French-Serbian Chamber Of Commerce

GUIDE

French-Serbian Chamber Of Commerce

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Partnership & Cooperation December 2009 2009 / Guide to French-Serbian Chamber Of Commerce 1

French-Serbian Chamber Of Commerce / 2009

Guide to

CONTENTS

6

FOREWORD - BY H.E. JEAN-FRANCOIS TERRAL, AMBASSADOR OF FRANCE IN BELGRADE

EDITORIAL CONTRIBUTORS Ana Stojanović PHOTO Slobodan Jotić LECTOR Pat Andjelkovic TRANSLATORS Snežana Bjelotomić

FACTS & FIGURES

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A STRONG PRESENCE IN THE BALKANS, ANTOINE TOUSSAINT, PRESIDENT OF THE EXECUTIVE BOARD, SOCIETE GENERALE

EDITOR IN CHIEF Tatjana Ostojić t.ostojic@cma.rs ART DIRECTOR Tamara Ivljanin, t.ivljanin@cma.rs

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ENCOURAGING FRENCH INVESTORS - ERIC BLANCHETETE, PRESIDENT OF THE FRENCH-SERBIAN CHAMBER OF COMMERCE & CEO OF FINDOMESTIC BANK IN SERBIA

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PROJECT MANAGERS Vesna Vukajlović, v.vukajlovic@aim.rs; Ana Zagajac, a.zagajac@aim.rs

LONG-TERM OPERATIONS, FRANCOIS EDOUARD DRION, PRESIDENT OF THE EXECUTIVE BOARD OF DIRECTORS, CREDIT AGRICOLE

GENERAL MANAGER Ivan Novčić, i.novcic@cma.rs FINANCIAL DIRECTOR Ana Besedić, a.besedic@cma.rs EDITORIAL MANAGER Tanja Banković, t.bankovic@cma.rs

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STRONGLY RECOMMEND INVESTING IN SERBIA, COSTIN BORC, GENERAL MANAGER OF LAFARGE BFC COMPANY

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FRENCH INVESTMENTS WORTH OVER HALF A MILLION U.S. DOLLARS, ECONOMIC COLLABORATION BETWEEN FRANCE AND SERBIA

PRINTING Rotografika d.o.o.

Segedinski put 72, Subotica Guide to French-Serbian Chamber Of Commerce 2009/2010 published by: alliance international media Knjeginje Zorke 11b, 11000 Belgrade, Serbia Phone: +(381 11) 308 99 77, 308 99 88 Fascimile: +(381 11) 244 81 27 E-mail: office@ allianceinternationalmedia.com www.allianceinternationalmedia.com ISSN no: 1451-7833 All rights reserved alliance international media 2009

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STATEGIC PARTNERSHIP A FOUNDATION FOR BETTER RELATIONS, BOZIDAR ĐELIĆ, VICE PRESIDENT OF THE GOVERNMENT OF SERBIA FOR EUROPEAN INTEGRATION

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THE CUSTOMER IS OUR PRIORITY, EMIL VISLOGUZOV, REGIONAL SENIOR OFFI CER FOR ALCATELLUCENT IN SERBIA, BOSNIA AND HERZEGOVINA, AND MONTENEGRO

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FRENCH BUSINESS ETHICS REGISTER

6 Guide to French-Serbian Chamber Of Commerce / 2009

BY H.E. JEAN-FRANCOIS TERRAL, Ambassador of

France in Belgrade

S

erbia is going through changes. Last year, a pro-European democratic majority came to power under the leadership of President Tadic. Despite the current blockade of the Stabilization and Association Agreement, Serbia’s European perspective is now firmly established.

We believe today that the year 2009 should mark a revival in Serbian-French relations. It is something we are working hard on and it is the number one priority of this Embassy.

The revival of bilateral links was launched by the visit of President Tadic to Paris on May 27. The French and Serbian heads of state then agreed to give this revival a legal and political framework, through a strategic partnership agreement, which could be signed during the upcoming visit of President Sarkozy to Belgrade next year.

We now need to put some substance into this framework. While the political dialogue is already quite lively, we should above all devote ourselves to deepening and intensifying economic ties.

We have a solid base on which to work on. Three big French banks – Societe Generale, Credit Agricole, and BNP Paribas (through its affiliate Findomestic), already operate in Serbia. Two leading French international groups have their production units in Serbia - Lafarge in Beocin and Michelin in Pirot. Smaller French companies are present in the country through various affiliates such as in the metallurgical sector (Le Belier, Streit, Lohr), in the agri-food sector (Bongrain, Lactalis, Soufflet), and in the distribution sector (Intermarche through Interex).

But much still remains to be done. In order to develop trade and attract French investments, we brought a large delegation of French companies to Serbia in July under the auspices of the French Business Confederation , MEDEF. Numerous contacts were established on this occasion, through which Serbia was again put on the radar of a number of French companies, small and large, whose attention has been drawn to Serbia’s renewal and which are now on the lookout for opportunities. We have also set up the French-Serbian Chamber of Commerce which will increasingly be a powerful tool for advancing our cooperation. It already groups over 60 firms.

We are only at the beginning, but we have started moving. Tomorrow Serbia will be in the European Union, a prospect that will undoubtedly be the strongest impetus to the further strengthening of French-Serbian ties.

2009 / Guide to French-Serbian Chamber Of Commerce 7

INTERVIEW Eric Blanchetete, President of the French-Serbian Chamber of Commerce & CEO of Findomestic Bank in Serbia

ENCOURAGING

FRENCH

INVESTORS

The inauguration of the French-Serbian Chamber of Commerce in Belgrade

“Serbia is a country of great potential and opportunities and I sincerely believe that more French investors and large companies will realize that very soon. In order to achieve this, it is absolutely necessary to accelerate reforms as well as to continue efforts to join the European Community.�

8 Guide to French-Serbian Chamber Of Commerce / 2009

T

he Fre n ch - S e r bi an Chamber of Commerce has been unanimously accepted into the membership of the French Chambers of Commerce abroad (UCCIFE). UCCIFE unites 114 French commerce chambers which make up the first private network of French companies in the world, operating in 78 countries, and covering 25.000 businesses. At the moment, the French-Serbian Chamber of Commerce has 80 members with over 60 companies. The beginning of operations of the new Chamber and its plans were cause for conversation with Mr. Eric Blanchetete, President of the FrenchSerbian Chamber of Commerce & CEO of Findomestic Bank in Serbia.

Mr. Blanchetete, you have long banking and business experience in Serbia. How do you rate today’s business environment is Serbia?

Comparing to 2001 when I first arrived in Serbia, I’ve noticed a very im-

portant improvement in the business environment. Integration in the European community will further accelerate Serbian economy. Many international companies are investing in Serbia and we, as the French-Serbian Chamber of Commerce, are encouraging French investors

I am sure that the political climate in Serbia will contribute to changing the image of Serbia globally to consider Serbia in their plans and help them invest in the country. The country is stable, potentials are high, and there is a lot of well-educated staff as well as a readiness of Serbian companies to join the global market.

What are the biggest problems you and your business partners are facing

in Serbia?

Members of French-Serbian Chamber of Commerce are generally satisfied with their position on the Serbian market. The major problems we are facing here are related to long administrative procedures, regulations covering areas of corporate governance, investment policies, and environmental legislation that are not fully harmonized with EU standards and, therefore, the implementation of those standards should be a priority.

But probably the most important setback is the lack of appropriate infrastructure and a long-term development plan of the country. For example, will the Corridor 10 be finished in 5 years?

Comparing with other large European economies, it seems that French investors are somewhat reserved when deciding to enter the Serbian market.

What would be your comment?

