Dusan Kulka, FDI Advisor Regional competitiveness Forum, November, 2006 (Foreign Direct) Investment...
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![Page 1: Dusan Kulka, FDI Advisor Regional competitiveness Forum, November, 2006 (Foreign Direct) Investment (Regional) Competitiveness.](https://reader035.fdocuments.in/reader035/viewer/2022062421/56649d225503460f949f7ac0/html5/thumbnails/1.jpg)
Dusan Kulka, FDI AdvisorRegional competitiveness Forum, November, 2006
(Foreign Direct) Investment
(Regional) Competitiveness
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• (Overall) investment attractiveness is heavily influenced by national legislation & government performance.
• First significant investment activity has been / is mostly related to privatization of state owned enterprises.
• Followed by “spontaneous” (mostly resource and market seeking) investments investigating emerging markets’ potentials / conditions.
• If balance 1,2 and 3 provides satisfying feedback, first larger greenfield investments start searching for convenient location in the region / specific country.
• Manufacturers seeking efficiency represent vast majority of those FDI.
FDI in CEE Region
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Basic info
Indicator (2005) Ukraine Czech Republic
Population 46 930 thousand 10 232 thousand
Territory 603 700 sq km 78 866 sq km
GDP €66,48 billion €99,99 billion
GDP per capita at PPP
€6 260 €17 260
Average monthly salary €126 €639
FDI stock €14,5 billion €50,4 billion
FDI stock per capita €310 €4 932
Source: The Vienna Institute for International Economic Studies; www.wiiw.ac.at
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Export per capita in 2004
Export per capita
$0$1,000$2,000$3,000$4,000$5,000$6,000$7,000$8,000
Slove
nia
Czech
Rep
ublic
Hunga
ry
Slova
kia
Eston
ia
Lith
uani
a
Latv
ia
Polan
d
Croat
ia
Bulga
ria
Russia
Roman
ia
Turke
y
Ukrai
ne
World Europe EU15
$65.771.534.270Total exports
$32.672.195.000Total exports
Source: UNCTAD data; BermanGroup analysis; www.bermangroup.cz
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Share of export as % of GDP
Export share in GDP
0%5%
10%15%20%25%30%35%40%
Slove
nia
Czech
Rep
ublic
Hunga
ry
Slova
kia
Eston
ia
Lith
uani
a
Latv
ia
Bulga
ria
Croat
ia
Polan
d
Roman
ia
Russia
Turke
y
Ukrai
ne
World Europe EU15
Source: UNCTAD data; BermanGroup analysis; www.bermangroup.cz
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More than 600 investment projects successfully implemented
• 45% of employees in industry
• 55% of industrial production
• 65% of industrial exports
Once FDI feel happy
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High potential versus poor performance
First big efficiency-seeking investments plus growing annual inflow of FDI
Still serious obstacles:
• Problematic business climate / poor image: unstable environment, red tape, …
• Low understanding of FDI business practice
• Very limited number of market-ready investment opportunities
• Lack of professional assistance to investors
Ukraine & FDI
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Average FDI
UAH117.121
UAH57.057
Annual salesper employee
Average FDI
44%
25%
Share of exports
BAS Ukraine 2005
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BAS Ukraine 2005
Average FDI
UAH871
UAH789
Average monthly salary
Average FDI
UAH105.087
UAH39.510
16%12.7%
Investments per employee and new jobs
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• Network of large cities• Skilled and inexpensive labor
• Growing domestic consumption / markets
• Improving export performance
• Positive development in light industry and machinery
• Increasing interest of investors – productivity gains
• Slow but continual improvement of country’s business environment
• WTO accession expected
Ласкаво просимо
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