INVEST INBELARUS OPEN YOUR MIND, OPEN YOUR BELARUS Minsk-London - - PowerPoint PPT Presentation

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INVEST INBELARUS OPEN YOUR MIND, OPEN YOUR BELARUS Minsk-London - - PowerPoint PPT Presentation

INVEST INBELARUS OPEN YOUR MIND, OPEN YOUR BELARUS Minsk-London Minsk-Paris 2172 km, 3h 20 min 2177 km, 3h Minsk-Berlin Minsk-Roma 1112 km, 1h 50 min 2338 km, 2h 55 min Minsk-Moscow 713 km, 1h 20 min BELAR LARUS US Klaipeda Port


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INVEST INBELARUS

OPEN YOUR MIND, OPEN YOUR BELARUS

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BELAR LARUS US

Klaipeda Port – 500 km Riga Port – 530 km Tallinn Port – 790 km

Population

9.48 mln (45.7 people/km

2)

Capital

Minsk

Territory

207 600 km

Languages

Belarusian, Russian

Nominal GDP

~63.2 bln USD (2019)

Urban population

77%

Confession

80% orthodox

Currency

Belarusian Ruble (BYN) $/BYN ≈ 2.4

Airports

7 airports in the country

Source: Belstat; 2019 data

National Agency

  • f investment

and privatization

Minsk-London

2172 km, 3h 20 min

Minsk-Berlin

1112 km, 1h 50 min

Minsk-Moscow

713 km, 1h 20 min

Minsk-Paris

2177 km, 3h

Minsk-Roma

2338 km, 2h 55 min

2

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101,7 96,2 97,5 102,5 103,1 101,2 102,8 92 94 96 98 100 102 104 2014 2015 2016 2017 2018 2019 2020*

Real GDP Growth % Y-o-Y

16,2 12 10,6 4,6 5,6 4,7 4 8 12 16 20 2014 2015 2016 2017 2018 2019

СPI, % Y-o-Y

19,5 20,6 33,8 53,8 66,1 76,6 20 40 60 80 China Belarus Poland Denmark Switzerland Norway

GDP per capita (USD thsd PPP), 2019

39,4 25,7 13,1 9,4 6,8 5,6

GDP structure, 2019

Services Industry Net taxes on production Trade Agriculture Construction

Key macroeconomic indicators

Source: Belstat, 2019

26,7 30,3 23,5 27,6 29,2 34,3 33,9 38,4 32,9 39,3 5 10 15 20 25 30 35 40 Export Import

Foreign trade of goods of Belarus, bln USD

2015 2016 2017 2018 2019

B B

S&P Fitch

National Agency

  • f investment

and privatization

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1,86 1,65 1,25 1,28 1,43 1,3 1,7 3 0,5 1 1,5 2 2,5 3 3,5 2014 2015 2016 2017 2018 2019 2020* 2025*

FDI inflow to Belarus, bln USD

FDI

Investment opportunities Industry IT-sector Tourism Financial sector

Source: Belstat, 2019 Source: NBRN BOP Source: UNCTAD, 2018

FDI to Belarus by sectors, 2019

production sector

10.3% 3.6% 29.4% 4% 23.5% 3.6% 6% 29.6%

wholesale and retail trade, repair

  • f motor

vehicles real estate

  • perations

finance and insurance transport

  • ther

Top-10 FDI donor countries to Belarus, 2019

Austria Lithuania Poland

1.6 % 2.0 % 2.0 %

  • 2. 1 %

%

  • 2. 1 %

%

  • 2. 7 %

%

Latvia

  • 3. 9 %

10.5 % 25.8 % 26.6 %

0,9 0,9 1,2 1,4 4,8 7,6 11,4 13,3 25,7 5 10 15 20 25 30 Latvia Lithuania Finland Belarus Belgium Austria Poland Russia Germany

FDI inflow, 2018, bln USD

Netherlands UK Germany China Russia Cyprus

National Agency

  • f investment

and privatization

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Global rankings

Density of medical doctors (per 10 000 population) average for 2009-2018

42.4 Switzerland 40.8 Belarus 40.1 Russia 33.2 Belgium 31.9 Latvia 26.1 Canada Belarus is in thetop 25 countries favorable for motherhood Belarus takes the 3rd place

ce

in the world export of potash salt

5.7

Dentists per 10 000 citizens The BelAZdump truck with a loading capacity

  • f 450

50 tons

twice entered into the Guinness Book

  • f Records

Belarus entered the top 10 countries for travel in 2019 according to Lonely Planet

78.4% % of

households have access to the Internet

Source: Belstat; 2019 data Source: World health organization; Source: Human Development Index ,UNDP1 Source: Transparency International Index, transparency Source:E-Government Development Index (EGDI)

