1 Poland The Attractive Place for Investment and Trade Bartosz Komasa Sekcja Dalekowschodnia PAIiIZ

2 POLAND – DESTINATION OF CHINESE INVESTMENT

3 Zmiana kierunku inwestycji Obecna sytuacja: - średni roczny napływ inwestycji do Chin – 60 mld USD (rok 2005 – 72 mld USD) Nowe trendy: - restrykcje dla zagranicznych firm, które przejmują chińskie przedsiębiorstwa (sektor bankowy, detaliczny i produkcyjny) - ”go global” policy - zachęcanie rodzimych firm do inwestowania zagranicą w celu zdobywania większego udziału w globalnych rynkach (w rozmaitych branżach) - umocnienie pozycji wobec zagranicznej konkurencji - podważanie zalet przyciągania FDI przez działaczy politycznych - promocja chińskich technologii i rozmaitych gałęzi chińskiego przemysłu na świecie - omijanie barier celnych poprzez inwestycje w danym kraju

4 Jaki kierunek? Źródło: raport China Council for the Promotion of International Trade (CCPIT)

5 Jaki kierunek? Źródło: raport China Council for the Promotion of International Trade (CCPIT)

6 Czynniki determinujące wybór lokalizacji inwestycji Źródło: raport China Council for the Promotion of International Trade (CCPIT)

7 Why Poland?

8 There has never been a better time... (i)Investment Potential Poland is currently ranked 1st in terms of planned investments in Europe Expected return on investment estimates are 4 times that of Germany Economic indicators (ii) Human Capital Poland’s most valuable asset – its 20 million young talented people Poland ranks 3rd in terms of planned R&D investment after China and India (iii) Strategic Location\ Services&Manufacturing Hub In the heart of continental Europe – 250m people within a 1000 km radius Well established East West trade routes Part of the Trans European Road Network

9 Rank 4 - top 10 most attractive investment destinations E&Y, „European Attractiveness Survey” 2005

10 FDI Confidence Index, Poland ranks 5th globally

11 Investment potential of Poland Source: FDI Confidence Index Report, AT Kearney 2006 GDP growth twice that of Western Europe Expected return on investment is estimated at 2 times that of Spain and 4 times that of Germany GDP growth in Poland in %

12 Poland has the highest unemployment rate among EU countries Source: Central Statistical Office, International Statistics Quarterly, 2005 High level of unemployment means there are many employees available The pressure on raising wages is also low Unemployment rate in April 2006 Unemployment rate in Poland, 2003-2006

13 Human capital (i)Demographic structure Young society Approx. 38 million people (ii) Talent pool 427 higher education institutes 2 million students Availability of engineers Flexibility, Hard-working

14 Human capital - demography 50% under 34 years, 35% is under 25 years of age

15 Talent pool - Main Academic Centres Gdańsk Warszawa Kraków Poznań Wrocław Katowice Łódź Szczecin Białystok Olsztyn Lublin Rzeszów Toruń Bydgoszcz Kielce Education in Poland:  Students - 2 million  Graduates - 384 thousand  Higher education schools - 427

16 Academy of International Studies Adam Mickiewicz University Oriental Institute Jagiellonian University Faculty of Filology Warsaw University Oriental Institute Warsaw Poznan Chinese Faculties at Polish Universities Krakow Lodz

17 Poland offers a larger pool of scientists and engineers than Czech Republic, Hungary and Slovakia combined 0 0,5 1 1,5 2 2,5 3 3,5 4 4,5 Slovakia 20 thous Poland – 438 thous Hungary – 146 thous Czech Rep. - 154 Labour force (mln) scientists and engineers as a % of labour force Poland disposes of the largest pool of scientists and engineers among its neighbours, even though share of scientists and engineers in labour force in Hungary is slightly higher. Source: Who are Europe’s highly qualified human resources and where do they all work? EUROSTAT 11/2004 5 10 15 20 Availability of scientists and engineers

18 Students from Poland are winning major programming contests Best Universities 1.Warsaw University 2.Moscow State University 3.Saratov State University... 9.Jagiellonian University 23.Poznan University of Technology TopCoder is fast becoming the major league for programming competitions Source: www.topcoder.com, May 2005 Polish students were the best coders in 2003, 2004 and 2005 Source: www.topcoder.com, August 2005

19 Strategic Location\ Manufacturing Hub (i)EU member 450 million consumers in the EU New road infrastructure – massive investment of EU funds 90 billion Euro of EU Funds (2007-2013) (ii) Bridging East and West 250 million people within a 1000 km radius Deep sea terminal access – Gdansk Access to air and railway connections (iii) Services&Manufacturing hub 19% CIT Human resources Low risk

