Economic Profile Aug 2008

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Content

Content .................................................................................................................................................. ................................. 2

Banat region.......................................................................................... .................................................................................. 3

Population & Demographics ................................................................................................................................................... 5

Historical facts......................................................................................................................................................................... 6

Culture: multicultural environment & heritage ............................................................................................................ .......... 7

Economy............................................ ...................................................................................................................................... 8

Business Services ................................................................................................................................................................ 8FDIs............................................... ........................................................................................................................................... 9

Export....................................................................................................................................................................................10

Development opportunities..................................................................................................................................................11

Human resources ..................................................................................................................................................................12

Valuable Human Capital....................................................................................................................................................12

Employment......................................................................................................................................................................12

Unemployment .......................................................................................... ....................................................................... 12

Education: Banat highest level of schooling ........................................................................................................................13

Infrastructure ........................................................................................................................................................................ 14

Access and Transportation............................................................................................................................................14

Agriculture ............................................................................................................................................................................15

Quality of life & Leisure.......................... ............................................................................................................................... 16

Stari Begej - Carska bara ................................................................................................................................ ...................17

Deliblatska Pescara - "The Desert in Europe"...................................................................................................................17

Spa tourism ........................................................................................... ............................................................................17

Bela Crkva lakes ................................................................................................................................................................17

Kikinda Mammoth.............................................................................................................................................................18

Weekend tourism..............................................................................................................................................................18

Cost of living..........................................................................................................................................................................19

Benefits for the foreign investors ......................................................................................................................................... 19

Business Incentives ....................................................................................................................................................... 19

Successful stories .................................................................................................................................................................. 20

RDA Banat ............................................................................................. ................................................................................ 21


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Banat region

anat is a geographical and historical region of Central Europe divided between three countries: the eastern part lies inRomania (the counties of Timi, Cara-Severin, Arad, and Mehedini), small northern part lies in Hungary (Csongrdcounty) and in North-Eastern Serbia, Banat is a part of the Autonomous Province of Vojvodina where the rivers Tisa

and Danube are its natural borders.

Because of the richness of its land, its position in between two navigable rivers, its developed neighboring regions, its vicinityof Belgrade, and its developed industry and trade, Banat region has an important role in Serbia, Vojvodina and Europe. Banat consistsof 19 municipalities. Three on the North - Ada, Senta, Kanjiza are administratively part of North Banat district, but at the same time,geographically they are a part of Vojvodinas sub region Backa.

The biggest town in Banat is Zrenjanin, which is the eight biggest town in Serbia. Besides Zrenjanin, the administrative andcultural centres of Banat are Pancevo, Vrsac and Kikinda. Banat is also the richest source of oil and gas in Serbia.

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Municipality PopulationSurface

(km2)

Ada 18994 227Bordering municipality on the North Banat. Agriculture is the main branch of economy along with food processing.Metal and textile industry and crafts are dominant. Attractive Sport centre Adice is mark of this city.

Senta 25568 293It is an educational and cultural centre. The oldest painters camp in Voivodina operates in Senta. One of the twogrammar schools for talented children in Voivodina is in Senta: the Bolyai Jnos Mathematical School.

Kanjia 27510 401

Rich soil, clay, oil, natural gas, and thermal waters are natural resources exploited by dominant branches ofeconomy in the municipality, such as agriculture and food processing industry, construction material industry, andrehabilitation and recreational tourism. Austrian Tondach Group had established a roofing tile factory in Kanjia.The most significant tourist centre in the municipality is the spa resort in Kanjia.

oka 13832 321oka s economy is growing: food processing industry, agriculture, and oil wells. The Municipality of oka is alsowell-known for its vineyards and viniculture and famous oka wine sellers.

NoviKneevac

12975 305Vegetable growing is main branch of economy. Food-processing industries, the production of the cardboardpackaging materials, and to certain extent tourism, are equally important. By its annual profit, NK is ranked as thirdor fourth municipality in Serbia. Metal processing is a secondary priority.

