POLISH INFORMATION AND FOREIGN INVESTMENT AGENCY Possibilities of co-operation with Polish companies Polish Croatian Business Forum Marek Szostak Deputy Director Foreign Investment Department Warsaw, January 28th, 2016 1
Poland keyfacts Key Facts Official name Official language Capital Area Population Currency Time zone Republic of Poland Polish Warsaw 312 700 sq km (6 th in EU) 38,5 milion (6 th in EU) Polish Złoty 100 JPY ~ 3.4 PLN, 1 USD ~ 4.0 PLN, 1 EUR ~ 4.36 PLN (as of Jan 2016) UTC +1 (Winter) UTC +2 (Summer)
Source: GDP annual growth rates, Eurostat, June 2015 European growth champion
Future looks just as bright Real GDP growth forecasts(%) 2015 (f) 2016 (f) 2017 (f) Romania 3.5 4.1 3.6 Poland 3.5 3.5 3.5 Slovakia 3.2 2.9 3.3 Czech Republic 4.3 2.2 2.7 Hungary 2.9 2.2 2.5 Bulgaria 1.7 1.5 2.0 EU28 1.9 2.0 2.1 Eurozone 1.6 1.8. 1.9 Germany 1.7 1.9 1.9 Source: Eurostat, European Commission, November 2015
Tax rates in Poland Corporate Income Tax (CIT) 19% Personal Income Tax (PIT) 18%, 32% Value added tax (VAT) basic: 23% reduced: 8%, 5% export: 0% Social Security Tax paid by employer between: 19.21% and 22.41% Real Estate Tax (maximum tax limits in 2016) 22,86 PLN/sqm for buildings 0.89PLN/sqmfor land 2% of construction value Source: PAIiIZ
Vast pool of young labour force National unemployment rate: 9.6% Registered unemployed by regions 25 20 15 10 5 Zachodniopomorskie 76 400 Pomorskie 76 300 Kujawsko- -Pomorskie 103 000 Warminsko- -Mazurskie 80 600 Podlaskie 53 200 0 01-01-2004 01-01-2008 01-01-2012 Lubuskie 37 900 Wielkopolskie 91 800 Mazowieckie 216 300 25 20 15 10 5 - Population by age classes in CEE countries 25-49 15-24 0-14 > 150 000 110 000 150 000 90 000 110 000 40 000 90 000 < 40 000 Dolnoslaskie 97 000 Opolskie 33 800 Lodzkie 106 900 Slaskie 146 400 Swietokrzyskie 63 000 Malopolskie 115 600 Lubelskie 100 500 Podkarpackie 117 800 Source: Central Statistical Office, November 2015
Productivity growth > wages growth Gross wages(eur) Productivity and wages growth 1 000 1 099 900 999 800 899 < 800 Zachodniopomorskie 836 Lubuskie 838 1 100 Dolnoslaskie 1 141 Pomorskie 943 Wielkopolskie 902 Kujawsko- -Pomorskie 814 Opolskie 886 Lodzkie 954 Slaskie 1 114 Warminsko- -Mazurskie 777 Malopolskie 921 Mazowieckie 1 078 Swietokrzyskie 850 Podlaskie 790 Lubelskie 838 Podkarpackie 806 120 100 80 60 40 20 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Annual productivity in PLN th. Annual average wage in PLN th. Minimum grosswage: 1 850 PLN (~416 EUR) Source: Central Statistical Office, December 2015; Eurostat, 2013
Quickly developing road infrastructure Distance to (km) Hamburg Rotterdam Wroclaw 630 1000 Poznan 550 920 Katowice 800 1180 Krakow 880 1250 Lodz 750 1120 Warsaw 850 1230 Gdansk 770 1250 Net cost of a 40 container transport by truck City Gdansk Warsaw Katowice Frankfurt am Main Amsterdam 2 150 EUR 2 450 EUR existing in construction Source: General Directorate for National Roads and Highways, December 2015
Dense airport coverage GDAŃSK Direct flights to major international destinations SZYMANY Warsaw Kraków Gdańsk Wrocław Tokyo, Beijing, Dubai, Toronto, New York, Chicago, London, Berlin, Frankfurt, Munich, Paris, Dublin, Milan, Brussels Berlin, London, Frankfurt, Munich, Paris, Dublin, Milan, Brussels Berlin, London, Frankfurt, Munich, Paris, Dublin London, Frankfurt, Munich, Paris, Dublin, Brussels SZCZECIN ZIELONA GÓRA POZNAŃ WROCŁAW BYDGOSZCZ ŁÓDŹ MODLIN WARSZAWA LUBLIN Rzeszów Poznań Lublin Bydgoszcz London, Frankfurt, Munich, Dublin London, Frankfurt, Paris, Munich, Dublin London, Frankfurt, Dublin, Brussels London, Frankfurt, Dublin RZESZÓW Overseas flights KATOWICE KRAKÓW European flights Domestic flights Passengers served by airports (in mn) Katowice London, Paris, Milan Łódź London, Munich, Dublin Szczecin London, Dublin Source: The Civil Aviation Authority, January 2016
