INVESTMENT OPPORTUNITIES IN THE GLOBAL OFFSHORING MARKET

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INVESTMENT OPPORTUNITIES IN THE GLOBAL
OFFSHORING MARKET - ATTRACTING THE SERVICES
INDUSTRY -
OECD Investment Compact for South East
Europe Prague, 13 December 2006
Mirela Mrvelj Strategic Planning Director
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SUMMARY

• The PAST
• The PRESENT
• The FUTURE

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HISTORY

• War (1991 1995)
• Political and economical instability in the 90s
• FDI largely by privatisation
• Lack of Investment Promotion Agency
• ? Croatia failed to attract quality FDI in the
  services industry

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CROATIAN TRADE AND INVESTMENT PROMOTION AGENCY

• ? operational since October 2005
• Government Agency of the Republic of Croatia
• Central point of contact for investors
• 30 highly educated people coming from the
  business sector
• Speaking all major languages
• Pro-business oriented

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RESPONSIBILITY

• Steering Committee

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EXPERTISE
Advisory Board
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BROAD RANGE OF ACTIVITIES
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SERVICES
WE ASSIST
WE PROVIDE

• information about economic and
• legal investment environment
• guidance through free zones
• and industrial parks
• database of available land and
• property
• organized site visits tailored to
• meet investors needs

• with all administrative licenses
• needed
• with gaining access to state and
• local incentives
• prior, during and after realization
• of investment projects

WE NETWORK

• government bodies
• local and regional institutions
• utility companies
• financial, accounting and legal advisors

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RESULTS
IN THE FIRST YEAR

• Organised presentations in
• Denmark
• UK
• Austria
• Germany
• Italy

• Over 200 inquiries
• 49 site visits
• 36 active projects
• Over 800 million EUR
• Over 1600 new jobs

• Japan
• Korea
• China
• Israel
• France

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HAPPY CLIENTS
The Croatian Trade and Investment Promotion
Agency has shown a very dynamic and modern way of
thinking. The Agency is a cooperation partner
making it possible to establish contacts to
authorities and other companies Mr. Bartosz
Stentoft Regional Manager Rockwool Adriatic
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RECOGNISED IMPROVEMENTS

• Croatia is one of the top 10 reformers in the
  World (WB Doing Business 2006)
• eCROATIA
• e-GOVERNMENT
• e-JUSTICE
• e-EDUCATION
• e-HEALTH
• e-BUSINESS
• Croatian Investment Promotion Partnership

Business environment ranking improved by 9
positions (WEF Global Competitiveness Report
2006-2007
Source WEF Global Competitiveness Report
2006-2007
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FURTHER IMPROVEMENTS

• Compulsory and free 12 years education
• Regulatory Guillotine HITROREZ
• Business Infrastructure development (PPP)
• Broadband Internet Connection Strategy

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FOCUS

• FDI promotion for top quality goods and
  services
• Transfer of knowledge and new technologies
• Sectors that bring high added value

• Information and Communication Technologies
• Biotechnology and Pharmaceutics
• Business Services

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WHO IS HERE?

• The regional centre for design of solutions in
  the field of mobile communications
• The Croatian RD Centre has been consistently one
  of the top performers in the Ericsson Group
• 1200 employees in Zagreb - all in Services
• - 500 in Software Development/RD
• - 400 in Services/Solutions
• - 300 in Telecom Systems
• 200 people working in Software Development are
  based in Split.

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AND EXPANDING

• One of the largest Software Development Centres
  in Europe
• 1068 employees in Zagreb of which 650 are in
  Specialist Software Development - PSE Division
  (Project Services Engineering)
• PSE Division was established in 1995 and has
  registered the biggest growth within Siemens
  Croatia
• PSE Croatia earned an admirable position within
  the PSE Group and is taking on more business
  responsibilities

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POSITIVE CHANGES
Transcom WW CALL CENTER (in the City of
Vukovar, eastern Croatia)
In the beginning of the first year
At the end of the first year
Decision to open two new call centers
1st CALL CENTER 80 employed
Additional 30 employees
Osijek
Pula
? Two new call centers will employ 500 young
people
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WE BUILD ON...
1. Innovativeness
Croatia has had a rich history in innovators
and the Croatian Government has demonstrated its
belief in the importance of Knowledge and
IT! Bill Gates President of Microsoft
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WE BUILD ON...
2. Effectiveness
3. Multilingualism
We have employed a highly educated work force,
with a very good knowledge of English
language. Mr. Mats Tilly,CEO TELE2 Croatia
Croats have passion to win! Ms. Maria
Radtke Director Finance Sourcing ERICSSON
Nikola Tesla Croatia
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WE BUILD ON...

• 4. Advancing ICT Infrastructure

Source Cullen Int, June 2006
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ADDED VALUE

• Whats new?
• Investors Club
• Property Database
• Projects Database
• Investment Promotion Law

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REWARDING INVESTMENTS

• The new Investment promotion Law will support
• Manufacturing
• Technology and RD Centers
• Strategic and Business Support Services

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REWARDING INVESTMENTS
Techonlogy and RD centers include development
and innovation of high-tech products and
production processes that allow further
improvments of production.

• Strategic and Business Support Services
• Customer relationship centers
• Shared services centers
• Logistic and distribution centers
• Information-communication centers
• Software development centers

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REWARDING INVESTMENTS
EMPLOYMENT INCENTIVES
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REWARDING INVESTMENTS
TAX INCENTIVES
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OTHER BENEFITS

• Free profit repatriation
• Free transfer of invested capital
• Foreign domestic investors
• Favorable conditions for infrastructure
  facilities
• Tariff exemption for import of equipment used
  for investment

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NEW INVESTMENTS

• Regional SAP Consultancy center in Zagreb
• Reasons for choosing Croatia
• Support by the State and Local Government
• Partners Network
• Experience knowledge in the products
  implementation

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THANK YOU!
CONTACTS mirela.mrvelj_at_apiu.hr www.apiu.hr Phon
e 385 (0)1 4866 001, 385 (0)1
4866011 Fax [phone] Address A.
Hebranga 34/10000 Zagreb/Croatia