Could you give us some background information in terms of the history and activities of BCCI?
The Bulgarian Chamber of Commerce and Industry was established 106 years ago, it is one of the longest dating chambers in the Balkans. It has lived through the whole new history of Bulgaria. At present, it is the largest NGO in Bulgaria. It has 40 000 members all of which you can find on BCCI's web site on the Internet. This is the only NGO that has its members listed on the Internet. There you have free access to all the information. We have 28 regional chambers of commerce. The companies that are members of BCCI comprise 80% of the whole business scene in Bulgaria, in sectors such as production and commerce, and they provide 52% of the jobs. What are the functions of BCCI? The Bulgarian Chamber of Commerce and Industry has been a member of the International Chambers of Commerce Organization in Paris since 1952. It has been an affiliated member of the Association of European Chambers of Commerce and Industry since 1994. It is also a member of more than 30 other international organizations. Internationally, the main objective of the BCCI is to establish close business relations between Bulgarian and foreign companies. Recently, it is also aiming to speed up the process of integration of Bulgaria into the EU. On the internal side, we provide assistance to the companies for their training and we help them meet the international commercial standards. The Chamber works together with the Government for the harmonization of our legislation with that of the EU. It also debates and argues with the Government whenever the legislation is not favorable for business.
You mention your co-ordination activities with the Government. Could you tell us what have been the latest developments within the Bulgarian economy and what would you consider to be the Chamber of Commerce's contribution towards these developments?
Four days ago, during the Economic Forum that was held in Sofia, we had a meeting between the Government and the business sector. We presented there 32 statements with regards to the Government policy and the legislation. All these statements are listed on our web site. We received a positive reply from the Government to four of these statements. For the remaining 80%, the Government's reply was that they were taken into consideration and they will be discussed further on. We also obtained from the Government another 18 statements related to the tax changes that will be further discussed with us. This is just an example of our mutual work with the authorities. I would also like to mention the fact that 60 sector associations are our members. We study their opinion and then we inform the Government about it. In Bulgaria, the economic policy is a bit more complicated because we have a Currency Board. The Currency Board has a positive impact on our economy but it does not give the liberty to business that we need. The Board was introduced here following a vast economic collapse. As a result of the Board, the economic situation in Bulgaria is now much better, but the dilemma remains and that is why we have debates.
You are a member of the National Council for Tripartite Co-operation. How much has this organization promoted this transition of enterprises? How does it help stabilize the economy and the business climate in the country?
I think that the Tripartite Council functions very well here in Bulgaria. There is one important fact that should be taken into consideration. First, all organizations and associations of employers are constantly undergoing changes because the property is being transformed from state to private ownership. Companies may either grow or go bankrupt altogether. This is a serious problem for the employers' associations, membership is changing all the time, but recently it seems that the situation is beginning to stabilize. The trade unions are in the same position of undergoing constant changes. Lots of the employees of the former state-owned enterprises are losing their jobs. Not every one of them is able to adapt to the conditions in the private business. This is a very difficult metamorphosis. Finally there is the Government issue. For the last decade most Governments, with the exception of the last one, have not lasted for their whole mandate of four years. They have existed for a minimum of 6 months, or a maximum of two years. Hence, it is quite difficult for all of us to adapt to each new Government, as is difficult for each Government to be well familiar with the situation in the country. Now these structures are becoming more stable. Legislation frames have been created for the present conditions. I think that this Tripartite Council is managing to guarantee social and political peace.
You were also President of the Association of the Balkan Chambers of Commerce and of the Association of Black Sea Chambers of Commerce and Industry. How does the South Eastern European region work together to attract foreign investments?
At present, we are living in a very peculiar situation
in the Balkans. It is the first time in a millennium,
I would dare to say, that we are having stable governments
in the Balkan countries with good will towards each
other. This provides conditions we should all benefit
from. The Association of the Balkan Chambers of
Commerce was established in 1994 upon our initiative.
Those were war years on the Balkans. We were trying
to fill in this sort of vacuum - which resulted
from the complete lack of contact among the regional
Governments. Our main purpose was to create a free
zone in the Balkans. Today, this is a fact and it
has been accomplished. So, on the basis of bilateral
agreements we have got this free zone in the Balkans,
excluding Yugoslavia. There are 150 million people
living in this part of the world, this is a large
territory that is not divided by religion or nationality
conflicts, it is divided only in terms of different
standards of living. These 150 million people speak
around 10 absolutely different languages, for instance
Turkish, Bulgarian, Rumanian, Albanian, Greek, etc.
