchasing tickets directly on the bus. In addition, taxis are quite cheap and very popular form of transport.

GEttING AROuND


Did you know that Serbia is the only country outside the Common-wealth of Independent States that has a Free Trade Agreement with russia? Additionally, if you want to gain a duty-free access to 1 billion consumer markets, we also have Free Trade Agreements with eu, ceFTA, eFTA, Belarus, Turkey and Kazakhstan.

If you are looking for the right place to set up your business while remaining close to your distribution centers – the region of Vojvo-dina offers a quick solution to optimize your operational costs while employing high-quality workforce at competitive rates.

Top-notch investment locations suitable for a wide range of activi-ties and tailored to your specific requirements provide an excellent starting point to boost your investment to its fullest potential.

The region of Vojvodina has been declared as one of the top FDI re-gions for Cost Effectiveness - allowing you to achieve the best ratio between cost and quality.

To jump-start your success and to help you get the greatest value from your investment, investors are rewarded with generous and easy-to-access incentive packages, both on state and provincial government level. We invite you to launch your investment project in the region of Vojvodina and to experience all of the advantages that make Vojvo-dina the first-choice location for growing your business.

Top quality workforce at competitive ratesLow operating expensesQuick access to global marketsBoosting profits with favorable tax systemGenerous incentives

Top 5 reasons to invest in Vojvodina12345

WHY INVESt?

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Top-quality workforceAchieve highest performance at competitive rates

optimal ratio between cost, productivity, and quality of the workforce boosting the overall competitiveness of the business environment.

Access to exceptional talent pool with multicultural diver-sity offers flexibility and adaptability for maintaining unrivalled performance levels.

There are 141 registered secondary schools from which 121 are state owned and 20 private. Teaching is conducted in Ser-bian, Hungarian, Ruthenian, Slovakian, Romanian and Croatian.

Vojvodina represents a specific hub for university education – 3 Universities (1 state – 14 Faculties, 2 private – 9 Faculties) with internationally recognized Faculty of Technical Sciences (28 undergraduate academic profiles, 33 master academic profiles).

Vojvodina boasts 57,776 enrolled students in 2016/2017 out of which 43,897 attend University of Novi Sad.

From all the applicants that speak foreign languages, most of them speak English and German, and some of them Russian, French, Spanish and Italian.

cee countries Minimumwage bruto(eur) 2017

Average monthlybruto wage (eur) 2017

serBiA 253 550romania 318.5 706Hungary 412.7 939czech republic 419.9 1,121slovakia 435 960croatia 442 1,079poland 473.3 1,020slovenia 805 1,625

% EURnet salary 391.65personal income Tax 10% 41.35contributions (employee) 19.9% 107.57Gross sAlAry 540.57contributions (employer) 17.15% 92.71ToTAl cosT 633.28

Average salary (total cost) in Vojvodina in october 2018 was € 652

LABOR COST STRUCTUREAverage salary in Vojvodina 2017

national employment service Grants

employmentsubsidies program cca. € 850 - 1,700

Apprentice program cca. € 170 - 210 per employee

re-training program max cca. € 850 per employee

Source: National Statistical Office, EurostatSo

urce

: Eur

osta

tSource: Statistical Office of the Republic of Serbia

1


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Competitive operating expenses Get on a fast track to success

Implementation of investment projects in Vojvo-dina results in a significant reduction of opera-tional costs.

Greenfield and Brownfield locations

Greenfield project Construction costIndustrial facilities (average cost) 200 - 400 EUR/m2

Business premises (average cost) 750 - 900 EUR/m2

Average land cost 3 - 10 EUR/m2

Brownfield projectExsisting business options- Lease (average cost) · Old build 1 - 2.5 EUR/m2

· New Build 3 - 5 EUR/m2

- Built to lease option- Lease with purchase optionSource: Eurostat

2

COUNTRY(prices in euros)

SERBIA

0.031

0.150

0.100

0.050

0

0.0310.030

0.064

EU 28

0.114

EUROZONE

0.121Industryelectricityprices(per kWh) 2017

Industrygas prices(per kWh) 2017

Quick access to global markets Duty free access to 1 bn consumer market

Ideal geographic location - allowing you to most efficiently implement JiT/Jis production models and to cost-ef-fectively distribute aftermarket products to the region. Positioned at the intersection point of two major European corridors - Corridor VII and Corridor X.

Only one border crossing the EU along with duty-free ex-port to a number of countries, allows companies to serve their global markets from a single location.