Kikinda 67002 782North Banat economic centre. Center of the Serbian clay building materials production, as a seat of the DD "TozaMarkovi" company, which is the oldest clay producer in Europe.

Novi Beej 26924 609

Agriculture is the main economy branch. The orchards and vineyards of Biserno Ostrvo (Pearl Island) is the onlylocation where special grapevine grows from which the famous Krokan Muscat wine is made. The wall and floortile industry is the main driving force of the development of the municipality. Metalwork, chemical and textileindustry are also well developed.

itite 20399 525Most important agricultural and development sector relay on poultry processing industry. Recently establishedChicken Fest is promoting economic and touristic development. In 2007, local authorities have unveiled amonument in the center of the town, dedicated to Rocky Balboa, famous fictional boxer.

Zrenjanin 132051 1326 Largest city in the Banat. Economy of Zrenjanin is diverse: agriculture, building industry, transport, food, textile,chemical and metal industry. Well equipped industrial zones are basis for attraction of foreign investments.

Seanj 16377 523Secanj is averagely developed municipality in Banat, located on the border with Romania. Secanj started itsdevelopment after 2006 flood, towards agriculture and fishing industry.

Nova Crnja 12705 273Located in the southeastern part of Banat region, near the state border with Romania. Agriculture is thepredominant economic activity. For many years, the economic development of the municipality has been based ontwo main industries: sugar and oil refineries. There is also textile and construction material industry.

Alibunar 22954 602

In the municipality agriculture is the most developed branch of economy. There is a well-known agricultural andindustrial complex in Banatski Karlovac, construction material industry, and meat processing and canning factory.In the "Deliblatska Peara" sandpit, the largest sandy area in this part of Europe, there are famous huntinggrounds in conifer, black locust and poplar woods.

Bela Crkva 20367 353Bela Crkva is a well-known resort with its picturesque countryside, elaborate baroque facades, famous "FlowerCarnival" held in summer, fruits and wines of high quality attract lots of tourists during the course of the summerseason. The greatest natural treasure for tourism development is a group of seven crystal-clear lakes.

Opovo 11016 203

Opovo municipality spreads in the south of Banat region and has a very favorable geographic and strategicposition. The proximity of three major centers - Belgrade, Panevo and Zrenjanin, offers a wide prospectiveregarding the agricultural products sales, employment opportunities, advanced education, as well as the chancefor the people to enjoy the advantages of the citys cultural, sports and supplementary scenes.

Plandite 13377 383Agriculture, food processing industry, is the main branch of the economy. Production of plastic packing materialand textile industry are also developed. Seven beautiful castles are important architectural and historical heritageof 19th and 20th century.

Kovaica 27890 419Agriculture represents the most significant part, although here are important industrial structures from the field ofchemical, woodworking, metal, electronic industries as well as fishing. Kovacica with its gallery of Nave Arts andits painters represent a metropolis of world nave art.

Kovin 36802 730

There are excellent transportation capabilities available via the river Danube, which forms part of the goldenconnection of rivers. The Rhine-Main-Danube-Waterway forms the link between the mouth of the Rhine into theNorthern Sea and the mouth of the Danube into the Black Sea . An Excellent network of transcontinental(interstate) highway that connects Kovin to the rest of Europe, which runs from Amsterdam to Istanbul, goes

directly by Kovin. The nearest airport located less than 60km away, forms the final link to access the Free Zone"Kovin" area.

Panevo 127162 755

Panevo is administrative center the South Banat. It is one of the most important industrial centers in Serbia,particularly in the field of petrol-chemical processing industry. International railway route Belgrade-Timisoara-Bucharest-Constance goes through Panevo, with the railway track parting for Ukraine. There is the Danube-Panevo Port is positioned on the left river bank on the Danube. Panevo is less than 20km away from thecapital city of Serbia, Belgrade.

Vrac 54369 800Vrsac is a town famous for well developed industry, especially pharmaceutical, wine and beer industry,confectionary and textile. The leader of Vrsacs industry is Hemopharn group who is the leader of the country.

