Slovenia 2010 by CorD Magazine

Slovenian Business In Serbia

Natural Business Partners July 2010

2010 - Slovenian Business In Serbia / 1

2 / Slovenian Business In Serbia - 2010

2010 - Slovenian Business In Serbia / 3

Natural Business Partners

SLOVENIAN BUSINESS IN SERBIA - 2010

IN FAVOUR OF EVEN BETTER RELATIONS

by JADRANKA ŠTURM KOCIJAN, Acting Charge d’Affaires at the Slovenian Embassy to Serbia

EDITOR IN CHIEF Tatjana Ostojić, t.ostojic@cma.rs ASSISTANT EDITORS Philomena O’Brien, p.obrien@aim.rs Vesna Milinković, v.milinkovic@aim.rs ART DIRECTOR Tamara Ivljanin, t.ivljanin@cma.rs ART DIRECTOR’S ASSISTANT Ilija Petrović, i.petrovic@aim.rs EDITORIAL CONTRIBUTORS Ana Stojanović, Vesna Milinković

EXCELLENT ECONOMIC RELATIONS - SLOBODAN

TRANSLATORS Snežana Bjelotomić, Boraja Obradović, Tibor Strak

ŠEŠUM, Economic Counsellor, Embassy of the Republic of Slovenia in Belgrade

PROJECT MANAGERS Vesna Vukajlović, v.vukajlovic@aim.rs; Marija Savić, m.savic@aim.rs; Jelica Lepori, j.lepori@aim.rs

PHOTOS Slobodan Jotić

GENERAL MANAGER Ivan Novčić, i.novcic@cma.rs FINANCIAL DIRECTOR Ana Besedić, a.besedic@cma.rs EDITORIAL MANAGER Tanja Banković, t.bankovic@cma.rs PRINTING Rotografika d.o.o. Segedinski put 72, Subotica

GREEN ECONOMY FOR NEW INVESTORS - BOJAN ĐURIĆ,

CAPITAL - VESNA ARSIĆ, State Secretary in Charge of Foreign Economic Relations in the Ministry of the Economy and Regional Development of the Republic of Serbia

EXTENSIVE INCENTIVES

RAJKO MARIĆ, President of the Business Club of Slovenia and Vojvodina

RELIABILITY IS CRUCIAL

by SIEPA

ROBERT VUGA, Director of Freight Transport Slovenske Železnice

THE FUTURE LIES IN REGIONAL COOPERATION - VLADIMIR

KRAVČUK, President of the Slovenian Business Club

AT THE VERY TOP

DUŠAN STANKOV, Managing Director of NLB Leasing

INVESTMENTS FROM SLOVENIA TOTAL 1.7 BILLION EURO

AT THE HEART OF EUROPE

50 YEARS OF EXPERIENCE

CRISIS PROVIDES OPPORTUNITY

Facts and Figures

Corporate

24 26

PLACE FOR PARTNERS

BUSINESS EXCELLENCE

AN EFFECTIVE BANK - Corporate

DMITAR POLOVINA, Deputy President of the Slovenian Business Club

IN SERBIA - MAKS BASTL, Director of Maksim Group

State Secretary of the Ministry of Environmental Protection and Spatial Planning

TRUST AS WORKING

FDI Foreign Direct Investment – Slovenia “Slovenian Business in Serbia 2010” published by: alliance international media in association with Slovenian Embassy in Belgrade and Slovenian Business Club in Serbia Special thanks to Slobodan Šešum, Economic Counsellor, Embassy of the Republic of Slovenia in Belgrade alliance international media Kneginje Zorke 11b, 11000 Belgrade, Serbia Phone: +(381 11) 308 99 77, 308 99 88 Fascimile: +(381 11) 244 81 27

CONTENTS

Professor Dr DANICA PURG, President of the IEDC, Bled School of Management

CHARMING CULTURE AND RICH HISTORY

History and Culture

DANICA ZORIN MIJOSEK, Owner and Director of Afrodita Cosmeti cs Company

ENOUGH ROOM TO IMPROVE COOPERATION - Economic

Collaboration

THE BIGGEST INVESTMENT

4 / Slovenian Business In Serbia - 2010

WHERE THE MEDITERRANEAN MEETS THE ALPS - Tourism THE SLOVENIAN BUSINESS CLUB

IN FAVOUR OF EVEN BETTER RELATIONS Jadranka ŠTURM KOCIJAN Acting Charge d’Aﬀaires at the Slovenian Embassy to Serbia

t is my great honour and pleasure to welcome you at the beginning of this special CorD edition entirely dedicated to economic relations between Slovenia and Serbia. The relations between the two countries are excellent and traditionally friendly, not only on the economic level, but also on the political and cultural one. Slovenia is one of the biggest investors in Serbia. Economic relations between Slovenia and Serbia have been developing rapidly and have always been of high quality, but, last year, the negative effects of the global economic downturn spoiled that to a certain degree. If we take into account several parameters, then this economic crisis is nearing its end, and what makes us happy is that most Slovenian companies have begun to show interest in investing in Serbia again. The Slovenian companies that are already operational in Serbia have nothing but positive things to say about their experiences in Serbia. By investing in Serbia, Slovenian companies are creating new jobs, which means that both countries are benefitting. Slovenia has been providing constant support to the EU enlarging to include the West Balkan countries. We also feel that the next enlargement process should not be needlessly long or delayed. The road towards the EU is not an easy one by any means, and Slovenia is ready to help with its acquired knowledge.

Joining the EU is a long and exhausting process, economically, politically and socially. Our companies have already travelled that road and adjusted to EU standards and norms, so Slovenia is in a position to convey its know-how to Serbia

The Slovenian companies that are already operational in Serbia have nothing but positive things to say about their experiences in Serbia in this respect too. At the same time, Slovenia wants Serbian companies to invest more on the Slovenian market hence raising existing cooperation to an even higher level. I do think that there are still plenty of opportunities for the two countries to cooperate, primarily in tourism and agriculture. I am also confident that the good economic collaboration that we have had so far will become even better once Serbia embarks on pre-accession negotiations with the EU. In Slovenia’s experience, the accession period was a very important one in terms of new FDIs, and I believe that Serbia will share the same destiny.

2010 - Slovenian Business In Serbia / 5

INTERVIEW SLOBODAN ŠEŠUM, ECONOMIC COUNSELLOR, EMBASSY OF THE REPUBLIC OF SLOVENIA IN BELGRADE

EXCELLENT ECONOMIC When it comes to Slovenian imports, the same rules apply as in other EU countries, hence, I am quite confident that once Serbian exports to the EU grow, the same will happen with the exports to Slovenia

By Tatjana Ostojić

n 26th May, 2010, Slovenian and Serbian business people held bilateral talks in Ljubljana, while the Serbian Prime Minister, Mirko Cvetković met with his Slovenian counterpart, Borut Pahor. After the meeting, Mr. Pahor said that Slovenia wanted “all regional countries to successfully conclude the process of accession to the EU.” We talk with Slobodan Šešum, Economic Counsellor at the Embassy of the Republic of Slovenia in Belgrade.

n What can Slovenia do to assist Serbia in the process of accession to the EU? - The relations between Slovenia and Serbia are very good, quite friendly and dynamic. One of the most important recent visits was that of the Prime Minister Cvetković to Slovenia. In 2009, there were over 15 ministerial meetings. That would not have hap-

pened if our cooperation hadn’t yielded concrete results. As always, Slovenia will continue providing visible support to Serbia’s reforms and accession to the EU. I would like to mention some of the more obvious examples of Slovenia helping Serbia on its European integration path – the first one happened during the Slovenian presidency to the EU in the first half of 2008 when Serbia signed the Stabilisation and Association Agreement (SAA) and was given also a road map for visa liberalisation. Furthermore, fol-

Slovenia has been transferring its know-how on a regular basis with the end goal of Serbia joining the EU as soon as possible 6 / Slovenian Business In Serbia - 2010

lowing the Slovenian proposal, this process was completed on 19th December 2009. Slovenia is helping Serbia with the transfer of experiences and knowledge from the time when Slovenia was going through the same process. We can say that we have vast experience in implementing European legislation, writing projects that are given EU funding and filling in the candidacy questionnaire. Slovenia is also ready to do ratify the Stabilisation and Association Agreement with Serbia. I would like to remind you of the agreement concluded between the governments of Slovenia and Serbia that stipulates expert assistance in the area of European integrations. Slovenia has been transferring its know-how on a regular basis with the end goal of Serbia joining the EU as soon as possible. In 2009, Serbia received 1.3 million euro worth of Slovenian development aid, which included expert and technical assistance in building up administration capacities

MIC RELATIONS ply with the Succession Agreement, i.e. its Annex G. This problematic set of laws was the basis for the 2008 privatisation of the companies that n On that occasion, it was said that the are owned by Slovenian entities. The relations between the two countries were Slovenian government has also warned good and friendly, both on the political about Serbian privatisation laws being and economic level. What aspects of this in breach of the Succession Agreement. relationship could be further improved? In late November 2008, Serbian au- As I’ve mentioned before, the relations are thorities adopted the Act on Protection good and friendly, since there are no open of Property of Companies with issues between our countries. What still Headquarters in the former Socialist Federal needs to be resolved is the property of the Republic of Yugoslavia. Initially, the act stipformer Yugoslav Republics. We do hope that ulated a 90-day- deadline for Serbian compaprogress will be made in solving this issue nies to conclude agreements on the resolution already in 2010. Slovenia and Serbia are of property issues with their Slovenian coundealing with the problems in an imprompterparts. This deadline was extended on sevtu manner. It is in both countries’ interest for eral occasions, and the last time, it was exthese relations to develop even further, both tended to cover the period from 31 December on the political and economic level, since 2009 to 30 June 2010. This makes it possible that is the only way we can go forward, be for Slovenian companies to submit a suppleprosperous and ensure the safe operations of mented application and required documentaour companies. tion for the restitution of Slovenian property in the Republic of Serbia and to reach an n At the Ljubljana meeting, Mr. Pahor agreement by 30 September, 2010. insisted that high officials from both The main difference between Slovenia countries meet as soon as possible in orand Serbia lies in the fact that, in Slovenia, der to provide a permanent solution to the privatisation of state-owned property the issue of assets that the two countries ended back in the mid 90’s, while, in Serbia, have. When do you expect these probprivatisation is pending. If we are talking lems to be resolved and which problems about problems associated with the properare considered the priority? ty of Slovenian companies in Serbia, which - When the Slovenian and Serbian PMs met has been transformed during the privatisain Ljubljana, on 26 May 2010, both sides tion process in Serbia, then it is worth menshowed an interest in organising a meeting tioning that we are actually talking about the apropos the implementation of Annex G of right to state-owned property or the right to the Succession Agreement. Serbia adopted a utilise that property. Only the companies, set of privatisation laws in 2008 which was i.e. the holders of these rights, dispose of the not to Slovenia’s liking since it did not comrelevant data, includSerbian eXport prodUCtS ing the data contained Serbia already exports a wide range of products and I do believe that in land books and othSerbian exports to Slovenia will become even bigger. As Serbia aper official records. The proaches EU membership and harmonises its legislation with that of Republic of Slovenia the EU’s internal market, this will result in higher Serbia’s export to is not a party in court Slovenia. Serbia has a lot of untapped potential and I am confident proceedings, because that Serbia’s export to Slovenia will increase. There are quite a few opthere have been no portunities in sectors like food processing and agriculture. lawsuits filed. and institutions in Serbia during the country’s EU integration process.

2010 - Slovenian Business In Serbia / 7

“I can tell you from our experience that when the volume of trade exchange with the EU grew faster, the closer we were to EU membership. I see no reason why the same would not be applicable to Serbia” n The most distinguishing features of the economic relationship between the two countries are not only a substantial trade exchange volume, but also a foreign trade deficit on the Serbian side. Is it possible to balance this out? - I am sure that it is entirely possible. In 2007, the trade exchange volume exceeded a billion euro, as it did in 2008. In 2009, that volume was somewhat reduced due to the economic crisis, but there is a very noticeable increase in Serbian exports to Slovenia. Anyhow, most of the Slovenian companies that have invested in Serbia are export-orientated, so regardless of which third countries Slovenia exports too, the fact that it does export from Serbia definitely improves Serbia’s payment balance. As the competitiveness of the Serbian economy grows, an increasing number of Slovenian companies that operate in Serbia will buy the necessary materials in Serbia and there won’t be a need to import them, which again is beneficial for the Serbian payment balance. When it comes to Slovenian imports, the same rules apply as

in other EU countries, hence, I am quite confident that once Serbian exports to the EU grow, the same will happen with the exports to Slovenia. I can tell you from our experience that when the volume of trade exchange with the EU grew faster, the closer we were to EU membership. I see no reason why the same would not be applicable to Serbia.

Ministry instead of the Ministry of Economy, economic counsellors have been given brand new tasks. One of these tasks is to promote Slovenian potentials in the countries that have invested very little in Slovenia, with the aim of changing that trend. That’s also why I have been touring the municipalities in Serbia and presenting Slovenia’s potentials to local businessmen. We are investing joint efforts in trying to pinpoint which areas the two countries can cooperate in even more. So far, I have been to Novi Sad, Pećinci, Leskovac, Ruma, Sremska Mitrovica and Šid. When I meet with Serbian companies, I listen intently to their needs and about

In 2009, Serbia received 1.3 million euro worth of Slovenian development aid, which included expert and technical assistance in building up administration capacities and institutions in Serbia during the country’s EU integration process n At the recent meeting of the Mixed Committee for Trade and Economic Cooperation between Serbia and Slovenia, it was said that Serbian investments in Slovenia were almost negligible. What is the reason for that, bearing in mind that Serbian companies tried to invest in Slovenia but to no avail? - The cumulative value of foreign investments in Slovenia so far stands at 11 billion euro. That is why it is very difficult to say that Slovenia is not open for foreign investors. I’m afraid I don’t have the right answer to the question why Serbian companies haven’t invested more in Slovenia so far. With new policy and the reorganisation of economic diplomacy in Slovenia, which is now under the auspices of the Foreign

the problems they faced when attempting to invest in Slovenia. I also present the work done be the Public Agency of the Republic of Slovenia for Entrepreneurship and Foreign Investments (“Javna agencija Republike Slovenije za podjetništvo in tuje investicije”, JAPTI) and other relevant institutions like the Slovenian Chamber of Commerce and Foreign Ministry’s Directorate for Economic Diplomacy and Development Cooperation. Serbia could also use Slovenia as a spring board for the EU market. Slovenia will always welcome Serbian investors. n On the other hand, we have Slovenian investments in Serbia which are quite substantial. Is the interest shown 8 / Slovenian Business In Serbia - 2010

by Slovenian companies for investing in Serbia declining? - No, definitely not. As you have said, Slovenian investments in Serbia are quite substantial. One third of all Slovenian investments end up in Serbia. According to our information, there are close to 1,500 companies currently registered in Serbia. It is quite significant that these companies operate in different economic branches, and that 108 of them employ 50 and more workers. I would also like to mention two Slovenian business clubs, namely the oldest and the biggest Slovenian Business Club, which exists already a decade and the Business Club of Slovenia and Vojvodina which was established last year and has had its membership growing constantly since. n What experiences have Slovenian businessmen had doing business here, and what are the main reasons for their dissatisfaction? - There aren’t many problems, and their percentage is quite low. The fact that so many Slovenian companies have invested in Serbia shows that they are satisfied with being here and that they are spreading the good reputation that Serbia has. Most of the problems are just temporary and are mainly a product of misunderstanding. The Embassy has excellent relations with Serbian institutions, including the specialised ones like SIEPA, VIP, the Serbian Chamber of Commerce and Serbian ministries, as well as anybody who can assist foreign investors. The problems are quickly resolved through regular contacts. n To what extent are Serbia and Slovenia competitors when it comes to attracting foreign investments? - I think that Serbia and Slovenia are not competitors in terms of attracting foreign investments. Each state is specific in a way. Serbia has more options when it comes to helping foreign investments, which does not apply to the EU states. Serbia has signed free trade agreements with several states which provides a foreign investor with the opportunity to export products that it manufactures in Serbia to the market of nearly a billion consumers. Also, there have been talks between Serbian and Slovenian companies about jointly accessing third markets. n

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2010 - Slovenian Business In Serbia / 9

INTERVIEW VESNA ARSIĆ, STATE SECRETARY IN CHARGE OF FOREIGN ECONOMIC RELATIONS IN THE MINISTRY OF ECONOMY AND REGIONAL DEVELOPMENT OF THE REPUBLIC OF SERBIA

TRUST AS WORKING

CAPITAL The trading deficit with Slovenia, which has been perennially on the Serbian side, was significantly reduced by over 50% in 2008, while in 2009, despite it being a crisis year, the deficit declined even further

By Tatjana OSTOJIĆ

“I

n order to illustrate economic relations between Serbia and Slovenia, I would like to mention a statement given by the Prime Minister Mirko Cvetković to Serbian and Slovenian businessmen at the Business Forum in Slovenia which took place on 26th May this year. The statement was along the lines of the trust established between Slovenian and Serbian business communities is a great asset that needs to be jointly invested in the economic activities of both countries.” says Vesna Arsić, State Secretary in Charge of Foreign Economic Relations in the Ministry of Economy and Regional Development of the Republic of Serbia in an interview for this special edition.

n Following this forum, what is your view of economic relations between the two countries?

- I would comment that these ‘assets’ mentioned by the Prime Minister, for the most part, have already been invested in economic activities, and the best illustration of this is the information that, in the period from 2003 to 2008, foreign trade exchange grew from 300 to 800 million euro. On the other side, Slovenia did invest a significant amount of money in the Serbian economy, i.e. 1.7 billion euro. Even the Economic Forum in Ljubljana, with over 50 Serbian and 100 Slovenian businessmen participating, confirmed that, despite the global economic downturn, the trade cooperation between the two countries remains to be successful and that interest is not lessening. This is why I view the economic cooperation between Slovenia and Serbia as the crucial feature of future bilateral relations. n The Slovenian Prime Minister, Borut Pahor has been insisting all along that officials from both countries meet as soon as possible in order to provide a solution to the unresolved issue of the assets owned by Slovenian and Serbian companies. What assets are these? - Borut Pahor was talking primarily about the property that Slovenian companies have 10 / Slovenian Business In Serbia - 2010

in Serbia which pertains to Annex G of the ‘Agreement on the Succession Issues in the Former Federal Socialist Republic of Yugoslavia’. The validity period of ‘The Act on Protection of Company Property Located on the Territory of ex-Yugoslav Republics’ has been extended three times and the third extension expires in less than a month, i.e. on the 30th of June this year. Serbia did hand back several companies to Slovenia, but there was no reciprocity. High level representatives from Serbia and Slovenia will meet soon in order to resolve this complex issue in line with the Agreement on Succession, signed by both countries. n The trade exchange between the two countries was somewhat reduced last year due to the economic crisis, but this year it is recording growth. What are your expectations for the remainder of this year? - The decline in trade exchange started in late 2008 and was a direct result of the global economic downturn, but it was even more pronounced last year, when it stood at 572.4 million euro, which is one third less than in 2008 (764.4 million euro). In the first quarter of this year, the overall trade exchange between Serbia and Slovenia grew, especially in the area of Serbian exports and we expect this trend to continue until the end of 2010.

