The Investment Climate in the Czech Republic

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The Investment Climate in the Czech Republic

• Ing. Boris Halata

THE MINISTRY OF THE INDUSTRY AND TRADE OF THE
CZECH REPUBLIC
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Location of the Czech Republic
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Basic Data On the Czech Republic
Area 78 864 km2 Population 10.3 million
Capital Prague GDP per capita (USD,PPP) 15
000 (2001) Inflation Rate () 4,7 (2001) Unem
ployment () 9,4 (09/2002)
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Inflow of Foreign Direct Investment to the Czech
Republic(1990 2002)
mil. USD
year
Source Czech National Bank, 2002
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Reasons to Invest in the Czech Republic

• Central position in Europe and improving
  transport links
  
• EU accesion process underway
• Well-educated,skilled and flexible workforce
• Well-developed domestic supply base
• Proven RD capabilities
• Revided economic growth continuing restructuring
  of industry
  
• Investment incentives and other business support
  measures
  
• Political, social and institutional stability

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Investment Incentives History
1998
Pilot Projects in the Field of Manufacturing
Industry
May 2000
The Investment Incentives Act
Improvement of Investment Incentives
2001-2002
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Improvement of Investment Incentives
2 pilot Projects in the Field of Strategic Servi
ces
Year 2001
Year 2002
Programs for Support of Strategic Services and
Technology Centres
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Act on Investment Incentives
Investment Incentives offered in the Czech
Republic

• Tax relief on corporate tax (for 10 or 5 years)
• Job creation grants
• Training grants
• Transfer of the land with technical facilities

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Current Results of the System of Investment Incen
tives
124 supported projects Total estimated amount of
investments 5 billion USD New created jobs over
37 000
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Major Foreign Investors in the Manufacturing
Sector in the Czech Republic
Many of the Czech Republics major foreign
investors are in the electronics industry.
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Supplementary programmes

• Industrial Zone Support Program
• Program for Support of Strategic Services
  Projects
  
• Program for Support of Establishment and
  Expansion of Technology Centres
  
• Supplier Development Program

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Investment Incentives for Strategic Services and
Technological Centres
Strategic services include projects such as

• Software Development Centers
• Expert Solutions Centers
• Shared Services
• Customer Contact Centers
• High-Tech Repair Centers

Technological centers are centers of innovation
activities that are closely related to
manufacturing
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Expenditure on RD by Country
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Thank You
THE MINISTRY OF THE INDUSTRY AND TRADE
OF THE CZECH REPUBLIC

www.mpo.cz