International Business Sector in Serbia 2010/11 - Benelux

FDI

International Business Sector in Serbia 2010/11

Foreign Direct Investment

Belgium Holland

Challenging Business Opportunity November 2010

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BELGIUM

the Belgian Serbian Business Association (BSBA)

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OPPORTUNITIES FOR THE FUTURE

H.E. MS. DENISE DE HAUWERE, Ambassador of Belgium to Serbia

EXPORT GROWTH

Cooperation Between the Republic of Serbia and the Kingdom of Belgium

EDITOR IN CHIEF Tatjana Ostojić t.ostojic@cma.rs ASSISTANT EDITOR Philomena O’Brien p.obrien@aim.rs

PHOTOS Darko Cvetanović TRANSLATORS Snežana Bjelotomić, Bojana Obradović PROJECT MANAGERS Jelica Lepori, j.lepori@aim.rs; Vesna Vukajlović, v.vukajlovic@aim.rs GENERAL MANAGER Ivan Novčić i.novcic@cma.rs

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FOREIGN TRADE DEFICIT

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THE WORLD'S LEGAL CAPITAL

JELENA MARJANOVIĆ, Assistant Minister, Ministry of the Economy and Regional Development’s Sector for Bilateral Economic Cooperation

Economic Relations

ART DIRECTOR Ilija Petrović i.petrovic@aim.rs EDITORIAL CONTRIBUTORS Ana Stojanović, Irena Koković

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SIGNIFICANT TRADE PARTNER

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INVESTMENT EXPANSION

JELENA MARJANOVIĆ, Assistant Minister, Ministry of the Economy and Regional Development’s Sector for Bilateral Economic Cooperation

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COMPANY REGISTER

Belgian companies

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A GLOBALISED ECONOMY

Fact and Figures

Fact and Figures

FINANCIAL DIRECTOR Ana Besedić a.besedic@cma.rs EDITORIAL MANAGER Tanja Banković, t.bankovic@cma.rs PRINTING Rotografika d.o.o.

Segedinski put 72, Subotica FDI Foreign Direct Investment – “Challenging Business Opportunity” published by: alliance international media in association with Belgian Embassy Special thanks to Ann-Véronique Mortier, Investment and Trade Commissioner, Embassy of Belgium

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NEW IDEAS FOR COOPERATION

ANN-VÉRONIQUE MORTIER, Investment and Trade Commissioner, Embassy of Belgium

18 Tourism

CHOCOLATE HEAVEN

HOLLAND

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TULIP MANIA Tourism

Kneginje Zorke 11b, 11000 Belgrade, Serbia Phone: +(381 11) 308 99 77, 308 99 88 Fascimile: +(381 11) 244 81 27 E-mail: office@ allianceinternationalmedia.com www.allianceinternationalmedia.com ISSN no: 1451-7833 All rights reserved alliance international media 2010

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BUSINESS FORUM

HUGO A.M. VAN VEGHEL PHD, President of

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MARKET LIBERALISATION REQUIRED

SLOBODAN ÐINOVIĆ, CEO, Orion Telecom

Challenging Business Opportunity 2010 / 3

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DIVERSE URBANITY

History and Culture

EXCLUSIVE BUSINESS CONFERENCES

www.business-dialogue.eu

Opportunities for the Future H.E. Ms. Denise De Hauwere, Ambassador of Belgium to Serbia

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t is with particular pleasure that I welcome you to this special CorD edition dedicated to the growing Belgian business presence in Serbia.

This edition will have a closer look to the future trends and developments in the economic field between the two countries.

Serbia and Belgium enjoy a long lasting and mutual beneficial relationship on the economical level, but also in political and cultural life. Diplomatic relations between Belgium and Serbia were already established in 1879 with the opening of a Belgian consulate in Belgrade. Among the first Belgian investments in Serbia in the 19th century were the exploitation of important mine concessions, the construction of railways, the illumination of Belgrade, the funding of the glass industry of Pancevo etc...

Moreover, the Belgian national bank assisted in the

The Belgian federal government and its federal entities take a keen interest in the further development of the existing economic relations with Serbia establishment of its Serbian counterpart; the first ever banknotes in dinars were printed in Belgium!

This economic presence of Belgian investors, although in different forms, in Serbia has continued until this day.

The Belgian federal government and its federal entities take a keen interest in the further development of the existing economic relations with Serbia. The creation of a favourable and transparent business climate is an important aspect of the further European integration of Serbia. As a member state of the European Union, Belgium supports

Serbia on its path towards EU integration.

In its function of the rotating presidency of the council of the EU, Belgium behaves as an honest broker, endeavouring to find a consensus amongst the 27 European Union member states.

On the bilateral level the relations between the two countries are very good, which can be illustrated by the signing of some important agreements. In July an agreement on social protection was signed by Belgian Prime Minister Leterme and Serbian President Tadic. In the near future we have good hopes that an agreement will be concluded over the promotion and reciprocal protection of investments. Moreover, police and justice cooperation between Belgium and Serbia is excellent.

I am happy that in May of this year the BelgianSerbian Business Club was founded. This group is still young but aims at becoming an important actor for the improvement of the economic relations between Belgium and Serbia, as there are still many opportunities for cooperation between the businesses of both countries.

The prospect of further European integration of Serbia, leads me to look as well with great confidence into the future of Belgian-Serbian economical relations. Intensified contacts will open the door for a better mutual understanding and multiple opportunities for an increased cooperation. On the other hand by means of Serbia’s EU integration better standards, more transparent procedures and the harmonisation of laws will unmistakably be beneficial for the future cooperation of Belgian and Serbian businesses.

Challenging Business Opportunity 2010 / 5

intervieW

Jelena Marjanović, Assistant Minister, Ministry of the Economy and Regional Development’s Sector for Bilateral Economic Cooperation

Investment Expansion

by ana Stojanović

Belgian companies have expressed interest in investing in sustainable energy resources.

Realistically speaking, we do expect a more dynamic investment growth compared to the period from 2004 to 2009

I

n the coming period Serbia is expecting an influx of new investments from Belgium. The levels of investments to date and those expected in the coming period were just some of the issues discussed with Jelena Marjanovic, Assistant Minister, at the Ministry of Economy and Regional Development's Sector for Bilateral Economic Cooperation.

● Belgium is placed in the middle of the list of the most important foreign trade partners of Serbia.

The value of Serbia’s exports to Belgium in 2009 stood at $113.7 million, while Serbia imported from Belgium $152.9 worth of 6 / Challenging Business Opportunity 2010

goods and services. In the same year, exports dropped by 1.8% compared to 2008, while imports declined by 40.3% in relation to the year before. In your opinion, what caused this decline in both exports and imports?

- The global economic downturn has certainly affected the volume of economic collaboration with Belgium. The significant decline of imports from Belgium of over 40% is a result of the diminished industrial production in Belgium, as well as reduced demand in Serbia. This trend is not only present in foreign trade exchange with Belgium, but also in trading with other EU and developed countries. ● What Serbian products are in the highest demand in Belgium and how can we balance out the foreign trade exchange between the two countries?

- Our relatively modest export to Belgium in 2008 mostly pertains to organic chemical products, which have a 19.9% share in the overall exports to this country. One of the most important products from this group is certainly acetic acid which participates with 16.36% of the total Serbian export to Belgium. Fruits and vegetables come next, primarily raspberries and blackberries, fol-

● According to the National Bank of Serbia’s data, in the period between 2000 and 2009, Belgium made $67.5 million worth of direct cash investments. Can we expect Belgium to make more

The global economic downturn has certainly affected the volume of economic collaboration with Belgium

Through Belgium and Serbia making joint direct investments in the production of latex, we could increase exports to Belgium, as well as to third markets, especially Russia

of such investments in Serbia in the following period?

- There are over 70 companies from Belgium that operate in Serbia with the most prominent being Mondi, KBC Bank, Planta Spontanea, Arex Marzipan, Atlas Copco, Carpetland,

lowed by iron and steel, non-ferrous metals, yarns, fabrics and textile products. There is also a heightened interest in importing chemical products from Serbia, like latex. Through Belgium and Serbia making joint direct investments in the production of latex, we could increase exports to Belgium, as well as to third markets, especially Russia.

Challenging Business Opportunity 2010 / 7

Puratos, Minel Schreder, DIY, Teldico, Robelco and others. We are currently at a very early stage of the implementation of an important investment in the production, storage and export of frozen fruits as finished products to one of the most renowned Belgian producers in that sector. Also, in the last two years, a Belgian metal processing company relocated its entire production from Belgium to Serbia.

Planta Spontanea is building a modern medical herbs processing facility in Dobra, near Donji Milanovac, while Robelco is interested in building a hotel and a shopping mall at Nikola Tesla Airport. Investments will be made in the chemical and textile processing industry, as well as in construction and trade. Also, Belgian companies have expressed interest in investing in sustainable energy resources. Realistically speaking, we do expect a more dynamic investment growth compared to the period from 2004 to 2009.

We think that Serbia being granted EU membership will be of crucial importance for investment growth, since Belgian SMEs, which are the most prevalent investors, pay a great deal of attention to how safe is to do business in a certain country. ● Belgian investors have expressed interest in investing in this region. What economy sector would be most appealing to them investment-wise?

- That would be the chemical industry, metal processing industry, energy sector and the frozen fruit industry to a certain degree. Also, it would be good to invest in health tourism and Serbian spas, and there are many other areas worth investing in. ■

intervieW

Ann-VĂŠronique Mortier, Investment and Trade Commissioner, Embassy of Belgium

New Ideas for Cooperation The arrival of KBC Banka has already helped other Belgian investors on the market so I suppose that Delhaize would be another way of making Serbia more attractive to other Belgian investors or at least to draw their attention to this market

by ana Stojanović

T

he Kingdom of Belgium is one of the moderately important foreign trade partners to the Republic of Serbia, and was ranked 18th out of the 160 countries to which Serbia exported products in 2009, according to the report of the Serbian Chamber of Commerce (PKS). The future of economic relations between Serbia and Belgium, and whether Belgian investors have an interest in investing in the Serbian market were just some of the issues we discussed with Ann-Veronique Mortier, Investment and Trade Commissioner at the Embassy of Belgium.

â—? According to the data of the National Bank of Serbia (NBS), net direct investments from Belgium, in the period 2000-2009, amounted to 67.5 million USD. At this moment, there are around 20 companies which are partly owned by Belgian capital on the Serbian market. Will the arrival of Delhaize draw more Belgian investors to invest into Serbia?

- The arrival of KBC Banka has already helped other Belgian investors on the market so I suppose that Delhaize would be another way of making Serbia more attractive to other Belgian investors or at least to draw their attention to this market. In this perspec8 / Challenging Business Opportunity 2010

tive the role to be played by the newly founded Belgian Serbian Business Association is of great importance, as it acts as a stepping stone for future Belgian investments in Serbia. Also other organisations such as Voka, the Chamber of Commerce of Eastern Flanders, is helping Serbian SME’s in improving their way of doing business through programs such as Plato. In this case, Plato enhances the exchange of experiences between Flemish and Serbian companies in an intensive and very successful way. ● Until now, the biggest Belgian investment in Serbia was the purchase of Apatinska Pivara (Apatinska Brewery) by the Belgian multinational company InBev. What are the experiences of Belgian investors?

