OCTOBER 2018

ĐorĐe MilićevićVice-president of the Provincial Government

We have started down the road of developing a modern and stableSerbia in the last several years, when we commenced overall reformsof our society. During that period, significant results were achieved,

foremost in the field of restructuring our economy: the fully implemented consolidation of publicfinances, Serbia’s significantly reduced public debt and a continuous growth of GDP year aeryear, infrastructural facilities are being rapidly built and the incentive mechanisms for investinghave been developed in order to create a quality environment for attracting national and foreigninvestors and thus increase overall economic activity and reduce the unemployment rate. Whilecontributing to all these results, the Provincial Government has been implementing the policyof the balanced development of the Autonomous Province of Vojvodina within the acceleratedeconomic development of the Republic of Serbia on its European path.

Just in the last two years, by using our own funding sources, as well as the funds from the cross-border and transnational cooperation programmes with Hungary, Romania and Croatia, weinvested in the development of traffic and utility infrastructure and establishment of industrialzones in those territories that did not have them before, providing the potential investors themost suitable conditions for doing business in all parts of Vojvodina, but also in relation to theneighbouring regions and the West Balkans regions in general. To potential investors, we offergood connection of all parts of the province with the European corridor 10 and corridor 7 whichallows them faster access to other markets and cost-effective distribution of products in theregion as well as significant subsidies for creating new jobs and purchasing equipment and aworkforce with knowledge and quality that boosts the competitiveness on the market throughan optimal ratio between cost and productivity. e fact that the tax rates are among the lowestin Europe, and that Serbia’s trade agreements with numerous countries offer investors access tothe market of about 1 billion consumers, allows us to say that Vojvodina is uniquely positionedsince it allows companies to serve their global markets from a single location. Having consideredall potentials for business development that AP Vojvodina as a region provides, we inviteinvestors to use all comparative advantages that we offer, as well as the possibility to find partnersin Serbian companies for their further business development. e goal of the ProvincialGovernment is to provide all citizens with the best living conditions, no matter where they livein Vojvodina, and that is why we are already building a future of our province and our countryof Serbia, by strengthening the European spirit while achieving the highest European standards.Because Vojvodina is a region that is great for business and great for life!

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DAMir ZoBeniCAVice-President of the Assembly of European Regions - AERVice-President of the Assembly of AP Vojvodina, Republic of Serbia

Connecting regional governments, businesses and iT!

Interview with Damir Zobenica, Vice-President of the Assembly of European Regions - AERVice-President of the Assembly of AP Vojvodina, Republic of Serbia

Q: AP vojvodina was the host region of the AutumnPlenaries of the Assembly of european regions (Aer)this September. Could you give us your impressions?

e region of Vojvodina is well-placed in terms ofestablishing interregional cooperation, business potentialsand information technologies (IT). is September we hostedthe Autumn Plenary sessions of the Assembly of EuropeanRegions (AER) with nearly 100 elected politicians and otherdecision makers from European regions. On that occasion,we talked about how the opening of public data supports theemergence of startups in the regions. Every day, publicinstitutions collect and generate enormous quantities of datain areas as varied as unemployment, air pollution, hospitalconsultations, trends in construction, petrol & diesel prices,wood harvesting, organic dairy production etc. Suchinformation created within countries could be re-used tocreate or improve services both for the private and publicsector. I am proud to say that Serbia is ranked number one inthe region by e Global Open Data Index (and takes the 41stplace among the UN member states) and that Novi Sad, asthe busiest growing IT hub in the Republic of Serbia, withmore than 15K IT workers, is already using Open data toimprove the lives of its citizens. e conclusions of thisconference, which was moderated by the UNDP betweenEuropean regional stakeholders and various Europeaninstitutions, could be directly applied by regionaladministrations in order to produce better results and createbetter standards of living at the local or regional level.

I am especially pleased to be the part of the regionalgovernment of Vojvodina that recognizes these opportunitiesand creates now possibilities for its citizens.

Q: AP vojvodina also hosted the First regional BusinessForum. it was your initiative, as a newly elected vice-President of the Assembly of european regions toconnect regular Aer events with regional business. Wasit successful?

