CROATIA
Business c limate and opportunities in Croatia
Croatian-Slovak Business Forum
Zagreb, 8 November 2016
CROATIA ...
... in numbers
CROATIA
Central European, Mediterranean & Danubian Country
Croatia in the
European center &
the farthest reaching
European sea inlet
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Area: 56,594 km²
Population: 4.3 million
Capital: Zagreb (800,000 inhabitants)
Currency: Croatian Kuna (HRK)
Average Exchange Rate (2015)
1 EUR = 7.61 HRK
1 USD = 6.86 HRK
Strategic position with export potential
CROATIA
2015
Major cities (population)
Zagreb
Split
GDP (2015): 43.9 bn EUR
Rijeka
GDP per capita (2015): 10,364 EUR
Osijek
GDP growth rate: 1.6% (2015)
Inflation (2015): - 0.5 %
Unemployment rate (ILO, 2015): 17.7 %
Average net salary (Aug. 2016): 759 EUR
Export (2015): 11.5 bn EUR
Import (2015): 18.5 bn EUR
FDI: 29.7 bn EUR (1993 - Q2 2016)
Zadar
0
200.000 400.000 600.000 800.000
GDP per capita in PPS (2015)
0
EU (28 countries)
Slovakia
Poland
Hungary
Croatia
Romania
Turkey
Bulgaria
Montenegro
Macedonia
Serbia
Albania
Bosnia and Herzegovina
20
40
60
80
100
GDP per capita
(EU 28=100)
Source: EUROSTAT
Foreign trade 2015
TOTAL TRADE = 30.01 bn Eur
Export 11.53 bn Eur
Import 18.48 bn Eur
88.6%
6.7%
2.1%
1.2%
0.5%
0.3%
Main partners: 1. Germany, 2. Italy, 3. Slovenia, 4. Austria, 5. Hungary… 15. Slovakia (1.75%)
CROATIA - SLOVAKIA
• Trade (2015) = 525 mil EUR
Export
Economic relations – trade
Import
Saldo
Cro export to Slovakia: 176 mil. EUR (+16%)
• 1.5% of total Croatian export (15th export partner)
349
Cro import from Slovakia: 349 mil. EUR (+22%)
• 1.9% of total Croatian import (16th import partner)
-59
-62
-61
Slovakia = Croatia’s:
 15th foreign trade partner
 15th export partner
 16th import partner
 23nd biggest investor
129
152
-120
-135
176
-174
2015.
96
2014.
70
89
2013.
157
2012.
151
129
2011.
Croatian imports from Slovakia:
Telephone sets (16.5%); petroleum oils (14.8%); monitor
and projectors (14.5%); motor cars (5.3%); data
processing machines (2.4%)
249
2010.
Croatian exports to Slovakia:
Seats (43.5%); other lether products (5%); elec.
transformers (3.4%); television receivers (3.3%);
medicaments (3.1%)
287
Economic relations –tourism
CROATIA - SLOVAKIA
450
400
350
300
250
200
150
100
50
0
Tourism (2015)
310
2012.
337
355
2013.
2014.
381
 381,000 Slovak tourists = +7.3%
 2.6 mil. overnight stays = +7%
 7th place in the overall stucture of foreign
overnight stays (6.6%)
 6.7 = average no. of nights per arrival
2015.
No. of overnight stays
Millions
Thousands
No. of arrivals of Slovak tourists
3,0
2,5
2,0
1,5
2,3
2,4
2013.
2014.
2,6
2,0
1,0
0,5
0,0
2012.
2015.
FDI = 29.7 bn EUR
Some of foreign companies active in Croatia...
(1993 - Q2 2016)
Financial intermediation
24%
Other business activities
9%
Wholesale trade
9%
Real estate activities
8%
Post and telecommunications
6%
Retail trade
6%
Manuf. of coke, petroleum
4%
real estate investments
4%
Manufacture of chemicals
4%
Hotels and restaurants
3%
Leading investors:
NETHERLANDS
20%
AUSTRIA
18%
GERMANY
10%
LUXEMBOURG
7%
HUNGARY
7%
ITALY
5%
FRANCE
5%
SLOVENIA
4%
UNITED KINGDOM
NETHERLANDS ANTILLES
4%
3%
Source: CNB
FDI per capita (1994-2013):
• Czech Rep. = 10.938 USD
• Bulgaria
= 7.934 USD
• Croatia
= 7.863 USD
• Slovak Rep. = 6.971 USD
• Poland
= 5.105 USD
• Slovenia = 4.917 USD
FOREIGN INVESTMENTS
Croatian investments to V4
(1993 - Q2 2016; mil EUR)
FDI of V4 to Croatia
(1993 - Q2 2016; mil EUR)
180
2.500
2.000
Foreign direct investment
160
168
140
2.079
120
1.500
100
80
1.000
60
40
500
318
136
0
Hungary
Czech
Republic
Slovakia
77
38
20
27
10
Slovakia
Czech
Republic
0
Poland
Poland
Hungary
Slovakia:
 1993 - Q2 2016 = 136 mil EUR
 23th biggest investor (0.46%)
 FDI in 2013 = 39 mil EUR = 11th biggest investor
 FDI in 2015 = 37 mil EUR = 11th biggest investor
CROATIA ...