- Mostly, Belgian investors don’t have any major problems or difficulties on the Serbian market, and they are generally satisfied with the treatment of Serbian authorities. We have noticed a positive evolution on the Serbian market related primarily to the possibility for the application of simplified customs procedures and the acceptance of EUR-1 documents for goods of European origin that reduces the tariff barriers. Although the NBS has done a great job on the stabilisation of the financial markets and making

Still today we are being confronted with unreasonable standards, inspection procedures and import licensing. Belgian investors find legal procedure slow, costly and unpredictable

Passion for excellence

Deceuninck is a leading designer and manufacturer of high quality systems for windows & doors, interior, roofline and cladding, and outdoor living (terrace/fencing). Core technologies include PVC extrusion and Deceuninck’s revolutionary Twinson material.

In the design and manufacturing of its systems and solutions, Deceuninck gives priority to innovation in materials, products and applications. These innovations include the patented UV-resistant Decoroc coating system and Twinson that merges the benefits of wood and PVC into a single base material. Deceuninck products combine this groundbreaking technology with the absolute best in timeless design, including an accent on natural colours. Deceuninck employs a cradle-to-cradle philosophy in its design and manufacturing.

Its products provide years of quality service, after which they can be fully recycled.

The Deceuninck group is active in more than 75 countries across Europe, North America and Asia, has 35 production and sales subsidiaries, and is supported by some 2,800 employees worldwide.

it attractive for investors. Nonetheless the customs procedures are still slow and vary in practice from one customs office to the other. The cost of quality controls and the cost of the regulations concerning tests and certifications are often too expensive.

Still today we are being confronted with unreasonable standards, inspection procedures and import licensing. Belgian investors find legal procedure slow, costly and unpredictable.

Although as prescribed by the CEFTA Agreement trade in the region has been completely liberalised, non-customs barriers still represent an obstacle to the full liberalisation of trade and impede the creation of a free trading zone. Serbian authorities need to show more interest in the implementation of the agreement in the Region.

Apatinska Pivara drew our attention to the fact that Serbia is the only country in the region with a water tax for the beverage industry. And moreover the calculation of that tax is not clear.

Besides this the most frequent problem is the definition of the land ownership.

DelHaiZe It would be excellent if Delhaize could enter the Serbian market because they are a supermarket chain with incredibly good quality food and a lot of variety. This can only improve our life quality!

DECEUNINCK d.o.o.

Kružni put bb, 11309 Beograd, Serbia tel: +381 11 344 32 17 fax: +381 11 244 23 43 dragan.stevanovic@deceuninck.com www.deceuninck.com • www.inoutic.com • www.twinson.net

● What sectors or projects are Belgian companies most interested in investing in?

- Belgian companies are mainly interested in investing in the metal industry, in renewable energy, banking, food and beverage sectors as well as the construction sector etc. It is important to mention that the investment of the Company Metech in a new metal processing plant in Smederevo is among the biggest foreign investments in Serbia in 2010.

Serbian authorities need to show more interest in the implementation of the agreement in the Region ● At the beginning of the year, you pointed out that Serbia should work on its image. In addition to this, is there anything else that the Serbian government should do in order to attract a higher number of foreign investments?

- In the coming months it will be important to accelerate the rate of transition reforms which will improve the business conditions and also bring Serbia closer to the European Union. In addition to this, the government has to create conditions for more improved market competition, by providing equal rights for all competitors, and proper regulation of monopolies. Although important progress has been made in previous years, the Serbian legal framework is still not clear and predictable enough, and many regulations need to be improved and harmonised. Also, some important laws, and particularly bylaws

required for the implementation of the existing laws are still missing. The public administration and judiciary system are not efficient and transparent enough, which often results in an inconsistent implementation of the laws and very lengthy procedures. ● The Kingdom of Belgium is one of the foreign investment partners of medium importance to Serbia. Are you expecting that foreign trade exchange of the two countries will increase in the following years?

- I’m sure it will increase because Serbia is improving its image and the crisis is starting to fade away. The further European integration of Serbia will definitely lead to reforms and the strengthening of Serbian institutions and the Serbian economy, which can only benefit the trade relations of the future. ● During the first half of 2010, Serbia exported goods to Belgium worth 64.4 million USD. The value of exports increased by 37.9% compared to the same period last year. Despite this fact, Serbia still has a deficit in trade with Belgium. According to your opinion, what else should be done in order to decrease this deficit?

- Attention should be paid to the quality of the products that Serbia would like to export to Belgium as it is a very demanding market used to high quality products and strong consumer protection. By consequence it is clear that the Serbian economy should in the future evolve towards an economy more focused on the production and the export of these goods. ● What Serbian products are able to find buyers in Belgium?

- Mainly food products, such as fruits and vegetables could be sold as bio-food. Mondi Serbia should be mentioned as a good example. It was the first Belgian and foreign investment in the Serbian fruit processing industry. This investment enhanced Mondi's position as a supplier of organically cultivated fruit to the European markets. Planta Spontanea is collecting herbs to make teas of high quality destined for the Belgian market.

Blockx is very successful in producing and exporting flexible polypropylene packaging from Serbia to Belgium. Also Metech, Steelforce and Assema are strong players in the metal industry in Serbia of which a big part is designated to export to Belgium and other countries of the EU. The setting up of joint ventures between Belgian and Serbian companies and investors is certainly the format that will prove to be a success in the future. In this perspective the BSBA, Belgian Serbian Business Association, is an excellent contact point to establish new opportunities for cooperation.

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10 / Challenging Business Opportunity 2010

intervieW

Hugo A.M. van Veghel PhD, President of the Belgian Serbian Business Association (BSBA)

Business Forum “The main advantage of Serbia’s market is the availability of a good workforce at a reasonable cost in the context of an emerging market with its own potentials” Business Association to create added value for all of its members. by irena Koković

● How many members does the BSBA have, and what benefits do they receive from the association? he Belgian Serbian Business - This 2010 association is a volunAssociation was established tary initiative based on a constituin May 2010. We discuss the ent meeting where 35 representaplans of this association with its prestives from the business, diplomatic ident Hugo A.M. van Veghel PhD. and public sector decided on its statThe BSBA utes. We recently launched the www. ● What is the Belgian Serbian wants to bsbiz.eu site, both in English and Business Association’s (BSBA) Serbian, where members next to our main role in Serbia? create a activity page can access relevant in- The BSBA wants to create a foforum for formation on business/tender opporrum for the Belgian-Serbian ecothe Belgian- tunities in Serbia. For our Serbian nomic community in the country. members there is an exhaustive list That is why we are inviting releSerbian of links to Belgian institutions and vant people according to two crieconomic organisations. The Blog on the web teria. On the one hand all Belgian community site is now active and will open topbusiness people who live and work ics for discussion. In the first phase in Serbia, whether as expatriates or in the we are publishing interesting busias residents, and on the other hand country ness articles as information, but those business people who reprewant to develop this as a discussion sent or express Belgian business inplatform between members. All this terests in this country, whether they is now out of the embryonic phase are Serbian or have another nationbut needs further development. Until ality. We certainly don’t want to be now new Belgian contacts have just a talking club. There are enough been mainly handled through the ofof those already and we all have fice of the commercial attaché and overly busy schedules to indulge in this should remain the primary link. that. We want this Belgian Serbian However we Plans want to be The year of 2011 will be the year for confirmation of the mission and objectives that complemenwere put forward in 2010. We want at all costs to avoid becoming a static entity, so we tary to the ofwill evaluate the first 12 months and adapt where necessary. Our main task will certainly ficial task, to be to remain the communication platform to facilitate business in Serbia and between be of added Serbia and Belgium and vice versa. value in the

T

Challenging Business Opportunity 2010 / 11

information chain that is developed in order to help prospective businesses in their decision of whether to start a business in Serbia or not.

The association does not restrict itself to mere business, although this is its core concern, but leaves space for social and cultural tasks/involvement. On one hand we are there to welcome new Belgian businesses, but also the families that come with them to live in Serbia. A fast understanding of and integration into Serbian society serves both the businessman/woman and his/her family. ● You maintain regular contacts with Belgian businessmen. What are their biggest complaints when it comes to doing business in Serbia and what are the main advantages of the Serbian market, in their opinion?

- This is an interesting issue; the BSBA is preparing a meeting with NALED (the National Association for Local Economic Development) to discuss the constraints to business where foreign investment or ownership is involved. The BSBA community has just received a relevant questionnaire allowing them to express their concerns and eventually tackle specific experiences or difficulties. It is too early to comment on possible results, but from my personal point of view the main advantage of Serbia’s market is the availability of a good workforce at a reasonable cost in the context of an emerging market with its own potentials. The country IS on track to the EU, which does not mean that it is all gold that shines, and mitigation of some negative effects of decentralisation is needed, but this is only a matter of time.

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economic relations

Economic Cooperation Between the Republic of Serbia and the Kingdom of Belgium

Export growth

In the first half of 2010 Serbia exported a total of 64.4 million USD worth of goods to Belgium. The value of exports was 37.9% higher compared to the same period last year

by ana Stojanović

T

he Kingdom of Belgium is one of the moderately important foreign trade partners to the Republic of Serbia, and was ranked 18th out of the 160 countries to which Serbia exported products in 2009, according to the report of the Serbian Chamber of Commerce (PKS). Of the 199 countries which Serbia imported products from last year, Belgium was ranked 28th.

The chart shows the dynamics of the commodities exchange between Serbia and Belgium from 2005 until the first trimester in 2010.

The value of exports to Belgium was 113.7 million USD in 2009, which represents 1.36 percent of the total exports of Serbia that year and it was a decrease of 1.8 percent compared to exports in 2008. Serbia acquired a relatively modest income from exports to Belgium in 2009 by selling the following commodities: vegetables and fruit (which makes up 22.96 percent of total exports to Belgium, primarily raspberries and blackberries); iron and steel (12.71 percent of the total

exports to the Belgian market) and the leading exporter was US Steel; tobacco and tobacco products (11.8 percent); office and automatic data processing equipment (8.44 percent) and yarn, textile and textile products, which made up 6.41 percent of exports to Belgium.

The value of Serbian imports from Belgium was 152.9 million USD (which was 0.98 percent of overall Serbian imports) in 2009 and it fell 40.3 percent compared to imports in 2008. Serbia mostly imported these products from Belgium in 2009: primary form plastic material (that made up 9.94 percent of total imports from Belgium); medical and pharmaceutical products (9.21%); vehicles (6.35%); yarn, textile and textile prod-

The dominant tendency of buy-andsell in exports and imports was also present in the first half of 2010 ucts (5.99%) and electric machines, appliances and equipment (3.79%).

Serbia exported commodities worth 64.4 million USD to Belgium in the first half of 2010. The value of exports was 37.9% higher than in the same period last year. Together with imports of 86.4 million USD (21.9% higher than in the same period last year), a deficit of 21.9 million USD was recorded. Due to the faster growth of exports than imports, the deficit in commodities exchange with Belgium in the first half of 2010 decreased by 12 / Challenging Business Opportunity 2010

8.7% compared to the same period last year.

The coverage of imports with exports considerably improved in 2009, compared to the previous years. Developments in commodities exchange with Belgium in the first half of 2010 indicate that the growth of this indicator could continue. The primary products in export to the Belgium market in the first six months of 2010 were iron and steel (making up 17.7% of total Serbian exports to this market), vegetables and fruit (16.5%), different finished products (7.1%), tobacco and tobacco products (6.1%) and yarn, textile and textile products (5.7%).

Simultaneously, in the first half of 2010, Serbia imported from Belgium mostly chemical material and products (participation in the total import from this market was 10.5%), primary form plastic material (9.2%), medical and pharmaceutical products (7.9%), yarn, textile and textile products (5.4%) and special machines for certain industrial departments (3.8%).