Doing Business 2016 DOING BUSINESS 2016 RANK DOING BUSINESS 2015 RANK DOING BUSINESS 2014 RANK DOING BUSINESS 2013 RANK DOING BUSINESS 2012 RANK 25 32 45 55 74 Every region has a leading champion in the scope of improvements made since 2005 whether Poland for OECD high-income economies, China for East Asia and the Pacific or Colombia for Latin America and the Caribbean. Source: World Bank, Doing Business 2016, 2015, 2014, 2013, 2012
Academic hub in each major city 24mnpeopleaged49andless(64%) Almost 1.47 m students(2014/2015) More than 424 000 graduates (2014) Over 46 thousand foreign students from 149 countries(3.1% of all students) More than 90% of students speak foreign languages Population with higher education: 17% Gdansk Olsztyn Szczecin Bialystok Bydgoszcz/Torun Warsaw Poznan Zielona Gora Lodz Lublin Wroclaw Kielce Opole Katowice Krakow Rzeszow No. of students (thousands) 201 > 151 200 101 150 51 100 50 < 438 higher education institutions Students Graduates 19 universities 25 technical universities 72 academies of economics 200 different majors taught Growing number of science students Warszawa 247515 63884 Krakow 165857 46475 Wroclaw 122146 31609 Poznan 116969 32505 Katowice aggl. 105478 31950 Gdansk aggl. 92203 23760 Lodz 80 676 21 343 Lublin 69 658 20 469 Source: Central Statistical Office, November 2015
Croatian investments in Poland Croatia & Poland - trade profile Croatia s trade balance with Poland (in millions EUR), 2005-2014 Imports Exports Bilateral trade (in millions EUR) 2013 I VII 2014 I VII 2015 Export 97.4 60.6 107.3 Import 327.6 218.2 325.6 Trade balance -230.3-157.6-218.3 Source: Croatian Central Bank
Croatian investments in Poland Poland & Croatia export opportunities Export opportunities furniture cars and auto parts agriculture machinery cosmetics household appliances meat and milk products fruits and vegetables yachts and boats
Croatia Croatian & Poland investments - in Poland profile Value of Croatian investments in Poland: -19.1 mlneur (National Bank of Poland, 2014) - 141.1 mln EUR (Croatian Central Bank, 2015) Poland is Croatia s important investment destination (7th globally and3rdin Europe) Value of Polish investments in Croatia: -63.2 mlneur (National Bank of Poland, 2014) - 73.1 mln EUR (Croatian Central Bank, 2015) Investment opportunities environmental technologies infrastructure (roads, railroads, ports) agriculture tourism (hotels, marinas, water parks) food industry CROATIAN INVESTMENTS IN POLAND: design and construction of industrial venues renewable energy POLISH INVESTMENTS IN CROATIA: IT services Source: National Bank of Poland, Croatian Central Bank
Investment incentives (state aid) in Poland Tax breaks CIT exemption in Special Economic Zone Real estate tax exemption Cash support Government grants strategic projects EU Funds grantsfor R&D SZCZECIN GORZÓW WLKP. 35% ZIELONA GÓRA 35% 25% POZNAŃ WROCŁAW GDAŃSK 35% BYDGOSZCZ 25% OPOLE 35% TORUŃ 35% ŁÓDŹ 35% 25% KATOWICE OLSZTYN 50% KRAKÓW 15-35% WARSZAWA KIELCE 35% 35% LUBLIN RZESZÓW BIAŁYSTOK 50% 50% 50% EU Fundsin Poland 2007 2013 Total: EUR 975 bn Poland: EUR 69 bn(7%) 2014 2020 Total: EUR 960 bn Poland: EUR 82.5 bn(8%)
The most popular sectors and investing countries Total of 185 potential FDI projects serviced by Invest in Poland Agency Total valueof investments: EUR 4,1 bn Total number of new workplaces: 37,8 thous. Main sectors: BSS + ICT (61) Automotive(38) R&D (15) Aviation(13) Food processing (11) Major countries investors: USA (45) Germany (26) Japan(13) France (13) Source: PAIiIZ portfolio, January2016
PAIiIZ one-stop-shop for all FDI needs Considering of investment Marketing campaigns, investment seminars, workshops, study tours Cooperation with Polish Embassies Long list of countries 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
ou for your attention! marek.szostak@paiz.gov.pl invest@paiz.gov.pl www.paiz.gov.pl