At the moment, new investments are actually rare all over the world, having in mind the influence of the great global

2009 / Guide to French-Serbian Chamber Of Commerce 9

INTERVIEW

financial crises on world economy. However, Serbia is a country of great potential and opportunities and I sincerely believe that more French investors and large companies will realize that very soon. In order to achieve this, it is absolutely necessary to accelerate reforms as well as to continue efforts to join the European Community. Also, I would like to point out that a lot of large French companies have already entered the Serbian market, such as Michelin, Lafarge, Veolia, Alcatel Lucent, Schneider Electric, Renault, Legrand, Saint Gorbain, Societe Generale, Findomestic Bank, part of the BNP

Paribas GROUP, Credit Agricole, Gide Layette Nouel, etc.

The French/Serbian Chamber of Commerce is one of the few foreign Chambers, which, as their name indicates, shows that Serbian companies are welcome to join. What kind of a response are you getting from companies?

The French –Serbian Chamber of Commerce already has more than 80 members including 60 companies in Serbia, and I am really proud to say that this list is increasing every day. Besides the largest French companies that are present

PRIORITY LIST OF THE FRENCH/SERBIAN CHAMBER OF COMMERCE

The goals of the French Serbian Chamber of Commerce are: * Attracting French investors to Serbia, * Recognizing French companies that could be interested in the Serbian market, * Promoting the benefits of investing in Serbia, * Enabling members to perform integration of network companies to exchange information and re-

10 Guide to French-Serbian Chamber Of Commerce / 2009

lying on support and professional knowledge of networks; * Promoting the image of Serbia in France, * Providing direct services to companies that wish to be informed, do business, and establish operations in Serbia, * Facilitating access to the Serbian market by support through initial establishment, * Market research.

on the Serbian market, the number of Serbian companies joining our Chamber is increasing every day. Our main goal is not only to encourage and support French companies operating in Serbia, but to advise and support Serbian exportoriented companies.

Do you expect that the establishment of the French/Serbian Chamber of Commerce will encourage French investors to invest in Serbia more intensely?

Of course. The primary goal for establishing the Chamber of Commerce was to encourage French investors and to promote the image of Serbia in France. As you probably know, the image of Serbia among the world’s investors, despite undisputable potential, is still unsatisfactory. I strongly believe that this image will be corrected in the nearest future and I am going to fight for any possible new investor in Serbia. I am also sure that the political climate in Serbia will contribute in changing the image of Serbia globally. The strategy of the French-Serbian Chamber of Commerce is based on cooperation and regular communica-

tion with Regional Chambers of Commerce as well as with the Chamber of Commerce in France in order to promote Serbia.

As a banker and President of the French/Serbian Chamber of Commerce, what would be your arguments for inviting new French investors to Serbia?

The most important asset of Serbia is its people: Western-oriented, well educated, the majority speaking foreign languages, open-minded, and innovative.

Do you think that French companies in Serbia receive the same market treatment as domestic ones or companies form other countries?

I certainly confirm this. In fact, we have very good support from the Serbian government and responsible departments.

On the other hand, the French Ambassador in Serbia, Mr. Francois Terral, is fully engaged in protecting French interests in Serbia. And after all, the friendship and cooperation between France and Serbia have a very long history and we wish to continue in the same manner.

France and Germany are the only European countries where indices show the economy crisis may be coming to an end. How do you explain this?

When we are talking about forecast, we have to be very, very careful. What I can say is that situation in France, for the time being, is not too good and the unem-

The friendship and cooperation between France and Serbia have a very long history and we wish to continue in the same manner ployment rate is increasing. However, we should do our best to intensify business activities. We have to be more optimistic about 2010 especially because France and Germany have just published that they have positive growth for the 4Q. How do you see the influence of French companies in improving the overall business climate in Serbia, especially when it comes to adopting European standards?

France is delegating experts from different fields to help the Serbian government to fully implement European standards. Mr. Vincent Degert, Head of the European Union and Delegation of the European Commission to the Republic of Serbia, is from France as well. Furthermore, French companies operating in Serbia through their experience and way of performing activities are contributing to the improvement of the overall busi ness climate.

2009 / Guide to French-Serbian Chamber Of Commerce 11

INTERVIEW Bozidar Djelic, Vice President of the Government of Serbia for European Integration

STATEGIC PARTNER FOUNDATION FOR B Everyone agrees that there is potential for more cooperation between Serbia and France, primarily in the areas of infrastructure, energy, and transport. French companies are welcome to tenders for building Corridor 10, which will be started at the end of this year and continue throughout 2010. There have been two companies with a majority of French capital that responded to tender for two thermal power plants with an overall capacity of 1.4 GW

By Tatjana OSTOJIC

B

ozidar Djelic, Vice P re s i d e nt of the Government of Serbia for European Integration knows French economy, business manners, and strategy better than his colleagues. This is one of the reasons why we sought answers from him to questions on cooperation between Serbia and France.

French and German economies are the only ones in Europe that announced a light at the end of the economic crisis. How would you comment on this piece of news?

The emergence from recession of two of the EU’s largest economies forecasts the end of the crisis in Europe. It is expected that by the end of the year, EU economy will formally exit the recession, which means positive growth in the last two quarters of 2009 on the 12 Guide to French-Serbian Chamber Of Commerce / 2009

level of EU 27. Given the fact that Serbia is highly dependant on the dynamics of economy movements within the EU (around 55% of Serbia’s external trade is with the EU countries), the recovery of these countries will significantly contribute to the growth of the Serbian economy in 2010.

Serbian/French relations have a long tradition, but the presence of French companies in Serbia, as well as overall investments was, in relation to some other countries, far smaller in scale. How do you evaluate this fact?

With around 400 million euros of external trade exchange in the first nine months of this year, France is the tenth most significant trade partner for Serbia. Some big French companies like Michelin, Lafarge, Societe Generale Bank, Bongrain, and others have been long present in Serbia. I think that we should work on other large companies like Peugeot and Danone, which have

not yet positioned themselves in the region, to recognize Serbia as the next destination for their investments.

Recently you had a meeting with French Minister for European Affairs, Pierre Lelouche. Aside from support for the European integration of Serbia and the liberalization of the visa regime, you spoke about the development of economic cooperation in the realm of infrastructure, energy, and transport. What are the evaluations and plans?

Everyone agrees that there is potential for more cooperation between Serbia and France, primarily in the areas of infrastructure, energy, and transport.

French companies are welcome to tenders for building Corridor 10, which will be started at the end of this year and continue throughout 2010. There have been two companies with a majority of French capital that responded to tender for two thermal power plants with an

RSHIP A BETTER RELATIONS overall capacity of 1.4 GW. The choice of a strategic partner for that project is expected at the beginning of 2010.

French companies have a lot of experience with projects of administering local communal activities (recycling, administering the sewage, public transportation, water supply, etc) where there is a need to invest around 10 billion euros over the next few years. All those are potential projects which need to con-

tribute to the greater economic cooperation between France and Serbia.

What does Serbia need to do to attract more investments from France?

The planned signing of the Agreement on Strategic Partnership between Serbia and France is a good base for the growth of French companies’ interest in the Serbian market. This was confirmed

by the visit of a big French economy delegation in the middle of July 2009, which was seen as very successful.

French companies acquainted themselves with possibilities offered by the Serbian market as well as with the incentives the state gives to investors. Of course, the crisis put aside the realization of the projects, but the first concrete results are expected in 2010.

There are some other factors which

2009 / Guide to French-Serbian Chamber Of Commerce 13

INTERVIEW promotion of Serbia. That is, at the same time, the greatest benefit which I expect from this association. Solving potential problems facing French companies in Serbia as well as better cooperation between French and Serbian companies will make for easier accessibility of Serbian products to French consumers.

French economy is mostly made up of big companies, and as one of the interests of our SME’s I see the possibility for them to become suppliers for these companies in the market of Southeastern Europe. Finally, the governments of Serbia and France now have an adequate partner on the economy side, which opens a new possibility for the increase of economic cooperation between the two countries.

are making cooperation between the two countries more difficult and Serbia can have no influence over them. That is the unrealistically high risk-assessment of investing in Serbia by the OECD, which makes the financial means necessary for the realization of external trade and investment projects more expensive. According to that scale, we have been listed as a part of the last, the seventh group, together with some African countries, which by no means gives a realistic picture of the situation. There we need the help of France.

