A Strategic Market Overview on Albania
Before examining the economic and legal aspects of Albania, we think it appropriate to mention to read this great book about Century of Foreign Investment in the Third World briefly some historians and general aspects of the country. The Albania has a rather complex history, which dates back even earlier to when Romano, when Illyria was still an independent kingdom. After the Roman domination, the country must subject (for over four centuries) to the Ottoman Empire, while always keeping intact their ethnic and cultural identity. Finally in 1912 arrives independence, and, after the brackets of the two world wars, with its invasions suffered, and the socialist period (1945 / 1990), Albania is a parliamentary republic.
General information on the Country (Albanian)
Area 28,748 sq km.
Money list: the new Lek, with currently around 125 exchange Lek / 1 Euro.
Religion: 70% are Muslims, Orthodox 20%, 10% Catholic.
In terms of type of territory, the country is mainly mountainous, albeit in areas bordering the coast there are important maritime plains. Moreover, the coast is of considerable value from the landscape. In terms of resources of raw materials (underground), Albania is rich in important natural resources: petroleum, natural gas, various metals.
Recalling some general economic indicators most relevant
Resident population: over 3 million.
Inflation on low annual (2002): approximately 2%
Annual GDP growth: about 4.7% (2002), growth rates are most important in the years immediately preceding; now (February 2005) estimates indicate a growth around 6% per annum.
Minimum salary in Lek to a worker: Less than 12,500 Lek / month at around € 100 per month (February 2004).
The main economic partners for exports.
Italy: 70%; Greece: 13%, Germany: 5.5%.
The main economic partners for imports
Italy: 35%; Greece: 22%, Germany: 6%.
The Albanian economic situation
Corsican In recent years Albania has achieved important goals on the economic front, thanks to structural reforms and stabilization of economic policies implemented by the government. These policy measures are primarily economic allowed the containment of inflationary pressures and a considerable reduction in the public deficit. The level of economic activity has remained high, registering an annual growth of Gross Domestic Product (GDP) around the average of 7-8%.
Even on the face of the international trade situation has presented significant improvements, with an increase in foreign Albanian investment and remittances from emigrants, which resulted in an increase in foreign currency reserves, while the exchange rate has remained stable.
Growth in Albanian manufacturing
In 2001 the Albanian GDP reached 4.2 billion worth U $ D, an increase of 7.3% over the previous year. The good results achieved in 2001, following the positive performance of the three years 1998-2000, when the Albanian GDP has experienced annual increases of 7-8%. Beginning in 1997, when production was affected by the political and financial crisis caused by the collapse of pyramid, the product expressed in the national currency has increased by more than 70%.
Important Albanian sectors
The Albania continues to be a predominantly agricultural country. Indeed, agriculture still contributes about 50% to the entire Gross Domestic Product, and employs approximately 55-60% of the workforce. The manufacturing sector contributes only for 11-12% of GDP to education, also opposed highlighting trends in its two major sub-sectors. In fact, since 1997 there has been a gradual decrease in production in public enterprises (with a few exceptions) to which was the counterpart of a significant increase in private. The construction sector has proved to be among the most dynamic, with annual growth rates between 15% and 21% over the four years. As a result of this strong growth, currently the construction sector contributes more than 15% of GDP to education. In recent years, the transport sector and other service activities have also registered a significant growth.
During 2001 the unemployment rate decreased by about two percentage points compared to the previous year, reaching 14.4%. The government has also planned to increase the financial resources to support and promote effective employment policy.
The decline in unemployment is the result of different dynamics: in fact, while the number of employees in the public sector has been further reduced, those employed in private extra agricultural activities are considerably higher. The number of those employed in agriculture has remained essentially unchanged.
Albanian International trade
During the year 2001 while imports amounted to about 1,332 million U $ D, while exports have reached the level of 305 million U $ D. The resulting trade deficit, which amounted to 1,027 million U $ D, marked a deterioration compared to that of 2000, when the deficit was equal to 814 million U $ D. Despite improvements in the functioning of customs, it may be presumed that the official data on imports real flows. Similar considerations apply to exports, the value of which is sometimes artificially depressed by the exporters for tax reasons.The main trade partner of Albania continues to be Italy, which provide approximately 33% of imports and who have designed more than 70% of exports. In second place are the Greece with 29% of imports and 12% of exports.
Exports Albanians relate mainly clothing and footwear (about 60% of the total), while machinery, foodstuffs and manufactured goods typically constitute the bulk of imports.
