CONSULATE GENERAL OF ROMANIA
Office for Commercial-Economic Promotion
ROMANIA
Member of the European Union
ECONOMIC DEVELOPMENTS AND OPPORTUNITIES IN
ROMANIA
Gabriel DUTU
Chicago, April 14 2010
1
Basic Information
ROMANIA
- Area: 238.391 sq. km.
CAPITAL: Bucharest
- Population: 21,700,000
- Counties: 41
2
Benefits of E.U. Accession

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




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 for 2007-2013)
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)
3
Competitive Taxation
FLAT TAX
16%
VAT
19%
DIVIDEND
TAX
10%
AVERAGE
WAGE (2009)
625 USD
MINIMUM
WAGE
207 USD
Country
Corporate
Tax
Romania
Hungary
16%
16%
Slovakia
Poland
Estonia
19%
19%
20 %
Slovenia
Czech
Rep.
25%
28%
Macroeconomic Performance
GDP real growth
8.3
7.1
7.1
5.7
3.9
7.9
3.9
6.2
4.9 4.9
4.2
2.1
1.5
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
-3.2
-6.1
-5.4
-7.2
5
Macroeconomic Performance
Inflation rate
40.7%
30.3%
17.8%
14.1%
9.3% 9.0%
6.6%
4.8%
7.9%
5.2%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
6
Macroeconomic Performance
Unemployment rate
15
11.810.5
10.4
8.8 8.1
8.9
9.5
7 6.2 5.9
6.6
10
7.6
5.2 4
%
4.4
5
0
1995
1997
1999
2001
2003
2005
2007
2009
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COUNTRY RATINGS
ROMANIA





Fitch
Coface
JCR
Moody’ s
Standard & Poors
-
BBBA4
BBB
Baa3
BB+
(November 2008)
(September 2009)
(February 2009)
(September 2009)
(October 2008)
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Foreign direct investments
- million USD13226
14000
12000
10585
10000
7567 7611
8000
6000
4000
2000
13263
7033
2841
1889
1770
0
2001 2002 2003 2004 2005 2006 2007 2008 2009
9
FOREIGN DIRECT INVESTMENT
Total FDI’s until 31.12.2009: 31.7 billion USD
Share-capital in
1. Netherlands - 18.49%
Number
Romanian
No Country of origin
of
companies
2. Austria - 12.23%
companies
- mil. USD 3. Germany - 10.49%
1
Netherlands
3,456
5,863
2
4. France - 8.18%
Austria
5,375
3,870
3
Germany
16,664
3,326
5 . Cyprus - 5.06%
4
France
5,873
2,594
6. Italy - 4.31%
5
Cyprus
4,255
1,605
7. U.S.A - 3.34%
6
Italy
26,984
1,367
8. Spain - 3.23%
7
U.S.A.
5,755
1,059
9. Great Britain - 3.04%
8
Spain
3,451
1,024
9
Source: National Trade Register Office
Great Britain
2,853
963
Value of Subscribed Capital
by Field of Activity
Industry
50.7%
Services
27.8%
Retailing
5.3%
Construction
1.3%
Transport
Wholesale
6.2%
6.4%
Tourism
1.4%
Agriculture
0.9%
Source: Romanian Agency for Foreign Investment
11
Foreign Investor Advantages


foreign investment 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
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FOREIGN TRADE
2001 – 2009
USD mill.
100,000
80,000
60,000
40,000
20,000
0
-20,000
-40,000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Exports
18,574
21,462
22,796
27,645
32,492
37,741
43,142
49,076
42,509
Imports
25,379
27,566
30,953
38,370
43,889
54,909
69,162
75,632
56,789
Balance
-6,805
-6,140
-8,157
-10,725
-11,397
-17,168
-26,020
-26,571
-14,280
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Source: National Institute of Statistics (www.insse.ro)
MAIN TRADE PARTNERS
Top export partner countries
Top import partner countries
percentage of total export
percentage of total import
Germany
16.50
Germany
16.36
Italy
15.46
Italy
11.38
France
7.38
Hungary
7.39
Turkey
6.61
Russian Federation
5.97
Hungary
5.11
France
5.71
Bulgaria
4.16
Turkey
4.92
Great Britain
3.29
Austria
4.88
Holland
2.89
Kazakhstan
4.58
Ukraine
2.46
China
4.22
Spain
2.31
Holland
3.73
Austria
2.27
Poland
3.43
Poland
1.99
Czech Republic
2.50
Greece
1.81
Belgium
1.99
Russian Federation
1.81
Spain
1.96
U.S.A.
1.69
Great Britain
1.95
14
FOREIGN TRADE IN 2009







Total volume: 99,299.27 million USD
( 25.2% down to 2008)
Export: 42,509.79 million USD (13.9% down to 2008)
Import: 56,789.47 million USD (32.1% down to 2008)
Romanian – USA Trade:
Total: 1,415.95 million USD 34% down to 2008
(2,154.9 million USD)
Export : 743.5 million USD 33% down to 2008
(1,106.7 million USD)
Import : 671.6 million USD 36% down to 2008
(1,048.2 million USD)
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AMERICAN SUCCES STORIES IN ROMANIA:
MAIN INVESTORS
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FORD MOTOR
GENERAL ELECTRIC
ORACLE
QUALCOMM
MICROSOFT
HONEYWELL INTL.
PROCTER & GAMBLE
COLGATE PALMOLIVE
SMITHFIELD FOODS
KRAFT FOODS INTL.
UNITED GLOBAL COM
DELPHI
JOHNSON CONTROLS
EMERSON ELECTRIC
CITIBANK
CAMERON
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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
17
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 various well-known
international banks
• Newly developed highway infrastructure
• Commitment to improve the highway infrastructure to EU standards
• Extensive maritime and river navigation facilities
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Potential Sectors for Investment
•
•
•
•
•
Manufacturing
Automotive parts
IT & Communication
Electric & Electronics
Wood processing
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Construction materials
Textile
Food processing
Infrastructure
Outsourcing and
logistics
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THANK YOU !
CONSULATE GENERAL OF ROMANIA
Office for Commercial-Economic Promotion
Phone: 312.573.8150
Fax:
312.573.9771
E-mail: economic.office@roconschicago.org
Website: www.roconschicago.org
20