Foreign investments in Bulgaria saw a 22.5% increase in 2015. This country managed to attract new and interesting investors, due to the favorable macroeconomic climate, the Executive Director of InvestBulgaria Agency Stamen Yanev told Radio Bulgaria and added:

“Currently, InvestBulgaria Agency is preparing the certification of 21 projects to the tune of over EUR 244 million. We expect that some 7,200 new job positions will be opened under those new projects. Since the beginning of 2016 we have certified 4 projects amounting to EUR 32 million. Nearly 700 people will be employed under those 4 four projects. We must take into consideration the fact that despite the turbulent situation abroad, Bulgaria has remained a haven of political and economic stability. Besides, this country offers low tax rates and reasonable cost of labor. That is why the number of foreign investors to the country has been recently on the rise. Meanwhile, we work together with the companies which have already settled in Bulgaria and try to make sure they will stay here permanently. ”

In Stamen Yanev’s view, most of the foreign capital is directed to the industrial sectors which create high added value in the national economy. Recently Teklas Company, which produces spare parts for some of the world’s biggest car manufacturers, expanded its production facilities in the town of Kardzhali (Southeastern Bulgaria). Six smaller foreign companies entered Bulgaria due to that large-scale investment. Meanwhile, the small and medium-sized Bulgarian companies also have the opportunity to become suppliers and subcontractors of such large companies, the Executive Director of InvestBulgaria Agency Stamen Yanev claims.

Plana Heights is another interesting and promising foreign project. It is expected to start in the coming months, after an Israeli investor received from the state authorities a certificate for high-priority project. The potential investor is planning to build 3,000 homes in Plana Mountain not far from Bulgaria’s capital Sofia. According to preliminary forecasts, the new investment will amount to EUR 500-600 million. It is interesting to note that the Israeli investor will not only sell newly-built homes, but will allow people to construct their own homes after they purchase a given plot and invest money in the adjacent infrastructure.

In Stamen Yanev’s view, Bulgaria has become more attractive for the world automotive industry. Moreover, the foreign investments in the IT and telecommunication fields have increased significantly as well. Biotechnology also has the potential to attract foreign investments.

Despite the rapid growth of the foreign investments in recent years, the foreign companies continue to experience a series of difficulties and meet multiple challenges in Bulgaria. In Stamen Yanev’s words, most of their problems are linked with the access to infrastructure, or the issuance of various permits and licenses. In August 2015 the Bulgarian cabinet outlined 10 main obstacles to the foreign investors. The working groups formulated various measures aimed at improving the economic environment and accelerating the administrative procedures, so that Bulgaria can achieve the desired results after the elimination of those obstacles. With regard to the judicial reform, my impressions from the latest meetings with foreign investors are that the long collection procedures discourage the foreign companies, Stamen Yanev said and added:

“Currently, many foreign investors are accompanied with representatives of diplomatic missions in court, in order to speed up given judicial procedures, or prevent possible subjective decisions of the court. However, it does not solve the problem with the country’s judicial reform. The judicial reform must aim at accelerating the court procedures and avoiding any subjective attitude towards the foreign companies participating at these procedures. ”

Recently, the idea about possible merger between InvestBulgaria Agency and the Bulgarian Small and Medium Enterprises Promotion Agency has become topical again. According to the Executive Director of InvestBulgaria Agency Stamen Yanev, the main purpose of the new structure is to establish a strong link between businesses, science, education and institutions.

English version: Kostadin Atanasov