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Among countries that emerged after the disintegration of Yugoslavia in end of the 20th and beginning of the 21st century, Serbia and its neighbours are experiencing and anticipating the FDI inflows to support their relatively weak economies. After the initial inflow related to M&A during the restructuring of the financial sector, as the main driver of the economic growth, the manufacturing sector is a natural candidate for the promotion of FDI inflows. Barriers that are recognised by investors in manufacturing sector in Serbia are determined and investor specific interactions are explored, confirming that bureaucracy is the barrier recognised by the majority of investors. Top rated barriers that follow are related to macroeconomic and legal factors.