Retrospective on Sarat Sethi, “Joint Ventures in Czechoslovakia” from Czechoslovakian in Transition Perspectives on Business and Economics, Volume 10, 1992 Sarat Sethi ‘92 is the Managing Partner, Portfolio Manager/Equity Analyst, Douglas C. Lane & Associates; Executive Board Trustee, Lehigh University; Chair, University Committee on Nominations and Trusteeship; President, Martindale Society. Sethi discusses the availability and feasibility of joint ventures in Czechoslovakia (now Czech Republic and Slovakia). His article also touches on foreign investment in Czechoslovakia. What have been the developments of joint ventures in the Czech Republic? The concept of a joint venture does not have specific legal and comprehensive legislation in the Czech Republic. The country adheres to EU competition law and other regulatory frameworks for joint ventures involving foreign companies. One popular form of foreign joint venture is a greenfield investment. This refers to a type of foreign direct investment where a company builds a new facility or operation from the ground up in a foreign country. The Czech Republic has become a popular location for manufacturing and assembly operations. For example, Skoda Auto, the Czech car manufacturer, has long been part of the Volkswagen Group, which has shaped the automotive landscape in the Czech Republic through joint venture initiatives (Volkswagen…, 2024). A new foreign direct investment policy, the “Czech Foreign Investments Screening Act.” took effect in May 2021, establishing the rights and duties of foreign investors and setting screening requirements for Czech targets (Janda, 2024). This law gave more security and enhanced transparency for non-EU countries conducting joint ventures and foreign investment within the Czech Republic. Today, joint ventures in the Czech Republic continue to thrive, especially in sectors like automotive, energy, technology, and manufacturing. The country is an attractive partner for businesses that are looking to expand into Eastern Europe What have been the developments of joint ventures in Slovakia? Like the Czech Republic, Slovakia also lacks specific legislation regarding joint ventures. The Slovak Commercial Code permits joint ventures, but does not provide a detailed legal framework for a ven- ture to follow. However, Slovakia has recently joined other EU Member States in regulating foreign investments within its jurisdiction by adopting the Act on Screening of Foreign Investments (the FDI Act), which entered into force on March 1, 2023. The FDI Act provides for comprehensive regulation of foreign investment screening in Slovakia (Ivančo, 2024). Slovakia is increasingly positioning itself as a tech hub in Central Europe, and joint ventures in the technology and IT sectors have been on the rise. One notable example has been the development of an electric vehicle battery gigafactory plant in Slovakia. The minister of Slovakia said the plant's construction was key for the future of the car industry, a major driver of Slovakia's economy (Reuters, 2023). With sectors like renewable energy, technology, and automotive electrification growing rapidly, joint ventures will likely remain key to Slovakia’s continued economic growth. References Ivančo, Vladimír, (2024), Foreign direct investment reviews 2024: Slovakia. White & Case. Janda, Ivo, (2024), Foreign direct investment reviews 2024: Czech Republic. White & Case. Reuters, (2023, November 23), Chinese-Slovak venture signs deal for battery plant in Slovakia. Volkswagen Group, (2024), The History of Skoda. Retrospective by Randi Conroy ‘25 Finance, with mass communication minor Martindale Retrospectives 4 June 2025
RkJQdWJsaXNoZXIy MTA0OTQ5OA==