Right time for investments into Serbia, before the competition arrives, Interview with Ms.Oreski, Board Member of Slovenian Business Club

Serbia Business explores the competitiveness of Doing Business in Serbia

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Ms. Marija Oreski, Board Member, Slovenian Business Club

The business environment improved significantly and Slovenian investors generally feel comfortable in Serbia. The total investment of Slovenian companies in Serbia amounts to approximately EUR 2 billion, and Slovenian companies employ more than 25,000 people in Serbia. The EU accession process should significantly contribute to Serbia’s competitiveness as an investment destination, as this will be an internationally recognized sign that Serbia is a country which is ready to be a member of the international community. Serbia is irreversibly on its way to the EU family, and now is the time to take positions, before the rest of the competition arrives.

Serbia-business.eu: Slovenian companies are one of the first comers to Serbia when it comes to Foreign Direct Investments, can you tell us more about the overall opinion of the Slovenian Business Club on business environment in Serbia?

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Slovenian companies are not only one of the first comers but are also among the biggest investors in Serbia and definitely the most numerous investors in terms of the number of companies. Currently, there are more than 1.400 companies with Slovenian capital operating in Serbia. 

The Slovenian Business Club was established in Serbia nine years ago. In this period, the business environment improved significantly and Slovenian investors generally feel comfortable in Serbia. However, there are still many more issues which need to be resolved in order for Serbia to bring its business environment to the EU level.

Serbia-business.eu: Which industry sectors were most interested so far for Slovenian companies in Serbia? 

There is no particular sector preference of Slovenian investors. All sectors are interesting and have been invested into by Slovenian companies. In terms of the amount of investment, the retail, production of consumer products, metal processing, and banking sectors were those with largest investments so far.

The total investment of Slovenian companies in Serbia amounts to approximately EUR 2 billion, and Slovenian companies employ more than 25,000 people in Serbia. 

Serbia-business.eu: What are the key competitive advantages of Serbian market, what are the main obstacles for doing business? 

Perhaps the most important advantage of doing business in Serbia is the network of free trade agreements which Serbia has with the EU, the countries in the SEE region which are parties to the CEFTA agreement, and the free trade agreements with Russia, Belarus, Turkey and Kazakhstan. This structure offers very interesting opportunities for foreign investors. Additionally, Serbian work force is recognized by foreign investors as quite competent compared to other countries with similar level of development.

The main obstacles are the insufficiently developed infrastructure, complicated procedures for obtaining various licenses and permits – especially construction permits – long duration of court proceedings – particularly in the area of enforcement – and a general lack of reliability of the legal system. However, the situation in all of these areas has been steadily improving over time. 

Serbia-business.eu: How Slovenian Business Club participates in overall reform of business environment in Serbia, do you transmit the good experience to some new Slovenian companies interested in Serbia?

The Slovenian Business Club has over 120 members, both Serbian and Slovenian companies. Meetings are held on a regular basis, with over 200 attendees at each meeting, where Government Ministers, experts and other interesting guests are present, and which provide opportunities for new member companies to present themselves. The Club also organizes various events with the aim to facilitate the functioning of Slovenian business in Serbia and provide connections with the Serbian market. We have an excellent cooperation with the Slovenian embassy in Belgrade and work together on many projects. We also provide specific assistance and respond to questions of Slovenian companies which are entering the market, until they introduce themselves with the local circumstances in more depth. 

Serbia-business.eu: How do you evaluate the competitiveness of Serbia as potential destination for investors, will EU accession process and all necessary obligatory steps influence the bigger interest of investors?

The EU accession process should significantly contribute to Serbia’s competitiveness as an investment destination, as this will be an internationally recognized sign that Serbia is a country which is ready to be a member of the international community. The harmonization of the Serbian legal system to EU standards will provide investors with more reliability, as well as with a set of rules which they are used to, and which is more familiar to them, which are all important factors in the investors’ decision where to place their capital. 

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 assisting Serbian economy ?

We would advise them to invest in Serbia as soon as possible. Serbia is irreversibly on its way to the EU family, and now is the time to take positions, before the rest of the competition arrives. 

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