| POLISH INFOMATION AND FOREIGN INVESTMENT AGENCY | |||||||||||
NEWSLETTER October 30th 2008, Number 95 | |||||||||||
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TABLE OF CONTENTS NEWS
FROM THE REGIONS
ANALYSES AND REPORTS
DID YOU KNOW...?
FROM THE EDITOR Dear Readers, This week the Polish Information and Foreign Investment Agency presented results of two research projects concerning the investment climate and the BPO Poland-based centres active in the international markets. A conference on German investments in Poland also took place on October 29th. In the News section you may find a list of the best 16 lots chosen in “The Golden Sites” 2008,a contest organised by PAIiIZ for the third time. Pleasant reading! PAIiIZ’s editorial team NEWS Investment climate in Poland and the BPO market - assessment results The Polish Information and Foreign Investment Agency presented results of two research projects. The Assessment of the current investment climate in Poland carried out by Polish and foreign entrepreneurs active in Poland. The current condition of the BPO market in Poland was presented using a case study.
The investment climate research, similarly as in the previous years, was conducted by the Gdańsk Institute for Market Economics (IBnGR). In comparison to the year 2007 the general investment assessment has not changed considerably, yet the majority of elements managed to receive a slightly better evaluation. Entrepreneurs are of the opinion that the following elements improved most: political stability, tax rates due to the personal income tax, the height of the social security contributions and transport infrastructure. The aim of the report consisted in assessing the investment climate in Poland in 2008 on the basis of research carried out among companies operating in the country. The analysis included three kinds of elements of the investment climate i.e. macroeconomic conditions, governmental institutions quality and transport infrastructure. 84 companies running business in Poland, 34 were Polish and 49 involving foreign element, took part in the survey. The participants assessed the general investment climate at 3.1 on a 1-5 scale. 3 results to be the most repetitive note (53% of the respondents) which means that the climate for investment is generally perceived to stay on an average level. The results were presented by Paweł Wojciechowski PhD, PAIiIZ President and Bohdan Wyżnikiewicz PhD, IBnGR Vice Prsident.
Besides the investment climate assessment in Poland, an analysis of Poland-based BPO centres active in the international market in the form of a case study was also presented. This was a new and unique research project carried out by the DiS Research and Analysis Office at the request of PAIiIZ. The survey, presented by Mr Andrzej Dyżewski, DiS director, provided detail information on over 300 Poland-based centres. The analysis gave a clear picture of the big economic potential of the country in the field of advanced technologies, finance, electronics, telecommunications and consulting. Over 45 thousand people active in the sector testify to the capacity of the BPO sector. Half of them work in the IT connected sphere, one third renders services within call centres and the rest carries out research and development activities. Moreover, the report shows that employment in the field will have been risen to 70 thousand by 2010 i.e. by almost 50%. Investment projects realised in 2008 and those currently being realised by the Agency confirm the tendency. From among 46 projects realised by PAIiIZ in the period from January to September 2008, the biggest part i.e.17 concerned the BPO sector. Currently the Agency has been managing over ten projects in the sector, including 6 American and 3 French projects. In the 3rd Q 2008 investments in the sector were completed by the Irish SWS Group, Credit Suisse and Citi. Mr Paweł Wojciechowski emphasized that despite the economic turmoil which can be observed worldwide, Poland remains an attractive investment destination. The positive outlook was confirmed by international reports, among others, by the Ersnt&Young investment attractiveness report where Poland ranked 1st from among European foreign investment destinations and also by the preliminary data on FDI inflow for 2008. PAIiIZ President estimates that the FDI inflow in 2008 may be lower than achieved in 2007 and hover round 10-12 million EUR. Yet the fall should relate mainly to reinvestment projects and capital in transit. Greenfield investment should stay on a similarly high level. (PAIiIZ) “German Investment in Poland. Chances, successes and challenges.” The Polish Information and Foreign Investment Agency, the Rödl & Partner and the Domański Zakrzewski, Palinka Lawyers’ Office organized a conference ”German Investment in Poland. Chances, successes and challenges.” The event was attended by over 80 guests and included representatives of German companies active in Poland.
