|POLISH INFOMATION AND FOREIGN INVESTMENT AGENCY|
March 6th, 2014,
Poland and Turkey: two stars on the European map
Polish president Bronisław Komorowski has started a two-day official visit to Turkey. He is accompanied by representatives of the Ministry of Economy, PAIiIZ and Polish businessmen.
The heightening Russian-Ukrainian political crisis, the autumn NATO summit and economic cooperation between Poland and Turkey were the main highlights of official meeting between Mr Komorowski and Turkish president Abdullah Gul on 5 March in Ankara. “600 years of diplomatic relations between Poland and Turkey encourage us to prolong our friendship and develop good forms of cooperation between our countries for the next six centuries”, declared both presidents.
The Poland-Turkey Economic Forum in Istanbul for Polish and Turkish companies was held on 6 March. It was opened by both presidents, and served to strengthen the bilateral economic exchange and to increase the level of FDI. In 2013, the value of trade between the two countries amounted to $5 billion. It was generated mostly by Polish exports.
Turkey is a country that has strengthened its position in the region and globally over the past ten years. Last November, Turkish prime minister Recep Tayyip Erdogan visited Poland. The meeting confirmed the fact that Poland and Turkey are "the two stars on the European map” in terms of economic growth.
Currently, Turkey is among Poland's most important partners in the Middle East and Asia. For Poland, the country is the 18th export market and 20th major import source. (PAIiIZ/ prezydent.pl )
The rising tide of Polish economy
For the seventh time PAIiIZ conducted a survey among foreign investors asking them for an assessment of the investment climate in Poland and describing the most important factors that influence it.
According to investors, access to qualified personnel, materials and supplies, as well as the economic and political stability and proximity to EU markets are the most important advantages of Poland as a business destination. Foreign investors appreciate Polish specialists - 64% praise their loyalty. As far as the factors that need to be improve, respondents mentioned: tax and public procurement regulations, the fiscal burden, as well as the efficiency of judicial system. For the first time the study focused also on R&D activity of companies. Currently, 38% of respondents are involved in R&D work in Poland, while12% of them plan to start it.
The overall rating of the investment climate in Poland reached 3.4 points on a one to five scale.
Beside the presentation of the investment climate in Poland, PAIiIZ also presented the results of satisfaction survey regarding PAIiIZ's services. The number of investors appreciating the agency's support has been increasing year on year. 94.1% respondents argued that PAIiIZ was “quick” in responding any questions, 97.1% considered this information as “clear and understandable”, 88.8% called it “satisfactory”. The agency has an image of a “responsible and professional business partner” for 91% of respondents. However, mediation between investors and local authorities should be improved.
More information: www.paiz.gov.pl/20140303/rising_tide_of_economy. (PAIiIZ)
Optimism of Polish entrepreneurs "strongest for four years"
The onset of spring strengthens Polish entrepreneurs' optimistic attitude. As employers have started to benefit from improving economic situation, more people are finding new jobs. According to the latest survey by the Randstad Research Institute and TNS, more than 36% of companies polled expect that the Polish economy will grow in the next six months. Such expectations have not been so optimistic for four years.
The number of entrepreneurs who believe in the improvement of Polish economy is the highest since 2010. According to the Randstad/TNS survey provided by PAIIiZ, during the past quarter, the group of “optimists” grew by one-third. At the same time, only 10% of respondents describe the current situation of their company as “bad” or “very bad”. The optimistic attitude of employers impacts strongly on the increase of employment and wages. Maintaining the employment at the same level for the next six months has been declared by six out of ten companies. The construction sector (33%) and the industry sector (32%) lead in terms of plans to increase employment.
More information: www.paiz.gov.pl/20140304/optimism_of_Polish_entrepreneurs_strongest_since_4_years. (Randstad/PAIiIZ)
“I welcome with great pleasure the fact that the number of local companies entering foreign markets is rising”, said foreign affairs minister Radosław Sikorski, during a conference summing up the activities of economic diplomacy in 2013. The event, held jointly by the Ministry of Foreign Affairs and the Ministry of Economy also discussed the economic promotion of Poland in 2014.
For Mr Sikorski, economic diplomacy means “taking care of Poland's strategic economic interests.” Last year a significant improvement in those activities as well as the growth of the recognition of the "Poland" brand by 5% has been achieved. According to data from the two ministries, in 2013 Polish embassies arranged over 5,000 meetings with entrepreneurs. They have also supported 133 important transactions and investment projects. The diplomatic institutions have also supported the participation of Polish companies in the international order system.
In terms of activities promoting Polish economy in 2014 and in the forthcoming years, both ministers talk about the continuation of sectoral promotion programmes in the global markets, as well as the introduction of a system for monitoring the effectiveness of economic diplomacy in new markets.
