Government procurement remains a notable challenge, as procedures can be complex, lengthy, and receive criticism for lacking transparency. While Montenegro has adopted EU-aligned procurement laws, their implementation is sometimes inconsistent, and tenders may favor established local players or those who compete predominantly based on price. Partnering with experienced local firms and engaging early in bidding processes can help mitigate these challenges.
Intellectual property rights (IPR) protection, though improved, is another area requiring further attention. Montenegro’s laws are generally in line with international standards, but enforcement remains uneven, and resource constraints can limit oversight. This is especially important for technology, creative industries, and branded goods. U.S. companies are advised to register their IPR locally before market entry and to work closely with legal counsel to monitor and address infringements.
In addition, the business culture in Montenegro emphasizes personal relationships and trust, meaning market entry often requires time to build credibility and networks. Administrative and regulatory procedures, such as licensing, inspections, and permits, have become more streamlined but can be bureaucratic and unclear, especially in regulated sectors. For example, energy projects may require multiple approvals from both national regulators and local municipalities, while defense-related procurement often involves lengthy coordination with multiple government ministries and compliance with NATO standards. The IT sector offers emerging opportunities but also faces challenges linked to underdeveloped cybersecurity standards and implementation, data protection enforcement, and e-commerce capacity. Adopting strong data security practices, ensuring compliance with General Data Protection Regulations, and assessing the reliability of local IT infrastructure are important steps. By combining proactive relationship-building with careful legal and operational planning, U.S. companies can better navigate Montenegro’s market and position themselves for long-term success.
Visit the State Department’s website for background on the Montenegro’s political and economic environment.