REGIONAL COOPERATION AND ECONOMIC INTEGRATION

PART V:
conventional production and processing for mass consumption with superior
qualitative features.
• Car parts: focus on the companies-suppliers of the new car factories and
manufacturers of trucks / heavy vehicles.
• Banking and financial services.
• Engineering: specialized services, design and construction.
• Wood industry: above all, making furniture from wood, which is based on
handicraft skills.
• Information-communication technology: products and services with the possibility
of making software, administrative-business services, initiatives that are based on
the capabilities of the universities and research centers.
• Pharmacy, health care and clinical researches, as well as the chemical industry.
• Public-private partnerships: energy, telecommunications, infrastructure,
metallurgy, mining and geological researches.
• Textile industry: short-term production of brand clothes and facing certain
markets.
• Tourism.
In addition to these sectors, further liberalization in the field of the public infrastructure
companies and development of the programs for public-private partnerships are seen
as the investment opportunities and as important elements for the revival of investment
environment.
There is a number of key, serious challenges that are before the economic development of
Serbia, and which can be solved by increasing foreign direct investment:
• High and increasing unemployment and further pressures on employment that
occur as a result of necessary economic restructuring.
• A significant trade deficit with import which far exceeds export.
• Significant structural and competitive problems facing the Industry of Serbia,
whose results are still not over 1989. In spite of that, there is no evidence of
significant changes in industrial production in the coming period to 2012.
• Because of weaknesses in the process of reform and modernization, progress
cannot be expected without significant new foreign investment in competitive
and modern sectors of industry, agriculture and services.
• Serious deficiencies in the institutions that deal with the implementation and
management of reforms and modernization.
Serbia is faced with strong competition in order to achieve its goals since the majority
of countries have made more significant progress when it comes to the overall economic
reforms over the past 10 years, and many of them have already established the base of foreign
investors. Many neighboring countries have established strong investment promotion
agencies that have both marketing and sector expertise. Many countries have developed
industrial parks for new investors who can build their plants there. In most countries, there
are mechanisms with which both private owners and local authorities provide land and
services. In addition, all countries offer specific investment incentives. This impact is
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