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In this page: FDI in Figures | Why You Should Choose to Invest in FYROM | Procedures Relative to Foreign Investment | Investment Opportunities

 

FDI in Figures

In a context where global foreign investment increased by 10.9% in 2013, in particular in Europe (+25.2%) and in Latin America (+17.5%), FDI flows to developing economies reached a new high of US$759 billion. However macroeconomic fragility and policy uncertainties are driving investors to caution.

In the absence of an adequate domestic savings, foreign investment is the main opportunity for the development of the economy. Austria and Hungary remain today the main investors. Investments of the countries of the former Yugoslavia are low given their commercial presence in the country. The investments target mainly heavy industry (mining, metallurgy, oil refining), light industries (textiles, food) and construction (cement, brick, marble), and more recently services (banking, insurance, telephone). In 2013 FDI only reached USD 135 million.

However, conditions reserved for foreign investment in this country are among the best offered in the Balkans. There has been a significant effort to harmonize economic and social laws and regulations with the EU criteria, standards and practises and these efforts are progressing steadily. 

Information on the 2013 FDI influx in this region can be accessed in the Global Investment Trade Monitor published in January 2014 by the United Nations Conference on Trade and Development (UNCTAD).

 

Country Comparison For the Protection of Investors

  FYROM Eastern Europe & Central Asia United States Germany
Index of Transaction Transparency* 9.0 7.0 7.0 5.0
Index of Manager’s Responsibility** 7.0 5.0 9.0 5.0
Index of Shareholders’ Power*** 6.0 9.0 5.0
Index of Investor Protection**** 7.0 5.9 8.3 5.0

Source: Doing Business - Last Available Data.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.

 
Foreign Direct Investment 201120122013
FDI Inward Flow (million USD) 46893334
FDI Stock (million USD) 4,7814,9435,534
Performance Index*, Ranking on 181 Economies 129--
Potential Index**, Ranking on 177 Economies 130--
Number of Greenfield Investments*** 253225
FDI Inwards (in % of GFCF****) 21.94.214.2
FDI Stock (in % of GDP) 46.051.654.0

Source: UNCTAD - Last Available Data.

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.

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Why You Should Choose to Invest in FYROM

Strong Points
The country has great advantages: 
- Salaries are low and there is high-quality workmanship;
- The country has a stable democracy;
- The procedures to create an enterprise are fast and uncomplicated;
- Geographically, the country enjoys an excellent location, it is a meeting point connecting the roads of Europe;
- The country's government has put in place several reforms in order to attract foreign investors.
Weak Points
Due to the economic crisis, the growth rate is very low and the inflation is strong. In addition, the country is again facing corruption and it has a significant foreign debt.
Government Measures to Motivate or Restrict FDI
The country's government has issued laws that provide to foreign investors the same rights as to the national ones. FYROM proposes to investors a free trade zone for purchasing and selling merchandises, a tax deduction on profits for three years, subsidies for job creation, fast procedures to  private property access, etc.
Bilateral Investment Conventions Signed By FYROM
FYROM is a member of ALECE (Central European Free Trade Agreement) since 2000.

The country has also signed agreements of free trade with Turkey and Ukraine.

In 2001, FYROM signed with the European Union an Association and Stabilization agreement and since 2005 the country has been recognized as a candidate state to the European Union.

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Procedures Relative to Foreign Investment

Freedom of Establishment
Yes.
Acquisition of Holdings
Possible.
Obligation to Declare
It is mandatory that all enterprises declare their activities.
Competent Organization For the Declaration
Chamber of Commerce (in Slavomacedonian)
Requests For Specific Authorizations
The country allows all type of investors without marketing restrictions.

Learn more about Foreign Investment in FYROM on Globaltrade.net, the Directory for International Trade Service Providers.

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Investment Opportunities

Investment Aid Agency
Investing in FYROM
Tenders, Projects and Public Procurement
Tenders Info
Globaltenders
DgMarket - Tenders Worldwide
Other Useful Resources
Ministry of Economy
Ministry of Foreign Affairs
National Agency of Entrepreneurship.
 
 

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Learn more about Investing in FYROM on Globaltrade.net, the Directory for International Trade Service Providers.

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Last Updates: October 2014