1 / 30

Romania – Top Destination for Investment

romanian agency for foreign investment. Romania – Top Destination for Investment. by Oana Nisioi Head of Investment Promotion Department. Bucharest, October 2007. Structure of the Presentation. Geo-strategic position Macroeconomic outlook Valuable human potential FDI performance

alexa
Download Presentation

Romania – Top Destination for Investment

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. romanian agency for foreign investment Romania – Top Destination for Investment by Oana Nisioi Head of Investment Promotion Department Bucharest, October 2007

  2. Structure of the Presentation • Geo-strategic position • Macroeconomic outlook • Valuable human potential • FDI performance • Infrastructure development • Investment legalframework • Potentialsectors for development • ARIS – one stop shop

  3. 1. Geo-strategic position

  4. Romania’s Geo-strategic Position Our friend the wind

  5. Pan European Transport Corridors IV Dresden/Nuremberg - Bucharest Constanta/Thessaloniki/ Istanbul VII The Danube river 2,300 km long IX Helsinki – Kiev - Bucharest – Odessa/Alexandropoulos Romania’s Strategic Location • The Eastern border of the inland European Union • Strategic position at the turning point where EU meets the Balkans and CIS countries

  6. 2. Macroeconomic outlook

  7. GDP Growth Rate Significant Potential for Growth 2006 Source: EUROSTAT, *forecast Source: National Institute of Statistics • Rapid & sustainable GDP growth; • 7.7% in 2006, based on increases in final consumption by 11.5% and in investment by 16.1%; • Highly comparable with EU25 GDP growth rate of 2.9% in 2006.

  8. Inflation Rate Declining Inflation Source: EUROSTAT Source: National Bank of Romania • Consolidation of low inflation (sustainable disinflation); • 3.66% (Mar'07/Mar'06), a record low for the post-1990 period;

  9. 3. Valuable Human Potential

  10. Demographics Talent pool Human Capital • Young population (more than 55% is under the age of 40 and 37% is between 25 and 49 years old) • Almost21.7millionpeople • 160 higher education institutions • 109 thou university graduates • Availability of technical engineers • High industrial experience • Flexibility

  11. ValuableHuman Potential high performances in international competitions high percentage of technically competent professionals(23% are engineering graduates out of 720 students enrolled) highest growth rate of IT specialists in the region(Annually 7000 university graduates in the software field & More then 3.000 students in 105 local Cisco academies) University graduates in Romania (by education field) Source: National Institute of Statistics • strong language skills(English, French, German, Italian, Spanish, Russian, etc.) • large skilled labor force at comparatively low wage rates

  12. CompetitiveLabor Cost Regional Comparison 2006 - EUR Gross monthly wages EUR Source: Vienna Institute of International Economic Studies; National Institutes of Statistics • The average gross monthly wage in Romania is the second lowest after Bulgaria • It is expected to grow by 16.7% in 2007

  13. 4. FDI Performance

  14. Annual Inward FDI Inward FDI Flows 2006 EUR million Source: Vienna Institute of International Economic Studies Source: National Bank of Romania • Record value in 2006; • FDI Stock over EUR 30 bill (1990 –2006); • In the first 7 months of 2007 – EUR 3.6 bill

  15. 1 2 3 4 5 6 7 8 9 10 Major Investing Countries (1990-2005) Source: National Bank of Romania

  16. 5. Infrastructure Development

  17. Highway Infrastructure Development - 2013 IASI ORADEA PIATRA NEAMT BORS SABAOANI MIHAILESTI SOVATA BICAZ ALBITA CAMPIA TURZII TARGU MURES CLUJ NAPOCA GHEORGHIENI PRAID NADLAC SIGHISOARA ARAD DEVA SEBES FAGARAS SIBIU FOCSANI ORASTIE TIMISOARA BRASOV CRISTIAN GHIMBAV LUGOJ PREDEAL COMARNIC BUZAU PLOIESTI PITESTI DROBETA TR. SEVERIN DRAJNA CERNAVODA BUCURESTI CONSTANTA FETESTI CRAIOVA GIURGIU CALAFAT

  18. Ports and Airports SATU MARE BAIA MARE SUCEAVA IASI ORADEA CLUJ NAPOCA TARGU MURES BACAU ARAD SIBIU TIMISOARA GALATI BRAILA CARAS-SEVERIN SULINA TULCEA ORSOVA OTOPENI BANEASA M. KOGALNICEANU DROBETA TR. SEVERIN CONSTANTA CRAIOVA CORABIA OLTENITA CALARASI MANGALIA GIURGIU

  19. Mobile Communication Infrastructure– coverage area - • Consolidated market; • Major international players; • More than 90% network coverage.

  20. Map of Industrial Parks • More than 40 Industrial Parks • Both private & public • Greenfield & Brownfield • Access to utilities • Package of services offered by the park administration • Wide variety of activities to be developed • Some created for high-tech activities

  21. 6. Investment Legal Framework

  22. CompetitiveTaxation Source: CEE-CIS Tax Notes - PriceWaterhouseCoopers Many Central and Eastern European countries reduced considerably their corporate tax in order to diminish the fiscal burden

  23. New Investment Law • Incentives for investments in Romania in: • regional development (including infrastructure) • environment protection • research and development • human resources and social inclusion, including training • Directed according to economic status of each region • Law expected to be passed by end of this year, beginning of next year

  24. Structural Instruments (1+2+3) Structural Funds (1+2) Agriculture Funds EU grant programmes – Structural Instruments and Agriculture Funds European Fund for Regional Development (EFRD): • infrastructure + local development • job creation + maintaining • heath + education European Social Fund (ESF) • employment + training CohesionFund (CF) • large transport + environment projects European Fund for Agriculture and Rural Development (EFARD) Fisheries Fund • For post accession funds - the total amount allocated for the period 2007-2013 refers to more than Euro 33 billion; • For structural & cohesion funds, the allocations are estimated around 19 bill euro & for agriculture, rural development and fisheries more than 7 bill euro.

  25. Structural funds channeled by Operational Programmes Operational Programmes of interest tobusiness

  26. 7. Potential Sectors for Development

  27. Potential Sectors for Investment

  28. 8. ARIS – one stop shop for foreign investors

  29. SERVICES Who is A.R.I.S? Governmental body under the authority of Prime Minister In charge with attracting and retaining foreign direct investment Interface between investors and central & local authorities Providing free of charge SERVICESfor foreign investors in Romania Search and advice on the best location in Romania to fulfill the company' needs including site search, analysis & touring around Value added information on incentives and other administrative procedures Search for industrial and service suppliers

  30. Thank you for your attention! tel: +40 21 233.91.03 fax: +40 21 233.91.04 email: aris@arisinvest.ro website: www.arisinvest.ro

More Related