ASTERA, A PRODUCER OF COSMETICS AND ORAL CARE PRODUCTS, IS ONE OF MANY BULGARIAN COMPANIES LOOKING FOR FOREIGN INVESTMENT PARTNERS TO HELP STRENGTHEN ITS SHARE OF BULGARIAN AND RUSSIAN MARKETS, AND POSITION THEM TO EXPAND INTERNATIONALLY, SAID VIHRA ANDONOVA, GENERAL MANAGER OF THE NETHERLANDS-BASED LARIVE GROUP’S BULGARIAN OFFICE.
MS. ANDONOVA TOLD ATTENDEES AT A MAY 7TH SEMINAR ON INVESTING IN EASTERN EUROPE THAT BUSINESSES LIKE ASTERA, WHICH ARE ALREADY ESTABLISHED IN LOCAL MARKETS, NEED FOREIGN PARTNERS TO SUPPLY TECHNOLOGY, MANAGEMENT EXPERTISE AND RISK CAPITAL TO ALLOW THEM TO IMPROVE AND EXPAND THEIR OPERATIONS.
ABOUT 150 U.S. COMPANIES, INCLUDING AMERICAN STANDARD INC. , A NEW YORK-BASED PRODUCER OF PLUMBING PRODUCTS, HAVE ALREADY FORMED JOINT VENTURES IN BULGARIA, SHE SAID, AND THE GOVERNMENT IS ENCOURAGING FOREIGN INVESTMENT IN THE MORE THAN 24,000 COMPANIES THAT HAVE BEEN PRIVATIZED SINCE 1992.
AS PRIVATIZATION CONTINUES, SHE SAID, ATTRACTIVE AREAS FOR INVESTMENT WILL BE IN CHEMICAL ENTERPRISES, GAS SUPPLY, TELECOMMUNICATIONS, MACHINE BUILDING AND ELECTRONICS.
FOREIGN INVESTMENT IN BULGARIA LAGS BEHIND THAT OF OTHER COUNTRIES IN THE REGION, ACCORDING TO LARIVE. AN INFLATION RATE OF 118% AND A NEGATIVE ANNUAL GROWTH RATE OF 6.1% FROM 1990-94 ARE CONTRIBUTING TO THE LOW RATE OF INVESTMENT.
IN 1995, THE INFLATION RATE DROPPED TO 62% AND THE GROSS DOMESTIC PRODUCT SHOWED A SMALL GROWTH OF 2.5%, INDICATING THE ECONOMY MAY BE ON THE REBOUND.
HOWEVER, BULGARIA HAS HAD SIX GOVERNMENTS IN SIX YEARS, SAID MS. ANDONOVA, AND GOVERNMENT INSTITUTIONS ARE STILL NOT STABLE.
IN THE PRIVATE SECTOR, SHE ADDED, TRADE, SERVICES, TRANSPORT AND INDUSTRY ARE FLOURISHING, AND OFFER STRONG OPPORTUNITIES FOR INVESTMENT.
FOR MORE INFORMATION CALL MARK TOWERY, PRINCIPAL OF THE GLOBAL ADVANTAGE AT (404) 352-9788.
BY BRIANA PEHLMAN