Slovak governemnt sees revival in FDI inflow

BRATISLAVA, Oct 23 (Reuters) - Slovakia is in talks with investors on more than a hundred projects worth 4.8 billion euro in total, the government said on Thursday.

The euro zone newcomer saw more than a 90 percent fall in foreign direct investment (FDI) deals in the first quarter as the global downturn strained investment projects, but is confident of luring new ones thanks to euro adoption this year. FDI has been the key growth driver for central Europe, and any signs of a revival will be key indicator for the region's return to growth.

"There are projects of strategic significance among the open ones," economy ministry spokesman Branislav Zvara said.

He said he expected up to 70 investment deals, of various size and value, to be signed within the coming two years.

Zvara said the biggest investments would go into the automotive, electronics and engineering sectors, main pillars of the heavily export-reliant economy, which is expected to contract by 5.7 percent this year. "Slovakia's benefits are the euro, reputation, good experience of investors who are already in Slovakia and also the work force and location," added Zvara.

The country's biggest FDI projects in the past went into the automotive industry -- mainly from Volkswagen (VOWG.DE), PSA Peugeot Citroen (PEUP.PA) and Kia Motors Corp. (000270.KS).

Sony (6758.T) and Samsung Electronics (005930.KS) are the main investors in the electronics sector.

(Reporting by Martin Santa)