Download Poland

POLISH INVESTMENT AND
TRADE AGENCY
Business opportunities in Poland
Iwona Chojnowska-Haponik
Director
Foreign Investment Department
Hague, April, 2017
Value proposition
Location & economic stability
Mature business environment
•strategic location in Europ e
•part
of
s tran European transportation corridor
•stable economic situ ation
•rapidly growing inter nal market
• variety of m anufacturing sectors
• dense network of suppliers and
subcontractors
• thriving business services sector
• availability of clus ters, industrial
and technology parks
• well developed R&D i nfrastructure
Attractive labor ma rket
Investment support ecosystem
• young, well-educated workforce
• ca 10% of universit y students in
the EU
• language proficiency
• increasing labor productivit y
• strong work ethics
•CIT exemptions in 14 Special
Economic Zones
•local tax reliefs
•government grants
•EU grants for R&D
•Facilitators on central & local level
Strategic location and economic fundamentals
Poland – key facts
Area, population and economy
6th largest country in the EU
Currency
Polish Zloty (1 USD ~3.9 PLN, 1 EUR ~ 4.3 PLN,
4-year standard deviation: 8%)
GDP growth
2009 2010 2011 2012 2013 2014 2015 2016
2.8% 3.6% 5.0% 1.6% 1.4% 3.3% 3.9% 2.8%
Cumulative GDP growth 2010 / 2016
19.4% vs the EU: 7.4%
GDP (PPP)
GDP per capita
USD 1,045 billion (PPP, 2016) – IMF (25th in the world)
USD 27,107 (PPP, 2016) – IMF
Foreign trade in 2016
export EUR 183.6 bn (+2.3%)
import EUR 178.9 bn (+0.9%)
Largest EU funds beneficiary
EUR 100 bn in years 2014-2020
Low public debt (2015)
51.1% of the GDP v. the EU average 85.0%
FDI stock as of the end of 2015
EUR 167.1 bn
Membership
WTO (1995), OECD (1996), NATO (1999), EU (2004)
Source: IMF, World Economic Outlook, March 2017
Stable economic situation
• GDP growth in 2016: Poland 2.8% vs. EU 1.9%
• Quarterly GDP growth (y-o-y) in Poland vs. EU (in %)
5,0
4,0
3,3
3,0
2,0
1,0
1,3
0,2
2,2
1,7
0,7
1,6
1,0
3,1
1,3
4,3
3,8
3,8
1,8
1,3
3,3
3,1
2,9
1,9
2,0
1,2
0,0
EU
Poland
•Inflation
Inflation
(February 2017)
Yearly basis
(m/m-12)
Monthly basis
(m/m-1)
EU
1.9%
0.3%
Poland
1.9%
0.5%
• Main drivers of economic growth
- net exports
- domestic demand
- investments
Source: Eurostat, tec00115, namq_10_gdp, teicp000, March 2017
3,2
2,8
2,1
1,8
1,8
3,1
1,9 2,3 1,9
European Commission Forecast – Winter 2017
GDP growth (%)
2016
2017
2018
EU28
1.9
1.8
1.8
Eurozone
1.7
1.6
1.8
Germany
1.9
1.6
1.8
Poland
2.8
3.2
3.1
Czech Republic
2.4
2.6
2.7
Slovakia
3.3
2.9
3.6
Hungary
1.9
3.5
3.2
Bulgaria
3.3
2.9
2.8
Romania
4.9
4.4
3.7
Source: https://ec.europa.eu/info/publications/economy-finance/european-economic-forecast-winter-2017_en, March 2017
Unemployment rate
01/2017: 8.6%
1,397,000
Poland, Q4 2016
Pomorskie
7.3%
Warmińsko-Mazurskie
14.2%
Zachodnio-Pomorskie
11.0%
Podlaskie
10.4%
KujawskoPomorskie
12.1%
Lubuskie
8.7%
10
Mazowieckie
7.2%
Wielkopolskie
5.0%
0
Łódzkie
8.6%
Dolnośląskie
7.3%
Opolskie
9.0%
11% >
8 – 11%
< 8%
20
Śląskie
6.7%
Lubelskie
10.4%
Świętokrzyskie
10.8%
Małopolskie
6.7%
Podkarpackie
11.6%
Source: Central Statistical Office, Eurostat teilm020, March 2017
Eurostat: Poland 5.4% vs EU 8.1%
(as of January 2017)
Year
Unemployed
Unemployed with
higher education
2006
2,309,410
140,718 (6%)
2016
1,335,155
177,559 (13%)
Human resources availability
Population of CEE countries (%)
Population by age classes in Poland (%)
100%
90%
65+
15%
80%
70%
50-64
21%
60%
50%
40%
25-49
37%
30%
20%
Population by age classes CEE countries (m)
10%
25
0%
25-49
20
15
10
15-24
0-14
15-24
12%
0-14
15%
 Poland is the 6th largest country in the EU in terms
of population
 Poland is the biggest country among CEE members
of the EU
5
 64% of population is younger than 49 years old
-
 10.4 m Poles are less than 25 years old
 Second lowest median age in CEE - 39.6 years old
Source: Eurostat demo_pjangroup, demo_pjanind, March 2017
Human capital
24 mn people aged 49 and less
Academic centers
Intern
TRI-CITY
OLSZTYN
SZCZECIN
