July 28th, 2011,
Issue 237




UNCATD’s World Investment Report 2011

Poland the 6th most attractive investment location in the world. Kraków the best for BPO projects. In Poland, the UNCTAD’s Word Investment Report 2011 was launched on July 26th, 2011 at the Polish Information and Foreign Investment Agency (PAIiIZ).

Poland’s significant rise in this year’s UNCTAD's Investment Report (5 points up from the 11th position in 2010) confirms the country’s strong position on the international investment scene - Poland was only preceded by world greatest economies of China and the USA and ranked before Germany and the UK. Despite the fall in FDI inflow to Poland in 2010 (from USD 13.7 bn to USD 9.7 bn) in 2011 FDI recovery and upward tendencies in the inflow can now clearly be seen - FDI inflow after the first 5 months of the year totalled EUR 4.2 bn i.e. 86% of the inflow recorded in the first 5 months of 2010 what accounts for 62% of the whole 2010 FDI inflow to the country. In the European context the upward trend has already found confirmation in this year’s annual survey of Investment Attractiveness of Europe launched by E&Y in June 2011. The report says that last year Poland recorded the highest increase in the number of FDI projects across Europe - 40% more than in 2009.

The general upward trend finds reflection in the activities undertaken by the Polish Information and Foreign Investment Agency (PAIiIZ). In the 1st half of the year PAIiIZ managed to successfully close projects worth twice as much as projects closed by the Agency in the 1st half of 2010 - an increase in value by 124% from EUR 377.24 mln to EUR 845.5 mln in 2011. The 1st half of 2011 saw also the average value of a single project rise from EUR 13 mln in 2010 to EUR 32,5 mln in 2011 as well as the number of jobs created by the projects (by 7%) from 6046 in 2010 to 6494 in the first months of 2011.

Kraków’s 1st position in the category of Locations for global services - Top 10 emerging cities shows that Polish cities have increasingly been perceived as the best destinations for BPO projects. The Report shows that it is the availability and effectiveness of the Polish, qualified workforce, business environment, low business-related risk and the transparency of the Polish law and fiscal systems that have been gaining recognition across the corporate and economic development executives around the world. Thanks to a similar set of features also Warsaw ranked among the 15 best new cities for business according to American Fortune.

UNCTAD’s World Investment Report 2011 predicts that the recovery of FDI flows will continue in 2011 and will reach a total of some USD 1.4 to USD 1.6 trillion, thus returning to the pre-crisis average. Thereafter, flows are forecast to rise to USD 1.7 trillion in 2012 and USD 1.9 trillion in 2013. The record level of cash holdings, low rates of debt financing and rising stock market valuations of transnational corporations (TNCs) should encourage them to expand overseas. On the recipients’ side, ongoing corporate and industrial restructuring, privatizations resulting from fiscal rebalancing efforts and unwinding of state support programmes, and the growth of emerging economies should create new investment opportunities. However, the post-crisis business environment is still beset by uncertainties. Risk factors such as the unpredictability of global economic governance, a possible widespread sovereign debt crisis, and fiscal and financial sector imbalances in some developed countries, as well as rising inflation and signs of overheating in major emerging market economies, may yet derail the FDI recovery.

From the left: Iwona Chojnowska, Head of the Foreign Investment Department, PAIiIZ; professor Zbigniew Zimny, ONZ expert for FDI and Sławomir Majman, President of PAIiIZ

In 2010, the rise of emerging economies as new powerhouses of FDI became more apparent. Developing countries and transition economies absorbed more than half of global FDI inflows for the first time. As international production and, more recently, the weight of global consumption shift towards developing and transition economies, both efficiency-seeking and market-seeking projects in those economies are on the increase. Half of the top 20 host economies for FDI in 2010 were developing and transition economies. Their outward FDI also rose sharply in 2010, climbing by 21 per cent. These economies now account for 29 per cent of global FDI outflows. Six developing and transition economies were among the top 20 investors.

