The territory of the FEZ "Vitebsk" will increase by 81 hectares in 2012
21/02/20120 views
INVESTOR MEETING PLACE - FEZ "VITEBSK"
The past year was not the easiest for the economy of Belarus. The review of the work results once again confirmed that for many enterprises it became a real test of strength and competitiveness. Against the backdrop of most economic entities, residents of the Vitebsk Free Economic Zone (FEZ) stand out favourably, having managed to significantly strengthen their positions and continue to develop dynamically. The FEZ itself managed to register a record number of new residents, ensuring a good start for 2012. BELTA correspondent discussed the main achievements of 2011 and current issues with the Head of the Administration of FEZ "Vitebsk", Sergey Stashevsky.
- The investment activity of FEZ "Vitebsk" in 2011 was characterised by intensive growth in the development and attraction of foreign investment. Br192.7 billion of investment in fixed assets was developed, which exceeded the 2010 level at comparable prices by 2.1 times (3.2 times without enterprises of republican subordination). The growth of attracted foreign investment compared to 2010 was 73.7%, or $40.3 million. The efficiency of FEZ residents' activities is evident in foreign trade operations. With an annual export growth of 20-22% on average, the growth rate of imports of raw materials, materials and equipment does not exceed 102-103%. This allows for a consistently positive foreign trade balance (over the last three years), which amounted to plus $10.7 million by the end of 2011. The export structure in 2011 is as follows: 90.3% of supplies go to CIS countries, including the Russian Federation - 82.1%. The share of countries outside the CIS is 9.7%. The profitability of sales of industrial enterprises increased from 6.6% in January 2011 to 21% in December.
An important indicator is enterprise income. In 2011, residents of FEZ "Vitebsk" received Br231.9 billion in net profit, and taxes totalling Br205.9 billion were paid to the budget and extra-budgetary funds.
The average monthly wage level of employees increased by an average of 45.9% during the past year, amounting to Br1,158.3 thousand for enterprises of republican subordination at the end of the year, Br2,573.5 thousand for enterprises without departmental subordination, and Br2,413.6 thousand for enterprises with foreign capital participation. In addition, 611 new jobs were created at these enterprises.
The year 2011 proved to be highly productive in terms of attracting investors: 27 resident enterprises were registered, 11 of which involved capital from entities in the United Kingdom, Poland, Canada, the Czech Republic, and Estonia. The total volume of declared investments for new investment projects amounts to $403.7 million. Their implementation will create over 1.8 thousand jobs.
- There are indeed many new enterprises. Which of them are most significant for the region and interesting from the perspective of product innovation?
- As an example of the most interesting and significant projects for the Vitebsk region, one can highlight the limited liability company "SIVital," which intends to organize the production of a wide range of test systems and biochips for the diagnosis of human and animal diseases. This innovative product is used by physicians to optimize antibacterial therapy, helping to ensure early differential diagnosis of bacterial and viral infections, reduce treatment duration, decrease the frequency of unjustified antibiotic changes, and lower the cost of examination and treatment.
The limited liability company "Diapazon-Tekhno" plans to implement an investment project for the development of solar collector production. Their use allows for a 50% reduction in annual energy consumption for hot water supply and a 30% reduction for heating. Furthermore, the mobility of solar systems allows them to be installed in virtually any new building, expanding the capabilities of existing hot water supply and heating systems.
The most significant investment project in terms of scale has been declared by the limited liability company "Commodities Complex East." The project envisages an investment of 90 million euros in the construction of a multifunctional industrial and export complex, which will provide a full range of logistics services, organize assembly production in the fields of household and industrial electronics, automotive equipment, mechanical engineering, and consumer goods manufacturing. Upon project implementation, over 500 jobs will be created.
- One of the most important tasks set for the republic's industry is the production of import-substituting goods. How interested are foreign investors in implementing such projects?- The practice of working with foreign investors shows that the opportunity to operate in the domestic market is an important factor contributing to the decision to invest in Belarus. In accordance with the legislation on FEZs, residents of free economic zones, when selling import-substituting products on the domestic market, have the same benefits as when selling for export, which stimulates the creation of high-tech industries and their registration as FEZ residents.
- Sergey Viktorovich, how has the entry into force of new evaluation criteria for inclusion in the list of import-substituting goods from January 1 affected the activities of FEZs?
- By Resolution of the Ministry of Economy of Belarus No. 106 of July 12, 2011, a new version of the Instructions on the procedure for preparing the list of import-substituting goods produced by residents of free economic zones of Belarus, supplied to the domestic market of the republic, and the criteria for their inclusion in the said list was approved. This normative act introduced two new selection criteria – planned profitability and import intensity of the goods. In addition, the document abolished the criterion of insufficient production (a good is included in the list only if similar goods are not produced in the territory of Belarus (outside the FEZ territories)), the volume of imports of similar goods into our country should be at least $1 million. in the year preceding the year of list formation, the profitability of the good should not exceed the profitability of sold products in industry for the preceding year, the date of mastering the good should not precede the year of list formation by more than two years. The procedure for updating the list of goods has been canceled: from 2012, the list will be formed once a year. These innovations are designed to eliminate unfair competition between economic entities of the republic, including FEZ residents, operating with the benefits established by FEZ legislation, and also to orient FEZ residents towards the production of new, most significant import-substituting goods for Belarus.
- What are the goals for increasing investments set by FEZ "Vitebsk" for 2012?- In 2012, it is planned to expand the borders of the FEZ "Vitebsk" by 81 hectares by including territories in Vitebsk and Orsha. This will create additional opportunities for attracting and developing investments in the reconstruction, modernization, and technical re-equipment of existing production facilities in these territories, will contribute to the production of innovative and import-substituting products, increase export potential, create jobs, and allow for the involvement of unused production areas into economic circulation. In connection with the upcoming expansion of the FEZ borders, preparations are underway for the registration of investment projects, with a total investment volume estimated at over $30 million.
To enhance the attractiveness of the free economic zone territories, work will continue this year on the construction of engineering infrastructure in sector No. 1 "Zhurzhevo" (the territory of the former military airfield) and in sector No. 12 of the FEZ "Vitebsk" (in the area of the villages of Kopty and Kosachi, Vitebsk region). The financing of the construction of these facilities is carried out at the expense of the State Investment Programme for 2012, with a planned investment volume of Br12.9 billion.
In 2012, the administration's efforts will be focused on providing consultative assistance and practical support to residents registered in 2011 in the implementation of their declared projects (definition of free customs zones, withdrawal and lease of land plots and property, issuance of technical specifications for connection to utility networks, participation in the acceptance of completed construction projects, formation of a list of import-substituting goods).
- Will Belarus's accession to the EAEC affect the operations of FEZ residents?
- The Eurasian Economic Space represents a higher degree of integration compared to the Customs Union. The agreements forming the legal framework of the Eurasian Economic Space include the Agreement on Free (Special, Special) Economic Zones and the Free Customs Zone Procedure dated June 18, 2010, which regulates the activities of FEZs in Belarus, Russia, and Kazakhstan. The aforementioned agreement serves as a guide for FEZ residents when selling manufactured products within the EAEC and beyond, therefore it can be confidently stated that there will be no deterioration of the operating conditions for FEZ residents in the EAEC.
Olga BOGACHEVA,
BELTA.-0-
BELTA