... why do business
CROATIA - Your reliable business partner

Unique geostrategic location in Europe

Stability & safety of business activity
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Stimulating investment climate
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Highly educated, multilingual & competent workforce
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Modern transport infrastructure
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Long tradition in industrial production
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EU member (1 July 2013)
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Possibility of using EU funds
MODERN INFRASTRUCTURE
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3 Pan-European corridors passing through Croatia (V, Vb,
Vc; VII; X)
Croatia – a part of the future Trans – European Network –
Transport (TEN – T)
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26,958 km of roads
2,722 km of railroads
7 international airports and 2 airfields
3 intermodal terminals
•
Internationally important seaports – Port of Rijeka (among
main European sea ports), Port of Ploče
IMPROVING BUSINESS ENVIRONMENT
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Act on Investment Promotion
Act on Strategic Investment Projects
New legal framework in construction and
physical planning
Obligatory e-contribution payment
World Bank – Doing Business 2017
Report:
CRO 43/190
Recognized improvements:
Protecting minority investors
Crossborder trade
Enforcing contracts
Labor market regulation
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e-Construction permit
e-Consultations
e-Court Case
Fiscalisation
Open data portal
e-Class register
 e-Employment records &
e-Employee registration
 e-Medical Appointments
 e- Polling Place Registration
 e-Craft
 e- Residence Registration
The Global Competitiveness
Report 2016–2017
CRO 74/138
STIMULATING INVESTMENT ENVIRONMENT
 Avoidance of double taxation
 0% profit tax on reinvested capital
 Numerous incentives for business activities to investors
INVESTMENT PROMOTION ACT:
Equal rights for foreign and domestic
investors
Free transfer of return on equity from the
country
• Tax incentives (reduction of profit tax to 10-0%; regular
profit tax 20%)
• Employment grants (up to 18,000 EUR)
• Education grants
• initial and capital expenses
• labor intensive investment projects
Incentives for:
•
manufacturing activities, technology centers,
strategic business support and high value-added
services, tourist activities (4 plus star hotels..)
REQUIREMENT:
Minimum investment: 150,000 EUR + 5 new workplaces
Micro entrepreneurs:
50,000 EUR + 3 new workplaces
33,0
32,4
32,2
Finland
Austria
Germany
10,3
10,0
9,9
9,6
8,6
7,5
7,1
6,8
5,0
4,1
Slovakia
Czech Republic
Croatia
Poland
Hungary
Latvia
Lithuania
Romania
Bulgaria
13,0
Malta
Estonia
13,2
15,6
Cyprus
Portugal
15,8
Slovenia
21,2
25,0
EU28
Spain
25,7
28,1
United Kingdom
Italy
30,0
34,1
Netherlands
Ireland
35,1
39,1
France
0,0
36,2
10,0
Luxembourg
20,0
37,4
30,0
Sweden
Belgium
41,3
40,0
Denmark
51,2
50,0
Norway
Stimulating investment environment
60,0
Labour costs EUR/hour 2015
Source: Eurostat
CROATIA ...
...business possibilities
Business possibility 1/4
INDUSTRY
 21.2% of GDP (2015)
 18.5% of total employment (2015)
 Industrial production growth rate: 2.7% (2015)
 Main industrial branches (export-oriented): refined
petroleum products; manufacture of other transport
equipment; electrical equipment; chemicals and
chemical products; food products; manufacture of
fabricated metal products; pharmaceuticals
18%
5%
23%
Industry
total
income
5%
6%
17%
7%
9%
Investment possibilities:
 Pharmaceutical, ICT, wood, textile & leather
processing, metal, automotive, electrical, chemical,
plastic & rubber industry
10%
food processing and beverages
oil & refined petroleum products
chemicals, plastics & pharmaceuticals
electronic, ICT & optical products
metal products
wood processing, furniture & paper industry
transport equipment
textiles & leather
Croatian companies - suppliers & contractors supporting the investment:
 tradition & quality in manufacturing
 educated workforce
 experienced with extensive track record on foreign markets
Business possibility 2/4
Millions
TOURISM
Characterictics:
 Natural beauties
 Climate
 Geographical location
 Cultural and historical heritage
75
No. of overnight stays
70
65
60
55
50
Investment possibilities:
 Priority - Investments in high quality
tourist facilities
 Greenfield/brownfield projects
 Nautical tourism
 Health tourism
 Congress tourism
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
45
2005
Tourism in numbers (2015):
 Travel receipts (2015): 7.96 bn EUR (+7.4%)
 14.3 mil tourist arrivals in total (+9.3%)
 12.7 mil foreign tourists (+9.1%)
 65.9 mil overnight stays of foreign tourists (+7.4%)
 More than 15,500 registered companies
 85,000 employees
Business possibility 3/4
AGRICULTURE & FOOD PRODUCTION
Croatia – a country of high quality products
 6.5% of GDP; 5.7% of total employment (2015)
 1.3 million hectares of utilized agricultural area
 Wide range of products (wine, cereals, fish, olives,fruits,
vegetables etc); internationally known food products –
milk and diary products, meat products, soft drinks, water,
beer, tobacco products, olive oil, mediteranean fruits ...
