Dagmar Repcekova, Ambassador of Slovakia to Serbia – Skilled labor force and state subsidies Serbia's advantages

(Dagmar Repcekova) The existing overall understanding of our two countries is a natural positive element of any bilateral trade or investment, Dagmar Repcekova, Ambassador of Slovakia to Serbia, says in her interview for eKapija.

She explains that Serbia offers skilled labor force, which is attractive for Slovak companies trying to increase their efficiency. She also emphasizes that the government of Serbia is making a strong effort to motivate foreign investment, providing subsidies to foreign companies starting new ventures in less developed regions.

– With the deepening of the EU integration effort of Serbia the business environment is constantly becoming more harmonized with EU standards and so more favorable for Slovak companies.

As for the shortcomings, the ambassador mentions “existing problems troubling our companies – endless queues at the borders, complicated communication with government authorities, for example when needing concessions or various permits”

– There are also the reasonless waiting periods for responses from officials – resulting in many business opportunities being finally diminished or lost, and our companies also claim the often changing regulations.

eKapija: In the past months, the attention of the Serbian public has been drawn by the situation in Gosa and the problems that occurred between the (now previous) owner, the Slovakian company ZOS Trnava, the workers and the state. Gosa is now on its way to bankruptcy proceedings, and many issues remain open. How familiar is the Embassy with this case?

– We have been informed about this case just when things erupted. Unfortunately an Embassy generally is not mandated to interfere in private business or judicial decision-taking. Looking back, things could have been done by all stakeholders to avert existing state of affairs. Goša was also affected by the general crisis in the steel industry and a lack of public contracts in Serbia.

eKapija: Slovakia is one of Serbia’s most important trade partners. According to your data, what did the trade between Slovakia and Serbia amount to last year?

– The total trade in 2017 is estimated at EUR 711 mil, which is the highest level in the past 6 years, 33% higher than the previous year (2016).

And first time in the history of our common trade cooperation, Slovakia has reached a negative trade balance with Serbia – with EUR 368,13 mil valued by Serbian imports, while just EUR 342,87 mil has been exported from Slovakia.

As for the composition of trade, the largest segments of Serbian export to Slovakia is connected to needs of the Slovak automotive industry – wires, cables, products of iron or non-alloy steel. Of course, also agricultural products such as sunflower seed oil form a part of this.

On the other hand, Slovak export to Serbia consists mainly of electrical devices for telecoms or televisions, car parts, paper, and other industrial products.

eKapija: Perhaps one of the most well-known investments of Slovakia in Serbia is the aquapark in Backi Petrovac, which shows that investments don`t always have to be made in the domain of industry and production. In which fields can companies from the two countries establish cooperation?

– Slovak companies have accumulated a lot of specific and direct experience, during our accession, particularly in the areas of water management and the energy sector (both he generation of energy and heat, as well as moving towards better energy efficiency). Slovak companies have solid and quite fresh experience with creation of the related infrastructure, required by strict EU regulations and acquis.

For example, the area of water cleaning management is one, or renewables, where Slovakia has already successfully covered most of its territory, while there still remain a lot of opportunities in Serbia.

eKapija: How often do Slovakian businessmen turn to you for advice as to how to reach the Serbian market and how do you present Serbia as an investment destination to potential investors?

– Being a small country, with a history of international trade executed by state institutions, businessmen coming from Slovakia to Serbia contact the Embassy quite regularly.

We try to assist in promoting bilateral trade, and always strongly encourage our businessmen to invest in Serbia. We are happy to present Serbia as a modern fast growing country with a lot of trade and investment opportunities.

eKapija: How many Slovakian companies do currently do business in Serbia? How present are Serbian companies in Slovakia?

– According to our information, around 358 Slovak companies are currently registered in Serbia. A few dozens of them are in regular contact with our Embassy. As for Slovakia, definitely over a hundred companies having Serbian owners are active there.

eKapija: How important is the existence of the Slovakian-Serbian Chamber of Commerce for the strengthening of business connections between the two countries and to what extent is the Embassy involved in the chamber`s operations?

– The Slovakian-Serbian Chamber of Commerce is a useful platform for entrepreneurs of both countries to learn more about doing business and building partnerships among the two countries.

In addition to advising on the establishment of companies in Slovakia and Serbia, the Chamber has been providing accounting, economic and legal advice through various business forums, such as last year`s energy investment opportunities in Serbia.

eKapija: Increasingly more citizens of Serbia have been leaving for Slovakia in the past years looking for a better job. Are there statistics about the precise number of people and in which fields there is a deficit of workforce in Slovakia?

– After joining the EU, Slovakia also struggled with the labor force leaving to other member countries, especially of young people. Today we implement special programs to motivate them to their return – with small success.

