PAIZ reports investor enthusiasm
Five times more foreign investors are upbeat about doing business in Poland than seven years ago, according to a Polish Agency of Foreign Investment (PAIZ) report released last Thursday. But multinational companies say ambiguous legal regulations remain one of biggest barriers to doing business in the country.
More than 56% of companies surveyed ranked Poland's political climate as good compared to 11% in 1993.
"Investors' opinions about Poland are improving," said Adam Zolnowski, head of the research department at PAIZ.
By mid-2000, total foreign capital invested in Poland exceeded $43 billion, establishing it as the region's foreign direct investment (FDI) leader, according to PAIZ.
Foreign investors cited good economic growth prospects, low labor costs and Poland's large market as the country's main attractions. Banking, telecommunications and Poland's workforce are all more highly regarded by foreign investors than three years ago, when PAIZ conducted a similar report, Zolnowski said.
But Poland still has a lot of work to do to continue attracting foreign investment. "Investors still indicate negative aspects, mainly in the areas of legal and tax regulations as well as the extent of bureaucracy," Zolnowski said.
Only 17% of respondents said they were satisfied with the legal regulations for foreign investors. They mainly criticized the legal system for its "incoherence" and arbitrariness, according to PAIZ.
Zolnowski also mentioned other factors. "We have to develop infrastructure, mainly roads," he said. He added that Poland needs to improve its law enforcement. Most heads of German companies investing in Poland told PAIZ that their cars were stolen at least once, Zolnowski said.
