Dr. Mitko Vassilev, Managing Director of German-Bulgarian Chamber of Industry and Commerce
Dr. Mitko VASSILEV is the Managing Director of the German-Bulgarian Chamber of Industry and Commerce (GBCIC/AHK Bulgarien) since its establishment in 2004. Prior to that, Dr. Vassilev headed the Representation of the German Economy and the Business Club of the German Economy in Bulgaria. Since 2003, Dr. Mitko Vassilev is also the representative of Bavaria in Bulgaria. Dr. Vassilev graduated in Foreign Trade at the Berlin Institute of Economics. Since 2004 he has been an adjunct associate professor at the Faculty of German Engineering Education and Industrial Management at Technical University Sofia.
Dr. Vassilev, you are a long-standing managing director of the German-Bulgarian Chamber of Industry and Commerce. How many companies are members of the Chamber?
Since 1993 I have been the head of the German Economy Representation (GER) in Bulgaria and since 1995 - the Business Club of the German Economy (BCGE) in Bulgaria. Both organizations are the forerunner of the German-Bulgarian Chamber of Industry and Commerce (GBCIC), founded in 2004, which is today the largest bilateral chamber in Bulgaria and the only business organization of its kind established under an international agreement between the governments of Germany and Bulgaria. We currently have 581 members, with the aim of exceeding 600 very soon.
What is the value of the investments that German companies have made in Bulgaria in the last 10 years?
The impact of German direct investments on Bulgaria's economy is undeniable. According to the latest BNB data, investments from Germany in 2022 amount to 234.8 million euros. The BNB has been providing official data on German direct investment in Bulgaria since 2014, and in the same year it was negative, amounting to -81.1 million euros and rising to a record level of 318.0 million euros in 2020.
What are the reasons why German companies choose to invest in Bulgaria?
Since 2005, GBCIC has conducted an annual survey among its members on the business environment in Bulgaria. The results of the survey give an insight into the challenges and problems faced by German companies in the country, but also highlight the advantages of Bulgaria as a place to invest and do business. We are currently processing the most recent data from the survey, which we conducted between March and April 2023, and are due to officially release it in June 2023. In response to the question "Would you invest in Bulgaria again?", 100% of respondents in 2022 said they would choose Bulgaria again as a location for their investment.
The following factors are assessed by German businesses in Bulgaria as positive: cost of labour; tax burden and tax system; skilled workforce, most with foreign language skills; availability of funding for the next EU programming period 2021-2027; EU membership.
You launched the "breakfast for investors" initiative, which aims to create a format of direct conversation in which companies can raise their issues and proposals. What are companies sharing?
The purpose of the meeting of the German business in Bulgaria with the interim Minister of Economy and Industry Nikola Stoyanov during the "Breakfast with Investors" held on 28 October 2022 was the state in the face of the Ministry of Economy and Industry to get feedback on the problems of the business, where companies see opportunities to improve their operational work. The issues discussed by the representatives of the German business in Bulgaria with Minister Stoyanov were related to the lack of workforce, high electricity prices and increasing Bulgaria's competitiveness. A desire was expressed that the efforts of the state should also be directed towards improving education in the country. They also put on the table the issue related to the need to update the Bulgarian legislation related to labour migration and mobility in order to facilitate the access of third country nationals to the Bulgarian labour market, thus reducing labour shortages in key sectors.
Bulgaria's trade with Germany reaches a record 12 billion euros in 2022 How much has our trade increased compared to the previous year? What is the reason for this progress and what are the key goods for trade?
Bulgaria's trade with Germany reached a record €12.08 billion in 2022, according to the latest updated data from the German Federal Statistical Office, up 23.2% from 2021. Over the period, Bulgaria exported goods worth EUR 6.680 billion to Germany (here the increase compared to 2021 is 26.8%), while imports amounted to EUR 5.399 billion (the increase compared to 2021 is 19.1%).
Unlike in the first decade of the 21st century, when the interest of investors from Germany was mainly oriented towards classical sectors and industries, today more and more investments are directed towards export-oriented sectors of the Bulgarian economy with high added value, such as the IT industry, the electrical industry and the automotive industry.
The Interim Minister of Economy and Industry pointed out that German companies have created over 35 000 jobs in Bulgaria. What is the German employer? What makes him different from the Bulgarian one?
German employers are striving to build a clear and long-term vision as well as strategy for their development in the country, although this is becoming increasingly difficult in view of the constantly changing external circumstances - fighting the effects of the COVID-19 crisis, the war in Ukraine, high inflation, political turbulence, etc. The commitment of the German companies is aimed at sustainability, thus further contributing to the improvement of the Bulgarian economy. German partners are socially committed and are known for their hard work, discipline, honesty and innovation. They invest in modernisation, infrastructure and environmental projects, and contribute both to the formation of the ecosystem in different regions of the country and to a pro-European internal company culture, which in turn leaves a positive imprint on the overall business environment. They take care of introducing high standards and values in business.
Do you assist Bulgarian companies that want to develop on the German markets?
GBCIC is a membership-based organization that supports cooperation between German and Bulgarian companies and institutions, protects the interests of its members by acting as their "voice" vis-à-vis Bulgarian politics, state administration and public, supports various projects in partnership with Bulgarian companies and institutions.
Under the trademark DEinternational we also provide information development, consult German and Bulgarian companies in both directions in order to support their foreign trade activities, organize and conduct business partner searches, business meetings, cooperation exchanges, business trips, conferences, information forums, thematic projects, prepare information materials and analyses on economic and legal issues, carry out market and marketing research. In other words, GBCIC assists both German companies coming to do business and invest in Bulgaria and Bulgarian companies that have set their sights and activities on the German market.
What lies ahead for GBCIC in the second half of 2023?
This year is the year of anniversaries for GBCIC. On 20 September we officially celebrate "30 years of German economy in Bulgaria". We have invited the German Federal Minister for Economic Affairs and Climate Protection, Dr. Robert Habeck, to participate. In June we will celebrate "20 years of Bavarian representation in Bulgaria". In this context, we are expecting a Bavarian business delegation led by Dr. Ulrike Wolf, Director at the Bavarian Ministry of Economy, Regional Development and Energy, which will visit Sofia and Stara Zagora from 14 to 16 June this year. For the 11th consecutive time, the awards of the Bavarian Representation in Bulgaria will also be presented. This year also marks "20 years of Düsseldorf Fair representation in Bulgaria". On 29 June this year we will hold a German-Bulgarian Economic Forum on the topic "Nearshoring and diversification back to EU" in Burgas. The aim of the event is to position Bulgaria as an attractive destination for doing business and to expand bilateral Bulgarian-German economic relations.
The lack of specialized staff and workforce in Bulgaria is increasingly emerging as a painful problem for business development. The GBCIC Board of Directors has decided that the Chamber will work during 2023-2024 on the focus theme "Specialists and Talents for Prosperity and Growth" and prepare and implement various measures and activities during these two years.