TOTAL 688.274 9830


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Population & Demographics

ertile land, plenty of water and temperate climate haveattracted people to Vojvodina plain for centuries. Manypeoples left their traces here, mixing and influence on

each other left a mark on specific periods in history.

The overall population of the area is about 700.000inhabitants, population accounts for about 10% of the national total.Population density is 73 inh./km2, significantly less than the EUaverage and quite below from the national one.

.

Social and economic centers of three Banat districtsare in Kikinda, Zrenjanin, Pancevo and Vrsac. About 50% of thepopulation lives there. Those Municipalities are one of the mostdeveloped industrial centers in Serbia and the region as weland represent important industrial centre, particularly in the fieldof petrol-chemical processing industry, including syntheticfertilizer plant, oil refinery, production of plastic products andcosmetic. There are also other significant industriespharmaceutical, wine and beer, chemical and metal industry

confectionary and textile.

Crop growing is well-developed with maize being the main cropDepopulation trend is permanent, especially in villages.

The chart below illustrate the distribution of Banat'spopulation by age group. As the graphs reveal, Banat has a largerproportion of its population in the midage categories.

F

Ratio Rural - Urban population in Banat

44,22%

55,78%

Total of rural population in Banat

Total of urban population in Banat


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Historical facts

ince the earliest days Banat was crossroad of many nationsand historical events.The Celtic tribes were first to arrive herefrom western Europe bringing their culture, good quality

weapons and tools, various jewelry and pottery made on pottery mills in 3rd

century. Trade was developing quickly and money came on the market as ameasurement of goods.

Romans started spreading literacy, developed cities, built roads,intensified agriculture, developed trade and vocations and they even had afleet on the Danube river which was very important for maintaining power andnew wars.

By the end 6th century, the Slavic tribes were coming to this area.Significant changes is socio - economic relationships have began by the endof 9th century when the Hungarians came from the East and settled on themajor part of today's Vojvodina where they detected remains of Avarian culture, Slavic and French inhabitants.

After the wars with Ottomans, this area was desolated and a lot of fertile land was destroyed. State government and Spahiasstarted to locate population from the west Germans from Germany and north Ugar provinces. Most of the new settlers were Germanswho were very skilled in rational agriculture and they knew many vocations. In order to infiltrate them in economy, government freedtham from paying taxes and gave them many other privileges.

The Serbian Banat was the part of Serbian Vojvodina and part of theVoivodship of Serbia and Tami Banat in XIX century. After 1860, the SerbianBanat was part of Torontl and Temes counties of Habsburg Kingdom ofHungary. The center of Torontl county was Veliki Bekerek, the currentZrenjanin.

When the World War I ended, the region became the Kingdom ofSerbs, Croats and Slovenes.

Since 1945, the Serbian Banat, has been part of the SerbianAutonomous Province of Vojvodina, first as part of the Second and ThirdYugoslavia, then as part of Serbia and Montenegro, and, since 2006, as part ofan independent Serbia.

Nowdays, 100 years after the subdivision of Banat, region is EU gate for SEE countries.

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Culture: multicultural environment & heritage

hen one mentions Banat, the first thing that comes to your mind are rivers, wells and sound of not really foreign, butdifferent language of our compatriots. There are reflections of different cultures in old city centers of Vrac, PanevoZrenjanin, Kikinda and Novi Beej. There are also other sights, such are village settlements and remaining of folklore

architecture.

There are not that many people who know that there was another bridge in place of what isknown today as pedestrian bridge in Zrenjanin. The old bridge is called the Great Bridge by oueldery citizens. It was made of iron of a lace like shape and it was designed by the same personwho designed the Aiffel Tower in Paris Gustav Aiffel.

For one of the most known scientist famous for his achievement in area of physics, whoalso won Edisons award presented to him for his contribution to development of science, issomeone we can also say for He is from Banat as well. His name is Mihajlo Pupin.