The conference took place on October 29th at the Novotel hotel in Warsaw. The aim of the conference was to highlight the significance of the Polish-German economic relations with special attention on the German investments in Poland and the investment projects development prospects. The focus was on presenting the economic potential of Poland, investment conditions and on a case study of one of the biggest German investors present in Poland. Matthias Rehm, German Embassy Advisor in Poland, encouraged German entrepreneurs to getting to know the Polish market and starting business activity in Poland. Professor Krzysztof Kalicki, President of the Management Board of Deutsche Bank Polska and Vice President of the Polish-German Chamber of Commerce presented the condition of German investments in Poland and the Polish investments in Germany and also enumerated sectors which are of most interest to our western neighbours. Mr Paweł Wojciechowski PhD, PAIiIZ President discussed investment climate in Poland, compared the economic condition of both countries and enumerated the biggest German investors active in Poland. Ms Teresa Bagiński, from Rödl & Partner, focused on investment stages characteristic of German projects and familiarised the participants with elements specific for German investment service. Ms Julita Zimoch-Tuchołka from the Domański, Zakrzewski, Palinka Lawyers’ Office, discussed investment conditions for the BPO centres presenting, among others, investment location criteria in the sector. Mr Marek Wróbel, Randtsadt representative focused also on the BPO sector and emphasised the significance of human capital as the main factor determining the investment localisation in the sector. Milan Klaus, finance director of Volkswagen Motor Polska, one of the biggest German investors in Poland, presented a short history of the concern in the country in the form of a case study focusing on the successfulness and efficiency of a German investment in Poland. Mr Krzysztof Pawłowski, the Legnica SEZ President, where the Volkswagen investment is located, presented the SEZ’s offer and enumerated German investors who already decided to invest in the SEZ, which is located in the direct vicinity of the Polish-German border. Mr Aleksander Kostuń, the Legnickie Pole commune representative emphasised that the investor’s service is to a large extend rendered by the commune and at the same time stressed that it is both the investor and the host commune that take advantage of investment projects. The conference was chaired by Mr Marek Zuber, President of the Dexus Partners Management Board. (PAIiIZ) 3rd National Contest “The Golden Sites” 2008 - final  The 3rd edition of the National Contest “The Golden Sites” 2008 organised by the Polish Information and Foreign Investment Agency in co-operation with voivodships’ marshals ended. Thanks to the contest the investment lots assortment gained a set of well prepared locations for future investment projects.
This year 220 communes from all over Poland submitted 332 offers. Among the regions that filed most offers there were the Wielkopolska, Opole and Śląsk voivodships. For the second and final stage of the contest 91 selected plots were qualified, from among which 16 best lots were chosen. While the top 16 lots stand a good chance of attracting foreign investors, the rest of the submitted offers may also attract investors co-operating with PAIiIZ or one of the Agency’s regional partners. Below find the list of the 16 best plots selected in this year’s edition of “The Golden Sites” 2008.
The official presentation of the awards will take place on November 7th at a conference devoted to the summing up of this year’s contest. (PAIiIZ) MACROECONOMIC POLAND
Source: www.nbp.pl FROM THE REGIONS Wielkopolska to open a representation in India Wielkopolska is the first European region to have its economic representation in India. The opening of the office is planned to take place in the beginning of 2009. The enterprise is a result of the Wielkopolska voivodship’s trade mission to India which was attended by the region’s marshal , Mr Marek Woźniak and deputy marshal Mr Leszek Wojtasiak.
The first days of the trade mission to Mumbai, attended by the Wielkopolska government’s delegates, representatives of the Ostrów Wielkopolski and entrepreneurs from Poland were devoted to meetings with the Maharashtra state authorities and the local business representatives. At the meeting with the state’s governor Sari S.C. Jamir, Mr Marek Woźniak said “The economic co-operation between Poland and India is not sufficiently intensive when considering to the potential such relations offer. Yet not everything may be settled on the level of central authorities. There are things which may be settled at a level, which is closer to entrepreneurs. It is the role of the local and regional authorities to build bridges and generate a friendly climate for co-operation. To fulfil the generated frames is the task of the entrepreneurs.” Also the governor Jamir emphasised that - “You have come to the right place. Mumbai is the financial capital of India, a place where business activity really thrives.” The meeting served as an occasion to settle all details concerning the establishment of the Wielkopolska economic representation in the city. An office which is to facilitate contacts between the Polish and Indian entrepreneurs. The Wielkopolska government delegates have even chosen a place where the office could be situated. A place in a very prestigious part of the city, near the local World Trade Centre. The office is scheduled to be opened at the beginning of 2009. The Marshal, Marek Woźniak and the deputy Marshal, Leszek Wojtasiak met also in the seat of the Maharashtra state’s government with the Industry Minister. The Indian side showed interest in establishing co-operation in the food processing sector. Arrangement concerning co-operation between Poznań and Mumbai universities was also touched upon. Concrete forms of co-operation were discussed with organizations gathering certain groups of entrepreneurs - Indian Chamber of Commerce, All India Association Industries (AIAI), Indian Industry Confederation and Export-Import Bank of India. Thanks to meetings with the representatives of the two biggest chains of hypermarkets the Wielkopolska entrepreneurs who took part in the mission had the chance to get to know the Indian assortment and the frames of potential co-operation with the chains. India is one of the Asian tiger countries which has been enjoying a 8-9% GDP growth for the last years. The capital Maharashtra state has a population of 120 million people and Mumbai itself has several million residents. (Marshal’s Office of the Wielkopolska Region) ANALYSES AND REPORTS Automotive industry in Poland: 1st Q 2008 sees over 10 billion EUR in export The 1st Q this year shows high dynamics of growth in export in the automotive industry.
