CROATIA Business climate and opportunities for cooperation with Finland
Helsinki, 14th December 2015
CROATIA ...
... in
i numbers
b
CROATIA 2014
Major cities (population)
Zagreb
Area: 56,594 km² Population: 4.3 million Capital: Zagreb (800,000 inhabitants)
Currency: Croatian Kuna (HRK)
Currency: Croatian Kuna (HRK)
1 EUR = 7.62 HRK, 1 USD = 7.19 HRK (December 2015)
GDP (2014): 43.1 bn EUR
GDP per capita (2014): 10,158 EUR
GDP growth (Q3 2015): 2.8 %
Inflation
fl i (2014):
(
) ‐ 0.2 %
Unemployment rate (ILO, 2014): 17.3 %
Average net salary (June 2015): 768 EUR
Export (2014): 10.4 bn EUR
Import (2014): 17.1 bn EUR
Split
Rijeka
Osijek
Z d
Zadar
0 200000 400000 600000 800000 0
10000
UK
EU (28)
Italy
Slovenia
Czech Republic
Slovakia
Hungary
Croatia
20000 30000 40000
Source: EUROSTAT
Foreign trade 2014
TOTAL TRADE = 27.44 bn Eur Export 10 34 bn Eur
Export 10.34 bn Eur Import 17.1 bn Eur
Import 17 1 bn Eur
89,5%
1,7%
5 8%
5,8%
1 6%
1,6%
0,6%
0,1%
Main partners: 1. Italy, 2. Germany, 3. Slovenia, 4. Austria, 5. Bosnia&Herzegovina… 46. Finland
Main partners: 1 Italy 2 Germany 3 Slovenia 4 Austria 5 Bosnia&Herzegovina 46 Finland (0.17%)
(0 17%)
CROATIA –FINLAND TRADE (2014)
(
)
Total amount: 47,8 mil. €
Cro Fin: 17,7 mil EUR
•
‐
0,2% of total Croatian export
(49th export partner)
electrical transformers (29%), parts for electrical motors and generators (15%), insulated wire (11%), goods served on board
planes (5%), household appliances made of iron and steel (5%)
120 000
100 000
80 000
60 000
Export
40 000
40 000
I
Import
20 000
Total
Balance
‐40 000
‐60 000
‐ boilers (13%), electrical apparatus for switching or protecting electrical circuits (8%),
paper and paperboard (6%), newsprint (5%), parts and accessories of the motor vehicles
t
d
i
f th
t
hi l (5%)
‐80 000
2014
4
‐20 000
2013
3
0,2% of total Croatian import (40th import partner)
2012
2
•
2011
1
Cro
Cro Fin: 30,1 mil
Fin 30 1 mil EUR
2010
0
0
FDI = 29.9 bn EUR
(1993 - 2015 Q2)
Financial sector
Other business …
Some of foreign companies active in Croatia
25%
11%
Wholesale trade
9%
Real estate
8%
Post and telecomm
Post and telecomm.
6%
Retail trade
6%
Chemical products
6%
Leading investors:
AUSTRIA
22%
NETHERLANDS
20%
GERMANY
9%
HUNGARY
LUXEMBOURG
7%
6%
ITALY
5%
FRANCE
5%
SLOVENIA
4%
Finland
SWITZERLAND
4%
-
NETHERLANDS… 3%
NETHERLANDS Source: CNB
0.3 mil. €
IT services
i
and
d trade
t d
CROATIA – FINLAND
TOURISM (2014)
TOURISM (2014)
No. of arrivals of Finnish tourists
 57,216 Finnish tourists = +5% 70 000
 255 thousand overnight stays = +7%
50 000
60 000
40 000
30 000
20 000
10 000
10 000
0
2010
2011
2012
2013
2014
N
No. of overnight stays
f
i ht t
400 000
200 000
0
2010
2011
2012
2013
2014
CROATIA ...
... why invest
CROATIA ‐ Your reliable business partner
p

