A business forum on economic cooperation between Slovenia and Serbia was held on May 1th at the Intercontinental Hotel in Ljubljana. Representatives of Slovenian and Serbian companies discussed business and investment opportunities in both markets.
Director of the Institute for Strategic Solutions Tine Kračun pointed out that the good economic cooperation between Serbia and Slovenia could be strengthened by more intensively joining the countries of the Western Balkans to the European Union, first by establishing a common economic zone as soon as possible.
Ana Marković, representative of the Chamber of Commerce of Serbia in Slovenia, highlighted that approximately two thousand companies with Serbian capital operate in Slovenia.
Matjaž Han, Minister of Economy, Tourism and Sport said that Slovenia’s economic involvement in Serbia is also strong, as Slovenian companies in Serbia employ more than 20,000 workers.
According to Tomislav Momirović, Minister of Internal and Foreign Trade of the Republic of Serbia, Serbian entrepreneurs have a good understanding and knowledge of the business philosophy and customs of the Slovenian market. Today, compared to a decade ago, Serbia is a growing economy looking for opportunities in foreign markets. There are 550,000 more jobs in Serbia today than ten years ago.
Dr Jure Stojan, partner and director of development and research at ISR, summarized in a short analysis that there are markets where Slovenians and Serbs are each other’s only buyer or supplier. Between years 2005 and 2020, Serbian exports to Slovenia grew from 94 to 408 thousand tons of goods annually, and Slovenian exports to Serbia from 117 to 307 thousand tons annually.
Director of the Spirit Slovenia Public Agency, Rok Capl, said that Slovenia has the best combination of labour force in Europe, as it is more affordable and its productivity is higher than in the West.
The director of international cooperation at the Development Agency of Serbia, Nikola Janović, said that today Germany is investing the most in Serbia, and in addition to Slovenian, Italian and Austrian investments, there are more and more Chinese investments in the country.
Where and how to invest?
Željko Stašević, director of Kempinski Palace in Portorož, observes that Slovenia’s tourism capacities are still far from being used, especially in high-class tourism.
Vukajlo Babić, owner and director of the Inobačko gradbeno podjetje, has a similar opinion about the construction industry. He is convinced that Slovenian and Serbian companies can jointly operate in third markets.
Uroš Čop, partner and director of the law firm Senica Andersen, notes that there are no large consulting companies in the region, which they recognize as an opportunity for business growth. In the form of a one-stop-shop approach they offer tax, legal, HR and corporate consulting. They have good experience with Serbian partners.
The round table was moderated by Maja Dragović, editor-in-chief of The Adriatic media.
Trade is a demanding industry that enjoys trust and reputation
President of the Chamber of Commerce of Slovenia, mag. Mariča Lah said that the chamber, as a representative association of the trade industry, represents 32 percent of the revenues of the Slovenian economy, and trade employs 16 percent of the workers. The potential of trade in Slovenia reaches more than 35 billion euros, the largest of which is in food and beverages, followed by energy products and the segment of personal vehicles and equipment. Shops in Slovenia have a reputation and the trust of consumers, and the market operates under conditions of perfect competition, which is extremely favourable for consumers, who have the possibility of a wide choice.
According to Toni Balažič, president of Panvita, the Slovenian consumer visits five different stores a week on average and is one of the most sensitive. Slovenia and Serbia are not competitors, but complementary. Our competitors come from Spain, Greece and other countries, stressed Balažič.
How to get to Slovenian store shelves?
Tomislav Kramarić, president of the Mercator company, illustrated the differences between the markets with the example of flour, which in the West occupies hardly any store shelves, while the number of shelves with flour in Eastern European countries is significantly higher. The same is true of the demand for red meat, which is significantly higher in Serbia than in Slovenia, where buyers prefer white meat.
Jože Smolič, a member of the board of the Petrol company, believes that the Slovenian buyer expresses his desire for Slovenian products, but in the end he buys what is the most affordable and at the same time high quality.
Dušan Mitić, director of the company Tuš Slovenija, pointed out the “travel time” of products between the two countries, which is prolonged by congestion at the borders, among the challenges of economic cooperation.
Vukašin Petković, director of corporate affairs in the Nectar Fructal group, said that cooperation is key when entering both markets. He estimates that Fructal is highly recognizable in the area of Serbia and the wider area of the former common country.
Bojan Knežević, general manager of Jaffa Crvenka, warns that when entering new markets it is important to focus on new products that upgrade the already established offer. The differences between the individual markets are large, which he illustrated with the diverse preferences of buyers in Great Britain, Germany and Romania.
Read more at: