1 POLISH INFORMATION AND FOREIGN INVESTMENT AGENCY Foreign
Investment Department Warsaw, April 17 2015 Foreign investments in
Poland
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Structure of PAIiIZ PAIiIZ Foreign Investment Department
Manufacturing team BSS team Polish Foreign Investments team State
aid Section Economic Promotion Department Economic Information
Department Regional Development Department Bureau for Eastern
Poland Economic Promotion Programme total employment at PAIiIZ: 130
people joint-stock company, 100% owned by the Treasury 4/5 of the
budget from the state subsidy, 1/5 - own resources regional offices
Investors Servicing Centres in regions
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Considering of investment Long list of countries Short list
INVESTMENT DECISION Marketing campaigns, investment seminars,
work-shops, study tours Cooperation with Polish Embassies Project
Managers assistance Location advisory Site visits Assistance in
obtaining financial support from the state government Cooperation
with SEZs, data base of agencies (real estate,HR, legal), business
partners and suppliers Post-investment services Ombudsman for
foreign investors Long-term investment process! Agencys offer full
spectrum of business location advisory
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Geographical sources of FDI Major FDI investors in Poland (FDI
stock as of the end of 2011, in bn EUR) Source: National Bank of
Poland, 2012 FDI stock in Poland as of the end of 2011
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FDI by manufacturing activity (in EUR bn) FDI by sectors (in %)
Source: National Bank of Poland, 2012 FDI stock in Poland as of the
end of 2011
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FDI inflows to CEE countries (mn USD) Source: UNCTAD World
Investment Report 2012
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Wrocaw Source: PAIiIZ compilation, 2014 AUTOMOTIVE ELECTRONICS
HOUSEHOLD APPLIANCES Services and Manufacturing Hubs in Poland
(1)
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Wrocaw AEROSPACE BSS R&D Source: PAIiIZ compilation, 2014
Services and Manufacturing Hubs in Poland (2)
Slide 9
Completed projects by country of origin in 2014 Country No of
projects Investment value (m EUR) Employment US143651,808
Germany119484,121 Sweden337425 UK31,5210 Italy26765 Japan22260
45 COMPLETED PROJECTS Projects completed by November 2014
assisted by PAIiIZ Investments by country of origin 1782m EUR OF
INVESTMENT 7,604 NEW WORK PLACES The largest investors in terms of
the number of created job places The largest investors in terms of
invested capital 4 2 1 3 9 4 6 2 2 3 4 7 1 2 1
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Completed projects by region in 2014 4 investment: 61,6 m EUR
employment: 1 230 main sectors: BSS, logistic dzkie investment: 829
m EUR employment: 2 830 main sectors: automotive, BSS wielkopolskie
investment: 39,2 m EUR employment: 815 main sectors: BSS, food
processing maopolskie investment: 27,8 m EUR employment: 669 main
sectors: R&D, automotive dolnolskie investment: 292 m EUR
employment: 630 main sectors: food processing pomorskie
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Share of reinvestment in completed projects NumberValue (m EUR)
Employment Completed projects 451,782 7,604 including reinvestment
281,512 6,406 Share of reinvestments 62%85%84%
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Source: PAIiIZ Trends in FDI flow Sectors BSS manufacturing
Parameters Produkcja CAPEX zatrudnienie reinvestment - organic
growth - expansion projects - new type of operations zakup Real
estate needs Reinvestments job places rented office space
brownfield greenfield newcomers
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14 th place as the most attractive FDI destination 2 nd most
attractive country for FDI in the next 3 years 3 rd place worldwide
as the best quality location for manufacturing projects 2 nd
location in Eastern Europe and Russia offering the greatest revenue
opportunities over next three years Poland classified as a mature
outsourcing location 3 rd best location in the world after India
and China, for outsourcing businesses in financial, accounting,
advisory 6 th among top 10 destination countries in Europe in 2012
International recognition
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Source: World Bank, Doing Business 2015, 2014, 2013, 2012 Every
region has a leading champion in the scope of improvements made
since 2005 whether Poland for OECD high-income economies, China for
East Asia and the Pacific or Colombia for Latin America and the
Caribbean. DOING BUSINESS 2015 RANK DOING BUSINESS 2014 RANK DOING
BUSINESS 2013 RANK DOING BUSINESS 2012 RANK 32455574 Poland in
Doing Business 2015
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Source: Ankieta koniunkturalna EW 2014, AHK Polska, June 2014
Poland - positive investment factors
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Source: Ankieta koniunkturalna EW 2014, AHK Polska, June 2014
Poland negative investment factors
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Source: Ankieta koniunkturalna EW 2014, AHK Polska, June 2014
Would you take the same decision once again?