The Kingdom of Belgium is a highly developed industrial country, which imports raw and semi-finished products and exports finished products. However, considering the high level of openness of Belgium toward the currents of international trade, finished products could also find a place on the market of this country (primarily food products, clothes and footwear, sports equipment, cosmetics, furniture, products for interior deco-

ration, electric appliances and toys).

There is also demand for some chemical industry products, especially plastic material and resins, computer technology products and services, as well as tourist services, especially regarding the area of health tourism. There are also possibilities for production cooperation, especially in the metal processing industry (machinery, electronic industry, production of vehicles), but also in the chemical industry and the agriculture-food sector.

However, the dominant form of economic cooperation between Serbia and Belgium is still in a classic buyand-sell form, which made up 83.83% of exports and 94.99% of imports from this country in 2009. Cultivation should also be mentioned as this area covered 11.90% of exports and 1.92% of imports.

The dominant tendency of buyand-sell in exports and imports was also present in the first half of 2010.

This form of cooperation made up

Trade exchange between Serbia and Belgium (millions USD)

300 250

219,6

200 150 100

65,8

148,2 111,1 99,4 87,5

256,4 152,9 113,7

115,8

70,8 64,4 46,7

50

86,4

0 -50 -100

-45,3

-150

-120,2

-200 2005

-24,1

-39,2

-22

-60,7

2006

2007

Exports

Imports

Balance

-140,6 2008

2009

2009,i-vi 2010,i-vi

The value of exports to Belgium was 113.7 million USD in 2009, which represents 1.36 percent of the total exports of Serbia that year and it was a decrease of 1.8 percent compared to exports in 2008 88% of the total export of commodities to the Belgian market and 94.3% of the total import of commodities in that period. Also, cultivation significantly participated in the first half of

Challenging Business Oportunity 2010 / 13

2010 at 7.8%. The leading Serbian exporter to Belgium in 2009 was US STEEL Serbia, Smederevo, whose realised exports to Belgium made up 12.43% of the total Serbian exports to this country. In the first half of 2010, the Methanol-Acetic Acid complex from Kikinda joined the list of leading exporters to Belgium, with participation of 14% in the total exports to Belgium in that period. This organisation exports acetic acid that is also ranked first on the list of exported products by customs fee with participation of 14% of the total Serbian export to Belgium in this period. The leading exporter to Belgium in the first half of 2010 was US STEEL Serbia making up 17.6% of the total exports to Belgium. The top ten exporters make 70.4% of the total Serbian export to Belgium in the period between January and June 2010. On the other side, Delta Sport has the leading position in imports in the first half of the year (with

2.7%). The top ten importers make up 18.9% of the total Serbian imports from Belgium.

DIRECT FOREIGN INVESTMENTS FROM BELGIUM IN SERBIA According to the National Bank of Serbia (NBS), net direct investments from Belgium in cash totalled 67.5 million USD in the period between 2000 and 2009. There are about 20 companies with Belgian capital present in Serbia at the moment. So far, the largest Belgian investment in Serbia has been the purchase of Apatin Brewery by Belgian multinational company InBev. Also, the most recent large investment from Belgium has been the purchase of A Bank (formerly Alco Bank) by KBC, the third largest insurance and banking group in Belgium with capital of 32 billion EUR, 50,000 employees and 12 million clients. In 2009, Apatin Brewery was sold to Anheuser-Busch InBev (created by the merging of American AnheuserBusch and Belgian InBev group) and CVC Capital Partners, who actually bought all InBev breweries in Central Europe, including Apatin Brewery.

CVC Capital Partners is a global financial, consultant and investment company founded in 1981 and it currently invests about 18 billion EUR through its funds. CVC Fund owns

51 companies all around the world, which employ 280,000 people. One of the last significant investments of Belgian companies in Serbia is certainly the investment of Electrawinds, whose owner also owns the Serbian company Energo Zelena , which will invest some 22 million EUR in the construction of a factory in Indjija municipality. The factory will be located in northeast industrial zone in Indjija and it will cover 2.5 hectares of land, near the motorway. Energo Zelena deals with ecological management of animal waste, and Electrawinds is the

Belgium is ranked 19th on the list of investors in Serbia from 2000. in the period between 2000 and 2009 largest private company that deals with renewable energy sources in Belgium.

Since the start of reforms in Serbia, several organised economic delegations have made trips in both directions. The last significant visit of Serbian businessmen to Belgium was

Belgian Direct Investments

in the period between 2000 and 2009

Year

Net investments in cash, in 000 USD

2000

0

2001

0

2002

344

2003

1.925

2004

2.523

2005

12.407

2006

6.464

2007

24.038

2008

16.246

2009

3.509

Total

67.456

Direct net investments of Belgium in cash in the period between 2000 and 2009 are shown in the table. By the level of these investments, Belgium is ranked 19th on the list of investors in Serbia in the relevant period

Note: NBS receives the figures shown here from business banks, which means that the data refers to payment countries, not investment countries. Thus, these figures must be observed with some reserve. For example, the largest Belgian investment in Serbia, the purchase of Apatin Brewery, was made via Dutch subsidiary Interbrew and it is actually registered as a Dutch investment. In the period between January and July 2010, NBS registered a net income of 2.8 million USD from Belgium.

Source: National Bank of Serbia

14 / Challenging Business Opportunity 2010

made at the end of 2007, when the host of the Serbian delegation was the Flanders Investment and Trade agency and the Brussels Business Federation.

The most recent delegation of Belgian businessmen (from all three regions) visited Serbia in June 2010, as a part of a wider visit to the region (besides Serbia, the Belgian businessmen also visited Croatia). There were 19 businessmen in this business delegation, primarily oriented to sell their products on the Serbian market. The fact that this was the second visit of a Belgian business delegation to Serbia in 10 months (the previous delegation was in Serbia in October 2009) confirms that Belgian businessmen are interested in this region of Europe.

In order to improve economic cooperation and use experiences and advanced technologies in business, the Serbian Chamber of Commerce has joined the PLATO project, a Belgian network for development and mutual cooperation between small and medium-sized companies with the assistance of managers from large companies. Plato Project Serbia is jointly run by the Serbian Chamber of Commerce (PKS) and the Flanders Region Chamber of Commerce (Voka). It is financed by the government of Flanders, with the aid of the European Commission, which has also declared it one of the ten best models for achieving competitiveness of the MSP sector. In addition to European countries, the Plato network is also established in Egypt and South Africa, and participants are able to select topics that range from finance to ecology and investments. Also, in order to improve mutual economic cooperation, a Belgian-Serbian business association was recently formed in Serbia (www. bsbiz.eu). This association has a goal of improving business and social cooperation between Serbia and Belgium in the general context of joining the European Union, to offer support in the area of business connections between members from Serbia and Belgium, especially during the EU presidency of the Kingdom of Belgium. â–

COMPANY REGISTER ASSEMA d.o.o.

Miloja Pavlovica 9/9b Kragujevac Phone:+381 34 338006, +381 34 500 086 Director Goran Andric office@assema-machines.com www.assema-machines.com

APATINSKA PIVARA a.d.

NOVI BEOGRAD Milutina Milankovica 11a, I sprat, GTC Square, 11070 Beograd Phone: +381/11/30-72-400 +381/11/30-72-408 (office manager) +381/11/3072406 (corporate affairs manager) Gsm +381/64/8444-440 (office manager) Fax: +381/11/30-72-444 www.inbev.com www.jelenpivo.com

APATINSKA PIVARA APATIN d.o.o.

Trg Oslobodjenja 5 25260 Apatin Vojvodina Phone : +381/25/783-111 Fax : +381/25/773 070 Svetlana.vukelic@starbev.com www.jelenpivo.com

BLOCKX d.o.o EXPORT- IMPORT Ciglanska bb – 21470 Bački Petrovac Phone : +381/21/781-507, +381/64/155-62-69, Fax : +381/21/781-487 lou@louisblockxnv.be ; blockx@stcable.net

BONIMEX S.A. Leeweg 22 – 9270 Laarne – Belgique Phone : +32/9/369-49-67 Fax : +32/9/369-54-94 g.wylocke@bonimex.be info@bonimex.be

CITY MAGAZINE Kapetan Misina 8/3 11000 Belgrade Phone: +381/11/328-60-88 Fax: +381/11/263 53 22 www.citymagazine.rs

DECEUNINCK d.o.o.

Kruzni Put bb, Lestane 11309 Beograd Phone: +381/11/344-32-17 Fax: +381/11/244-23-43 www.deceuninck.com

DE VALK d.o.o. + EUROTEP Prvomajska 45 26000 Pancevo Phone: +381/13/304-977 Fax:: +381/13/334-313 office@eurotep.rs

Belgian companies

ELECTRAWINDS S (EASTERN EUROPE) Cordierlaan 9 – 8400 Oostende, Belgium Phone : +32/59/569-700 Fax : +32/59/569-701 Melita.rogelj@electrawinds.be

GOVI BALKAN d.o.o.

Gavrila Principa 5 – 15000 Sabac – Serbie Phone : +381/15/34-71-29 Fax :+ 381/15/34-48-37 info@govi.com

HELLEBUYCK ARCHITECTS Bulevar Nikole Tesle 20/13 – 11080 Zemun, Serbia Phone: +381/11/260-3882 Fax: +381/11/269-1913 jan.hellebuyck@casino-beograd. com jan.hellebuyck@gcb.rs

IBA Molecular Phone :+ 32/10/20-12-30 Peter.leitner@iba-group.com Info-worldwide@iba-group.com Info-cyclo@iba-group.com

RESINEX SRBIJA d.o.o.

Ul. Balkanska 29/III – 11000 Beograd Phone : +381/11/3065577 Fax :+ 381/11/2681644 v.sotra@resinex.rs

SOCIETE MINIERE DE BELOGRADCHIK (BULGARIE-SERBIE) Bulgarie : Quartier Zdravets 35 – etage 2 – 3900 Belogradchik – mine de Vrska Cuka Avramica – Bulgarie ; côté serbe : mine de Resavica Phone : +359 888 969 196 miniere@wautelet.net j.c.rombeaux@skynet.be

STEELFORCE EUROPE BV PHONE : +381/11/311-95-85 Marko.damjanovic@steelforce. net

ST. JUDE MEDICAL BALKAN d.o.o.

Beograd Bulevar Mihaila Pupina 6 – 11000 Phone :+ 381/37/443342 Fax :+ 381/37/449920 Beograd info@biromarketing.com brana@biromarketing.com TARA INTERNATIONAL

KBC BANKA a.d. – BEOGRAD CONSULTING d.d.o

Beograd Phone :+ 381/11/3910-907 Fax :+ 381/11/2460-749 profexd@eunet.rs

PUNCH GRAPHIX SRB d.o.o.

Airport City, Omladinskih brigada 90v – 1170 Beograd Phone : +381/11/30-50-300 Fax :+ 381/11/228-2028 office@kbcbanka.rs www.kbcbanka.rs

Narodnog Fronta 73A/51-52, 21000 Novi Sad Phone:+ 381/60/525 00 20 Fax :+ 381/21/63 666 12 h.vanveghel@tara-internationalconsulting.eu

BOMARAN d.o.o.

KBC SECURITIES

WILHELM & Co. SA/NV

CALYPSO RM d.o.o.