This is a result of timely measures and activities carried out by the Serbian government with the aim of reducing the negative effects of the crisis, but also efforts that the government invested in changing the Serbian economyâ&#x20AC;&#x2122;s structure, which used to be focused only on the domestic market, into an exportorientated economy. n Do you expect the trading deficit with Slovenia to be curtailed and what has been done in order to achieve that? - The trading deficit with Slovenia, which has been perennially on the Serbian side, was significantly reduced by over 50% in 2008, while in 2009, despite it being a crisis year, the deficit declined even further. Such positive tendencies have also continued this year, judging by the results accomplished in the first quarter. The government will continue implementing its activities and measures with the aim of improving the Serbian business environment. Our plan is to invest over 1.5 billion euro in transport, railway and energy infrastructure this year, and, in that way, to provide an additional stimulus to the economy. Also, in accordance with the agreement reached with the IMF, we are not going to have a fixed foreign currency exchange rate, but rather a floating one. Indisputably, the dinar depreciating against the euro does benefit exports, and it leads to the decline of the foreign trade deficit. Also, in order to make trade exchange more balanced and attract more foreign investment, the Ministry of the Economy and Regional Development, as a ministry that is in charge of economic diplomacy, has sent 28 economic advisors to our diplomatic and consular offices abroad, and one will be stationed in Ljubljana. Among other things, they are going to assist our business people with entering foreign markets and expanding their businesses on those markets. They

Our investments in Slovenia are quite modest and mainly relate to the Belgrade company, ComTrade which bought Hermes Softlab from Maribor, thus creating one of the largest IT companies in CSE Europe will also help foreign companies with establishing contacts with the relevant Serbian enterprises.

n What aspect of economic cooperation between the two countries has the potential to grow? - Although Slovenian companies are one of the biggest and most frequent investors in Serbia, and are represented in most areas of the economy, there are several areas of economic cooperation that could be improved upon. One of the most promising investment opportunities pertains to investing in Serbian production with the end goal of exporting to a third country; espeSloVenia aS an inVeStMent deStination cially bearing in mind that Serbia has signed As an EU member, Slovenia provides equal market conditions to all free trade agreements business people, including those from Serbia, although it would be really beneficial for the state to provide direct financial incentives too, with Russia, Belarus and in addition to the already demonstrated investor support. For examTurkey. I can mention ple, in 2010 and 2011, the country will provide 14-million-euro worth Gorenje as a good exof grants in order to co-finance investment projects. In 2010, 6.5 milample of this. The comlion euro will be available, while, in 2011, the amount will be eight milpany exports some of its lion euro. In late March this year, the Slovenian government launched products manufactured a competition for the allocation of grants. in Serbia, to Russia and 2010 - Slovenian Business In Serbia / 11

it recently announced that it would continue investing in production facilities here and expand the product range in its factories based in Valjevo and Stara Pazova. On the multi-lateral level, the ratification of the Stabilization and Association Agreement with the EU, the CEFTA and recently signed EFTA provide similar opportunities. In addition there are quite a few opportunities when it comes to Slovenian and Serbian companies jointly investing with the aim of transferring knowhow and improving the technical and technological foundation of the domestic economy. Also, opportunities lie in areas such as cooperation between SMEs with building their capacities so that they can become suppliers of large multi-national companies. An excellent example of this is the cooperation between the Serbian and Slovenian car and wood processing clusters. Also, it is quite possible to significantly advance cooperation by creating a joint strategy in areas where the state simply needs to be present such as in transport infrastructure, energy (the South Stream project), construction of regional gas storage and the Constanza-Trieste oil pipeline. n You and director general of the Directorate for Economic Diplomacy and Development Cooperation in the Slovenian Foreign Ministry, Vladimir GaspariÄ? signed a protocol at the meeting of the Mixed Commission for Trade and Economic Cooperation between Serbia and Slovenia, which took place in mid-May. What does the protocol contain? - The protocol mostly contains information on various activities and recommendations that we gave at the meeting which are going to be implemented in the following period in areas such as finance, agriculture, transportation, mining, energy and tourism. In line with the protocol, our Ministry of Finance is going to provide our Slovenian counterparts with information on the reciprocity of VAT returns. When it comes to agriculture, both sides will try to provide a timely resolution of issues concerning agricultural and food product exchange. In the transport sector, we agreed to maximise activities on border crossings in order for trains not to wait too long, which, again, will result in a higher competitiveness of the railway sector. In the areas of mining and energy, we have exchanged information about certain energy

ing to a third country. Their domestic market is highly competitive due to goods from the European Union. However, once the crisis subsides and our economy continues to recover, which expected in the coming period, I anticipate that the Serbian market will become too small for some of our companies and that they will consider expanding to other markets, including the Slovenian one.

projects bearing in mind that the Slovenian side had expressed interest in investing in this area, while the Serbian side is interested in cooperating in the area of sustainable development in mining and energy. When it comes to tourism, we have agreed that the two ministries of the economy will set up a tourism task force in order to transfer their know-how and experiences in applying for EU funds. In addition to the aforementioned, the protocol contains details about the next, third meeting of the Mixed Committee that will take place in Ljubljana in 2011. n It was mentioned that Slovenian investments in Serbia in 2009 amounted to 1.7 billion euro and that there were almost 1,500 Slovenian companies operating in Serbia. What is the statistical data for Serbian companies operating in Slovenia? - Our investments in Slovenia are quite modest and mainly relate to the Belgrade company, ComTrade which bought Hermes Softlab from Maribor, thus creating one of the largest IT companies in Central and South-Eastern Europe. This was a 40-million-euro investment that will create annual revenue in the region of 300 million euro. The company has 1,600 employees and branch offices in 14 countries. There is also our detergent producer, Beohemija Inhem from Zrenjanin, which bought the Sloveniabased company, Šampionka for six million euro in 2008. Beohemija plans to invest 10 million euro by 2011. n Is the lack of substantial Serbian investments in Slovenia an issue stemming from the overall relations between the two countries, or maybe Serbian businessmen are not actually ready to make serious investments, or maybe it is due to the economic downturn? When do you expect Serbian businesses to make significant investments in Slovenia? - I don’t agree with you that the lack of substantial Serbian investments in Slovenia is an issue stemming from the overall relations between the two countries, especially not in the last two years. But, if we are talking about the relatively modest Serbian investment in neighbouring countries, with the exception of the Maxi supermarket chain, we often forget to mention that our economy is not internationally focused enough, and this applies

Although Slovenian companies are one of the biggest and most frequent investors in Serbia, and are represented in most areas of the economy, there are several areas of economic cooperation that could be improved upon to exports and investments. This is the reason why we have only the two major investments which I’ve just mentioned. There have been certain problems in Slovenia with an insufficient number of land plots for Serbian retail facilities, but now in Ljubljana, local authorities have changed their position and investment plans have been halted due to the economic crisis. We are under the impression that Slovenia has altered its economic policy to a certain extent in order to become more open to foreign investments and whether our companies will be quick enough seize the opportunity to invest is going to depend mostly on their business performances and development plans. Realistically speaking, foreign companies already own most of the Serbian businesses whether we are talking about banking, insurance, retail, real estate and production, while the remaining domestic companies are seldom ready for international expansion. You have to bear in mind that even Slovenia, due to having higher operating costs than Serbia, is not that interesting as a production location for those companies aiming at export12 / Slovenian Business In Serbia - 2010

n Recently, Serbia has been given above average marks from the Organization for Economic Cooperation and Development (OECD) for having a favourable FDI environment. - The Investment Reform Index 2010 (IRI) is a comparative analysis and an assessment of the relevant regulation and the institutional capacities in the South-East European countries, which the OECD (i.e. its South-East Europe Investment Committee) has released for the second consecutive time. The first one was released in 2006. The study covers the following: the development level of investment policies, development of human capital, trade facilitation policies, access to finances, regulatory reforms and parliamentary procedures, tax policy analysis, investments in infrastructure and SME policies. The marks range from 1 to 5. The collected data is cross-sectioned with the opinions of independent experts and the private sector in each individual country in South-Eastern Europe, while using over 100 indicators. The latest international standards are applied in the analysis in order to assess investment policies and reforms in these countries. The mark that Serbia got for its investment policy and promotion is 3.8 which is the top mark in this category. Romania, Bulgaria, Croatia and Montenegro got the same marks. The OECD also reviewed Serbia’s investment politics (we got 4.0), investment promotion and incentives (3.9), transparency (3.7) and privatization and private-public partnerships (we got 3.1). We need to work on harmonising our education programmes with the real needs of Serbian companies. When it comes to tax policy, we need to assess what effects various taxes have at the sector and corporate level, especially if we are talking about SMEs. The area that we especially need to work on is providing better regulatory and institutional support to private-public partnerships. n

2010 - Slovenian Business In Serbia / 13

INTERVIEW VLADIMIR KRAVČUK, PRESIDENT OF THE SLOVENIAN BUSINESS CLUB

THE FUTURE LIES IN REG

Many Slovenian companies have participated in the privatisation process in Serbia. Unlike many bad examples of the process that are constantly being reported in the media, the privatisation processes that Slovenian companies have been involved with have been, if not very successful, then, at least, well executed

By Tatjana OSTOJIĆ

“T

here is a need for the Serbian and Slovenian business communities re-establish or even continue the cooperation arose back at the time of Slobodan Milošević’s regime, following the abolishment of the economic sanctions against Serbia,” says Vladimir Kravčuk, President of the Slovenian Business Club.

n Could you tell us something about the history of the Slovenian Business Club? - At the time when the two economies did not cooperate, and each of them developed in their own unique way – the Slovenian economy was focused more on a global scene while trying to adapt to a new situation where the economic ties with the former Yugoslav Republics had been broken off, while the Serbian economy, struggling under sanctions, turned more to the so-called ’grey’ even ’black’ economy. Still, the economies of Serbia and Slovenia have remained complementary, with many things connecting them like geographic proximity, a similar language, historical heritage and espe14 / Slovenian Business In Serbia - 2010

cially the fact that both economies originated from the same or very similar economic and legal systems. Taking into consideration all of these factors, the communication between the two countries’ economies was much easier. In such an environment, which still remains quite complex, my colleague from Ljubljana, Predrag Tašić and I have decided to form the Serbian – Slovenian Club in an effort to rally Serbian and Slovenian businessmen together. We have managed to do so, and several dozen Slovenian and Serbian businessmen met in the Belgrade hotel, Metropol, trying to re-establish contacts and do new business. We did the same in Ljubljana with similar success. With that idea in mind, following the democratic changes in Serbia, we set up the Slovenian Business Club in September 2002, as a voluntary, non-governmental, non-political and non-profit organisation, based on the freedom of association. The organisation has a status of a legal entity with all the rights, obligations and responsibilities which stem from relevant laws and the organisa-

EGIONAL COOPERATION tion’s Articles of Association. The basic idea of the Slovenian Business Club (SPK), which remains true to this day, is for the club to be the meeting place of the Slovenian business community, as well as Serbian businessmen interested in cooperating with Slovenian companies. In addition to that, our intention is not to replace or take upon ourselves the rights and obligations that the representative office of the Slovenian Chamber of Commerce had, or the association of the Slovenians abroad called Sava, or the role of the subsequently established by the Slovenian Embassy in Serbia. n Could you explain the principles on which the Slovenian Business Club functions? - We have been trying and succeeding, if I may add, in finding what actually the simplest formula of them all is. In order to illustrate this, let me just say that 150 Slovenian and Serbian companies are the club’s members, and that they have continued to pay their membership fees even in these difficult times. Also, I would like to mention that the club has been in existence for eight years, and that even our colleagues from Croatia and Italy found our ‘recipe’ of interest and have tried to apply it in practice with, unfortunately, mixed results. I’ve been to Bucharest recently and I have to say that I was very

Considering the global economic downturn, I think that it is very important that Slovenian companies have stayed in this area, each in their own way, and, depending on their problems, they are adapting to the current situation

pleased to see Mr. Predrag Jovičić, a Serbian businessman with long-standing business experience gained in Romania, who said that the Serbian – Romanian Business Club will be established soon, to mirror the Slovenian Business Club. Mr. Jovičić came to this idea while perusing through our website. The members of the Slovenian Business Club meet on the first Thursday of every month and, every time, we have a special guest appearance. Usually, that special guest comes from either the Serbian or Slovenian the FUtUre oF the SloVenian eConoMy government and he or The global economic downturn was a warning sign for us that the she usually talks about way we develop our economy and society is probably not the best economic issues. That way. Now, more than ever, we understand that we need to change old person is also knowlpremises that are the basis for economic and social development. We edgeable about the way need to regroup and have a fresh perspective of these development the government thinks directions, while taking into account a new philosophy and new valiand its standpoints on dation of certain development factors, as well as the results and quality of such development. The Slovenian economy needs to be aware of concrete issues like dethis too, and it needs to define new strategic development directions velopment, tax or ecobuilt on the new foundation. In the end, here is something that I think nomic policies. One it would be beneficial to think about when you adopt new directions. of the guests is also a The world renowned physician, Stephen Hawking said the following, representative of a cervia his speaking device mounted on his wheelchair: “Remember to tain company, who look at the start and not down at your feet.” Let’s remember this! presents the company, 2010 - Slovenian Business In Serbia / 15

its interests and plans for the Serbian market to the club members. Both the government and company members are then open to questions and exchanging opinions. After that, we talk about what are our next activities are going to be. In my personal opinion, I think that one of the most important events that brings the club members even closer together is a cocktail party that comes at the end of each meeting. Of course, the main reason for coming to the meeting is not to eat and drink, but being in other member’s company, exchanging information, which sometimes may seem irrelevant, as well as exchanging business cards and this is often exceptionally important. I realised just how important that is when I went to Sofia on business. Bear in mind that Slovenia doesn’t have an embassy there, or an economic representation of any sort or even a company. Simply put, you have nobody to turn to if you want to ask some questions - whether they pertain to the hotel accommodation or paying for certain services or taking a taxi, or to even more complex issues like the way business works there, what the payment conditions are, which banks are the most efficient

tween the two economies and, at the same time, demonstrates the richness and importance of these relations. Many Slovenian companies have participated in the privatisation process in Serbia. Unlike many bad examples of the process that are constantly being reported in the media, the privatisation processes that Slovenian companies have participated in were, if not very successful, then, at least, well executed. This provides us with an opportunity to continue being successful, and having trust and a good reputation which are the results of such a business culture.

etc. Now, imagine you have come to Belgrade from a very small place in Slovenia and you meet at least 200 or 250 of your colleagues here (and this is the usual number) and they all have the same problems as you do. I would also like to outline that our overall work and the organisation is run on a voluntary basis. n What are the practical results of such meetings? - It gives me a great pleasure to tell you that many of the facts that have been important for the development of both of our economies were probably first thought of and mentioned at our club meetings or the appearances of the club members. For example, we have pointed out the advantages of having a production facility in Serbia. In that respect, we drew attention to the fact that we should use the benefits of the free trade agreements that Serbia has signed with Russia and some of the former Soviet Union states, which facilitates custom-free export to these huge markets. This is certainly a huge comparative advantage and it needs to be seriously considered when making the decision where to have your production facility – whether in Slovenia or in Serbia. On the other hand, we should not forget the fact that Slovenia was the first country to make investments in what used to be a devastated Serbian economy, and it was Slovenia that brought new technologies, know-how and new formats of business behaviour here. I have to say that the Club has had great cooperation with the Slovenian Chamber of Commerce and JAPTI and that there are agreements in place that validate that cooperation. At the same time, I am very proud of the fact that we have had excellent cooperation with the Slovenian Embassy in Serbia, which employees, together with the Charge d’affaires, Jadranka Šturm Kocjan and the Consul General, Jožef Keček, actively participate in all of our meetings. We also have a good collaboration with the association of Slovenians living abroad called Sava, as well as a newly founded Business Club of Slovenia and Vojvodina which has a seat in Novi Sad. n Could you tell us something about business results accomplished by Slovenian companies in Serbia? - I can confidently say that the number of Slovenian companies that base or develop their operations in Serbia is not declining.