Unique geostrategic location in Europe - linking CEE to Adriatic

Stability & safety of business activity

Highly educated, multilingual & competent workforce

Modern transport infrastructure

EU member

Possibility of using EU funds

Stimulating investment climate
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 i
investors t
Free transfer of return on equity from the country
t
• Tax incentives (reduction of profit tax to 10‐0%; regular
profit tax 20%)
• Employment E l
t grants
t (up to 18,000 EUR)
( t 18 000 EUR)
• Education grants
• initial and capital expenses
initial and capital expenses
• labor intensive investment projects
Incentives for:
•
manufacturing activities, technology centers, strategic business support and high value‐added i
i
i i i (4 plus star hotels..)
(4 l
h l )
services, tourist activities
REQUIREMENT: Minimum investment: 150,000 EUR + 5 new workplaces
Micro entrepreneurs: 50,000 EUR + 3 new workplaces
IMPROVING BUSINESS ENVIRONMENT
Act on Investment Promotion
Act on Strategic Investment Projects
Act on Strategic Investment Projects
New legal framework in construction and physical planning (no location permit, shorter period of issuing construction permit)
World Bank – Doing Business 2016 Report:
CRO 40/189
Recognized improvements:
Starting up business
Cross‐border trade
More efficient enforcement of
More efficient
judgment
Registering property
E‐construction permit
Obligatory e‐contribution payment
The Global Competitiveness
Report 2014
2014–2015
2015 CRO 77/144
CROATIA ...
...business possibilities
FINLAND & CROATIA – BUSINESS FINLAND & CROATIA –
OPPORTUNITIES
Energy sector
Energy sector
Infrastructure
Electrical industry
Food industry
M t li d t
Metal industry
ICT sector
Tourism
Telecommunications
Investment potential 1/2
INDUSTRY •
21 5% (GDP) 20 2 % of total employment
21.5% (GDP); 20.2
% of total emplo ment
•
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
•
Investment possibilities: Pharmaceutical, ICT, metal, electrical, automotive industry, wood, textile & leather processing, etc.  Croatian companies ‐ suppliers & contractors supporting the investment: tradition & quality in manufacturing; educated workforce; experienced with extensive track record on foreign
in manufacturing; educated workforce; experienced with extensive track record on foreign markets AGRICULTURE AND FOOD PRODUCTION
•
7 6 % (GDP) 5% f t t l
7.6 % (GDP); 5% of total employment, 1.3 million ha of utilized agricultural area
l
t 1 3 illi h f tili d
i lt l
•
Wide range of products (wine, olives, cereals, fish, fruits, vegetables etc.); internationally known food products – confectionary, diary products, olive oil, mediteranean fruits •
Investment potential in aquaculture and health food production
TOURISM
• Revenue: 7.2 bn EUR (16.7 % of GDP: +5%)
• 12.4 mil. tourists (+ 5.1 %); 64.8 mil. overnight stays (+ 3.3%)
• Priority – Investments in high quality tourist facilities
• Investment possibilities: Nautical tourism, Health & wellness tourism, Congress tourism
Investment possibilities: Nautical tourism Health & wellness tourism Congress tourism
Investment potential 2/2
ENERGY
•
Favourable climate & unpolluted natural environment:
 Over 2,700 hours of sunshine per year
 Windy regions by the Adriatic sea
Windy regions by the Adriatic sea
 Geothermal energy from natural sources on the continent
 Access to vast amount of biomass
 Substantial hydro‐power potential
y
p
p
•
Investment possibilities: planned increase in capacity – modernisation and construction of new powerplants (hydro power plants, thermal power plants, LNG terminal); RSE; environment protection & production of clean energy
INFRASTRUCTURE
• 3 Pan‐European corridors passing through Croatia
• 7 international airports, 26 seaports, 4 riverports
l
• 29,547 km of roads, 2,726 km of rail network
• Investment possibilities: sea ports ‐ construction of new (
,
);
p
terminals (Port of Ploče, Port of Dubrovnik); airports ‐
reconstruction and modernisation (Osijek Airport, Rijeka Airport)
CROATIA ...
... how
h
t proceed
to
d
CROATIAN CHAMBER OF ECONOMY
modern, professional institution with a 162 year old tradition
represents, promotes and protects economic interests of its members
a reliable source of information to companies
115.000 member companies
p
Professional associations
20 county chambers in Croatia
Representative offices abroad (Bruxelles, Moscow)
CROATIAN CHAMBER OF ECONOMY
Tel.:+385 1 4828 382
Fax:+385 1 4828 379
Rooseveltov trg 2
10000 Zagreb, Croatia
e‐mail: [email protected]
www.hgk.hr
We promote, we connect, we can help!