You have 3 free articles left this month. Get your free Basic subscription now and gain instant access to more.

IBA: Bulgaria’s automotive industry offers numerous advantages

IBA: Bulgaria’s automotive industry offers numerous advantages

InvestBulgaria Agency (IBA) is a government organisation tasked with attracting investments to Bulgaria. Its primary objectives include facilitating project setup and ensuring successful project development, ultimately leading to the creation of new jobs, increased exports, and the transfer of expertise to the Bulgarian economy. The agency supports both potential and existing investors in navigating the business environment and developing their investment opportunities in Bulgaria. Mila Nenova is the Executive Director of the agency.

Mrs. Nenova, the automotive industry ranks high on the list of industries identified by IBA as pivotal for economic growth. How does investment in this sector bolster the Bulgarian economy?

Investment in the automotive sector significantly fortifies the Bulgarian economy by fostering job creation, enhancing technological capabilities, and amplifying export potential. The industry serves as a cornerstone for economic growth, attracting both domestic and foreign investments, thus contributing to GDP expansion and overall prosperity.

IBA recently held its annual “Investor of the year” awards and the award for “Investment in innovative business” was presented to Nidec Elesys RnD Europe Bulgaria. Could you elaborate on this project and discuss the role of automotive companies in accelerating the adoption of innovative practices in Bulgaria?

Nidec Elesys RnD Europe Bulgaria's recognition as the recipient of the "Investment in innovative business" award underscores the pivotal role that automotive companies play in propelling innovative practices within Bulgaria. Through initiatives like this, these companies drive research and development efforts, introduce cutting-edge technologies, and cultivate a culture of innovation, thereby positioning Bulgaria as a hub for advanced automotive solutions.

From an investment standpoint, what are the primary advantages of investing in the local automotive industry?

Bulgaria’s automotive industry offers numerous advantages, including access to a skilled workforce, strategic geographical location, robust infrastructure, and favourable government incentives. Furthermore, investing in this sector presents opportunities for collaboration with global automotive giants, fostering knowledge transfer and technological advancement, ultimately yielding lucrative returns on investment.

How does IBA support investments in the sector and in the country?

The role of the Bulgarian Investment Agency is crucial for the country's economic development. The agency aims to attract investments that contribute to economic growth, regional development, and the creation of new jobs in Bulgaria. Operating in accordance with the Investment Promotion Act, the agency offers various incentives to investors, both financial and non-financial, to facilitate and support the implementation of investment projects.

Investment projects that meet certain criteria can be certified by the agency. Certification allows investors to benefit from the incentives provided by law, including streamlined administrative procedures, financial support for infrastructure development and worker training, as well as partial reimbursement of social security contributions for a specified period.

It is important to note that certified investment projects are classified into different categories based on their scale and significance to the economy. These categories include priority projects for large-scale and structurally defining projects, as well as Class A and Class B projects.

I believe that bilateral chambers, as part of international trade and economic relations, play an important role in attracting investments. They provide a platform for communication and collaboration between different countries, creating opportunities for the exchange of information, expertise, and resources.

Through participation in various events, meetings, and forums provided by bilateral chambers, investors have the opportunity to familiarise themselves with the business environment and investment opportunities in different countries. Good communication with the chambers is part of the strategy of the Bulgarian Investment Agency to attract new investors to our country. The agency's work is to present Bulgaria to the world as a sustainable place for business development, and I believe we are doing an excellent job with this task.

Related reports