The news PRINT PDF

Serbia attractive because of cheap labor

24. March 2010.

Attracting foreign investments shall be this year far more difficult than in 2009 because investors are increasingly cautious and money is more expensive. Advantage by Serbia in relation to the region shall be cheap labor.

This means not only low pays but also low taxes and financial concessions given to foreign investors.

Although the difference between the VAT between Serbia (18 percent) and Slovenia (20 percent) is 2 percent only it was a reason enough for ‘Gorenje Tiki’ to start moving production from Slovenia to Serbia.

Dragan Pejcic, advisor for foreign investments at the Agency for promotion of export and foreign investments (SIEPA) expects these factors to be decisive in the future for large number of companies thinking to move their production to Serbia.

The risk is also important to foreign investors when choosing a country. Serbia was for years occupying the seventh position but has now been classified in the sixth group by PricewaterhouseCoopers.

‘Two factors shall be decisive on the road to recovery. One is speed at which investors shall change their opinion over the risk of investing in a particular country and the second one is how rapidly the pays are going to rise in relation to some referential country’, the PricewaterhouseCoopers report reads.

Author: Jelena Aleksić

Source: Blic