Have there been any bad experiences for French investors in previous years that might have caused a decline in French interest to invest in Serbia? What should have been done?

I think French companies have had more positive than negative experiences in Serbia. Those positive experiences need to serve as the basis for the promotion of Serbian economy in France. For some of the companies like Michelin, there have been additional possibilities opened up to increase capacities in Serbia. There I refer mostly to the possibility of duty-free tire export to Turkey, based on the Free trade Agreement. Unfortunately, there are examples of unsuccessful cooperation, but that has in no way influenced a decline in the interest of French companies for the Serbian market.

The establishment of the French/ Serbian Chamber of Commerce has been an active move to unite the

With around 400 million euros of external trade exchange in the ďŹ rst ten months of this year, France is the tenth most signiďŹ cant trade partner for Serbia French business community and to create a reference partner for talks on business conditions for French companies in Serbia. What concrete benefits do you expect for the French and for the Serbian side?

French companies already present here are the best ambassadors for the

STRATEGIC PARTNERSHIP

T

he planned signing of the Agreement on Strategic Partnership between Serbia and France is a good base for the growth of interest of French companies in the Serbian market. This was confirmed by the visit of a big French economy delegation in the middle of July 2009, which was seen as very successful. French companies acquainted themselves with the possibilities offered by the Serbian market as well as with the incentives the state gives to investors. Of course, the crisis put aside the realization of the projects, but the first concrete results are expected in 2010.

14 Guide to French-Serbian Chamber Of Commerce / 2009

To what extent do business organizations in Serbia, and there are more than 30 of them, influence the decisions of the Serbian government and the promotion of the overall business ambience in the direction of approaching European standards?

Foreign business associations are significant partners to the Government of Serbia in its goal of attracting direct foreign investments in two ways: they create adequate business surroundings and form a positive image about Serbia and the world. During the guillotine of regulations, which are expected to end at the end of this year, organizations like the Foreign Investors Council, the American Chamber of Economy, and others have contributed significantly to bringing the positive practices of European countries to promote business ambience. These organizations have been actively included in the work of the National Council for Competition as well as in the work of other counseling government bodies. With their engagements, they pointed out a great number of problems and how those problems are solved in European countries. These organizations are also significant for bringing European business practice and standards closer to Serbian compa nies.

INTERVIEW Antoine Toussaint, President of the Executive Board, Societe Generale

A STRONG PRESENC

“Today, the Serbian banking market is deemed well capitalized and safe. It is also profitable and it still attracts attention.”

Mr. Toussaint, you have spent 25 years as a senior manager in the international banking sector. With that experience, can you briefly explain the consequences of the current economic crisis on Serbia’s banking sector?

As usual, the crisis brought a lot of problems, like a decrease of economic activity, liquidity issues, an increased cost of risk, budget pressures, etc. Damages which are induced by the crisis are neither fast nor easy to remove, and naturally, banks are affected. However, crisis also plays a role of “natural selection.” It always BUOYS sustainable and strong businesses, while many weak and opportunistic business models suffer more. I can proudly say that, although the crisis has brought obstacles and tensions, it has made Societe Generale Banka Srbija more recognized in its role of a solid partner to both Serbian businesses and the State throughout the crisis, improved our image of a bank that fosters long-standing and sincere partnership with its clients, and it proven our strategy of stable growth. The market itself awarded us with continuous portfolio growth and a number of new reputable clients. This has encouraged us to avoid any tempting high-risk moves or stop-and-go policy that we sometimes see on the market.

By Ana STOJANOVIĆ uestions regarding operations in time of crisis as well as in Serbia under different political and economic circumstances were just some of those put before for Antoine Toussaint, President of the Executive Board Societe Generale.

Q

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Societe Generale Group is not rushing its decisions when it comes to geographical coverage

Up until now your work mainly consisted of running and restructuring the banking operations of Societe Generale Group in different regions.

On the basis of which criteria does SG selects new markets?

Societe Generale Group is not rushing its decisions when it comes to geographical coverage. Rather than

CE IN THE BALKANS investing just to have another “flag on the map” like some fast movers, we are careful in assessing the opportunities that the market offers, following the development of our large clients and monitoring moves of the existing competition. One of the core strengths of Societe Generale is its proven business model of universal bank and sound track record in its organic growth and development. The Group is comfortable with the organic growth development as it occurred in Serbia, as well as with investigating different acquisition opportunities. I would like to stress that Societe Generale has a strong presence in the Balkans, since most of the banks from the region have been acquired.

The last few examples include SG Podgorička Banka, Montenegro, SG Ohirdska Banka, FYR of Macedonia, and SG Banka Populore, Albania.

Through different organizational structures, SG has been present with us for nearly 30 years. SG is also the first bank in our country with major foreign capital. From the current perspective, how would you rate this past thirty-year period of development of Serbian banking market?

One could say that the 30 years

Societe Generale’s presence in Serbia exactly matches the most volatile part of both the economic and political history of Serbia. Whatever the setting was, either flourishing “market socialism” in the seventies, or the complete breakdown of the emerging transitional economy during the late nineties, banks were always the core of the financial system. The banking market

THE RECIPE FOR SUCCESS

B

oth SG Group and SG in Serbia are provide a wide range of services, making them universal banking institutions with a clear focus on customers, who are the core factor around which our services are carefully developed.

SG is continuing to perform its activities in line with transparent business policy and values sincere relations with the clients. We are successfully leveraging our strong corporate culture that nurtures professionalism, innovation, and team spirit, while providing our staff with the opportunity to employ their talents for the benefit of their clients and banking practice. Supported by a strong sense of cost efficiency and a proven business model, our people are driven to be adoptive and to recognize chances even during the crisis.

was for a long time developing through domestic banking institutions which went from solid to bad debt accumulating banks. It was not until 2002 that the state made a bold move and a number of state owned banks were closed and the market was provided a chance for a fresh start. Although this move came late in comparison with some other countries of similar profile, the financial sector was fast in regaining its stability. A number of foreign banks entered the market, adding to the overall positive sentiment which foreign investors developed toward Serbia in the last decade. Today the Serbian banking market is deemed well capitalized and safe. It is also profitable and it still attracts attention.

You personally have already been in Serbia for five years, when the country was going through a period

2009 / Guide to French-Serbian Chamber Of Commerce 17

INTERVIEW of significant economic and political changes. How does this instability affect the operation of your bank?

Although last 5 years cannot be deemed the most unstable during our presence in Serbia, they did help us to further develop our adaptive capabilities and flexible approach to the services we are offering. Even though the most significant changes usually occur at the level of macroeconomic and political developments, the strongest effect on our operations come from the measures of the NBS, since the NBS is the one providing rules for banking operations and is the one unlocking or decreasing opportunities for development. A good example is the way that minimal capital requirements for banks slowed down the strong development of retail banking, which made investments already made into retail networks less valuable, and fundamentally reduced further investment into retail networks.

For us it meant that we needed to refocus back to corporate banking in a quick and efficient fashion.

Foreign investors have a lot of objections on the complicated legislation in Serbia and frequent changes of business conditions. How do you see this problem?

It is normal that foreign investors seek to invest in the most favorable environment and that they expect the environment to improve over time, but at the same time seek a certain level of stability and consistency in the regulatory environment they operate in. Commercial missions and foreign chambers and associations are continuously stressing the problems and obstacles that businesses are facing in Serbia. In the Foreign Investor Council and French Serbian Chamber of Commerce, we are active in contributing to improve the business environment.

