Why invest in Bulgaria

In order to increase the absorption of EU funds and support the National Reform Program, the Government of the Republic of Bulgaria and the World Bank signed a Memorandum of Understanding (MoU) in January 2012, marking an important change in the 20-year partnership. This is an important step taken by the Bulgarian government that can take advantage of the World Bank’s experience of developing and implementing strategies and programs in a number of sectors under operational programs funded by the EU Structural Funds. . On September 1, 2015, Cyril Muller, Vice-President of the World Bank for Europe and Central Asia, and Tomislav Donchev, Deputy Prime Minister for European Funds and Economic Policy, signed a new Memorandum of Cooperation and Partnership to support the implementation of the European Structural and Investment Funds for 2014 -2020 period. The signed Memorandum of Understanding with the World Bank is a natural continuation of the possibility of using EU funds.

Measures to encourage foreign investors:

There are different employment promotion programs in Bulgaria, which can benefit both Bulgarian and foreign investors. They may receive, for a certain period of time, financial assistance from the Employment Agency for the creation of jobs for the unemployed, persons with reduced working capacity, persons over 50 years of age, single parents; for maintaining and improving the qualification of the employees and others.

Companies can also benefit from tax incentives for the employment of long-term unemployed, unemployed persons over 50 years of age or with reduced working capacity. Corporate tax may be fully or partially relinquished for the employment of a large number of disabled persons and where the production activity of the enterprise is carried out only in municipalities with a high level of unemployment. Some social costs are not taxed. Financial support for training for acquiring professional qualification of persons, who have taken up new jobs related to realized investments in the country is also provided in the Investment Promotion Act for Investors Certified by the Bulgarian Investment Agency.

Information about machine building sector, sector benefits

At present, over 50,000 people work in the machine building sector, with a turnover of € 1.03 billion. The industry is also strongly associated with other industries such as electronics and electrical engineering. An important trend in the sector is the repositioning of some of the production activities (equipment and fitting) from developed countries to cheaper countries.

Major subsectors:

Agricultural machinery – Lifting and transport equipment – Production of transport equipment and parts thereof – Heavy investment equipment – Metal cutting and metalworking machines – Hydraulic elements and systems – Shipbuilding and ship repair – Military equipment

In the branch “Manufacture of machinery and equipment for general and special purpose” 30.4 thousand people are employed (5.8% of those employed in industry).

The wage level in the sector is above the national average – the average monthly wage is 849 leva. 4.7 thousand people (0.9% of the employed in the industry) are employed in the “Manufacture of motor vehicles without motor vehicles”. The wage level in the sector is about the average for the country – the average monthly remuneration is 738 BGN. The industry “Production of cars, trailers and semi-trailers” provides employment for 12.7 thousand people (2.4% of the employed in industry). The wage level in the sector is about the average for the country – the average monthly wage is 702 BGN.

The country offers skilled labor coming out of technical high schools and universities:

11% of students are enrolled in majors appropriate to the needs of the chemical and related industries;
34% of students in vocational high schools study related majors;
43% of students in vocational high schools in the sector are concentrated in the cities of Sofia, Plovdiv, Burgas, Varna and Stara Zagora;
The Bulgarian educational system is well suited to the needs of the Transport and Mechanical Engineering sector.

17% of graduates are potentially suitable for the industry;
Vocational schools offer a wide variety of manufacturing specialties suitable for the sector;
About 140,000 students in vocational schools;
In the 2013/2014 school year, there are about 66,000 students in 22 universities and colleges studying transport, machine building, electrical engineering and other related industries;