Regional business cooperation Austria-Serbia provides additional visibility to Serbia attractiveness for new Austrian FDI, Positive Case study, Interview with Ms.Viduka Director of Bluewaters Serbia

Serbia Business explores the competitiveness of Doing Business in Serbia

Ms. Biljana Viduka, Director, Bluewaters Serbia

We are very satisfied as an Austrian company, because Austrian companies are welcomed and recognized as preferred partners in the implementation of projects. In the last decade, Bluewaters has witnessed the changes in business operations in Serbia. We hope that Serbia will become the candidate for EU membership this year which will open additional chapters of pre-accession assistance and enable Serbia to implement environmental infrastructural projects and we hope that we and our partners will have an opportunity to transfer knowledge and experience which Austria undoubtedly possesses in this field. An important part of the investor’s decision to enter a certain market represents the quality of work force as well as its price. In Serbia there is educated work force and the labor costs are lower than in the neighboring EU member states.

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Serbia-business.eu: Bluewaters is one of the first consultancy firms from Austria which started business in Serbia. Can you tell us more about the experience from your start up and from that perspective in what manner the business environment improved? 

Bluewaters’ experience in Serbia is very positive. From the very beginning, we successfully cooperate with the Government of Autonomous Province of Vojvodina and local self-governments. They have given us a lot of support in the implementation of projects of common interest. Unfortunately, some of these projects are stopped or interrupted because legislation in Serbia was late, then the economic crisis has affected both partners from Serbia and partners from Austria and prolonged some of these projects.

Nevertheless, it is much easier to make decisions today, get an incentive and start new business activities in Serbia than it was ten years ago.

We are very satisfied as an Austrian company because Austrian companies are welcomed and recognized as preferred partners in the implementation of projects. Seriousness in the approach to work, possession of know-how especially in the field of ecology and energy efficiency, consistency in work, respect of agreements are just some of the qualities recognized in Austrian partners.

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There is always room for improvement from both sides, but it is important that both sides are persistent in their activities that lead to this direction. 

This is a good opportunity to thank the Government of Vojvodina and the Government of Styria for their trust showed to our company when it comes to cooperation on projects of importance for the two regions. We will continue to try to justify their trust and make easier networking between economic entities and institutions in the implementation of projects of importance for both regions and countries.

Serbia-business.eu: Investors are demanding efficient administrative support for their business start up’s, what is your experience and the experience of your clients in Serbia? 

In the last decade, Bluewaters has witnessed the changes in business operations in Serbia. There is certainly a big difference when we compare 2001 and 2011 from the aspect of openness of Serbia towards foreign companies. Firstly, the image of Serbia today is far better than it was ten years ago. For years, visa regime was a constraint but today it goes much faster and easier. Furthermore, it is easier and faster to open an enterprise with lower investments made. Employment programs such as the First Chance or the new Government efforts regarding tax allowances and reliefs for employees are in favor of reducing costs of employer.

However, there are still some serious obstacles which hinder the business in Serbia. Of course, this stands not only for foreign companies but also for domestic ones. These obstacles are: starting from the trivial ones such as communication because most officials in the public or provincial institutions do not speak foreign language to the long procedures when it comes to administration. Furthermore, the legal system is slow and it is hard to assert the rights, then the lack of implementation of legislation in certain areas of interest for companies from Austria regarding investments, the question of the legal owner of property and inability to collect claims are still open questions in Serbia. 

The general impression is that progress is visible but not sufficiently fast.

Serbia-business.eu: Your expertise is environment and energy efficiency, how do you evaluate the current reform status in Serbia? What is the perspective of that business area in the future? 

As Serbia this years expects to start negotiations for the EU accession, so we in the company have discussed about possible options for us and our partners.

One of the most important areas for Serbia is environmental protection and energy efficiency. We have so far implemented several important projects in that field funded by the Austrian Development Agency, UNDP, Government of Styria and European Commission.  But Serbia still has no funds to invest more seriously in this field. We hope that Serbia will become the candidate for EU membership this year which will open additional chapters of pre-accession assistance and enable Serbia to implement environmental infrastructural projects and we hope that we and our partners will have an opportunity to transfer knowledge and experience which Austria undoubtedly possesses in this field. 