From a bank perspective, all the difficulties and inefficiencies which are creating obstacles for both domestic and foreign clients are reflected through increased cost of risk, mak18 Guide to French-Serbian Chamber Of Commerce / 2009

The Serbian government and NBS need to continue being persistent and faster in making procedures and legislation more sound and efficient ing lending more expensive. In practice, our clients are waiting a number of weeks for different operation licenses, certificates, and decisions, which prevents them from operating and prevents us from providing financing.

Also, known problems with Cadastre, bankruptcy, and court procedures often make the usual collaterals and financial or governance covenants unenforceable, leaving the lender practically unprotected.

Banking business conditions that we see as problematic are related to overcapitalization of banks and high requirements regarding obligatory reserves. Optimizing capital adequacy requirements, decreasing obligatory reserves, and implementing IFRS accounting for provisioning would provide cheaper loans and more competition. The Serbian government and NBS need to continue being persistent and faster in making procedures and legislation more sound and efficient.

Since you spent most of your career in the environment of a unified European market, what part of the existing corpus of European bank-

ing regulations do you think should be first applied in Serbia?

Serbia seems to be quite dedicated to the EU accession process. From what we understand regarding the banking market, current legislation follows the EU Acquis Communautaire, and legislation precedes the practice making Serbia ready for the EU on paper. However, it is important to understand that many regulations are yet to be tested in practice, and that politics still play a significant role in banking.

One of the most important points is to ensure the true autonomy and independence of the NBS. Further, different instruments and measures should be applied to strengthen the stability of the financial system in order to provide a more comfortable environment for banks to invest more. These measures span from full implementation of IFRS accounting to the NBS optimizing its requirements and increasing lending towards banks.

To what extent can the SG and other foreign banks realistically influence the improvement of Serbia’s EU accession process?

Being aware that most of the accession-related activities that Serbia is implementing are going to be the result of work of the relevant institution, we are certain that continuous investments in Serbia as well as the mere presence of global financial institutions deliver a strong message to the political decision makers both in Serbia and in the EU. Also, financial institutions like Societe Generale actively add to improvements of the regulatory framework as well as best practices which are transferred from EU practice and adopted in Serbia on its road of preparation for EU accession. Finally, when it comes to our business environment and relations as CEO’s, we are communicating our support of Serbia’s EU accession. I was recently in Brussels where I met a lot of officials and I had opportunity to advocate positively the accession process.

FEB 09. / ISSUE NO. 57

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INTERVIEW

LONG-TERM OPERATIONS

Francois Edouard Drion, President of the Executive Board of Directors, Credit Agricole

From the very beginning of its presence in this country, Credit Agricole has considered Serbia as one of the most interesting economic potentials in the region

R

ecently, Meridian Bank, a member of the French financial group Credit Agricole, announced that it had changed its name to Credit Agricole Serbia and had opened a new office in Belgrade. Over the past two years, the French banking group has invested more than 90 million euros in the development of the bank’s operations in Serbia. Further plans for Credit Agricole was only one occasion to speak with Francois Edouard Drion, President of the Executive Board of Directors, Credit Agricole.

GLOBAL JOINT VENTURE

T

he joint venture between Credit Agricole and Societe Generale is related to Asset Management activities. Together with a 70% participation from Credit Agricole, our new company called Amundi will rank number three in Europe and among the top ten global players. This joint venture does not plan to operate in Serbia at the moment.

20 Guide to French-Serbian Chamber Of Commerce / 2009

Francois Edouard Drion, you are in Serbia as a CEO of Credit Agricole Serbia, one of the largest French banks, which has operated in Serbia until recently under the name Meridian bank. Does this change of name mean that the Serbian part of the bank, by its standard and operations, has earned the right to belong to the Credit Agricole Group in name as well?

Our bank operated under the name of Meridian Bank for more than three years. The standards of business practice in the Credit Agricole Group are very demanding and thus, after making substantial changes in the Bank’s structure, rebranding and relocating more than 70% of our branch network, investing in the new banking system and providing our employees with efficient training, we have met the required business standards of the Group. We were then enabled by our mother company to be one of the first institutions to take the name of the Group brand in whole Credit Agricole system. From the very beginning of its presence in this country, Credit Agricole has considered Serbia as one of the most interesting economic potentials in the region. Broadening the variety of its banking offer with other companies from the Group such as leasing or brokerage illustrates the fact that the Group’s strong presence in Serbia was planned for long term operations.

Will this fact mean that Serbia, as a market, will also have a better position on the list of priorities of French investors?

One of our missions is also to effectively share our experience with any company that might be interested in investing in the Serbian market. On the other hand, with our new name we are fully integrated into the Group and our Bank is powered by the whole Credit Agricole organization. Our Bank is the entry point for CALYON – Credit Agricole Group’s corporate and investment bank and first corporate lender in Eastern Europe.

accent on the food processing industry. We are participating in this year’s Government program of subsidized loans for agricultural producers, processors, and distributors. We are also preparing a wide range of new products aimed at the agricultural segment in order to support the further development of the market.

“One of our missions is also to share effectively our experience with any company that might be interested in investing in the Serbian market” Credit Agricole SA is the largest retail bank in France. Will this fact change your business strategy, or will you stay on the same course of both retail and corporate business operations? What is the priority?

We are a community bank, which implies that our offer consists of products and services for all types and segments of clients. Being a part of Credit Agricole Group, the number one retail bank in Europe, we will continue to focus on private individuals and small businesses with appropriate financial solutions. Moreover, we are developing life insurance activities, which are a growing demand of our clients.

Also, deriving from our name and the Group’s 120-year tradition, we have a strong focus on development in the agro business sector with a special

What percentage of products offered by Credit Agricole in France can you offer to your clients in Serbia?

Credit Agricole Srbija is a 100% owned subsidiary of Credit Agricole Group. As I mentioned before, our main focus over the past years was to prepare ourselves to provide better quality of service to all our clients.

Credit Agricole Group is giving us strong marketing and financial support. We are now focusing on generating new services and support for our clients and with our solid financial capacities, we are confident that we will more rapidly increase our market shares in the coming years.

Speaking of innovative products and services, our Bank was among the first to introduce the combination of insurance with any loan products as a consequence of the experience Credit Agricole Group has in bank insurance, a regular activity in Europe and in the world, but quite new to the Serbian market.

France has recently announced its exit from the economic crisis. How do you evaluate the economic situation in Serbia?

Personally, I think that that we will witness positive trends next year, even though we are still facing the negative adverse consequences of the crisis.

Long-term strategy banks will fully overcome the negative impacts of the crisis. I think that Credit Agricole will remain the leading retail bank in Europe. In Serbia, Credit Agricole will certainly accelerate its development in 2010.

2009 / Guide to French-Serbian Chamber Of Commerce 21

INTERVIEW Alcatel - 20 years of successful activity in Serbia

THE CUSTOMER I Interview with Emil Visloguzov, Regional Senior Officer for Alcatel-Lucent in Serbia, Bosnia and Herzegovina, and Montenegro

N

We are of course facing stormy weather in the economy these days, even here in Belgrade.

Yet we are confident that information and communication technology (ICT), business models, and cutting edge technologies will make a difference in this context.

This industry plays an increasingly important role within the local and regional economy 22 Guide to French-Serbian Chamber Of Commerce / 2009

ext year Alcatel will celebrate 20 years of working in Serbia.

Although you have been recently appointed to Serbia, what has been the development of this Serbian company over the past two decades?

I was appointed Regional Senior Officer for Serbia, Bosnia and Herzegovina, and Montenegro five months ago, and it has been a privilege for me to be here in these countries. We have 20 years of successful activity in Serbia, and I am committed to continuing these efforts in the fast-growing telecom segment in Serbia, Bosnia and Herzegovina, and Montenegro.

It is also a challenge for me to raise the very good and strong relations we have with our local customers to an even higher level, to further develop Alcatel-Lucent activities that ensure a win-win proposition for local customers. I strongly believe Alcatel-Lucent is perfectly positioned to support the transformation of its local customers with best-in-class solutions and service, as it has been doing for the past 20 years.