In terms of sectoral patterns, FDI in services continued its downward path in 2010. All the main service industries (business services, finance, utilities, and transport and communications) saw FDI flows fall, though at different speeds. The share of foreign investment channelled to manufacturing increased, meanwhile, and accounted for almost half of all FDI projects – cross-border mergers and acquisitions and greenfield projects. Within manufacturing, flows fell in business-cycle-sensitive industries such as metals and electronics. The chemical industry, including pharmaceuticals, remained resilient through the crisis, while industries such as food, beverages and tobacco, textile and garments, and automobiles, recovered in 2010. FDI channelled to extractive industries, a sector relatively unaffected by the crisis, declined, despite the growing demand for raw materials and energy resources. (PAIiIZ/UNCTAD)

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Fortune classified Poland’s capital among the 15 best new cities for business!

Looking for smart labor, solid infrastructure, and potential customers? Go for Warsaw!

Fortune spoke to corporate and economic development executives and created a map of the best business destinations. The age and the prosperity of the locals result to be one of the major factors which attract corporations. In this context Warsaw with its 300,000 students does not have any problems with providing young, enthusiastic and educated staff. Moreover, the ranking emphasized Warsaw's attractive labour and real estate costs as well as availability of government-backed business loans.


Authors stressed also the city’s attractive location in the centre of Europe. Interestingly enough, the ranking focused also on the fact that parks and greenspace still constitute 10% of the dynamically developing city’s area what makes the capital “green” downtown a world leader in this respect. People not only do business here, they enjoy life. Check it out for yourself! (FORTUNE) 

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The next step in strengthening the Polish-Chinese economic cooperation

On the 22nd of July a meeting was held with the representatives of the Polish Information and Foreign Investment Agency and the group of the Shanghai Chamber of International Commerce.

Chinese delegation was represented by Ye Jianhua, Director of the Shanghai Jingan District Commercial Commission, He Caibiao, Deputy Director of Shanghai Kai Kai Industry Company Ltd, Li Yu, President of Shanghai Yaxiya Foodstuffs Corporation, Luo Beiyi, the Shanghai Chamber of International Commerce, Bao Wenjie, China International Economic and Trade Arbitration Commission, Shanghai Sub-commission.
The main topics of the meeting were the perspectives of closer economic cooperation, the increase of investment projects and export growth.

Chinese delgation. From left:He Caibiao, deputy director Shanghai Kai Kai Industry Company Ltd, Ye Jianhua, Director of Shanghai Jingan District Commercial Commission, Li Yu, President Shanghai Yaxiya Foodstuffs Corporation.

Ye Jianhua, Director of the Shanghai Jingan District Commercial Commission noted at the very beginning that despite the already extensive cooperation between Poland and China it is still very important to continue and intensify mutual relations.

Polish and Chinese participants of the seminar discussed the investment climate in Poland. Details of the Polish ways and methods of attracting foreign investors to Poland were presented by Piotr Grudzień, Deputy Director of the Foreign Investment Department, PAIiIZ.

Member of the PAIiIZ Board (on the left) during his meeting with the delegation of the Shanghai Chamber of International Commerce

Marek Łyżwa, Member of the Management Board at PAIiIZ stressed that he hopes that in the near future China will increase their investment value in Poland. "The potential of China is huge, we hope to strengthen Polish Chinese cooperation, both in terms of growth of Chinese investments into Poland, and in the presence of Polish companies in China."  Marek Łyżwa also noted that the PAIiIZ’s Representative Office in Shanghai will undoubtedly strengthen the Polish-Chinese cooperation. (PAIiIZ)

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PAIiIZ project will be developed in one of the special economic zones

Korean Mando decided to invest PLN 390 mln in the Wałbrzych zone.

On July 6th, 2011 the company was granted a business activity permission to operate within the Wałbrzych SEZ and bought a 13 ha plot on which the concern wants this year to start building its factory. The investing company declared that it will have invested PLN 390 million and employed 280 people by the end of 2015. In Poland the company plans to manufacture braking systems, steering column, traction control systems and shock absorbers.