Takovska 23-25 – 11000 Beograd Phone: +381/11/333 05 00Fax: +381/11/333 05 02 office@kbcsecurites.rs

Ul.Koste Glavinica 9/5 – 11000 Belgrade Phone :+ 381/649427791 www.wilhelmandco.be

Slobodana Lale Berberskog 3B – Zvezdara - 11000 Beograd Phone :+ 381/11/3975996 Fax :+ 381/11/3474 993 calypsorm@gmail.com

Zivojina Lazica Solunca 6 – 36000 Kraljevo Phone:+ 381/36/399-140 radijator@tron-inter.net

MONDI SERBIA d.o.o.

IMPORTERS OF BELGIAN PRODUCTS

DARISON d.o.o.

Futoski put 67– 21000 Novi Sad Phone :+ 381/21/489-16-00 Fax :+ 381/21/489-16-06 info@stylos.rs

Vrdila bb – 36000 Kraljevo Phone :+ 381/36/823-020 Fax :+ 381/36/821-820 mondiserbia@eunet.rs ; goran. krunic@mondiserbia.rs

PERISKAL d.o.o.

Decanska 13/6 – 11000 Beograd Phone : +381/11/32-37-816 Fax :+ 381/11/32-37-816 office@periskal.rs

PLANTA SPONTANEA d.o.o.

Kralja Petra Prvog. bb – 19220 Donji Milanovac Phone : +381/30/590-247 Fax : +381/30/590-069 plantaspont@nadlanu.com

POLYKEM SR d.o.o.

AREX MARZIPAN d.o.o.

Njegoseva 77A – 11000 Beograd Phone: +381/11/344-9591 +381/11/344-9590 Fax: +381/11/344-9587 office@arex.rs

ATLAS COPCO a.d.

Milutina Milankovica 23 11070 Novi Beograd Tel: +381-11-311 66 20 Fax: +381-11-311 55 78 Attn: Mr Predrag iIlibasic, General Manager Web: www.atlascopco.com

BergHOFF d.o.o.

Neznanog junaka 14 – 11040 Balkanska 29/III – 11000 Beograd Beograd Phone : +381/11/36-70-524 Phone :+ 381/11/3626134 Fax :+ 381/11/36-79-112 rnijemcevic@berghoff-scg.com RESINEX F.A.C. d.o.o.

Masarikova 1, 21000 Novi Sad Phone : +381/214721836 BIRO – MARKETING o.d.

Fax :+ 381/214721836 Trogirski trg br. 5 – 37000 office@resinex-fac.rs Krusevac, Serbie Ul.Prizrenska br.6 – 11000

Carli Caplina 39 (Hala Pionir) – 11000 Beograd Phone :+ 381/11/329-31-81 FAX :+ 381/11/329-31-79 bomaran1@gmail.com

Vlajkoviceva 25/I 11000 Beograd Phone :+ 381/11/337 39 69 Fax :+ 381/63/447-445 dmilosavljevic@darison.rs

FUTURE d.o.o.

Dusana Vujasovica 31/lokal 10 SCG – 192374 Novi Beograd Phone :+ 381/11/217-62-82 Fax :+ 381/11/216-98-61 info@future-duco.com

INPHARM CO. D.o.o.

Business Center ‘Takovo’ – Takovska 45 -11000 Beograd Phone :+ 381/11/3292576 Fax :+ 381/11/276-74-52 bbjelajac@linomedia.com

RADIJATOR INZENJERING d.o.o.

STYLOS d.o.o.

SUPER CANDY d.o.o.

Kantoor : Bul. Avnoj-a 75 11070 Novi Beograd –Servië Winkel : La Chocolate – Terazije 26 – 11000 Beograd - Servië – Tel. 00/381/11/30 67 790 Phone :+ 381/11/21-20-554 Fax :+ 381/11/21-20-554 sandra.ristic@siol.net ; super. candy@sezampro.yu

Cara Dusana 266 – 11080 Zemun Phone :+ 381/11/307-39-00 ULTRAPOLYMERS d.o.o.

Fax :+ 381/11/307-39-73 Bul. Arsenija Carnojevica 66/3 – Milica.rakic@inpharm.rs 11070 Novi Beograd PHONE :+ 381/11/21-22-035 Fax :+ 381/11/311-91-20 POLYDEC d.o.o. nenad.oreskovic@ultrapolymers.

Pere Todorevica 15 – 11030 co.rs Beograd – Serbie Phone :+ 381/11/305.94.23 Fax :+ 381/11/305.94.23 BELGIAN INVESTMENTS office@polydec.rs JOINT VENTURES

PROFEX D d.d.o.

Koste Jovanovica 35 - 11000

Challenging Business Opportunity 2010 / 15

BAD & EMS

29. novembar 30 – 36320 Tutin Phone :+ 381/20/383-944

Fax :+ 381/20/383-944

BALKANDIA Ul. 29 novembra 1A – 11000 Beograd Phone :+ 381/11/83.25.415 Fax :+ 381/11/83.25.415 info@balkandia.com

BALGREEN d.o.o.

Nehruova 210 – 11070 Beograd Phone: + 381/63/7202644 nfo@balgreen.com

Kenzai Group d.o.o.

(Carpetland Exclusive is a part of Kenzai group d.o.o.)

Auto – put za Novi Sad 74 11080 Zemun – Beograd Phone: 011/377-42-53 Fax: 011/377-43-10 Email: info@kenzaigroup.com Web: www.contractworld.rs www.carpetland.rs

GUIDANCE a.d.

Kralja Milana 10 11000 Beograd Phone :+ 381/11/2688-289 Fax:+ 381/11/2687-404 www.guidance.rs

LEVER Inzenjering d.o.o.

Ustanicka 64/XVII 11000 Beograd Phone: + 381/11/3089-354 Fax: + 381/11/3089-779 www.firestonebpe.com www.renolit.com www.soprema.be

METECH d.o.o.

Djura Salaja 17 11300 Smederevo Phone: + 381/26/644-800 Fax: + 381/26/611-244 office@metech-srbija.com

Fact anD FigUres BelgiUm

A Globalised Economy Belgium's political institutions are complex; most political power is organised around the need to represent the main cultural communities

by philomena O’brien

B

elgium’s official name is the Kingdom of Belgium.

It is a founding member of the European Union and hosts the EU's headquarters, as well as those of several other major international organisations such as NATO. Straddling the cultural boundary between Germanic and Latin Europe, Belgium is home to two main linguistic groups, the Dutchspeakers, mostly Flemish, and the French-speakers, mostly Walloons, plus a small group of Germanspeakers. Belgium's two largest regions are the Dutch-speaking region of Flanders in the north and the French-speaking southern region of Wallonia. Belgium's linguistic diversity and related political and cultural conflicts are reflected in the political history and a complex system of government. gOvernmenT Belgium is a constitutional, popular monarchy and a parliamentary

democracy. The federal bicameral parliament is composed of a Senate and a Chamber of Representatives.

The former is made up of 40 directly elected politicians and 21 representatives appointed by the three community parliaments, ten co-opted senators and the children of the king, as senators by right who in practice do not cast their vote. The Chamber's 150 representatives are elected under a proportional voting system from 11 electoral districts.

Economic growth and foreign direct investment dropped in 2008 The King (currently Albert II) is the head of state, though with limited prerogatives. He appoints ministers, including a Prime Minister, that have the confidence of the Chamber of Representatives to form the federal government. The numbers of Dutch- and French-speaking ministers are equal as prescribed by the constitution. The judicial system is based on civil law and originates from the Napoleonic Code.

Belgium's political institutions 16 / Challenging Business Opportunity 2010

are complex; most political power is organised around the need to represent the main cultural communities. Since around 1970, the significant national Belgian political parties have split into distinct components that mainly represent the political and linguistic interests of these communities. The major parties in each community, though close to the political centre, belong to three main groups: the right-wing Liberals, the socially conservative Christian Democrats and the socialists forming the left wing. Further notable parties came into being well after the middle of last century, mainly around linguistic, nationalist, or environmental themes and recently smaller ones of some specific liberal nature.

Belgium is one of the few countries that has compulsory voting and thus holds one of the highest rates of voter turnout in the world. ecOnOmY The modern, private enterprise economy of Belgium has capitalised on its central geographic location,

highly developed transport network, and diversified industrial and commercial base. The first country to undergo an industrial revolution on the continent of Europe in the early 19th century, Belgium developed an excellent transportation infrastructure of ports, canals, railways, and highways to integrate its industry with that of its neighbours.

Industry is concentrated mainly in the populous Flanders in the north, around Brussels and in the two biggest Walloon cities, Liège and Charleroi, along the ‘sillon industriel’. Belgium imports raw materials and semi-finished goods that are further processed and re-exported. Except for its coal, which is no longer economical to exploit, Belgium has virtually no natural resources. Nonetheless, most traditional industrial sectors are represented in the economy, including steel, textiles, refining, chemicals, food processing, pharmaceuticals, automobiles, electronics, and machinery fabrication. Despite the heavy industrial component, services account for 74.9% of GDP, while agriculture accounts for only 1% of GDP. With exports equivalent to over two-thirds of GNP, Belgium depends heavily on world trade. Belgium's trade advantages are derived from its central geographic location and a highly skilled, multilingual, and productive work force. One of the founding members of the European Community, Belgium strongly supports deepening the powers of the present-day European Union to integrate European economies further.

About three-quarters of its trade is

with other EU countries.

Belgium's public debt is about 99% of GDP. The government succeeded in balancing its budget during the 2000-2008 period, and income distribution is relatively equal.

Economic growth and foreign direct investment dropped in 2008.

On May 1, 1998, Belgium became a first-tier member of the European Monetary Union and switched from the Belgian franc to the euro as its currency after January 1, 2002.

Belgian per capita GDP ranks among the world's

Belgian per capita GDP ranks among the world's highest. In 2008, the per capita income (PPP) was $37,500. The federal government has managed to present balanced budgets in recent years, but public debt remains high, at 99% of 2009 GDP. GDP growth in 2009 was negative at -1.5% highest. In 2008, the per capita income (PPP) was $37,500. The federal government has managed to present balanced budgets in recent years, but public debt remains high, at 99% of 2009 GDP. GDP growth in 2009 was negative at -1.5%. regiOnal diFFerenceS The economy of Belgium is varied and cannot be understood without taking the regional differences into account. Indeed, Flemish and

Facts & FigUres Official name: Kingdom of Belgium Capital: Brussels Official language(s): Dutch, French, German Government: Federal parliamentary democracy and Constitutional monarchy King: Albert II Prime Minister: Yves Leterme Independence declared from the

Netherlands: 4 October 1830 Independence recognised: 19 April 1839 EU accession: 25 March 1957 Total area: 30,528 km2 (11,787 sq mi) Population 01 January 2010 estimate: 10,827,519 2001 census: 10,296,350 Density: 354.7/km2 (918.6/sq mi)

GDP (PPP) 2009 estimate Total: $383.057 billion Per capita: $35,534 GDP (nominal) 2009 estimate Total: $472.103 billion Per capita: $43,794 Currency: Euro (€) Time zone: CET (UTC+1). In summer (DST) CEST (UTC+2)

Challenging Business Opportunity 2010 / 17

Walloon economies differ in many respects and cities like Brussels, Antwerp, Liège, Bruges, Charleroi or Ghent also exhibit significant differences. In general, productivity in Flanders is roughly 20% higher (per inhabitant) than in Wallonia. Brussels' GDP per capita is much higher than either region, although this is in many ways artificial, as many of those that work in the Brussels-Capital Region live in Flanders or Wallonia. Their output is counted in Brussels and not where they live, artificially raising the per capita GDP of Brussels and slightly lowering that of Flanders and Wallonia.

