Doing business in Poland new perspectives for German companies- Artur Terlecki Chief Project Manager Foreign Investment Department PAIiIZ S.A.

Transcription

1 POLISH INFORMATION AND FOREIGN INVESTMENT AGENCY Doing business in Poland new perspectives for German companies- Artur Terlecki Chief Project Manager Foreign Investment Department PAIiIZ S.A. 1

2 FDI Stock and Flow to Poland : EU membership as FDI accelerator 200,0 FDI Stock in Poland (in billion EUR ) 180,0 160,0 Since EU accession FDI Stock in Poland grew 3-fold 161,4 178,3 183,0 140,0 120,0 121,3 128,5 157,2 100,0 80,0 60,0 63,6 76,8 95,6 116,6 20,0 15,0 10,0 FDI Flows to Poland (in billion EUR ) 40,0 20,0 5,0 0,0-5,0-10, , Source: NBP 2014

3 FDI in Poland : facts an figures EU accession became credibility guaranty for foreign investors FDI Stock grew over period 3-fold: from 63,6 billion EUR to 183 billion EUR Share of foreign sector in the economy grew 2-fold to almost 50% EU allowed for the rapid growth of Polish companies effectiveness, however foreign companies remain still 2 times more effective EU Funds became an additional incientive with a overall pool of money reaching 5% of GDP annually, enlarging funds for incientives by at least 50% annually

4 FDI to Poland by sectors: trends In 90 50% of FDIs to Poland went to industry, just 30% to services. Since beginning of new century, and especially after EU accession the trend reversed. Now ca 60% of FDI go to services, 30% to industry It is a challenge for PAIiIZ FDI in service sector involve 3,5 time less capital and 2 times more new jobs In 2004 PAIiIZ supported mainly projects in automotive, electronics and white goods sectors. Since EU accession FDI in services grew in strength. Today our specialties are: still automotive sector, but also BPO and R&D. Over the decade Most jobs were created in: electronics, logistics and BPO Most capital went to: electronics, automotive and food sectors

5 FDI to Poland with PAIiIZ : sources of capital No of projects Value (EUR, bn) New jobs (thousands) Over period PAIiIZ supported: 465 projects worth 11,2 billion EUR creating 135 thousand new jobs Source: PAIiIZ,

6 FDI to Poland with PAIiIZ : investment projects by sector No of projects Value (EUR, bn) New jobs (thousands) BPO 112 0, Automotive Electronics R&D Food Sector Source: PAIiIZ, 2013

7 Poland s 10 years in EU GDP per capita (USD thousands) Since EU accession: Poland s per capita GDP grew 2-fold Unemployement rate(%) Umemployement rate fell from 19% in 2004 to 10,2% in 2013 Polish exports grew 2,5 times Exports (USD bn) FDI stock in Poland grew 3-fold FDI Stock (USD bn) Source: IMF, UNCTAD 2014

8 Wages (avarage) Gross wages (EUR) Productivity and wages growth Szczecin 828 Zielona Gora 763 Wroclaw > Poznan 860 Gdansk 909 Opole 826 Torun 782 Lodz 882 Katowice 1030 Olsztyn 729 Warszawa 1115 Kielce 791 Krakow 816 Bialystok 758 Rzeszow 764 Lublin 837 th. PLN Productivity per capita (in PLN th.) Annual average wage in th. PLN 799 < Minimum gross wage (year 2014): PLN 400 EUR Average gross wage (eneterprise sector) in March 2014: PLN 956 EUR Source: Central Statistical Office, May 2014

9 Demographic structure Population of CEE countries (%) Population by age classes CEE countries (mn) Poland Population by age classes in Poland (%) 6 th largest country in the EU 1 st in CEE in terms of population >59% of population is younger than 49 years old 11,4 mn Poles are less than 25 years old Number of students (2011/2012) Source: Eurostat 2013, Central Statistical Office 2014

10 Foreign language capabilities 70% 60% 50% 40% 30% 20% 10% 0% by age group English German Russian French Learning of foreign languages is obligatory in the Polish education system Children learn foreign languages from the age of 6 100,0% 90,0% 80,0% 70,0% 60,0% 50,0% 40,0% 30,0% 20,0% 10,0% 0,0% among students English 90.2% German 43.2% Russian 13.7% 9.6% 6.3% 3.2% French Spanish Italian English is the most popular foreign language in Poland Language proficiency is one of the strongest points for Poland as a BSS hub Source: Hays 2014

11 Road infrastructure and distance to Leipzig/Munich Distance and timing (km and h) City Leipzig Munich Wroclaw 373 km (3,45h) 720 km (7h) Poznan 435 km (4,50h) 830 km (8,15h) Katowice 549 km (5,15h) 842 km (8,15h) Krakow 626 km (6h) 919 km (9h) Lodz 627 km (6,45h) 929 km (10,15h) Warsaw 743 km (7,43h) 1138 km (11,15h) Gdansk 722 km (8,40h) 1117 km (12,20h) Net cost of 40 container transport by truck City Gdansk Warsaw Katowice Frankfurt am Main Amsterdam EUR EUR Source: GDDKiA, Ministry of Transport, 2014