Albanian Foreign investments
Based on preliminary data currently available (March 2002), in 2001 the flow of foreign Albanian investment has amounted to about 220 million U $ D, with a considerable increase compared to the level of 2000, when Albanian investment were recorded for 141 million U $ D. Since 1993, when it began to track the flow of foreign investment, a total of over 700 million U $ D was invested in Albania by foreign operators. The increase in foreign investment in recent years is largely linked to the phenomenon of privatisation. In fact, significant revenue has been generated from the sale to foreign investors of both the National Commercial Bank that of Albanian Mobile Communications.
The Albanian financial sector and the Albanian banking system
Currently operating in Albania a dozen commercial banks. The market is largely dominated by the Savings Bank, the largest bank in terms of the Albanian presence in the territory and money, and the National Commercial Bank (NCB). Overall, the activities of these two banks amounted to about 80% of total banking activities. Formerly state-owned, the NCB was privatized in June 2000, but will privatize Savings Bank.
The first Albanian bank with foreign participation was the Italian-Albanian Bank (BIA), created in 1994 as a joint venture between the Bank of Rome and the NCB, with a minority shareholding of the European Bank of Reconstruction and Development (EBRD). Another joint venture bank is the Arab-Albanian Islamic Bank, originally created by the NCB and several Arab investors. It needs to be noted that to date there is no bank that allows Albanians living in Italy to send remittances in Albania, since not present on the spot. By way of comparison, which is observed about half a dozen Greek banks have already opened their offices in Albania, even fairly widespread in the territory, in order to allow remittances of immigrants.A chance not grasped by the Italian banking system, in this respect not forget that immigrants remittances are a crucial source for the Albanian GDP.
Albanian privatization and structural reforms
The Albanian authorities are determined to strengthen the banking system through privatization of the remaining banks to public ownership and improving the regulatory framework in the sector. In this direction, a significant support has been provided by international financial institutions like the International Monetary Fund, the World Bank and EBRD, and some bilateral donors.
The Albanian Infrastructure
The Albania has inherited from the past regime weak infrastructure in the areas of transport, telecommunications and production and distribution of electricity. In recent years, improving the system infrastructure has become the main priority of Albanian government, widely supported by international organizations and bilateral donors. While some significant works, such as the highway between Tirana and Durres, it is now a fait accompli, other major expansion projects and upgrading are being implemented or prepared.
Albanian Transportation Roads
The Albania has a road network of about 16,000 km. During the’90s, the rapid increase in the number of vehicles, traffic growth to and from neighboring countries and the lack of regular maintenance led to a rapid deterioration in the conditions of roads. In recent years, this has prompted the Albanian government to consider upgrading and expansion of road network as a priority objective. The improvement of the road network will lead to positive effects on economic activity and more general improvements in the conditions of social development. In support of retraining programmers of the road system Albanian international financial institutions and bilateral donors have guaranteed funding of more than 200 million U $ D. These loans were for the most part committed to the benefit of the Director-North South and East-West corridor. This is the stretch west terminal ofVIII Pan-European Corridor, which links the Adriatic (Durres and Vlora) with the Black Sea. This project could have the effect of increasing the importance of Durres and Vlora which leads to Regional, also allowing their development as transport nodes to the south of the Balkans. Even in this respect, namely the maintenance / adjustment is the creation of new infrastructure, there are good prospects for foreign investors and companies in Albania, bearing in mind that works like those in speech seem still not entirely within the reach of local businesses , while the central government has given high priority to the resolution of the problem related to the creation and restructuring “improvement” of infrastructure. Strictly Legal in the near future aims to study and, if possible, create, a draft business plan for the development of the port of Durres and roads or railway in order to assume Durres as a possible landing place for international Albania that for neighboring countries not having outlet on the Mediterranean, even by their partners.
Albanian Rail System
The Albania has a railway network of 447 km, which needs immediate intervention retraining for a total value estimated at 278 million U $ D. The main priorities of the Albanian government on the restructuring and modernisation of the line Tirana – Durres, which serves the main urban areas Albanians. Work retraining often see the financial contribution that the Italian government has provided, inter alia, the allocation of funding to 6 million U $ D program through commodity aid. Other programs include the railway line rehabilitation of Durres – Pogradec (which includes a new extension to the border with Macedonia), the construction of a new line from Kosovo Rreshen (whose cost is estimated at 200 million U $ D ), the construction of the line between Pogradec in the port of Thessaloniki (which should receive financial support of the Government greek), the rehabilitation of the railway line between Scutari in Podgorica in Montenegro.