Unemployment has remained consistently more than twice as high in Wallonia than in Flanders, and even more in Brussels, during most of the last 20 years (2009, Flanders: 5.0% ; Wallonia: 11.2% and Brussels: 15.9%) Trade About 80% of Belgium's trade is with fellow EU member states.

Given this high percentage, it seeks to diversify and expand trade opportunities with non-EU countries. The Belgian authorities are, as a rule, anti-protectionist and try to maintain a hospitable and open trade and investment climate. The European Commission negotiates on trade issues for all member states, which, in turn lessens bilateral trade disputes with Belgium.

The Belgian Government encourages new foreign investment as a means to promote employment.

With regional devolution, Flanders, Brussels, and Wallonia are now courting potential foreign investors and offer a host of incentives and benefits. Foreign companies in Belgium account for approximately 11% of the total work force, with the U.S. share at about 5%.

Attracted by the EU 1992 single-market program, many foreign firms and lawyers have settled in Brussels since 1989..

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toUrism BelgiUm

Chocolate Heaven

Brussels is one of the most cosmopolitan cities of Europe, with liveliness and an appeal that is closely linked to its role at the crossroads of Europe

by irena Koković

B

elgians are strict when it comes to following recipes.

Nobody else in the world can produce chocolate pralines that are quite as delicious as Belgian private confectioneries. The quality of Belgian chocolates and the famous Belgian pralines is world renowned.

On a journey to the Benelux area, one should not miss the opportu-

Belgium has more holidays in its calendar than any other country in Europe. Every year in April, ArtBrussels opens its doors and welcomes more than 30,000 art professionals, art collectors and art lovers from all over the world 18 / Challenging Business Opportunity 2010

nity of experiencing the local specialities and Belgium offers one of the most unforgettable tasting experiences of all. If you happen to be there in September, make sure you visit the Belgian town of Durbuy to sample the regional food offerings of beer, bread and cheeses during a weekend-long sampling trail.

Brussels is one of the most cosmopolitan cities of Europe, with liveliness and an appeal that is closely linked to its role at the crossroads of Europe. The heart of Brussels and the best place to start getting to know this city is the Grand Place, famous for its annual Floral Carpet event which gathers thousands of tourists every August. This historic square, lined with exuberantly ornate guild houses is focused on the Gothic heights of the Hotel de Ville, which is widely held to be one of Europe’s finest hotels. The Grand Place is the focal point of the city’s social life. The residents of Brussels gather here for their most important ceremonies and festivals, for the traditional bird market on Sunday mornings, and cosy gatherings on the terraces of the central bars and cafes for the simple reason of enjoying a cup of coffee or a glass of famous Belgian beer.

Entertainment events in Brussels are never-ending, and in keeping with the city’s cosmopolitan outlook, are widely varied. They range from the annual Queen Elizabeth

Music Competition which draws aspiring classical musicians from all over the world to the first class opera and ballet offered by the Theatre Royal de la Monnaie. In the Palais des Beaux Arts, there are symphony and chamber music concerts year-round. There are also cinemas with American and European movies in their original form, and nightclubs and discos to satisfy the

most energetic and outgoing person.

Don’t forget the folklore and pageantry which are integral to gaining an appreciation of Belgium, with the Ommegang Festival, the first Thursday in July or the Parade of the Giants in May. All Belgian food is of course delicious and goes well with the amazing Belgian beers and great wines. Belgium has more holidays in its calendar than any other country in Europe. Every year in April, ArtBrussels opens its doors and welcomes more than 30,000 art professionals, art collectors and art

famous abbeys, hams cured in the Ardennes mountains, flowers and potted plants, chickens, rabbits and fresh caught fish, shrimp and mussels from the North Sea. The ‘iron symbol’ of the once glorious steel making industry of Benelux is known today as one of the most distinct landmarks in Europe. The Atomium is in fact one of the most recognised landmarks of the European capitals along with London’s Big Ben, the Mermaid statue of Copenhagen and the Eifel Tower of Paris.

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The heart of Brussels and the best place to start getting to know this city is the Grand Place, famous for its annual Floral Carpet event which gathers thousands of tourists every August. This historic square, lined with exuberantly ornate guild houses is focused on the Gothic heights of the Hotel de Ville, which is widely held to be one of Europe’s finest hotels lovers from all over the world.

Brussels is a city of many markets: the bird market, the flower market, the antique and flea market, and even the horse market. Farmers and vendors bring fresh fruit and vegetables from many corners of the world, cheeses made in farms and Belgium’s

ASSEMA

Tailor - made solutions for the sheet metal industry Address: Miloja Pavlovica 9/9b 34000 Kragujevac Serbia Tel: +381 34 338006 +381 34 6170001 Fax: +381 34 301132 office@assema-machines.com www.assema-machines.com

HistorY anD cUltUre BelgiUm

Multicultural and Multilingual Belgium is one of the newer countries of Western Europe, having gained its independence less than 200 years ago

by philomena O’brien

B

elgium is not a homogeneous country with one national identity, and as such it is difficult to give a general cultural overview that applies to all Belgians. The three predominant cultures are the Flemish people from Flanders,

Belgium is essentially a country of medium-sized and small cities, many with long histories 20 / Challenging Business Opportunity 2010

Brussels and the French-speakers from Brussels and Wallonia.

Most Belgians tend to view their culture as an integral part of European culture or Western culture; nevertheless both main communities tend to make their thousands of individual and collective cultural choices mainly from within their own community, and when going beyond, the Flemish draw intensively from both English-speaking culture and the Netherlands, whereas French-speakers focus on cultur-

Representation, engineering and the sale of products from a range of renowned manufacturers of sports equipment and constructions

"Schelde Sports" - Belgium - "Schelde Sports" has a leading position in the design, production and sales of sports equipment for ball sports, athletics, gymnastics, including specialist equipment for outfitting sports venues and stadiums. In 115 years of its existence, the company has created a worldwide reputation for supplying innovative quality products for educational, club and top sports use. www.scheldeinternational.be "TimeTronics" - Belgium - "TimeTronics" manufactures sophisticated photo-finish and timing instruments linked to a personal computer. The notorious "MacFinish" photo-finish and timing systems can be used with both PC and Apple Macintosh workstations. An extended variety of setups opens up accessibility for each and every sporting organization or club. Professional solutions for the most accurate timing are possible for races or training purposes, for the following sports: Athletics; Cycling - Road, Track, Timetrial, BMX; Rowing; Canoe Kayak; Horse Races, Equestrian Jumping, Greyhound Races, Inline Skating; Cross Country Ski; www.timetronics.be "Edel Grass" - Holland - Artificial grass for football, tennis, golf, hockey and landscaping. "Edel Grass" is one of 5 FPP FIFA Preferred Producers! The first FIFA ** Certificate was awarded to the "Edel Grass" in 2003. Edel Grass "Future", the true and the first class alternative to natural grass. "Edel Grass" hockey systems are FIH Global certificated. www.edelgrass.com

al life in Paris and elsewhere in the French-speaking world. hiSTOrY Belgium is one of the newer countries of Western Europe, having gained its independence less than 200 years ago. For the previous two millennia it was a playground and often also a battleground for the great powers of Europe and virtually every one of them held sway over it at one time or another. After Leopold I became king in 1831, Belgium started functioning as a constitutional monarchy and parliamentary democracy.

Between independence and World War II, the democratic system evolved from an oligarchy characterised by two main parties to a universal suffrage system that has included a third party and a strong role for the trade unions. Post WWII, Belgium made tremendous economic progress and the country has flourished in many ways.

Čarli Čaplina 39, Pionir Hall, Belgrade Tel: (011) 3293-181 Fax: (011) 3293-179 E-mail: bomaran1@gmail.com www.bomaran.com

archiTecTure Belgium is essentially a country of medium-sized and small cities, many with long histories. In the central parts of these cities, rows of terraced houses are built among a network of ancient churches and marketplaces. Opulent buildings often feature a belfry in the central marketplace, or, as in Brussels, a city hall and corporation houses. In the nineteenth century, many working-class cities were

The golden age lasted from the fourteenth century to the seventeenth century and was embodied mostly in painting Challenging Business Opportunity 2010 / 21

built in mining and industrial areas. Famous Art Nouveau architects Victor Horta and Henry van de Velde have influenced the early 20th century architecture in Belgium and abroad.

Fine arTS The golden age lasted from the fourteenth century to the seventeenth century and was embodied mostly in painting. The Flemish Primitives school of painting (14th and 15th centuries) made the region the main artistic centre of Europe outside of Italy. This is also the nation that produced the Surrealist painters Rene Magritte and Paul Delvaux. The Belgians were at the forefront of the avant-garde movement in the late 19th century, hosting exhibitions by Cezanne even before he was fashionable in his own country. muSic

jazz musician. The Blindman Kwartet combines jazz, pop, and classical music. liTeraTure

In the twentieth century, the most famous Belgian musician was the singer Jacques Brel tieth century, the most famous Belgian musician was the singer Jacques Brel. Several living classical composers are active. The harmonica player Toots Thielemans is the most famous

The Franco-Flemish style dominated European music in the fifteenth and sixteenth centuries, with composers such as Josquin des Prez and Orlando di Lasso. In the twen-

COMPANY REGISTER MINEL-SCHREDER d.o.o.

Tosin bunar 51 – 11080 Zemun Phone:+ 381/11/2614-477 Fax:+ 381/11/2612-166 office@minel-schreder.rs

PURATOS d.o.o.

Ljutice Bogdana 1a/V – 11000 Beograd Phone:+ 381/11/3672-398 Fax:+ 381/11/3672-398 office@puratos.co.rs

TELDICO d.o.o.

Prvomajska 8/I – 11080 ZemunBeograd Phone:+ 381/11/21-92-916 Fax:+ 381/11/21-02-983 teldico@verat.net

TAVROS d.o.o.

Jurija Gagarina 81 – 11070 Novi Beograd Phone :+ 381/11/318.06.40 Fax :+ 381/11/318.82.79 tavros@eunet.rs www.tavros.com

URADI SAM d.o.o.

Omladinskih Brigada 19 – 11070 Novi Beograd Phone:+ 381/11/216-65-33 Fax:+ 381/11/227-68-05

Sometimes it is denied that there is a Belgian ‘literature’, with only Flemish and Walloon or French and Dutch writers who happen to be Belgian citizens. However, authors such as Charles de Coster (1827– 1879) and Emile Verhaeren (1855–1916), wrote in French on Flemish themes. Another important Francophone writer from Flanders was the symbolist Maurice Maeterlinck. The main nineteenth-century Flemish writers were Hendrik Conscience and Guido Gezelle. Important themes are the hardness of life, the questioning of the nature of reality, and the quest for original ways to get through life.

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Belgian companies

niko@uradi-sam.com ; info@ uradi-sam.rs

VIRMAX d.o.o.-ARCHPLAN d.o.o.

Bulevar Nikole Tesle 20/13 – 11080 Zemun Phone :+ 381/32/222-601 Fax :+ 381/32/222-601 Vladimir.brkic@virmax.rs office@virmax.rs

YUBE d.o.o.

Brace Micica 66 – 31210 Pozega Phone:+ 381/31/823-043 Fax :+ 381/31/812-825 j.stojanovic@dirafrost.be www.dirafrost.be

(ENERGO) ZELENA tamara.drecun@gmail.com REPRESENTATIVES OF BELGIAN COMPANIES

AGRICON Co. Gagarinova 22 – 21 000 Novi Sad Phone :+ 381/21/443-762 Fax :+ 381/21/442-070 agricon@agriconco.com www.agriconco.com

AGRO-MIL 37214 Pojate Phone :+ 381/37/805-154 +381/37/805-000 +381/37/805-080 Fax :+ 381/37/805-154 info@agro-mil.co.rs komercijala@agro-mil.co.rs

INMACO d.o.o.