The region of Vojvodina is uniquely positioned for global trading offering a duty-free access to over 1 billion con-sumers.

eu (population 505 mil) - enabled customs free export of all prod-ucts bearing the Serbian origin label, excluding wine and baby beef. In addition, the EU FTA abolished customs duties and quantitative restrictions for import of Serbian textile products and guarantees to maintain the same policies in the future. Exemption from pay-ment of customs duties for all industrial products originating in the EU, and in the part of agriculture means the exemption / reduction of customs duties, depending on the Annex or the SAA Protocol in which the product is located.

russiA (population 142 mil) - All products that have a certified Serbian origin, meaning that more than 51 % of the product value has to be generated in Serbia, could be exported customs free to the Russian market. Exemption are following product groups: poul-try meat, white sugar, cheese, alcoholic beverages, cotton fabrics, carpets, monitors, motor vehicles, tractors, wooden furniture.

ceFTA (population 30 mil) - free trade agreement between Alba-nia, Bosnia and Herzegovina, Macedonia, Moldova, Montenegro, Serbia and Kosovo. Duty free trade and accumulation of origin. Ex-ported products in order to be considered of a Serbian origin, need to have undergone sufficient processing in Serbia.

eFTA (population 13 mil) - free trade agreement between Swit-zerland, Norway, Iceland, Liechtenstein and Serbia, there is no customs duties except on fish and seafood. Trade of agricultural products is regulated by mutual concessions.

BelArus (population 10 mil) - abolished custom duties and other taxes with the exception of white sugar, ethyl alcohol, cigarettes, used cars, buses and tires that will continue to be subject to taxation.

KAZAKHsTAn (population 16 mil) - mutual removal of custom duties and other taxes with the exception of poultry meat, cheese, white sugar, cigarettes, sparkling wine, ethyl alcohol, tires, cotton weaves, cooling device compressors, tractors and vehicles.

usA (population 317 mil) - duty-free entry for more than 4,650 products, including most manufactured and intermediate goods and selected agricultural and primary industrial products, has been en-abled. The products that have been excluded from this list generally fall in the categories of textile products, leather goods and footwear.

TurKey (population 72 mil) - Export is duty free, as well as import of industrial products and certain agricultural products such as: 5,000 t of beef per year as well as clearly defined quota of raw and refined sunflower oil, sunflower seeds and specific types of pastry products. The export quota from Serbia to Turkey for the particular types of frozen vegetables and prunes will be doubled.

3


Fiscal benefits

Customs benefits

Financial benefits

Benefits of local self-government

Efficient Free Zone Administration (One Stop Shop)

Advantages of doing business in the free zone regime:

Free zoneFree zone branch

Subotica Novi KnezevacKanjiza

CokaSenta

Ada

Nova Crnja

Secanj

Plandiste

NoviBecej

Becej

ZitisteVrbas Srbobran

ZabaljBacki PetrovacBac

Temerin

Mali Idjos

Kula

Backa Topola

Sombor

Apatin

Titel

Kovacica

Opovo

Kovin

Pancevo

Ruma

SremskaMitrovica

Sid

Odzaci

VrsacAlibunar

Bela Crkva

Indjija

Stara Pazova

Irig

Pecinci

Zrenjanin

Novi Sad

Kikinda

BackaPalanka

Beocin

There are 8 Free Zones in Vojvodina:1. Free Zone Subotica

2. Kikinda (Free Zone Subotica)

3. Free Zone Novi Sad

4. Free Zone Apatin

5. Odzaci (Free Zone Apatin)

6. Free Zone Zrenjanin

7. Ruma (Free Zone Sabac)

8. Sombor (Free Zone Apatin)

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Boosting profits with favorable tax systemBy choosing to invest in Vojvodina, foreign investors enjoy the benefits of a highly competitive and advantageous tax system, essential for boosting company profits. In addi-tion, favorable business and investment climate conditions contribute to a proven record of successful FDI attraction.

In general, Serbia’s tax regime is highly conductive to do-ing business. Corporate profit tax is the lowest in the region, while VAT, salary tax and social insurance contributions are among the most competitive in Central and Eastern Europe.