Human Development Index, 2019

Belarus 50th Bulgaria 52nd Georgia 70th China 85th

Transparency International Index, 2019

Belarus 66th Bulgaria 74th Ukraine 126th Russia 137th

e-Government Development Index,2018

Belarus 38th Lithuania 40th Bulgaria 47th Czech Republic 54th

National Agency

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and privatization

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National Agency

  • f investment

and privatization

Belarus at the global market

> 180 > 180

COUNTRIES TRADE PARTNERS

70 70 %

PRODUCTION FOR EXPORT

expo porter rter of potash

17.2 2 % fertil

ilizers rs

  • f the world market

expo porter rter of

7.4% 4% hoopwood

  • f the world market

expo porter rter of

2.1% 1% rawflax

  • f the world market
Source: www.trademap.org

expo porter rter of butter r

8.1%

  • f the world market

expo porter rter of cheese ese

9.2%

  • f the world market

expo porter rter of SMP

4.8%

  • f the world market
Source: www.fao.org *ranking 2019
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Production sector

Machines and equipment 113.3

113.3% %

Transport and machinery

11 114.1 1 % %

Electric equipment

104 04.1 1 % % Industrial Output Index, 2019 Every day Belarus is making

haul trucks frontal loaders tractors street sweepers trucks

  • ff-road dump trucks

buses 2 2.4 108.6 .6 42.4 .4 14.8 .8 5.3 .3 3.1

Belarus mechanical engineering comprises over 25 250 compan anies (large ge and medium dium-size zed) d) In 2019, export

  • f mechanical

engineering products rose by around 4.3% to 5.8 bln USD Еach 10th tractor in the world is "BELARUS"

100 200 300 400 500 600 2015 2016 2017 2018 2019

FDI sectoral structure

  • f the production sector, mln USD

0% 20% 40% 60% 80% 100% 120% 140% 160% 180% Metallurgy Wood and paper products Chemical products Сarbonite and refined products

Dynamics in production sector

Dec 2018 Dec 2019

Source: Belstat, 2019 Source; Belarus SED Report 2019

National Agency

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and privatization

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Agriculture sector

Investors see the undoubted advantages of investing in the agriculture of Belarus due to in-country agribusiness development preferential credit resources attracted for the implementation of agricultural projects (from 3% per annum) state support for the development of infrastructure (roads, communications) single tax for agricultural producers (1% of revenue) VAT of 10% on agricultural products, no income tax and property tax

Agricultural land

41.1%

Source: Belstat, 2019

Land area

20298.8 (1000 ha)

Agricultural area

8532.7 (1000 ha)

Forest area

8633.5 (1000 ha)

Main agricultural products

Potato, flax, rapeseed, sugar beets

National Agency

  • f investment

and privatization

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IT-sector

FDI in the ICT-sector, mln USD

2018 2019

280,5 ,5

6 times in a row the Belarusian recognized as the best world programmer at the Google Code Jam Belarusian programmers are famous all over the world EPAM is in the top-100 fastest growing companies according to Fortune

132 136 147 161 191 454 751 200 400 600 800 2013 2014 2015 2016 2017 2018 2019

HTP residents

740,7 897,0 1 003,5 1 152,4 1 445,3 1 840,5 2 406,1 600 1200 1800 2400 2013 2014 2015 2016 2017 2018 2019

Services exportd of ICT sphere, mln USD

88,1% 11,0% 3,2%

Export of ICT, 2019

Computer services Telecommunication services Information services 41,6… 3,2% 55,2%

Import of ICT, 2019

Source: Belstat, 2019 Source: HTP date, 2019 date, 2019 date, 2019

225,2 ,2

National Agency

  • f investment

and privatization

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Financial sector

24 banks ks

(14 with foreign capital, 5 with governmental capital, 5 with private belarusian capital)* leasing

(108 8 organiz nizati tions ns, 31 with th forei eign gn capita pital) l)

insurance

(16 compa pani nies es)

microfinance

(94 organiz nizati tions, ns, 5 w with th forei eign n capi pital tal)

forex companies

(14 compa panie nies) s)

National Agency

  • f investment

and privatization

*at 01.01.2020

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Belarus investment support agreements for promotion and mutual protection of investments

66

agreements on avoidance

  • f double taxation

70

Law «On Public Private Partnerships»

  • f 30 December 2015

Law «On investments» of July 2013

National Agency

  • f investment

and privatization

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Preferential regimes

National Agency

  • f investment

and privatization

INCOME TAX LANDTAX PROPERTY TAX INCOME TAX FOR INDIVIDUALS DEDUCTIONS TO THE SIF VAT AND CUSTOMS DUTIES

stabilization clause Moratorium on conduction inspections

SAFETY REGIME

18% in general

0%

Great Stone HTP Small towns FEZs Great Stone HTP Small towns FEZs

0%

1% in general Great Stone HTP Small towns FEZs

0%

13% in general Great Stone HTP Small towns

0%

35% in general Great Stone HTP

for the income exceeding average monthly salary

0%

20% in general Great Stone HTP Small towns FEZs

0%

30 DAYS in general 180 DAYS Great Stone Great Stone

VISA-FREE REGIME

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Free economic zones Export-oriented production

