INTERVIEW: More than 100 investment projects will be presented at the autumn business forum in Vitebsk
VITEBSK INVESTMENT FORUM: AUTUMN CONTRACTS COUNT
Vitebsk region is a developed industrial region. It is enough to mention that about half of the republic's electricity and petroleum products are produced by enterprises of the Vitebsk region. The region produces more than 60% of televisions and metal-cutting machine tools, 97% of carpets and carpet products. Every third pair of Belarusian shoes is made in Vitebsk. Br3.8 trillion of investments were directed to the development of the economy and social sphere of the Vitebsk region in 2008, and for 8 months of the current year, the growth rate of investments exceeded last year's figure for the same period by 17.3%. Almost two-thirds of capital investments are for production purposes. At the same time, the region ranks only fourth in the republic in terms of the share of foreign investments. Investment forums, which have become regularly held in the region, help attract foreign and domestic businessmen. The deputy chairman of the Vitebsk regional executive committee, Oleg Matskevich, told a BELTA correspondent about what will be presented at the upcoming autumn business forum and what local authorities expect from it.
- The next investment forum will be held in the region on October 15-16. What are the most relevant projects for the region that will be presented there?
- The most important projects for the Vitebsk region today are increasing the level of processing of local raw materials, producing products based on them that are in demand both in foreign and domestic markets, and effectively using the potential due to the geographical location of the region. Natural resources allow for the active development of the construction industry, woodworking, and bottling of mineral and drinking waters.
Annually, up to 1.8 million cubic meters of wood are harvested in the forests. The region has over 3 thousand peat deposits, which contain 29% of the country's total peat reserves. Its geological reserves are estimated at 1.25 billion tons. Deposits of dolomite suitable for the production of mineral fertilizers amount to 766 million tons. 200 deposits of clay suitable for ceramic production and the manufacture of expanded clay aggregate have been identified in the region. Total industrial reserves of clay are estimated at 70 million cubic meters, with an annual extraction of up to 1 million cubic meters. In addition, the region has its own sources of mineral water and over 1.4 thousand sapropel-producing lakes.
More than a hundred projects will be presented at the forum, several dozen of them are related to the use of local resources. I am confident that VITEBSKDREV OJSC's proposals for organizing new production of laminated boards and creating furniture manufacturing may be of interest to investors. The regional forestry production association is interested in developing the production of fuel pellets from woodworking waste. Obol Ceramic Plant invites investors for the production of porous brick - a modern, environmentally friendly, and energy-saving building material.
The advantages of the region's geographical location have not yet been fully utilized. Major transport arteries connecting Moscow and St. Petersburg with Riga, Vilnius, Warsaw, and Kyiv pass through the Vitebsk region. The region is included in two European transport corridors: Berlin-Moscow and Helsinki-Plovdiv.
The creation of large logistics centers has been worked out in two projects - based on the Orsha Aircraft Repair Plant and Vitebsk Airport. In addition, the regions offer a range of initiatives related to the development of roadside services.
In the competitive struggle for consumers, price and quality play a significant role. That is why the modernization and replacement of the technological fleet, equipment, and the introduction of new technologies at each stage of the production process are relevant for local manufacturers. The region's scientific personnel are ready to offer their ideas for mechanical engineering, light industry, and agriculture. Developments from Polotsk State University, Vitebsk Technological University, and the Veterinary Academy will also be presented at the forum.
Attention will be paid to projects in the sphere of tourism and mass recreation. Local authorities invite partners for the construction and reconstruction of hotels, recreation centers, sports and entertainment complexes.
In addition, the regional executive committee has proposed that local self-government bodies and public organizations present projects at the investment forum for participation in the new EU program "Lithuania-Latvia-Belarus," which starts on October 8. Our partners from Utena County (Lithuania) and the Council of Municipalities of Latgale (Latvia) are invited to participate in the discussion of these projects at the investment forum.
- The development of small towns and the rural revival program remain in the focus of the authorities. What projects are planned for implementation in district centers and in the agricultural sector?