The base for determining the social security contributions is the gross salary. The minimum base for contributions is 35 % of the average monthly salary earned in Serbia, while the maximum base is 5 times the average monthly salary. Social security contributions are paid by both the employer and the employee.

salary Tax rateserbia 10 %

czech republic 15 %romania 10 %slovakia 19 - 25 %poland 18 - 32 %croatia 24 - 36 %

slovenia 16 - 50 %

corporate profit Tax rateserbia 15 %

czech republic 19 %romania 16 %slovakia 21 %poland 19 %croatia 18 %

slovenia 19 %

standard VAT rateserbia 20 %

czech republic 21 %romania 19 %slovakia 20 %poland 23 %croatia 25 %

slovenia 22 %Source: Deloitte 2017, European Commission

4

Social Insurance ContributionsPension & disabilityHealth InsuranceUnemployment Annual Income Tax Other Income Tax

12 % and 14 %5.15 % both employer and employee

0.75 % employee10 - 15 %

20 %

Tax holiday – 10 years tax holiday for companies which invest an amount exceed-ing RSD 1 billion (cca € 8.4 million) in fixed assets and employ at least 100 additional employees on an indefinite contract.

payroll tax incentives - employment of the people who were registered with the National Employment Agency for more than 6 months entitles employers for a sizable relief of taxes paid on net salary from the moment of employment until December 31, 2020.

Other subsidies for new employees& education

Generous incentivesGet on a fast track to success

incenTiVes oF repuBlic oF serBiA

Funds are awarded for financing investment projects in the manufacturing, service sector object to international trade, hotel accommodation ser-vices, food processing, agriculture and fishery.The awarded funds are up to 50 % - 70 %, (depending on the size of the company) of the investment amount, based on the investment value or based on the 2-year gross salary of the employees.

incenTiVes oF Ap VoJVodinA

Just as it is done on the republic level, the financial incentives within the same sectors and limitations are allocated on the provincial level.

1. subsidizing new employment · 10 - 100 new employees · 3,000 - 5,000 EUR per worker

MunicipAl incenTiVes

Greenfield - free of charge or at a discounted price

Local taxes

growing your profits

increasing productivity

boosting competitiveness

5

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In region of Vojvodina you will find all the support you need to successfully set up your investment and make sure it continues to grow.

You will easily establish relationship with all the relevant governmental institutions, as well as the business and sci-ence community. In addition to directly access the network of key stakeholders within each sector, your investment project will be fully equipped to quickly move forward.

The region of Vojvodina has a uniquely diversified economy, hosting a number of companies from different sectors. No matter which sector you choose in addition to preferential business setting, you will get the greatest support to take your success to the next level.

WHERE tO INVESt?

uNPARALLED INVEStMENt OPPORtuNItIEStrim operating cost

Maintain high product quality

Recruit highly qualified workers at competitive wages

Achieve better capital optimization

Improve performance levels

In region of Vojvodina you will find all the

support you need to successfully set up

your investment and make sure it

continues to grow.

INVEStMENt OPPORtuNItIES

Agribusiness

Automotive

ICt


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Out of a total of 1.8 million ha of agricultural land, 90 % is suit-able for intensive agricultural production (plow, orchards and vine-yards).

Relatively large quantity of arable land per person employed in agriculture (9.53 ha).

90 % of the total territory makes agricultural land (83.3 % and for-est land 6.7 %) .

0.76 ha of arable land per capita, which exceeds European average of 0.21 per capita.

Over 50,000 ha on which vegetable crops for seed production are cultivated.

Biomass represents a significant energy potential of the Republic of Serbia and it is available throughout the country. The biomass po-tential is estimated at 3,448 million toe and in the overall potential of the renewable energy in Serbia, biomass participates with 61 %.

Vojvodina with total arable land of 1,780,000 ha, which dominates over forest land, (150,000 ha) has a significant potential in terms of agricultural biomass, in particular the production of biomass from corn, cereals, soy and sunflower.

· university of Novi Sad

· Faculty of Agriculture, Novi Sad

· Faculty of technology, Novi Sad

· Institute of Field and Vegetable Crops, Novi Sad

· Scientific Veterinary Institute, Novi Sad

· Institute of Food technology, Novi Sad

Comparative advantages for the development of agro-industry in Vojvodinathe region of Vojvodina has all the ingredients you need to successfully service the fast-growing global consumer markets with premium food products.