Nehruva 210 – 11070 Novi Beograd Phone :+ 381/11/215-04-98 Fax :+ 381/11/215-04-98 inmaco@yubc.net www.balkansgreenhouses.com

INOSTONE d.o.o.

Vojvode Bogdana 38- 11120 Beograd Phone :+ 381/11/2424-436 Fax :+ 381/11/308-72-11 inosyub@eunet.rs

IZOLACIJA HOLDING a.d.

Miška Jovanovića 9 – 11000 Beograd Phone /Fax : + 381/11/3986641 biljana.simatovic@izolacija.rs

KORUS CONSULTING Mestroviceva 38 – 11010 Beograd

Phone :+ 381/11/3979109 Fax :+ 381/11/3979109 gkoric@eunet.rs

REYNAERS ALUMINIUM Milutina Milankovica 27 – 11070 Novi Beograd Phone:+ 381/11/313 2177 Fax :+ 381/11/313 2193 Sasa.sretenovic@reynaers.com Aleksandra.parmac@reynaers. com

ROBELCO d.o.o.

VIZZION EUROPE SA Diplomatska kolonija 22 – 11000 Beograd Phone:+ 381/11/3676.502 Fax :+381/11/3676.503 www.vizzion-europe.com

WINDVISION Karadjordjeva 44 11000 Beograd Phone:+ 381/11/3282085 Fax :+ 381/11/328317 Danilo.drndarski@windvision.com

Nusiceva 20/15 – 11000 Beograd X POINT Phone:+ 32/495222291 Internacionalnih brigada 54 – stephane@stefanovic.be 11000 Beograd Phone :+ 381/11/30 86 897 S.A. TRANSURB Fax : +381/11/30 86 896 TECHNIRAIL N.V. office@xpoint.rs Ul. Branka Sotre 16 – 11147 marija.drobnjak@xpoint.rs Beograd misa.milanovic@xpoint.rs Phone :+ 381/11/3555712 Fax :+ 381/11/3555712 Serbian firms with close relaSlob.mar@yubc.net tions with Belgian companies / purchasing products from TRIVAX d.o.o.

Belgian firms Trice Kaclerovica 24a – 11000 Beograd AIDA-TRADE Phone :+ 381/11/246-3149 Bulevar kralja Aleksandra 43, Katarina.trikic@trivax.com 11000 Beograd Tel: +381 11 3247 148 maderabg@eunet.rs

22 / Challenging Business Opportunity 2010

ALFASPED Bratstva i jedinstva 32 – 24420 Kanjiza Phone :+ 381/24/873 135 Fax :+ 381/24/873 164 office@alfasped.com

MEGA d.o.o.

Dimitrija Tucovica 101 – 3100 Uzice Phone:+ 381/11/3691131 Fax:+ 381/11/3691722 office@megaline.rs

PRVI PARTIZAN M. Obrenovica 2 – 31000 Uzice Phone :+ 381/31/563478 www.prvipartizan.com

SUNCE MARINKOVIC d.o.o.

Lepenicki bulevar 39 – 34000 Kragujevac Phone:+ 381/34/301-485 Fax:+ 381/34/384-277 office@suncekg.rs www.suncemarinkovic.com

TERMOVENT KOMERC Suboticka 23 – 11000 Beograd Phone:+ 381/63 250202 Fax:+ 381/11/2413 544 info@termovent-komerc.com

Challenging Business Oportunity 2010 / 23

intervieW

Slobodan Ðinović, CEO, Orion Telecom

Market Liberalisation Required

So far, Orion Telekom has invested 24 million euro in the telecommunications sector and plans to invest additional 25 million euro in the next five years, so that total investment in the Serbian telecommunication market is up to 50 million euro

ent ADSL provider in Serbia. The company has been focusing on acquisitions, integration and the development of alternative telecommunication resources with the aim of providing high quality fixedline telephony and Internet services to both private and business users. This is just one of the reasons for interviewing the CEO of Orion Telekom, Slobodan Đinović. ● How are you competing with such tough competition in Serbia, primarily Telekom Serbia?

- The fact that we are the second fixed-line telephony operator in Serbia carries a great deal of responsibility and obligation. Orion Telekom is becoming a symbol of the de-monopolisation of the telecommunications market since we are the first company ever in Serbia to offer citizens the freedom to choose which telecommunications operator by ana Stojanović Orion Telekom suits them the best. It’s been only is doing four months since the company has he second fixed-line te- everything been established and we have allephony provider in in its power ready accomplished notable results.

Serbia, Orion Telekom, The licence that we have been given was established in 2010 to operate binds us to building our own infrafollowing a merger between Media in line with structure. The expectations are great Works, the biggest wireless provid- good business and the public are carefully observer in Serbia; Neobee.net, the biggest practices ing every move we make. Also, we Internet provider in Vojvodina; and and loyal are often compared to the national SezamPro, the biggest independcompetition telecommuniPriorities cations comThe licence, which was granted to us by RATEL, stipulates that during the first year of our pany which operations, we should cover 20% of the rural areas in Southern Serbia with our services. is not easy.

This is the top priority. We are also going to try to cover most of Serbia in 2011, i.e. over Hence our 80% of its territory. Once we achieve that goal, we are going to embark on regional exbusiness polipansion and conquering new regional markets. cy is based on

T

24 / Challenging Business Opportunity 2010

several basic proposals - top quality services, affordable prices, simplicity and speedy implementation. ● Do you think that a monopoly still exists?

- We have already touched on that issue. We would like to reiterate that we are the second fixed-line telephony operator in the history of Serbia which shows that, legally speaking, the monopoly has been abolished.

What remains is the monopoly-like market behaviour. However, things are moving forward.

One of our main aims is to continue supporting the development of the telecommunications market, its competitiveness and liberalisation, as well as establishing a connection between the end user and the public network. Market liberalisation is a new and painful process, but is definitely needed and welcomed. Orion Telekom favours thorough and constant market liberalisation, and, in that respect, the company has invested 24 million euro in the telecommunications sector and we plan to invest additional 25 million euro in the next five years, so that total investment in the Serbian telecommunication market is up to 50 million euro and, in this way, give our contribution to the development of the Serbian economy. Being granted a licence via a tender doesn’t mean that everything has been resolved and that the monopoly has vanished overnight. What it means that we have become an open and healthy telecommunications mar-

ket. The practice has taught us that this is a lasting process, that it takes time to change habits and convictions and to carry out changes both in the market and in society. I would like to remind you that one of the reasons why we were late with the launching the sales of our fixed-line telephony services several months ago was the interconnection I was talking about, the interlinking of telecommunications operators. But this problem has been resolved. The price of a telephone call between our subscriber and subscribers of other operators, whether over a mobile or fixed-line, has been the sticking point. In the end, it was RATEL that made the final decision and we became operational. Still, I would have to outline that none of the sides are too happy with the conditions and recommended prices. Hence, Orion Telekom is doing everything in its power to operate in line with good business practices and loyal competition, while expecting other ‘players’ in the telecommunications ‘game’ to do the same. ● Are you satisfied with the telecommunications legislation?

- The issue that is stopping us from expanding our network more rapidly is a mismatch between the legislation and bylaws enacted by local authorities. There are great procedural differences when it comes to acquiring documentation for the construction of base stations in Belgrade, Southern Serbia or Vojvodina. We have been successfully tackling the problems head on, but we need a lot of time to acquire the documents for each base station.

If the Law on Telecommunications was harmonised with the Law on Spatial Planning and the Law on Environmental Protection, then we would have a clear situation and the time that we need to build our network would be significantly shortened. Specifically, our biggest problem is lack of understanding and the fact that installing an antenna on

DoUBle or triPle services?

The answer to this question is surprisingly simple - broadband Internet wins. Communicating via the Internet is the current trend, hence we are focusing on improving the quality and quantity of this service. Once the user gets to see what fast Internet like, when he feels its benefits and possibilities, all he needs to do is to select a service that best suits his needs. Also, service packages will become very popular because of their affordable prices. I would like to reiterate our slogan, which pertains to this matter, and that is - ‘You Have a Choice’ - whether you want to go for double, triple, quadruple etc.

One of our main aims is to continue supporting the development of the market, its competitiveness and liberalisation, as well as establishing a connection between the end user and the public network

the base station is considered tantamount to constructing a whole new facility. If this problem is not resolved soon, we are going to regress to the situation as it was before market liberalisation. We have noticed that local authorities in smaller towns are much more efficient when it comes to issuing the required permits. Hence, Orion Telekom is ready to support an initiative for this and similar issues to be resolved at an institutional level and, by doing so, make the telecommunications sector even more appealing to foreign investors. ● Do you offer special services tailored to foreigners in Belgrade?

- If a foreigner needs communication mobility, our service called ’Internet To Go’ is the real solution because of its speed and affordable prices. These are flat packages, but you can choose to pay via a monthly subscription or be charged for using the Internet per day. Soon, we are going to start providing a service called Measured Internet Traffic.

Among other things, Orion Telekom offers a universal card, for both phone and Internet services which can be purchased at any newsstand. User can communicate with foreign countries at prices that are substantially reduced. They can also surf the Internet, and safely receive and send data without any delays.

On the other hand, the inquiries that we have been receiving from many foreign companies are very diverse - from fixed-line infrastructure optic solutions, creating virtual private networks, to interlinking their branches across Serbia into one system with combined access to the Internet and many oth-

Challenging Business Opportunity 2010 / 25

ers. Our advantage is that, through combined technology, optical cables and wireless infrastructure, we can offer complete solutions. Our users say that Orion Telekom’s added value is consultancy services, having a full understanding of their requests and being ready to adapt our solutions to their needs and, by doing so, put in place an optimum infrastructure which will generate revenue and facilitate problem-free business operations in record time. For example, we are currently implementing a project where we are linking the judicial authorities across Serbia into one network. The project’s aim is to provide a fast data transfer rate, the latest data protection, competitive prices and deadlines, with a special emphasis on projecting their needs several years ahead. ● Does Orion Telekom offer welldeveloped customer support and how satisfied are your clients?

- We have said that by offering fixedline telephony services, we have rounded off our product range, with the exception of mobile telephony.

We are still recording a fast growth in numbers of ADSL users and we are the biggest independent ADSL Internet provider in Serbia with over 50,000 users. When it comes to fixed-line telephony, we are proud to say that, in Belgrade alone, we have over 6,000 subscribers and that this number has been constantly on the rise. A service that we are especially proud of is ’Internet To Go’, which has become a real revelation among Internet users. Our staff is constantly in touch with our users. They are trained to efficiently communicate, advise and offer assistance and we are available to our users 24/7.

■

intervieW

Jelena Marjanović, Assistant Minister, Ministry of the Economy and Regional Development’s Sector for Bilateral Economic Cooperation

Significant Trade Partner There is a great potential for trade increase in areas like shipbuilding and agriculture. We expect the trade exchange to grow in 2010 and especially in 2011

by ana Stojanović

I

n 2009, the overall value of Serbian exports to The Netherlands amounted to $158.26 million which is a 13% decline compared to 2008. Serbia imported a total of $235.4 million worth of goods from The Netherlands which is 32.76% less in relation to 2008. We talked with Jelena Marjanović, Assistant Minister at the Ministry of the Economy and Regional Development’s Sector for Bilateral Economic Cooperation in regards to economic cooperation between Serbia and The Netherlands.

with The Netherlands in the following period too? How can we overcome this deficit?