(64%) Almost 1.41 m students
BIALYSTOK
BYDGOSZCZ/TORUN
(2015/2016) More than 395,000
WARSZAWA
POZNAN
graduates
(2015)
Over 57,000
foreign students from 156 countries
(4% of all students)
ZIELONA GORA
LODZ
LUBLIN
No. of students (thousands)
WROCLAW
More than 90% of students speak foreign languages
151 – 200
KRAKOW
Population with higher education: 25% in
society, 37% of working population
201 >
KIELCE
OPOLE
RZESZOW
KATOWICE
101 – 150
51 – 100
50 <
438 higher education institutions
City
ational recognition
Students
Graduates
19 universities
Warszawa
243 300
59 000
25 technical universities 72
Krakow
160 800
44 900
academies of economics 728
Wroclaw
120 000
30 800
Poznan
116 400
32 000
Katowice metro
97 800
28 200
Tricity
90 200
22 500
Lodz
76 400
19 800
Lublin
67 300
19 200
different majors taught
Growing number of science students
Source: Central Statistical Office, BDL, Ministry of Science&Higher Education, March 2017
Foreign language capabilities
Foreign language capability by age groups
Learning of foreign languages
is obligatory in the Polish
education system
Children
learn
foreign
languages from the age of 6
Foreign language among students
English is the most popular
foreign language in Poland
Language proficiency is one of
the strongest points for Poland
as a BSS hub
Source: European Commission’s survey, October 2013, Hays, 2015
Achievements of Polish students
ACN International Collegiate Programming Contest is an annual multi-tiered
competitive programming competition among the universities of the world. The
contest is sponsored by IBM.
2012 held in Poland, Team from University of Warsaw took 2nd place beating 110
teams
Microsoft Imagine Cup is a global competition focused on finding IT solutions to real
world issues
In 2012 students from Technical University in Gdansk and Adam Mickiewicz University
in Poznan took the 2nd and 3rd place respectively. Since then Polish teams
always among World Finalists
Every third student doing internship in Microsoft HQs in Redmond (USA) comes from
Poland
2011: Polish team from University of Silesia is a special winner of Samsung
Application Contest
2005 – 1st place ; 2011 - 3rd place; 2012 - 1st place ; 2013 – 10th place ; 2015 – 4th and
7th place
Results of past editions give Poland 4th place in general classification of countries
behind Russia, Belarus and Japan. Poland won 3x 2nd place and 1x 3rd place
Source: www.microsoft.com, www.us.edu.pl
Road & rail infrastructure
Source: Ministry of Transport, Construction and Maritime Economy, March 2017
Airport infrastructure
Direct flights to major European cities
Map of airports
Warsaw
Aberdeen, Amsterdam, Athens, Barcelona, Bari, Basil, Belgrade, Bergamo,
Bergen, Berlin, Birmingham, Bristol, Brussels, Budapest, Bucharest, Kharkov,
Chicago, Dnipropetrovsk, Doncaster, Doha, Dunai, Dublin, Dusseldorf, Eindhoven,
Eilat, Erevan, Frankfurt, Geneva, Glasgow, Goteborg, Hamburg, Helsinki, Kiev,
Chisinau, Kosice, Copenhagen, Liverpool, Lisbon, London, Ljubljana, Luxembourg,
Lviv, Madrid, Malmo, Minsk, Milano, Munich, Moskva, Napoli, Nice, New York,
Odessa, Oslo, Paris, Beijing, Petersburg, Porto, Prague, Reykjavik, Riga, Seoul,
Sofia, Istanbul, Stockholm, Tallinn, Tbilisi, Tel Aviv, Toronto, Torino, Venezia, Vienna,
Vilnius, Zagreb, Zurich
Kraków
Alicante, Amsterdam, Athens, Barcelona, Basil, Bergen, Berlin, Boulogne,
Bristol, Brussels, Dortmund, Dublin, Dusseldorf, East Midlands, Edinburgh,
Eindhoven, Eilat, Frankfurt, Hamburg, Helsinki, Copenhagen, Leeds,
Liverpool, London, Lyon, Madrid, Manchester, Milano, Napoli, Newcastle,
Oslo, Paris, Roma, Shannon, Stavanger, Stockholm, Tel Aviv, Trondheim,
Venice, Vienna, Zurich
Berlin, Brussels, Dortmund, Dublin, Frankfurt, Hamburg, Helsinki,
Copenhagen, London, Manchester, Munich, Oslo, Paris, Rome, Prague,
Edinburg, Birmingham, Bristol, Stockholm, Barcelona, Bergen, Goteborg,
Cologne, Malmo, Reykjavik, Trondheim, Turku, Stavanger
GDAŃSK
SZCZECIN
BYDGOSZCZ
MODLIN
POZNAŃ
ŁÓDŹ