With 80% of maritime traffic to and from the Albania, Durres represents by far the largest port in the country. There are ferry connections with the cities of Bari, Ancona and other ports of the Adriatic Sea. Other port facilities of a certain scale are Vlora, also served by ferry with Italy, and Saranda, located to the south and a smaller volume of passengers and freight read with Greece. Under the Stability Pact was adopted an important project of rehabilitation and expansion of the port of Durres, which in perspective should come to play a significant role in sorting goods for the entire southern Balkans. The cost for the modernization of infrastructure of the port of Durres should get around 23 million U $ D, of which 17 provided by the World Bank. These Albanian investment in infrastructure must accompanied by an improvement of customs procedures and standards and operational safety.
Albanian Air transport
Currently Rinas Airport in Tirana is the only airport infrastructure operating in Albania. Thanks to a recent book of profound modernization (runways, air traffic control, lighting system), the airport is able to provide a service to connect the major cities in Europe. Among the foreign airlines operating flights to and from Tirana include: Albanian Airlines, Adria, Alitalia, Austrian Airlines, Malev, Olympic Air, Swissair, and Turkish Airlines. In addition, they have been preliminarily approved plans for the construction of a new cargo terminal and passengers, to be entrusted concessions to private companies.
In recent years, work began to build a small airport in the city of Kukes, located in the north of Albania. For the future, it also plans to build two airports, to be funded by international funds, in the cities of Vlora and Saranda. Other opportunities for foreign investors or companies are made up of interventions both in the field and in the airport logistics.
The Albania has a large energy potential low cost, with a hydroelectric generating capacity of approximately 16 billion kWh / year. Unfortunately, this potential is only minimally exploited as eight hydropower plants currently in operation have an actual production of no more than 3.6 billion kWh per year. The limited energy production and inefficiencies in its phase distribution causing frequent interruptions of service. The energy sector is one of the highest priorities of the Albanian Government. In the short term, significant funds have been mobilized to finance the importation of electricity from abroad, mainly from Greece and Slovenia. In addition, in May 2000, the KESH, the public company for the production and distribution of electricity, has signed with ENEL a management contract, with the aim of reducing losses during distribution and to improve financial situation. The formulation of solutions medium and long term is one of the issues high on the priority of Albanian government.
The Albanian Governmental Economic Policy Stability
In the short-term macroeconomic policies of the Albanian government are aimed at maintaining sustained growth of the Gross Domestic Product, the level to contain inflation and preserve an adequate level of foreign exchange reserves. In order to achieve a target of GDP growth at around 7%, the Albanian government is determined to continue the policy of structural reforms, mainly in the financial sector and in the basic infrastructure. The forecasts about inflation remain positive and the Bank of Albania is determined to maintain a prudent monetary policy.
Albanian Legislative framework
The Albania, coming from a legislative system of socialist mould, had to first of all address the issue of privatization, in whole or in part, of strategic industries, which is less important for countries with a market economy. The Albania has also provided for the reform of company law, and must be here to say first of all that in the last fifteen years, the country has taken steps to support a major effort to modernize their legal system in general, with a large number of laws on which we must give a positive assessment overall. And ‘clearly essential to the reform of company law, carried out between 1990 and 1995, which explains the essential aspects. It briefly recall four types of companies:
General society, which means that all participants in society, both founders that the new members have a general and unlimited responsibility for social bonds; Limited partnership simple, which means that some members may have a private limited amount of capital and other unlimited liability; Limited liability companies, which means that all participants are responsible only to the extent of capital held within society and to the extent of underwriting; Limited liability companies or limited companies, which are divided into companies listed and unlisted.
Albanian Companies with limited liability
The company cheapest and most common in Albania, for the realization of joint ventures, is the company with limited liability. This company can be formed by several members with an initial capital of 100,000 Lek, which amounted to about € 750-800.
