The OECD Investment Policy Review of Bulgaria assesses the climate for domestic and foreign investment in Bulgaria and discusses the challenges and opportunities faced by the government of Bulgaria in its reform efforts. Capitalising on the OECD Policy Framework for Investment, the review includes chapters on trends in foreign investment and their socio-economic benefits, foreign investor entry and operations, the legal and institutional framework for investment protection, investment promotion and facilitation, public governance, and policies to promote and enable responsible business conduct. The review then highlights potential reform priorities to help Bulgaria fulfil development ambitions that align with its commitment to comply with the principles of openness, transparency and non-discrimination as a new Adherent to the OECD Declaration on International Investment and Multinational Enterprises (Declaration).

This investment policy review of Bulgaria looks at challenges and opportunities for attracting more and better investment and the resulting development impact of that investment.

This chapter documents the overall development context in Bulgaria since the late 1990s, describing the current economic situation and the main investment policy reform efforts and identifies specific challenges that hinder investment, economic growth and well-being. It summarises the key findings in each policy areas covered by the Review and provides tailored recommendations.

This chapter outlines investment trends in Bulgaria. It provides information on the evolution of inward and outward FDI flows and stocks and compares Bulgaria’s performance to other similar countries. It also provides information on the relative importance of greenfield FDI and mergers and acquisitions. Bulgaria has performed relatively strongly in attracting foreign investment, but there is need to diversify FDI by destination sector, source country and mode of entry as well as support further internationalisation of domestic firms.

This chapter examines Bulgaria’s current challenges and ongoing reforms. It looks at various indicators which, taken together, determine the country’s ability to attract investment. It also summarises various measures that can be taken to improve the investment climate in the country, notably by investing in innovation and infrastructure projects, addressing skills shortages, implementing SOEs reforms and enhancing competition policy.

This chapter provides an overview of the legal framework for starting and expanding a business in Bulgaria. Particular attention is given to the conditions Bulgaria imposes on the entry of foreign investors and the extent it provides them national treatment once they are established. The chapter also benchmarks Bulgaria’s overall openness to investment, an area where the country performs well.

This chapter provides an overview of provisions in both domestic legislation and Bulgaria’s international investment agreements offering protections for investors. It looks into the rules of expropriation, contract enforcement and dispute settlement as well as the regimes for intellectual property rights and for access to land. It also reviews Bulgaria’s international investment treaty practice and its legal framework for investor-state dispute settlement.

This chapter reviews investment promotion and facilitation policy in Bulgaria. It provides an overview of the overall institutional and regulatory framework, relevant strategic documents, available investment incentives and the role of EU funds in mobilising investment. It also analyses the activities of the national investment promotion agency, InvestBulgaria Agency, benchmarking them to the agencies of OECD countries. Finally, it discusses the progress made in facilitating investment and reducing administrative burdens.

This chapter provides an overview of recent advances and remaining challenges related to public governance in Bulgaria, in particular persisting challenges in the fight against corruption, judiciary and public procurement. It also provides an overview of recent advances and remaining challenges relating to regulatory quality in Bulgaria.

Responsible Business Conduct (RBC) is an important part of the investment climate and is increasingly integrated within policies aimed at integrating quality investment and enhancing sustainable investment. This chapter provides an overview of the RBC landscape in Bulgaria and Bulgaria’s plans for its National Contact Point for the OECD Guidelines for Multinational Enterprises.