The basic idea of the Slovenian Business Club (SPK), which remains true to this day, is for the club to be the meeting place of the Slovenian business community, as well as Serbian businessmen interested in cooperating with Slovenian companies Considering the global economic downturn, I think that it is very important that Slovenian companies have stayed in this area, each in their own way, and, depending on their problems, they are adapting to the current situation. I think that Slovenian companies are sharing the same destiny as the Serbian companies, suffering from the same problems as their Serbian counterparts, in addition to having to deal with the problems in their domestic economy. The main problem that Slovenian companies here currently face is the problem that came following an (un)expected depreciation of the dinar against the euro. This certainly has a bearing on a company’s business results, especially those companies that did not have proper insurance against such risks. It is very important that we are aware of this problem when making strategic decision on whether to come into the Serbian market or not. Bearing that in mind and basing our decision on such evaluation, it is great to see that certain Slovenian companies are continuing to successfully develop in Serbia, and some of them, like Petrol, are even planning new investments here, an offensive of sorts on the Serbian, as well as regional markets. I would like also to mention one more fact which, in a way, validates the relations be16 / Slovenian Business In Serbia - 2010

n Are you talking about the future development of Slovenian companies on the Serbian market? - When I say “provides us with an opportunity to continue being successful“I meant being successful together in the region. If we think of that region as being made of the former Yugoslav Republics, with ’additions’ like Albania, Bulgaria, Romania, and even Greece and Turkey in the near future, I think that establishing such connections is what creates a future for joint operations on third markets. Regardless of the current economic crisis, which has been used as an excuse for many things, it is quite logical for the economies from this area to have a joint access to other markets and try to overcome the negative effects of the global crisis by having an economy of scale or making use of some other comparative advantage. I am confident that regional cooperation is not just a trite political term, i.e. a term that is acceptable only during the economic crisis. On the contrary, this should be a strategic direction of the regional economies regardless of the environment. Although, there are many objective reasons that speak in favour of the regional cooperation, and I’ve mentioned a few of them earlier, the main reason is surely knowing the economic environment here, as well as complementary regional economies. Also, it is worth mentioning the excellent knowledge of regional brands, so there is no need to spend huge amounts of money on advertising when reaching for new markets. If you mention Gorenje, for example, the consumers already know that these are high quality modern domestic appliances, with a service network and that the money you spend on one of their products is not spent in vain. n

INTERVIEW DUŠAN STANKOV, MANAGING DIRECTOR OF NLB LEASING

AT THE

VERY TOP

There are 17 leasing companies in Serbia which just shows that the country is quite an appealing market for financial leasing

LB Leasing Beograd is a part of the leasing companies, members of the NLB Group which are operational in all the republics of former Yugoslavia. In Slovenia, there are NLB Leasing Ljubljana, NLB Leasing Maribor and NLB Leasing Koper, in Croatia there is OPTIMA Leasing, in Bosnia and Herzegovina there is NLB Leasing Sarajevo, in Montenegro there is NLB Leasing Podgorica, in Macedonia there is NLB Lizing Skopje and, in Serbia, NLB Leasing Belgrade. In addition to the aforementioned countries, the company is also operational in Bulgaria. We are talking to Managing Director of NLB Leasing, Dušan Stankov.

group members operate, the Serbian market is handicapped in the respect of it being the only market where the financial leasing of real estate is not allowed. The law on financial leasing stipulates only leasing on movables, and a financial leasing company can only provide leasing services when it comes to movables. Still, despite these limitations that the regional markets don’t have, leasing in Serbia has been very quickly accepted as a form of financing and has developed pretty rapidly.

stopped paying their instalments all together which has resulted in the leasing company terminating contracts with them and repossessing the leased item. This percentage has grown significantly compared to late 2008. n Bearing in mind there are 17 leasing companies in Serbia, which sector do you anticipate will develop the most in the following three to four years? - Yes, there are 17 leasing companies in Serbia which just goes to show that the country is quite an appealing market for financial leasing. However, during this time of financial crisis, and I am not even going to dare guessing how long it will last, I think that the business operations of leasing companies are going to be more conservative by comparison to the period prior to the economic crisis.

n Did the global economic downturn cause restrictions in leasing, both in the case of legal entities and individuals? - The economic crisis did affect the financial leasing market in Serbia, I think that the business operations so in the last two years, of leasing companies are going to be more there has been a noticeaconservative by comparison to the period ble decline compared to n Last year, leasing users were predomithe period prior to 2008. prior to the economic crisis nantly legal entities. Will that trend conWhen it comes to legal tinue in the future too? entities, this fall is noticeable with the reduced n You operate in several different markets. - I agree. Last year, most of the leasing users investment in new production and transport If you compare Serbia to other countries, were legal entities, and I think that this tenequipment. It is also worth mentioning that how is leasing developing here? dency will continue this year too. The reason there have been quite a few so-called ‘sell and - NLB Leasing Belgrade is the first company for this lies in the fact that individuals are lease back arrangements’, where companies that NLB Leasing Ljubljana established outnot sure that they are going to have a steady sell their own equipment only to later re-buy side Slovenia and which, since its beginning in income flow in the future which of course it via a leasing arrangement. This is a clear in2003, has been at the very top of the Serbian means that they are uncertain as to whether dication of their lack of working capital. In releasing market. Of the 17 leasing companies they will be able to keep up with paying their gards to individuals, the number of car leasing that are operational in Serbia, NLB Leasing lease instalments. n arrangements has been reduced to a minimum. Belgrade takes the second or third place, In addition to affecting which, in percentages, ranges from 7% to 10% payMentS new business, the crisis of market share. Surrounded by very tough The economic crisis did have a negative effect on individuals and the is also being reflected competition, this is a significant success. NLB regular payment of their lease instalments. Before the crisis, they were in the number of lessees Leasing Belgrade is also one of the founders very conscientious with the payment of their instalments and delayed paying their instalments of the Association of Leasing Companies of payments consisted of less than one percent of the overall portfolio, late, and also the number Serbia (ALCS). Compared to the other marfor both legal entities and individuals. of lessees who have kets in which other individual NLB Leasing 2010 - Slovenian Business In Serbia / 17

INTERVIEW BOJAN ĐURIĆ, STATE SECRETARY OF THE MINISTRY OF ENVIRONMENTAL PROTECTION AND SPATIAL PLANNING

GREEN ECONOMY FOR

NEW INVESTORS

The construction industry is seen as a very significant industrial sector and its revival is considered a key element for overcoming the economic crisis

By Ana STOJANOVIĆ

or a long time foreign investors have been interested in investing in the ‘green economy’ says Bojan Đurić, State Secretary of the Ministry of Environmental Protection and Spatial Planning, for our Special edition. What are the plans for this Ministry over the coming period is just one of questions we ask Mr. Đurić.

n State incentives for the usage of renewable energy sources have been planned for this year, as well as the opening of a recycling plant for packaging waste and other waste processing. This represents the best way to promote the ‘green economy’. To what extent do you expect foreign investors to be interested in this business line and is the Slovenian economy interested in this industry? - For a long time foreign investors have been interested in investing in the ‘green economy’. In some cases this interest has progressed - to the first real actions and real investments. The Slovenian economy, as an

economic entity that has been investing great sums of money into the Serbian economy, is also one of the biggest prospective investors, especially where electronic waste recycling is concerned. n One of the EU requirements is to boost renewable energy usage to 20% by 2020 and also to reduce CO2 emissions by the same percentage, thus achieving efficient environmental protection. In your opinion, can Serbia learn from Slovenian experience in this area? - The experiences of the leading countries in the area of renewable energy resources exploitation are very important for Serbia, because our country has only just taken its first steps toward such energy use. By adopting acts for feed-in fees, (i.e. state incentives for producing energy from renewable sources), and by adopting the new law on planning and construction, favourable conditions have been made for Serbia to follow the example of those states that have been using renewable energy sources for a long time. The big18 / Slovenian Business In Serbia - 2010

gest area of interest has been seen in the construction of small scale hydro-electric plants, wind turbines and biomass exploitation for energy production purposes (especially in Vojvodina). n The new law on spatial planning foresees the issuance of building permits for agricultural land and forest-land as the area in which the ‘green economy’ will be practiced. When do you expect the issuing of such permits to begin? - The law on planning and construction solely regulates construction on building land. The only exception to this is construction on agricultural land, forest-land or waterpower land when the object being built is a smallscale hydro-electric plant, wind turbine, telecommunication and power lines or other infrastructural objects. Many permits for the mentioned objects have already been issued. n Capital investments in housing, infrastructure, roads, etc., are expected during the current year. Also a law supporting the construction industry is being drafted. Will these investments be financed by domestic or foreign funds, such as loans, investments, etc?

- The Serbian government has recently adopted a ‘draft law’ supporting the construction industry that will be delivered to the National Assembly by the emergency procedure and will come into force one day after being published. The construction industry is seen as a very significant industrial sector and its revival is considered as a key element in overcoming the economic crisis. Sources of funding will be allocated depending on the projects. It is important to stress that the state has already implemented measures to boost demand by investing in large infrastructural projects such as Corridor 10. n Stressing the importance of the adoption of the ‘Spatial Plan of the Republic of Serbia’, it is said that by 2012 each and every city, town, municipality and local self- government in the country will adopt the spatial plan in its territory. To what extent is this important to investors? - The draft of the ‘Spatial Plan of the Republic of Serbia’ has attracted much attention in the public and expert spheres, and also amongst high-level government officials. This indicates how important the document is. Local

For the first time since 1958, it is now legally possible to establish private property rights on urban building land

1958, it is now legally possible to establish private property rights on urban building land. This opportunity has so far been used by many citizens who have converted ‘rights of use’ to ‘rights of private ownership’ without any compensation.

self-governments must draw up their own spatial plans and we expect the whole country to be covered by adequate planning documents. A spatial plan with its numerous solutions concerning the environment, industry, infrastructure, renewable energy sources and similar issues opens new opportunities for domestic and foreign investors. It foresees consistent regional development and suggests suitable construction works in particular locations.

n It has been stressed that everyone must pay compensation for the conversion at real market prices and that there will be no exceptions. This decision causes a lot of doubt for investors who are speculating about how high this compensation may become in the present situation. - We expect our government to adopt two new legal acts its session on June 24th that will specifically regulate conditions and procedures for the conversion of ‘rights of use’ to ‘rights of private ownership’. This will allow the majority of entities who have the right to conversion with compensation to realise this right. Many requests have been submitted concerning this matter, but the recommendation is to wait until the new legal acts come into force, because they describe the procedure more precisely and also facilitate this realisation of rights. n

n An important important issue emphasised by foreign investors is that of land ownership and property rights. In what manner does the new ‘Law on Planning and Construction’ redefine this situation in order to meet the requirements of current and future investors? - Thanks to this law, for the first time since

2010 - Slovenian Business In Serbia / 19

INTERVIEW RAJKO MARIĆ, PRESIDENT OF THE BUSINESS CLUB OF SLOVENIA AND VOJVODINA

EXTENSIVE INCENTIVES The incentives that the Vojvodinian government, along with its provincial secretariats, provide to investors in order to increase their interest in investing are really extensive, in terms of employment incentives and other areas

By Ana STOJANOVIĆ

he Business Club of Slovenia and Vojvodina was established in February 2009, with the first official founding ceremony taking place in mid-2009. The Club’s headquarters are in Novi Sad. The Club’s goals and its operations are just two of the topics that we discussed with Rajko Marić, President of the Business Club of Slovenia and Vojvodina. n How would you define the club’s aims? - The aims of our club are geared toward establishing a joint cooperation with all institutions, as well as important social and political factors in Slovenia and Serbia, including Vojvodina, with the end goal of advancing business operations, cooperating with economic and business associations both here and abroad, finding and connecting domestic and foreign business partners, and protecting the interests of our members, including protection from unfair competition. n Have you changed your goals and operations since the club’s establishment? - We haven’t changed our goals, but we have tried to make them quite comprehensive and have been continuously engaged in accomplishing them. Our preference is for the accomplished goals to be of a high quality rather than great in number. n How many members does the club currently have and what activities have you carried out so far? - Bearing in mind that we became operational only last year and that this is a relatively young club, we can say that our membership is constantly growing. For example, 140 business people attended our meet-

ing in April in Novi Sad, which is certainly a success considering the size of Novi Sad. n Vojvodina has an exceptional investment potential judging by the number of companies that have invested in Vojvodina so far. How many Slovenian companies are currently operational in Vojvodina and what are their business results like? - There are currently over 30 Slovenian companies that operate in Vojvodina and employ close to 8,000 people. Slovenian companies tend to invest in a rather wide range of economic sectors and, when it comes to Vojvodina, they have gained a great reputation for their fair business practices and respecting workers’ rights. They have also demonstrated their business maturity and responsibility in fostering partnership relations. n What are the advantages and disadvantages of the Serbian market, and of doing business in Vojvodina as noted by Slovenian companies? - Serbia’s advantages have been recognised by potential investors and they include a favourable geographic position; CEFTA agreements with other neighbouring countries which stipulates export of goods to the

Cooperation The Vojvodina Investment Promotion Fund (VIP) has been supportive of our club since its very beginning and it continues to support us to this day, primarily when it comes to exchanging information and being constantly ready to resolve actual problems.

20 / Slovenian Business In Serbia - 2010

market consisting of 30 million people; the liberal importation of goods that are considered a stake on foreign investor’s part; investment incentives like exemption from income tax; tax loans and many others. With regards to disadvantages, and bearing in mind that I am a lawyer who is practicing business law, thus being well acquainted with actual problems, I have to say that there are certain difficulties with property issues, and partly with customs and tax laws which are the remnants of past times. Administration obstacles, which are always present, don’t pose that much of a problem, but are rather a technical glitch. The people who are in charge of administration issues are doing their utmost to eliminate these obstacles. What I would like to underline, and it does belong to this category, is the fact that quite a few companies that operate in Vojvodina have problems of a technical nature, since most banks and relevant authorities are located in Belgrade which makes business communication rather difficult.

I do think that now, at this time of global economic downturn, it is not really prudent to talk about great expansion and huge historical investments, but we do think that the way out of the crisis lies in SMEs and the links that SMEs in Slovenia and Vojvodina establish

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Our main customers are: Pfizer Belgium and Schering Plough Belgium. References in Serbia include: Hemofarm, Zorka Pharma, ParmaSwiss, Actavis, Pharmanova, ICN Galenika, HabitPharm, Ivancic i sinovi, Vinca Institute, Agency for Medicines of the Republic of Serbia, Torlak Institute, Ministry of Interior and many other companies.

n You have met with the top officials in Vojvodina’s government. What are the government’s plans for the coming period in terms of making Slovenian companies more interested in investing and re-investing in Serbia? - The incentives that the Vojvodinian government, along with its provincial secretariats, provide to investors in order to increase their interest in investing are really extensive, in terms of employment incentives and other areas. n What activities do you plan for next year? - The club has begun collecting information from municipalities which pertain to their available capacities and untapped resources which could be of interest to foreign investors. We have signed agreements on business and technical cooperation with several municipalities in Vojvodina. Also, it is our goal to open the door to Slovenia for business people in Vojvodina and Serbia, bearing in mind that Slovenian businessmen have already gained certain experiences in doing business with EU countries. We think that this can be very beneficial for our business people. n You are certainly the best person to tell us, from the perspective of a foreign investor, what needs to be done in order for the region, that is the ex-Yugoslav republics, to develop further? - Faster regional development is a result of activities carried out by every economic and business entity, as well as relevant authorities. I do think that now, at this time of global economic downturn, it is not really prudent to talk about great expansion and huge historical investments, but we do think that the way out of the crisis lies in SMEs and the links that SMEs in Slovenia and Vojvodina establish. n

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good ideas create future

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2010 - Slovenian Business In Serbia / 21

INTERVIEW ROBERT VUGA, DIRECTOR OF FREIGHT TRANSPORT SLOVENSKE Ĺ˝ELEZNICE

RELIABILITY IS

CRUCIAL

We also see our opportunity in the organisation of links between potential sources, that is, destinations of cargo, such as north-Adriatic ports, ports on the Danube River and land-based terminals By Ana STOJANOVIÄ&#x2020;

lovenian Railways would like to exploit all the potentials in cargo transportation that our presence in the cargo transportation service market can offer, Robert Vuga emphasises in an interview for our special issue.

n What are the strategic directions of Slovenian Railways? - We will secure our clients in the transportation service with even more quality i.e. punctuality, reliable transport and competitive prices, adjusted to the needs and expectations of our clients. Our strategic direction is to transfer from the transportation services market to the logistic services market, not only in Slovenia, but the whole region. Thus we will offer a wide range of services that will make us more competitive in the market of transportation and logistic services and thus secure the basis for further growth and development. n By what measure do you use logistics and experiences from the period of the Yugoslav Railways? - Familiarity and understanding the situation in the railway transportation market in the area of the states that belonged to Yugoslav Railways helps us a lot in our business. It is important to also understand other elements from the surrounding areas, such as communication, the political environment and culture. n You have defined your development as

a regional company. What does this really mean? - It means that our increased presence in the regional markets from the aspect of more active acquirement of cargo for transportation to Slovenia. We want to be present in the international market with those crucial clients who make the decisions about the means (railway, road) and the route of the transport. The fact is that we do almost 90% of transport in international traffic and we have problems in overcoming transport fluctuations. n To what degree is the Slovenian railway technologically compatible with the Croatian, Serbian and other railways in the former Yugoslav republics? - The railways are technologically harmonised in general, since there is a necessary regulation for these needs. In the end, the carts can go all over Europe and beyond. The states with the different widths of rail track are an exception. The system of electric traction, which varies among the operators in the area, could represent a problem. However, these differences are decreased and removed by multi-system locomotives. n What is the role of Corridor 10 in your plans? - We intend to dedicate a more important role to Corridor 10 than it has had so far. Considering the potential of the market, we wish to establish conditions that will enable 22 / Slovenian Business In Serbia - 2010

us to achieve the results on that transport route that we used to achieve when we lived in the same country. However, we must also have in mind that the competing Corridor 4, which connects the north and south, also exists and this sets a lot of competitive pressures on us, but also a great challenge. We must keep this in mind, not just us, but also other partners in the chain of railway transportation. That is one of the main reasons why we have signed an agreement together with the railways in Serbia, Croatia, Republika Srpska and the Bosnia-Herzegovina Federation. n How do you see the development of railway traffic in the region over the next ten years? - The process of the liberalisation of the railway transportation sector will have the largest influence on railway traffic in the region, as well as the arrival of foreign railway operators in this region. This is already happening, and it will become more prominent in the phase of negotiations of individual countries to join EU. Besides our own entrance to the market of transportation services by introducing direct cargo trains, other crucial European operators will take a step further and they will start activities to estab-

lish the possibilities to create their own production processes. We will direct ourselves even more towards clients and solutions of their problems. Here I refer to products, special demands, new and additional services and other things, which will always be complex. We will develop our own transportation function between terminals and ports together with our partners. We also see the opportunity in organising links between potential sources i.e. destinations of cargo, such as north-Adriatic ports, ports on the Danube River and land-based terminals. n All railway companies in the region are owned by states, many around the world have been privatised. How do you see the ownership structure of Slovenian Railways in the future? - Cargo transportation will eventually become the subject of privatisation in Slovenia too. According to current information and the experiences of other European railways, connecting passenger and cargo traffic and infrastructure into a firm holding is the most efficient form of organisation. The reorganisation of Slovenian Railways follows the same path, and that is also a part of the strategy which was presented by Slovenian Railways CEO Goran Brankovic, when he took over the position.