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Effective incentives system Tax breaks CIT exemption in Special
Economic Zone CIT relief for acquisition of new technology Real
estate tax exemption Government grants Cash grants available
through EU Funds Cash support The EU budget: present and future
financial perspective 2007-2013 Total:975 bn EUR Poland:69 bn EUR
(7% of total) 2014-2020 Total:960 bn EUR Poland:72.9 bn EUR (7.6%
of total)
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35% 20 % Warsaw Warsaw: - until 31.12.2017 15% - as of
1.01.2018 10% 35% 50%35% 50% 35% 25% Regional state aid map Maximum
intensity in years 2014-2020 * map will be valid starting from
1.07.2014
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Special Economic Zone (SEZ) is an especially dedicated area
where investors receive special benefits Major purpose of SEZ is to
support local growth There are 14 SEZ + subzones Cumulative area =
20 000 ha SEZ will operate at least until 2026 Permits to conduct
activities in SEZ are issued by the authorities of each SEZ Minimum
investment: EUR 100 000 Possibility of including the land selected
by an investor into SEZ Benefits from obtaining a permit to conduct
activities in SEZ: eligibility for income tax exemption plot of
land prepared for an investment project, available at a competitive
price free assistance in dealing with formalities relating to the
investment project Special Economic Zones
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PLN 83,8 bn of the investment expenditures (as of end of
September 2012) 82 % of the investment expenditures were incurred
by foreign companies 186 000 of new jobs have been created in SEZ
(as of end of September 2012) Every work place in the SEZ generates
0,75 of work place outside of the SEZ SEZ are located in 146 cities
and 210 communes on total area of 15 829 ha (as of end of 2012)
Results of SEZ CIT exemption in SEZ (mn PLN) Source: Ministry of
Economy, Office of Competition and Consumer Protection
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a form of regional state aid available in communes which
adopted resolutions concerning the possibility of exemption from
real estate tax maximum tax limits set by the Ministry of Finance
the exemption usually depends on the amount of new workplaces
created Jobs createdFull exemption Investment of at least EUR
100,000 503 years 705 years 907 years For every EUR 500,000
additional 6 month of exemption no more than 1 year Example:
Grudzidz, Kujawsko - Pomorskie province Investment in the Pomorska
SEZ by entrepreneur other than small or medium- sized Exemption
from real estate tax
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Priority sectors Production automotive electronics aviation
biotechnology big investment in other sectors Modern services ICT
SSC BPO R&D activity (e.g. software development) Program of
support of investments of considerable importance for Polish
economy Government grants priority sectors development of
innovativeness and competitiveness of Polish economy Purpose of
support 53 programmes of total amount PLN 900 m (since 2004) 19,000
of new jobs Result of support
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SectorNew work placesandInvestment costs Max. amount of support
Employment grant Production*250PLN 40 m from PLN 3,200 (USD 1,000)
to PLN 15,600 (USD 5,000)/ per job Modern services250PLN 1.5 m**
R&D35PLN 1.5 m Large investment in other sector 200 or 500 PLN
750 m or PLN 500 m Investment grant Production*50PLN 160 m 1.5% to
12.5% of investment costs Large investment in other sector 200 or
500 PLN 750 m or PLN 500 m R&D35PLN 10 mup to 10% *) Aid is not
granted if unemployment rate in location (poviat) is below 75% of
the national average, unless Eastern Poland **) excluding office
space rental costs Government grants - parameters
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5 National OP (74 %) 16 Regional OP (25 %) European Territorial
Cooperation Programme Source: European Commission European Funds
for Poland: EUR 67 bn in 2007-2013
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Regional contract between central government and
self-government units * for cohesion policy + EUR 28,5 bn for
agriculture policy European Funds for Poland: EUR 72.9 bn in
2014-2020 EUR 72.9 bn* Partnership contract between Poland and EC
(draft adopted by the Council of Ministers on January 15th,
2013)
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72.9 bn EUR EU Cohesion Fund (2014-2020)
Slide 30
Amazon logistic centres in Poland: 2 near Wrocaw (Kty, Bielany
Wrocawskie in Lower Silesia region) and 1 near Pozna (Tarnowo
Podgrne in Wielkopolska region). Amazon will invest in total
approx. EUR 40 million. Operations at the 3 new locations will
begin by the end of 2014 / beginning of 2015. ultimately 6.000
people will be employed permanently and additionally 9.000 at the
seasonal pick periods. three Amazon sites in Poland will be
integrated into the network of 25 centers in Europe as part of an
expansion strategy to serve customers in every European country.
Amazon logistic centres in Poland: 2 near Wrocaw (Kty, Bielany
Wrocawskie in Lower Silesia region) and 1 near Pozna (Tarnowo
Podgrne in Wielkopolska region). Amazon will invest in total
approx. EUR 40 million. Operations at the 3 new locations will
begin by the end of 2014 / beginning of 2015. ultimately 6.000
people will be employed permanently and additionally 9.000 at the
seasonal pick periods. three Amazon sites in Poland will be
integrated into the network of 25 centers in Europe as part of an
expansion strategy to serve customers in every European country.
Investment: 40 mn EUR Jobs (total in 3 centres): 6.000 + 9.000
(season) Investment: 40 mn EUR Jobs (total in 3 centres): 6.000 +
9.000 (season) Location factors : Logistic & technical
infrastructure Specialised and educated labour Competitive labour
costs Location factors : Logistic & technical infrastructure
Specialised and educated labour Competitive labour costs Pozna
Wrocaw I.2013 Start of operations Presentation of investment plans
VIII 2014 II.2014 Cornerstone laying ceremony Investment decision
X.2013 Case study AMAZON
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VW project step by step Over 22 greenfield offers provided, 11
visited sites 5 Special Economic Zones involved 5 trips lasting a
few days to Poland to view the plots with up to 10 participants
(PAIiIZ, investor and consultancy company) 5 PAIiIZ visits to the
selected regions prior to the investors visits in order to prepare
local authorities Several meetings at PAIiIZ HQ with local
authorities and SEZ 3 negotiation rounds in Berlin; up to 50
participants; with the participation of Vice Minister of Economy 1
visit to the VW HQ 1 VW VIP visit to Poland, viewing the sites from
the helicopter Wrzenia VW new greenfield project: investment
outlays: 800 m EUR employment: 2300 product: semi truck location:
Wrzenia, wielkopolskie province timeline: 2014-2018 Case study
Volkswagen
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Thank you for your attention 00-585 Warszawa, ul. Bagatela 12
tel. (+48 22) 334 98 00, fax (+48 22) 334 99 99 e-mail:
[email protected]
