German market welcomes Slovaks with their businesses

Companies do not need to establish a local company to expand in Germany.

Poprad-based Tatravagónka is one of the companies with a branch in Germany.Poprad-based Tatravagónka is one of the companies with a branch in Germany.(Source: TASR)

While the automotive sector is the most significant of sectors in Slovak industry, German companies also play an important role. The strongest EU economy is also the most important commercial partner for Slovakia.

The relationship between these two countries enables a mutual exchange of businesses in other areas as well. The interest of companies from Slovakia in moving or opening a branch in Germany is significantly growing now. The Slovak Investment and Trade Development Agency (SARIO) records the continuing interest of Slovaks in the German market, particularly in the subcontracting sector for larger German businesses.

Read also:Companies ride on a successful wave

“The reason is geographical, linguistic and cultural proximity,” SARIO wrote for The Slovak Spectator.

However, expansion is certainly dependent on the financial conditions that Slovak companies are able to negotiate for work in Germany, said Patrícia Tóthová, managing partner at the ProfiDeCon consulting company, which mediates business in Germany.

“Companies have to count profitability after the reimbursement of their labour cost and cost of subcontractors,” Tóthová told The Slovak Spectator.

Small percentage

The current situation of Slovak businesses on the German market reflects the amount of foreign direct investments (FDI). In 2016, there were about €41.321 million in Slovak FDI in Germany, according to the statistics of the National Bank of Slovakia (NBS).

Read more: What incentives can be drawn in Germany? Does Slovakia provide any support? What do companies willing to open their business in Germany have to remember?

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