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About our prospects when IKEA comes

14/ 09/ 2017
  IKEAs furniture and home furniture store in Sweden is considering opening its own production in Ukraine. However IKEA is not enough for us. On September 7, at his Facebook page, the head of the investment policy department, the advisor to the head of the Lviv regional administration on the development of the region and investment attraction, Roman Mathis, posted information on the possible release of IKEA to the Ukrainian market. Asked if Ukrainians want to see IKEA in our country. The thoughts were divided into two camps. Some are looking forward to one of the most powerful furniture manufacturer in Europe. The second camp, by contrast, is concerned. After all, in their opinion, the presence of IKEA production can negatively affect the national producer. The debate is raging today. At the same time, Matus emphasized that negotiations with the company had been taking place for a long time. Actually, last week they became active within the framework of the 27 Economic Forum in Krynica (Poland). According to the chairman of the regional coordination council of the EBA Western Ukrainian office, Anton Podilchak, who also attended negotiations with representatives of the company, the participants discussed the possibility of placing in Ukraine first of all production divisions. This is important given the numerous positive factors available, such as high-quality human capital, some of the lowest tax rates, as well as the availability of raw materials and a significant market with invaluable potential. From personal experience, I know that attracting a foreign investor to Ukraine is a very fragile process. Many of Europe are interested in the Ukrainian market, but they need time and take all possible risks into account. In what form will IKEA company in Ukraine attend? Will it be retail in the form of a number of shopping malls, or part of their production capacity? It is still difficult to answer these questions. But we can already say that the good news is that they are still considering Ukraine. IKEA Company is interesting both in terms of business model and in terms of production processes. Therefore, I dare to assume that the arrival of such a player in Ukraine will positively affect the business environment. After all, these new jobs are healthy competition, taxes in local and state budgets, innovative approaches to production and management. Negotiations are ongoing. Positive trends regarding the possible construction of the production capacity of the IKEA company in Western Ukraine may change dramatically. So, we must continue to reform investment protection policies, liberalize tax administration, introduce electronic services, and reduce corruption. The information recipe, created last week, shows the publics keen interest in IKEA, which is, to some extent, an unprecedented case and a clear indication of Ukraines readiness for a full-fledged entry of the company. And this, in turn, is a marker of a healthy living economy market. However, our country is not the only IKEA to live. The attraction of high-quality, interesting in terms of technologies of foreign companies positively affects the development of the business environment of the country as a whole and the western region in particular. Therefore, all parties involved in the process of attracting investors should establish closer communication with the foreign business itself. Our cooperation with the local executive power gives a fairly visible result in improving the investment climate in Ukraine. Over the past year more than 50 new companies with foreign investments have been opened. And, according to the data of the Lviv regional state administration, they created as a result more than 12 thousand new jobs. So now we can say that companies with foreign investments, which are represented in the western region, are willing to transfer their experience of doing business to European standards. And this already testifies to the creation of workplaces, the sound payment of taxes, and healthy economic competition. And ... will continue to be. Source: Novoe Vremia

IKEA’s furniture and home furniture store in Sweden is considering opening its own production in Ukraine. However IKEA is not enough for us.

On September 7, at his Facebook page, the head of the investment policy department, the advisor to the head of the Lviv regional administration on the development of the region and investment attraction, Roman Mathis, posted information on the possible release of IKEA to the Ukrainian market. Asked if Ukrainians want to see IKEA in our country.

The thoughts were divided into two camps. Some are looking forward to one of the most powerful furniture manufacturer in Europe. The second camp, by contrast, is concerned. After all, in their opinion, the presence of IKEA production can negatively affect the national producer. The debate is raging today.

At the same time, Matus emphasized that negotiations with the company had been taking place for a long time. Actually, last week they became active within the framework of the 27 Economic Forum in Krynica (Poland).

According to the chairman of the regional coordination council of the EBA Western Ukrainian office, Anton Podilchak, who also attended negotiations with representatives of the company, the participants discussed the possibility of placing in Ukraine first of all production divisions. This is important given the numerous positive factors available, such as high-quality human capital, some of the lowest tax rates, as well as the availability of raw materials and a significant market with invaluable potential.

From personal experience, I know that attracting a foreign investor to Ukraine is a very fragile process. Many of Europe are interested in the Ukrainian market, but they need time and take all possible risks into account.

In what form will IKEA company in Ukraine attend? Will it be retail in the form of a number of shopping malls, or part of their production capacity? It is still difficult to answer these questions. But we can already say that the good news is that they are still considering Ukraine.

IKEA Company is interesting both in terms of business model and in terms of production processes. Therefore, I dare to assume that the arrival of such a player in Ukraine will positively affect the business environment. After all, these new jobs are healthy competition, taxes in local and state budgets, innovative approaches to production and management.

Negotiations are ongoing. Positive trends regarding the possible construction of the production capacity of the IKEA company in Western Ukraine may change dramatically. So, we must continue to reform investment protection policies, liberalize tax administration, introduce electronic services, and reduce corruption.

The information recipe, created last week, shows the public’s keen interest in IKEA, which is, to some extent, an unprecedented case and a clear indication of Ukraine’s readiness for a full-fledged entry of the company. And this, in turn, is a marker of a healthy living economy market.

However, our country is not the only IKEA to live. The attraction of high-quality, interesting in terms of technologies of foreign companies positively affects the development of the business environment of the country as a whole and the western region in particular.

Therefore, all parties involved in the process of attracting investors should establish closer communication with the foreign business itself. Our cooperation with the local executive power gives a fairly visible result in improving the investment climate in Ukraine. Over the past year more than 50 new companies with foreign investments have been opened. And, according to the data of the Lviv regional state administration, they created as a result more than 12 thousand new jobs.

So now we can say that companies with foreign investments, which are represented in the western region, are willing to transfer their experience of doing business to European standards. And this already testifies to the creation of workplaces, the sound payment of taxes, and healthy economic competition. And … will continue to be.

Source: Novoe Vremia

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