- Our trade deficit is a constant in trading with the Benelux countries. The deficit is a result of disparities in our overall economic development, our economy’s structure and a few other things. We aim to reduce this deficit, which could be done by fostering development and diversification of industrial production and services, and in this way, Serbia’s exports.

● According to the data compiled by the National Bank of Serbia, in the period from 2000 to 2008, The Netherlands made ● Do you expect the trade exchange between the two countries a total of $1,063.80 billion worth of direct investments. Can we expect the country to make new investments in Serbia soon? to pick up this year?

- Out of all the Benelux countries, The Netherlands has always been - The investments made by The Netherlands are relatively large, but the investment statistics relate our biggest trade partner. There is a to the country of payment. Quite a great potential for trade increase in In the second half of 2011, we plan to few multinational companies that areas like shipbuilding and agriculture. We expect the trade exchange invest even more effort in promoting our have invested in Serbia are statistically considered to be Dutch due to to grow in 2010 and especially in 2011. I would like to mention the economy, tourism and health tourism to their domicile origin. If we are talking about original Dutch companies, praise received from Dutch busithe Benelux countries I am pleased to say that, on 17th nesses that operate in Serbia that September, 2010, the Republic of primarily pertain to changes in the country’s tax policy and procedures relating to establishing a com- Serbia and the renowned Dutch bus manufacturer, VDL signed the pany. Regular meetings of the Serbian-Dutch Business Council in Memorandum of Understanding with the aim of forming a joint the last few years have certainly contributed to better cooperation venture that will produce the latest generation of buses for the and the Council is especially engaged in developing collaboration European market. VDL will invest 10 million euro in cash and assets, and will hold an 80% stake in the company, while Serbia will in the water supply and infrastructure sectors. invest 2.5 million euro and will own a 20% stake. We also expect ● Is Serbia going to continue having a trade deficit in trading substantial investments to be made in shipbuilding in Serbia, where 26 / Challenging Business Opportunity 2010

three shipyards are already owned by Dutch companies and are perfectly capable of not only building ships, but equipping them too. This sector has been hit by the crisis very hard and it is very difficult to obtain commercial loans for building ships. In that respect, during his recent official visit to The Netherlands, Deputy PM and Economy and Regional Development Minister, Mlađan Dinkić announced a possibility of the Serbian government devising a new state programme of financial assistance for the shipbuilding industry in Serbia, i.e. its export activities. We expect progress to be made in this industry, so, aside from building hulls, the shipbuilding companies will be able to install ship equipment produced by domestic and foreign producers. To that end, we began establishing a cluster of shipbuilding, shipping and equipment manufacturers in collaboration with the Dutch partners.

We expect progress to be made in this industry, so aside from building hulls, the shipbuilding companies will be able to install ship equipment produced by domestic and foreign producers

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â—? Have the state authorities taken certain steps in attracting more investments from the Benelux countries?

- Deputy Prime Minister and Economy Minister, MlaÄ‘an Dinkić’s official visit to The Netherlands, at the beginning of July this year, was extremely important and we can say that his visit was a U-turn in the economic relations between the two countries. Also, an office of the economic advisor for the Benelux countries was opened in Brussels in May 2010. So, as you can see, we have already accomplished concrete results in terms of investments and the creation of new jobs. In the second half of 2011, we plan to invest even more effort in promoting our economy, tourism and health tourism to the Benelux countries, as well as to organise the visit of a Serbian political and economic delegation which is going to present tangible propositions and projects aimed at advancing the existing cooperation. â–

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economic relations

Cooperation Between the Republic of Serbia and Holland

Foreign Trade Deficit In the first six months of this year the deficit was 34.70 million US, however due to the growth of exports to the Netherlands, compared to the same period last year, the deficit decreased by 25.25 percent

by ana Stojanović

T

he Kingdom of the Netherlands is one of the moderately important foreign trade partners to the Republic of Serbia, according to the Serbian Chamber of Commerce. Among the 160 countries to which Serbia sold its products in 2009, the Kingdom

In the 2000 to 2008 period, the Netherlands was ranked fifth (after Austria, Greece, Norway and Germany) by the level of total net income of direct investments to Serbia. In the January 2009November 2009 period, the Netherlands was ranked third by the level of total net income of direct foreign investments (after the Russian Federation and Austria), with 122.5 million EUR (NBS recorded investments in EUR in 2009) 28 / Challenging Business Opportunity 2010

of the Netherlands was ranked 16th by the value of exports, and from the 199 countries from which Serbia imported products in 2009, the Kingdom of the Netherlands was ranked 19th by the value of finalised imports, according to the report of the Serbian Chamber of Commerce (PKS).

The value of Serbian exports to the Netherlands increased 2.77 times from 2004 to 2010, while, simultaneously, imports increased 1.02 times. The total value of Serbian exports to the Netherlands in 2009 was 158.26 million USD and it was 13% less compared to 2008. Of the total exports of Serbia in 2009, exports to the Netherlands made up 1.9%. Serbia imported 235.4 million

USD worth of commodities from the Netherlands, which was 32.76% less than in 2008. Of the total value of Serbian imports in 2009, 1.51% was from the Netherlands.

In the first six months of 2010, 80.90 million USD worth of exports of commodities to the Netherlands was achieved, which was 9.95% more than in the same period last year (the value of exports in the first six months in 2009 was 79.58 million USD). In the same period, the imports of Serbia from the Netherlands were 115.61 million USD, which was 3.7% less than in the same period last year (the value of imports in the first trimester in 2009 was 120.0 million USD).

In commodities exchange with the Netherlands, Serbia recorded a deficit, which was the highest in 2004 (173.429 million USD - which was almost 173.44% higher than the deficit recorded in 2003, when it was 63.425 million USD). In 2009, the Serbian deficit in commodities exchange with the Netherlands was 77.141 million USD, which was 54.13% less than the deficit recorded last year (in 2008, the deficit was 168.187 million USD, which was one of the largest figures during the 2004 to 2008 period). The tendency of a negative balance in commodities exchange continued in 2010. During the first six months this year, the deficit reached 34.70 million USD;

largest eXPorters anD imPorters The largest exporters in 2009 were: TEAM, Sremska Mitrovica; US STEEL SERBIA, Smederevo; RHINE-DANUBE, Kladovo; Impol Seval Aluminum Rolling Mill, Sevojno; MATEKS, Subotica; AGROLOB, Novi Sad; DELTA AGRAR, Belgrade; PRVI MAJ, Pirot; AGROTREJDING, Novi Sad; INTERPROM, Belgrade.

The largest importers in 2009 were: LASTA, Belgrade; RHINE-DANUBE, Kladovo; TEAM, Sremska Mitrovica; MARBO PRODUKT, Belgrade; BEGEJ Shipyard, Zrenjanin; GORENJE HOME APPLIANCES, Valjevo; FARMANOVA Wholesale, Belgrade; MATIJEVIC meat industry for the production and transport of meat, Novi Sad; CT COMPUTERS, Belgrade; Source: Centre for Informatics and Electronic Business PKS. VAPEKS, Cacak. however, due to the growth of exports to the Netherlands in this period, it was 25.25% lower than in the same period last year. Coverage of imports in 2009 reached 67.2% and it went up compared to 2008, when it was 52%. Due to the above mentioned growth in exports, the indica-

The value of Serbian exports to the Netherlands increased 2.77 times from 2004 to 2010, while, simultaneously, imports increased 1.02 times. The total value of Serbian exports to the Netherlands in 2009 was 158.26 million USD and it was 13% less compared to 2008

DUtcH Direct investments in Serbia between 2000 and 2008

Year

Net investments in cash, in 000 USD

2000

0

2001

0,1

2002

2,3

2003

598,9

2004

102,0

2005

92,1

2006

-214,1

2007

-27,9

2008

510,4

Total

453,755

Source: National Bank of Serbia

Note: NBS receives the figures shown here from business banks, which means that the data refers to payment countries, not investment countries.

tor of import coverage with exports improved this year and it reached 70%, while it had been 61.3% in the same period in 2009.

The primary export products to the Netherlands in 2009 were: other transport vehicles and equipment from the SMTK department under number 79 (participation in exports of 37.74%); iron and steel (11.20%); vegetables and fruit (8.69%); grains and grain products (7.05%); and clothes (6.66%). Serbia imported the following products from the Netherlands in 2009: road vehicles (participation of 10.21% in imports from the Netherlands); general-use industrial machinery (6.34%); medical and pharmaceutical products (6.34%); primary form plastic material (5.55%); animal and plant raw materials (5.45%). In the first six months this year, these products

Challenging Business Opportunity 2010 / 29

had the most significant participation in exports to this market: other transport vehicles and equipment (36.38%); grains and grain products (11.52%); vegetables and fruit (7.20%); precious metals (4.91%) and iron and steel (4.86%). These products dominated imports: primary form plastic material (9.96%), road vehicles (8.75%); chemical material and products (6.92%), other transport vehicles and equipment (6.62%), vegetables and fruit (6.07%).

The dominant form of foreign trade exchange with the Netherlands was buy-and-sell, which participated at the level of 46.65% in exports and 85.18% in imports in 2009. In addition to buy-and-sell, post-cultivation businesses were also present in exports (25.31%) as well as cultivation (20.54%), while the most prevalent business in imports, after buyand-sell, were cultivation (9.13%) and post-cultivation (4.11%).

The leading Serbian exporter to the Netherlands in 2009 was the Zrenjanin-based company Shipyard Begej AD for shipbuilding and trade, whose realised value of exports to the Netherlands reached 15.43% of the total Serbian exports to this country. direcT FOreign inveSTmenTS According to the National Bank of Serbia (NBS), total net direct investments in cash from the Netherlands in the period between 2000 and 2008 reached 1063.8 million USD. A net drain of direct investments in cash was registered in

2006 and 2007.

In the 2000 to 2008 period, the Netherlands was ranked fifth (after Austria, Greece, Norway and Germany) by the level of total net income of direct investments to Serbia. In the January 2009-November 2009 period, the Netherlands was ranked third by the level of total net income of direct foreign investments (after the Russian Federation and Austria), with 122.5 million EUR (NBS recorded investments in EUR in 2009).

Some 20 companies with Dutch capital are present in the Serbian market. So far, the most dominant investments are in shipbuilding and consulting. To date, the most significant investment is certainly the purchase of Rodic MB Brewery in Novi Sad by the Dutch Heineken Brewery.

There are numerous initiatives from both the Dutch and Serbian sides to increase the number of such companies, especially in the form of joint investments. There is a noticeable interest of Dutch businessmen in establishing economic cooperation with Serbia in the following areas: the food industry, plastic material and plastic products, production of construction material, chemical in-

According to the National Bank of Serbia (NBS), total net direct investments in cash from the Netherlands in the period between 2000 and 2008 reached 1063.8 million USD

dustry (pharmacy), wood processing industry and furniture production, various business services (consulting), transport (cargo and passengers) and civil engineering.

