Its privileged geographical position and well-developed infrastructure of engineering and transport facilities makes Belarus attractive location for international companies. The country is located in the heart of Europe, between Europe and Asia. Two transeuropean transport corridors (№2 and №9) are stretching through Belarus. Belarus is the eastern border of the European Union. With the establishment of the Eurasian Economic Union (EEU), the border with the EU has become the only barrier left on way to free movement of goods from the Atlantic to the Pacific Ocean, between Scandinavia and Central Asia. In Belarus, international companies have an open access to the market of goods and services of the EEU countries with a population of 180 mln people.
There are carried out reforms aimed at increasing investment attractiveness and investment protection in Belarus. In the rating of «Doing Business 2015» Belarus occupies 57th place. Among the countries of its region, Belarus remains in the first half of the list of the most active reformers, ahead of Russia and the Ukraine.
The originality of the Food cluster is not only in its relevant appearance in the market, but also in its excellent location. The Food cluster is located in an agricultural region, in a small town of Smilovichi (10 thousand people). There are several agricultural educational institutions in Smilovichi. The Food cluster is located within the boundaries of the highway E30 (Berlin-Moscow / M1), it has a direct exit to the site from the highway E271 (Minsk-Mogilev / M4) for cargo vessels. The minimum distance from the capital city of Minsk is 30 km; and 50 km from the international airport.
The way of trucks from the Food park to the following destinations will take:
to Moscow, the capital of Russia (700km), 9 hours;
to Kiev, the capital of the Ukraine (550 km), 10 hours;
to Warsaw, the capital of Poland (550 km), 15 hours.
Above all, Belarus is attractive for investors from Russia, UK, Austria, and Netherlands. For the first 6 month of 2015 foreign investors put up into the real economy (except for banks) 5.7 b USD.
Main foreign investors
Main investors are companies from Russia (39.5%), UK (21%), Netherlands (11.7%), Cyprus (8.7%), Austria (3.8%).
Investments by region
For the first 6 months of 2015 the majority of foreign capital was invested into companies from Minsk (74.8%). Gomel region got 7.8% of foreign investments, Minsk region – 7.1%, Vitebsk region – 5%.
Gross inflow of FDI
Gross inflow of foreign direct investments accounted for 4.1 b USD, or 71.6% of all the foreign investments received. In comparison to the first half-year of 2014 gross inflow of FDI decreased by 1.8 b USD (30.8%).
Other foreign investments (not from direct investor) accounted for 1.6 b USD or 28.4% of the gross inflow of foreign investments. In comparison to the first half-year of 2014 inflow of other foreign investments has decreased by 771.5 mln USD (i.e. 32.1%).
Form of attracting foreign investors
The main form of attracting FDI were debt instruments (70.4% of total FDI). Debts for goods, works, services in the gross inflow of FDI in 6M2015 accounted for 2.7 b USD.
According to the statistics, the contribution of foreign organizations to the Belarusian GDP accounts for only 4%.
Advantages of Belarus:
(1) Privileged geographical location;
(2) Scientific and technical potential;
(3) Developedtransportationinfrastructure;
(4) Presence of investment legislation.
Employment potential
• High number of weekly/annual working hours;
• High level of professional qualifications and versatility of staff;
• Reasonable price of labor.
Tax rates
Tax on company’s income 18% VAT 20%
Pension tax 35%
Income tax 13%
Insurance 1%