Every stop of cargo during transportation due to procedures of state institutions, such as customs or phyto-sanitary checks, or procedures involving the technology of the job such as break checks, change of locomotives etc, at the borders and other station, prolongs the time of transportation omy in every country, and also contributes a lot in its development. The globalisation process, with the transfer of production activities to other states and other continents, also goes in favour of transport organisations. Reliability of railway transport, foremost, along with the possible lower speeds than the rival of road transport is the advantage that our clients can consider as crucial when they make decisions about the mode of transport.

tiveness. There are instruments that will enable a considerable decrease of technological time. These instruments primarily refer to informing operator and state institutions about the arrival of the cargo and thus securing the possibility to prepare and organise the work in a timely manner. We think that the crucial potential for this will be in signing the appropriate treaties, in the technical and commercial areas of transportation.

n There is an opinion that excessive bureaucracy, administration and bad organisation significantly burdens the development of regional railway traffic. Do you see a way out of that situation? - Every stop of cargo during transportation due to procedures of state institutions, such as customs or phyto-sanitary checks, or procedures involving the technology of the job such as Cooperation with Croatian and Serbian Railways break checks, change of loCooperation with the Croatian and Serbian railways is very good, in both the production and commercial segment. The Croatian and Serbian markets are one comotives of the most important markets for us, since they represent more than 11% of all etc, at the bortransportation of Slovenian Railways. The share of transportation on Croatian ders and othand Serbian markets in the period between January and May in 2010 did not er station, change a lot compared to their share in 2009. Also, we increased transportaprolongs the tion by 17% in the same period, which is a good result, but we are still 15% betime of transhind our results from 2008. Transportation to Croatia and Serbia in the period portation and between January and May 2010, compared to the same period in 2009, also inthus decreascreased, which is a good signal for development of our future cooperation. es competi-

n In your opinion, what should the most rational form of cooperation between the railways of Slovenia and Serbia be, considering the existing and future trade exchange? - At this point, perhaps we should focus on establishing cooperation between all transportation companies in the region of former Yugoslavia instead of finding the most rational form of cooperation between Serbia and Slovenia. Also we should primarily focus on connecting trends between other big and crucial transportation companies in Europe, as well as necessary preparations for their market offensive to our region. Railways in the area of the western Balkans must connect in some form and cooperate, in the production, sales and development segment in order to be able to perform competitive services at this relatively large area and not give our clients the opportunity to see the competition. n

n How much can Slovenian Railways, together with regional railways, contribute to more efficient commerce in the region? - Primarily, everything is about competitiveness. No economy depends only on one method of transport. However it can contribute to greater efficiency since the development of infrastructure - of course railway infrastructure also - is the condition for success of the region. The railway system is certainly a great support and it represents the spine of the econ-

2010 - Slovenian Business In Serbia / 23

CORPORATE

NLB Bank is a member of the NLB Group, the largest Slovenian international financial organisation, primarily characterised by secure business practices

LB Bank a.d. Belgrade, with its headquarters located in the NLB Group administrative building, carries out business activities throughout the entire Serbian market, via a widespread network of offices, consisting of 16 departments and total of 69 branches. NLB Bank is a universal bank, which means that it offers a wide range of banking services tailored to the needs and expectations of both corporate and individual clients. Their business network is carefully designed to ensure a simple and efficient service for all their clients. Departments have a high degree of independence and provide a full spectrum of banking services for corporate, as well as for individual clients. Departments and branch offices are also connected into a business system which functions on a profit basis. Banking experts and other professionals within this bank work intensively on improv-

ing its position within the market, keeping in mind their responsibility to clients, shareholders, employees and the wider social community at all times. The mission of the bank is to seek an optimal balance and compromise between different goals imposed by modern business activities: (1) fast growth and stability, (2) mass transactions and an individual approach to clients, (3) compliance with standards and flexibility, (4) global and local markets, (5) profit and social responsibility. Following the policy of the Serbian government, the NLB Bank is a regular participant in numerous programs aimed at promoting the domestic economy in the financial sector, especially in the domain of

granting subsidised loans. NLB Bank is a member of the NLB Group, the largest Slovenian international financial organisation, primarily characterised by secure business practices. Always striving to be part of the community in which it carries out its business activities, NLB Bank is well known as a â&#x20AC;&#x2DC;friendâ&#x20AC;&#x2122; to basketball. In addition, NLB Bank, as a member of the NLB Group, acts as the general sponsor of the NLB baseball league. The bankâ&#x20AC;&#x2122;s employees strive to present the banking products of their company to existing and potential clients in a new and receptive way, by organising numerous interesting promotions, where citizens have the opportunity to get to know the bank a little better, as well as to ask questions about banking issues and opportunities. In this way, and in many others, the bank is constantly working on strengthening its relationship with its clients. n

NLB Bank is a universal bank, which means that it offers a wide range of banking services tailored to the needs and expectations of both corporate and individual clients 24 / Slovenian Business In Serbia - 2010

www.bubnjamo.info

AN EFFECTIVE BANK

Hot-dip galvanizing -

www.bubnjamo.info

the strongest weapon against corrosion

01 ISO 9 0 0 01 ISO 14 18 0 01 OHSeAauS bur itas v er

pr otec t i n g m e ta l an d env i ro n m en t Metal-cinkara d.o.o. Tel.: +381 35 471 947, 477 416 | Fax: +381 35 473 080 | E-mail: info@metalcinkara.co.rs | www.metalcinkara.co.rs 2010 - Slovenian Business In Serbia / 25

INTERVIEW DMITAR POLOVINA, DEPUTY PRESIDENT OF THE SLOVENIAN BUSINESS CLUB

PLACE FOR PARTNERS The experiences that Slovenian business people have had in the Serbian market are mostly positive ones, thanks to the fact that, in the last ten years, the state has created a business climate that is conducive to investment

urrently, the Slovenian Business Club has close to 200 members who come from diverse economic backgrounds â&#x20AC;&#x201C; industry, construction, telecommunications, IT, transport, tourism, services and others, with 15% of the members actually being Serbian companies. We talk with the Deputy President of the Slovenian Business Club, Dmitar Polovina about the way in which the club is organised and what its activities involve.

n What are the main activities of the Slovenian Business Club? - The main activities of the Slovenian Business Club involve organising monthly gatherings of the club members in hotels with which we have concluded cooperation contracts, with the aim of forming stronger ties between the club members through establishing direct contacts. Further to this, we also try to provide our members with timely information about most important things that are happening on the Serbian market, investment opportunities and to find potential business partners. At the beginning of each month, we put together a monthly report and a conjectured trend analysis for our members which encompasses the following information â&#x20AC;&#x201C; price fluctuation, inflation rates, overheads, goods exchange, industrial production and other related topics. Club members also get a daily e-bulletin about economic events in the region, and the club pays for these bulletins. We also get questions from our mem-

bers on a daily basis and we try to answer these questions to the best of our abilities thus helping our members with their operations on the Serbian market. Two times a year, we organise informal gatherings for our members, then there is a New Yearâ&#x20AC;&#x2122;s celebration at the Aviation Club and a summer party at the IN Hotel, which we use to sum up the results and talk about business cooperation. Also, we regularly attend various fairs, cultural and charity events and are very supportive of such events.

I do think that the Slovenian Chamber of Commerce should have kept its representative office open here

n Bearing in mind that Slovenia is one of the biggest investors in Serbia, do you think that the Slovenian Chamber of Commerce, of which you were the director, should have stayed here? - Yes, I do think that the Slovenian Chamber of Commerce should have kept its representative office open here. Nevertheless, now we have the Slovenian Business Club in its place. The club took on this responsibility and won over the trust of both Slovenian and Serbian business people. Of course, this was done with generous assistance from the Slovenian Chamber of Commerce and the Public Agency of the planS Republic of Slovenia for Entrepreneurship and The plans of the Slovenian Business Club are aimed at raising the quality of services that we offer to club members, spreading a positive Foreign Investments image about the club and getting more new members. In the coming (JAPTI). Slovenian period, i.e. starting in September, we are going to continue with our and Serbian businessmonthly gatherings, while, in December, we are going to have our anmen are aware of this nual gathering at the Aviation Club. Next year, we want to bring even and they view us as the more investors here and improve the business collaboration between legitimate heir to the Serbia and Slovenia. Chamber. 26 / Slovenian Business In Serbia - 2010

n What experiences do Slovenian businessmen have when it comes to investing in Serbia? What are the biggest obstacles they are facing, and what are the positive sides of investing in Serbia? - The experiences that Slovenian business people have had in the Serbian market are mostly positive ones, thanks to the fact that, in the last ten years, the state has created a business climate that is conducive to investment. A fast growth of Slovenian investments came in response to the incentives that the Serbian government provided for investors, as well as Slovenian businessmen carrying out a realistic evaluation of the business opportunities and risks on the Serbian market. Judging by the number of investments, Slovenia takes first place in Serbia, although it is not number one when it comes to the value of those investments, bearing in mind that the EU and Russia invest more money. There are many features that the Serbian market has which appeals to Slovenian investors. Primarily it is in a good geographic position, which makes it possible for Slovenian companies to export to other European countries, the Middle East and Asia. Also, Serbia has the lowest corporate income tax in Europe, an educated and quite inexpensive workforce, a stable inflation rate, simplified foreign trade regulations etc. The biggest obstacle is certainly a huge and bureaucratic legal system which is susceptible to corruption, as well as a lack of political predictability. In addition to that, foreign investors often object to the certification process, conformity rules, expensive procedures, tardiness, and overly complicated paper work needed for obtaining various permits or certificates. n

CORPORATE DAniCA Zorin miJoSEK, oWner and director oF aFrodita cosmetics company

BUSINESS EXCELLENCE The Serbian market is very interesting and important for us due to our good knowledge of the clientâ&#x20AC;&#x2122;s needs. Slovenian products are very well accepted in Serbia - people trust them and want them

he beginnings of Afrodita Cosmetics lie back in 1970, when Danica Zorin Mijosek, the founder and director of the company, embarked down the road of entrepreneurship. With the clearly established goals in therapy in Rogaska Slatina health resort, the prestigious health resort region with inexhaustible sources of mineral water, she opened her first cosmetics parlour, which still operates today with success. How this company works today, and what its plans are for the future were just some questions that we asked our guest Danica Zorin Mijosek, owner and director of the company. n Afrodita Cosmetics today operates in several foreign markets. When did you start doing business in the Serbian market? Afrodita Cosmetics was present in the Serbian market since the very beginning, in different business forms. With the intention of approaching our clients more closely and working more efficiently and faster, we founded our own Serbian company based in Belgrade in 2002. n What are the reasons for your presence in the Serbian market?

- The Serbian market is very interesting and important for us due to our good knowledge of the clientâ&#x20AC;&#x2122;s needs. Slovenian products are very well accepted in Serbia, people trust them and want them. In the end, Gorenje and Afrodita Cosmetics were still the most wanted Slovenian products in the market even during the war. We see a great business opportunity in the Serbian market, as this is a big market with a highly developed cosmetics culture. After all, it is known that Serbian women are one of the groups of women who care about themselves most in this part of Europe. We are present in the retail network of Serbian dealers, but also foreign dealers, such as Slovenian Mercator or German DM.

company occurred in the 1990s. How did you overcome these problems? - The early 1990s was a period of many changes and turmoil that had an influence on the Slovenian economy also. Due to the loss of the market in our former state, Afrodita Cosmetics was suddenly in a very bad position. By strategically redirecting to foreign markets, the company managed to keep all its employees and successfully continued on the road we set for ourselves. n How did the crisis disrupt you business plans last and this year? - We expected the crisis. The truth is that sales remained within last yearsâ&#x20AC;&#x2122; sales, which means we were unable to increase it much. However, since this was planned and expected, we did not have many difficulties. We are using our internal reserves. We mostly struggle with lack of payment. It is hard to plan new investments and develop new products and ideas. And you know how it is in the cosmetics industry, you always need to be trendy and clear with innovations, otherwise time and the competition will get ahead of you. We still manage to launch over twenty new products to the market every year. That is not so bad, right? n

n How do you assess the Serbian market today? - We assess Serbian market as one of large potential of sales and one of the most perspective markets in south-eastern Europe. Consumers often look for quality products, based on nature and good health. Since Afrodita Cosmetics is famous for its natural products, we believe that we will succeed and spread our retail network and thus increase sales. Unfortunately, the market has a low purchasing power, and it is a bit difficult to sell quality prodregional expansion ucts. However, we still believe in that market We intensively work to expand our market. So far, we are present in 15 countries all over the world. This year, we are more oriented towards and we plan larger inEU countries due to the easier and more open logistic and communivestments that will incation processes. We entered Austria earlier during the summer and crease our share on the we made an agreement with Germany. Plans for the Serbian market market in the future. n Afrodita Cosmetics is marking its 40th anniversary. One of the crossroads for the

are ready and we have great expectations from that market. After all, we do everything with precise planning. We believe that the future belongs to modern, entrepreneurially oriented companies that carefully plan and strategically direct their brand, but also stay faithful to the tradition, which took them to business excellence.

2010 - Slovenian Business In Serbia / 27

ECONOMIC COLLABORATION

ENOUGH ROOM TO IMPROVE COOPERATION The total goods exchange between Serbia and Slovenia in 2009 stood at 802.5 million USD which is 28.7% less compared to the year before

By Ana STOJANOVIĆ

s a foreign trade partner, Slovenia takes sixth place among the top trade export partners of Serbia, and eight place when it comes to imports, as data collected by the Slovenian Chamber of Commerce shows and the Serbian Chamber of Commerce confirms. The total goods exchange between Serbia and Slovenia in 2009 stood at 802.5 million USD which is 28.7% less compared to the year before. Serbia’s exports to Slovenia amounted to 345 million USD which is a 31.2% decline compared to the year before. Our country’s imports from Slovenia also fell by 26.5% compared to 2008 and amounted 457.5 million USD. The trade deficit in 2009 stood at 112.5 million USD. In relation to Q1 of 2010, the overall trade exchange totalled 190.2 million USD which is 12% higher than in the same period last year. Serbia exported 92.33 million worth of goods and services to Slovenia and this is a 35.7% jump. The imports from Slovenia dropped by 3.8% in relation to the same period last year and it stood at 97.9 million USD. The 2010 trade deficit so far is 5.6 million USD.

Trade exchange between Serbia and Slovenia in the period from 2002 to 2010 (in millions USD) Export

Growth in %

Import

Growth in %

Total

Growth in %

2002

81.0

194.4

194

275.5

-113.4

2003

93.1

243.0

336.1

-151.7

2004

163.6

337.0

500.5

-173.4

2005

196.2

285.3

-13

481.5

-3.8

-89.1

2006

255.2

30.1

476.5

67.1

731.7

51.9

-221.3

2007

411.3

61.2

696.7

46.2

1.108.0

51.4

-285.4

2008

501.3

21.9

624.2

-10.1

1.125.5

1.6

-122.9

2009

345.0

-31.2

457.5

-26.7

802.5

-28.7

-112.5

2009/3

68.02

2010/3

92.33

101.8 35.7

97.9

169.8 -3.8

28 / Slovenian Business In Serbia - 2010

190.2

Balance

-33.8 12.0

-5.6

the most important export and import goods in 2009

The following goods dominate Serbian exports to Slovenia – raw sunflower oil, seat parts, car parts and equipment, leather shoe tops, electricity. When it comes to imports, the goods that Serbia imported most from Slovenia were – medicines (retail), washing machines, paper in rolls or sheets, cooling and freezing device parts.

the most important export and import goods in Q1 oF 2010

The following goods dominate Serbian exports to Slovenia – primary aluminium alloys, car parts and equipment, seat parts, rectangular products made of aluminium alloy (6 mm in size), copper debris. Serbia imported the following products from Slovenia – washing machines (over 6 kg capacity), electricity, medicine (retail), paper in rolls and sheets, cooling and freezing device party, cookers (1.82%) etc.

The 25 biggest Slovenian companies have established 286 companies in 53 countries

problems With economic collaboration

There are several problems in the economic collaboration with Slovenia, and the Serbian Chamber of Commerce names the following as the most significant – Serbian goods are not available enough or easily marketed in the Slovenian market primarily in Slovenia’s superand hyper-markets, occasionally the Slovenian public gets incorrect information about Serbian products, Slovenian and Serbian state organisations and inspection services are not cooperating enough, there is a huge amount of administration when it comes to registering pharmaceutical products and herbicides, and there are large costs associated with obtaining the relevant paperwork.

opportunities For advancing economic cooperation

The Serbian Chamber of Commerce says that, in order to increase the sale of Serbian goods on the Slovenian market, it would be a good idea to open a Serbian hyper-market in Slovenia. One of the areas in which the two countries cooperate is the energy sector, which is in both countries’ interest. There are quite a few opportunities to cooperate in transport infrastructure bearing in mind that important transport routes run through Serbia. The two countries also have opportunities to co-

sloVenian inVestments in serBia Slovenian investments in Serbia are quite substantial and are at the very top when it comes to the number of investments made. If we are talking about their overall value, the country also has a ranking. According to official Slovenian statistical data (as at March 30th, 2010), Slovenia has invested a total of 1,715 million euro in Serbia so far (including the investments that the country has made in Kosovo and Metohija and Montenegro by 2005). In Serbia, there are a total of 1,500 Slovenian companies and representative offices, with 500 of them being presently active.

operate in the IT sector, environmental protection, tourism and some of the more traditional economic branches. Slovenia and Serbia have expressed interest in working together on the implementation of joint projects and applying for project funding with the EU.

contract and legal regulation

When Slovenia joined the European Union, the agreements that the country previously had with Serbia and Montenegro were no longer valid due to the fact the country had to apply EU legislation. The intergovernmental agreements that are still in force are the following: the Agreement on Trade and Economic Cooperation, the Agreement on Protecting Investments and Avoiding Double Taxation, the Agreement on Road and Passenger Transport, the Agreement on Tourism, the Agreement on Health Issues, and the Agreement on Customs Issues which was signed on June 1st, 2007 but has still not been enforced due to the fact that the Slovenian side is yet to ratify it. The Social Welfare Agreement was signed on September 30th, 2009. Cooperation in the air traffic sector is also not regulated by a relevant agreement or a contract (there is an agreement that was initialled in October 2001,

2010 - Slovenian Business In Serbia / 29

but is still not signed). The Serbian national airline, JAT Airways flies four times a week on the Belgrade-Ljubljana-Belgrade route while the Slovenian airline, Adria Airways has seven flights a week on the Ljubljana-Priština-Ljubljana route. In addition to these regular flights, the Slovenian charter airline, Solinair, transports air mail five times a week (Ljubljana-Belgrade-Ljubljana). On November 14th, 2007, the Serbian Chamber of Commerce and its Slovenian counterpart signed a business agreement with the aim of establishing cooperation and advancing economic collaboration between the two countries in order to represent the interests of both chamber members and respective economies.

