What are the differences between Ukraine and Slovakia? I want to show you some examples of them in the investment attracting policy.
1. Which specialized organization is involved in attracting investors?
Slovakia - Sario (https://www.sario.sk/en). Ukraine - UkraineInvest (https://ukraineinvest.com/)
2. What tools does it use?
Slovakia. Industrial parks with a ready-made infrastructure. Science and technology parks are associated with key universities. Grants in case of long-term investments in tangible and intangible assets.
Income tax exemption. Cash incentives for creating new jobs. Selling real estate below real value.
Ukraine. Reforms. Educated workforce. Trade agreement. Advantageous location in Europe. And yes, I'm not joking, this is the real information from the UkraineInvest website.
3. What investors were attracted to the country?
Slovakia. Volkswagen. Jaguar. IBM. Hewlett-Packard. Panasonic Samsung. Hyundai. And this is not the whole list. An important point - there is even a special paragraph for investors from Ukraine!
Ukraine. No one! Success stories mention investors who have long opened a business in Ukraine, and the agency had nothing to do with it. They also managed to add to the list of investors who do not have their own production here!
4. In which key industries are investors interested?
Slovakia. Automotive - 31% of all investments. Electronic technology - 13%. Engineering - 10%. Pharmaceuticals - 9%. 90% of investments go into the production of goods and services with high added value. Although it is not the main item, I want to show its share: agriculture – 0,4% of all investments !!!
Ukraine. There is no such information, but the first on the list is the agro sphere!!! Although it’s good that the picture of the cow was removed from the main page.
5. How many direct foreign investments have been attracted over the past 5 years?
Slovakia - 11 billion dollars. Two thousand dollars per capita.
Ukraine - 13 billion. Moreover, the real ones are about 5 billion, since most of the investments are manipulations with bank capital.
6. What is the total asset of foreign investors?
Slovakia - $ 70 billion, or 12,5 000 per capita.
Ukraine - $ 45 billion, or $ 1,6 000 per capita.
When you have questions about why our people go to Slovakia and not vice versa, here is the answer. Smaller Slovakia has been much more successful in attracting investors.
And, as you see, it uses specific incentives for this, and not positions in ratings and reforms.