The Serbian Chamber of Commerce, who within its regular activities in intensifying the level of cooperation of Serbian businessmen with Dutch busiFDI to Serbia 2000-2008 nessmen, gave Rank Country Net SDI in Cash Structure in % its contribution 1 Austria 2,633,585 21.4 to improving co2 Greece 1,687,437 13.7 operation with 3 Norway 1,556,700 12.6 the Netherlands by signing the 4 Germany 1,477,990 12.0 Agreement on 5 Netherlands 1,063,757 8.6 Partnership with 6 Italy 753,942 6.1 the CBI (Agency 7 Slovenia 655,439 5.3 for Promotion of 8

France

503,618

4.1

9

Luxembourg

445,654

3.6

10

Hungary

353,479

2.9

11

Switzerland

305,283

2.5

12

Croatia

296,407

2.4

13

Montenegro

296,134

2.4

14

Great Britain

295,291

2.4

Other countries

10,093

0.1

Source: National Bank of Serbia

Note: NBS receives the figures shown here from business banks, which means that the data refers to payment countries, not investment countries. Thus, these figures must be observed with some reserve. For example, the largest Belgian investment in Serbia, the purchase of Apatin Brewery, was made via the Dutch subsidiary Interbrew and it is actually registered as Dutch investment. In the period between January and July 2010, NBS registered a net income of 2.8 million USD from Belgium.

30 / Challenging Business Opportunity 2010

Imports from Developing Countries to the EU Market, with its headquarters in the Netherlands). The agreement came into effect on June 11th 2008, and in addition to PKS, the Regional Valjevo Chamber of Commerce also signed an Agreement on Cooperation with the CBI. Besides cooperation with the CBI, the Serbian Chamber of Commerce has actively worked with other institutions and organisations in the Netherlands on the improvement of mutual bilateral cooperation. With this goal, a visit of a delegation of businessmen from the transport and logistics sector from the Netherlands was organised with the Dutch Council for the Promotion of Trade, in order to introduce the potential of Serbia in this sector to Dutch businessmen, as well as the realisation of bilateral meetings with Serbian businessmen and visits.

According to the Dutch Ambassador to Serbia, Ronald van Dartel, Dutch investors in Serbia are mostly interested in infrastructure projects, as well as investments in agriculture, IT and shipbuilding sectors. He believes that infrastructure has not been developed well and that there will be an opportunity for business, the PKS report emphasised. The accent here would primarily be on road infrastructure - important roads and railways - as well as waterways. The Ambassador also emphasised projects regarding environment protection, the cleansing of water waste, the usage of alternative sources of energy, and investments in energy efficiency.

The Ambassador also highlighted the significance of the development of small and mediumsized companies, and according to him, these companies are the ‘motor’ of progress since they make up almost 90% of production. The Ambassador announced that one of the largest dyke producers from the Netherlands will start construction work on the Sava River. â–

Fact anD FigUres HollanD

The World's Legal Capital The Netherlands has the 16th largest economy in the world, and ranks 7th in GDP (nominal) per capita

by philomena O’brien

T

he Netherlands is a parliamentary democratic constitutional monarchy and was one of the first parliamentary democracies. Among other affiliations the country is a founding member of the European Union (EU), NATO, OECD and WTO. It is host to five international courts: the Permanent Court of Arbitration, the International Court of Justice, the International Criminal Tribunal for the Former Yugoslavia, the International Criminal Court and the Special Tribunal for Lebanon.

The first four are situated in The Hague as is the EU's criminal intelligence agency Europol and judicial co-operation agency Eurojust. This has led to the city being dubbed ‘the world's legal capital’. ecOnOmY

The Netherlands has a prosperous and open economy in which the government has reduced its role since the 1980s. Industrial activity is predominantly in food-process-

The Netherlands has a prosperous and open economy in which the government has reduced its role since the 1980s

ing (Unilever, Heineken), financial services (ING), chemicals (DSM), petroleum refining (Shell), and electrical machinery (Philips, ASML).

It has the 16th largest economy in the world, and ranks 7th in GDP (nominal) per capita. Between 1998 and 2000 annual economic growth (GDP) averaged nearly 4%, well above the European average. Growth slowed considerably from 2001 to 2005 with the global economic slowdown, but accelerated to 4.1% in the third quarter of 2007. Inflation is 1.3%, and unemployment is at 4.0% of the labour force. By Eurostat standards, unemployment in the Netherlands is at 4.1% (April 2010) – the lowest rate of all European Union member states. Despite ranking only 7th

Facts & FigUres Official name: Kingdom of the Netherlands Capital: Amsterdam Official language: Dutch Recognised regional languages: Low Saxon, Limburgish, Frisian, English, Papiamento Government: Parliamentary democracy under a constitutional monarch Monarch: Queen Beatrix

Prime Minister: Mark Rutte Independence (through the Eighty Years' War from the Spanish Empire) Declared: 26 July 1581 Recognised: 30 January 1648 EU accession: 25 March 1957 Total area: 41,848 km2 (16,158 sq mi) Population: 2010 estimate: 16,620,900 Density 400.3/km2 (1,036.7/sq mi)

GDP (PPP) 2009 estimate Total: $658.228 billion Per capita: $39,938 GDP (nominal) 2009 estimate Total: $794.777 billion Per capita: $48,223 Currency: Euro (€) (Netherlands Antillean guilder - NAƒ) Time zone: CET and AST (UTC+1 and −4) In summer CEST and AST (UTC+2 and −4)

Challenging Business Opportunity 2010 / 31

in GDP per capita, UNICEF ranked the Netherlands 1st in child wellbeing. On the Index of Economic Freedom Netherlands is the 13th most free market capitalist economy out of 157 surveyed countries.

The Netherlands introduced the euro in 1999. It is one of the 16 sovereign states that make up the Eurozone. As a founding member of the euro, the Netherlands replaced (for accounting purposes) its former currency, the ‘Gulden’ (guilder), on 1 January 1999, along with 15 other adopters of the euro.

Other important parts of the economy are international trade (Dutch colonialism started with cooperative private enterprises such as the VOC), banking and transport.

The Netherlands successfully addressed the issue of public finances and stagnating job growth long before its European partners.

The country continues to be one of the leading European nations for attracting foreign direct investment and is one of the five largest investors in the U.S. The economy experienced a slowdown in 2005, but in 2006 recovered to the fastest pace in six years on the back of increased exports and strong investment.

■

toUrism HollanD

Tulip Mania

by irena Koković

A

msterdam as the capital of the Netherlands has a broad spectrum of recreational and cultural sights that range from fascinating old buildings like the Oude Kerk, to the classic ‘coffee houses’ that the city is infamous for. Other famous tourist attractions include its canals, parks and of course the famous Red Light District. If you love flowers you won't believe the colourful displays of tulips and other springtime bulbs in bloom at the

Keukenhof is one of Holland's top attractions and is also known as the ‘Garden of Europe’

magnificent Keukenhof Gardens!

The unforgettable seasonal display is created by more than seven million tulips, daffodils, hyacinths, spring bulbs and gorgeous trees.

Keukenhof is one of Holland's top attractions and is also known as the ‘Garden of Europe’.

In pubs and bars in Holland when ordering a beer you might be offered traditional snacks which most often include Gouda cheese cubes with mustard – a delicious combination which goes extremely well, especially with darker beers.

The term ‘Gouda’ is now a gener-

In pubs and bars in Holland when ordering a beer you might be offered traditional snacks which most often include Gouda cheese cubes with mustard – a delicious combination which goes extremely well, especially with darker beers 32 / Challenging Business Opportunity 2010

ic name, and not restricted to cheese of Dutch origin. The Gouda cheese is made from cow’s milk that is cultured and heated until the curd is separate from the whey. Some of the whey is then drained, and water is added. This is called ‘washing the curd’, and creates a sweeter cheese, as the washing removes some of the lactic acid.

A famous icon of the Netherlands is The Hague. Founded in 1248 AD, it is situated on the North Sea between Amsterdam and Rotterdam and it is home to 450,000 inhabitants. Many more visitors come to The Hague every year to enjoy the numerous events on offer and the beaches of Scheveningen and Kijkduin. Throughout the ages, ‘Het Binnenhof’ at The Hague has been the centre of politics in the Netherlands - the place where the affairs of state have been discussed. Not only are the buildings themselves well worth seeing, but it is here that some of the most important events in Dutch history have taken place. Parliament still meets here, and thus the ‘Binnenhof’ remains the centre of Dutch political life even today.

Rotterdam is one of the few thoroughly modern cities in Holland

and the greatest scientific centre in Europe with the Rotterdam Erasmus University at the forefront of many research areas. Located on the Mass River, it is the world’s second largest port and the largest commercial harbour in Europe. There is an abundance of attractions, festivals and museums and the city has a swinging, young-city culture. Rotterdam derives its name from the little river the Rotte. In the 13th century a fishing village was built near a dam on the river Rotte. The village was granted a municipal charter in 1340 and became a prosperous trading town in the 16th and 17th centuries, with many warehouses and shipyards. At this time Rotterdam was

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■

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HistorY anD cUltUre HollanD

Diverse Urbanity The Netherlands and Dutch people have played an important role for centuries as a culturally liberal and tolerant centre

by philomena O’brien

D

utch culture is diverse, reflecting regional differences as well as foreign influences thanks to the merchant and exploring spirit of the Dutch and the influx of immigrants. hiSTOrY Before the Christian era, the country we now call the Netherlands was inhabited by Germanic and Celtic tribes. Until the early fifth century the area south of the Rhine was part of the Roman Empire, and was later controlled by the Franks and then became part of Charlemagne's empire in the eighth and ninth centuries. The area later passed into the hands of Burgundy and the Austrian Hapsburgs and finally, in the 16th century, came under Spanish rule. When Philip II of Spain suppressed political liberties, a revolt led by William of Orange broke out in 1568. Under the Union of Utrecht (1579), the seven northern provinces became the United Provinces of the Netherlands. War between the United Provinces and Spain continued into the 17th century but in 1648 Spain finally recognised Dutch independence.

The Dutch East India Company was established in 1602, and by the end of the 17th century, Holland was one of

the great sea and colonial powers of Europe.

The nation's independence was not completely established until after the Thirty Years' War (1618– 1648), when the country's rise as a commercial and maritime power began. A liberal constitution was adopted by the Netherlands in 1848. archiTecTure The country is well known for its architecture and urban development.

No fewer than 50,000 buildings are listed monuments and the government protects these monuments and helps pay for their maintenance. Amsterdam’s 17th and 18th-century canal-side houses are world famous. Urban development projects completed in the 20th century have also had a considerable impact. In addition, the Netherlands has a wealth of modern architecture and provides many opportunities for young architects to experiment with new ideas in its emerging towns and growth centres.

Fine arTS The Netherlands has an age-old tradition of painting. The works of Rembrandt, Frans Hals, Vermeer, Van Gogh and Mondriaan are known throughout the world. Modern Dutch painters and sculptors have been extremely successful in keeping up this tradition.

Amsterdam’s 17th and 18thcentury canal-side houses are world famous 34 / Challenging Business Opportunity 2010

muSic The Netherlands has many orchestras based in towns and cities throughout the country - the most famous being Amsterdam’s Royal Concertgebouw Orchestra. Opera also flourishes and the Netherlands Opera company based in Amsterdam have established an international reputation. The Holland Festival is an internationally renowned music festival held in Amsterdam in June every year. liTeraTure A rich literary heritage typifies the Netherlands with many writers of the highest calibre coming from this area. In the Middle Ages, Dutch literature was part of a broad Western European tradition, and in the 16th century, humanism emerged, its leading Dutch representative being Erasmus. The publication in 1637 of the Statenbijbel is considered a milestone in the evolution of the Dutch language. Post-war literature was long dominated by three eminent novelists: Willem Frederik Hermans, Harry Mulisch and Gerard Reve.

Over the last decade, Dutch literature has gained in popularity abroad. ■

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