Foreign direct investments in Slovenia

According to official data from the Slovenian Central Bank, the total FDIs made in Slovenia, ending on March 12th, 2010, stood at 10,788 million euro. Austria is the number one investor in Slovenia with 5,171 million euro, followed by The Netherlands with 706 million euro, France with 773 million euro, Italy with 612 million euro, Germany

Serbian companies are not sufficiently present in Slovenia. ComTrade acquired the Slovenian IT company, Hermes for 40 million euro

with 531 million euro, Belgium with 396 million euro, Croatia with 296 million euro.

Slovenian foreign direct investments in other countries

According to unofficial data from the Slovenian Central Bank, ending March 12th, 2010, Slovenian companies have invested a to-

Biggest exporters and importers The biggest Serbian exporters are: The Kikinda Smelting Plant; Impol Seval from Sevojno; Victoria Oil from Šid; Dijamant from Zrenjanin; METAL RECIKLAŽA- Ruma; Gorenje - Valjevo; ELRAD SERBIA from Vlasotince; Zastava – Tapacirnica from Kragujevac; Gorenje Tiki from Stara Pazova; DAG – CO from Voganj; Kolpa from Zrenjanin; KOVIS BP from Bačka Palanka; HIP – PETROHEMIJA - Pančevo; Montavar Lola from Belgrade; Mersteel-Trgovina from Belgrade; U.S.STEEL – Smederevo; Liska from Babušnica; FAM Sečanj; Alpros trading from Belgrade; GRAH AUTOMOTIVE - Batočina; The Sevojno Copper Rolling Mill and others. The companies that imported mostly from Slovenia are the following: Gorenje, Merkur, Comes, Krka, JUB, Loher Elektro, Gen. Etoljve, The Kikinda Smelting Plant, Perutnina Ptuj; Gorenje Tiki, Henkel Merima, Strike Investments, Ringier (publishing), Impol Seval – Sevojno, Simpo, Hemofarm, Grand Prom and KOVIS BP.

30 / Slovenian Business In Serbia - 2010

tal of 6,010 million euro in other countries, namely – Serbia - around 1,715 million euro (including Slovenian investments in Kosovo and Metohija and Montenegro by 2005), the EU countries – 1,072 million euros (The Netherlands 182 million euro, Germany 220 million euro and Austria 151 million euro), Croatia – 1,187 million euro, Bosnia and Herzegovina 746 million euro etc. Only 2.5% Slovenian companies have made FDIs so far. Out of the total FDIs made, twenty five of the biggest Slovenian companies or 88.8% have invested a total of three billion euro abroad and created 23,616 new jobs. The three biggest Slovenian multi-national companies – Mercator, Gorenje and Krka – made 50% of the said FDIs, and the top five companies (including Droga Kolinska and Petrol) invested 68% of the total Slovenian FDIs. Most of the money was spent on processing capacities (54%) and retail facilities (25%). The 25 biggest Slovenian companies have established 286 companies in 53 countries. Most of the investments are made in Europe, i.e. in the West Balkan region.

Serbian investments in Slovenia

Serbian companies are not sufficiently present in Slovenia. ComTrade acquired the Slovenian IT company, Hermes for 40 million euro. The merger of these two companies resulted in the formation of a brand new enterprise that has 1,600 employees, annual revenues in the region of 300 million euro and branches in 14 foreign countries. ComTrade’s goal, in the next five years, is to become one of the biggest IT companies in West Europe. JAT has its own representative office in Ljubljana, while the Dallas Company from Novi Pazar has also set up a retail company in the Slovenian capital. This furniture maker sells its products via a Slovenian retail network they are happy with the results so far and are planning to open their own shops. Serbian passenger company, Last and its Slovenian counterpart have concluded an agreement on transporting passengers from Serbia to Slovenia and back. In addition to Last, Kruševac-based beverage producer, Rubin plans to open a branch in Ljubljana. The detergent manufacturer from Zrenjanin, Beohemija Inhem bought the Slovenian company, Šampionka for six million euro in 2008. Delta Real Estate and Slovenian company, Grep d.o.o. signed in 2008 a contract according to which Delta Real Estate is supposed to become the biggest co-investor in construction of the Stožice Sports Park. In addition to a stadium and a sports hall, the park will also have the Delta Planet shopping mall. By signing this contract, Delta Real Estate undertook to invest 242.5 million euro in building a facility that will stretch across 200,000 square metres. Bearing in mind that Delta still hasn’t paid the second instalment of 19 million euro, the implementation of the contract is uncertain. n

... sa nama se svet razvija

Petrol d.o.o. Beograd, Ulica Španskih boraca br. 24v, 11070 Novi Beograd, Srbija, 00 381 11 212 93 84 Direktor: mr. Aljoša Višnar e-mail: aljosa.visnar@petrol.si

INTERVIEW mAKS BASTl, director oF maKsim group

THE BIGGEST INVESTMENT IN SERBIA

“Serbia is very friendly to foreign investors and our experience is therefore very good. We believe in the potential of the Serbian market” By Ana STOJANOVIĆ

hrough its Serbian company MetalCinkara in Inđija, the Slovenian group Maksim, run by Maks Bastl, is making investments into the most cutting-edge hot-dip galvanising line in the Balkans. The galvanising plant worth EUR 21 million, which will start operating this July, represents one of the largest investments made by a Slovenian company in the Republic of Serbia to date.

The Maksim Group, headquartered in Celje, Slovenia, generally carries out three core programmes: hot-dip galvanising, the container program and steel constructions. The company’s development strategy for the period to 2015 provides for significant new investments including in the Serbian market.

technology in SE Europe is not new. The first steps had already been taken before the outbreak of the global financial crisis; and once the crisis was upon us we simply refused to let it sway our decision. Our belief in Serbia’s market potential was strong even when analysts identified it as a high-risk market.

n Few companies decide to make such large-scale investments during a ﬁnancial crisis. What are the reasons behind your decision? - In 2003 we formed a capital alliance with the company Metal from Ćuprija, which we bought in-full two years later. Having done that, we really entered the Serbian market proper, making a strategic decision for a longterm investment. Our decision to invest into the largest galvanising facility in the Balkans with the most cutting-edge hot-dip galvanising

n Where do you see the greatest potential of the Serbian market? - Analyses have clearly shown that the demand for hot-dip galvanising in the Serbian market is considerably higher than what the capacities here can provide. At the same time the existing hot-dip galvanising equipment does not meet the comprehensive needs of the market. By this we mean the size or dimensions of the hot-dip galvanising facility, which must correspond to the steel constructions that require galvanising. The facility we are investing in is

32 / Slovenian Business In Serbia - 2010

considerably larger than the existing facilities in Serbia. Metal-Cinkara in Inđija, which starts operating mid-year, will employ about 50 workers, and the number of jobs is to increase to 200 in the future. In this respect, however, it should be stressed that we are not cutting jobs in Slovenia, but endeavour to effect successful cooperation between both markets. n Which markets is Maksim currently present in? - Our container programme meets the needs of the entire Western Europe area, and we have also been making contacts in the United States. The Slovenian galvanising plant based in Celje supplies the markets in Austria, Italy and Croatia, while the two galvanising plants in Serbia – that is in Inđija and Ćuprija – cover the Serbian market, as well as Macedonia and Bosnia and Herzegovina. We see the Serbian market as the starting point from which we aim to extend our operations further east, all the way to Russia. This means we are going to extend our galvanising plant network so that plants complement each other in terms of the size of the steel constructions that will be galvanized there.

n Which future ingoals in serBia vestments in Serbia At the moment, the Maksim group employs 250 people - 180 in should be protected Slovenia and 70 in Serbia. Due to the crisis, our development prowith hot dip galvajection for the period to 2015 takes into consideration lower growth nising? rates than those achieved in the past. In the next five years we expect - Serbia is about to unto double our volume of business, to 60 million euro. Half of this is to be realised in Slovenia and the other half in Serbia. While we aren’t dertake a comprehenplanning any future increases in staffing in Slovenia, we expect the sive rehabilitation of number of employees in Serbia to double. And we will continue to ininfrastructure. A great vest in the key to our success - good and well satisfied employees. deal will be invested in roads, railways, steel constructions in the energy sector and more. ical position, as there has never been a galToday, all power transmission towers and vanising facility there. Another major factor some motorway equipment have already was the fact that the municipality very warmbeen galvanized. In the future, hot-dip gally welcomes foreign investments. vanising should also be used to protect the railways and other infrastructure. There are n What is your attitude toward the local also other functional constructions, such as environment? fencing and roof overhangs. - We consistently aim to integrate into the environment in which we operate. If possible, we support local community projects, as we see n Is Serbia friendly toward foreign inthis as the only way to create a kind of symvestors? What’s your experience been? biosis with the community’s residents. Metal- Serbia is very friendly to foreign investors Cinkara also sponsors the Serbian national and our experience is therefore very good. At basketball team, in the desire to help Serbia the same time I would also like to commend continue to achieve excellence in the sport for the Inđija municipality. Our decision to go which it is recognised worldwide. there was based on its favourable geographn

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2010 - Slovenian Business In Serbia / 33

FDI

INVESTMENTS FROM SLOVENIA

TOTAL 1.7 BILLION EUROS In the ﬁeld of direct investments, it is necessary to intensify the promotion of possibilities for starting production in Serbia for the purpose of exports By SIEPA

inFloW oF investments The total value of direct investments from Slovenia between 2001 and 2009 amounts to

734.6 million dollars, placing this country in seventh place amongst the biggest foreign investors in Serbia. As opposed to official statistics from the National Bank of Serbia, according to data from the Bank of Slovenia, the cumulative value of investments from

Largest investors (2001-2009.) Company Mercator Merkur Cimos Droga Kolinska Lesnina Engrotuš NLB Gorenje Impol Maksim Perutnina Ptuj Triglav Trimo Grah Automotive JUB Sava Osiguranje NKB Maribor Montovar As Osiguranje Belinka Tim Laško Intereuropa TPV i Agrošumadija Helios

Activity Retail Retail Automobile Food Retail Retail Banking Electronic Metal Metal Food Insurance Construction Automobile Chemical Insurance Banking Machine Insurance Chemical Metal Logistics Automobile Chemical

Type of investment Greenfield and takeover Greenfield Privatisation Takeover Greenfield Greenfield Privatisation Greenfield Privatisation Greenfield and takeover Takeover Takeover Greenfield Greenfield Greenfield Takeover Refinancing Privatisation Greenfield Takeover Takeover Greenfield Greenfield Takeover

Amount of investment (in millions of EUR) 300 110 100 100 100 60 55 50 35 25 20 20 18 16 15 12 10 5 5 5 5 4 3 2

Source: SIEPA Note: Due to the non-existence of official data about the amount of investments of individual companies, the above-mentioned data originates from research carried out by SIEPA, and includes both realised and planned investments. Although SIEP aims to provide the most reliable information, the Agency does not accept responsibility for possible errors in data.

34 / Slovenian Business In Serbia - 2010

Mercator, novi Sad Slovenia, by the year 2009, reached 1.7 billion euros. Slovenian companies have invested into a large number of economic branches, from trade, banking and insurance, to automobiles, construction, chemicals, machinery and the metal industry. There are around 1500 business entities with Slovenian capital registered with the Serbian business registers agency, although the number of active companies is about 500. Around 200 Slovenian businessmen in Serbia are part of the Slovenian Business Club, founded in 2002. This club represents the biggest and one of the most active associations of foreign companies in our country. The club realises its activities through regular monthly meetings, where top representatives of state institutions come to speak.

improving cooperation In the field of direct investments, it is necessary to intensify the promotion of possibilities for starting production in Serbia for the purpose of export, bearing in mind the significantly lower business expenses in our country, as well as the existence of tax-free access to a market of over a billion people. In this context, one should point out the example of Gorenje company, which exports some of its products to the Russian market, and has recently announced that it will be continuing to invest into production projects in Serbia and the expansion of its production pro-

Net money investments (in thousands of USD) 2001.

2002.

2003.

2004.

2005.

2006.

2007.

2008.

2009.

11.254

9.561

29.036

15.706

183.563

201.241

92.856

112.189

48.569

Source: National Bank of Serbia

gram in factories located in Valjevo and Stara Pazova. As to the opposite direction, Serbian entrepreneurs should be informed about the current measures of the Slovenian government to attract foreign investments. The sum of 14.5 million euros in non-refundable funds will be set aside for this purpose during 2010 and 2011. During the recent meeting of the Mixed Commission for Trade and Economic Cooperation with Slovenia, the Slovenian side repeated its official invitation to Serbian companies to continue investing on the Slovenian market. Other forms of cooperation, where further improvement is possible, pertain to direct business connections between Serbian and Slovenian companies in the sector of small and medium enterprises. One of the most important projects is the cooperation of automobile clusters

During the recent meeting of the Mixed Commission for Trade and Economic Cooperation with Slovenia, the Slovenian side repeated its official invitation to Serbian companies to continue investing on the Slovenian market from the two countries, which took place during the previous years under the auspices of the United Nations Industrial Development Organization (UNIDO) and is to be continued in the following period. During the above-mentioned meeting of the Mixed Commission, the Slovenian side expressed its support for this project. Bilateral cooperation on a B2B basis can, at the same time, be intensified through the joint appearance of Slovenian and Serbian companies on tenders for projects in the European Union. Serbian companies would, for the time being, appear as subcontractors, while the attention of the

2010 - Slovenian Business In Serbia / 35

Slovenian companies should be drawn to the possibilities of employing domestic architectural design studios, project consultants and construction companies during the realisation of investment projects in our country. In the sector of tourism, cooperation could be intensified in the area of knowledge transfer, especially in relation to the construction of spa centres. The same is true in regard to activities such as recycling and environmental protection, where great potential for direct investments and transfer of technologies and know-how exists. n

FACTS & FIGURES

AT THE HEART OF EUROPE According to statistics, Slovenia’s main advantages in comparison to the European Monetary Union are a ILO unemployment rate and economic growth, while the main disadvantage is the account deﬁcit as a percentage of GDP

Port Koper

slovenia in brieF The Republic of Slovenia lies at the heart of Europe, where the Alps and the Mediterranean meet the Pannonian Plains and the mysterious Karst. In Slovenia, the sun shines approximately 2,000 hours per year, and there is plenty of snow in winter. The average temperatures are -2°C in January and 21°C in July. Green is the dominant colour. There are many woods and forests in Slovenia – covering more than half of the country – and numerous

preserved and protected plant and animal species. Mountains, lakes, waterfalls, forests, caves, hills, plains, rivers and the sea - you name it, they’ve got it. As a small picturesque country, Slovenia makes a great tourist destination. You can ski in the morning and surrender yourself to the luxury of the Adriatic Sea in the afternoon. The highest mountain is called Triglav - meaning “three-heads” - and it is 2864 metres high. The mountain is a true national symbol, featured on the national coat of arms and the flag. The country

The Adriatic port of Koper, near Trieste in Italy, serves as a principle port for Austrian and Hungarian exports and is essential for Czech and Slovak exports 36 / Slovenian Business In Serbia - 2010

is also known for its great wines and delicious traditional food.

the state The Republic of Slovenia is a parliamentary democratic republic that became an independent state after the disintegration of Yugoslavia in 1991. The present Constitution of the Republic of Slovenia was adopted on 23 December 1991, following the results of a plebiscite on the sovereignty and independence of Slovenia on 23 December 1990, when Slovenes overwhelmingly voted for independence. President of the Republic: Dr Danilo Türk (since December 2007) Prime Minister: Borut Pahor (SD)

(since 2008). Government: Prime Minister, 15 ministers, 3 ministers without a portfolio National Assembly: 90 deputies (88 elected representatives of parliamentary parties, and one representative each from the Italian and Hungarian national communities). National Council: 40 elected representatives of employers, employees, farmers, tradesmen and the self-employed, as well as from the non-economic sector and local interest groups.

slovenia in the World Slovenia strives for the preservation of its national identity and a simultaneous openness to the world. In international relations it advocates peaceful conflict resolution, stronger co-operation and trust and respect for human rights. Slovenia lies at the heart of one of Europe’s ethnic crossroads. The Republic of Slovenia bases its foreign policy on the fundamental principles of the constitutional system of the state and generally applicable principles of international law. It is a member of the European Union, NATO, the United Nations and many other international organizations.

nymity to a top country among the EU member states. It is proud of its rich industrial history, traditional openness to the world, rational economic policies, and enviable economic development. As a member of the European Union, Slovenia now has trade links primarily with Western Europe. It is known as a small, but reliable partner, with a rational way of doing things, and a highly educated labour force. Moreover, Slovenes are very proud to be known as a very hard-working nation. Slovenia is increasingly becoming a service economy. In the period 1995-2005, the structure of the Slovenian economy was marked by the growing importance of the service sector, which in 2005 created 63.4% of added val-

inFrastructure Slovenia’s infrastructure is relatively well developed, and the government is investing even more in it to take advantage of its geographic, trade, and cultural potential. There is a good transportation network, containing 19,586 kilometres (12,143 miles) of roads (1998), including good quality expressways. Construction of highways is a priority, with US$4 billion in funding for 700 kilometres (435 miles) of highways to be completed by 2000. There are three major airports. Upgrading rail links will cost US$2.5 billion, with priority given to the eastwest and northwest-southeast corridors. The Adriatic port of Koper, serves as a principle port for Austrian and Hungarian exports and is essential for Czech and Slovak exports.

economy Lying at a junction of natural trading routes, Slovenia is sometimes also referred to as the revolving door of Europe. It has been a crossroads, a huge gateway, since the Romans were marching around this region. In the last decade and a half, Slovenia has raised itself from ano-

ljubljana ue, an increase of three percentage points over 1995. A relatively high rate of added value is also created by the industrial sector (28.2% in 2005), the most important being manufacturing (24.6%). Agriculture, which declined considerably as an element in the economy, accounted for a mere 2.5% of added value (this was 4.2% in 1995). According to Maastricht’s criteria key elements in a macro-stability package are low inflation together with maintained price stability and a commitment to a low budget deficit. Macro-stability cannot be divorced from unemployment as well. Consequently macro-stability is an effective means of achieving sustained economic growth. According to statistics, Slovenia’s main advantages in compari2010 - Slovenian Business In Serbia / 37

son to European Monetary Union are ILO unemployment rate and economic growth, while the main disadvantage is the account deficit as a percentage of GDP.

