Slovenia’s much praised trade openness means that it is integrated more effectively into the global commerce and its export driven GDP growth is partly a result of early foreign direct investments made when other countries in the region were closed to western influences. The world’s household names in manufacturing, services and financial intermediation have been around for as long as thirty years and many Slovenian start-up technology companies have foreign partners that loom large in niche activities such as sustainable energy sources, pharmaceuticals, electronics and other highly specialised fields that call for strong R&D.
The latest government incentive package is aimed at boosting development of the Pomurje region which is worth EUR 100m and attractive to investors.
Alongside investors’ favourites are: the chemical and pharmaceutical industry, information technology and communications, energy supply and distribution, tourism, environmental technologies, transport and logistics deserve to be short-listed by foreign investors.
Business practice
When foreign investors short-list locations, they compare the challenges of launching a business, the procedure, time and costs to obtain permits and licences, and to employee workers. The World Bank’s Doing Business project examines 183 selected economies to rank countries by each topic and to benchmark the rankings against regional and high-income economy (OECD) averages. Slovenia is to join the OECD in 2010 and its 53rd Doing Business 2010 rank – five places better than its rank a year earlier – is a strong endorsement. Slovenian companies:
– generate significant revenues outside their home market,
– use material inputs and/or supplies of foreign origin,
– have internationally-recognised quality certification,
– have their annual financial statements reviewed by independent auditor,
– have women in senior positions and female participation in ownership, and
– use their own website and foreign investors should look no further.
Why Slovenia?
Slovenia’s natural beauties and historical sights make it a prime tourist destination but its diversity makes it unique. As the relief changes, so do the climate, flora and fauna. From the capital city Ljubljana you can reach the ski slopes of the Julian Alps or the Adriatic beaches in just one hour.
The Slovenians foster a culture of pride in work, reliability and corporate loyalty. Technology minded and highly educated people have excellent foreign language skills.
Slovenia has longstanding links with companies from CEE/SEE countries. Fluency in local languages, knowledge of corporate culture and ever-increasing outward investment are an asset.
The two main pan-European transportation corridors intersect in Slovenia. The most northern port of the Adriatic Sea is located on the Slovenian coast. The sea transport from Asia, Middle East as well as from the Americas has the natural closest point to the CEE in Port of Koper.
The FDI Cost-Sharing Grant Scheme is designed to lower selected start-up costs under projects promising to create new jobs, apply high-tech solutions, contribute to balanced regional development or foster alliances between foreign investors and Slovenian companies.
Foreign investors can apply for financial incentives when they intend to invest in manufacturing, in strategic services (customer contact centres, shared services centres, logistics and distribution centres, regional HQs) or in R&D projects.
Incentives can be granted for up to 30 percent (up to 40 percent for medium and up to 50 percent for small companies) of the eligible costs of the investment project. The incentive beneficiary company must be registered in Slovenia with a minimum of 10 percent equity share of foreign capital.
The Public Agency of the Republic of Slovenia for Entrepreneurship and Foreign Investments caters to the needs of foreign investors. Activities are focused in various actions in facilitating foreign investors coming to Slovenia and are focused on pre-investment, establishment and after-care support.
For more information www.InvestSlovenia.org; +386 1 5891 870