Has the current economic crisis impacted your business in Serbia?

We are of course facing stormy weather in the economy these days, even here in Belgrade. Yet we are confident that information and communication technology (ICT), business models, and cutting edge technologies

will make a difference in this context.

This industry plays an increasingly important role within the local and regional economy.

It is important for economies to understand the impact that broadband and Information and Communication technology have, not just on the local community, but also on the creation of the world’s economy. Broadband has created the essence of globalization and has therefore had an impact on people’s lives. Businesses around the globe have reorganized from a model that we had - extremely physical - and moved to a model that combines both the physical and virtual worlds.

Service providers today are confronted with a tough reality that could turn into a business opportunity, but this means a change of mindset. You might think that technology is the driving force behind this exercise. I do not fully agree with that. The end-user is an important factor today.

In a few years, the main customers of service providers will be today’s 15 year-olds. These people are always connected. They think in terms of Web 2.0, are multitasking, and have high expectations.

Video is one of the drivers for the next investment cycle, and here we have IPTV, high-definition, and video streaming. Alcatel-Lucent began the concept of video over DSL. We are leading IPTV and keep developing it.

Internet, voice, data, and video traffic continue to increase, pressuring service providers to find ways to cut the

S OUR PRIORITY cost of reliably transporting traffic.

This means that our key investment priorities would be also IP, broadband, and the ability to master complexity.

What are you plans for the next five years in Serbia?

We are not a vendor. We are a partner with 20 years experience in Serbia and our aim is to be close to our customers and Serbian market.

Great Serbian minds such as Nikola Tesla and Mihajlo Pupin started the process of innovation that has changed the course of mankind. In the same way, Alcatel-Lucent Bell Labs has helped weave the technological fabric of modern society more than any other institution. Among the top ten Bell Labs innovations that changed the world, we have the transistor, cellular telephone technology, the solar cell, the laser, the Unix operating System and C Language, communication satellites, the touch-tone telephone, the digital signal processor, digital transmission and switching, and data networking. Its scientists and engineers have made critical scientific discoveries, have launched technological revolutions reshaping the way people live, work and play, and have built the most advanced and reliable communications networks in the world. Our scientists and engineers have earned 7 Nobel Prizes in Physics and 8 Marconi International Fellowship Awards.

You are also the regional senior officer and, in addition to Serbia, you are covering Bosnia and Herzegovina and Montenegro. Where is the most favorable business climate?

Today in almost all industries, businesses are going regional. This is why

Today in almost all industries, businesses are going regional it becomes more and more critical to be able to sustain and assist company regional operations no matter what the country the companies are in – Serbia, Bosnia and Herzegovina or Montenegro - at the highest standard of quality for the services they deliver.

Taking this into consideration, a trusted partner is a true valuable competitive advantage for any company.

This is why Alcatel-Lucent is committed to staying close to its customers, understanding their needs, and sharing with them day-to-day business risks.

2009 / Guide to French-Serbian Chamber Of Commerce 23

FACTS & FIGURES French Republic is a member state of the European Union located in its western region, with several overseas territories and islands located on other continents. France is a unitary semi-presidential republic with its main ideals expressed in the Declaration of the Rights of Man and of the Citizen.

F

rance is the largest state in the European Union by area and the second largest in Europe behind Ukraine.

France has been a major power for many centuries with strong economic, cultural, military and political influence. During the 17th and 18th centuries, France colonised great parts of North America; during the 19th and early 20th centuries, France built the second largest empire of the time, including large portions of North, West and Central Africa, Southeast Asia, and many Pacific islands.

24 Guide to French-Serbian Chamber Of Commerce / 2009

GOVERNMENT The French Republic is a unitary semi-presidential republic with strong democratic traditions. The constitution of the Fifth Republic was approved by referendum on 28 September 1958. It greatly strengthened the authority of the executive in relation to parliament. The executive branch itself has two leaders: the President of the Republic, currently Nicolas Sarkozy, who is head of state and is elected directly by universal adult suffrage for a 5-year term (formerly 7

It is illegal for the French state to collect data on ethnicity and race, a law with its origins in the 1789 revolution and reaffirmed in the constitution of 1958

President of the Republic, Nicolas Sarkozy years), and the Government, led by the president-appointed Prime Minister, currently François Fillon.

French politics are characterised by two politically opposed groupings: one left-wing, centred around the French Socialist Party, and the other right-wing, centred previously around the Rassemblement pour la République (RPR) and now its successor the Union for a Popular Movement (UMP). The executive branch is currently composed mostly of the UMP.

France is divided into 26 administrative regions. 22 are in metropolitan France (21 are on the continental part of metropolitan France; one is the territorial collectivity of Corsica): Among the 100 departments of France, four (French Guiana, Guadeloupe, Martinique, and Réunion) are in overseas regions(ROMs) that are also simultaneously overseas departments (DOMs) and are an integral part of France and the European Union and thus enjoy a status similar to metropolitan departments The regions are further subdivided into 100 departments. The 100 departments are subdivided into 341 arrondissements which are, in turn, subdivided into 4,032

ADMINISTRATIVE DIVISIONS

France consists of 26 administrative regions, of wich 22 are in metropolitan France 2009 / Guide to French-Serbian Chamber Of Commerce 25

cantons. These cantons are then divided into 36,680 communes, which are municipalities with an elected municipal council. There also exist 2,588 intercommunal entities grouping 33,414 of the 36,680 communes (i.e. 91.1% of all the communes). Three communes, Paris, Lyon and Marseille are also subdivided into 45 municipal arrondissements.

ECONOMY

DEMOGRAPHY

France is the smallest emitter of carbon dioxide among the seven most industrialized countries in the world, due to its heavy investment in nuclear power.

France is a developed country and possesses the fifth largest economy by nominal GDP and eighth largest economy by purchasing power parity. It is the most visited country in the world, receiving 82 million foreign tourists annual-

According to the WTO, in 2009 France was the world’s sixth-largest exporter and the fifth-largest importer of manufactured goods. In 2008, France was the third-largest recipient of foreign direct investment among OECD countries at $117.9 billion With an estimated population of 65.1 million people, France is the 19th most populous country in the world.

France’s largest cities are Paris, Marseille, Lyon, Lille, Toulouse, Nice, and Nantes.

In 2004, a total of 140,033 people immigrated to France.

Of them, 90,250 were from Africa and 13,710 from Europe.

It is illegal for the French state to collect data on ethnicity and race, a law with its origins in the 1789 revolution and reaffirmed in the constitution of 1958. Nonetheless, France is an ethnically diverse nation with about six million North Africans and an estimated 2.5 million blacks. It is currently estimated that 40% of the French population descends from different waves of migrations, with estimated 4.9 million foreign-born immigrants, of which 2 million have acquired French citizenship 26 Guide to French-Serbian Chamber Of Commerce / 2009

ly. France is one of the founding members of the European Union, and has the largest land area of all members. It is also a founding member of the United Nations, and a member of the Francophonie, the G8, G20, NATO, OECD, WTO and the Latin Union. It is one of the five permanent members of the United Nations Security Council, possesses the third largest number of nuclear weapons in the world and the largest number of nuclear power plants in the European Union.

France is a member of the G8 group of leading industrialised countries, it is ranked as the fifth largest economy by nominal GDP. It joined 11 other EU members to launch the euro on 1 January 1999, with euro coins and banknotes completely replacing the French franc in early 2002.

France’s economy combines extensive private enterprise with nearly 2.5 million companies registered. The government retains considerable influence over key segments of infrastructure sectors, with majority ownership of railway,

COMPANY Despite the turbulent economic momentum “Danos and Associates” in cooperation with “BNP Paribas Real Estate” started their business in Serbia at beginning of the year.