Energy Despite the fact that Slovenia is completely dependent on the import of liquid and gas fuels, with 52.1 percent in 2008, the country’s energy dependency was 1.7 per cent below the EU-27 average of 53.8

percent and the reason for classifying Slovenia among the Member States with medium dependency. On the other hand, the use of liquid fuels has been increasing at fast pace, which means that Slovenia’s energy dependency is set to increase in the coming years. In 2008, the use of liquid fuels was up 16 per cent over the year before and the final use of oil products continues to be on the rise in Slovenia. The use of diesel fuel almost doubled in the last five years, which the office ascribes to the expansion of passenger transport and even more so of cargo road transport. Heating oil used by

household customers was also up in 2008 by 10 percent as the average temperatures in the first quarter of the year were two degrees centigrade lower than a year earlier and four degrees centigrade lower in April in comparison with April 2007. Slovenia covers 77 per cent of its needs for hard fuels through domestic production and almost all of its needs for energy from renewable sources. These two categories, however, account for a meagre nine percent of the final energy use in Slovenia. The share of electricity produced in Slovenia from renewable sources was 26 percent in 2008, 22 percent in 2007 and 29 percent in 2000. Power generated by hydro power plants still accounts for some 90 percent of power generated in Slovenia from renewable sources, and waste- and biogas-fired power plants are still rare. n

In the period 1995-2005, the structure of the Slovenian economy was marked by the growing importance of the service sector, which in 2005 created 63.4% of added value, an increase of three percentage points over 1995

THE FACTS REPUBLIC OF SLOVENIA State: Democratic Parliamentary Republic since 25 June 1991 Member of the European Union since 1 May 2004 Capital: Ljubljana, 260,000 inhabitants National flag: Horizontal stripes in white, blue and red with Slovenian coat of arms on its left upper side Coat of arms: Three six-pointed yellow stars are symbols of the Counts of Celje with Triglav as a symbol of Slovene-hood and underlying two wavy lines symbolising Slovenian rivers and the sea Anthem: The seventh stanza of Zdravljica, a poem by France Prešeren, set to music by Stanko Premrl State holidays: June 25 Statehood Day, December 26 Independence and Unity Day Official Language: Slovenian, in

some nationally mixed border areas also Italian and Hungarian Currency: EUR 1= 100 cents Phone dial code: +386 GEOGRAPHY Size: 20,273 km² Length of borders: 1,370 km: with Austria 318 km, with Italy 280 km, with Hungary 102 km, with Croatia 670 km Length of coastline: 46.6 km Neighbouring states: Austria, Italy, Hungary, Croatia Largest towns: Ljubljana (260,000), Maribor (108,600), Kranj (39,400), Celje (38,400) Highest mountain: Triglav 2,864 m Longest river: Sava 221 km Landscape: The territory of Slovenia is geographically divided into four basic types of landscape - Alpine in the north, Mediterranean in the south-

west, Dinaric in the south and Pannonian in the east. Climate: There are three different types of climate in Slovenia: continental in the central part, Alpine in the north-west and sub-Mediterranean along the coast and its hinterland. POPULATION Inhabitants: 2,032,362 (31 December 2008) Population density: 99.6 inhabitants per square kilometre Nationalities (2002 census): Slovenian 83%; Italian 0,1%; Hungarian 0,3%; Croat 1,8%; Serbian 2,0%; Muslim (including Bosniacs) 1,6%; others 2,2%; unknown: 8,9% Birth: On average 1.53 children per woman (2008) Life expectancy: 75.4 for men and 82.3 for women (2008) Urbanisation: Approximately

38 / Slovenian Business In Serbia - 2010

one third of the population live in towns with more than 10,000 inhabitants, the rest live in nearly six thousand smaller towns and villages. Religions: According to the 2002 census the most of population (58 %) are Catholics. Together there are 43 religious communities registered in Slovenia. Among the oldest is the Evangelical Church, most widely spread in the northeastern part of Slovenia. ECONOMY Macroeconomic indices for Slovenia in 2008 Real GDP growth (real growth rate in %): 3.5 GDP per capita in euros: 18,204 Rate of unemployment by ILO in %: 4.4 Labour productivity (real growth rate in %): 0.6 Inflation (annual average): 5.7

CORPORATE

50 YEARS’ OF

EXPERIENCE t

rimo Inženjering is a subsidiary of the Trimo Group which operates in 50 markets worldwide. Trimo’s lasting presence in Serbia is noted by several hundred buildings, with over 100 of these being significant representative projects. With more than 50 years’ experience in creating

(Certificate of conformity with EN 14509:2006). The CE mark places their products on the list for exports to EU countries. Trimo’s complete solutions would be incomplete if they failed to accept the practices, business processes and the highest of technology, which draws on 50 years of rich practical experience.

Trimo’s lasting presence in Serbia is noted by several hundred buildings, with over 100 of these being significant representative projects original and complete solutions for prefabricated steel buildings, roofs, facades, steel structures, containers and sound-insulation systems, Trimo has ventured successfully into the research and development of new products and the complete engineering of buildings, with remarkable results. They are one of the leading European producers of fire-proof roofing and façade systems and are the regional leaders in the field of prefabricated buildings. Their production and products (Trimoterm MW core, and P line by Trimo - PUR core) are in line with all the Serbian regulations, and they are of the highest European standards of quality in the industrial production of sandwich panels

They have their own architectural bureau and engineering department. Their complete solutions − from the idea to the fulfilment, and ‘turn-key’ construction at the client’s request - are available at all times. Additionally, they dispose of 36 hectares of construction-ready land (at the Šimanovci industrial zone), 25 kilometres from Belgrade on the E70 highway and 10 kilometres from the Nikola Tesla airport. These reasons, plus the wide range of buildings, and design and construction to the highest of international standards, make Trimo the ideal choice for clients who want their needs met costeffectively in a one-stop procedure. n 2010 - Slovenian Business In Serbia / 39

INTERVIEW proFESSor Dr. DAniCA purg, prESiDEnT oF THE iEDC-BlED SCHool oF mAnAgEmEnT

CRISIS PROVIDES

OPPORTUNITY “When we talk about the competitiveness of Serbian companies, which are capable of going abroad and being successful there, I ﬁnd the reason in the quality of their management staﬀ, foremost in the highest positions and in the area of marketing and business development”

By Ana STOJANOVIĆ

EDC-Bled School of Management is the most innovative international business school in Central and Eastern Europe with excellent ties to the business community in the region and with state-of-the-art facilities at Lake of Bled, the tourist pearl of Slovenia. Its mission is to advance the understanding and practice of management and to play a leading role in strengthening the competitive capabilities of enterprises in Europe. The school accepts 3,000 to 4,000 participants a year, and more than 80% of participants come from countries other than Slovenia. Located at the crossroads of trans-European routes, IEDC provides an ideal meeting place for the exchange of ideas and for the exploration of the best in management practices. The school offers a full portfolio of executive development programmes and customised programmes for companies, as well as MBA programmes in a variety of formats to fit the

needs of busy executives. IEDC’s MBA programmes are accredited by the Association of MBAs (AMBA). Its executive education programmes are widely recognised as among the best in Europe.

We really want to educate top staff as best as we can and set the quality standards in the area of management education in Serbia The work of the business school, as well as cooperation with Serbia, was the reason for talking with Professor Dr. Danica Purg, President of the IEDC-Bled School of Management. n How do you see Serbia today? - Serbia is a country I have been interested in for a long time, because I used to work in Belgrade in 1970s. That was my first em40 / Slovenian Business In Serbia - 2010

ployment after my graduation in Ljubljana and I finished my masters degree and doctorate there. Most of my friends are from Serbia and I visit them often, but I also often think about what should be done to increase Serbia’s development. Since I cooperate with the Serbian Association of Economists and several distinguished Serbian entrepreneurs, who send their managers to our school and visit us themselves at least once a year during our presidential forum, I am relatively well acquainted with the situation in Serbia. As a professor of management and president of IEDC-Bled School of Management I always consider problems through the perspective of a manager. When we talk about the competitiveness of Serbian companies, which are capable of going abroad and achieving success there, I think the reason for that lies in the quality of their managerial staff, foremost at the highest positions and in the area of marketing and business development. These companies constantly invest a lot in their person-

nel, who are aware that the crisis situation is really the situation that shows us how to find the way out of the crisis, and that is innovation, preservation of talent within the company and the search for new ways of doing business. Simply put, we can say that the most successful companies in the world, and also Serbia, turned the crisis into an opportunity. n How do you develop your cooperation with Serbia? - In our school, which is international in its character, we have 70% to 80% of participants from all over the world in every programme, however, a small number of managers come from Serbia and thus we decided to organise a special programme called the Advanced Management Programme (AMP) in Belgrade. We started the project last year and it continued this year too. The programme lasts for three weeks, in three different modules and each lasts for one week. Relatively young managers take part in it, and the ones who have already taken over greater responsibilities in their companies or plan to do so. We have been very successful with that programme and we intend to continue the programme next year. We really want to educate top staff as best as we can and set the quality standards in the area of management education in Serbia. By my opinion, the only negative thing about the AMP programme so far is that majority of

The IEDC-Bled School of Management

Located at the crossroads of trans-European routes, IEDC provides an ideal meeting place for the exchange of ideas and for the exploration of the best in management practices

people that take part in it come from the region, and an international network is very important for every businessman. Therefore we want to take the graduates of this programme to Bled and include them in some other top international programmes, so they are able to establish connections and spread their networks. I am glad that even Slovenian comPlans panies, such as The IEDC-Bled School of Management is not standing still during sumHalcom, Gorenje mer. They currently have a group of top managers from the largest insurand others, have ance company in the Netherlands, Eureko. The first module of the twostarted sending year post-graduate studies of management is in progress, where they their people to this have people from all over the world and even South Africa. The summer sort of education school for young managers has been active for ten years now. Then they and thus set the exwill take a small break, and then, in September, the largest event in the ample of good cosecond half of the year: Bled-Kopaonik South-East Europe Forum, menoperation.

tioned earlier, will take place. They hope that many participants from the whole region, and especially from Serbia, will take part in it as it will be a significant opportunity for learning and the socialising of leaders from Serbia, Slovenia and other countries of the region.

n We heard that you organise a special event in

2010 - Slovenian Business In Serbia / 41

cooperation with the Serbian Association of Economists? - This event that we will hold on September 16 to September 17, 2010 in Bled in cooperation with the Serbian Association of Economists is very important for the cooperation between Serbia and Slovenia, and regional cooperation also. It is the Bled-Kopaonik Managers Forum, which is called the Economic Future and Manager Challenges this year. Since we are a school of management, we will pay more attention to management. We have invited several extraordinary experts from all over the world, such as Hermann Simon, the author of the bestseller on the issue of getting out of the crisis, Luca Gatti, a famous professor of strategy and futurist from Italy, Erhard Busek, the manager of the Institute for the Danube Basin Region and Central Europe from Austria, and Miroslav Macur from the University in Geneva. All three of them will talk about the future of management in Europe and changes that will influence the challenges of leaders. We expect business and political leaders from Serbia, Slovenia, Croatia, Macedonia, Bulgaria, Albania, Turkey and other countries of the region, governors of national banks, general managers of famous companies and banks to take part in the forum, and together we will find ideas on how to answer and prepare for the challenges of recessions, crises and new possibilities. n

HISTORY AND CULTURE

CHARMING CULTURE AND All across Slovenia there are centuries-worth of history to be discovered and experienced By Vesna MILINKOVIĆ

his vibrant country is one of the ‘hottest’ European destinations thanks to its numerous museums, theatres, galleries and lively nightlife. Whether your idea of culture is to sit with a coffee and people-watch or to learn more about this amazing country through its galleries and museums; there are enough permanent exhibitions, events and things to see, to keep you busy for weeks. Throughout the whole of Slovenia there are galleries and exhibitions of Slovenian art, led by the National Gallery in Ljubljana. Museums are found in most of Slovenia’s historic towns and an unusual one is the war museum at Kobarid. Fought over for two and a half years, the Isonzo front ran through the Julian Alps separating Slovenia from Italy. The museum is a living memorial to this action. Across

Slovenia festivals and events take place year-round. From folklore to art, pop to opera, it’s one big party. Jazz artists from around the world head for Ljubljana every July for the oldest jazz festival in Europe, held in Plecnik’s open air theatre ‘Krizanke’.

historic cities

All across Slovenia there are centuries of history to be discovered and experienced. Slovenia’s oldest town is Ptuj. Widely known for the Kurentovanje Carnival, when traditional Slovenian carnival figures scare away the winter to make way for spring. It is also home to the country’s oldest wine cellar, dating back more than 750 years. Meanwhile, in western Slovenia, and presided over by a medieval castle, Skofja Loka hosts a series of summer cultural events called ‘Under Homan’s Linden Tree’ (Homan House, in the shade of Slovenia’s national tree, the linden tree, is the most popular meeting place in town). The town of Idrija is famed for its ‘bobbin lace’. Other attractions include Gewerkenegg Castle, the venue for a summer cultural festival, and Anthony’s Tunnel, the oldest part of an abandoned mercury mine still open to visitors. Thousands of visitors flock to Radovljica to visit the beekeeping museum to learn about Slovenia’s rich history of beekeeping and the unique art of painting humorous motifs on beehive panels.

architecture

Rest on the flight to Egypt by alToMonTE, national Gallery of Slovenia

Slovenia’s towns have many well-preserved buildings representing various styles of architecture dating from the 1100s onward. Fine examples of Romanesque architecture can be found throughout Slovenia, including the church at Sticna Abbey and Podsreda Castle. Architecture from the late Gothic period also survives. Many buildings in older sections of Slovenia’s towns are in the Italian Baroque style, particularly in Ljubljana. After a serious earthquake in 1895, extensive sec42 / Slovenian Business In Serbia - 2010

Ptuj Town Hall tions of Ljubljana were rebuilt in the Art Nouveau style. Throughout Slovenia the focus of town life revolves around the older city centres, squares, churches, and marketplaces.

music

Slovenia Music plays an important role in enriching the culture of the country. The music of Slovenia has been considerably influenced by the musical forms of other European countries like Austria and Germany. Contemporary Slovenian music features several world renowned musical bands. Folk music of Slovenia is commonly associated with a type of polka. The Avsenkin is a musical band of Slovenia who have popularised a specific type of Slovenian folk music not only in Slovenia but in other parts of the world. Their folk songs are a celebration of local life, that paint a lush picture of the Slovenian countryside. The soothing tunes and melody of their folk songs have captured many a hearts. The world of music in Slovenia has witnessed the growing phenomenal popularity of two music bands, Siddharta and Laibach. Several other musical composers and performers have contributed toward the development of Slovenian music. These musicians have also won international accolades. Mitja Vrhovnik Smrekar is a Slovenian musician who is making his mark in the field of theatre music. Aldo Kumar of Slovenia is yet another accomplished musician. The enthralling musical works of Vinko Globokar has garnered a wider European audience for Slovenian music.

AND RICH HISTORY literature

With the development of language, the country has witnessed a proliferation in literary works. The first such important work is the first printed book in the Slovenian language in 1551 and a translation of the Bible to Slovenian in 1584. This was chronologically the twelfth language in the world to have a Bible translated in its native language. Some of Slovenia’s greatest authors were poets France Prešeren (his song Zdravljica is Slovenian national anthem), Oton Župančič, Srečko Kosovel, Edvard Kocbek and Dane Zajc, as well as the writer and playwright Ivan Cankar (1876–1918). Boris Pahor, Evald Flisar, Drago Jančar, Alojz Rebula, Tomaž Šalamun and Aleš Debeljak are some of the leading names of contemporary Slovene literature.

history

Starting in the sixth century C.E., the area that is now Slovenia was perpetually invaded by the Avars, a Mongol tribe, who were in turn, driven out by the Slavs. In 623 C.E., chieftain Franko Samo created the first independent Slovene state, which covered an area from Lake Balaton, now located in Hungary, to the Mediterranean. This independent state persisted until the latter part of the eighth century when it was absorbed into the Frankish empire. In the tenth century, Slovenia fell under the control of the Holy Roman Empire and was reorganised as the duchy of Carantania by the Holy Roman Emperor Otto I (912– 973). With the exception of four years of rule by Napoleon (1809–1813), when, along with

Podsreda Castle

Statue of france Prešieren and Julia Croatia, it was a part of the Illyrian Provinces, Slovenia was a part of the Austrian Hapsburg Empire, from 1335 to 1918. In 1918, at the end of World War I, Slovenia joined with other Slavic groups to form the Kingdom of Serbs, Croats, and Slovenes. Renamed the Kingdom of Yugoslavia in 1929 by a Serbian monarch, Slovenia and its neighbouring Yugoslav states fell under Nazi Germany’s control in World War II. Communist partisans, under the leadership of Josip Broz Tito, fiercely resisted the German, Italian, and Hungarian occupation, leading to the establishment of a socialist Yugoslavia toward the end of the war. As a newly independent state, from 25 June 1991, Slovenia has sought economic stabilisation and governmental reorganisation, emphasising its central European heritage and its role as a bridge between eastern and western Europe. With its increased regional profile, including its status as a non-permanent member of the United Nations Security Council and as a charter member of the World Trade Organisation, Slovenia plays an important role in world politics considering its small size. n 2010 - Slovenian Business In Serbia / 43

WHERE

MEETS

Covering just over 20,000 square kilometres (7,722 square miles), Slovenia is a blend of mountains and natural parks, historical cities, extraordinary underground caves, the Mediterranean coastline and the famous Lipica horses

Bled

44 / Slovenian Business In Serbia - 2010

TOURISM

RE THE MEDITERRANEAN

TS THE ALPS By Vesna MILINKOVIĆ

tanding at the crossroads of Europe, one of the continent’s smallest nations is growing in stature as a fascinating year-round travel destination. Nestled between Italy, Austria, Croatia and Hungary, Slovenia stands where north meets south and the east meet the west. It’s also where the Mediterranean meets the Alps and the old meets the new. Once part of the Austro-Hungarian Empire and, more recently, one of the six member republics of the former Yugoslavia, Slovenia is today independent and a member of the EU. Slovenia’s fascinating history is both rich and varied. Over the centuries, parts of Slovenia have belonged to its neighbours and it is this flexibility and ability to survive under different regimes, traditions and languages that have helped forge the modern-day country - a dynamic modern nation with its values firmly planted in history. Covering just over 20,000 square kilometres (7,722 square miles), Slovenia is a blend of mountains and natural parks, historical cities, extraordinary underground caves, the Mediterranean coastline and the famous Lipica horses.

