Ljubljana – The Economy Ministry has a list of 20 potential investors, foreign and domestic, who are considering investing in the country. They are planning ten major and just as many smaller investments. The ministry believes the pandemic could be an opportunity for Slovenia given its developed infrastructure and skilled labour.
The ministry is currently processing four applicants under the investment promotion act.
Changes in the supply chains will create more opportunities for both inbound and outbound investments, the ministry believes. The pandemic has exposed the weaknesses of globalisation and global value chains, which were interrupted in the spring. This created the need and opportunity to cut the global value chains shorter or focus on local suppliers, the ministry said.
Since it is expected that companies will in the future give priority to reliability of supply over cost, this opens many opportunities for Slovenia in the mid-term, and new investments, especially from Europe, given the country’s developed infrastructure, qualified labour forces and EU membership, the ministry says.
Last year, just over EUR 6 million in incentives under the investment promotion act were paid out, which is a lot less than in the two years earlier, when the state co-financed some major foreign direct investments.
Last year, the state chipped in EUR 4.5 million for the construction of a new plant of the Novo Mesto-based automotive industry supplier TPV, and the Trebnje-based maker of prefabricated modular buildings Rem received EUR 1.5 million for a new production hall.
In 2018 and 2019, state incentives to companies totalled EUR 17.1 million and 14.4 million, respectively.
The investment promotion act entered into force in July 2018, giving foreign and domestic investor equal access to state incentives.