POLISH INFOMATION AND FOREIGN INVESTMENT AGENCY
NEWSLETTER
 October 23rd, 2014,
 Issue 405

NEWS

Time for modernization of investment incentives
On 23 October, during a press briefing, PAIiIZ president Sławomir Majman presented the
report on investment incentives offered by countries of CEE.

According to PAIiIZ survey, countries of Central and Eastern Europe have started to modernize investment incentive systems. “There is a clear trend toward making investment incentives more flexible”, argued Sławomir Majman. Czech Republic offers grants for strategic investments as well grants for employment and training, CIT exemption or sale of real estate at reduced price. Moreover, Czech Republic is planning to introduce about 5 Special Economic zones. The first of above mentioned incentive is similar to the instrument offered in Poland. Also Slovakia offers grants to provide business in regions with high unemployment rate as well as grants for employment, CIT exemption or lover prices for real estate. In Hungary, grants are available for investments with a highest value, for supporting the increase of employment or training as well as for establishing centres of vocation training. On the other hand, Bulgaria offers fast administrative service, preferential prices of real estate, grant for training, and support for R&D projects. Serbia’s list of incentives consists of grants for big investment projects, support for employment, CIT and VAT exemption in Free Zones.

“Few counties of the region offer very interesting instruments as grants supporting the development of vocation training that are worth to consider”, commented Sławomir Majman. Poland does not throw public money out the window. We don’t buy investors. We offer noble frugality”, summed up Sławomir Majman. (PAIiIZ)

Meeting of the Investor Club
Deputy prime minister Janusz Piechociński, PAIiIZ members of the Board and representatives of foreign and Polish companies cooperating with the Agency took part in the annual Klub Inwestora (the Investor’s Club) meeting, that was arranged on 22 October in Sheraton hotel, Warsaw.

Deputy prime minister Janusz Piechociński encouraged foreign investors and Polish business to increase their investment activity in Poland. “Recently implemented law regulations regarding contact between entrepreneurs and local and central authorities should help the business”, he argued.

“In 2014, PAIiIZ recorded the increase of the total value of completed FDI in 2014 by 237% y/y”, said Iwona Chojnowska-Haponik, director of Foreign Investment Department. “This is a unique and very good year for investing”, said PAIiIZ president Sławomir Majman. He also added that 60% of Polish exports is generated by foreign investments.

Klub Inwestora is an annual meeting gathering investors and representatives of public administration. It is also a platform of exchange knowledge and experience in terms of issues related to investing in Poland. (PAIiIZ)

Towards Zambia
Signing the MoU between PAIiIZ represented by president Sławomir Majman and Patrick Chisanga, MD of Zambia Development Agency was the first highlight of the Poland - Zambia Economic Forum. Now we can extend the cooperation. I’m proud to be engaged in Go Africa programme, added Polish MP Kilion Munyama.


Speakers of Poland - Zambia Business Forum

Signing the MoU between PAIiIZ and ZDA

”Zambia is a gateway to the continent & 5th best Sub-Saharan location to do business. FDI are developing since 10 years in Zambia. Copper mining creates the biggest opportunities. We welcome partners for new greenfield investments and those who do business in financial sector and corporate social investments,” said Patrick Chisanga MD of Zambia Development Agency. The country is one of the fastest developing economies in Africa. The average GDP growth reaches 6%. Its central location is also an advantage in attracting foreign investors.

After the official part of the Poland - Zambia Business Forum, B2B and B2G talks were arranged. The Forum has took place in Regent Hotel, Warsaw, on 20 October.


S. Majman: We are trying to go father than the European cocoon, Go Africa programme is the consequence of this strategy

More information: www.paiz.gov.pl/20141020/towards_zambia. (PAIiIZ)

INVESTMENTS IN POLAND

GM returns to three-shift system
One of the biggest investors supported by PAIiIZ - General Motors Manufacturing Poland - has just started recruiting new staff to Gliwice factory. Since 2015, 300 new employees will be involved in the production of Opel Astra next-generation.

The implementation of the new Astra in GM’s factory in Gliwice coincides with the decision to increase the production and return to the three-shift system of working. "As a result of introducing a new product and looking forward to increase the production volume, we focus on employing highly qualified and motivated staff," explains Andrzej Korpak, MD in General Motors Manufacturing Poland. Although the start of production is scheduled for the end of 2015, new members of crew will start working at the beginning of next year. Currently, General Motors factory in Gliwice employs 3,000 people where Opel’s best seller in Poland - Astra - and Cascade are produced.