Minimum investments

  • f €0.5 mln

0%

Income Tax Property Tax Land Tax VAT & Custom Import Duties

17% 15% 16% 10% 12% 14% 16% EXPORT OF GOODS INDUSTRIAL OUTPUT NET FDI

Share of FEZ residents in key macroeconomic indicators of Belarus, 2019

National Agency

  • f investment

and privatization

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Great Stone Industrial Park

PLACE FOR INDUSTRIES OF THE FUTURE INNOVATIONS AND NEW TECHNOLOGIES NTERNATIONAL BUSINESS COOPERATION

0%

TAX PRIVILEGES AND BENEFITS 10 years GRANDFATHER`S CLAUSE

0%

SPECIAL CUSTOMS REGIME

THE MOST CONVENIENT CONDITIONS FOR DOING BUSINESS IN THE EURASIAN REGION

National Agency

  • f investment

and privatization

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HI- Tech Park

37 000 software developers in HTP resident companies 18% share of IT-services in export of Belarus 48% of 751 resident companies are with foreign

  • r joint ownership

91,9 ,9% of software produced in HTP is exported Companies from 67 67 countries are customers of the High-Tech Park

TOP-100

6 6 HTP resident companies are included in the rating The Global Outsourcing

TOP-15

leading countries in IT outsourcing and high-tech services

TOP-9

destinations for software development

0,05 0,27 1,59 2,10

0,6 1,2 1,8 2,4 2006 2011 2018 2019

date, 2019

Export of IT services, bln USD

National Agency

  • f investment

and privatization

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Beijing 2020 20

China-CEEC 16

Small towns and rural areas

0%

Income Tax Property Tax VAT & Custom Import Duties

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Beijing 2020 20

China-CEEC 17

Orsha Region

PRODUCTION OF GOODS OR PROVISION OF WORKS, SERVICES LOWER TAX RATES (1% of the turnover from sale of goods of own production, 2% of the turnover from performing own works/services) EXEMPTION FROM VAT in relation to certain types of imported machinery and equipment that are subject to 0% customs duty FULL VAT REFUND for developers in regard to the goods,works and services used for constructing facilities in the Orsha region 24% RATE

  • f social security contributions by employers

0%

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Beijing 2020 20

China-CEEC 18

FEZ«Bremino- Orsha»

0%

CIT Real estate tax VAT & Custom Import Duties

Poland Russia Lithuania Latvia Ukraine

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Investment Agreement

The investors are allowed to carry

  • ut construction work

stipulated by the investment project and simultaneously develop design estimates and have them evaluated and adopted at each stage of construction

Exemption from customs duties and VAT when importing equipment Deduction 0% VAT No tender for land plot provision No payment for conclusion lease agreement No payment for land plot Additional government support to investments projects

36,10% 30,50% 15,40% 9,50% 5,20% 3,30%

INVESTMENT AGREEMENTS CURRENTLY IMPLEMENTING*

CONSTRUCTION PROCESSING INDUSTRY OTHER AGRICULTURE TRADE POWER SUPPLY

*beginnings of March , 2020

National Agency

  • f investment

and privatization

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Success stories

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National Agency of Investment and Privatization

Legislation clarification Search for information Post - investment support Organization

  • f meetings

and visits Selection of land plots and real estate Analysis of financial indicators Presentation

  • f projects

at the events Search for investors Search for investment projects and ideas Market Analysis

“One-stop shop” for foreign investors Project office

INFORMATION SUPPORT PUBLIC PRIVATE PARTNERSHIP PAPERWORK MANAGEMENT INVESTOR SERVICING CONDUCTING NEGOTIATIONS COMPREHENSIVE SUPPORT FACT–FINDING VISITS SEARCH FOR POTENTIAL PARTNERS

SERVICES FREE OF CHARGE >1000 SUPPORTED FOREIGN COMPANIES mail@investinbelarus.by

National Agency

  • f investment

and privatization

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National Agency of Investment and Privatization

Analysis of financial indicators Presentation

  • f projects

at the events Search for investment projects and ideas

890

INVESTMENT PROPOSALS

1020

LAND PLOTS

580

REAL ESTATEOBJECTS FULL ASSISTANCE IN THE SELECTION OF INVESTMENT SITES

  • PROJECTS
  • LAND PLOTS
  • REALESTATE

National Agency

  • f investment

and privatization

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LET'S COOPERATE TODAY

www.investinbelarus.by

+ 375 17 200 8 1 75 + 375 17 226 47 98 m ail@ inves tinbelarus .by

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