Members are responsible for quota limit social held, while the management of the company is entrusted to a director or a College of Directors in accordance and in compliance with the directives of the Members. The establishment of a private limited company does not require any prior permission from the state and other institution, except for some specific areas of business affecting some key areas of the state and the economy, such as telecommunications, construction, insurance , tourism, food (production and sales), media, oil and energy rises in general. Another form some joint ventures take is that of a company limited by shares, which can be public, private or mixed. The minimum share capital for a public company is 10,000,000 of Lek, amounting to approximately € 80,000, while the minimum share capital for a company limited by shares to private capital is 2,000,000 of Lek, amounting to approximately € 15,000. The number of members is unlimited, there is also the spa A sole shareholder. From the point of view of the limited liability companies provides for a two-tier management system, with an intermediate body between the college administration and the assembly of the shareholders: that the body is a supervisory board.
Albanian Company general and limited partnership simple
These types of companies are not very used, and are appropriate only for small traders and to establish some cooperatives. Branches, branches, representative offices
According to the law on commercial companies, can be set up branches, subsidiaries, representative offices. These entities should follow the same procedures for incorporation as if they were new entities formed. The company was founded following the process of law and administrative procedures; a company obtains legal personality when you registered with the commercial register at the Court of Tirana, but in addition to that, under the law of 7804 on 1/3/94 Chamber of Commerce, a company must be registered in the Chamber of Commerce and Industry in order to become full member.
The Albanian mandatory joint ventures
Some Albanians laws were designed to prevent foreigners from holding a majority of the share capital of some companies. For example, the Law on Insurance leaves the possibility for foreign partners to hold 40% of the share capital, while the law on Albanian investment funds of 1996 provides that at least 50% of the share capital must be held by a partner Albanian. And ‘maybe for these strong restrictions, for example, in the field of insurance there has been a significant development with the participation of foreign partners.
The Albanian rules governing the contract
The Albania has no special law governing contracts. The Contract Act is nothing but a part of the new Civil Code of 1994, which regulates three essential aspects: (i) obligations, (ii) contracts in general and (iii) certain specific contracts.
The Albanian Labor Code
The new code of 1996 repealing all the preceding provisions relating to the discipline of work. The law leaves to free choice of the parties the law and the jurisdiction under which the contract to fall. Some rules provide for the basic hours of work, overtime and the remuneration (base pay). Employment contracts can be collective, individual, group, in the long term, full-time or part-time, a project. The shape of the employment contract is written, but there are also contracts concluded orally, which must be formalized in writing within thirty days, in which case, however, the effects of the contract from the date on which the parties have signed the Agreement Minutes. The termination of employment may occur prior to the deadline if the worker leave their jobs, or perish or be fired, or does not exceed the period. In the case of an appeal of a dismissal, if necessary, decision of the Court, the judge will have to consider in each case the circumstances and determine whether the dismissal was for just cause or not. Unless it is, it can order the employer to compensate the worker with a sum that can, at most, to an allowance equivalent to one year’s salary. If the worker is away from work without a reasonable notice, it must compensate the employer with a sum equal to one week of pay, but may be required to compensate the greatest damage suffered by the employer.
The Albanian Competition Act
The Competition Act provides for a division and / or division requirements companies have a dominant market position. Article 5 of that Act provides that if a company controls more than 40% of the market, the division should take place within six months.
The “Land Law” The law on the reform of land has been approved by the Albanian parliament in 1991 and amended in 1998, with a law of 1997 has been defined in the sale of land building, and now the matter is fully covered.
According to the law the lands are divided into:
A) Agricultural land, plants, olive trees, vineyards, villages and cities;
B) Lands forest, pastures and grasslands;
C) non-agricultural Lands: buildings containing cultural, economic, highways, airports, railroads.
Purchase Albanian and sale of agricultural land and building.
Foreigners can not buy agricultural land in Albania, but may do so through a legal person Albanian, consists observing the Albanian legislation.
The creation of a new Albanian company
As mentioned earlier, the Albanian legislation allows an investor to establish different types of legal persons, such as individual company, partnership, limited partnership, limited liability companies and limited liability companies. They are the last two organizational models to have found a greater spread among investors both domestic and international. In addition, Albania allowed to build up subsidiaries of foreign companies.
Law No 7638 Society on Commercial, inspired by the French and German law, has among its main goals the promotion and development of entrepreneurial activity in Albania. This regulation does not apply, however, to companies not-for-profit (associations and foundations), which remain therefore specifically covered by the provisions of the Civil Code. The Albanian Constitution adopted in 1998 stipulates also that the fundamental rights and freedoms contained in it should apply both to individuals, legal persons that regardless of their nationality.
