A bright outsourcing future is predicted for Ukraine

Before 2012 Transcarpathia will receive around $220 mln. of foreign investment capital. For this amount there were concluded the contracts with western investors willing to develop their production in the Transcarpathian free economic zone (FEZ). At that Ukraine has a good chance to take a leading position on the European market of automotive and electronic outsourcing. Such are the news delivered by Vladimir Prihodko, Director General of Transcarpathian Investment Agency.
According to the LiGABusinessInform reporter, since 2002 international companies have already invested more than $100 mln. into development of their production in the region. Such businesses as “Jabil Circuit”, “Yazaki”, “Flextronics” and others are already present in Transcarpathia. “We are also working on 14 other projects at the moment,” – stressed Vladimir Prihodko. 
Investors are attracted by FEZs, as such zones provide a number of benefits, such as considerable reduction of customs duties. In addition, Ukraine can offer a lot of human resources with good education at a moderate cost. In its turn, business with western companies is very favorable for the region, as apart from the investment capital, new workplaces are created at the plants. At the same time, investors enhance the infrastructure – they build roads, pipelines, etc.
Mr. Prihodko noted that Ukraine may become a leading country on the market of automotive and electronic outsourcing. However, for this the state will have to expand the entrepreneurial preferences, which were curtailed in 2005, as well as to create a better economic climate for the business development.
For example, in China the investors are offered a land with the ready infrastructure – with gas, water, electricity, etc. In Ukraine the companies have to build everything n their own without any support from the government. “Out of each $5 invested in China, $1 is invested by the state,” – noted V. Prihodko.