This September, together with the Assembly of EuropeanRegions, Vojvodina Chamber of Commerce, EuropeanEntrepreneurs Network and Vojvodina RegionalDevelopment Agency, we organized the first RegionalBusiness Forum with the participation of more than 80companies from the Western Balkans, Central andNorthern Europe and Russia. The aim of the RegionalBusiness Forum was to connect regional chambers ofcommerce, regional development agencies and/or otherinstitutions supporting SMEs development and enhancethe regional investment climate. I am excited to see that thefirst business forum produced good results and I believe itwill become a traditional event, giving regions a range ofopportunities to connect, not only culturally andhistorically, but at the commercial and business level aswell.

e Serbian economy grew by a big 4.5 per cent year-on-yearin the first quarter of 2018, well above the forecast of 3.1 percent. is data, provided by the Statistical Office of theRepublic of Serbia, shows that we are growing fast, not onlyin the field of IT sector, but in the construction business too,supported by both private and public investments. egovernment has already started a new public investmentcycle, planned for the last quarter of 2018. With Serbiamoving towards the EU, our successful foreign policy alsoensures excellent business relations with the Chinese, Turkishand Russian market. With this in mind, we have decided tohelp organize and host the First Regional Business Forum inVojvodina.

e range of our interregional activities does not revolvearound the cooperation with the AER only, but also includesmeetings and exchange of experience and good practice withrepresentatives of Baden-Württemberg, Hessen, LowerAustria, Hainan, Timis, Istria, Lombardy, Nordland and manymore.

Vojvodina Great for Business, Great for Life 3

ognjen Bjelić Provincial Secretary for Regional Development,

Interregional Cooperation and Local Self-government

First of all, it is my pleasure to present the activities of theAutonomous Province of Vojvodina within the EuropeanWeek of Regions and Cities. We regard the cooperation

within the EWRC as one of the key priorities within our activitiesbecause the tradition of organising this event has proved its valueand also proved to be an excellent way for Vojvodina to presentits development potential and good results, as well as to expanda platform for stronger ties with the European regions and citieswith whom we share common interests.

On the basis of all that we have achieved in the last two years,primarily the aligned modernly designed and efficientmanagement structure with significant scope of autonomouscompetences, the focus of 2018 has been the continuation ofimplementing the accelerated economic growth of AP Vojvodinaas one of the key priorities of this provincial administration.

e Provincial Secretariat for Regional Development,Interregional Cooperation and Local Self-government, which Ioversee, has a great role in that and this is reflected foremost inthe activities we carry out, in cooperation with the VojvodinaDevelopment Agency and European Affairs Fund of APVojvodina, to further create good and favourable factors for theinvestment climate. Firstly, these are the incentives which areallocated through public calls to small and medium-sizedentrepreneurs to single-handedly improve the overall economyand encourage solid business entities to increase the export ofdomestic products and services to foreign entities. is hasresulted in 1100 new jobs anticipated by the award of fundsthrough only two previous public calls implemented this year.

On the other hand, simultaneously we have successfullycontinued to invite public calls which encourage local self-governments to implement projects that stimulate growth andimprove administrative, operative and managerial capacities. Wehave also continued to prepare and complete project technicaldocumentation for the equipment of industrial zones which arethe prerequisite for a successful attraction of investments.

What proves that we are on the right path is foremost the greatinterest of potential foreign investors of various profiles andforeign capital inflows into the production and service sectors,which is mostly demonstrated by the overall scope of directinvestments in the form of greenfield investments.

Today, almost all larger municipalities in Vojvodina can boastwith at least one significant successful foreign investment inproduction or service capacities, which equals the creation ofnumerous new and secure jobs for us.

Our aspiration to achieve comprehensive development ofVojvodina is a clear indicator of the political strategy for Serbia'saccession to the EU and creation of an institutional and regulatory

environment that willbe, in all aspects, alignedwith European standards,because we have the potentials thatgive us the basis for such a political attitude.

Furthermore, initiating and implementing good projects of cross-border cooperation with Hungarian, Romanian and Croatiancounties is also very important for us, and in that regard, we havebeen delivering great results. During this year, we have laid thefoundation stone for the Serbian Cultural Centre in Mórahalomwithin the cross-border cooperation project with Hungary. Wehave also formalised the start of a project worth 14 million EUR,which will re-establish the navigation possibility on the river Begejas part of a cross-border cooperation project with Romania.ese are just a few of the projects that will contribute to themutual benefit and welfare of citizens in the border areas. Ofcourse, the Provincial Government, led by the President IgorMirović, does not neglect the vitality of the domestic economy,nor does it treat it differently. e foreign investments are crucialfor us not only because of the spillover effect, but because theyundoubtedly speak of our approach to European business anddevelopment practices, which is the strategic goal of the SerbianGovernment.