This is a problem that also matters. Another problem
is the lack of communication infrastructure. Bulgaria
is the center of the Balkans and through its borders
with each neighboring country lots of roads and
infrastructure communications could pass. I am mentioning
this with the idea for future investments on the
Balkans. If investments are made on the Balkans,
they would not cause any problems to Europe and
the world. |
What is your view of the investment climate in Bulgaria and what, would you say, are the most positive and negative aspects of this investment climate?
A positive aspect is that we have a liberal legislation; I would even dare say that it is more favorable to foreigners than the European one. Without going into details, I would tell you that every foreigner can come to Bulgaria and do business and would be treated here as a Bulgarian legal entity. Since 1992, when the investments for that year were 34 million USD, up until the year 2000, investments have increased to 4.2 billion USD. The increase of foreign investments from 1999 to 2000 was more than 1 billion USD. The biggest investors are Germany with 0.5 million USD investments, followed by Greece, Italy, Belgium, Austria, USA, Cyprus, Russia. I think that all these facts and figures are the best reason for making further investments. All these investments are not enough for Bulgaria, but there are two negative factors for that. The first one was the war on the Balkans (the war in Yugoslavia), as it was hindering foreign investments very much. Unfortunately, when the war on the Balkans ended, the September 11 events and terrorism followed. The latter has a very negative impact on investments as well.
You are a former member of the Advisory Council on Foreign Investments to the Government, so we consider you to be expert on the matter. What sectors of the Bulgarian economy are the ones, which in your view, offer the most potential for foreign direct investments?
There are big opportunities in the following sectors: energy sector equipment, telecommunication equipment, PC and peripheral equipment, telecommunications, airport equipment, road construction, construction of various energy lines such as gas pipelines, petrol pipelines, etc. When talking of regional projects we should also include the construction of railways, for instance Bulgaria-Albania. Other possibilities could be the agriculture equipment, construction, and software products. I can also add to these the tourism sector. This is in general terms. We - the Chamber and the Government - have been developing a regional infrastructure project because the Balkans are small countries and probably for a big investor regional Balkan projects would be of better interest. There are many such projects. Actually, I believe that the Balkans in the future will be treated as a whole region, we could consider even the possibility, remote as it might be, of entering the EU as a single region.
You mentioned in the beginning of the interview that one of the major responsibilities of the Chamber of Commerce is to put foreign companies in contact with local companies. In what way does the Chamber of Commerce promote possible investments in the country?
We are open to provide any kind of service to any foreign company. We could be representing it in Bulgaria, we could be looking for counterparts to the company, we could explain to them the legislation and regulations, or how to register in Bulgaria, or what documents are needed for import or export of goods. We can establish contacts between the respective company and the regional chambers of commerce, we could also assist them through our contacts with the Government. Every foreign company, especially if member of some other Chamber of Commerce, has got its own place and home here.
What about marketing campaigns? Do you have a budget for marketing and advertising?
We issue, for instance, every year a brochure with the 100 top companies in Bulgaria. We have a special analytical department, which is in charge of the analysis of companies and of their marketing campaigns. For all these 40 000 companies we have complete information, such as who represents the company, what is its turnover. We even have the so-called black list of companies, i.e. the list of companies that have gone bankrupt.
What is your vision of southeastern Europe's integration into the EU? How do you see the prospects of Bulgaria for joining the EU?
It is my dream and the dream of the Bulgarian people. This is the only possible way ahead and I think the sooner the integration, the less would be the problems of Europe and the world. Actually, the fact that we have lived quite isolated was causing a lot of problems. This is the so-called globalization that has often been spoken of, and I think the recent events in the USA would probably activate the solution of many problems. It has been too long that we have lived isolated from Europe, let alone the USA. America was as another planet to us. You are quite young to know, but actually during the Cold War we were in very hostile relations. This must be overcome fast because it was artificially created.
What would be your message as President of the Chamber of Commerce to Forbes Global readers?
I welcome all readers of Forbes Global and I invite them to come to Bulgaria and taste the Bulgarian wine, get familiar with the Bulgarian temper, the Bulgarian history of thousands of years, and thus to find out that we are not different and that "in vino veritas"! And also that in Bulgaria good business can be made. For all these ten years that I have been president of the Chamber, none of the foreign companies has complained that they were leaving Bulgaria because of not having succeeded in making business. On the contrary, we have lots of foreign friends who have even bought houses here and are now living in Bulgaria. I think there is no big difference with Belgium, for example, I mean the mentality, the food, and the only difference is in the standard of living and in the confidence in the political status.
Note: World Investment News Ltd cannot be held responsible for the content of unedited transcriptions. |