Many things have been done regarding the education and consideration of the need for advances in this area and Austria is recognized as one of the most important partners. Faster adoption of laws and their consistent implementation would, of course, help in order to create the need for faster and more efficient solutions.

In April, Bluewaters organized the Symposium on Environmental Infrastructure and Energy Efficiency in order to enable local self-governments and public enterprises meet in one place companies which can offer high quality solutions to problems and institutions which enable financial implementation of projects. Such events contribute to raise awareness, find solutions more easily as well as network and create partnerships between stakeholders.

In order to remain partners with the Serbian Government, Provincial Government and local self-governments, Bluewaters will continue with its activities to find professional solutions and opportunities for funding projects in this field. 

Serbia-business.eu: Since you are also assisting clients in entering Serbian market, what are main messages from your market analysis? Would you be able to select most perspective sectors for investment, like renewable energy or agriculture projects/investments?

Bluewaters is for the last eight years key accounter of the Government of Styria in Vojvodina with a mission to help Styrian companies enter Serbian market, implement projects with Serbian companies and institutions and form business partnerships. 

Through analyses and database established in cooperation with local-self governments, we have identified three major fields which are also areas of interest to our clients in Austria.

These are: Infrastructure, Energy efficiency and Agriculture.

But there are also a number of projects that bind all three aspects such as biogas plant, for example.

Since 2000 Austria has invested 2.6 billion EUR in Serbia. Unfortunately, due to effects of the economic crisis there has been a slowdown in the last two years. However, at the end of 2010 a significant progress has been recorded and this tendency is something that is expected in the future. 

It should also be mentioned that the Commercial Department of the Austrian Embassy in Belgrade is very active and supports Austrian companies in Serbia. In addition to this, cooperation between Commercial Chambers of Austria and Serbia is very good and all these things contribute to better and easier cooperation between companies.

At the end of the last month, the Investment Forum for Serbia was organized in Vienna where opportunities for investments in Serbia were presented as well as benefits for potential investors. This is one of the initiatives for intensifying cooperation between the two countries and new business sectors.

All this contributes to a greater interest of Austrian companies to enter the Serbian market. 

Serbia-business.eu: How do you evaluate the competiveness of Serbia as potential destination for investors?

The biggest competitive advantage of Serbia are Free Trade Agreements (FTAs) with Russia, Turkey, EFTA and CEFTA countries, Belarus, Kazakhstan and preferential free access for more than 4.650 products in the USA.

All these things together represent the market of nearly billion potential consumers and place Serbia on the map of investors as a suitable destination for the location of their production. Also, due to relatively developed transport network (highway, railway and vicinity of sea ports) the export of goods is easier. 

Due to the Government policy to attract investors, significant advantages are offered to investors in the field of subsidies, creation of new jobs as well as tax reliefs.

An important part of the investor’s decision to enter a certain market represents the quality of work force as well as its price. In Serbia there is educated work force and the labor costs are lower than in the neighboring EU member states 

However, it is necessary to ensure the safety of investments and property of foreign investors, constantly improve business climate and improve our knowledge and working habits in order to be an equal partner in the development of our country.  

Serbia-business.eu: Serbia is identified by many investors as Emerging market and Sourcing| Outsource location, what would be your message coming from years of experience in doing business in Serbia and obviously from examples of best practice ? 

Serbia is the country with a lot of potentials, valuable resources, excellent location and great desire to be a serious and reliable partner to all interested companies and individuals.

Only with joint effort and work we can create conditions that can provide greater investments and thus enable development of small and medium enterprises, increase employment and lead to higher living standards of every individual.

Of course this cannot be achieved overnight, it is necessary to work a lot and intensify the efforts so far. But, I think that we are on the right way and that our clients from Austria recognize that.

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