In the domain of interregional cooperation, numerous contactsand cooperation have been achieved, which in 2018 alone haveproduced three signed agreements: the Cooperation Agreementbetween Lubusz Voivodeship and AP Vojvodina, concluded inZielona Góra in Lubusz Voivodeship, the Memorandum ofCooperation between Ústecký Region (Czech Republic) and APVojvodina, concluded in Ústí nad Labem and the Agreementbetween the Government of Arkhangelsk Oblast (RussianFederation) and the Autonomous Province of Vojvodina(Republic of Serbia) on the trade, economic, scientific andtechnological, social and humanitarian cooperation, concludedin Novi Sad.

It is very important to mention that we participated at the 8thAnnual Investment Meeting in Dubai and a major investmentfair in Munich. We presented the economic and investmentpotentials of Vojvodina at the Danube Festival in the Province ofBaden-Württemberg and Trento in Italy which resulted in thearrival of the Italian investor Ghezzi to Vojvodina.

Finally, I must emphasise that the Representative Office inBrussels gives us an important impetus in all our activities. Itsoperational, organisational, technical and human resources havebeen raised to a higher level, which contribute to the increasingnumber of interregional contacts and the expansion of areas ofregional network projects, that are the basis of substantialcooperation agreements which we effectively apply.

4 Vojvodina Great for Business, Great for Life

ViDoSAVA EnDErićDirector of the European Affairs Fund of Autonomous Province of Vojvodina

Project activitiesIn cooperation with the provincial administration, localauthorities, regional and other European partners and relevantentities, the EAF APV creates and submits project applicationsunder the open EU calls for proposals and other donors, andimplements the approved projects. So far, the EAF APV hassubmitted applications for the EU financial assistance providedfor the Republic of Serbia, and thus to the Autonomous Provinceof Vojvodina, via the Instrument for Pre-Accession Assistance(IPA), including the Cross-border Cooperation Programmes withCroatia, Hungary, Bosnia and Herzegovina and Romania and thetransnational programmes: the Adriatic-Ionian TransnationalProgramme and Danube Transnational Programme, as well asthe EU programmes available to the Republic of Serbia, such asEurope for Citizens, the Directorate-General for HumanitarianAid and Civil Protection - ECHO, etc. In addition, the Fund hasapplied for funds provided by other donors, such as CentralEuropean Initiative, Friedrich Ebert Stiung, Slovak Aid, DutchMinistry of Foreign Affairs, Austrian Development Agency, etc.e EAF APV is currently implementing 12 projects, whichoverall budgets exceed 17 million EUR, in the area of socio-economic development, sustainable energy resources,environmental protection, water management, public health,tourism, innovation, entrepreneurship, sports and culture.Training coursese European Affairs Fund of AP Vojvodina organises trainingcourses in the field of project cycle management, participation in EUcalls for proposals, as well as other development programmes offeredby Europe. e training courses are of different types, such as theSpecialised Programme “Management of Regional Developmentthrough EU Funds” implemented in cooperation with universities,the tailor-made training course "EU Funding Opportunities" lasting3 or 5 days, visits to municipalities “FEP Tours”.

e training courses are aimed at employees of the provincialgovernment, provincial administration, local authorities,development agencies, chambers of commerce, public utilityenterprises, faculties, research institutes, civil society organisationsand other institutions that may be beneficiaries of EU funds.• Specialised Programme “Management of RegionalDevelopment through EU Funds“e European Affairs Fund of AP Vojvodina has implementedfour cycles of the Specialised Programme “Management ofRegional Development through EU Funds“ and the fih cycle isongoing. e main objective of the Programme is informationdissemination on EU processes and regional policies, as well ason the importance and opportunities for accessing EU funds. Sofar, ca. 170 participants have completed the Programme and theyare now contributing to the development and EU integrationprocesses in their surroundings.