The implementation of Astra’s 5th generation has been supported by PAIiIZ. The total value of the investment reached €95m. In terms of the value of investment, it was one of the biggest projects supported by the Agency in 2013. Due to that GM has been awarded by PAIiIZ as “The Biggest Investment of The Year”. (PAIiIZ)

MACROECONOMIC POLAND

  • Exchange rates (as of 23.10.2014):

Buy

Sell

USD

3.3021

3.3689

EUR

4.1827

4.2673

Source: www.nbp.pl

EVENTS

Investing in Poland 2015
On 27 October, the headquarters of Polish Stock Exchange will host the presentation of the annual report entitled “Investing in Poland 2015” issues by Warsaw Business Journal.

This is the sixth edition of Investing in Poland and the third time when the Investment of the Year Awards are given. This year’s conference has been divided in to two panel discussion. The first one is dedicated to Polish capital market while the second one will focus on issues related to outsourcing.

The gala starts at 14.30.

More information: http://wbj.pl/investing-in-poland-2015. (WBJ)

Invest in China
PAIiIZ invites you to visit Invest in China conference that will be arranged on 27 October, at 9.00 in Radisson Blu Hotel. The Agency is a coorganiser of the event. The Embassy of China took patronage over the event.

Invest in China will be dedicated to the Polish - Chinese economic cooperation. The meeting will consist of 4 panel discussions on: digitalisation as one of the most promising sector of cooperation between the two countries; the factors of the successful Polish - Chinese cooperation; law and finance aspects of doing business and challenges regarding the establishment of the new Silk Route.

More information: http://en.investinchina.pl. (Invest in China)

6th "Grunt na Medal Contest" Awards
Polonia Palace Hotel in Warsaw will host “Grunt na Medal Contest” awards ceremony. During the event deputy prime minister Janusz Piechociński will give awards to the best investment locations in Poland. The ceremony will be held on 27 October.

The contest has been attended by 136 communities that submitted 212 investment locations to the contest. The 16 winners of the contents will have the opportunity to be promoted and thus to increase chances for acquiring new investments to community.

Accreditation for media is available by 24 October until 15.00 on www.paiz.gov.pl/grunt_na_medal_2014. (PAIiIZ)

Poland - Israel seminary on innovation
On 28 October, on the occasion of the official visit of president of Israel Mr Reuven Rivlin, Ministry of Economy holds the Poland - Israel Seminary on Innovations. The meeting starts at 13.00 from registration.

The event will focus on issues related to R&D cooperation, development of high-tech industries, innovations and support for start-ups. Participant of seminar will have the opportunity to establish business contacts. Also the presentation of case studies of innovative companies from Poland and Israel with a presence of presidents Bronisław Komorowski and Reuven Rivlin will be arranged.

Polish - Hebrew - English translation will be provided.

The access to the meeting is limited and available only by fill-in the form (Polish version only). More information is provided by Magdalena Zwolińska from PARP: magdalena_zwolinska@parp.gov.pl. (Ministry of Economy)

Opportunities to do business with Angola
On 4 November at 11.00, PAIiIZ hosts workshop on economic cooperation with Angola. The meeting will be attended by the Ambassador of Angola, Mr Domingos Culolo and companies active on Angolan market.

During the meeting experts will try to answer the question why Poland is a good business partner for Angolan counterparts. The discussion will also focus on the investment process or financial securities regarding doing business in Angola. Also best areas to invest in the country will be presented.

Polish - English - Portuguese translation will be available.

Online registration by z.sadowy.sadowska@expandglobe.com.

More information: www.paiz.gov.pl/20141104/opportunities_to_do_business_with_angola. (Expandglobe)

Forum MotoSolutions
PAIiIZ took the patronage over the event entitled “Forum MotoSolutions - best practices”, that will be arranged between 20-21 November in Jawor.

During this year’s 5th edition of the Forum experts will focus on the current issues related to automotive sector in Poland and Europe as well as the impact of the biggest investments as Volkswagen’s or Polaris in Poland.

5th Forum MotoSolutions is a two - day - event addressed to CEO’s and managers of the automotive sector.

More information: www.motosolutions.pl. (MotoSolutions)

Go global: US and South America
On 30 October at 10.00, Intercontinental will host a panel discussion on business opportunities in both Americas. PAIiIZ is a patronage over the event.

During the event entitled “Go Global: US and South America”, speakers will talk about doing business in Polish companies in Americas as well as how to avoid mistakes when entering this market. Panellist will also focus on sectors with the biggest potential to grow in Americas.

The access to the event is available by 27 October by d.krawczak@rp.pl (0-22) 463- 07-57.

More information: www.rp.pl/goglobal. (RP)

ANALYSES AND REPORTS

22 Polish companies in the "Deloitte Technology Fast 50 CE"
22 Polish companies including Comperia.pl that won the second place, were listed in the 15th Deloitte’s ranking on the fastest growing Central European technology innovative companies.