AGRIBuSINESS

FOLLOWING INStItutIONS REPRESENt tHE ENGINES OF INNOVAtION:


Ideal geographic location for JIT/JIS production models, due to close proximity to leading car manufacturers

Access to top OEMs - 1,250 km radius

Increasing number of new investments projects in last few years

Increasing number of reinvestments

Competitive operating costs

Top technical education and availability of highly- quali-fied staff

Long-standing tradition in high-quality production stand

Cutting-edge technical education ensuring constant sup-ply of highly-qualified workforce

FOLLOWING INStItutIONS ARE ENGINES OF INNOVAtION:· university of Novi Sad, total of 14 faculties· 2 private universities, total of 9 faculties

A variety of opportunities to gear up for greater profitability indicators:

An optimal ratio between labor cost, productivity, and quality of workforce together with the fast and efficient connection to a network of Pan-European transport routes have caused many component and system manufacturers to recognize Vojvodina as a growing hub for the auto-motive industry in Europe.

uniVersiTies

· Faculty of Technical Sciences · ”Mihajlo Pupin” Technical Faculty, Department of Information Technology· Faculty of Science-Depart ment of Mathematics and Informatics

· Higher Education Technical School of Professional Studies - Department of Electrical Engineering· Higher Education Technical School - Department of Informatics and Electrical Engineering

VocATionAl secondAry scHools

· Metal processing· Car mechanics· Electrotechnical - automatics

· Electrotechnical – vehicle· Electrotechnical A/C equipment· Car electrics

AutOMOtIVE

www.rav.org.rs 15

the region of Vojvodina is increasingly becoming a hot spot for innovation-oriented ICT companies and a first-choice location for reliable, high-quality, and cost-effective alternative to more developed markets

Sophisticated solutions at lower costs

Easy access to best quality, experienced IT staff

Continues increase in number of IT students

Vast international market expertise of local companies

Strong institutional support for R&D

Excellent support through IT-oriented business incubators

Educational system harmonized with economy (market) needs

Over 250 companies in software development ranging from just a few engineers to more than 800 employed by SCHNEIDER ELECTRIC (design of power distribution management systems).

More than 50 companies in electronics manufacturing.

32 companies that are a part of ICT cluster employ around 4,000 engineers and have a total annual turnover of more than EUR 200 million.

Each year about 920 university students enroll at the Faculty of Technical Sciences (IT related studies).

PCBs (up to 24 layers), LED TV assembly lines, PIC develop-ment tools and boards, display boards, audio & voice boards, power supply boards, cable harnesses, POS terminals, hand-held terminals, chip design and verification, etc.

· Faculty of technical Sciences

· technical Faculty - Mihajlo Pupin

· Faculty of Sciences

· Faculty of Economy

ICt

SuPPORtING INStItutIONS:


Vojvodina Development Agency (RAV) is established under the jurisdiction of the Gov-

ernment of AP of Vojvodina, with aim to provide support for the implementation of the develop-

ment policy of Vojvodina, agricultural policy and rural development.

Vojvodina Development Agency (RAV) serves as a one-stop-shop for all your investment

related enquiries. Due to our close association with various state and provincial government

institutions, and our extensive network of local partners from the private sector, academic

institutions, and business associations - RAV represents your trusted source for obtaining the

most reliable information needed for making an informed investment decision.

Our services are designed to help foreign companies establish their businesses in the region of Vojvodina.

VojVodInA deVelopmenT

AGenCyyour relIABle pArTner!

www.rav.org.rs 17

DEPARTMENT FORSTRATEGIC RESEARCH

DEVELOPMENT ANDINNOVATION POLICY

Analysis and reserach of the existing resources and economic potentials

De�ning the subsidy measures for the development of the economy

agriculture, energy sectors, tourism and rural development

DEPARTMENTFOR NATIONAL AND

INTERNATIONAL FUNDSCoordination of funds

awarding on local, regional and national level

Research and promotion of all available

international funds

DEPARTMENT FOR INVESTMENT SUPPORT

DEPARTMENT FOR PROMOTION

Advisory support for domestic and foreign investments and busines incubators

Capacity building for investment promotion

Documentation preparation and application for available funds

Promotion of all existingresources and potentials

Positioning Vojvodina as an ideal investment location for future projects


SuCCESS StORIES

351€ 9.1

80,000

FOREIGNINVEStORS

BILLION FDIINVEStMENt

NEW JOBSCREAtED

www.rav.org.rs 19

The next logo here, can be

yours...

Documents

Vojvodina - rav.org.rsrav.org.rs/wp-content/uploads/2019/02/RAV_brosura.pdf · Vojvodina is located in the northern part of the Republic of Serbia, enclosed by EU border from three