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MINISTRY FOR SMALL AND MEDIUM SIZED ENTERPRISES, COMMERCE, TOURISM AND LIBERAL PROFESSIONS. ECONOMIC DEVELOPMENTS AND OPPORTUNITIES IN ROMANIA ROMANIA Luxembourg, 27 February 2008. Basic information. Romania - Area: 238.391 sq. km. - Population: 21,700,000
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MINISTRY FOR SMALL AND MEDIUM SIZED ENTERPRISES, COMMERCE, TOURISM AND LIBERAL PROFESSIONS ECONOMIC DEVELOPMENTS AND OPPORTUNITIES IN ROMANIA ROMANIA Luxembourg, 27 February 2008
Basic information Romania - Area: 238.391 sq. km. - Population: 21,700,000 - Counties: 41 Capital: Bucharest
Benefits of EU Accession • Removal of any obstacles in the trade with EU Member States • Common trade policy with third countries • Harmonization of entire legislation, capital market regulations, taxation, accounting rules => higher transparency and simplification • Structural funds (31 billion euro till 2013) • Open gate for EU towards CIS, Asia, Middle East, Northern Africa • Participation in major projects in the Black Sea Extended Area and in the Central & Eastern European Region • Romania-important role in assuring the energy security for Europe (major transit pipelines, energy production & supply)
Macroeconomic Performance GDP real growth Source: National Institute of Statistics
Macroeconomic Performance Inflation rate Source: National Bank of Romania
COUNTRY RATINGS ROMANIA • Fitch - A- (August 2006) • Coface - A4 (January 2006) • JCR - BBB+ (November 2006) • Moody’ s - Baa3 (September 2006) • Standard & Poors - BBB- (September 2006) World Bank Report 2006: Romania – the most reforming country in the business field
Foreign direct investments- million Euro - Source: National Bank of Romania
FOREIGN DIRECT INVESTMENT Share capital in FDI’s at 30.11.2007: 17.4billion euro 1. The Netherlands - 18,41% 2. Austria - 12,60% 3. Germany - 10,23% 4. France - 10,03% 5. Cyprus – 4,99% 6. Italy - 4,64% 7. U.S.A. - 3,80% 8. United Kingdom - 3,49% 9. Greece – 3,28% 16. Luxembourg – 1,44% Source: National Trade Register Office
Value of Subscribed Capital by Field of Activity Source: Romanian Agency for Foreign Investment
Foreign Investors Advantages • foreign investments allowed in all sectors of economy • possibility to freely manage the company with full ownership rights • full repatriation of capital and profits • protection against expropriation and nationalization • national treatment for foreign investors
New Investment Law- Draft under public debate- Objectives: • Determines the principles, terms and modalities of stimulating investments in Romania, aiming at contributing to the sustainable country development • Full compliance with the EU legislation • Legal/administrative documents will be issued by the Government in order to regulate the state aids schemes for each objective • The goals, objectives, timing, budgets, beneficiaries, eligibility and selection criteria, competent authorities responsible to grant incentives will be established • A responsible authority for implementing and monitoring the legal provisions will be set up
FOREIGN TRADE OF ROMANIA 2001 – November 2007 Source: National Institute of Statistics (www.insse.ro)
FOREIGN TRADE OF ROMANIA- 11 month 2007 - • Total volume: 73.687 million euro (21,6% growth compared to 11 month 2006) • Total volume intrastate: 52.764 million euro • Total Export (FOB): 27.127 million euro • Intrastate export (FOB): 19.571 million euro, representing 72,1% in total export (+13,5% growth compared to 11 month 2006) • Total Import (CIF): 46.557 million euro • Intrastate import (CIF): 33.193 million euro, representing 71,3% in total import (+31,5% growth compared to 11 month 2006)
Romanian Exports vehicles, transport equipment (35,05%) textiles and garments (27,7%); furniture, wood products (22,5%); machinery, electrical equipment (2,9%); metals and articles thereof (4%) minerals (1,4%). Romanian Imports metals and articles thereof (52,1%) machinery, electrical equipment (29,4%); plastics and rubber products (6,2%) stone products (3,4%); vehicles, transport equipment (1,9%); STRUCTURE OF ROMANIA- LUXEMBOURG BILATERAL TRADE
LUXEMBURG FDI’s in Romania • 200,73 million euro share-capital in Romanian companies; • 636companies with Luxembourg capital registered in Romania • Sectors for Luxembourginvestments: industry, services, retailing, wholesale, constructions, agriculture
TOP REASONS TO INVEST IN ROMANIA (1) • Market & Location Advantage: • Second largest market in Central and Eastern Europe (over 21 million inhabitants) • Easy access to the countries of the former CIS countries, Balkans, the Middle East and Northern Africa • Junction of three prospective European transportation corridors nos. 4, 7 & 9 • Resource Advantage: • Skilled labor force, with solid knowledge in technology, IT and engineering • Rich natural resources, including fertile agricultural land, oil and gas • Important potential for tourism
TOP REASONS TO INVEST IN ROMANIA (2) • Economic Advantage • Sustainable economic growth • Functional Market Economy status • Competitive tax policy • Decreasing inflation • Permanent financial assistance for SME's Development • Structural funds • Improving Infrastructure Advantage • Well-developed networks of mobile telecommunications in GSM systems • Highly developed industrial infrastructure, including oil and petrochemicals • Branch offices and representatives of well-known international banks • Newly developed highway infrastructure • Commitment to improve the highway infrastructure to EU standards • Extensive maritime and river navigation facilities
Manufacturing Automotive parts IT & Communication Electric & Electronics Wood processing Construction materials Textile Food processing Infrastructure Outsourcing and logistics Potential Sectors for Investment
THANK YOU ! • MINISTRY FOR SMALL AND MEDIUM SIZED ENTERPRISES, COMMERCE, TOURISM AND LIBERAL PROFESSIONS • Phone: +40 21 4010510 • Fax: +40 21 3150086 • E-mail: dgrbea@dce.gov.ro • Website: www.dce.gov.ro