WARSZAWA
LUBLIN
WROCŁAW
KATOWICE
KRAKÓW RZESZÓW
Gdańsk
 Overseas flights
Katowice
European flights
mn
Number of passengers served by Polish airports: 34mn (+12%)
15
12,8
10
5,0
5
Wrocław
Birmingham, Milano, Roma, Stavanger, Paris, Dublin, Dusseldorf, Frankfurt,
London, Oslo, Tel Aviv, Maastricht, Stockholm, Malmo, Cologne, Napoli,
Liverpool, Barcelona, Dortmund, Belfast, Bristol, Bologna, Kiev, Glasgow,
Edinburgh, Eindhoven
Dublin, Dusseldorf, Frankfurt, Copenhagen, London, Munich, Oslo, Paris,
Rome, Barcelona, Bologna, Cork, Stockholm, Liverpool, Glasgow,
Dortmund, Venice, Tel Aviv, Lviv, Kiev, Lisbon, Reykjavik
4,0
3,2
2,9
2,4
1,7
0,7
0,5
0,4
0
Source: The Civil Aviation Office, airports’ webpages, March 2017
0,3
Poznań
Dublin, Dusseldorf, Frankfurt, Copenhagen, London,
Edinburg, Barcelona, Milano, Stockholm
Rzeszów
Dublin, Frankfurt, London, Manchester, Oslo, Edinburg, Bristol
Szczecin
Oslo, London, Dublin, Bergen, Stavanger, Liverpool
Lublin
Barcelona, Burgas, Doncaster, Dublin, Eindhoven,
Liverpool, London, Munich, Oslo, Stockholm, Tel Aviv
Bydgoszcz
Dublin, London, Frankfurt, Birmingham, Glasgow, Dusseldorf, Rome
Łódź
Dublin, London, Munich, Amsterdam, East Midlands
0,2
Munich, Oslo,
Glasgow,
Kiev,
FDI stock in Poland
•
The cumulative value of Foreign
Direct Investments
in
Poland
amounted to
167.1 bn EUR as of the end of 2015
• exceeded
In
2015 EURthe(reinvested
12.1bn
flow60% of theofFDI flow)
gains constituted
FDIinto
Poland
35
30
15
10
UE
94.6%
other
countries
5.4%
30,3
27,4
Major FDI investors in Poland
(FDI stock as of the end of 2015, in bn EUR)
25
20
Geographical sources of FDI
as of the end of 2015
19,3 17,9
10,2 9,2
8,5
5
0
Source: National Bank of Poland, November 2016
6,3 5,8 5,1 4,9
4,2 3,8 3,2
1,8 1,5 1,1 1,0 0,8 0,7 0,6 0,6 2,9
FDI stock in Poland as of the end of 2015
FDI by manufacturing sectors
(bn EUR)
FDI preferred sectors
(%)
ICT
Construction 5%
5%
Professional,
Other
Scientific &
11%
Technical
Activities
6%
Manufacturin
g
29%
10,3
Food & tobacco products;
beverages and tobacco
products
Real estate
activities
7%
Wholesale
and retail
trade
14%
Motor vehicles& other
transport equipment
Financial and
insurance
activities
23%
10,2
Metal & machinery products
9,7
Petroleum, chemicals,
pharmaceutical products,
rubber & plastic products
9,7
Wood, paper; printing and
reproduction of recorded
media
5,0
0
Source: NBP, November 2016
2
4
6
8
10
wavin.jpg
Dutch investors - key characteristics
Key facts

Dutch cumulative direct investment in
Poland totalled EUR 30.3 bn as of the end of 2015

the Netherlands is 1st largest investor in
Poland
 share of Dutch investment in the stock of FDI
in Poland represents 18%