As you are drivingtowards South, one should notmiss out Katel castle

complex once a favouriterecuperation place for both Serbian and Austro Hungarian royalfamilies. It was here when Franz List as a very young boy gaveone of his first concerts.

If you continue down that direction, the road will lead youto Kovaica, a center of naive art painting in Banat. But not only ofBanat naive art! Zuzana Halupova (1925-2001), was a UNICEFambassador. Her paintings portray joy of children, kindness andplay. Thanks to such values portrayed in her paintings, UNICEFrewarded her work by printing motives from her paintings ongreeting cards.

This area is also famous for one more authentic thing. Those are "lopte na oranje", so called ore. Sore are played eachsunny day throughout spring since 1960s, but lately it's played only on Easter. Such event attracts many players and audience, it hastwo teams playing against each other. Game is very similar to baseball and has been played since the old days in Orlovat. The samerules for this game is played only in Vranjevo, Novi Beej and since recently in Tomaevac around Easter time, when a 'worldchampionship' in this game is organized annually.

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Economy

Business Services

anat has a vision for growth which includes increased jobs, increased exports, and an increased capacity in labor,infrastructure and technology.

It is one of the most developed areas in the country, because of the favorable conditions, rich natural potentials andresources.

Economic structure can be described in six key sectors: agribusiness, metal industry, oil refining and petroleum productslogistics and shared business services.

The dominant positions are taken by agriculture and industry which are the main carriers of economic development. 70% ofthe total gross domestic product comes from agriculture and industry 40% from the industry, and 30% from the agriculture. From2002 to 2005 GDP was changed 20%.

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FDIs

erbia is on the way to becoming an EU country candidate, and Vojvodina, with Banat on the north east, is a member othe DKMT Euro region - (Danube Kris Mures Tisa). The DKMT Euro region covers southern Hungary, westernRomania and Vojvodina (northern Serbia). Banat as bordering region, is a gateway to the European Union for the

countries of the Southeast Europe (SEE), facilitating faster integration of the SEE region into the European Union.

The region of Banat provides a secure investment environment, guaranteed by legislation that is in line with EU practices andby the national and regional governments that are willing to assist foreign companies in the FDI establishment process.

Since Foreign Investments Law, came into force on January, 2002. in Banat was invested more than one billion EUR. Morethan 17.000 jobs were created.

The presence of high quality research and educational institutions for electrical and mechanical engineering at the Universityof Novi Sad provide support for investors in this sector.

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Export

anat export has a significant increasing trend. In past 5 years the rate of export from Banat is 55% higher than in 2002.59,01 % of total barter is export. Banat achieved 200 Mio surplus.

It is estimated that the increase of the exchange within the given period is the result of the privatization andrestructuring of the companies, the application of the preferential in the commerce on the basis of the contract on free trade with the

countries that signed the Stability Pact for South Eastern Europe, which were consolidated into a unitary CEFTA agreement, as well asthe increase of the public and consumers demand.

Food processing industry, metal, textile as wellas chemical and pharmaceuticals and disposes withcapacities as well in a number of other subsectors:construction, agriculture, tourism are basis of Banatexport. The industry of the construction materials

includes several major producers of the isolation material,bricks, roof tiles, ceramic tiles and glass.

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The best Banat export companies 2007.

no. North Banat Middle Banat South Banat

1. "Methanol & Acetic Acid Complex"Stock Company, Kikinda

Dijamant Stock Company,Zrenjanin(oil and margarine production)

HIP-Petrohemija StockCompany Panevo(production of petrochemicals)

2. Foundry "Kikinda" Stock Company,Kikinda

Radijator Stock Company,Zrenjanin(production of radiators)

Hemofarm Vrac(production of medicinalproducts and OTC)

3.Sugar Factory "TE-To" StockCompany, Senta

Fam Seanj Al Ltd, Seanj(production of auto parts)

HIP-Azotara Ltd. Panevo(production of fertilizers)

4. "Le Belier" Ltd, Kikinda(production of aluminum auto parts)

Polet IGK Stock Company,Novi Beej(production of roof tiles andceramics)

Fresenius medical care Ltd.Vrac(production of orthopedicequipment)

5."Alltech-Fermin" Stock Company,Senta(production of yeast)

Kolpa(equipment for bathrooms)

Energrom Ltd. Bela Crkva(wholesale trade of leavings andremains)

6."Potisje- Tondach" Stock Company,Kanjia(production of roof tiles)

Shipyard Begej StockCompany, Zrenjanin

West pharmaceutical servicesLtd. Kovin

7.