Both the Law No 7632 on the first part of the Commercial Code that Law No 7667 Commercial Register provide for the possibility to set up subsidiaries in Albanian territory and representative offices. In particular, the Act No. 7667 provides that the registration of a representative office is made with the same procedures and formalities required for the establishment of Albanian society. This has caused some confusion among the judges responsible for examining the application for registration of trade, as foreign entities often have a corporate documentation different from that which would be required to form a company Albanian. Consequently, those who wish to set up a branch or a representative office in Albania need to prepare in a professional manner and appropriate documentation required for registration. It should be added that, even for the simplest situations will require numerous meetings with the competent authorities in order to achieve the required result. In any case it emphasize that many foreign investors operating successfully in Albania through subsidiaries.
Foreign investment and privatization government
Pursuant to the provisions of the Act No. 7764, foreign Albanian investment investments receive treatment equal to that applied to domestic Albanian investment in similar circumstances. It remains, however, excluding the land that remains governed by a special law. Law No 7764 establishes the principle, reaffirmed also in the fabric of the Constitution of 1998, foreign Albanian investments will not be expropriated or nationalized, either directly or indirectly, except by necessity dictated by the public interest. In any circumstance, the subject expropriated will be entitled to receive compensation that is equivalent to the current market value of the expropriated property. Foreign investors have the right to move freely abroad all goods related to Albanian investments in Albania (including profit), based on laws of general application that can not be discriminatory. Examples of these laws concern the tax laws, the provisions concerning exchange rates, the general right of action and decisions of the courts. In any case, investors are strongly advised to support any transfer of capital, especially when carried out through the use of banking services, and related materials required and, more specifically, through the production of documentation demonstrating compliance with the tax obligations. If investors export capital to make Albanian investments or buy goods abroad, it is advisable to prepare the relevant documentation.
The Albanian tax law
In step towards a free market, Albania has launched, especially since 1995, a series of tax laws, with the assistance of the International Monetary Fund, the European Union, the American Department of the Treasury, and other organizations. Currently, the tax system consists of a package of laws and regulations, including law is the No 8438 of 28 December 1998, “On income tax, Law No. 8560, enacted on December 22, 1999 “On the fiscal procedures in the Republic of Albania” and, more recently, a number of laws approved in 2000-2001, containing the so-called New Tax Package, which has made deep and meaningful changes to the Albanian legal tax. The reform of the tax system promoted by the Albanian government is still in place, so we recommend that foreign investors wishing to do business in Albania to take advantage of a specific legal advice to ensure the tax treatment which will be submitted their activities.
Here, it shows a summary table percentage of existing tax system in fiscal 2002 in Albanian:
Tax on company profits 25%
Tax on capital gains 10%
Withholding of payment 10-15%
Royalties on licences, know-how 10%
Income for rents 10%
Excise duties on special products
Wine 50-150 lek / litre
Water Min. 5%
Contributions to Social Security monthly salaries
For employers 34.2%
11.7% for workers
Solidarity Tax Contributor private subject to VAT: lek 5,000 per month
Tax on sales of real estate:
Seller subject to income tax
Seller not subject to income tax
From 0.5% to 3% of the selling price to values exceeding 6,000,000 of lek;
From 200 to 2,000 lek / psm (buildings):
2% of the selling price (more)
Albanian Customs legislation
There are four levels of tariffs:
1) The level 0%, applied to the categories of goods such as pharmaceuticals, equipment to be used in civil aviation, property of artistic nature.
2) The level 2%, which includes categories of goods such as grain, plastics, textile fibers, chemicals and derivatives products in the extractive not finished, a number of machinery and equipment, etc..
3) The level 10%, which applies to certain categories of products such as foodstuffs such as coffee, fruit, vegetables, and light industrial products, such as flax and linen textiles, paper and its derivatives, skin worked.
4) The 15% level which covers cosmetics, perfumes, electrical appliances for the home (appliances) furniture, games, etc.
In order to avoid double taxation on income and capital, and in order to prevent tax evasion, the Republic of Albania has signed bilateral agreements with several countries, including Italy.
The legislation concerning the export
The regulation of imports and exports of goods to and from Albania was deeply renewed by the new Customs Code for the Republic of Albania, adopted by Parliament with Law No 8449, 27 January 1999.