2,523 enterprises with Dutch shareholding
(as of the end of 2015) operate on the Polish
market of which 559 have invested over USD 1 m

companies
with
Dutch
shareholding
employ directly over 120,000 people
 54% of all Dutch capital was invested
in Mazovian region, 13% in Wielkopolskie and
7% in Silesia
 Dutch companies have invested 41%
in manufacturing type of operations, 10% in
trade and 8% in BSS
Source: Central Statistical Office, National Bank of Poland, March 2017
Examples of Dutch investors
Services and Manufacturing Hubs in Poland
AUTOMOTIVE
HOUSEHOLD APPLIANCES
ELECTRONICS
Services and Manufacturing Hubs in Poland
AEROSPACE
BUSINESS SERVICES SECTOR
R&D
Corporate income tax rates across Europe
Bulgaria
Ireland
10,0%
12,5%
Latvia
15,0%
Lithuania
15,0%
Romania
Slovenia
Ukraine
16,0%
17,0%
18,0%
Poland
19,0%
Czech Rep.
19,0%
Hungary
19,0%
UK
Estonia
Finland
20,0%
20,0%
20,0%
Sweden
22,0%
Slovakia
22,0%
the
Netherland
s
Spain
German
y France
Belgium
Source: KPMG, 2017
25,0%
25,0%
29,7%
33,3%
33,99%
Regional state aid in EU – forms of incentives
Cash support
•Government grants
•Cash grants - EU Funds for R&D
projects Tax breaks
•CIT exemption – SEZ/relief for R&D
•Real estate tax exemption
The EU budget: current multiannual financial framework
2007 – 2013
2014 – 2020
Total:
EUR
975 bn Poland: EUR
69 bn (7%)
Total:
EUR
960 bn Poland:
EUR 82.5 bn (8%)
Government grants – priority sectors
Program of support of investments of considerable importance for Polish economy
Priority sectors
Manufacturing
-
automotive
electronics and household appliances
aviation
biotechnology
food processing
„big investment” in other sectors
Business services
-
ICT
SSC
BPO
R&D activity (e.g. software development)
Purpose of support
• development of innovativeness and competitiveness of Polish economy
Result of support
• 77 programmes supporting investments worth 13.6 bn PLN and creating
27.8 thousand new job places
Key facts about EU funds for R&D&I
Operational Programs cofinanced by structural funds
(82.5 bn EUR + national
contribution)
• The main financial instrument supporting R&D&I is the
Operational Programme Smart Growth (PO IR): the
programme
is nationwide and focuses on
supporting key
R&D&I
projects
enhancing
cooperation
between businesses and academic
centers
• Innovations are also supported through other regional
programmes:
• Regional Operational Programmes: each
voivodship has defined its own list of smart
specializations (KIS) and
will
support
implementation of innovative projects in line
with regional KIS
6 Operational Programs (55.3%)
16 Regional Operational Programs (37.9%)
• Eastern Poland Operational Programme:
funds will be distributed to innovative
projects completed in the macroregion of
Eastern Poland by cooperating companies
Source: NCBR, Ministry of Economy, Ministry of Infrastructure and Development, January 2016
Regional Leader in Business Friendliness
74
55
2017
41
45
39
36
33
27
32
24
25
24
„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.”
Source: Doing Business 2017, 2016, 2015, 2014, 2013, 2012, World Bank
Poland – a safe bet
Would you choose the country as a location
for investment once more?
YES
Poland
Estonia
Czech Rep.
Romania
Serbia
Lithuania
Slovakia
Bulgaria
CEE
Sloveni
a
B&H
Croatia
Hungary
Macedonia
Latvia
Source: Economic trends in CEE in 2016, AHK, n=1508
NO
95%
5%
93%
7%
92%
8%
91%
9%
90%
10%
88%
12%
85%
15%
84%
16%
83%
17%
81%
19%
80%
20%
80%
20%
80%
20%
75%
72%
25%
28%
Why Poland – Summary
Availability of skilled human resources
Strategic location
and strong economic fundamentals
Mature business environment
Effective incentives system
How can we help you?
Investment process
Considering of
investment
Direct marketing
Long list of
countries
Short
list
Investment decision
Agency’s offer
Pro-active approach: identifying the needs of the
companies
•investment seminars, work-shops, study tours
•co-operation with Polish Embassies/Trade Offices
Professional services: dedicated Project
Manager’s assistance
•macroeconomic and sectoral data
•business case building, site visits
•real estate offers: the best possible location
One-stop-shop: implementation assistance
•financing options from Polish Development Fund,
investment incentives: grants, Special Economic
Zone
• database of suppliers and subcontractors
Antibureaucratic concierge: after-care services
•spokesman for foreign investors, business climate
improvement
Active projects serviced by PAIiH
As of March 2017, PAIiIZ is assisting 191 potential FDI projects:
• Total value of investment: EUR
5.1 bn
• Total number of new workplaces:
55,100
Main sectors:
BSS=SSC+IT+BPO (69)

automotive (32)

food processing (15)

R&D (12)

White goods (9)

Major countries – investors:
USA (62)

Germany (22)

Japan (17)

Poland (8)

UK (7)

Welcome to Poland!
00-585 Warszawa, ul. Bagatela 12
tel. (+48) 22 334 98 75
e-mail: [email protected]
www.paiz.gov.pl