At the same time, the level of economic and social development has turned our country to an attractive one for workers from third countries, including Serbia.

In November 2017 we registered 10,811 Serbian citizens working in Slovakia legally. Out of this number, 8,516 were authorized to work on the basis of the so called “information card” (issued for citizens belonging to Slovak national minority) and 2,295 were authorized through individual labor offices.

eKapija: Lately, media have been reporting on various problems faced by citizens of Serbia working in Slovakia. What is the situation with Serbian workers in your country like, in fact, and how does your state take care of their position?

– At present, Serbian workers – or foreign workers outside EU member states generally – could be employed in Slovakia just for a limited time of max. 2 years.

It is regretful that there were several instances, when they did not have appropriate working conditions. Providing inadequate accommodation and an inadequate working environment, unfair and misleading behavior towards employees are, of course, practices do not have place in an EU country in the 21st century. The responsible governmental authorities of both countries are in regular contact and agreed on a control mechanism and exchange of information. So far, it is working.

eKapija: How do you see the current state of the economic and the political relations of our two countries?

– Political relations between our two countries are indeed very good. Both countries had developed far-reaching economic and trade relations already at a time when they were part of their original state bodies - the former Yugoslavia and Czechoslovakia.

In addition to traditional production and business cooperation, we are interested in developing economic cooperation in setting up joint ventures and exporting Slovak investment, especially in the field of energy projects, transport infrastructure, environmental protection, agricultural production and technologically intensive industries. Another promising area is the tourism.

The challenge for both countries is to develop new partnerships in the field of innovation and new (green) technologies and, of course, to collaborate closer on EU based projects and programs.

The Intergovernmental Slovak-Serbian Commission for Economic Cooperation connected with a business forum also contributes significantly to the increase of mutual economic cooperation. Its next meeting should take place in the first quarter of 2018 in Bratislava.

eKapija: As a member of the EU, Slovakia actively supports Serbia on its way to joining the EU. How would you rate the results Serbia has made so far in that respect?

– We see Serbia as a key country for maintaining stability, security and prosperity in the region which is in our immediate neighborhood. Our relations are based not only on geographical and linguistic proximity, but also on the strong support of reform processes and EU integration efforts.

By December 2017, Serbia has managed to open 12 EU negotiation chapters, 4 of them during the Slovak Presidency in 2016.

During 2017, the Slovak Embassy in Belgrade supported the creation of a framework for cooperation on systematic capacity building and transfer of pre-accession experience in the area of public finance management.

Furthermore, Slovakia joined the implementation of the twinning program "Development of consumer protection in Serbia“, which will be implemented by the Hungarian-Slovak consortium during 2018 and 2019. In the near future, Slovakia will focus primarily on the delivery of digital solutions in the field of public administration and project for the local self-government.

During 2017, a total size of 45 Slovak police officers was sent to Serbia in 4 rotations, together with police officers of other European countries, which increased protection of the Serbian-Bulgarian border with the aim of fighting illegal migration.

eKapija: Serbia and Slovakia are also bonded by strong cultural and historical ties. What is cooperation between Slovakia and Serbia like in other fields and how does your embassy promote Slovakia in Serbia?

– We participate actively in cultural activities of the Slovak minority in Vojvodina and also assist them in other areas which they might need. Cultural cooperation is one of the main means of maintaining a Slovak element outside the borders of Slovakia itself.

Apart from that we organize cultural events aimed at Serbia generally (The Night of Architecture in Belgrade, exhibitions of Slovak painters and photographs, presentation of Slovak wines, etc.). In the area of education we support mobility programs for students and teachers.

Milos Vlahovic

Ambasada Republike Slovačke Beograd

Aqua park d.o.o. Petroland Bački Petrovac

Fabrika drumskih vozila Goša Smederevska Palanka

Dagmar Repcekova

Embassy of Slovakia in Serbia

Slovakian embassy in Serbia

Slovakian investments in Serbia

export to Slovakia

import from Slovakia

trade between Serbia and Slovakia

subsidies for foreign investors

Gosa

ZOS Trnava

merchandise trade between Serbia and Slovakia

aquapark in Backi Petrovac

Slovakian Serbian Chamber of Commerce

job in Slovakia

working in Slovakia

Slovakian national minority in Serbia

Slovaks in Serbia

former Yugoslavia

Czechoslovakia

Intergovernmental Slovakian Serbian Commission for Economic Cooperation

negotiations of Serbia with EU

European integration of Serbia

Development of Consumer Protection in Serbia

Slovakian minority in Vojvodina

Slovakian companies in Serbia

Slovakian investors in Serbia

from an ambassadors angle