Košice (source: Adobe Stock)
Strategically located on the eastern border of the European Union, eastern Slovakia is currently undergoing something of an economic transformation. A series of factors, not least its potential role in the post-war reconstruction of neighbouring Ukraine, is boosting the region’s profile as an investment destination.
The most visible symbol of eastern Slovakia’s potential is the Volvo Cars plant currently being built near Košice. Expected to start producing exclusively electric cars from 2026, it will expand the number of carmakers in Slovakia to five, drawing new suppliers to the region.
“The Volvo Cars plant is a landmark investment that underscores the region’s growing capability in advanced manufacturing and sustainable production,” Katarína Miňová, who leads the Košice office of the US-Slovak Chamber of Commerce (AmCham Slovakia), told The Slovak Spectator.
Proximity to Ukraine as an advantage
Eastern Slovakia has the potential to become a major investment region in the coming years. Its proximity to Ukraine was previously seen by some as a disadvantage following Russia’s full-scale invasion, which began in February 2022. But now it is increasingly seen as a benefit: long-term foreign investment will be essential for Ukraine amid ongoing reconstruction and further rebuilding if and when the war there finishes.
“It is the only region bordering Ukraine that is part of the eurozone,” Mikuláš Hodovanec from the Slovak arm of the professional services company KPMG told The Slovak Spectator. He added that the arrival of Volvo and the Slovak government’s plans to initiate cross-border cooperation with Ukraine will further increase the region’s attractiveness and potential for new business opportunities.
