Czech Republic: Opportunities for Investors
As the Czech Republic has entered the EU, the range of trade and investment opportunities has grown. Expectations are that exporters will continue to profit from the Czech Republic's economic transformation, as major upgrades of pollution control equipment, telecommunications equipment and services, energy production and distribution, housing and municipal infrastructure and medical services continue.
Measured on per capita basis the Czech Republic has become, in recent years, by far the most successful country in attracting FDI in Central Europe. According to estimates, between 3 to 5 billion dollars on average should flow into the country annually up until the year 2010.
For companies from the EU, the Czech Republic represents a low-cost, high-yield investment opportunity close to home and without restriction of labor movement. A strengthening Czech Crown, the local currency, also reinforces the investment opportunities in the country.
The main reason for FDI is still the sufficient number of skilled and less expensive labor in some areas that helps foreign investors to flourish. Nevertheless the situation is changing and it is beginning to be a difficult task to obtain experts in some areas.
The capital of the Czech Republic, Prague, has its own international airport with one of the largest passenger and cargo capacities in CEE, train and bus stations, and highway connection to Germany and Slovakia, which makes it perfectly suited for a logistics and distribution hub connecting the countries Germany, Austria, Slovakia, and Poland.
Prague’s strategic location makes the city very attractive for the establishment of corporate headquarters or regional offices. For example, an increasing number of still affordable rents for luxurious offices makes Prague interesting. DHL, Logica CMG, Accenture and other companies already created their CEE headquarters in Prague, and several other companies also plan to follow their example. Several factors, such as an abundance of cultural and sport possibilities, good public transport and a large number of parks lead to higher quality of life and greater productivity. Prague’s location has become even more attractive after the Czech republic fully joined the Schengen zone in April 2008.
This year, the Czech Republic should be the 3rd largest car producing country (per capita) worldwide after Belgium and Slovakia. At present, there are two large automotive manufacturers: Skoda (a part of the Volkswagen group) and TPCA, and a third, Hyundai, is building its own factory in North-East of Moravia.
