InvestSlovenia FDI Award
Cankarjev dom, torek, 28.10.2014
Distinguished guests, dear Ladies and Gentlemen,
I am really delighted that I have the opportunity to welcome you at this year’s InvestSlovenia FDI Award reception. A special welcome goes tonight to investors domiciled outside Slovenia who decided to run businesses in Slovenia and whose representatives decided to join us at this great evening’s event.
Congratulations to all the nominees, especially to award winners!
The InvestSlovenia FDI Award is beingheld for the ninth consecutive year. A tribute is given to the most prominent foreign investors in Slovenia in 2013 (2014???). Factors such as:
-Investment duration and its sustainability ((Količevo Karton, d.o.o.)
-Size of investment in the region and ability to create new jobs (Hofer Trgovina, d.o.o.);
-Reinvestments funded under Spirit’s FDI Scheme (Elrad International, d.o.o.) and
-Business Performance; (Sumida Slovenija, d.o.o.)
were all considered in developing the ranking of top foreign investors in Slovenia.
Allfour award winning foreign investments reached high levels of growth in terms of revenue, employment, export and added value per employee over the past years. Their growth indicators are greatdue to their strong orientation towards international markets. They have made an imprint on the Slovenian economy and they started or maintained their business activity in the Slovenia in times of the financial crisis.
The Republic of Slovenia appreciates presence of outside investors.Evidence shows that positive effects of foreign direct investments are numerous, including their contribution to economic stability and growth. It is not only equity capital that is brought to the country by the outside investors. In many cases,where foreign direct investments are included, we can also see transfer of new expertise, know-how,we can witness easier access to capital markets and, we can see creation of new jobs as the business becomes more competitive and growing. Apart from that, companies owned or co-owned by outside investors tend to be better equipped for international competition. In addition to this foreign investments contribute to a balanced regional development and act positively on behaviour of local companies.
Within Slovenian corporate sector foreign-owned companies account for almost 20 per cent of overall capital, nearly 22 per cent of all employees and over 25 per cent of total operating profit. With a share of 40 per cent in Slovenia’s exports of goods, the companies with foreign capital export in average twice as much as an average Slovenian exporter. Profitability indicators such as net profit per employee and value-added per employee in companies with FDI are also higher than in other companies. In 2013 foreign manufacturing companies earned 35 per cent more, their assets were 8 percent higher, value added per employee was 19 per cent and (net???) profit 39 per cent above their Slovenian counterparts.
As for salaries, data is also encouraging and in favour of foreign owned businesses. Employees of foreign-owned companies in Slovenia receive above-average gross salaries: up to? 9.5 per cent more that the average compensation paid by other companies in Slovenia.
In terms of perspective foreign direct investments it is important to note Slovenian government’s firm commitment to continuation of the privatisation process. Foreign investors have been and still are welcome to participate. The prime Minister has announced recently a determined effort to create a stable political and business environment. This is a precondition to make Slovenia more attractive to foreign investors. In this conjunction, non-financial incentives are expected to be prepared and passed by the parliament to stimulate new investments, direct and indirect. The main objective is to revive economic growth and create new jobs. With respect to the type of investments, greenfield investments are very much sought after, and with respect to the type of investor, Slovenia is looking for investors who will pursue long-term development strategy and will be committed to sustainable and responsible business practices.
Should Slovenia want to incentivize investments, and this is the opinion of the government, it has to adopt new non-financial incentives and remove some of the administrative barriers. For instance, we all know how complicated and time consuming it is to obtain a building permit in Slovenia and how unsure the outcome is with this respect. Public agency SPIRIT is trying to do its best to provide all necessary information on possibilities of foreign investments to Slovenia from one spot. It pursues a so called “one-stop-shop” approach of work and will add efforts to remove the forementioned barriers by coordinating activities of relevant government bodies. We believe that this will accelerate today’s lengthy administrative procedures and make them much more transparent to investors looking for investment opportunities in Slovenia.
To conclude, Slovenia has much to offer in terms of new investment opportunities. Outside investors have started or should startperceiving Slovenia as the country of great potential with this respect. Agency SPIRIT will continue doing its best to improve business environment in Slovenia and will appreciate sharing thoughts on this with representatives of foreign owned companies active in Slovenia. We are fully aware that foreign investors generate business growth, develop new solutions and create jobs. Today, we are witnessing an event that proves that this can really be like this.
Thank you all for coming. Wish you a wonderful evening.
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