03 January 2019 - The most common barriers that businessmen point out are grey economy and unfair competition, non-liquidity or recovery of debts, numerous and high taxes, fees at the local level, high contributions on wages, high capital prices and difficult access to loans, barriers in legal regulation, problems of insufficient flexibility of labor market, lack of professional staff and frequent amendments of regulations, said president of the Chamber of Commerce, Vlastimir Golubović.
“In order to overcome those barriers, we need to provide greater flexibility of labor market, and enable the employer more space to cancel the contract of employment in case the employee fails to justify the reasons for his employment, reduce labor costs, primarily contributions thereof. That will provide higher employment, reduce the grey economy and create new jobs. It will also increase minimum wage and consequently, reduce the unfair competition and increase the budget revenues,” says Golubović.
He thinks 2018 was a successful business year. Montenegrin economy recorded high growth rates.
“The highest contribution to growth was made sectors by tourism and construction. Hence, construction activity, enhanced by investment projects, increased by 31,5%. All parameters in the tourism sector recorded an increase,” explains Golubović.
According to him, exchange of goods with abroad increased too, due to increase in import and export. However, coverage rate of imports by exports is still very high.
“High import dependence of our economy is the consequence of narrow production base and high correlation between the import of goods and tourism. We should also add important infrastructure and investment projects related to the construction of new tourism capacities which are important import generators. The increase of services revenue reflects in the reduction of foreign trade deficit. Also, FDI is another economic growth generator,” said Golubović.
He pointed out that Montenegro was constantly working on improving the business environment.
“Business conditions are relatively favorable, and a great number of investors who are willing to invest in our state confirm it. However, the most recent World Bank report shows that we have to work on improving that environment more and with greater speed. That does not mean Montenegro regressed in that sense; it just means that other economies made faster progress in this segment. But, that is a signal that we still need improvement. First and foremost, in obtaining electricity connection, setting up business through the introduction of online company registration, real estate registration, payment of taxes, and many other areas. Business community requires further implementation of reforms and activities that will contribute to the additional improvement of the regulatory framework for investments and development of entrepreneurship,” said Golubović.
Although there are some areas where it is necessary to improve competitive capabilities of Montenegrin companies, it is obvious that the economy is making a progress in fulfilling the requirements for successful performance at foreign market, EU market in the first place.
“One of the positive examples I can give you is that the food manufacturers who got European export numbers for placing their products at the market with 500 million potential buyers. This is the result of efforts of our manufacturers they put in reaching the standards of high-quality and food safety,” said Golubović.
First man of the Chamber of Commerce says that Montenegro is considered to be an attractive destination for both foreign and domestic investors. That is thanks to the visible potentials in tourism, agriculture, transport infrastructure, energy sector, as well as thanks to numerous possibilities for investments in other sectors, especially in less developed regions.
“Ever since it regained its independence, around €9,2 billion have been invested in Montenegro. EU accession negotiation process means accepting new rules that entail harmonization of domestic legislation with the acquis communautaire. The competitive tax system and a set of encouraging measures for domestic and foreign investors is something that makes Montenegro even more attractive,” concluded Golubović.
Source: Cafe del Montenegro
