The American Chamber of Commerce in Croatia held its traditional event on foreign direct investment. Following a period characterized by numerous crises, geopolitical turmoil, global inflation and economic challenges, countries are turning to creating a stimulating business environment and competitive economy to improve the lives of citizens.

AmCham believes that foreign direct investment brings numerous benefits. These benefits range from stimulating economic growth and including Croatian companies in global value chains to creating new jobs, transferring technologies, knowledge and work models, and, ultimately, higher productivity.

The progress of Croatia as an investment destination is visible. Perhaps the best evidence of this is the recent rise in Croatia’s credit rating to the highest historical level, A-. It is encouraging that almost 80% of AmCham’s members plan to expand their business in Croatia in the next three years, which is an improvement compared to last year’s 73%.

“Although foreign direct investment in Croatia has been relatively high in recent years, its structure is still not optimal. Namely, retained earnings are dominant, while a high share of equity investment refers to foreigners’ investment in real estate in Croatia. However, processes such as regionalization and shortening of supply chains initiated by the COVID-19 pandemic and additionally reinforced by geopolitical tensions open up an opportunity for Croatia to attract new investments. This, along with the continuous improvement of the business environment, even in conditions of labor shortage, could gradually restructure the economy and put a focus on more productive activities and better-paid jobs”, Josip Funda, the World Bank’s Senior Economist, pointed out in his overview of FDI in Croatia over the last decade.

The panel discussion “How to better compete with other markets in attracting foreign investments?” that followed was attended by Goran Romek, State Secretary at the Ministry of Economy; Miroslav Holjevac, President of the Management Board and Director of Sales and Commercial Excellence at Zagrebačka pivovara, and Ivić Vodopija, Director for Eastern Europe at Maersk.

“Croatia has had a continuous growth of foreign direct investment in recent years, and in the first quarter of this year, it brought more than one billion euros. Foreign direct investment is one of the priorities of this Government. For Croatia to remain competitive in attracting investments, its Government and the Ministry of Economy continue to implement the policy of improving the business environment through administrative relief measures, the adoption of the National Plan for the Promotion of Investment and the National Plan for Industrial Development and Entrepreneurship as well as through the new Investment Promotion Act, which will bring even more favorable incentives for investors”, Goran Romek, State Secretary at the Ministry of Economy, pointed out.

Ivić Vodopija, Director for Eastern Europe at Maersk, said that he sees the entire Adriatic, including Koper and Rijeka, as a strategic corridor for supplying European importers and exporters. For him, the Adriatic is not an alternative but the main European corridor. In order to realize its full potential and all the benefits it brings, the development of the railway as a vital factor of the green supply chain must be absolutely prioritized and drastically accelerated. Unfortunately, the pace of development today still falls short of its potential and possibilities, Vodopija concluded.