European Customs legislation relating to products Albanians
Albania is the recipient of a large number of preferential treatments from the European Union. In particular, for example, the European Council Regulation No 2007, 2000, applicable until 31 December 2005, provides a series of preferential trade treatment, such as: a) the abolition of quantitative restrictions and measures with equivalent effect, b) exemption from tariffs and measures with equivalent effect .Together applying taxation facilitated to some agricultural products Albanians are recognized exemptions from taxes and customs measures with equivalent effect to be of some textile products, in consultation with the determination of annual quantities as set out in Regulation (EU) No 517/94, both against some foods (eg, trout, carp, wine of fresh grapes). Rates preferential customs are also applied to fresh fish products (prepared or preserved sardines and anchovies).
Albanian Investment Opportunities
The Albania is perhaps the only country among those in transition, whose GDP in the early 2000 was still accounted for more than 50% since agriculture, but gradual decline in subsequent years. The industry is poorly developed and the crisis of 1991 followed by the 1996-97 conflict in the Balkans in 1999, were certainly not contributed to its development, on the contrary lead to some reduction in its production values. The industrial contribution to the formation of GDP, still low in 1996, however, doubled the late’90s and especially in 2000, thanks to renewed interest from foreign investors who have recovered many of the industrial plants Albanians. The weight of the Albanian GDP remains low, and assessed around 10-12%. In the future, tourism could represent an important and attractive to foreign operators, although it depends on developments of the frequent socio-political crisis in the country.
The Italy is by far the main trading partner for Albania. The geographical proximity and the intense political and commercial relations, which have always characterized relations between the two countries, are the main market for the Albania, which allocates to Italy over 70% of its exports and which comes about 35% of imports. It can be said that the value of trade, both on the import front is that of exports, after the slowdown of 1997, as a result of serious disturbances that erupted in Albania, in recent years than ever before.
Regarding the product of trade between Italy and Albania, footwear and clothing, which also adds leather, are among the most important products, or on the side of exports than imports. The buy Italy from Albania but also iron and cast iron, basic metals, wood and fish products. From the side of exports to Albania Italy also provides many of the machines and equipment necessary for the Balkan country, food, vehicles and cleaning products.
Foreign investment in Albania
Foreign investment in Albania are governed by Act No. 7764, 2/11/1993, whose goal is to encourage foreign investment in the country. That law equates foreign investment to those Albanians, providing conditions no less favorable treatment. In case of conflict between the investor and the state (especially the administration), the foreign investor may apply to ‘International Center for Resolution of Investment Disagreements created under the provisions of the International Convention for the Settlement of Disputes on investment (Washington Convention of 18/3/1965). Great importance has for the Italy area of south eastern part of the Balkans. And ‘this market “within reach” of Italian companies for the geographical proximity, but especially some very interesting outlet for forms of commercial and industrial cooperation for small and medium Italian businesses that want to open up international markets. Based on this consideration, it is right in believing investors Eagles Land of the small and medium entrepreneurs who have decided, by their choice of company policy, even in Albania establish an operational structure. Based on research dating back to early 2002, it appears that most companies working with Italian capital were set up for more than half the total in the years’93-95, then between’98-‘99, after there is a sharp decline in new Italian presence.
The strengths of the country can be summarized as follows:
Low labor costs and flexible labor market. The cost of labor in Albania is among the lowest in Europe. The average monthly cost of an employee in the clothing sector amounted to approximately $ 200-250 U D in Tirana and Durres, with even lower levels in other parts of the country. The low cost of labor should not be at the expense of quality and technical labor, in fact, is often better than other countries with similar levels of labor costs (eg Moldova, some parts of Serbia); Availability of significant natural resources. The Albania has important mineral resources, including chromium, nickel, copper, oil and coal. In addition, there are also deposits of bauxite and phosphates, yet little or nothing exploited. Of lesser importance reserves of dolomite, gypsum, salt, clay, volcanic glass, marble and bitumen. Even agriculture has a good potential, thanks to the favorable climate, and offers interesting possibilities for integration in the canning industry; Favorable geographic location. Due to its geographical location, Albania can be used as a basis for the relocation of production processes high content of work (the excellent connections via ferry with Italy ensure a rapid and continuous flow of goods) as well as a sort head for a bridge across the Balkans (particularly in view of projects aimed at facilitating trade with the coast of the Black Sea in ofVIII Pan European Corridor); Access to an interesting local market. The Albania certainly is a small country, yet with limited disposable income. Nevertheless, all those activities that do not require an excessively large scale production can find a local market interesting. The level still limited domestic production leaves open opportunities for foreign investors interested in establishing new production or distribution centers.