"Toza Markovi" Stock Company,Kikinda(production of roof tiles andceramics)

MD Tegum Ltd, Zrenjanin Rubber production company

Ratar Stock Company Panevo(grain mill products)

8."Kikindski mlin" Stock Company,Kiknda(grain mill products)

Ballistic Protective SystemsAgroziv Stock CompanyPanevo(meat production)

9.

" itopromet-Mlin" Stock Company ,

Senta(grain mill products)

Proizvodnja Mile Dragi

(production of protective andtactical military gear and sportsapparel)

Vrsacki vinogradi Stock

Company Vrac(vine and brandy production)

10. "Banini" Stock Company, Kikinda Banat Oil Factory, Nova Crnja

Utva silosi Stock CompanyKovin(production of tubes, silos,profiles and equipment)

Development opportunities

anat is a growing region intent on changing perceptions and working to be one of the best places in Serbia to dobusiness. We urge you to consider the benefits of the Banat region when starting or expanding your business.

The following list of inter-related factors covers most of what matters for further economic success:

1. Government a state providing effective rule of law and social programs2. Talent an adequate work force of healthy, capable people3. Technology the capability to develop, adapt and implement new technologies4. Infrastructure reliable and adequate transport and communication systems

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Human resources

Valuable Human Capital

ne of the most important assets of the region is human resources. Banat can offer to any potential investor its locatechnical expertise and management talent with international experience. Well-educated young professionals are

able to communicate in English.

Employment

mployment in the Banat region has increased significantly in recent years. With a GDP growth, this increased jobcreation is expected to continue and improve the areas labour market conditions. The greatest increase of theemployment rate compared to March 2006 was registered in North Banat district and it was 44,1% of the total numbe

of the employed citizens.

Unemployment

nemployment rate for Banat is 34%. 51,9% of the actively unemployed citizens are women, which is 5,1% less than atthe end of March 2006.To improve employability through the development , network of relevant Banat institutionsprovide vocational trainings and create in partnership new jobs.

OE

DistrictThe employment rate

increase March2006-7 %

Satified needs foremployees in Banat

%

South Banat 6,1 % 89,4%

Central Banat 38,3 % 81,2%

North Banat 44,1 87,1%

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Education: Banat highest level of schooling

he Banat region offers diverse educational opportunities for all, and is becoming recognized locally nationally andinternationally. There are many educational opportunities at all levels of study to help students increase their chances osuccess.

Technical Faculty Mihajlo Pupin produced more than 4000 graduate students in area of IT, mechanic, polytechnic, and

management. Last year there were more than 550 graduate students in 18 profiles. At the moment about 3000 students from Banat,Vojvodina and Serbia are attending the Faculty. www.tf.zr.ac.yu

TECHNICAL HIGH SCHOOL Educates profiles needed for the economy of the Region in machine, food and textile industry. So farmore than 5000 students got the engineer diploma. The school also has a dormitory for 240 students.

High school education follows current economic and development trends. Our 42 schools offer a full range of programsincluding those for children with special needs and programs at the secondary level, which involve practicum placements in localbusinesses.

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Infrastructure

Access and Transportation

anat is in close vicinity and it is well connected with the of two high-priority Pan-European Corridors which enables efficientransportation of goods and services to the end users:Corridor X:highway Salzburg-Thessalonica, including branchesBudapest-Belgrade and Nis-Sofia-Istambul) and Corridor VII: the river Danube, with access to the Black Sea, and North Sea

through Rhine-Main-Danube Canal.

