Doing Business In - International Franchise Association
Doing Business In - International Franchise Association Doing Business In - International Franchise Association
Return to table of contents Chapter 1: Doing Business In the Czech Republic • Market Overview • Market Challenges • Market Opportunities • Market Entry Strategy Market Overview Return to top The Czech Republic boasts one of the region’s most prosperous and industrialized economies. The country’s strategic location, well-developed infrastructure, and skilled labor force attracts strong flows of foreign direct investment (FDI). There is high demand for U.S. products and services, which are known for their good quality and advanced technology. Economic growth was a robust 6% from 2005-7, dropping to 3.4% in 2008. In 2009, the Czech Republic felt the impact of the global economic slowdown with growth dropping to – 4.2% due to a lack of export orders to Western Europe with the industrial goods sector particularly hard hit. The outlook for 2010 is improving with growth forecast to rebound 1.5 percent. Economic growth is largely based on inflows of FDI and growth in exports. Foreign investment is boosting productivity, creating new jobs and raising wages and domestic consumption. In addition to new manufacturing facilities, a growing number of American companies are establishing R&D and sharedservices support centers. The Czech Republic has become a major hub for automotive and electronics manufacturing in Central Europe. Best prospect sectors for U.S. exports are: power generation equipment (includes renewable energy); automotive parts and equipment; electronics; medical products; environmental technologies; and telecommunications and IT equipment. There is intense competition from European companies which have close historical and economic ties to the market. The Czech government’s recent decision to support the expansion of nuclear power generation should create opportunities for the U.S. nuclear industry, which has been active here since shortly after the Velvet Revolution. In addition, the Czech Republic’s inclusion in November 2008 in the Visa Waiver Program has boosted the U.S. travel and tourism sector through much greater numbers of Czech visitors. The Czech Republic’s economic transformation is not yet complete. The government still faces challenges such as the slow pace of legislative reforms and industrial restructuring, lax enforcement of IPR protection, making the public procurement process more transparent, and a growing shortage of highly skilled technical workers. In addition, the government’s reluctance to commit to a time
table for conversion to the euro has many export-oriented businesses concerned. If unresolved, these conditions can have an adverse effect on the business climate and competitiveness of the Czech Republic. Market Challenges Return to top • Political impasse hampers government’s ability to pursue reform • Need for reform of taxation, health care and pension systems growing urgent • Strong competition from European and Asian firms • Declining population and shortage of skilled workers • Possible anti-U.S. backlash from missile defense radar issue • Economic downturn caused by Global Financial/Economic Crisis Market Opportunities Return to top • Power generation equipment (includes renewable energy) • Automotive parts and equipment • Electric and electronics sector • Medical products and services • Telecommunications and computer equipment • Green technologies and services Market Entry Strategy Return to top • (We suggest a regional approach involving one or more Central and Eastern European countries. • It is crucial to find a local partner. • We suggest participating in a Gold Key or trade mission to meet local partners and possible clients. Return to table of contents
- Page 1: Doing Business in the Czech Republi
- Page 5 and 6: Return to table of contents Chapter
- Page 7 and 8: Key Link: http://www.ombudsman.euro
- Page 9 and 10: lack of U.S. firms present, so U.S.
- Page 11 and 12: Key Link: http://ec.europa.eu/inter
- Page 13 and 14: sales. The cadre of agents has expa
- Page 15 and 16: eceptions at industry trade shows i
- Page 17 and 18: http://www.efsa.europa.eu/EFSA/Scie
- Page 19 and 20: Key link: http://ec.europa.eu/consu
- Page 21 and 22: Copyright The EU’s legislative fr
- Page 23 and 24: design. Amendments to the trademark
- Page 25 and 26: Provisions of Nutritional Labeling:
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- Page 29 and 30: Resources Return to top Updated inf
- Page 31 and 32: Automotive Parts and Equipment (APS
- Page 33 and 34: Electronic Components (ELC) Overvie
- Page 35 and 36: Medical Equipment (MED) Overview Re
- Page 37 and 38: Telecommunications Eq. (TEL) Overvi
- Page 39 and 40: Center for e-Commerce www.e-commerc
- Page 41 and 42: • Project financing comes from va
- Page 43 and 44: • Metal detectors • Monitoring
- Page 45 and 46: Financial Services (FNS) Overview R
- Page 47 and 48: Association of Czech Building Savin
- Page 49 and 50: There is room for growth in the fas
- Page 51 and 52: Contacts: Hana Obrusnikova, Senior
table for conversion to the euro has many export-oriented businesses concerned.<br />
If unresolved, these conditions can have an adverse effect on the business<br />
climate and competitiveness of the Czech Republic.<br />
Market Challenges Return to top<br />
• Political impasse hampers government’s ability to pursue reform<br />
• Need for reform of taxation, health care and pension systems growing urgent<br />
• Strong competition from European and Asian firms<br />
• Declining population and shortage of skilled workers<br />
• Possible anti-U.S. backlash from missile defense radar issue<br />
• Economic downturn caused by Global Financial/Economic Crisis<br />
Market Opportunities Return to top<br />
• Power generation equipment (includes renewable energy)<br />
• Automotive parts and equipment<br />
• Electric and electronics sector<br />
• Medical products and services<br />
• Telecommunications and computer equipment<br />
• Green technologies and services<br />
Market Entry Strategy Return to top<br />
• (We suggest a regional approach involving one or more Central and Eastern<br />
European countries.<br />
• It is crucial to find a local partner.<br />
• We suggest participating in a Gold Key or trade mission to meet local partners<br />
and possible clients.<br />
Return to table of contents
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