“Today, for the safety of the Polish economy, there is a strong need to discover new economic destinations. It is important to open up to the world”, said Mr Piechociński. Canada, Mexico Brazil, Algeria, Turkey, Kazakhstan, UAE have all been described as the most promising directions for Polish business expansion. For 2014, the government has also planned to arrange trade missions to China, Vietnam, Mongolia, Senegal and Ghana. The policy of entering new markets has already contributed to economic success of Polish companies. As government data shows, in 2013 the exports to Asian markets increased by 13%, whereas the exports to Africa increased by 30%. “At the moment, the list of Polish exporters consists of some 60,000 firms. We hope that by 2020 the list will double”, said Mr Piechociński.
The meeting on economic promotion of Poland took place on 27 February in Warsaw. (ME/MFA)
Re-establishing the Silk Route
Polish entrepreneurs have been invited to the 18th Investment and Trade Forum for Cooperation of Eastern and Western China by representatives of the China Chamber of International Commerce who paid a visit to PAIiIZ on 27 February. During the meeting both sides looked at the re-establishing of the Silk Route.
Plans for the reconstruction of the Silk Route make the CEE region crucial for Chinese investors. The connection across central Europe is the most convenient way to transport Chinese goods to the West. Therefore, China plans to increase its presence in CEE region over the next 20 years. At first, they plan to invest in modernisation of the infrastructure, especially in the rail transport, which plays a key role in the intercontinental trade.
The process of re-establishing the Silk Route will be one of the highlights of the forthcoming 18th Investment and Trade Forum for Cooperation of Eastern and Western China. The event will be held in May in Xi'an, in Shaanxi Province. Shaanxi is located in the north-central part of China and is one of the leading locations in China for the extraction of coal and oil. Shaanxi is also a leader of air transport. Its capital, Xi'an, is widely known as one of the oldest cities in China. It also has the largest river port in the country called Xi'an International Trade and Logistics Park.
More information: www.paiz.gov.pl/20140227/re-establishing_the_silk_route. (PAIiIZ)
INVESTMENTS IN POLAND
Seven projects completed by PAIiIZ
The value of FDI supported by PAIiIZ so far this year totals over € 320m. In two months the agency completed seven investment projects. Together, they can create 653 new jobs.
The US, with 49 ongoing investment projects worth € 951m and prospects of creating 7,500 new jobs, still leads in terms of the number of investment currently being handled by PAIiIZ.
Germany, with 29 investment projects worth €593 m which can create 6,700 new jobs, are the second on the list. There are a further investment projects from Japan with a total value €117.8m and 2,230 planned new jobs. The next places are taken by investors from the UK (11 projects) and France (9 projects). BPO is the most popular sector among foreign investors (38 investment projects, worth € 30m; 8,130 new jobs). In the automotive sector, 35 investment projects worth €1.35 billion are currently being supported (9,129 new jobs). The next place went to R&D (14 projects) and the aviation industry (10 projects).
Currently, PAIiIZ is handling a total of 168 investment projects worth over € 3,2 billion, which in the future can create over 31,000 new jobs.
More information: www.paiz.gov.pl/20140303/seven_projects_completed_by_paiiiz. (PAIiIZ)
Investment in WMSSE
Philips Lighting has received permission to operate in the Warmia-Mazury Special Economic Zone. The project will see Philips’ factory modernised and ready to produce lighting fixtures and energy-efficient LED-based flash.
The company plans to invest PLN 50m and create 70 new jobs. The Philips Lighting factory in Kętrzyn specialises in the production of street, commercial and industrial facilities’ lighting. (WMSSE)
Lendico in Poland
Lendico, a German social lending platform enters Poland. This is the next project of Rocket Internet, a company known for such Internet start-ups as Zalando and Groupon International.
Lendico allows individual clients to take out a loan on the basis of social lending. It also allows users to give loans to another users and invest in the financial sector, that, since recently, has been dominated by traditional banking institutions. Due to an innovative algorithm, users are thoroughly validated, which makes investments safe. In Germany, repayment rate on Lendico platform is 98%.
"We want to become an e-alternative for banks. Our lending marketplace does not only help to lend money, but it connects those who want to raise their cash flow with investors who count on high returns", says Dominik Steinkühler, Lendico co-founder and MD.
Poland is the third, after Germany and Spain country where Lendico offers its services. (Lendico/PAIiIZ)
Poland-South Africa Economic Forum
The Ministry of the Economy, PAIiIZ and Trade & Investment South Africa invite you to participate in the Poland-South Africa Economic Forum. The meeting will be held on Friday 14 March at 14:00 in Warsaw's Hyatt Hotel.
The Economic Forum coincides with the official visit of the South African deputy president, Kgalema Motlanthe to Poland. After the official part of the meeting, B2B talks for Polish and South African companies will be arranged.