The head office of the company is in Belgrade, with a team of experienced professionals providing expert knowledge in real estate consulting, appraisals/valuations, investment advisory and sales and letting of commercial properties.

The strategic goal of Belgrade office is to become the new market leader for the Adriatic region.

SERVICES Tailor-made services are offered to clients, investors, developers, with goal of creating added value, reducing and preventing loss with comprehensive advisory solutions that concerns commercial real estate sector.

Jovan Jovanović, Director HISTORY AND INTERNATIONAL NETWORK “Danos” started operations 42 years ago in Greece and on Cyprus. During the last few months, offices in Belgrade, Tirana and Sofia were opened.

Since 2008, “Danos” is a member of the international network “BNP Paribas” as a part of specialized property division of “BNP Paribas Real Estate”, which operates in 80 offices in Europe, the Middle East and United States, having over 3500 employed professionals.

Danos, BNP PARIBAS Real Estate Srbija Phone: +381 11 2600 603 E-mail: office@danos.rs, www.danos.rs

electricity, aircraft, and telecommunications firms. It has been gradually relaxing its control over these sectors since the early 1990s. The government is slowly selling off holdings in France Télécom, Air France, as well as the insurance, banking, and defence industries. France has an important aerospace industry led by the European consortium Airbus, and has its own national spaceport, the Centre Spatial Guyanais.

According to the WTO, in 2009 France was the world’s

sixth-largest exporter and the fifth-largest importer of manufactured goods. In 2008, France was the third-largest recipient of foreign direct investment among OECD countries at $117.9 billion. In the same year, French companies invested $220 billion outside of France, ranking France as the second most important outward direct investor in the OECD, behind the United States ($311.8 billion), and ahead of the United Kingdom ($111.4 billion), Japan ($128 billion) and Germany ($156.5 billion).[42][43] France is the smallest emitter of carbon dioxide among the seven most industrialized countries in the world, due to its heavy investment in nuclear power.

Large tracts of fertile land, the application of modern technology, and EU subsidies have combined to make France the leading agricultural producer and exporter in Europe. Wheat, poultry, dairy, beef, and pork, as well as an internationally recognized foodstuff and wine industry are primary French agricultural exports With 81.9 million foreign tourists in 2007, France is ranked as the first tourist destination in the world, ahead of Spain (58.5 million in 2006) and the United States (51.1 million in 2006).

2009 / Guide to French-Serbian Chamber Of Commerce 27

INTERVIEW

STRONGLY R INVESTING IN Costin Borc, General Manager of Lafarge BFC Company

We are preparing for the time that will come after the economic crisis, and working to get through it stronger, which means that we will carry on with our investment plan as soon as more favorable circumstances occur

By Tatjana OSTOJIĆ

W

e have plans to increase capacity once the market is normalized, that is, when market demand increases, which means large investments. Meanwhile, we’ll continue to

invest in environmental protection, plant modernization (automation), application of Health & Safety Standards and principles, and investments in Beočin harbor,” said Costin Borc, General Manager of Lafarge BFC Company for CorD’s Special Edition. Lafarge was one of the first foreign investors in Serbia.

Lafarge’s investment in Beocin cement plant in 2002 is one of the largest foreign investments in Serbia. Was that a good business move?

Lafarge has been doing business in Serbia since 2002. This was one of the first privatizations. We worked a lot and we did a lot. Our decision to start business in Serbia was good, and it has been confirmed so far. I would strongly recommend investing in Serbia, and strongly suggest that investors should have a lot of patience and exert efforts to understand local customs and culture. Patience brings results.

How has the economic crisis influenced your operation this year?

We faced the greatest economic crisis of the last 80 years. Real effects were present in the second quarter of this year.

Our plant, along with other companies in the country and world, are currently doing business in more unfavorable conditions, because it has been estimated that the Serbian cement market decreased by 25% compared to 2008. A great slowdown in construction activities in Serbia by even more than 30 percent brought us, for sure, into an unenviable position.

Our largest customers are concrete producers, warehouses, and concrete product producers. Concrete producers are mostly located in Belgrade, while our largest clients in the warehouse-trade category are in Vojvodina, as well as concrete products producers, and all of them operated at significantly reduced capacity. However, I believe that we reacted in a timely manner and devised

SERBIAN MARKET

S

erbia is a market that has been constantly developing over the last few years, but often legal frames cannot adequately follow the increasing needs of foreign investors and the industry. What I always emphasize is a need of constant infrastructure development, because it is the best way to attract foreign investors. I am happy to see that Serbia is intensively working on solving these issues.

28 Guide to French-Serbian Chamber Of Commerce / 2009

ECOMMEND N SERBIA a good strategy to diminish the effects of the economic crisis as much as possible. With maximum rationalization of costs we started various kinds of saving at all levels in the plant, and each employee is aware that s/he is directly contributing to overall business. We are preparing for the time that will come after the economic crisis, and working to get through it stronger, which means that we will carry on with our investment plan as soon as more favorable circumstances occur.

You stated that improvement in the business environment has been visible since 2002 up to the present. In your opinion, what else should be done to create such a business climate to attract more investors?

Serbia is a market that has been constantly developing over the last few years, but often legal frames cannot adequately follow the increasing needs of foreign investors and the industry. What I always emphasize is a need of constant infrastructure development, because it is the best way to attract foreign investors.

I am happy to see that Serbia is intensively working on solving these issues.

You are active in the field of corporate social responsibility and cooperation with the local community. Do you plan to continue cooperation in the following years?

As part of the community, we significantly contribute to its development, and

However, I believe that we reacted in a timely manner and devised a good strategy to diminish the effects of economic crisis as much as possible local community is the one that provides conditions for the company’s successful operation. In order to realize longterm business plans, we coordinate our interests with requirements of the community through socially responsible activities. We are quite open to everything that’s going on in the local community and we’re trying to jointly solve challenges we are facing. We work a lot with the local, but also with broader community, and we are spending significant resources on these activities.

What are Lafarge’s business plans for the next year?

We have invested 90 MEUR so far in technical modernization of the plant, whereof 40 MEUR is for investments

directly aimed at environmental protection. The results are visible, but the work has not been finished yet. We will keep moving in the same direction in the future. Although the crisis is global and severe, we were planning to increase capacity, having in mind last year’s sales.

However, we postponed our plans for a while, but by no means have cancelled or forgotten them. We have plans to increase capacity once the market is normalized, that is, when market demand increases, which means large investments. Meanwhile, we’ll continue to invest in environmental protection, plant modernization (automation), application of Health & Safety Standards and principles, investments in Beočin harbor.

2009 / Guide to French-Serbian Chamber Of Commerce 29

ECONOMY

FRENCH INVEST HALF A MILLION Economic collaboration between France and Serbia

France is interested in investing in Serbia primarily in the following sectors: automotive and machining industry, agriculture, footwear and textile production, and IT

September 2009, the total foreign exchange between Serbia and France amounted to 557.2 million USD which is a 36.6% decline in comparison to the same period in 2008. Our exports to France stood at 172.1 million USD, while imports were worth 385.1 million USD. In the same period, export activities were reduced by 40.5% and imports by 34.7% in relation to 2008.

By Tatjana OSTOJIC

D

ata compiled by the Serbian Ministry of Trade and Services show that France is one of the most important foreign trade partners of Serbia. Out of 161 countries that Serbia exported to in 2008, France takes 11th place and 7th place when it comes to Serbia’s imports. Last year, 3.2% of Serbia’s total exports went to France. The import percentage is the same.