Banat has a dense and spread out traffic network, especially the roads which are length of 2234km.

Main road are directions from Belgrade-Zrenjanin-Kikinda-Romanian andHungarian border (130 km), Belgrade-Panevo-Vrac-Romanian border (120km)Novi Sad-Zrenjanin-Srpska Crnja-Romanian border (110km). Apart from theseroads which are of regional character, Banat also has a high quality network ofroads of local character all settlements are connected with asphalt roads tomunicipal centres.

The most significant direction, of the highest quality as well is BeogradPanevo-Vrac-Romanian border, where there are conditions for normal andsecure maintenance of traffic.

Two rivers at the same Banat borders - the Danube and Tisa are able toprovide conditions necessary for traffic as well. Rivers Tami and Begej can alsobe used. Port Dunav is of strategic importance to Banat. It is on 1153 km of

Danube, 15 km upwards from Belgrade. The port covers an area of 240 ha which belongs to Panevo municipality and has highestoverturn in the state.

Banat has the finest developed agricultural airplane system and airports for these purposes in Panevo, Kovin, Eka nearZrenjanin and Vrac.

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Agriculture

anat used to be marshy, and when it was dried out, it became one ofthe most fertile regions in Europe. The inhabitants deal withagriculture, and all types of grains, especially wheat and corn are

produced. The important cultures are also tobacco and sugar beet. Grape growing isdeveloped near the towns of Vrsac and Bela Crkva.

Banat area has 739.281 ha of good quality arable land (carbonate black soildominates) which is 75.2% of the total area. Private agricultural land is 65% of allagricultural surfaces.

Besides primary agricultural products, Banat is well known for thesignificant production of different kinds of high quality seeds and materialsVegetables like potatoes, cabbage, tomatoes, peas, paprika, etc. are also

grown. The largest production of paprika is in northern part of Banat, neaCoka, Kikinda and Novi Knezevac. This is where special type of groundpaprika is being produced by the famous food processor "Aleva" from NovKnezevac.

In the area of agriculture, the most common cultures are grains like corn and wheat, and the industrial crops like sugar beatand sunflowers.

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Quality of life & Leisure

he Banat region is a business friendly environment rich in opportunities for business, personal, family and economicgrowth. Successful businesses operating create new sustainable jobs that contribute to the enhancement of a quality olife. With a focus on talent, innovation and sustainability, region is abounding with opportunity and potential. Solid

economic performance, lows costs, high productivity - combined with a quality of life = Banat

Banat is a growing, progressive community, with a diverse economy and a good quality of life.

The region keeps and cherishes its multinational and multicultural nature, earned over the centuries. Kitchen is very diverseand has a wide variety of different meals.

For a start, if you want to live in Banat you have to adopt several principles: tolerance, respect for guests invited and uninvitedyou have to hold onto your word and make decisions. Also, you have to carry this plain in your heart and share your energy with otherpeople. Living here, you can enjoy city amenities, while it takes only about 20 minutes to get from one end of the city to another.

Health care system is well developed. Banat has a long tradition in health care institutions. Each municipality has Health carecenters while hospitals are in Pancevo, Vrsac, Kikinda and Zrenjanin.

Protection of persons who due to economic reasons are not able alone to care among them, as well as of disabled, who dueto illness or other reasons are not able to do it alone has good practice in Banat. This relates to children, as well as adult population.

A region with a population of around 700,000 is often considered to be recognized as the hub of arts and culture activity. Oneonly needs to explore the museums, the galleries, the festivals, the restaurants; the music scene, the cultural events - and you willdiscover a diverse and vibrant community

There is a long tradition of numerous cultural and tourism events on Banat territory testifying that its citizens love their regionand their life in it. The events are based on motifs from everyday life and some of them have decades long traditions. Vrsac VintageFestival of Folklore Creation of the Romanian inhabitants and Bora Kostic Memorial in Vrsac; Beer Festival in Zrenjanin; Ludaja Daysin Kikinda; Evenings at Lipar in Srpska Crnja; Easter Eggs Wrestling Championship and Cockfights in Mokrin are some of the most

interesting events.