Apply online at www.paiz.gov.pl/Polska-RPA by 12 March until 12:00. (PAIiIZ)
Polish-Moldovan Investment Forum
PAIiIZ, in cooperation with the Ministry of Foreign Affaris, invite Polish entrepreneurs to take part in the Polish-Moldovan Investment Forum on Friday 28 March in Chisinau.
The forum coincides with the official visit of prime minister Donald Tusk in Moldova that aims to extend and intensify economic cooperation between the two countries. The forum will provide the opportunity for companies to present their offers and there will be an opportunity for face-to-face talks between Polish and Moldovan entrepreneurs.
Companies interested in attending the forum should confirm their participation online: email@example.com by 14 March (3:00 pm).
Participation in the forum is free. The cost of accommodation and travel is not refunded. (PAIiIZ)
13th China International Consumer Goods Fair
PAIiIZ invites Polish entrepreneurs to participate in the 13th China International Consumer Goods Fair on 8-11 June in Ningbo.
Central and Eastern European Countries' Products Expo 2014 is the most important highlight of the fair. During the event, exporters from the CEE region will display their products and will take part in a conference on trade and investment cooperation and cultural exchange. The event will be attended by ministers of Poland and China.
The organisers will cover the cost of trade stands and costs of transportation in China.
Companies interested in participating in the fair, should fill the online form at http://www.gochina.gov.pl/CICGF_2014_Ningbo by 31 March.
ANALYSES AND REPORTS
Doing business in Turkey
Turkey is one of the strategic and most promising markets for Polish business. In 2023 the country will celebrate the 100th anniversary of the establishment of the republic. A vast range of investments has been planned to coincide with that celebration.
The Turkish economy has been very successful during the last decade. It entered has the group of the 20 largest markets in the world. Turkish GDP grew at the average level by 5.4% year on year. Thus the country continues to rise in the global rankings of the most attractive destination for investors. The recent success of the Turkey has its roots in the 1980s. During the past three decades, the country has transformed from a closed, agricultural country to a land powered by services and a privatised manufacturing sector. Turkey is now a strategic economic partner of Poland in the Middle East and Asia. Bilateral trade between the two countries in 2004-2011 grew nearly three-fold from $2 billion to $5.6billion.
Among the Polish companies present on the Turkish market there are: Selena, Polpharma, Herbapol, Solaris, and Maspex.
Turkey still has much to offer. By the time of the 100th anniversary celebrations in 2023, the republic's government plans to invest $350-400 billion in infrastructure development - new airports, ports, bridges, railways and hospitals. According to the Investment & Promotion Section of the Polish embassy in Ankara, the greatest potential for Polish companies are the following sectors - energy and renewable energy, agri-food, automotive components, construction, medical equipment, ICT, defence industries, chemical, pharmaceutical, design and design. (MTTP)
FROM THE REGIONS
Americans talk about investing in Poland
US companies, representatives of the Wałbrzych Special Economic Zone (WSEZ) and PAIiIZ looked at the advantages and disadvantages of investing in Poland. The meeting on 28 February was also attended by PAIiIZ deputy president Anna Polak-Kocińska.
There are 15 companies with American capital, including eight with predominantly American capital in the WSEZ.
Within the WSEZ alone, Americans have already invested nearly PLN 4.5 billion (the total value of all investment in WSEZ is estimated at the level of PLN 16 billion) and created nearly 10,000 new jobs. As the US Embassy's economic officer, Andrew Caruso emphasises, the Polish market has become very important for the US government thanks to the strong activity of American business in Poland. PAIiIZ data confirms that facts. Deputy president Anna Polak-Kocińska reminded to the audience that 22 out of the 53 investment projects completed by the agency over the previous year, were companies with American capital.
According to the American Chamber of Commerce, companies from the US have invested over in $20 billion in Poland during the past two decades. (PAIiIZ/WSEZ " Invest -Park”)
DID YOU KNOW...?
Women - as good as men but still earn less
"Today, there is no area in Poland, in which women do not play a significant role," said Władysław Gomulka (first secretary of the Communist Party and Polish leader in the 1960s and '70s). On 8 March, Poland celebrates Women's Day. In the times of the communist system, this day was associated with carnations, now it's a day for feminists to parades.
Despite the political transition of Poland into a democratic country 25 years ago, feminists still have every reason to take to the streets. According to the National Compensation Research conducted by Sedlak & Sedlak, women earn about one-fifth less than men for the same jobs. The average monthly gross salary for men in 2013 was PLN 4,500. Women earned about PLN 900 less. 25% of them earned even PLN 2,500 less than men. The most significant differences occur at higher levels of professions. Among directors and members of the board, the median of wage for women is up to PLN 3,200 less than for men. (Sedlak & Sedlak)
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