site.btaBulgarian PM Borissov, Ministers Attend Investment Forum in Shanghai

Bulgarian PM Borissov, Ministers Attend Investment Forum in Shanghai

Shanghai, November 23 (BTA special correspondent Genka Ivanova) - Opening an investment forum here Monday, Bulgarian Economy Minister Bozhidar Loukarski said that Bulgaria gives priority to the cooperation with China, taking into consideration the economic potential and accelerated development of this Asian
country that is the second biggest economy in the world. The forum, which was organized by the InvestBulgaria Agency, gathered over 100 Chinese companies. Participating were Bulgarian Prime Minister Boyko Borissov and ministers, who are on a visit to China from November 22 to 27.

Loukarski said that Bulgaria's potential as part of the huge EU market and the high achievements of the Chinese economy create prerequisites for intensifying the bilateral cooperation. He noted that Bulgaria's strategic geographic location turns the country into a main transit centre connecting the European
market with the countries from the Mediterranean, the Middle East and Asia. Bulgaria offers superb conditions as a platform for Chinese products to the EU and for business with the other EU countries both because of the fact that as a EU Member State it offers unobstructed and duty-free access to a market with 500 million consumers, and because of the better communication and transport infrastructure that Bulgaria is developing.

Loukarski listed additional advantages of Bulgaria, such as the low taxes and the applied two-year exemption from VAT in case of an import of equipment for investment projects exceeding 2.5 million euro and creating at least 20 jobs. In his words, the tax regime coupled with the qualified workforce and the lowest
operational costs in Europe, place Bulgaria among the best business and investment destinations.

The Economy Ministry went on to say that the Government's investment policy envisages special measures for encouraging investors in accordance with the Investment Promotion Act.

"We invite the Chinese companies interested in the EU markets to establish their representations, logistics bases, production capacities and development centres in Bulgaria. We rely on the Chinese authorities to encourage companies to invest in Bulgaria," Loukarski said, adding that his country is ready to support the future projects of Chinese companies in Bulgaria. He outlined as prospective sectors the creation of industrial zones and technological parks, information and communication technologies, machine-building, electronics and electrical engineering, agriculture and food industry.

Addressing the forum, Prime Minister Borissov said that in this world of challenges those who seek peace, friendship, prosperity and development will be the winners, and Bulgaria and China have set themselves such a goal.

He listed several factors making Bulgaria the best investment destination: this country is a EU Member State, it has stable parliamentary support and government, the lowest taxes in the EU, highly educated people, and great climate, tourism, agriculture, animal husbandry and tobacco production.

According to Borissov, Bulgaria, Serbia, Macedonia, Romania and the other countries in Central and Eastern Europe (CEE) can implement joint projects with China.

Deputy Prime Minister Tomislav Donchev told the forum that a trade amounting to 1.8 billion dollars is insignificant given the potential of Bulgaria and China as countries and economies. "We can achieve several-fold more", he said. The potential is not fully used in the sphere of machine-building, agriculture,
food industry, high technologies, and trade, he noted.

Donchev put an emphasis on Bulgaria's strategic geographic location. Every company, through its presence in Bulgaria, gains direct and unlimited access to a huge market, he said, adding that the Government is doing everything within its power to guarantee order, peace and tranquility not only for Bulgarian citizens but also in the region.

"Bulgaria is a peaceful and calm place with economic and political stability, with a business-oriented Government," Donchev went on to say.  He noted that there is readiness to announce concessions for a series of key ports and airports in Bulgaria which, in the context of the country's geographical location and transport corridors, is an opportunity for China.

Agriculture and Food Minister Dessislava Taneva talked about the long-term traditions in the agricultural sector. She said that over half of Bulgaria's territory allows for the growing of agricultural produce and there is still a territory which can be developed for a certain type of crops. The last five years hav seen successful projects implemented by the Agricultural Academy and Chinese partners, including the issue of licenses for certain varieties of cherries and raspberries. In the last three years, the trade has increased by over two-fold and this is the result of investments. For some goods, such as maize and wine, Bulgarian export to China has increased fifty-fold andtwo-fold, respectively, she said.

Attending the forum were over 100 Chinese companies interested in investing in Bulgaria, as well as a Bulgarian business delegation of representatives of over 36 Bulgarian companies that want to broaden their contacts and create new partnerships in China.

Chinese company Nantong Sumu Biological Technology will build an olive oil factory in the industrial zone of Bourgas (on the Black Sea). The intention to invest 7 million dollars in this project was expressed with the signing at the forum of a memorandum of cooperation between the Chinese company and the Industrial Zones National Company, which manages Bourgas' industrial zone.