Serbia has become an attractive hub for high-tech Asian companies seeking to expand their presence in the European Union (EU) market. With a strategic location, competitive business environment and robust support for technological innovation, Serbia offers several advantages for companies looking to establish a strong foothold in Europe. Here’s an overview of why Serbia is an ideal location for Asian high-tech firms targeting the EU:
1. Strategic location and market access
Serbia’s location in Southeast Europe provides direct access to both EU and non-EU markets, making it a strategic base for companies looking to expand their reach across Europe and beyond. The country’s participation in the EU Single Market Programme facilitates easier access to EU markets and strengthens its position as a gateway for trade and investment in the region.
Additionally, Serbia’s free trade agreements with the EU, EFTA, CEFTA and the Eurasian Economic Union (including Russia and Kazakhstan) enable duty-free or preferential access to over 1.3 billion consumers. This unique positioning allows companies to serve a broad range of markets with reduced tariffs and simplified customs procedures.
2. Investment incentives and free zones
Serbia offers a wide array of financial benefits and incentives to attract foreign investors, especially in high-tech and advanced manufacturing sectors. These include:
• Corporate income tax benefits: Serbia has one of the lowest corporate tax rates in the region, set at 15%, making it financially attractive for high-tech companies to establish operations.
• Free zones: Companies operating in Serbia’s Free Zones enjoy customs and VAT exemptions, as well as simplified administrative procedures, making them ideal for manufacturing, logistics and technology-driven activities.
• Grants and subsidies: The government provides financial support for job creation, training, R&D activities, and capital investment, reducing the cost of establishing and expanding business operations.
3. Thriving ICT sector and skilled workforce
Serbia’s Information and Communication Technology (ICT) sector is one of the fastest-growing industries in the country. In 2023, the export of ICT services reached €2.7 billion, highlighting the sector’s rapid growth and its critical role in the economy. The government has invested significantly in developing this sector, making it one of the top drivers of economic growth.
Serbia’s educational institutions and R&D centers produce a steady pipeline of skilled professionals in fields such as software development, engineering and digital technologies. Major multinational companies, such as Continental, Bosch and ZF Friedrichshafen, have established R&D centers in Serbia, capitalizing on the country’s talent pool and favorable business environment.
4. Focus on high-tech and advanced manufacturing
Serbia’s long-standing tradition in the electronics and automotive industries has evolved into a modern high-tech ecosystem, attracting significant investment from Asian and European companies alike. For example, JFE Shoji, a Japanese company, has recently established a factory for the production of motor cores in Serbia, its first factory in Europe. This factory will supply components to automotive and electronic industries in Serbia and other European countries.
Serbia’s specialization in advanced manufacturing, particularly in the automotive and electronics sectors, has made it an attractive destination for companies focusing on high-tech production, R&D, and supply chain optimization.
5. Integration into regional and global supply chains
Serbia’s well-developed infrastructure, including modern road, rail and port facilities, supports efficient logistics and supply chain management. This enables companies to quickly distribute products to EU and regional markets. The country’s competitive operating costs and skilled labor force provide additional incentives for high-tech companies to set up operations and establish regional distribution centers.
Serbia’s combination of strategic location, competitive investment incentives, strong ICT sector, and skilled workforce makes it an ideal hub for high-tech Asian companies targeting the EU market. With ongoing reforms and continuous integration into EU frameworks, Serbia offers a stable and dynamic environment for business expansion and international trade.
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