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Stari Begej - Carska bara

t is located in the area between the rivers Tisa and Begej and it covers thearea of around 1.600 ha. It is a habitat to a large number of rare birds andplants and it is the only place in Serbia where 8 types of herons make their

nests and where the yellow lilly grows. It is registered on the list of nature reserves

under the protection of the UNESCO.

Deliblatska Pescara - "The Desert in Europe"

he most famous excursion spot in Banat direction is Devojacki Bunar inDeliblatska pescara (about 40 kilometres from Beograd). This SmallSahara, the only desert in Europe, the names given to Deliblatska

pescara, is no longer a desert. Trees and grass that were planted there have tamedthe sand, and the desert is now a very attractive region. It is covered by woods ofevergreens, acacia and white poplar, which shelter small and large game (hares,

foxes, wolves, wild boar, deer). Partridges, quail, pheasants, wild duck and birds ofprey also make up part of its natural richness. The Pescara is full of flowers, their scentand of bee hives. The dunes are mostly under orchards and vines.

Spa tourism

here is a long history of spa tourism thanks to the abundance in termaland mineral waters. Kanjiza spa is located in the north of Banat. Itspecializes in treating rheumatism, nervous system and spinal

disorders. The spa is used both for therapeutical purposes and for relaxation.

Since 1867 SPA Rusanda Melenci, offers to all of its guests medicaltreatment tradition based on mineral peloid, which is considered as one of the mostsanative muds in Serbia. SPA Rusanda offers medical treatments of: illness' of thecentral and peripheral nerve system, rheumatism, deformations in children growth andmedicine rehabilitation.

Bela Crkva lakes

he Camping site ''Belocrkvanska jezera'' is situated on the City lake in the verycenter of Bela Crkva, 100 km east of Belgrade. The municipal territory has sevenlakes nicknamed "The Pearls of Banat", which explains the nickname of "Venice

of Vojvodina" given to the town. The capacity of the camp amounts to 100 camping units. Thegreen oasis of a 100-year-old forest, as well as the variety of sport and recreation contents,characterizes this camp. It is very popular among fishermen.

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Kikinda Mammoth

ammoth, one of the most impressive mammals that ever walked theearth, is the distant relative of elephant and it lived in Pliocene epoch,from 1.8 million years ago to 10 000 years ago. The most famous

representative of this specie, whose remains were found in Europe, Africa, Asia and

North America, is a frozen mummified baby called Dina, which was found in Siberia in1901.

The whole excavation site near Kikinda, with all the findings, is of great significance for paleontology because it providesevidence on the existence of refugium, ie. the refuge for a great number of plant and animal species which migrated from the north o

Europe towards the Balkans because of the spreading of the ice surface. PannonianPlain itself presented the misterious transition phase. It was a combat zone of thecold Central Europe climate and the mild Balkans climate. This is what created the

specific conditions for rich flora and fauna.

Considering the fact that this is an important discovery, a group of creativepeople from Kikinda Museum (www.kika-mamut.com) named this mammoth Kika andmanaged to bring the discovery closer to all those who were interested into finding oumore about the mammoth, but also about the prehistoric life in this area.

Weekend tourism

he region has numerous wekeend tourism offers. There are a large number of registered hunting grounds with rich floraand fauna which represent the potential tourism resources. Banat hunting grounds represent one of the mostperspective tourism resources of Vojvodina.

Banat has the first golf court that was built in Serbia. The whole complex covers the area of 45 ha and it satisfies the modernstandards.

The town of Vrsac is located at the very southeast part of the region and it is a centre of viticulture area. The tradition of grapegrowing and processing lasts for five centuries. The most famous types of wine are banatski rizling, pinot blanc, traminac, sauvignonblanc, muscat otonej i chardonnay.

