Free Zones Authority Helping to Draw FDI
Viktor Mizo, CEO of the Directorate for Technological Industrial Development Zones (Free Zones Authority), discusses key developments concerning TIDZs and their advantages for business. He also highlights Macedonia’s investment opportunities and unique selling points for potential international investors.
Viktor Mizo
European Times: How are free zones contributing to Macedonia’s economic development?
Viktor Mizo: When investors consider Macedonia for their business development, they take into account many aspects, especially the fact that doing business in Macedonia means that companies can benefit from advantageous operational costs, particularly in regards to infrastructure, as well as a qualified workforce and accessibility to decision-makers. Macedonia is focused on creating a customised package of incentives, and this puts us at the top of the list of many major corporations looking to expand their operations. So far, thanks to all the measures undertaken by the government, this strategy has proven to be successful and our free zones are working well. In 2014, 30% of Macedonia’s overall exports were from TIDZs.
European Times: What is the role of the Free Zones Authority concerning foreign investors?
Viktor Mizo: The Free Zones Authority aims to develop 14 different free economic zones throughout Macedonia. These zones will foster economic development all over the country and will give industries access to the workforce they need. The Authority is a one-stop-shop institution whose services include dealing with customs and the public-revenue office, obtaining work or residency permits for expats, and communicating with government institutions. Apart from that, we initiate meetings and discussions with potential investors to make sure we can offer them tailor-made solutions.
European Times: What progress are you making in developing free zones?
Viktor Mizo: At the moment, we have 13 free zones at different levels of development. Three are fully functional, and more will be operational by the end of this year, as we are finalising the infrastructure for them. By the end of 2015, we will have around 20 companies operating in our free zones.
European Times: What are some recent trends in FDI in Macedonia?
Viktor Mizo: In our efforts to promote economic development and investment, we are first focusing on manufacturing, followed by services. However, we also need to improve Macedonia’s international image and show that the country offers a business-friendly environment and that Macedonia is open for business and investments. Slowly but surely Macedonia is carving out a place on the global investment map and is more and more on the radars of multinational companies looking to set up investments in Eastern Europe. For example, five years ago Macedonia was not ranked among the region’s top 10 countries for investments, but now Macedonia is usually ranked in the top four or five.
European Times: How do you communicate Macedonia’s benefits to potential investors?
Viktor Mizo: We make an effort to get in direct contact with potential investors and to supply relevant information through international publications, congresses and events. When people see presentations on Macedonia and receive some information about us, they are interested in coming here to learn more. Step one for us is to put Macedonia on investors’ radars. The Free Zones Authority is actively engaged in enhancing Macedonia’s international exposure, as we consider that only with an open approach can we show the country’s true potential.
European Times: What changes would you like to see in Macedonia in the coming five years?
Viktor Mizo: I would like unemployment to drop from 27.9% to 20% and for Macedonia’s GDP growth to top 4% per year. I would also like to see three times the current number of foreign multinational companies present in Macedonia. Attracting foreign investment has a snowball effect. It can be difficult in the beginning, but once you reach a certain point, investment will steadily grow.
European Times: What is your personal message to our readers?
Viktor Mizo: We are a country with a solid plan for development, stability, and competitive advantages compared to other countries in the region. Investors should visit Macedonia to discover its advantages for themselves.
