Since 1995 when China and Bosnia & Herzegovina(short for BiH) established diplomatic relations and in May 2000, the two countries signed economic and trade cooperation agreement, the two countries have been working hard to strengthen the economic cooperation. As we learned, Sarajevo Business Forum 2011, the prime investment summit in the South East Europe, is to open on April 6; prior to the Forum, China’s Foreign Trade has great pleasure to have BiH Ambassador to China, Mr. Amel Kovacevic for an exclusive interview concerning the issue of economic and trade relations between China and the BiH.
Q: How did you introduce Bosnia and Herzegovina to Chinese?
A: First of all, Bosnia and Herzegovina and China have a cooperation and diplomatic relationship since 1995. There has been no open issue between the two countries, and if there is, the issue it is how to develop economic cooperation and increase and intensify our cultural and academic exchanges.
So, my job predominantly is to identify the potentials in Bosnia and Herzegovina and present them to the corporate sector in China. Therefore, I put myself in the Chinese corporate shoes in order to understand what they are looking for abroad and try to identify what in Bosnia and Herzegovina they could be interested in. I have amazingly found a lot of issues and interesting areas that the China’s corporate sector could be interested in and would list them in detail. Bosnia and Herzegovina has a favorable geographic position at the crossroads between the West and the East, the Mediterranean and the Continent; and it is only a short flight distance away from major European business centers. For its economic potentials, its natural resources as well as its European integration process, I believe Chinese companies are more and more aware that BiH is a potential site globally and they will come to explore business opportunities here. BiH, potential candidate for EU membership is located in the south east of the Europe, and has several favorable trade arrangements with the EU and other countries in the region. BiH could be a proper hub for Chinese businesses to explore the market and sell their products in the Europe.
Why BiH is competitive in attracting investment? We have very favorable locations as well as highly skilled and relatively competitive labor force. Besides, there are developmental plans to turn whole country into construction site. So there are plenty of opportunities for foreign companies to invest and start joint ventures by cooperating with the existing companies there. I always position myself as somebody who tried to combine the competitive advantages of Bosnia and Herzegovina and China to make a synergy and win-win case.
Q: How do you comment on China’s economy? During your time in China, what impressed you most?
A: I am happy to witness the success of China’s economy. Now according to the official record, China has surpassed Japan, becoming the second largest economy. China has created a great opportunity out of its large population and abundant resources. I think one of the most important
sources for China’s economic growth is the government’s contribution, because the Chinese government could provide proper and prompt measures for the economy to flourish. In 2009, we rode the global financial crisis, and saw the anticrisis package implemented in China and the tremendous results of those measures. In the global financial crisis, very few countries can say they succeeded in their anti-crisis measures, but China probably can say so.
Secondly, I want to say that China still has a long way to go in order to establish equilibrium of its economic development in all areas. Because of its huge population, it is difficult for China to have an equal economic development everywhere. You know China has realized this issue and proposed in its 12th Five-Year Plan measures and these measures are seriously taken to create an equitable distribution of income in different regions. This is what I believe the main issue, apart from the people’s creativity, the abundant resource etc, which may influence the success of China’s economic development.
What impressed me most? It is a very difficult question to answer. Wherever you go in China, you keep constantly being impressed. If I have to choose one from all the impressive things, maybe I would say the Expo since last year was the Expo year. The Expo, from opening ceremony to the end, was brilliantly organized. I am very happy to have witnessed such a great, brilliant and unprecedented global event. I think it is difficult for the next host to make such an amazing Expo as Shanghai did.

Q: What are your comments on the mutual economic and trade relationship between China and BiH? What’s your hope for the future development?
A: BiH was not so much oriented towards the market of China, and I would like to encourage the BiH businesses to explore Chinese market. Usually it was oriented to buy from China but not sell to China.
I want to slow the culture of buying from China, by conveying them that China’s market is the largest market in the world with great potential for BiH products. I would try to encourage more BiH companies to come to explore Chinese market. BiH do have competitive and high quality products which can be absorbed in China’s market.
Meanwhile, I hope there will be more Chinese investment in BiH. That is actually one of my dreams as an ambassador. Large investment in some projects is very important for my country. I think it is a momentum to have more investment from China. Since our political and diplomatic relation is perfect, improving this man-to-man, people-to-people, business-to-business cooperation is on the agenda.
BiH welcomes Chinese businesses. It is officially believed that when Chinese comes, it is a win-win situation for all the stakeholders.