In the last month of the 1st half of the year 2008 products worth round 1.68 billion EUR were exported in the automotive sector. In comparison to May this year the value of export rose by 5.5% and grew by 22.5% when compared to the analogous period last year - results froma report prepared by AutomotiveSuppliers.pl, a company specialized in monitoring automotive industry in Poland and the CEE region. Among the most popular products there were passengers cars and delivery cars (630.37 million EUR), spare parts (509.6 million EUR) and compression-ignition engines (210.04 million EUR). From among 10 product groups as many as 9 enjoyed a growing tendency - the lowest level accounted for an almost 23% growth (spare parts and accessories) and the highest 380% (bodyworks). Sluggish export tendency was noted only in the compression-ignition engine group, which fell by 26% in comparison to June 2007. Yet this trend seems to have much in common with a several month sluggish tendency in Diesel engine cars sales in Europe. The value of export in the automotive industry for the 1st half of the year accounts for 10 billion EUR i.e. rose by 2.3 billion EUR when compared to the same period of 2007. The export dynamics in the first 6 months equals 130%. For years the European Union has continued to be the main sale market of the automotive industry in Poland. The dependence on the EU markets is substantial and in the 1st half of 2008 over 80% of the car industry export was directed to the EU countries. Yet a fall in the tendency can also be observed - over the period form June 2007 to June 2008 the share of the EU markets in the Polish car export fell by 6%. Germany continues to remain the main sale market - 23% i.e 2 361.12 million EUR of the whole export. Italy results to be the second largest recipient - 16.95% i.e. 1 723.07 million EUR. The third position among the biggest importers of the sector is the UK with a 7.2% share (733.24 million EUR). France and Spain are the fourth and fifth markets with respectively 5.5% (562.93 million EUR) and 5.3 % (543.17 million EUR) share in the Polish car export. The above mentioned markets jointly share round 58% of the total export in the automotive industry. The automotive export has been for years dominated by three product groups: passenger cars and passenger-delivery cars, spare parts and accessories and compression-ignition engines which jointly comprise round 83% of the export. Yet in comparison to the same period last year the products share fell by 3.3%. Passenger cars and passenger-delivery cars export accounted for 3.69 billion EUR what constituted 36% of the whole export in the sector. The 1st half of the year closes with a record-breaking export turnover in the automotive sector. This year’s results of over 10 billion EUR accounts for 60% of the last year’s export turnover (16 billion EUR). The sluggish consumer spending on new cars in the UE countries, being the main importers of the sector’s products, does not offer a bright outlook and the 130% dynamics in growth should not be expected in the second half of the year, especially the 4thQ 2008. Despite that the overall car industry export performance should be better than in the previous year. According to the AutomotiveSuppliers.pl, the overall 2008 export in the sector should reach between 18.5 and 19.2 billion EUR - and amount never reached in the industry before. AutomotiveSuppliers.pl is one of many companies which focus on monitoring the automotive industry. (AutomotiveSuppliers.pl, Eurostat) DID YOU KNOW...? EXPO 2010 Online  For the first time ever the EXPO Participants’ Pavilions will be presented on a virtual platform, which will form an integral part of the event. Thanks to the Online version the pavilions’ projects together with many interactive attractions prepared by the organizers and participants will be easily accessible and open for a virtual visit for people from all around the world, especially for those that will not have the opportunity to go to Shanghai. Poland is the 27th country (out of 53 participant) to sign the EXPO Online participation contract. 
Editorial office: Polish Information and Foreign Investment Agency, 00-585 Warsaw, Bagatela Street 12 Economic Promotion Department, tel: (+48 22) 334 98 15, fax: (+48 22) 334 99 98, e-mail: redakcja@paiz.gov.pl | |||||||||||
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