The company employs over 3.5 thousand. people all over the world and has factories in Korea, China, Malaysia, Turkey, India and the USA. Mando is a supplier of companies like GM, Ford and DaimlerChrisler.
Mando is the 10th investor who decided to develop business in the Wałbrzych SEZ. This year the companies decided to jointly invest PLN 800 million in projects which are estimated to generate 700 jobs. (Wałbrzyska SEZ)

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DP Clean Tech Poland to open a project office in Gliwice

The company will hire 40 specialist in investment design and implementation

DP CLEAN TECH provides solutions for biomass power plants in the rapidly growing renewable energy industry. It provides solutions that convert incinerated waste in water vapour what produces energy and heat. DP Clean Tech Poland specializes in the production of boilers for biomass and municipal wastes incineration. This year the activity of DP Clean Tech Poland will be expanded and will include design and engineering in the Poland-based office which will be located in Auro Business Park in Gliwice. - Seeking a location for our new project, we focused on the region of Silesia due to the availability of highly educated workers. Silesian University of Technology has been educating specialists in the field of thermal energy for many years and among its graduates we are going to recruit the majority of our staff - says Stephen Gasior, Director General at DP Clean Tech Poland.

The company will occupy 460 m2 of modern office space in the AURO Business Park complex, which is part of the Katowice Special Economic Zone. 

DP Clean Tech Poland was established in 2006, its headquarters and manufacturing facility are located in Jędrzejów. A brand new production hall of 2 500 2 was opened in 2009. The new design centre in Gliwice only testifies to the company’s dynamic development. (DP CLEAN TECH POLAND/AURO Business Park)

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  • Export in the automotive sector on the increase

    April 2011 saw automotive exports amount to EUR1.64 billion (growth of 115.11 %). Growth was recorded in all 10 groups of automotive products. April saw also a high growth in exports to markets outside the EU (the dynamics of 178.83 %). Exports in the automotive sector for the period January-April 2011 reached EUR6.77 billion. Forecast of exports in the industry throughout the whole 2011 reaches EUR18.5-19 billion. (automotivesuppliers.pl)

  • Exchange rates (as of 28.07.2011):









Source: www.nbp.pl

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The Kostrzyn-Słubice Special Economic Zone has a new subzone

The subzone is located in Białogard.

The subzone extends over 14.38 ha and is located in direct vicinity of the Białogard Technology Incubator. Some of the investment plots which now form the subzone were rewarded in the Golden Site contest for best investment plots organised by the Minister of Economy and the Polish Information and Foreign Investment Agency in 2010. The subzone is covered by the spatial development plan which allows production and service providing activities. Energy grid, gas, sewerage and water supply are situated at such a distance that construction of connection terminals will not be aproblem. The subzone has access to regional road No 163 (Wałcz – Kołobrzeg) and to a national road No 6 which connects the Polish-German border crossing in Kołbaskowo with Gdańsk. The new subzone will substantially help attract new investments to the town which at the moment offers the total of 41ha of wel-developed investment plots within and outside the SEZ. (K-S SEZ)

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Comparison of salaries in regions of Poland

The trivial truth says, that a capital offers the highest salaries but it’s also worth to take a close look at remunerations of other polish regions in which the situations is not that clear.

As it is shown in the newest Salary Survey conducted by Advisory Group TEST Human Resources when it comes to wages all generalization for “Poland A” (western regions of Poland) and “Poland B” (eastern regions of Poland) are no longer valid. Starting from the center of the country: earning in the capital are higher than in any other polish city, however the rest of the Province of Warsaw (województwo mazowieckie) pays  significantly less, which influence the average wages (especially for workers).

The average monthly salary (with fringe benefits) in PLN.

We observed slightly different situation in Province of Poznań (województwo wielkopolskie). Due to the presence of large manufacturing companies and a close location to Germany, wages  are higher than in other regions of Poland.

At the other extreme we have the eastern provinces of Poland, although there are some exceptions. In recent years the Province of Rzeszów (województwo podkarpackie) attracted many foreign manufacturers (mostly in the "Aviation Valley") and automotive suppliers who made that local wages firmly stand out from the common opinion of "the poorer regions". Surprisingly, a similar level of salaries can be expected for workers in the Province of Wrocław (województwo dolnośląskie), despite the traditionally high-industrialization of the region.

Data used in the article was derived from Salary Survey (www.RaportPlacowy.pl) - the research on salaries, benefits, fluctuation and other aspects of personnel policy carried out twice a year. Over 240 companies cyclically participate in the project and more than 65 000 individual observations.

www.RaportPlacowy.pl :: www.testhr.pl

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Economic Promotion Department, tel: +48 22 334 99 49, fax: +48 22 334 99 99,
e-mail: redakcja@paiz.gov.pl
Polish Infomation and Foreign Investment Agency www.paiz.gov.pl