I believe the exchange will increase. So far the major products that BiH exports to China are the wine, timber and automobile parts, which BiH exported to China. I really hope more Chinese businesses invest in BiH in 2011 and in future and vice versa. But I know, first of all is to have more exchange of people. People of the two countries, through mutual visiting the other country, could deepen the understanding the potentials there, and naturally they would find more opportunities for expanding their business.
Q: How is the investment situation from China to BiH? Which fields are most welcome for foreign investment there? For those Chinese companies who wish to invest in BiH, what recommendation will you give to them?
A: Right now, we still do not have big players. And only Huawei has been there. Last year BiH received around 15 delegations from China, who all agreed on BiH’s big potential. I think they will be there.
From joint ventures to public works, including railways, pipelines, roads etc, all welcome China’s businesses. BiH is lacking infrastructure and China is very good at building and developing the infrastructure. According to the our reports on BiH’s infrastructure sector,, investment in transportation, storage and communication is inevitable.
BiH has great potential in energy sector especially in hydro and thermal power production field. Power production is one of the most significant export oriented sector of Bosnia and Herzegovina, with long tradition and huge potentials and opportunities for further development and investment. There are concrete projects prepared by relevant governmental bodies to build numerous hydro and thermo power plants as well as wind farms. Chinese reputation in this field is unequivocal and we are very keen to see Chinese corporate players interested to participate. Furthermore, there is great potential development of mini hydro power plants with private sector as well.
There are also other fields that the two countries can have great potential for cooperation, including industrial processing, assembling, tourism, education and other sectors etc. Bosnia and Herzegovina has liberal policies and attractive packages for the foreign investors, which will be presented well at the Sarajevo Business Forum 2011.
Foreign investors should understand the culture, the legal framework, in which you will operate your business. We know the foreign companies need this kind of help, and for that purpose, we do have established Foreign Investment Promotion Agency, which provide facilitation services for the foreign investors, including servicing potential and existing investors, especially during the process of business registration, legal advice for foreign investors, providing of all information related to BiH business environment, investor aftercare policy advocacy, analysis and presentation of attractive sectors for foreign investors as well as good co-operation with all levels of Government in BiH. FIPA services are free and confidential. You know, sometimes the BiH businesses said that the business environment is even much favorable for the foreign businesses than for them.
Q: The Sarajevo Business Forum 2011 is to be held soon. It is an important activity for Bosnia & Herzegovina to attract foreign investment. What is the difference of Sarajevo Business Forum 2011 from the Forum 2010? And please tell us more about this forum and what are your suggestions to Chinese enterprises which planned to attend?
A: This year the Forum will feature projects from energy, infrastructure, agriculture, tourism, wood industry and educational opportunities in the Southeast European region. At the Forum last year, 157 projects were offered to the investors totaling approx 12 billion Euros, and a number of projects is now in the implementation phase. ‘At the time of global economic decline investments are the only vehicle which can bring about economic improvement, stability and prosperity and Sarajevo is trying to position itself via Sarajevo Business Forum 2011 as the regional centre for attracting foreign investments and channeling them to projects in the countries of Southeast Europe. The Forum will be extended from two to last three days. The foreign investors or businesses will come from the US, India, China, Middle East and the European countries.
The new thing this year also is that BiH wants to position the city of Sarajevo as an educational hub. They hope to find investors who could invest in help Sarajevo building up world class universities in Sarajevo which could provide highquality services for the foreign students.
Besides, BiH is planning to reinforce the development of its tourism. There are great opportunities for Chinese businesses to invest in our tourism industry. Bosnia and Herzegovina is establishing itself as one of the newest and most exciting tourism destinations in southeast Europe. However, the BiH is still facing many challenges in the tourism industry such as the bottleneck of transportation infrastructure, accommodation capacities, improving quality and diversity of tourism offer etc. So there are many investment opportunities present there for Chinese investors: opening and construction of new tourism resorts, expansion and upgrading of accommodation and sport facilities of existing resorts, hotels privatization, nature parks commercialization, resort operators and investment in tourism supporting infrastructure, etc. Of course, BiH also welcomes Chinese tourists. Citizens of the People’s Republic of China require a visa to enter, the territory of Bosnia and Herzegovina. However, visa is free of charge.
I suggest Chinese companies should register the forum as soon as possible and if there are problems, please contact us, the embassy. We would try our best to help. For more detailed information concerning the forum, they can refer to the website www.sarajevobusinessforum.com.