Investment Opportunities in the Czech Republic

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Investment Opportunities in the Czech Republic
Petra Vítková Marketing Executive
CIS and Eastern Europe Business Forum
Tucson, November 6, 2004
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Our organization
MINISTER
OF INDUSTRY AND TRADE CR







LONDON
LONDON
CHICAGO
CHICAGO
PARIS
PRAGUE
PARIS
PRAGUE
COLOGNE
COLOGNE
YOKOHAMA
YOKOHAMA
SILICON VALLEY
SILICON VALLEY
BRUSSELS
BRUSSELS
HONG KONG
HONG KONG

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Our mission

• CzechInvest supports the inflow of foreign direct
  investment into the Czech Republic, the
  development of local companies and the creation
  of new ones by providing services, implementing
  development programs and improving the business
  environment.

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What can CzechInvest do for you?

• Collect information
• Identify sites and buildings
• Supplier sourcing JV matching
• Liase with goverment bodies
• Handle incentives applications
• After care

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Czech Republic heart of Europe
800 miles
930 miles
London
Kyev
1240 miles
Madrid
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Czech Republic New EU member

• SINGLE MARKET OF 455 million CONSUMERS

Population 2004 10.2 million
GDP growth 2004 3.1 Unemployment 2004 10.3
Annual inflation 2004 2.9 Average monthy
salary USD 632
Source Czech Ministry of Finance, July 20042004
forecast

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FDI stock per capita as of 2003 estimate
EUR BN
Sources WIIW, Wiener Institut für internationale
Wirtschaftsvergleiche, February 2004

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Selected US investments
MANUFACTURING
MANUFACTURING
LAIRD TECHNOLOGIES
FACILITY
FACILITY
JOHNSON CONTROLS
JOHNSON CONTROLS
MERITOR
MERITOR
OWENS
-
ILLINOIS
OWENS
-
ILLINOIS
STRATEGIC SERVICES FACILITY
DELPHI PACKARD
DELPHI PACKARD
PITSBURGH CORNING
JOHNSON CONTROLS
JOHNSON CONTROLS
PARKER HANNIFIN
TRW
TRW
KIMBERLY
-
CLARK
KIMBERLY
-
CLARK
PROCTER GAMBLE
PROCTER GAMBLE
BAXTER
EASTMAN CHEMICALS
ARROW
ARROW
PRAGUE
PRAGUE
BOEING
INGERSOLL RAND
INGERSOLL RAND
EDS
ACCENTURE
PHILIP MORRIS
PHILIP MORRIS
OSTRAVA
HAYES LEMMERZ
HAYES LEMMERZ
AVX
AVX
AUTOPAL
WESTVACO
WESTVACO
VISTEON
TRW
VISTEON
TRW
KIMBERLY
-
CLARK
KIMBERLY
-
CLARK
PRECISION CAST CORP.
MARS (MASTER FOODS)
MARS (MASTER FOODS)
TORRINGTON
COMMSCOPE
TCI
DURA AUTOMOTIVE
GILLETTE
DURA AUTOMOTIVE
ON SEMICONDUCTOR
ON SEMICONDUCTOR
(MOTOROLA)
(MOTOROLA)
METHODE
METHODE
TYCO
TYCO
ITW
ITW
LEXMARK
LEXMARK
IBM
HONEYWELL
TECUMSEH
TECUMSEH
BRNO
TEXTRON
TEXTRON
OTIS
OTIS
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Intellectual capital - czech universities

• total students 274 19

IT students 21 863
The figures are based on location of faculty
Prague
Opava
2 135
Hradec Kralove
104 530
Plzen
Ostrava
Ostrava
Trebíc
Brno

• Source Institute for Information on Education,
  2004

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Excellent language skills
Source Universitas, September 2002
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National Broadband Networks
Source Telecommunications operators, 2003
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Investment Incentives

• Technology Centers
• Business Support Services
• Customer Contact Centres / Call Centers
• Shared Service Centres
• Software Development Centres
• High-Tech Repair Centres
• Regional Headquarters
• Manufacturing

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Forms of support - BSS TC

• Subsidy for business activity
• up to 50 of eligible business expenses
• max. 10 years
• Subsidy for training and retraining
• up to 35 of special training costs
• up to 60 of general training costs
• max. 3 years
• max.USD 4,000 per employee

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Forms of incentives - manufacturing

• Tax incentive
• Job creation grants
• Training and retraining grants
• Land transfer at symbolic price

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Global advantage

• Composed of three basic elements
• Market Access Advantage
• Capabilities Advantage
• Cost advantage
• Increasingly, the Czech Republics
  competitiveness as an investment location is
  more dependent on factor 2 than factor 3

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Quality of life

• Prague holds the 17 th place
  among
  
• the 30 best cities for business
  in Europe

Source Cushman, Wakefield, Healey Baker, 2003

• Mercer
• Prague has the highest quality of life out of all
  cities in
  
• central Eastren Europe!

Source Mercer Human Recourses Consulting, 2003
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• Thank you for your attention!
• Petra.vitkova_at_czechinvest.org
• www.czechinvest.rg