“Bulgaria attaches great importance to cooperation initiatives between China and countries of Central and Eastern Europe. For us the most important outcome of the China-CEE cooperation would be increase of Chinese investment in Bulgaria and expansion of bilateral trade”, Bulgarian Minister of Economy Bojidar Loukarsky said at the China-CEE Economic and Trade Forum held in Belgrade.
“Bulgaria offers a number of advantages for Chinese companies in terms of location for business and investment”, Minister Loukarsky said. He stressed that the country is among the European countries with the lowest budget deficit and public debt. Bulgaria continues to have the lowest tax rates in Europe. There is an option for a 2-year VAT exemption on equipment imports for investment projects over EUR 2.5 million creating at least 20 jobs. Bulgaria’s GDP growth in recent years, although lower in comparison to the years before the crisis, is above the average for EU countries. Export rates - a key driver of economic growth in the country - mark a steady increase. The tax regime, combined with the availability of skilled labor force and the lowest operating costs in Europe, makes Bulgaria one of the best destinations for business and investment. With its geographical location, Bulgaria is an important transit center between the markets of the EU, the Middle East, North Africa and Asia. The country provides specific measures and incentives to support and encourage investment in compliance with the Investment Promotion Act.
Minister Loukarski pointed out that Bulgaria highly appreciated the activities of Chinese companies in various sectors: Great Wall Motors in the automotive industry, Huawei and ZTE in the telecommunications sector, Tianjin State Farms Agribusiness Group Company in agriculture, etc. “We are ready to provide support to Chinese companies wishing to invest in Bulgaria in sectors where we have traditional advantages and those that provide high added value and increased economic competitiveness - manufacturing, the automotive industry, electronics, information and communication technologies, the chemical and pharmaceutical industry, the agriculture and food industry, the establishment of industrial zones and high-tech parks”, the Minister said, outlining investment areas of interest.
More specifically, he highlighted Bulgaria’s desire to attract Chines companies to invest in industrial zones, support for which could be gained from the National Industrial Zones Company. “One priority project we are seeking Chinese investors for is the Sofia - Bozhurishte Economic Zone. Our desire is to create a separate area within the Bozhurishte economic zone, in which Chinese companies can participate and invest. They could exploit the potential and advantages of Bulgaria as a bridge to the huge markets of the EU and the region”, Minister Loukarsky said.
The Minister of Economy proposed the first science and technology park in the country - Sofia Tech Park - as another project that Chinese companies could invest in. Bulgaria seeks international partners for the project, which provides good conditions for Chinese companies and institutions considering expanding their R & D centers in Europe.
Minister Loukarsky described converting the Stara Zagora airport into a logistics hub as another potential project of interest for Chinese investors. The project envisages the construction of three components - a cargo airport, a free zone and an industrial park, providing a convenient location for storing imported goods from Asia sold on the European market. The location is also suitable to turn the project into a major European airport hub for flights of Asian airlines.
“We wish to expand cooperation with China in the field of trade. Economic difficulties in Europe in recent years motivated businesses to seek new export growth opportunities the huge market of the quickly developing Chinese economy has to offer”, the Minister added. According to him, a number of Bulgarian products could be more widely available on the Chinese market. Facilitating the import of Bulgarian agricultural products and foodstuffs in China was of great importance to Bulgaria, the Minister pointed out. As goods with potential for wider presence on the Chinese market, Loukarsky highlighted those in the field of engineering, electronics and electrical engineering.