Antenna of Creative Europe Culture Desk SerbiaBased on the signed agreement between the European AffairsFund of Autonomous Province of Vojvodina and the Ministryof Culture and Information of the Government of theRepublic of Serbia, the Antenna of Creative Europe CultureDesk Serbia was established in the premises of the Fund. iscreated the conditions for information dissemination aboutthe programme and calls for proposals, provision of trainingcourses at interested institutions, consulting and technicalsupport to potential applicants, as well as the overallpromotion of the Creative Europe programme - Culture sub-programme. e EAF APV invests great efforts into enhancing cooperation

with regional and localauthorities, internationaland European organizationsand institutions, as well as

e European Affairs Fund of the Autonomous Province of Vojvodina (EAF APV) was established in 2010 by the ProvincialAssembly Decision to monitor, analyse and implement the European integrative processes and build and strengthen theinstitutional capacities of the Autonomous Province of Vojvodina.

e EAF APV has been contributing to the institutional capacity building of the Autonomous Province of Vojvodina for anumber of years, developing and implementing joint projects with regional and other European partners, promoting commonEuropean values in Vojvodina, conducting educational activities in the field of European integrations, and through theVojvodina European Office in Brussels, presenting, promoting and increasing the economic, scientific, cultural, educationaland tourist capacities of the AP Vojvodina.

European Affairs Fund of Autonomous Province of Vojvodina

other stakeholders, and promotion of common European values and ideas tothe public through the media and by organizing different types of events. us, marking the European Year of Cultural Heritage, the 2nd InternationalExpert Conference “Cultural Heritage – Added Value for the Regions” washeld at the Assembly of the Autonomous Province of Vojvodina on 27 April2018. It was organised by the Institute of the Regions of Europe (IRE), andsupported by the European Affairs Fund of AP Vojvodina, Assembly of theAutonomous Province of Vojvodina, Provincial Government, CentralEuropean Initiative (CEI), etc. e aim of the conference was to present best-practice examples for preserving cultural heritage in different Europeanregions, and exchange experiences and knowledge for conservation.

On 17 May 2018, in cooperation with the Provincial Secretariat forRegional Development, Interregional Cooperation and Local Self-government, Congress of Local and Regional Authorities, VojvodinaDevelopment Agency, City of Novi Sad, City of Subotica and KanjižaMunicipality, the EAF APV organised the conference “Prospects forDevelopment of Municipalities through EU Funds“, which was held atthe Assembly of AP Vojvodina, with the aim of strengthening themunicipalities and cities in the Autonomous Province of Vojvodina.

e Vojvodina European Office in Brussels, situated in thebuilding of the Mission of the Republic of Serbia to the EU, hasbeen established to present, promote and increase theeconomic, scientific, cultural, educational and tourist capacitiesof the AP Vojvodina. Of special significance is the role of theoffice regarding the European integration path of Serbia, whereour representatives are in the position to monitor andcontribute to various EU policies, such as regional policies andcohesion perspectives.

Our presence in Brussels offered us the opportunity to present ourinterests to various European partners in different sectors. In thatregard, to promote policies and investment opportunities, initiateand encourage activities with the aim of increasing internationaltrade, seek for partners in different EU projects, exchange usefulinformation on the topics of common interest and similar. us,significant cooperation has been achieved with regions such asLombardy, Umbria (Italy), Upper Austria (Austria), Baden-Württemberg, Hessen (Germany), Flanders (Belgium), and others.

EUROPEAN AFFAIRS FUND OF AUTONOMOUS PROVINCE OF VOJVODINAVOJVODINA EUROPEAN OFFICE IN BRUSSELS

Email: office@vojvodinahouse.euWebsite: www.vojvodinahouse.eu

Vojvodina Great for Business, Great for Life 5

The vojvodina european office in Brussels

6 Vojvodina Great for Business, Great for Life

SeT SAil For vojvoDinA

Residents of Vojvodina are said to be slow, mostly dueto the fact that they speak slower than the rest ofSerbia. is slowness, however, is not the feature of

how Vojvodinians relate to their job or the hectic pace ofeveryday life. It is simply a mirror or real and inner“landscape” of Vojvodinians, their habit to stop and enjoy thesplendour of their plains and fruits of their labour.