20 Part of the single market of 455 million Free movement of goods, services, capital and labour A rise of production volume Increase in FDI inflow Increase of economic credibility Transparent and known legal system Financial aid funds from the EU Saving of time on procedures while exporting and importing to the EU Easy transport within the EU, no delays on border crossings No exchange rate risks after Poland joins the Euro Polish EU Accession is beneficial for your Company

21 EUROPEAN UNION – CORPORATE INCOME TAX EU COUNTRIESCIT GERMANY38.34% SPAIN35% FRANCE33.33% THE UK30% GREECE29% CZECH REPUBLIC24% SLOVAKIA19% POLAND19% Vs. ASIAN COUNTRIESCIT JAPAN40.7% INDIA33.66% CHINA33% MALAYSIA28% REPUBLIC OF KOREA 27.5% Source: KPMG

22 Major cities in Poland offer direct air connections Direct flights to major European and world cities TO FROM LONDON WARSAW GDAŃSK, WROCŁAW KRAKÓW, BYDGOSZCZ SZCZECIN, RZESZÓW COPENHAGEN WARSAW, SZCZECIN GDAŃSK, WROCŁAW POZNAŃ, KRAKÓW FRANKFURT WARSAW, GDAŃSK RZESZÓW, KATOWICE WROCŁAW, KRAKÓW POZNAŃ PARIS WARSAW, KATOWICE KRAKÓW MUNICH WARSAW, WROCŁAW KATOWICE, KRAKÓW BARCELONA WARSAW, KATOWICE KRAKÓW NEW YORK, CHICAGO WARSAW, KRAKÓW TEL AVIVWARSAW, KRAKÓW Overseas flights European flights Domestic connections SZCZECIN GDAŃSK BYDGOSZCZ POZNAŃ ZIELONA GÓRA WROCŁAW KATOWICE KRAKÓW WARSAW RZESZÓW ŁÓDŹ Source: Polish Airports

23 motorways to be completed until 2013 Source: General Directorate for Polish Roads and Motorways Motorway network

24 SLAWKOW - Railway connection Possibility to use faster railway connection straight to Poland

25 Major Chinese Investors in Poland Koszalin Wolka Kosowska Zyrardow Warszawa Gdansk First Chinese Industrial Park in Europe - established in 2004 - SEZ Koszalin City

26 Location – Biskupice Podgórne near Wroclaw Declared investment outlays – EUR 429 mln Activity - electronics Wroclaw LG.Philips LCD factory in Poland „Poland has a central location in Europe and will soon obtain an excellent transport infrastructure. The nearby city of Wroclaw has a student population of more than 100,000, which means that there will be a steady supply of well qualified graduates for recruitment purposes." Duke Koo, Executive Vice President of Worldwide Sales from LG.Philips LCD

27 Conclusions  Investment Potential - international ranking - economic indicators  Human Capital - demographic structure - talent pool  Strategic Location\ Services&Manufacturing Hub - EU member - bridging East and West - services&Manufacturing hub

28 Conclusions Poland = Attractive Place for Investment on the top of that we offer INCENTIVES

29 In Special Economic Zones it is possible to receive regional state aid  Benefits from obtaining a permit to conduct activities in SEZs eligibility for income tax exemption – a form of regional aid plot of land prepared for an investment project, available at a competitive price free assistance in dealing with formalities relating to investment project exemption from real estate tax grants for employee training programmes grants for the creation of new jobs A special economic zone (SEZ) is a designated area in which manufacturing or distribution activities can be conducted on preferential terms The purpose of SEZs is to support regional development Currently, there are 14 SEZ in Poland, each consisting of several subzones Total area of all SEZ – ca. 6,300 hectares. Additional 1,700 available for big investors from June 2004 SEZ operate until 2015-2017 Permits to conduct activities in SEZ are issued by the authorities of each SEZ

30 Jakie branże Źródło: raport China Council for the Promotion of International Trade (CCPIT)

31 Jakie branże  Motoryzacja - Chery Automobile, Shanghai Automotive Group  Elektronika i AGD - Haier, Hisense, Midea  Spożywcza - WAHAHA  Telekomunikacja - Huawei, ZTE, BIRD

32 Poland

33 DZIĘKUJĘ ZA UWAGĘ www.paiz.gov.pl PL 00-585 Warsaw, 12 Bagatela Street, phone: (+48 22) 334 98 00, fax: (+48 22) 334 99 99; e-mail: [email protected]; www.paiz.gov.pl