Doing Business with Foreign Investors in Macedonia June 18, 2014

AmCham Macedonia organized an info session with representatives of Johnson Matthey, EVN Macedonia and Van Hool presenting to local suppliers opportunities for cooperation, and established key procedures and standards in the procurement process. During the event, participant also had the opportunity to hear about their challenges and barriers while cooperating with local suppliers.

In the first part of the info session the representative from Johnson Matthey,  gave intro regarding their procurement procedures, biggest challenges during cooperation with local suppliers and list of goods and services so far procured from local suppliers. Lack of international standards for quality and work safety, as well as non-transparent operation and not following  strict procedures are the main challenges and barriers that their are facing in cooperation with local suppliers.

The Procurement professional from EVN Macedonia presented  in details the list of goods, services and works and explained the different procurement procedures that the company follows. Maintaining continuous quality of supplies/performance and consistency and sustainability of the local market suppliers are part of the challenges they face. EVN’s procurement website created to encourage cooperation with local suppliers was also presented.

In the second part, after presenting the facts about the company,  the representative from Van Hool explained what they usually procure from local suppliers mentioning several success stories and giving guidelines how a local supplier can start cooperating with them.

AmCham Macedonia invited representative of the Directorate for Technological Industrial Development Zones, to explain the special customs procedures used in the development zones, since generally these procedures are not well known or understood among the local business community. Present business representatives expressed concern that the procedures were unnecessarily complicated, discouraging some potential local suppliers or even making them uncompetitive when compared to suppliers from other countries.

All presenters highlighted that meeting the obligations undertaken is a strong reference that allows qualification of these companies in their local organizations an opportunity to sell to other companies in the same group around the world.

During the Q&A session it was pointed out that most of the foreign companies in the country so far do not cooperate with local companies from the financial sector (banks, consulting and law firms), since contracts for these type of services are concluded on a global level. However they are opened for future cooperation and they are inviting all interested companies to submit proposals.

Creation of strong local supplier base that meets international standards,  and can fulfill the requirements set by the foreign companies operating in the country, is one of the factors that influences whether a company decides to invest in a certain location, as well as their competitiveness in that location. The greater the cooperation, the greater the investments’ impact on economic development, promotion of standards and the competitiveness of local suppliers. However, local suppliers must be aware that the procedure to start procure locally goods and services that are already purchased on a global level is long lasting and involves many laboratory tests and inspections.

The event was a great opportunity for networking, giving local suppliers chance directly to communicate with the representatives from foreign companies in the country and to exchange contact details.

The event was published on the following web portal: Faktor

Category: Events