On the one hand, Vojvodina is a quiet plain intersected withrivers, canals and a mountain, picturesque villages rich iniconography of 26 different nations providing ultimatepleasure in tasting traditional wines and food, enjoying ethnicmusic, wine and food festivals. On the other hand, living orstaying in Vojvodina means going to the EXIT festival,attending the concerts of the biggest jazz musicians at theNovi Sad Jazz Festival as well as visiting numerous theatre,movie and music festivals. Vivid and vibrant, just like the lifein the Pannonian Sea that used to cover this area long ago.

Vojvodina is a region with very strong educational centres,favourable business climate, developed agricultural and metalsector, and in particular, automotive and IT sector providinga safe harbour for numerous foreign investments: Stada,Continental, Lafarge, Grundfos, Tarkett, Nestle, Siemens,Henkel, Swarovski, Fresenius, Heineken, Norma Group,Draxlmaier, etc. Approximately 360 foreign companies have

invested around eight billion EUR in Serbia and haveemployed more than 76,000 Vojvodinians.

This Province has the highest percentage of qualified andhighly qualified labour force in Serbia, multilingualeducational system, and Novi Sad, the second largest city inSerbia, is a significant industrial and financial centre ofSerbian economy which marks a noticeable growth anddevelopment, partly because of the fact that it represents aunique centre of university education with strong technicaland scientific institutes simultaneously establishing itself asan IT hub.

A big advantage is, surely, the signed Stabilization andAssociation Agreement (SAA) and Interim Agreement onTrade between the European Union and Serbia, Free TradeAgreements with CEFTA and EFTA countries, Belarus,Turkey and Kazakhstan, and the fact that Serbia is the onlycountry outside the Commonwealth of Independent States(CIS) which has established such an agreement with Russiaadditionally opening duty-free access to a market of aroundone billion consumers.

Companies that want to set up their business in Vojvodinacan obtain several types of support: significant financialand tax reliefs provided by the republic, province or a

Vojvodina, a region in the northern part of Serbia, is a safe harbour for numerous foreign investments.

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local-self-government unit whereas the VojvodinaDevelopment Agency provides an important logisticsupport and assistance. They exist to deliver essentialinformation, to help the investors in finding theappropriate location, to communicate and negotiate withall levels of government and location owners, to positionthemselves efficiently in the new business environment, tofollow up on the business activities of the existing investors(aftercare), etc.

5 reasons to anchor your business in vojvodina:

1. Top quality workforce at competitive rates - Average NETsalary 380 EUR, total labour cost 620 EUR; 3 universities;57,776 enrolled students in 2016/2017.

2. Competitive operating expenses - Industry electricityprices lowest in the region; Greenfield average land cost 3-10 EUR m2

3. Quick access to global marketsOnly one border crossing the EU along with duty-freeexport to a number of countries; duty-free access to over 1 billion consumers.

4. Favourable tax system - Corporate profit tax rate 15%;salary tax rate 10%; VAT 20%

5. Generous incentives - Up to 50-70% of the investmentamount (by Republic of Serbia); subsidizing newemployment 3,000 -5,000 per worker (by AP Vojvodina).

Sectors in Focus

• Agribusiness - 90% of territory makes agricultural land;0.76 ha of arable land per capita.

• Automotive - Access to top OEMs -1,250 km radius; Toptechnical education, Ideal location for JIT/JIS production.

• ICT - Increase in number of IT students; experienced ITstaff; institutional support for R&D; over 250 companies insoware development and more than 50 in electronicmanufacturing.

vojvodina Development Agency (rAv) - one-stop-shopfor all investment related enquiries

RAV is established under the jurisdiction of theGovernment of AP Vojvodina. Because of our closeassociation with various state and provincial governmentinstitutions, and our extensive network of local partnersfrom the private sector, academic institutions, and businessassociations – RAV represents your trusted source forobtaining the most reliable information needed for makingan informed investment decision.

Strazilovska 2, 21101 Novi SadRepublic of SerbiaAutonomous Province of VojvodinaPhone: +381 21 4723241, +381 21 4723244 Fax: +381 21 4721921E-mail: office@rav.org.rswww.rav.org.rs

The last desert in europe and other interesting facts

• Vojvodina is a melting pot of 26 nationalities where six official languages are in use.

