BELGIUM
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From Adversity Often Comes Opportunities Despite the pandemic Belgium continued to see interest in Serbia, even with prospection and negotiation visits during the most difficult periods for travelling. Interest lay mainly in production cooperation or production in a Free Trade Zone with the shortest transport distance to Belgium
I N T E RV I E W
n the interview for Magazine Diplomacy and Commerce, Hugo van Veghel, C h a i r m a n o f t h e B e lgian-Serbian Business Association said that even in most difficult period of pandemic, interest for starting business in Serbia is not declining. He explainded that The COVID-19 pandemic hited Serbian SMEs hard, but every disruptions can open new opportunity. Towards his opinion, the cost-effectiveness of Serbia as an investment destination is still a basic motiv for starting a business in Serbia, and the post-pandemic period will for certain show more expressed interest.
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The Belgian-Serbian Business Association (BSBA) was established more than a decade ago. How much has the business climate in Serbia changed during that time? — Serbia’s investment climate has modestly improved in recent years, driven by macroeconomic reforms, greater financial stability, fiscal discipline and, not at least, an EU accession process that encourages legal changes that improve the business climate.
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SPECIAL EDITION
HUGO VAN VEGHEL Chairman of the BelgianSerbian Business Association
The negative economic consequences of the pandemic are still to be counted and some sectors are more jeopardized than others
However, as always, challenges remain. Then we think of bureaucratic delays and corruption, loss-making state-owned enterprises, the informal economy and a efficiency lacking judiciary. Under the business opportunities that are likely to continue to grow in the next years include mainly agriculture and relevant processing, waste management (solid and water), environmental protection, ICT, renewable energies as well as health care. Economic relations are progressing every year. Did Belgian investors increase their interest in Serbia? — Despite the pandemic we continued to see interest in Serbia, even with prospection and negotiation visits during the most difficult periods for travelling. Interest lay mainly in production cooperation or production in a Free Trade Zone with the shortest transport distance to Belgium. The post-pandemic period (whenever that will be) will for certain show more expressed interest. What would you pointed out as a ma-
jor advantage to invest here in Serbia, and what should be improved? — The cost-effectiveness of Serbia as an investment destination is still among the top appeals for expanding businesses. With a 15% flat rate of corporate tax and the lowest rate of salary tax and VAT among its East European counterparts, the cost of operating in Serbia is among the lowest in Europe. The prices of electricity, gas, postal services, landline telephony, fax service and maintenance of motor vehicles are the lowest among 37 European countries. According to the World Bank and International Finance Corporation’s (IFC) Doing Business survey, Serbia has improved its ranking significantly on many key indicators, such as starting a business and resolving insolvency. Despite these improvements, the two organisations still rank it in 86th position in the world for ease of doing business (publication for 2020). Let’s see what the FIC White Book will tell us in its November 2021 publication. Where do you see potentials for improving our cooperation, is it maybe