 2,500 year old wine
producing tradition
 Prize-winning top
quality olive oil & wine
 Croatia can offer the world market a number of distinctive and original high quality products
 Business activities conducted according to the highest food quality and safety standards (ISO 9001,
ISO 14001, ISO 22000, HACCP, Halal, Kosher, IFS, BRC, OHSAS 18001 etc.)
Investment possibilities: healthy food production; aquaculture
Business possibility 4/4
ENERGY
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Favourable climate & unpolluted natural environment:
Over 2,700 hours of sunshine per year
Windy regions by the Adriatic sea and East Slavonia
Geothermal energy from natural sources on the continent
Access to vast amounty of biomass
substantial, mostly already engaged, hydro-power potential
Development possibilities: development of an existing hydro power plant system
(on rivers Lika and Gacka HES Kosinj/Senj II), RES; environment protection &
production of clean energy
INFRASTRUCTURE
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3 Pan-European corridors passing through Croatia, a part of
future TEN-T
7 inter. airports, 6 seaports, 4 riverports
26,958 km of roads, 2,722 km of rail network
Development possibilities: sea ports - construction of new
terminals (Port of Ploče); airports - reconstruction and
modernisation (Osijek Airport, Rijeka Airport)
PUBLIC PROJECTS
Public companies investment plan:
•
INFRASTRUCTURE
Seaports: Port of Ploče (transport and trade integration project),
Brajdica Nautical Port, Eco Marine Tučepi,
Airports: Osijek, Rijeka (reconstruction/modernisation)
Other: Gate of Zadar, Western Žabica Complex, Sports Centres etc
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TOURISM
Tourism real-estate projects (brownfield/greenfield)
Sale of state owned touristic company (Hoteli Makarska Plc)
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ENERGY
Development of an existing hydro power plant system on rivers
Lika and Gacka HES Kosinj/Senj II
PRIVATE PROJECTS
Investment projects catalogue of the Croatian
Chamber of Economy:
 An overview of investment potential
throughout Croatia
 Information on almost 120 private and
public investment projects
 Estimated value: 6 bn EUR
www.hgk.hr
www.investincroatia.hr
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tourism (acquaparks; wellness & health tourism; modernisation & renovation of existing facilities; golf tourism;
high-end tourist resorts)
infrastructure (transport infrastructure, utility infrastructure, construction of business and logistics centres)
energy (power plants producing energy from biomass, combined cycle power plant)
industry (development of innovation centres, production of construction materials, food industry, etc)
environmental protection, etc.
 Easier access to information on investment potential in Croatia
INVESTMENT SITES
• More than 100 ready entrepreneurial zones
- utility services, clear ownership, good logistic & traffic connection
• Strong support form local communities
• Additional tax reliefs:
 relief from utility tax
 lower payments for municipal services
 lower land prices
SLOVAKIA AND CROATIA – POSSIBILITIES OF COOPERATION
 Energy sector & RES
 Environment protection
 Infrastructure, transport & logistics
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Tourism
Food industry
IT Technology
Automotive manufacturing industry
Electrical industry
Machinery manufacturing &
engineering
 Joint cooperation on third markets
 EU Structural & investment funds
CROATIA
... how to proceed
CROATIAN CHAMBER OF ECONOMY
modern, professional institution with a 164 year old tradition
represents, promotes and protects economic interests of its members
a reliable source of information to companies
More than
110,000
member
companies
Professional
associations
20 county
chambers in
Croatia
Representative
offices abroad
(Bruxelles,
Moscow)
WHAT WE OFFER...
Numerous
databases
Online catalogue of investment projects
Croatian company directory – more than 110,000 active members
Business opportunities exchange
Business zones
Croatian export directory
Croatian Waste Materials Exchange
Information
On relevant regulations and laws in the field of investment and economics
On current economic situation in Croatia
On how to start-up business in Croatia
On national and local investment incentives and opportunities
Assistance
Linking investors with project holders
Facilitating communication with institutions on national and local level
Support in dealing with administrative procedures on all levels
Providing suppliers’ database & facilitating contact with potential business partners
Organizing tailor-made vistits of potential investors to Croatia
www.investincroatia.hr
CROATIAN CHAMBER OF ECONOMY
INTERNATIONAL AND EU AFFAIRS SECTOR
INVESTMENT PROMOTION DIVISION
Tel.:+385 1 4828 382
Fax:+385 1 4828 379
Rooseveltov trg 2
10000 Zagreb, Croatia
e-mail: [email protected]
www.investincroatia.hr
www.hgk.hr
We promote, we connect, we can help!