- Projects for the processing of rapeseed, short flax fiber, and the production of biofuel from slaughterhouse waste, straw, and flax shives are quite interesting. It should be noted that projects at the investment forum will be presented, the financing of which is possible through external, foreign sources, rather than budget funds. At the same time, developers will familiarize potential investors with all forms of state support provided for the implementation of projects in small towns and rural areas.
- Continuing the topic of state preferences for businesses. How actively are investors using the opportunities provided by the legislation? In early November, Decree No. 10 "On Creating Additional Conditions for Investment Activities in the Republic of Belarus" comes into force. In your opinion, how can it affect business activity?
- The current legislation in Belarus has established a number of advantages for residents of free economic zones, for investors in small towns and rural areas. Businessmen are given the opportunity to be exempted from paying customs duties when importing technological equipment, they are provided with deferred payment of import VAT and the possibility of paying a single tax when carrying out certain types of production activities. These preferences are the same for both domestic and foreign investors; they are not differentiated depending on the amount of attracted capital.
When applying for state benefits, businessmen, in turn, must undertake obligations to create production facilities and additional jobs, ensure growth in product output and its guaranteed sales, implement import substitution projects, and ensure stable payment of wages. The investor's obligations are not too numerous; they are socially oriented and do not harm their financial interests. However, as practice has shown, the investor's main problem is to fulfill the undertaken obligations.
Moreover, the conditions for granting state support were previously stipulated by separate decrees. Decree No. 10, which comes into force on November 6, is a comprehensive document and resolves a number of issues in favor of investors. Many investors have "frozen" in anticipation of it. This document will undoubtedly stimulate business activity, and it is possible that the proposals of Vitebsk enterprises, presented at the autumn forum, will be realized more quickly thanks to it.
- Flax can be called the main hero of the current business forum. For the first time, an exhibition of products made from Belarusian silk will be presented to investors. What is this project and what is its main task?
- The Vitebsk region is more interested than other regions in the effective operation of the flax industry. The region has the largest number of flax processing plants compared to other regions, and Orsha hosts the country's only flax mill. Many farms in the region are linked in a single production chain with the plants and the mill, and their effective operation depends on each other. Modern technologies allow for the production of a wide variety of products from flax: yarn, long and short fiber, seeds and shives, and various fabrics – from fine linen to coarse canvas. Even production waste can be turned into fuel briquettes or fertilizer. At the business forum, we will present these types of products and showcase current and promising developments to attract consumer attention to Belarusian flax and investors to new projects.
- The autumn forum is the third one this year. Skeptics say there is no need to hold business meetings so often. What is the purpose of such forums, and what are the concrete results of their organization?
- Indeed, two investment forums have already taken place: one in March and the second in July. Contracts totaling approximately $350 million were concluded at these forums. While these may not be very significant sums, we are realists and understand that large contracts should not be expected after a single meeting. Businessmen need to get acquainted, observe, and ultimately calculate the benefits of a particular offer.
I will not hide that when holding such meetings, we also solve other tasks. Firstly, the selection of investment projects for presentation at the forum is a kind of review of the investment activities of each region and enterprise. Specialists of various levels are involved in the preparation of investment projects, which contributes to the improvement of their professionalism. It is no secret that quite recently, project development was carried out formally, and information about the opportunities and prospects for the development of enterprises was formed unsystematically. The focus was on one direction of development, without considering market requirements. For the Vitebsk regions and enterprises, the most important thing today is to learn to advertise themselves, to show investors their advantages over others. An investment project is the same product that must be learned to sell. And most importantly: an investment project must include economic calculations, justification of certain investments, and payback periods.
The composition of the forum visitors is constantly changing, and along with those who can invest funds in certain projects, we invite entrepreneurs so that they can evaluate the products manufactured by Vitebsk producers. Thus, the forum also performs the functions of an exhibition platform. Enterprises specifically form expositions of their products for it, present commercial offers here, and familiarize with the terms of implementation.
- Where can I learn about the investment proposals of Vitebsk enterprises and how can I attend the business forum?
- The business forum will be held on October 15-16. The concert hall "Vitebsk" will become the exhibition platform. The forum program is posted on the official website of the Vitebsk Regional Executive Committee, where you can also find a list of links to the websites of the region's enterprises and learn more about their products.
Diana KURILO,
BELTA.-0-