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Cost of living

n the fourth quarter of 2007, the average available monthly budget per household amounted to about 500 . Of the totalavailable budget, the money receipts make 94.0% and the receipts in kind make 6.0%.The individual consumptionexpenditures of the households of the Republic of Serbia amounted to 470 , of which the expenditures for food and

beverages make the largest share of 39.9%.

Benefits for the foreign investors

Business Incentives

usiness registration is highly efficiently done at one place with the Business Registration Agency. The registration proceduretakes a maximum of 18 days, with the future possibility of an on-line registration.Production: from 2,000 up to 5,000 of stategrants per new job created; Services: from 2,000 up to 10,000 of state grants per new job created; R&D: from 5,000 up to

10,000 of state grants per new job created.

Tax SystemCorporate profit tax is the second lowest in Europe, VAT, salary tax and social insurance contributions are highly competitive incomparison to CEE.

VAT

The VAT rates are as follows:The standard VAT rate - 18% (for most taxable supplies);The lower VAT rate - 8% (for basic food stuffs, daily newspapers, utilities etc.).

Corporate Profit Tax

Corporate profit tax is paid at the uniform rate of 10%. Non-residents are taxed only based on their income generated in Serbia. Thetaxable base is profit determined by adjusting the accounting profit as stated in the profit and loss statement and in accordance withIFRS, accounting legislation, and the provisions of the Corporate Profit Tax Law.

Personal Income Tax

The personal income tax rate is 12% for salaries, while other personal income is predominantly taxed at the rate of 20%.

Social Insurance Contributions

Social security contributions are paid by both the employer and the employee. The base for calculation of social security contributions

is the gross salary. The minimum base for contributions is 40% of the average monthly salary in Serbia, while the maximum base is 5times the average monthly salary.

Company Registration

Business registration is highly efficiently done at one place-with the Business Registration Agency. The registration procedure takes amaximum of 18 days and the total cost amounts to $335. The minimum capital to establish a company totals 10,000 or 25,000 for aJoint Stock Company, and 500 for a Limited Liability Company.

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Successful stories

We made some recommendations based on our experience in Zrenjanin municipality and thus affectedthe decisions of the other investors to join us. Out of all the locations we saw in Serbia, in cooperationwith SIEPA, this was the only one with the appropriate infrastructure and the capacity of electric energynecessary for successful production. It is equally important to emphasize the well trained humanresources. The second step is the cooperation with Zrenjanin municipality, which was better comparedto the ones in the vicinity, and also the cooperation with the National Employment Service, which helpedus chose good quality staff. I have only positive impressions from Zrenjanin. People are hospitable.They gave me the strength and will to stay and now I have many friends.

Adolfo Carlo Perosi

Deputy Director

Fulgar East

We chose this location because our product is time limited and we needed to find the team which wouldbe able to respond to that request. I have very positive impressions on the cooperation with themunicipality which responded every time we asked for help. Our staff is motivated and interested in their

job, so we almost have no problems. The culture and people who are ready to accept innovations and tocarry out their work made the strongest impression on me.

Jorg Pachnatz

Plant Manager

Draxlmaier


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RDA Banat

orking together with partners, RDA Banat performs the roll of the leader of the economic development on Banat territoryby:

- defining key priorities on Banat territory (three Banat districts)

- contributing to the use of the available resources according to the priorities

- bringing partners from all sectors together and encouraging them to achievebetter results,

- promoting awareness of Banat opportunities.

We have grouped our policies under the three main components:

1. Business2. Infrastructure3. Human Resources

Services regarding the promotion of local and regional development Banat:

1. Implementation of the policy of the development of the SME sector2. Preparation of Banat regional development strategy3. Support to municipalities4. Preparing and leading the grant projects

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Contacts:Beogradska 11, 23000 Zrenjanin

Tel/Fax: +381(0) 23 510 [email protected], [email protected]

www.rcrbanat.rs

Economic Profile Aug 2008

Documents

Transcript of Economic Profile Aug 2008