Open for business
That's not just my view - it's supported by hard facts. Recently AT Kearney announced that Poland ranks fifth on its list of desirable investment destinations, and it is global companies that are placing their investments in Poland. In an increasingly competitive global economy, leading international corporations are rapidly appreciating the true potential of Poland. Its domestic market is one of the most attractive in Europe, and the country is also regarded as an international development and manufacturing platform.
As the new president of the Polish Information and Foreign Investment Agency (PAIiIZ) it gives me great pleasure at this very exciting time in my country's development to promote trade with and investment in Poland. One of the key roles of my organization is to provide a sustainable strategic framework to support inward international investment. While each region of Poland has its own individual profile, specific investment offer and attractive skillbase, there are a number of fundamental reasons why companies are currently seizing the opportunity to invest in Poland. It is important to point out that the majority of large corporate investors in Poland are in the main satisfied with their investment and would support increased levels of investment, which in turn creates significant opportunity for their suppliers. Why is Poland ranked in such a high position as an attractive destination?
Poland has considerable investment potential. The economy is growing at twice the growth rate of Western European economies and the country is currently ranked fourth in the top 10 global investment destinations. In terms of planned investments, it is ranked first in Europe and expected return on investment is estimated at twice that of Spain and four times that of Germany
The human touch
Poland's most valuable asset is its 20 million talented, entrepreneurial, multilingual young people. Roughly 50 percent of the population is less then 35 years old, and 80 percent of students speak English. Poland ranks third in terms of planned R&D investment destinations, after China and India, and benefits from widespread educational resources, with universities and polytechnics in many Polish cities.
Poland also benefits from its strategic location. Its cost base offers significant location benefits and, as it is at the heart of continental Europe, there are 250 million easily accessible people within a 1,000-kilometer radius. Poland is also part of the Trans-European Road Network.
On the home front, Poland offers a large and growing domestic market. The country is home to 38 million consumers and is enjoying growth of 10 percent on the retail market. There is more than E90 (zł.350) billion available to develop infrastructure, systems and human capital.
Poland is the perfect location for a regional or global manufacturing and services platform. The country's workforce has excellent productivity, with one of the fastest growth rates in Europe. We have a successful track record of investments made to-date, and can offer 14 Special Economic and Investment Zones and Technology Parks with attractive incentive packages.
The key sectors that are of most interest are: automotive and engineering; electronic and hi-tech; white goods and consumer goods; business process outsourcing; R&D; and food sectors.
Addressing the issues
Poland is not without its faults, but the government is working hard to address some of the country's weak points. One of the major development areas that will significantly improve efficiency and attractiveness is the development of Poland's infrastructure. The current administration appreciates this and priorities are in place to develop air, rail and road networks that will significantly improve transportation.
Another often-raised subject is a lack of political stability and the abundant bureaucracy associated with investing in Poland. Since accession to the EU, economic freedom has improved and Poland ranks higher than a number of established EU markets in this regard. There are plans to tackle bureaucracy. Another key priority is to develop PAIiIZ into a world-class trade and investment service organization. Looking at the levels of investment in PAIiIZ, we are performing well - last year each employee in PAIiIZ "created" 300 new jobs and each złoty invested in our organization gave a return of zł.650.
The message coming from this is clear. A greater investment in PAIiIZ will result in greater investments in Poland - we need to develop in line with market demands and increase our area of activity. We also need to change our profile and focus on trade and investment, which in most countries is co-ordinated at the national level by the same organization.
Adam Żołnowski is the chief executive officer of the Polish Information and Foreign Investment Agency