The lowest foreign trade between the two countries was recorded in 2000 when it stood at only 120.8 million USD, while the highest dates back to 30 Guide to French-Serbian Chamber Of Commerce / 2009

2008 – 1.09 billion USD, with exports amounting to 346 million USD and import to 741 million USD. In the period from January to

EXPORTS According to the State Statistical Office, the leading Serbian companies in terms of exports to France in 2008, were the following: U.S. STEEL SERBIA - Smederevo, TIGAR MH, LE BELIER Kikinda, STREIT-JUCIT, IMPOL SEVAL VALJAONICA ALUMINIJUMA, PRAJS, Copper pipe factory Majdanpek, TRAYAL

THE MOST IMPORTANT INVESTMENTS IN SERBIA

T

he most important French investments in Serbia are the following: Lafarge-BFC Cement Beočin, Michelin Tigar Pirot (car tyres), TarkettSommer Sintelon Backa Palanka (flooring), Le Belier-Kikinda foundry, Cofiger-MIN Skretnice (railway signaling) and Bongrain ZrenjaninMlekoprodukt (dairy production). French retail chain, Intermarche (operating in Serbia since 2004 and having supermarkets in Priština, Čačak, Niš, Zaječar and Šabac) has opened the first supermarket in Belgrade.

Compagnie Internationale de Malteries bought a malt producer, Maltineks, from Bačka Palanka. The French company, Lohr is the owner of the factory for the production of trailers for the transport of passenger cars based in Bačka Topola.

TMENTS - OVER N U.S. DOLLARS KORPORACIJA, LUKA FOOD, EI P.C.B. FACTORY, AGROPARTNER, MN Loznica, METALAC, SIMP and APO Fashion System d.o.o. - Senta.

IMPORTS The biggest importers in 2008 were the following: RENAULT NISSAN SRBIJA, VITRO GROUP, VERANO, LOHR, PHARMASWISS, TARKETT, COCA-COLA - HBC-SRBIJA, VIP MOBILE, DELTA AUTOMOTO, FARMALOGIST, Nelt Co, Velefarm, Hemofarm, Toyota and Jugohemijafarmacija.

OPPORTUNITIES FOR FURTHER COOPERATION When it comes to the trading regime, Serbia applies the same rules in trading with France as in trading with any other EU country. This implies that Serbian exports are custom duty and quota free for most of the industrial and agricultural products, with the exception of fish, beef, sugar, and wine, which export is limited by quantity, with our without-preference custom duties. These so-called extraordinary trading measures came into force on December 1st 2000, and were supposed to end in 2005, but the EU Council extended the deadline until 2010.

The Trade Agreement on Textile Products, signed and ratified by the European Community and the Republic of Serbia, provides enough room for higher exports of textile products.

Bearing in mind that buy / sell is the most dominant form of trading between Serbia and France and in order to advance the quality and level of cooperation between the two countries, attention needs to be paid to the following areas: joint investments, technology transfer, long-term production cooperation, and joint appearance on third markets. Also, the free trade agreements with the Russian Federation, Belarus and Turkey, as well as the CEFTA from 2006 are also quite significant, says

The level of foreign trade between the two countries is below real needs and possibilities.

Serbian Ministry of Trade. The plan is to conclude similar agreements with Iran and the Ukraine, too.

INVESTMENTS The development of industrial cooperation between the two countries since 2000 has led to the increase of French investments and the performance of French companies in Serbia. France occupies eighth place on the list of foreign investors in Serbia. According to the National Bank of Serbia, the accumulated value of French direct investments for the period 2000-2008 reached 503.6 million USD. The following French compa-

nies are operational in Serbia: Societe Generale (a bank that has been present in Serbia since 1977 which currently has 63 branches, employs close to 850 workers, and serves more than 250,000 clients), as well as banks like Credit Agricole and BNP Bank. Then there are companies like Alsthome (energy), AGS (transport), Bull (information technology), EUROPLAKAT (publicity, ads, commercials), Global Press (editions by the Hachette Publishers), L’Oreal (cosmetics and perfumes), Sanofi SYNTHELABO (pharmaceutical), and SCHEINDER ELECTRIQUE (electrical), to mention just few.

The latest French investment (made in March 2009) was by Sagem Company, which invested in an electric meter plant in Niš. The plan is for Sagem to invest one million euros in the first year of operations, and, over the next five years, the company plans to spend at least six million on production equipment. France is interested in investing in Serbia primarily in the following sectors: automotive and machining industry, agriculture, footwear and textile production, and IT. The French – Serbian Chamber of Commerce will certainly help in improving the cooperation between Serbia and France. At the same time, positive experiences that the French companies have had in privatization in Serbia so far are the best recommendation for other French companies to invest here in the future.

2009 / Guide to French-Serbian Chamber Of Commerce 31

BUSINESS ETIQUETTE AND PROTOCOL IN FRANCE

AVOIDING

CONFRONTATION

French business behavior emphasizes courtesy and degrees of formality require trust and respect to get things done. Trust is earned through proper behavior.

COMMUNICATION - Creating a wide network of close personal business alliances is very important.

- If you do not speak French, an apology for not knowing their language may aid in developing a relationship.

- It is always a good idea to learn a few key phrases, since it demonstrates an interest in a long-term relationship.

- The way a French person communicates is often predicated by their social status, education level, and which part of the country they were raised.

- In business, the French often appear extremely direct because they are not afraid of asking probing questions.

- Written communication is formal.

Secretaries often schedule meetings and may be used to relay information from your French business colleagues.

BUSINESS MEETINGS ETIQUETTE - Appointments are necessary and should be made at least 2 weeks in advance.

- Appointments may be made in writing or by telephone and, depending upon the level of the person you are meeting, are often handled by the secretary.

- Do not try to schedule meetings during July or August, as this is a common vacation period.

- If you expect to be delayed, telephone immediately and offer an explanation.

- Meetings are to discuss issues, not to make decisions.

32 Guide to French-Serbian Chamber Of Commerce / 2009

- Avoid exaggerated claims, as the French do not appreciate hyperbole.

BUSINESS NEGOTIATION - French business emphasizes courtesy and a fair degree of formality.

- Wait to be told where to sit.

- Maintain direct eye contact while speaking.

- Business is conducted slowly. You will have to be patient and not appear ruffled by the strict adherence to protocol.

- Avoid confrontational behavior or high-pressure tactics. It can be counterproductive.

- The French will carefully analyze every detail of a proposal, regardless of how minute.

- Business is hierarchical. Decisions are generally made at the top of the company.

- The French are often impressed with good debating skills that demonstrate an intellectual grasp of the situation and all the ramifications.

- Never attempt to be overly friendly.

The French generally compartmentalize their business and personal lives.

- Discussions may be heated and intense.

- High-pressure sales tactics should be avoided. The French are more receptive to a low-key, logical presentation that explains the advantages of a proposal in full.

- When an agreement is reached, the French may insist it be formalized in an extremely comprehensive, precisely worded contract.

DRESS ETIQUETTE - Business dress is understated and stylish.

- Men should wear dark-colored, conservative business suits for the initial meeting. How you dress later is largely dependent upon the personality of the company with which you are conducting business.

- Women should wear either business suits or elegant dresses in soft colors.

- The French like the finer things in life, so wear good quality accessories.

BUSINESS CARDS - Business cards are exchanged after the initial introductions without formal ritual.

- Have the other side of your business card translated into French. Although not a business necessity, it demonstrates an attention to detail that will be appreciated.

- Include any advanced academic degrees on your business card.

- French business cards are often a bit larger than in many other countries.