Koper

enchanting landscape!

From the European ski slopes of Kranjska Gora to the fairytale lakeside town of Bled, this is Europe at its best. Slovenia already enjoys worldwide renown as the host of many international ski and winter sports competitions, held at both Kranjska Gora, in the Julian Alps, and Maribor Pohorje in the north-east. But its undulating and challenging landscape offers so much more. Whether your passion is mountaineering, walking, cycling, fishing or kayaking, Slovenia has every inch of terrain to help you indulge. The 84,000-hectare Triglav National Park is a world of natural wonders, rich in plants and animals, punctuated by majestic peaks and thundering waterfalls. It is a playground for mountaineers and walkers of all 2010 - Slovenian Business In Serbia / 45

levels. Criss-crossed by trails, paths and walkways, the park is one of the largest in Europe and its natural heritage is of prime importance. Within the park the lakes of Bled and Bohinj leave their own unique impression.

coastal charm!

Slovenia’s compact Mediterranean coastline is bursting with warmth and personality. Sandwiched between Croatia in the south and Italy (to the north) the tiny towns of Piran, Portoroz, Izola and Koper blend coastal charm with centuries of history. Close to Piran the rich salt flats at Secovlje still produce salt using traditional methods and in the summer visitors can take a boat trip from Piran and Portoroz to the pans to try it for themselves.

For the sporting, Slovenia is rapidly becoming a popular European golfing destination with 10 professional golf courses nestled amongst some of the most amazing scenery in the country

Captivating capital!

Slovenia’s Baroque style capital city, Ljubljana, is home to some of Europe’s art nouveau gems. Slovenia’s architectural son, Joze Plecnik, saw the city as the new Athens, modelling its castle on the Acropolis and the National Library on the Hellenistic Library. This lively capital is where the old meets the new. Locals say it’s a ‘city made to measure’ as it offers all the friendliness of a small town yet at the same time everything that a capital city should offer. Every year Ljubljana comes alive when it hosts many national and international festivals and exhibitions of art, music and culture.

Ljubljana

Extravagant fun!

In Slovenia wellness is not a remedy but a healthy way of life! And with more than 15 natural thermal health resorts, first class relaxation for the body and soul is a priority when visiting the country. Along with classic spa treatments, extensive health and beauty pro-

Moravske Toplice

Postojna grams are on offer at each resort. However, you don’t have to stay at one of these to experience the Slovenian secret of life: Many hotels in the major cities offer a program of treatments. For the sporting, Slovenia is rapidly becoming a popular European golfing destination with 10 professional golf courses nestled amongst some of the most amazing scenery in the country. Under the surface of the Karst region is a totally different world. The extensive underground cave systems at Postojna (the biggest of Slovenia’s caves, most visited and the only one in Europe that can be visited by train) and Skocjan (the deepest cave in Slovenia and a UNESCO World Heritage Site) were discovered centuries ago. But it wasn’t until the 19th century that biologists discovered the subterranean world is home to semi-aquatic creatures that cannot survive elsewhere and the damp climate sees the footprint of the caves continually changing. There are over 8,000 registered caves in Slovenia, 25 of them open to tourists.

Fabulous food and full-bodied wines!

From fine restaurants to neighbourhood gostilnas, enjoy a traditional Slovenian struklji, or wind-dried prosciutto, washed down with a light mountain white or a dry coastal red. The diversity of landscape and the vast range of neighbouring influences are reflected in the variety of Slovenian cuisine. The simple country fare of the past now represents the pinnacle of the country’s gastronomic offering. Local specialities range from the Carniolan sausage, from the Alpine region, to the struklji (dumplings) and the potica cake from central Slovenia, the gibanica cake and plaited bread from the Prekmurje region, and Mediterranean muscles from the coast. Wines are varied too. They include good table wines as well as superior quality, dessert and sparkling wines. The country’s three wine growing regions - Primorska, Posavje and Podravje - produce four wines specific to Slovenia: Cvicek, Zelen, Rebula and Teran. The country’s vine-covered hills are criss-crossed with wine routes and fine wine cellars, the oldest in the historic town of Ptuj. n

Dolenjski štrukli

Kranjska Gora

Slovenia proclaims its commitment to green tourism The Slovenian Tourist Board has announced its commitment to green and sustainable tourism in the country, stating that the conservation of forests, inland waters, coastal areas and other natural resources will be Slovenia’s ‘trump card’ for tourism in the future. “Going green is not a shortterm trend, but a core philosophy for staying competitive in the tourism business,” comments Dimitrij Piciga, Director of Tourism Organization of Slovenia. “We should strive for green synergy, which is required to deal responsibly with climate change.” The main tourism products of

Slovenia are all closely connected with nature. The country is the third-most forested in Europe, after Finland and Sweden, with a diverse and unspoilt landscape. It is this landscape that makes Slovenia a perfect destination for hiking, Nordic walking, cycling, golf, all kinds of water-based activities, winter sports and farm tourism, not to mention Slovenian gastronomy which is based on a wide variety of local and regional food. Slovenia ALSO boasts: • Almost 60% of its land covered in forests

• Several preserved original forest reserves, including one located just 60 kilometres from the capital, Ljubljana • A full 36% of its land lying inside ‘Natura 2000’ areas (a network of protected areas of European importance) • Over 22,500 animal and plant species, placing it among the countries with the highest level of biological diversity in Europe • Less than 0.004% of the Earth’s surface but being home to more than 1% of all known living creatures and more than 2% of all land and freshwater species • Drinking water that is amongst

2010 - Slovenian Business In Serbia / 47

the purest in Europe and even the world In Slovenia, green is seen as more than just a colour. It expresses the balance between the tranquillity of nature and the perseverance of the Slovenian people. It speaks of unspoilt nature and the dedication to keep it that way. It symbolises a balanced lifestyle that combines the Slovenians’ unstoppable zest for life with a shared vision for the future, hand in hand with nature. - Air connections: Slovenia’s national carrier Adria Airways www.adria.si offers regular scheduled flights to most major European cities.

THE SLOVENIAN

BUSINESS CLUB

ABA CONSULT d.o.o. Project design, engineering and consulting company Hektorovićeva 6, 11000 Belgrade; www.abaconsult.rs ACRONI d.o.o Sale of iron panel products Cesta Borisa Kidriča 44, 4270 Jesenice, Slovenia; www.acroni.si ADACTA d.o.o. Implementation of business solutions and software for telecommunications operators and banks Kneza Mihaila 2-4/VII, 11000 Belgrade Laze Nančiča 50, 21000 Novi Sad; www.adacta-execom.net; www.adacta.si ADVANT d.o.o. Design, engineering and distribution of IT equipment, data safety, data centres, network technologies, structural cabling Bulevar Mihaila Pupina 10a/VP unit 35, 11070 Novi Beograd; www.advant.rs Armic & Partners Law office Admirala Geprata 7, 11000 Belgrade; www.lawofficebelgrade.rs PRICA & PARTNERS LAW OFFICE Law office Kralja Petra 13, 11000 Belgrade; www.pricapartners.com ADVISO d.o.o. Consultancy services Kapetan Mišina 23, 11000 Belgrade; www.adviso.rs AFAKTOR-FAKTORING FINANSIRANJE D.O.O. Factoring Kralja Petra 45, 11000 Belgrade; www.abanka.si ALPOS d.o.o. Production of welded pipes Naselje Aleksinački Rudnik BB, 18220 Aleksinac; www. alpos.si AQUAFIL TEXTILE YARNS YUG d.o.o – ATYUG d.o.o. Textile traders Jurija Gagarina 202/24, 11000 Belgrade; www. aquafil.com ARCADIA RASVETA d.o.o. Designing and retailing light fixtures Studentski trg 4, 11000 Belgrade Kozačinskog 3, 21000 Novi Sad; www.arcadia-lightwear.com

ATTOS d.o.o. Production of domestic appliance components (thermostats, switches, pilot lights) under the brand Metalflex Tolmin, Slovenia Temerinski put 26, 21000 Novi Sad; www.attos.rs AS Neživotno Osiguranje a.d.o. Director: Jova Miloradić Non-life insurance company Bulevar Mihaila Pupina 165e, 11070 Novi Beograd tel:+ 381 11 26 08 676 fax:+ 381 11 26 08 684 metod.grah@as-osiguranje.rs jova.miloradic@ as-osiguranje.rs; www.asosiguranje.rs AUSTROCHEM d.o.o. Import and wholesale of chemical products Jovana Rajića 59, 11000 Belgrade; www.austrochem.si AVTOTEHNA d.d., Atrikod d.o.o – Kruševac, the company’s branch in Serbia Information technology, automotive parts, production, retail, services Litijska cesta 259, 1261 Ljubljana - Dobrunje , Slovenia; www.avtotehna.si BEL MEDIC General hospital and medical clinic Koste Jovanovića 87, Viktora Igoa 1, Palmira Toljatija 1, 11000 Belgrade; www.belmedic.com BG PLAN d.o.o. Investing, building and artisan works in high-rise construction Milutina Milankovića 25b, First floor, Unit 52, 11070 Novi Beograd; www.energoplan.si BIMEX d.o.o. Wholesale trade in chemical products Gaji 32, 3000 Celje, Slovenia; www.bimex.si CASH BACK IMO Services related to foreign VAT return for companies from Serbia and Slovenia Stevana Mirkovića 8, 11080 Zemun; www.unitedcashback.com CICIBAN BG d.o.o. Directors: Tomaž Petejan and Miroslav Čorbić Wholesale and retail of

footwear Bulevar Vojvode Stepe 86, 21000 Novi Sad tel:+ 381 21 66 11 772 mob:+ 381 21 66 16 692 miroslav@ciciban.rs tomas.petejan@ciciban.info office@ciciban.rs Sanja Penc - Planika.rs [sanja@planika.rs]; www. ciciban.info Cinkarna Celje d.d. Production of titaniumdioxide pigment, printing products and Masterbatch PE, PP,PS; Chemical products (dyes used in concrete, metal and wood, anti-corrosion dyes, light powder dyes used in plasticisation of metal); Construction products (tile adhesives, Siporex, styrofoam, various kinds of mortar); Agri-product range (Cuprablau Z, Cuprablau ultra, Humovit); Zink metal product range (zinc-titanium sheets, sulphuric acid, production and coating of metal parts made out of Teflon, production and rubber coating of metal parts); Resavska 76, 11000 Belgrade; www.cinkarna.si CLEANGRAD d.o.o. Production of so-called ’clean rooms’ used in pharmacy, food industry, hospitals Rada Pušenjaka 1, 9240 Ljutomer, Slovenia; www. cleangrad.si Colliers International d.o.o. Real estate Bulevar Mihaila Pupina 115d, 11070 Novi Beograd; www.colliers.com DANOS and Associates d.o.o. Development of real estate projects Vladimira Popovića 6, 11070 Novi Beograd; www. danos.rs DDC – Družba za svetovanje in inženiring d.o.o, Consultancy, construction engineering and maintenance of transport infrastructure Kotnikova ulica 40, 1000 Ljubljana, Slovenia; www. ddc.si DEMI TRADE d.o.o. Representation, consulta-

tion, and engineering services Installation work, services, control, preventive and regular maintenance of ATMs produced by IBM An exclusive Sigma distributor for Slovenia Rodetova 5, 1290 Grosuplje, Slovenia,; www. demitrade.si DEXY CO d.o.o. Import and retail sales of toys Milentija Popovića 9, 11070 Novi Beograd; www.dexy. co.rs The DOBA Faculty (Faculty of Applied Business and Social Studies, Maribor) Director: Jasna Dominko Baloh A higher learning facility specialising in business studies Prešernova ulica 1, 2000 Maribor, Slovenia tel:+ 386 2 228 38 90 fax:+ 386 2 228 38 61 polona.baloh@doba.rs peter.baloh@doba.si vpsm@vpsm.si; www.vpms. si; www.doba.rs DUGA HOLDING A.D. Production of dyes and varnishes Viline Vode 6, 11000 Belgrade; www.duga-ibl.com DUNAV PAPIR d.o.o. Alpe papir d.o.o. Wholesale trading in various kinds of paper and cardboard Letaliska Cesta 16, 1000 Ljubljana, Slovenia Savski Nasip 7, 11070 Novi Beograd; www.alpepapir.si ECO CLEAN SERVICE Cleaning and maintenance services Karlovačka 20, 11080 Zemun; www.ekocleanservice.rs ECOSEC d.o.o. Financial consultants Zoranina 3, 1230 Domžale, Slovenia EKAPIJA.COM d.o.o. Information services, information exchange Vladimira Popovića 14, 11070 Novi Beograd; www. ekapija.com ELEKTRONSKI BANKARSKI BIRO Electronic data processing and IT Beogradska 39, 11000 Bel-

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grade; www.ebb-bg.com; www.halcom.si ETIB d.o.o. Electrical products, technical ceramics, rubber and plastics, tools and equipment Braće Jerković 120, 11000 Belgrade”; www.eti.si; www.etib.rs ETOL GROUP d.d. Import of bases and flavours for alcoholic and non-alcoholic beverages, tobacco processing industry, a cold storage facility for food products (storing temperature – down to -20°C) Škofja vas 39, 3000 Celje, Slovenia; www.etol.com EUROPEN Trade International Foreign and domestic trade, distribution of globally renowned brands like Luminarc, Zippo, Maglite and Victorinox Trg Republike 3/V, 11000 Belgrade; www.europen.rs FERŠPED – Belgrade branch office Transport and freight forwarding services Jurija Gagarina 32, Third floor, Block B, 11070 Novi Beograd; www.fersped.si FIRSTDATA d.o.o. The leading company for processing payment card transactions Kopernikova 8, 11000 Belgrade; www.firstdata.rs FRIDRO d.o.o. Sale of cutting tools, accessories, measuring tools, sharpening tools, filters, pneumatic tools and saws Obrtniška ulica 12, 2360 Radlje ob Dravi, Slovenia; www.fridro.com GAMAELECTRONICS d.o.o. Telecommunication services (ISP and VOIP) Mišarska 11, 11000 Belgrade; www.bitsyu.net GORENJE d.o.o. Director: Marko Mrzel Wholesale of domestic appliances Bulevar Milutina Milankovića 7 11070 Novi Beograd tel:+ 381 11 353 4100 fax:+ 381 11 353 4111 mob:+381 63 456 450 marko.mrzel@gorenje.rs office@gorenje.rs; www. gorenje.com; www.gorenje.si THE TOWN OF SUBOTICA

The Subotica Town Assembly Town of Subotica – Local Self-Government Trg Slobode 1, 24000 Subotica; www.subotica.rs GRAND PROM d.o.o. Director: Slobodan Vučičević Tea and coffee production, sales and related services Omladinskih Brigada 88 Airport City, Building no. 1300, 11070 Novi Beograd tel: + 381 11 311 23 50 fax.: + 381 11 311 46 25 slobodan.vucicevic@drogakolinska.com tanja.stamenovic@ drogakolinska.com; www. drogakolinska.com HIDRIA d.o.o. IMP Klima – air conditioning Divizija Hidria Perles – sale of hand tools and other electric tools Hidria Tomos – sale of Tomos motorbikes Jurija Gagarina 26V/III 11070 Novi Beograd; www. hidria.com; www.impklima.si HIGHER Inženjering d.o.o. Nuba invest d.o.o Telecommunications Bulevar Mihaila Pupina 6/XV 11070 Novi Beograd; www. nuba.rs HOLCIM (Srbija) d.o.o. Cement plant Popovac , 35254 Popovac; www.holcim.rs HOLDING SLOVENSKE ELEKTRANE d.o.o. Production and sale of electricity, designing and performing external electrical works, work optimization Bul. Mihaila Pupina 117/II 11070 Novi Beograd; www. hse.si HORNBACH d.o.o. Industrial and commercial flooring, concrete and metal constructions, hydroisolation Nehruova 220, 11070 Novi Beograd; www.hornbach.rs HOTEL LEV Hotel Vošnjakova 1, 1000 Ljubljana , Slovenia; www. hotel-lev.si HYPO ALPE- ADRIA LEASING d.o.o. Leasing services

THE SLOVENIAN Bulevar Mihaila Pupina 6 11070 Novi Beograd; www. hypo-leasing.rs HYPO GARANT PENZIJSKO DRUŠTVO a.d. Voluntary pension insurance Čika Ljubina 6/III, 11000 Belgrade ; www.garantpenzije.eu HYUNDAI AUTO d.o.o. Trading in vehicles and spare parts Milutina Milankovića 7v 11070 Novi Beograd; www. hyundai-auto.co.rs IDENTICUS Sr d.o.o. Wholesale of office machines and equipment Knez Danilova 63/7 11000 Belgrade; www. identicus.rs IEDC Bled Business School Director: Danica Purg Business school Prešernova 33 4260 Bled, Slovenia tel:+ 386 4 57 92 552 fax:+386 4 57 92 500 info@iedc.si; www.iedc.si IMPOL – SEVAL Valjaonica aluminijuma a.d. Director: Ninko Tešić Aluminum rolling mill Prvomajska bb, 31205 Sevojno tel:+ 381 31 531 647 Director’s phone numbers:+ 381 31 532 962, 31 533 011 ninko.tesic@seval.rs office@seval.rs; www. seval.rs INEA d.o.o. IT – automatisation, computer aided process management, production and energy IT Karađorđeva 12/254, 11300 Smederevo; www.inea.rs INFOSTUD 3 d.o.o. Database processing Aleja Maršala Tita 26/3-1 24000 Subotica; www. infostud.com INFOTEHNA d.o.o. Production, implementation and maintenance of business systems for document management Consultancy services related to business processes in regulated industries Glavni trg 20, 8000 Novo Mesto, Slovenia ; www. infotehna.com INTEREUROPA a.d.

