Slovenia’s value proposition as a location for FDI
Since the late 1970s when the first foreign investors came to Slovenia, the skill base remains the country’s key attraction as an inward investment location. Skilled labour is available to a range of industries making Slovenia an easy location for investors to fill talent. Other advantages include adaptability of companies and of workforce, business legislation, investment incentives, cuts in the corporate income tax rate until 2015 and investment tax allowances. Foreign investors’ perception of Slovenia as a host for FDI is improving as gross value added per employee keeps increasing against a backdrop of the decreasing number of employees over the past few years. Manufacturing companies lead the way in generating the highest gross value added and among them large companies account for more gross value added than all other companies put together.
Most foreign investors are attracted by Slovenia’s strategic position at the heart of Europe, its excellent transport and ITC infrastructure, its value chains, industry clusters and centres of excellence. Investors keen on locating their operations at the heart of the market with 500 million consumers will find Slovenia’s international commercial contacts and the land-sea-air transport system ideal. A corporate culture of transparency and accountability, observance of international technical standards, personal integrity and company loyalty make a foreign manager’s job easy ever since the first big international companies established their operations in Slovenia. Investor confidence thrives on legal and institutional reforms designed to facilitate investment. Staring a company is straightforward and easy through single-access points to register a limited liability company, obtain a construction permit and carry out any other administrative procedures. Slovenia as a potential host country has balanced class forces, class-based economic disputes are rare and wages are very reasonable for the level of education and skills of the local workforce.
For investors seeking to buy into state-owned enterprises, timing is perfect as the government is preparing to dispose of its stakes under the sovereign holding law. The process of selling assets will be transparent and investors will have only one entity to talk to.
They are already here: Aviat Networks, Belimed, Bosch Siemens, Danfoss, Deloitte, Geberit, Goodyear, GKN Industries, Grammer, Grieshaber Logistik, Gruppo Bonazzi, Henkel, IBM, Intesa Sanpaolo, Johnson Controls, Microsoft, Mobilkom, Novartis Pharma, Odelo, Palfinger, Reiffeisen Bank, Renault, S&T, Société Générale, Unicredit Bank, Wolford, Yaskawa …