This year’s “Deloitte Technology Fast 50 CE” was dominated by computer software companies. The main award went to Hungarian company Szallas.hu, specialising in online hotel booking. The second was Polish financial comparison website Comperia.pl, which last year occupied the 4th place in the ranking. Also Serbian Company High Tech Engineering Centre was placed on the podium.

It is worth noting that in this year’s Fast 50 CE Polish companies occupy a leading position in terms of the total number of companies from the same country. 22 companies from Poland were listed in Deloitte’s ranking, which represents 34% of the total number of companies. 17 Polish companies were ranked in the main category "Technology Fast 50", 4 in the subcategories "Rising Star - Rising Stars" and two in subcategory "Big Five - Big 5".

The average growth rate of CE’s Fast 50 technology companies rises to 698%, and it was much higher than last year. It means that high-tech innovative companies are dealing much better with effects of economic crisis that a years ago.

The annual Deloitte Technology Fast 50 CE awards honour the fastest growing Central European technology companies, based on the percentage of revenue growth over five-year period. (Deloitte)

How to secure Poland’s economic success
A new World Bank Country Economic Memorandum (CEM), entitled “Poland: Saving for Growth and Prosperous Aging”, has been issued. Its authors focus on how to ensure that Poland’s strong economic growth is sustained in the medium and long run.

Over the last two decades, Poland has been a shining success story of economic growth and convergence within the European Union (EU). The country continues to catch up with the EU average with impressive speed - with per-capita income increasing from less than 42% of the EU15 average in 2000 to 60% in 2012, write experts of World Bank.

As Poland continues down a path of growth and development, a number of new challenges are emerging for the economy. One of them is a rapidly aging population. A greater share of its population is heading into retirement, while fewer and fewer workers are entering the workforce to replace them. This trend not only affects the future supply of labour in the country, it also impacts social systems such as pensions. According to World Bank, household savings will need to increase in order to bridge income gaps not filled by public pensions in the future and avoid old age poverty. Also the state and the corporate sector will need to make adjustments to their savings to help the country meet the economic challenges of the next phase of Poland’s development. Therefore saving seems to be crucial issue impacting the country’s growth and living standards in the nearest future.

More information: www.worldbank.org/en/news/feature/2014/10/21/saving-for-the-future-supporting-economic-growth-and-living-standards-in-an-aging-poland. (World Bank)

FROM THE REGIONS

New business incubator in Radom
PAIIIZ deputy president Anna Polak-Kocińska took part in the opening ceremony of Business Incubator in Radom.

The Incubator has been designed to provide support especially for young entrepreneurs and their innovative and unique businesses. “Still, there is a lot to do in terms of innovative economy in Poland. The cooperation between business and science or the transfer of know - how to the business should be improved”, argued PAIiIZ deputy president Anna Polak-Kocińska. “Business incubators create great opportunities for local business initiatives”, she added. The meeting also focused on the support of business by EU founds. There is a clear decentralisation in the EU founds distribution. Over 60% of €82,5 bn will be distributed in the regions. “The aim of the EU 2014-2020 budget is to stimulate innovation in the Polish economy by increased spending on R&D”, summed Anna Polak-Kocińska.

More information: www.paiz.gov.pl/20141020/new_business_incubator_in_radom. (PAIiIZ)

Warmia and Mazury - the region with big potential
The development of Eastern Poland by improving the international cooperation was the main highlight of the panel discussion of the 6th Warmia and Mazury Economic Forum. The meeting was arranged on 17 October in Lidzbark Warmiński.

“Go West, but don’t forget the East”, argued PAIiIZ president Sławomir Majman who took part in the panel discussion. Between 2004 - 2014 since PAIiIZ has supported 45 investment projects located in the 5 provinces of Eastern Poland has. Their total value reached €1,414 bn. Thanks to them 8,055 new jobs has been cratered. Moreover, the Agency is providing the Eastern Poland Economic Programme. 320 local companies took part in the project and the majority of them benefited from it - almost all of them increase the exports by 50% while 200 of them increased the level of employment. Among sectors with the biggest export potential there are: furniture, yachting and agri-food industries. Moreover, there the macro-region in can benefit by invest in intelligent industries - water management or organic, innovative food.

Warmia and Mazury region is known for the unique and innovative products. Moreover, there the macro-region in can benefit by invest in intelligent industries - water management or organic, innovative food.

More information: www.paiz.gov.pl/20141017/warmia_and_mazury-region_with_big_potencial. (PAIiIZ)


Editorial office: Polish Information and Foreign Investment Agency, 00-585 Warsaw, Bagatela Street 12
Information and Communication 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

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