Logistics services Zemunska 174 11272 Belgrade – Dobanovci; www.intereuropa.rs ISKRATEL d.o.o. IT Ljubljanska cesta 24a 4000 Kranj, Slovenia; www. iskratel.com IZOLACIJA HOLDING a.d. Finishing artisan works in construction Miška Jovanovića 9 11000 Belgrade; www. izolacija.rs JUB d.o.o. Director: Vladimir Miletić Production of materials used in finishing construction works Dositejeva 32, 22310 Šimanovc tel:+ 381 22 81 404 fax:+ 381 22 81 408 mob:+381 63 372 852 jub@jub.rs vladimir.miletic@jub.rs; www.jub.si KLETT Izdavačka kuća d.o.o. Publishing company Svetozara Ćorovića 15/IV 11000 Belgrade; www. klett.rs KONTAL Sale of printing raw materials and equipment, office materials and leather products Kumodraška 241g 11000 Belgrade; www. kontal.co.rs KOVINTRADE d.o.o. Trading in ferrous metallurgy products; hot-rolled rods, beams and squares, tool steel in rods and blocks, hot and cold rolled metal sheets, staircases and bars, iron alloys, welding materials, cutting metal products to measure, transport provided. Milana Rakića 35, 11000 Belgrade; www.kovintrade.rs KOVIS BP d.o.o. Production of housing for railway coaches, metal processing, servicing and overhauling machines Industrijska zona bb 21400 Bačka Palanka; www. kovisbp.rs KRAS BEO Import, production and distribution of delicatessen and cooking oils Vojni put 270a/II

11080 Zemun; www.kras.si KRKA FARMA d.o.o. Director: Radivoj Topalov Pharmaceutical products Jurija Gagarina 26 V/II 11070 Novi Beograd tel:+ 381 11 323 98 58, 323 36 41 322 44 83, 323 58 59 radivoj.topalov@krka.biz mihajlovic.bojana@krka.biz; www.krka.si LESNINA LGM d.o.o. Sale of plate raw materials, construction materials, furniture production, cutting and edge finishing services Mihajlovački drum bb, 23000 Zrenjanin; www. lesninalgm.com LINPAC Packaging d.o.o. Distribution of food packaging to food producers (meat processing industry, bakeries, dairies) and large retail systems Obrtniška ulica 16, 1370 Logatec, Slovenia ; www.linpac.si LISCA Director: Gorazd Uratnik Production of lingerie Pere Velimirovića 2a 11000 Belgrade tel:+ 381 11 2663 938 fax:+ 381 11 3067 118 mob:+381 63 36 51 51 lisca@eunet.rs gorazd.uratnik@lisca.rs; www.lisca.rs MAKSIM BG d.o.o. Metal-cinkara d.o.o. Director: Maks Bastl A management company Bulevar Umetnosti 23/II-12 11070 Novi Beograd Kneza Miloša bb, 35230 Ćuprija tel:+ 381 35 470 904 fax:+ 381 35 472 160 simon.bastl@maksim.si mirsad.draganovic@ maksim.si MARMOR HOTAVLJE d.o.o. Sale, processing, designing and installation of stone works Bežanijska 25, 11080 Zemun; www.marmorhotavlje.si MERCATOR-S d.o.o. Director: Stanka Čurović Retail trade Temerinski put 50 21000 Novi Sad tel:+ 381 21 4888 415 fax:+ 381 021 4888 409

stanka.curovic@mercator.rs Mercator Centar Belgrade tel:+ 381 11 2015 399 fax:+ 381 11 2136 058; www.mercator.rs MERKUR group Director: Bojan Pongrac Retail of metal hardware Partizanske avijacije 4 11070 Novi Beograd; www. merkur.eu MERSTEEL trgovina i usluge Processing and trading in metallurgical products Partizanske avijacije 4 11070 Novi Beograd tel:+381 11 205 72 11 fax:+381 11 205 72 01 bojan.pongrac@merkur.eu; merkurbg@merkur.eu; www.mersteel.eu MIBESIS Miroslav Beranič s.p. Development of programme equipment, consultation services in implementation of IT solutions Gradiška 14a 2211 Pesnica pri Mariboru, Slovenia; www.mibesis.si MLM ARMAL d.o.o. Car parts manufacturer, bathroom fittings, radiators, copper wires Kapetan Mišina 16, 11000 Belgrade ; www.mlm-mb.si MODRIANI d.o.o. Investments, trade and mediation services Golubinačka 54 22310 Šimanovci; www. modriani.rs MSS Staffing Services d.o.o. Employment mediators Ilije Garašanina 22 11000 Belgrade; www.mss. co.rs NELT CO d.o.o. Distribution and logistics Karađorđeva 65 11000 Belgrade; www. nelt.com NemaDaNema d.o.o. Trade, Imotska 1 11000 Belgrade; www. nemadanema.rs NEW MOMENT NEW IDEAS COMPANY Director: Dragan Sakan Publishing company, integral marketing and communication services Hilandarska 14 11000 Belgrade

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tel: + 381 11 3229 992 fax: + 381 11 3346 560 dragan.sakan@newmoment.com ksenija@newmoment.com; www.newmoment.com NIVO d.d. High-rise construction, lowrise construction, construction materials production Lava 11 p.p.428, 3000 Celje, Slovenia; www.nivo.si NLB Banka a.d. Beograd Zoran Đurović, President of the Executive Board Bank, Bulevar Mihaila Pupina 165v 11070 Novi Beograd tel:+ 381 11 222 51 00, 222 51 01 fax:+ 381 11 3020 306,3020 310,3020 333 kabinet@nlb.rs info@nlb.rs; www.nlb.rs NLB InterFinanz d.o.o. Forfeiting (when a bank advances cash to an exporter against invoices or promissory notes guaranteed by the importer’s bank), debt consolidation Bulevar Mihaila Pupina 165v, 11070 Novi Beograd; www.nlbi.ch NLB Leasing d.o.o. Financial leasing Bulevar Mihaila Pupina 165v 11070 Novi Beograd; www. nlbleasing.rs NLB NOVA PENZIJA a.d. Voluntary pension insurance company Bulevar Mihaila Pupina 165v 11070 Novi Beograd; www. nlbnovapenzija.com NOVA KREDITNA BANKA MARIBOR – Belgrade branch office Director: Alojz Kovše Bank Gospodar Jovanova 43 11000 Belgrade tel:+ 381 11 262 14 11 fax:+ 381 11 328 56 51 Belgrade@nkbm.si; www. nkbm.si NPS d.o.o. Implementation and maintenance of integrated business and IT systems Microsoft Dynamics (Navison), business consultancy services, business intelligence solutions Goce Delčeva 44 11070 Novi Beograd; www.

BUSINESS CLUB nps.rs OKI AIR INTERNATIONAL d.o.o. Trade representative of Slovenian national airline ADRIA AIRWAYS d.d. in Serbia. Nikola Tesla Airport 11180 Belgrade; www. oki.me MUNICIPALITY OF PEĆINCI Municipality’s President Slobodana Bajića 5 22410 Pećinci; www. pecinci.org PACIJENT d.o.o. Transport services (ambulance vehicles) Žarka Zrenjanina 87 11000 Belgrade; www. pacijent.rs PERUTNINA PTUJ Director: Franc Čelan Retail of high-quality poultry products Generala Nikodija Stefanovića 1 11000 Belgrade tel:+ 381 11 36 72 259, 36 72 154 fax:+ 381 11 266 77 10 office@perutnina-srbija.rs; www.perutnina.com PETROL d.o.o. Director: Aljoša Višnar Oil and Oil Products Trade Španskih boraca 24v 11077 Novi Beograd tel:+381 11 212 93 84 fax:+ 381 11 313 29 28 mob:+381 65 2 334 987 aljosa.visnar@petrol.si petrol@verat.net; www. petrol.si PINUS PLUS d.o.o. Representation and sale of herbicides, organizing agricultural production Ćirpanova 2/6, 21000 Novi Sad; www.pinus-plus.co.rs PIVOVARNA LAŠKO d.d. Brewery Trubarjeva 28 3270 Laško, Slovenia; www. pivo-lasko.si PLASTIKA - ANDREJ MESOJEDEC s.p. Production of plastic packaging and sheets Sneberska cesta 140a 1260 Ljubljana, Slovenia; www.plastika-mesojedec.si POSMED d.o.o. Insurance mediator Petrijevska 165 11300 Smederevo; www. posmed.biz

THE SLOVENIAN

BUSINESS CLUB

POTEZA PARTNERS d.o.o. Stock exchange trading Železna cesta 18 1000 Ljubljana, Slovenia; www.poteza.si PRIMORJE d.d. Belgrade Director: Štefan Činč High- and low-rise construction Vladimira Popovića 40 11070 Novi Beograd tel:+ 381 11 305 28 51 fax:+ 381 11 305 29 17 stefan.cinc@primorje.si; www.primorje.si PRISTOP d.o.o. PR, advertising, promotions, event organisers, media buying, branding, consultancy services, design Trg Nikole Pašića 3 11000 Belgrade; www. pristop.rs PROBROKER BDD Financial consultancy Kralja Petra 45/IV 11000 Belgrade; www. platforma.co.rs PROFIL GROUP d.o.o. Headhunting, management, consultancy Kralja Petra 45 11000 Belgrade; www. profil-group.com PROGARD Securitas d.o.o. Monitoring and mobile security Terazije 31, 11000 Belgrade; www.progard.co.rs PRO KOLEKT d.o.o. Financial collection mediation and monitoring Bulevar Mihaila Pupina 10ž 11070 Novi Beograd; www. prokolekt-serbia.com PROMONT GROUP d.o.o. Design, production and installation of gas, ventilation and heating equipment Privrednikova BB 21000 Novi Sad; www. promontgroup.rs PRVI FAKTOR - factoring d.o.o. Factoring services Bulevar Mihaila Pupina 165v, 11070 Novi Beograd; www.prvifaktor.rs RADGONSKE GORICE d.d. Director: Borut Cvetkovič Production of high-end wines, apple orchard Jurkovičeva 5 9250 Gornja Radgona, Slovenia tel:+386 2 564 85 10, 564 85 13, 564 85 33

fax:+386 2 561 10 39 branko.krizan@radgonskegorice.si info@radgonske-gorice.si; www.radgonske-gorice.si RATING d.o.o. Representative office of credit rating agency Dun & Bradstreet, drafting credit reports Milića Rakića 7/32 11050 Belgrade; www. rating.rs REAL SECURITY International d.o.o. Providing globally renowned security solutions, education and activities in marketing, data protection, computer virus protection, safety policies, firewalls, consultancy services and solution distribution, linking computer systems and networks. Bulevar Zorana Đinđića 39 11070 Novi Beograd; www. real-sec.com RIBBON-CMS d.o.o. Printer ribbons for all sorts of printers and typewriters. Ink-jet cartridges, bubblejet cartridges, toner cases for laser printers. Sale of raw materials for toner recycling and spare parts for laser printers. Laser printer servicing. Ljutice Bogdana 2/1 11000 Belgrade; www. ribbon-cms.rs RIKO d.o.o. Director: Jože Gradišar, Predrag Đekanović Production of road cleaning and maintenance equipment, as well as equipment for utility and environmental services. Repairing and providing spare parts. Bul. Arsenija Čarnojevića 217, 11070 Novi Beograd tel:+ 381 11 21 20 590 fax:+381 11 21 20 591 mob:+ 381 63 800 57 21 kontakt@riko.rs pdjekanovic@riko.rs - Director: Predrag Đekanović dsimonic@riko.rs - Sales: Dragan Simonić- dkokovic@riko.rs - Technical Secretary: Dragana Koković; www.riko.rs Rojs, Peljhan, Prelesnik & Partneri Legal consultancy services Kralja Petra 30, 11000 Belgrade

SAVA OSIGURANJE a.d. POLIS OSIGURANJE a.d.o. Director: Duško Jovanović, Verica Matković Shareholding insurance company Sremska 6/III, 11000 Belgrade tel: + 381 11 3286 301,3286 298,3286 275 fax: + 381 11 3286 192 dusko.jovanovic@savaosiguranje.rs verica.matkovic@savaosiguranje.rs office@sava-osiguranje.rs matej.herlec@sava-osiguranje.rs; www.sava-osiguranje.rs SCT & CG Montaža a.d. Installation of concrete constructions Jugoslovenska br.2/13a 11250 Železnik - Belgrade SLOVENSKE ŽELEZNICE National railway company Jurija Gagarina 32, Third Floor, Block B 11070 Novi Beograd; www. slo-železnice.si SRC sistemske integracije d.o.o. Software solutions Bulevar Mihaila Pupina 165v 11070 Novi Beograd; www. src.si; www.src.rs SAOP d.o.o. Development of business software for retail, production and service companies Cesta Goriške fronte 46 5290 Šempeter Pri Gorici, Slovenia; www.soap.rs SOFTNET d.o.o. Ground telephony operator Borovec 2, IOC Tržin, 1236 Tržin, Slovenia Vladimira Popovića 40 11070 Novi Beograd; www. softnet.eu ŠPICA CENTAR d.o.o. Director: Darko Korać Automatic identification services Belgradeska 39/III 11000 Belgrade tel:+ 381 11 324 74 15, 324 79 95, 324 62 21 mob:+ 381 63 378 326 darko.korac@spica.rs duska.sofronic@spicacentar.rs; www.spicacentar.rs TABOR LJUBLJANA d.d. HOTEL PARK Tourism Tabor 9, 1000 Ljubljana, Slovenia ; www.hotelpark.si TENZOR d.o.o. Technical security services

(property and people), design, acquisition, installation and maintenance of anti-theft, fire-protection and video surveillance equipment. Hadži Ruvimova 58, 21000 Novi Sad; www.tenzor.si TERME KRKA d.o.o. Tourist facility Ljubljanska 26 8501 Novo mesto, Slovenia; www.terme-krka.si TIM IZOLIRKA d.o.o. Production of isolation materials (heat isolation, hydro-isolation, building front isolation, packaging) Branka Erića 7, 22240 Šid; www.frigmat.si TINTTER d.o.o. Cargo transport Vojkovo nabrežje 30a 6000 Koper, Slovenia; www. tintter.si TRANŠPED a.d. Freight forwarding, transport and storage of goods, domestic and foreign trade, tourism services Kralja Petra 45, 11000 Belgrade; www.transped.rs TRIGLAV KOPAONIK a.d. Director: Zoran Popović Shareholding insurance company Kralja Petra 28, 11000 Belgrade, tel:+ 381 11 33 05 100, fax:+ 381 11 33 05 138 office@triglav.rs milan.skok@triglav.rs zoran.popovic@triglav.rs, dragisa.kecojevic@triglav.rs gordana.kulic@triglav.rs Chairman of Managing Board, Milan Skok, mobile phone number: 066 555 5 555 Managing Director, Zoran Popović, mobile phone number: 066 555 5 551 Managing Board advisor, Dragiša Kecojević, mobile phone number: 063 322 230; www.triglav.rs TRIGLAV PENZIJSKI FONDOVI a.d. Management of a voluntary pension fund Kralja Petra 45 11000 Belgrade; www. triglavpenzija.com TRIMO- inženjering d.o.o. Director: Damir Kočan, Zoran Marković Steel installations, steel constructions, roofs, containers and sound isolation systems

50 / Slovenian Business In Serbia - 2010

Bulevar Arsenija, arnojevića 99b, 11070 Novi Beograd tel:+ 381 11 21 29 724, 21 29 024 tel:+ 381 11 21 29 726 damir.kocan@trimo.si damir.kocan@trimo.rs office@trimo.rs zoran.markovic@trimo.rs stane.bajc@trimo.si; www. trimo.rs; www.trimo.si TUŠ TRADE d.o.o. Retail trade Bulevar Mihaila Pupina 10a 11070 Novi Beograd; www. tus.si UNIHEM TRADING d.o.o. Production of flooring materials (adhesives, floor flattening materials, parquet floor varnishes, tools for floor layers, and industrial pressure equipment). Kumodraška 257 11000 Belgrade; www.unihem.si; www.unihem.rs VARNOST FITEP d.o.o. Physical and technical security services, sanitary protection, fire protection, transport of money and valuables Gundulićeva 8-10, 11080 Zemun; www.varnostfitep.rs VESIMPEX d.o.o. Sale of equipment produced by the Rittal Company (the biggest global producer of housing and industry and telecommunication cabinets, lowvoltage collection systems and industrial cooling systems). The company also represents the Lampertz Company (IT security) and the Telegärtner Company (connection equipment). Petra Konjovića 12v/C 11090 Belgrade ; www. vesimpex.rs VIATOR &VEKTOR TRANŠPED Novi Sad Freight forwarding, transport and storage of goods, domestic and foreign trade services, tourism services Branimira Ćosića 2, 21000 Novi Sad; www.transpedns.com VOLKSBANK a.d. Bank Steve Todorovića 32/II 11030 Belgrade; www. volksbank.rs ZUGAY d.o.o. Design and engineering

services Vojvođanska 375, 11271 Surčin Gradski Park 8, 11080 Zemun; www.zugay.rs WEISHAUPT d.o.o. Leading global producer of small and large burners and high-end heating systems Bulevar Mihajla Pupina 6 11070 Novi Beograd; www. weishaupt.rs YU KAPITAL d.o.o. Holding and management services Dobračina 29, 11000 Belgrade; www.yukapital.com Law office Đorđević Law office Dečanska 19 11000 Belgrade Živadinović Layer Law office Bulevar Oslobođenja 51/2 11000 Belgrade Radojević Layer Law office Gandijeva 126 11070 New Belgrade EZO grupa d.o.o. Ecology and environmental protection Banjički venac 22 11 000 Belgrade FINNEX Intl Trade Co Export pharmaceuticals to countries of former USSR Hilandarska 16/11 11000 Belgrade GIP HOLDING d.o.o. Entrepreneurial and business consulting Kolodvorska 21 6230 Postojna Slovenia NLB Srbija d.o.o. Real estate renting Bulevar Mihaila Pupina 165v 11070 New Belgrade PORSCHE SCG Car sales Zrenjaninski put 11 P. fah 16 11210 Belgrade PROFI agencija Accounting and Financial Consulting Resavska 78a 11000 Belgrade SANOLABOR d.o.o. Pharmacy Maksima Gorkog 5 11000 Belgrade SOPOTNIK TRADE d.o.o. Dealers and wholesale famous sporting brands Donnay-in sport in 2000 Špruha 33 1236 Tržin Slovenia

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