Investors who came because of cheap labor are leaving Serbia

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The Prime Minister Ana Brnabic stated that, if the Italian company Geox closes the factory in Vranje, the employees of that company will not lose their jobs because the state will find a new investor.
She said that Geox has huge problems, which, according to her, are largely conditioned by the crisis due to the corona virus pandemic, but also by the fact that it is “one of those investors where a large part of business costs is reduced to workers salaries.”
“They came to Serbia in 2014 because we were a destination that was promoted as a country of cheap labor and that is why, as average wages and minimum wages grow, we will have a problem because labor-intensive investments will move to countries with lower wages and cheaper wages labor force,” the prime minister said.
Stating that the departure of Geox is still not “100 percent confirmed information”, the Prime Minister said that, if that happens, she expected such an outcome not only in terms of the Italian company, but also “some more investors” in the foreseeable future.
“We will have new investors and these people will not lose their jobs and will have better salaries. If Geox decides to leave, we will be there to replace it immediately with a new investor. We already have announcements of expanding current investments, so all employees may be employed in some other companies, but they will not lose his job,” added the Prime Minister of Serbia, 021 reports.