REGISTER AGS BELGRADE DOO Niški Autoput 17 11000 Belgrade +381(0)11/2712-575 www.ags-worldwide-movers.com

ARCELOR DISTRIBUCIJA Milutina Milankovića 25B 11000 Belgrade +381(0)11/313-31-35 www.arcelordistribucija. co.yu

AGROBAZA/ GROUPE AXEREAL Đorđa Jovanovića br.2 21000 Novi Sad +381(0) 21/53-22-12

AREVA T&D Gračanička 1 11000 Belgrade +381(0)11/218-01-50 www.areva.com

AIR FRANCE BEOGRAD Knez Mihailova 30/II 11000 Belgrade +381(0)11/328-79-08 www.airfrance.com AIR LIQUIDE Palmotićeva 12 11000 Belgrade +381(0)11/2200 131 www.airliquide.com ALFA DIGITAL Radnicka 5a 11000 Belgrade +381(0)11/3051-600 www.alfadigital.co.yu

ARHITEKT AGENCIJA Bulevar Mihajla Pupina 63 11000 Belgrade +381(0)11/30-18-269 www.agencijaarhitekt.com DTP TERASSEMENT Aljehinova 3/20 11000 Belgrade www.bouygues.com COFACE Bulevar Oslobodjenja 111 11000 Belgrade +381(0)11/397-60-51 www.coface.rs

ALSTOM Gračanička 1 11000 Belgrade +381(0)11/2185-310 www.alstom.com

COMITE OLYMPIQUE DE SERBIE Generala Vasića 5 11040 Belgrade +381(0)11/3671-575 www.oks.org.rs

ALCATEL LUCENT Omladinskih brigada 88 11000 Belgrade + 381(0)11/22-88-690 www.alcatel-lucent.com

CREDIT AGRICOLE Milentija Popovića 5a/VI 11000 Belgrade +381(0)11/33-05-802 www.creditagricole.rs

ANSON PARTNERS Knez Mihailova 42 11000 Belgrade +381(0)11/218-9195 www.ansonpartners.com

CA LIFE Milentija Popovica 5a/VI 11000 Belgrade +381(0)11/33-05-810 www.creditagricole.rs

DANONE ADRIATIC Bulevar Avnoja 67/7 11000 Belgrade +381(0)11/301-7583 www.danone-adriatic.com

FINDOMESTIC BANKA AD Kosovska 10 11000 Belgrade +381(0)11/33-31-733 www.findomestic.rs

DANOS AND ASSOCIATES Vladimira Popovića 6 11000 Belgrade +381(0)11/2600-603 www.danos.rs

FREYSSINET BALKANS Partizanski odredi 15/2 Skopje, Makedonija +389 2 311 85 49 www.freyssinet.com

DELTA M GROUP Milentija Popovica 7b 11000 Belgrade +381(0)11/20-12-219 www.deltayu.com

GIDE LOYRETTE NOUEL Andrićev venac 2/III 11000 Belgrade +381(0)11/30-24-900 www.gide.com

DU PONT SRB Omladinskih brigada 88 11000 Belgrade +381(0)11/20-90-585 www.dupont.com

GLOBAL PRESS D.O.O. Žorža Klemansoa 24 11000 Belgrade +381(0)11/276-4538 www.globalpress.rs

ELSYS EASTERN EUROPE Omladinskih Brigada 88 – B1500 11000 Belgrade +381(0)11/31-15-252 www.elsys-eastern.com

HEINEKEN Omladinskih brigada 90 b 11000 Belgrade +381(0)11/3538-611

EURO GARDI GROUP Rumenačka 17 21000 Novi Sad +381(0)21/ 51-23-11

HYATT REGENCY BEOGRAD Milentija Popovića 5 11000 Belgrade +381(0)11/301-1102 www.belgrade.regency. hyatt.com

EUTELSAT Braće Baruha 9 11000 Belgrade +381(0)11/21-85-344

IDR & PARTNERS DOO Krunska 85 11000 Belgrade +381(0)11/2453-458

FARMER & SPAIC Topličin Venac 11 11000 Belgrade +381(0)11/32888-50 www.farmer-spaic.co.rs

IMLEK AD Maršala Birjuzova 41 11000 Belgrade +381(0)11/3772-413 www.imlek.rs

2009 / Guide to French-Serbian Chamber Of Commerce 33

REGISTER HIT AUTO Staro sajmište 29 11000 Belgrade +381(0)11/20-18-000 www.hitauto.co.rs KARANOVIC & NIKOLIC Lepenička 7 11000 Belgrade +381(0)11/3094-200 www.karanovic-nikolic.co.rs KPMG DOO BEOGRAD Kraljice Natalije 11 11000 Belgrade +381(0)11/2050-571 www.kpmg.rs LAFARGE BFC AD Trg BFC 1 21300 Beočin +381(0)21/87-41-01 www.lafarge.com LEGRAND Djordja Vajferta 36 11000 Belgrade +381(0)11/2453-936 www.legrandelectric.co.rs LOHR Bečejski put 31 24300 Bačka Topola +381(0)24/712-777 www.lohr.fr L’OREAL BALKAN DOO Bulevar Zorana Đinđića 64A 11000 Belgrade +381(0)11/22-05-900 www.loreal.com MSS STAFFING SERVICES Ilije Garašanina 22 11000 Belgrade +381(0)11/32-31-559 www.mss.co.rs

MSS STAFFING SERVICES Ilije Garašanina 22 11000 Belgrade +381(0)11/30-37-582 www.mss.co.rs MLEKOPRODUKT AD Temišvarski drum 24 23000 Zrenjanin +381(0)23/525-577 www.mlekoprodukt.com NOVKOL AD Surčinski put 1k 11000 Belgrade +381(0)11/260-79-79 www.novkol.co.rs PERNOD RICARD Bul. Oslobodjenja 211 11000 Belgrade +381(0)11/3091-517 www.pernod-ricard.com PRICEWATERHOUSE COOPERS Omladinskih brigada 88a 11000 Belgrade +381(0)11/330-2100 www.pwc.com PUBLICIS Gospodar Jovanova 2 11000 Belgrade +381(0)11/2180-533 www.publicis.com PUPIN TELECOM BATAJNIČKI PUT 23 11000 Belgrade +381(0)11/3070-516 www.pupintelecom.co.rs RENAULT NISSAN SRBIJA DOO Omladinskih Brigada 88 11000 Belgrade

34 Guide to French-Serbian Chamber Of Commerce / 2009

+381(0)11/21-78-187 www.renault.rs SAINT GOBAIN Vladimira Popovića 40/III 11000 Belgrade +381(0)11/22-82-444 www.saint-gobain.com SANOFI AVENTIS DOO Vladimira Popovića 40/IV 11000 Belgrade +381(0)11/21-20-541 www.sanofi-aventis.com SAFEGE GROUPE SUEZ Djušina 2 11000 Belgrade 0032479947323 SCHNEIDER ELECTRIC Milutina Milankovića 7d 11000 Belgrade +381(0)11/3773-100 www.schneider-electric.com SERVIER Bulevar Zorana Djindjića 87/2 11000 Belgrade +381(0)11/30-17-790 www.servier.com SLADARA MALTINEX AD Industrijska Zona Bb 21400 Bačka Palanka +381(0)21/752-910 www.soufflet.com SOCIETE GENERALE BANKA SRBIJA Bulevar Zorana Đinđića 50 a/b 11000 Belgrade +381(0)11/222-0-235 www.societegenerale.rs

STREIT JUCIT DOO Kralja Petra I 156 22300 Nova Pazova +381(0)22/33-12-99 www.groupe-streit.com TIGAR AD Nikole Pašića 213 18300 Pirot +381(0)10/313-121 www.tigar.com TELEKOMUNIKACIJE RACUNARI I SERVISI Moše Pijade 7 A 11130 Kaludjerica +381(0)11/312-9751 www.trservices.fr VEOLIA TRANSPORT Zrenjaninski put 86 M 11000 Belgrade +381(0)11/3317-517 veolia-transport.info XPRO DOO Baje Pivljanina 53a 11000 Belgrade +381 (0)11/36-30-200 www.xpro.rs WILHELM & CO Velislava Vulovića 15 11000 Belgrade 32 4 97 40 40 96 www.wilco.be MEMBRES NONCOTISANTS DU CLUB D’AFFAIRES FRANCOSERBE AMBASSADE DE FRANCE Zmaj Jovina 11 11000 Belgrade +381(0)11/302-36-20 www.missioneco.org/serbie