• is multicultural environment contributes to the wealth of historical heritage which, together with the tradition in thefood industry, makes Vojvodina an exceptional gastronomic destination.

• Deliblato Sands which stretches along the Danube near the spot where it leaves Vojvodina is a sandy terrain unique inEurope – the only desert on this continent. It is known to many as the Little Sahara.

• e Danube-Tisza-Danube Hydro system network is one the greatest hydro engineering projects up to date. Itsconstruction involved a number of technical innovations which were later copied around the world.

8 Vojvodina Great for Business, Great for Life

Boško vučurevićPresident of the Chamber of Commerce and Industry of Vojvodina

The Chamber of Commerce andIndustry of Vojvodina (CCIV) isan interest, business-professional

and non-profit organization of economicentities that connects common businessinterest in order to harmonize andrepresent the interests of members andencourage economic activities.

As part of the unique connection ofbusiness entities, the Chamberparticipates in the realization andsecuring of common interests importantfor the economy of the AutonomousProvince of Vojvodina. Members of theChamber are economic entities whoperform activities in the territory of APVojvodina.

e activities of the Chamber ofCommerce and Industry of Vojvodinaare aimed at representing the commoninterests of the economy, organizingbusiness meetings, improving andestablishing economic relations withforeign countries, organizing a uniqueinformation system, vocationaleducation, strengthening morals andgood business practices.

e Chamber is run by its members,through its representatives in the organsof the Chamber that is composed of theAssembly, the Steering Committee, theSupervisory Board and the President ofthe Chamber. e Chamber has threeassociations – Association forAgriculture, Industry and Services - allof which have boards and groups ofexperts in different fields for example inorganic production, viticulture, metalindustry and other. ese associationsare engaged in monitoring and analysingeconomic trends by sectors andproposing measures related to improvingthe working conditions of their

members. e Chamber of Commerceand Industry of Vojvodina is a place formeeting, overcoming problems,exchange of information and connectionwith the world of economy.

Last year, by adopting and entering intoforce of the Law on Chambers ofCommerce, the Serbian chamber systemwas transformed, became unique andthus created an economic network on theterritory of the Republic of Serbia andtherefore enabled the joint forces tostrengthen the economic environment,on a regional, provincial and nationallevel.

An agreement has been reached on jointaction on the reorganization andcreation of a unique chamber system thatconsists of all 19 regional chambers ofcommerce in Serbia. is means that,among other things, members of theChamber of Commerce and Industrywill, in the future, pay one membershipfee "for which they will know what theyare getting", and that appropriatedomestic or international economicprojects will be uniquely implemented,that is, faster and more efficient thanbefore.

Modernization of the chamber system ispart of the economic reforms that Serbiahas implemented in order to heal theeconomy and improve the climate forbusiness and investment, whilerespecting the principles of efficiencyand rationality, i.e. reducing costs,functionally dividing work and creatingpackages of standardized services for theeconomy to companies operating inSerbia and to potential foreign investors.Modernization has also contributed tothe intensified cooperation between thechambers of commerce and the

Government of the Republic of Serbia,especially regarding the involvement ofthe chambers of commerce in theprocess of passing and testing the laws.

An agreement was also signed betweenthe Provincial Government ofAutonomous Province of Vojvodina andthe Chamber of Commerce and Industryof Vojvodina. is agreement representsthe basis for permanent and continuouscooperation between the ProvincialGovernment and the Chamber ofCommerce and Industry of Vojvodina,with the aim of developing andstrengthening the economy of APVojvodina. We have great collaborationwith the representatives of the ProvincialGovernment, and get their support inorganizing different events that are inmany ways helpful to our businessentities.

e Chamber also cooperates withregional chambers, institutions such asuniversities, scientific institutes, clustersand many other organizations. Itespecially encourages its members toparticipate in exhibitions, organizingperformances at fairs and businessforums. We also put great effort inbringing together experts in certain fieldswho are able to inform and educate allbusinessmen who need their help. OurChamber is each day more present at theinternational fairs and business forums,some of which we also successfullyorganize. One of our main goals is to givebusinessmen the opportunities to meetregional and international partners withthe intention to connect, negotiate,expand their businesses and exchangeexperiences. e Chamber establishedprosperous synergy with other chambersabroad and signed cooperationmemorandums of understanding and