The country's top leadership pays great attention to the development of Far East, as a result, an investor’s view, Primorsky territory becomes understandable territory for investments.
The attraction of the region for business is confirmed by the growth of investments in the region’s economy in 2014 (134,7 billion rubles), of this 70 % - private investments. The amount of trade partners is over 100 countries annually. Significant Russian and foreign investors conduct business in the region: Rosneft, Transneft, Gazprom, Sollers, SIEMENS (Germany), КОТРА (Republic of Korea), Lotte Confectionary Co,. Ltd (Republic of Korea), KOMATSU CORPORATION (Japan), SKF (Sweden), Nycomed Pharma (Norway), Rolls-Royce Marine Korea Limited (Republic of Korea), Ernst & Young (Great Britain).
The most important investors – China, Japan, Republic of Korea, Germany.
Large-scale and significant infrastructure projects have been realized in Primorsky territory to provide a range of social and economic competitive advantages – transport infrastructure, oil pipeline, specialized oil seaport “Kozmino”.
Geographic proximity to economic centers of Asia-Pacific Region, which are the strong leaders of global business, on the one hand, and intensification of Russian companies interest to business operations in Asia-Pacific Region, on the other hand.
There are over 414 mln. people (almost 300 mln. people are town dwellers) living within the radius of 1000 km around the center of Primorsky territory – Vladivostok city. Vladivostok is the only city in Russia, which has such a numerous environment. For example, the same distance around Moscow population is less than 100 mln. people. Within this territory (within the radius of 1000 km) it is produced the gross domestic product to the amount of 6,6 trn. USD annually, which consists 9,5% of the gross world product.
It has been constructed new highways, which provide development of international transport corridor. Far-Eastern multimodal transport and logistics hub is under developing on the base of the Airport of Vladivostok.
The gas transmission pipeline “Sakhalin – Khabarovsk - Vladivostok”, the oil pipeline “Eastern Siberia – Pacific Ocean” have been put into operation.
At the present time, Primorsky territory conducts gas infrastructure development, creates new facilities for cogeneration, advanced gas processing, and petrochemistry.
Highly qualified personnel
One of 5 federal universities in Russia, Far-Eastern Federal University, is situated in Primorsky territory. The University is unique resource – up-to-date innovative research and education complex, which is developed to provide investors demand for highly qualified personnel, to develop the innovative economy, broaden international research and technology development of Russia. By 2025 it will be about 50 thousand students not only from Russia but also from Asia-Pacific countries to study in the University, the best professors and leading scientist from all over the world will teach in it.
There are 59 state and non-state educational institutions of higher professional education and secondary vocational education, where 93 thousand of students are studying.
Modern institutes of development
Administration of Primorsky territory in cooperation with Russian fund of direct investments established “Primorye Investment Agency”. The aim of the Agency – to support every investor under the “one-stop shop” principle on every stage of investment projects, which are realized or planning to realize on the territory of Primorsky region.
It was opened the representation of federal Agency for strategic initiatives to promote new projects. Today it is realized National and regional business initiatives in cooperation with the Agency for strategic initiatives in Primorsky territory – it is introduced “roadmaps”, focused on improvement of administrative processes, which are the greater difficulty for investors, the roadmap “Improvement of business climate in the sphere of registering of the land property, construction in Vladivostok” is under developing. It is realized Investment standard and the best regional practices for investment attraction are introduced.
The guarantee fund of Primorsky territory is working. The organization provides guarantees for small business entities and infrastructure organizations, which have applied for in one of the partner banks. The fund rates as the organization with reliable guarantee cover of A+ level (very high-reliability level).
The regional Export development center of Primorsky territory is working. The center work is focused on support of enterprises of non-resource export, development of business contacts with foreign partners, enterprises from other regions of Far East, Primorye producers product promotion on the transregional and foreign markets, which include markets of China. There is a representation of Russian direct investment fund and Far East Development Fund, which are working in Vladivostok.
Unique tax regimes
The tax preferences are provided for big investment projects of any purpose on the territory of the region. According to the law, reduced tax rates are provided for projects to be realized from 2015 with the amount of capital investment, not less than 50 mln. rubles during 3 years or 500 mln. rubles for 5 years. First 5 years profit tax and property tax rates of 0%. Next 5 years – 10% and 0,5% accordingly.
There are some options, provided by special economic regimes, which are in effect in Primorye. The Law “About Free port of Vladivostok”, signed by the President of Russia on 13 of July, came into effect on 12 of October 2015. Today investor can use the range of preferences, provided by the regime, including tax and customs preferences, simplified visa regime, simplified administrative procedure, and others.
Advanced social-economic development territories, which are under developing, also give us a new horizon. Residents of the territory are provided by land plots, equipped with necessary engineering, transport, and production infrastructure and obtain the right for simplified getting of the land plot and priority connection to infrastructure. It is provided attractive terms of tax liability and speed of formalization procedures for investors.