12 Services and Manufacturing Hubs in Poland (1) AUTOMOTIVE Gliwice, Tychy Wrocław, Jelcz Laskowice, Wałbrzych Poznań Other Manufactures HOUSEHOLD APPLIANCES Łódź, Radomsko Wronki Wrocław, Kobierzyce Other Manufactures Wrocław ELECTRONICS Gorzów Wielkopolski Tczew, Kwidzyn Other Manufactures Source: PAIiIZ compilation, 2014

13 Services and Manufacturing Hubs in Poland (2) AEROSPACE Rzeszów, Mielec, Świdnik Kalisz Other Manufactures BSS Kraków Wrocław Łódź Other Centers Wrocław R&D Wrocław Warszawa Other Centers Source: PAIiIZ compilation, 2014

14 German Investors in Poland AUTOMOBILBRANCHE BPO + R&D ANDERE SEKTOREN

15 The percentage change of FDI ( ) UK -8% RUSSIA -18% TOP 10 DESTINATIONS COUNTRIES IN EUROPE IN 2012 Country Number of projects UK 812 IRELAND -21% NETHERLANDS +5% POLAND Germany % Spain 278 Russia 265 France 244 Poland 237 Ireland 147 Netherlands 145 Romania % SPAIN GERMANY -47% TURKEY -1% Turkey 133 Other Total FRANCE -12% ROMANIA -23% Source: The FDI Report 2013

16 Investment attractiveness among CEE countries (2013) Scale: 1-6 (very attractive) Poland ranked as the most appealing country in the CEE 94% of respondents would decide to locate an investment in Poland Source: AHK, conjunctural survey, 2014

17 Poland a leader of growth in Europe 1 st place in the CEE region the most competitive country in the region 1 st place in the CEE in terms of number of the investment projects 3 rd place in the whole Europe in terms of jobs created (after UK and Russia) 3 rd place in Europe in terms of jobs created per 1 project Poland is characterised by: large domestic market, well-qualified and productive workforce, stable macroeconomic situation, relatively low level of public debt comparing to Western European countries, transparent tax and legal systems, favorable conditions both for manufacturing and services investments. Source: E&Y Attractiveness Survey, 2014

18 Tax rates Corporate Income Tax (CIT) 19% Personal Income Tax (PIT) 18%, 32% Value added tax (VAT) Social Security Tax paid by employer basic: 23% reduced: 8%, 5% export: 0% between: 19.48% and 22.67% Source: PAIiIZ compilation

19 Effective incentives system Tax breaks CIT exemption in Special Economic Zone CIT relief for acquisition of new technology Real estate tax exemption Cash support Government grants Cash grants available through EU Funds The EU budget: present and future financial perspective Total: 975 bn EUR Poland: 69 bn EUR (7%) Total: 960 bn EUR Poland: 72.9 bn EUR (7.6%)

20 Regional state aid map Maximum intensity in years % 35% 50% 35% 35% 35% 25% 35% 50% 20% Warsaw 35% 35% 25% 35% 25% 35% 35% 35% 50% 50% Warsaw: - until % - as of % * map will be valid starting from

21 Special Economic Zones Special Economic Zone (SEZ) is an especially dedicated area where investors receive special benefits Major purpose of SEZ is to support local growth There are 14 SEZ + subzones Cumulative area = ha SEZ will operate at least until 2026 Permits to conduct activities in SEZ are issued by the authorities of each SEZ Minimum investment: EUR Possibility of including the land selected by an investor into SEZ Benefits from obtaining a permit to conduct activities in SEZ: eligibility for income tax exemption plot of land prepared for an investment project, available at a competitive price free assistance in dealing with formalities relating to the investment project

22 State aid in Poland Government support system cash grant Priority sectors Production automotive electronics aviation biotechnology big investment in other sectors Modern services ICT SSC BPO R&D activity (e.g. software development) Program of support of investments of considerable importance for Polish economy

23 Allocation of EU funds Agriculture Business and science 8, ,5 Infrastructure 31 Source: PAIiIZ own compilation, 2014 Regions 114 bn EUR 2,1 Eastern Poland Human capital Other 2,2 4,4 2,7 Digitisation

24 EU Cohesion Fund ( ) bn EUR Poland Italy Spain Romania Hungary Czech Republic Portugal Germany France Slovakia Greece UK

25 Agency s offer full spectrum of business location advisory Considering of investment Long list of countries Marketing campaigns, investment seminars, work-shops, study tours Cooperation with Polish Embassies Project Managers assistance Location advisory Site visits Short list INVESTMENT DECISION Assistance in obtaining financial support from the state government Cooperation with SEZs, data base of agencies (real estate,hr, legal), business partners and suppliers Post-investment services Ombudsman for foreign investors Long-term investment process!

26 Active projects serviced by PAIiIZ (May 2014) As of (mid) May 2014, PAIIIZ is assisting in 152 potential FDI projects: Total value of investment: EUR 3.34 bn Total number of new workplaces: 31.7 thous. Main sectors: BSS + ICT (36) Automotive (30) R&D (11) Aviation (10) Major countries investors: USA (39) Germany (29) Great Britain (10) France, Japan (9)

27 Why Poland Summary Availability of skilled human resources Strategic location gateway to the EU Economic and political stability Effective incentives system

28 Thank you for your attention Warszawa, ul. Bagatela 12 tel. (+48 22) , fax (+48 22)