Doing business in romania 2014

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Doing business in Romania - 2014

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  • DOING BUSINESS IN ROMANIA 2014 7/13/2014 A publication by Europe Market Entry Services Ltd trading as The British Romanian Consultancy, www.thebrc.co.uk
  • About The British Romanian Consultancy We are market entry specialists and we help EU and non-EU businesses export, import and invest in Romania. Our services include: - Market Research: Expert Service - Find Your Romanian Business Partners - Assistance / Consultancy - Tailored Presentations About Romania - Tailored Business Trips - Real Estate Evaluations & Transactions - Translation / Interpretation Our clients are: Private companies, Chambers of commerce, Professional associations. 7/13/2014 A publication by Europe Market Entry Services Ltd trading as The British Romanian Consultancy, www.thebrc.co.uk
  • Introduction To Romania 7/13/2014 A publication by Europe Market Entry Services Ltd trading as The British Romanian Consultancy, www.thebrc.co.uk
  • Why Romania? Do not be put off by scandals and rumours Romania is a country that is open to the West and has an energy and willingness to develop and grow embrace it, there are great benefits in both directions! (Interview with Anthony Willats, the Managing Director of Chapman Taylor in Romania) http://www.thebrc.co.uk/being-successful-in- romania-a-british-perspective-2/ British investment and know-how could make a difference in Romania! (Interview with Ambassador David Broucher) http://www.thebrc.co.uk/british-investment- and-know-how-could-make-a-difference-in- romania-interview-with-ambassador-david- broucher/ 7/13/2014 A publication by Europe Market Entry Services Ltd trading as The British Romanian Consultancy, www.thebrc.co.uk
  • Why Should You Do Business In Romania? General considerations: Romania is the second largest consumer in Central-Eastern Europe and the largest one in S-E Europe. Together with its neighbouring countries Romania is part of a 100m market. Romania`s strategic location allows access to countries of the former CIS, the Balkans, the Middle East and North Africa. Romania joined the EU in January 2007, so becoming part of the European Single Market. As a new EU member state, Romania is in the process of adopting standard EU business practices and regulations. Romania is also a member of NATO. Romania is the 9th largest member of the EU 28 by size and the 7th largest by population. The best 10 places to do business in Romania (according to Forbes Romania) are: Bucharest, Timisoara, Cluj-Napoca, Ploiesti, Oradea, Constanta, Sibiu, Brasov, Pitesti, Arad. Romania has many sectors you could invest in successfully: infrastructure (transportation & energy), industry, agriculture and fishery, education and environment, IT&C. 7/13/2014 A publication by Europe Market Entry Services Ltd trading as The British Romanian Consultancy, www.thebrc.co.uk
  • Country Data Location: South-Eastern Europe Area: 238,391 square km ( as big as the UK). Population (on 1st of January 2014): 20,1 million inhabitants. (Source: National Statistics Institute) Capital: Bucharest (the 6st largest city in the EU). Government: Parliamentary Democracy (Semi-presidential republic). Native language: Romanian ( a Latin language which presents similarities with French, Italian, Spanish and Portuguese) Business languages used: English (most used), French, German, Italian, Spanish. GDP: 3.5% in 2013 (Source: Eurostat); 2.6% expected for 2014 and 2.8% for 2016 (Source: European Bank of Reconstruction and Development, EBRD) Religion: Orthodox (majority of population) Currency: relatively stable since 2011 1EUR = 4.39RON (on the 27th of May 2014) Romania aims to adopt Euro in 2019. Neighbours: Hungary, Serbia, Bulgaria, the Republic of Moldova, Ukraine. 7/13/2014 A publication by Europe Market Entry Services Ltd trading as The British Romanian Consultancy, www.thebrc.co.uk
  • Access Airports: Romania has 16 international airports. Henry Coanda / Otopeni is the main international airport and it is located near Bucharest. Other international airports are in: Satu Mare, Arad, Timisoara, Oradea, Baia Mare, Cluj Napoca, Targu Mures, Sibiu, Caransebes, Suceava, Iasi, Bacau, Tulcea, Constanta, Bucuresti/Baneasa. Road infrastructure: 632,8 km motorways and over 16,887 km of national roads (Source: Romania`s Roads and Motorways Authority CNADNR) Harbours: Romania has 2 major seaports at the Black Sea (Constanta and Midia) and river harbours on the Danube (Galati, Braila, Tulcea, Giurgiu). The Danube is connected to the Black Sea by Danube Black Sea Channel. The rail network has 20,077 km the 7th biggest in the EU (Source: Romania`s Railways Authority) 7/13/2014 A publication by Europe Market Entry Services Ltd trading as The British Romanian Consultancy, www.thebrc.co.uk
  • Population of Romania About 54% of Romania`s population lives in urban areas. Main ethnic minorities: Hungarians are the largest community in Romania (6.5%) with a population of 1,227,623. Other minorities are: Italians, Turks, Greeks, Ukrainians, etc. Top 10 biggest cities in Romania: Bucharest, the Capital, is the largest city and counts for 1,883,425 inhabitants. It is followed by: Cluj-Napoca (309,136 inhabitants), Timisoara (303,708 inhabitants), Iasi (263,410 inhabitants), Constanta (254,693 inhabitants), Craiova (243,765 inhabitants), Galati (231,204 inhabitants), Brasov (227,961 inhabitants), Ploiesti (197,542 inhabitants), Oradea (183,367 inhabitants), Braila (168,389 inhabitants). Administrative organization: 41 counties (judete) and Bucharest. 8 Development regions: North-East, South-East Dobrogea, South Muntenia, South West Oltenia, West, North West, Centre, Bucharest Ilfov. 7/13/2014 A publication by Europe Market Entry Services Ltd trading as The British Romanian Consultancy, www.thebrc.co.uk
  • Macroeconomic Data Romania registered the highest GDP growth in the EU in 2013: 3.5% (Source: Eurostat) The European Bank of Reconstruction and Development (EBRD) estimated at the beginning of May 2014 that the Romanian economy would grow by 2.6% this year and 2.8% in 2015. The European Commission estimated the Romanian economy would grow by 2.5% this year and by 2.6% in 2015. IMF estimated a growth of just 2.2% this year followed by an advance of 2.5% in 2015. Romania`s GDP was 139bn in 2013. According to a study by AT Kearney the shadow economy in Romania was 28.4% of the GDP (about 39.5bn) in 2013, up from 38.3bn in 2012 and 38.8bn in 2011. Romania`s budget deficit was 2.5% at the end of 2013. Romania`s rate of inflation has been declining since 2010 down to 3.2% in 2013. The European Commission estimates that Romania`s rate of inflation will go down to 2.5% this year and grow to 3.3% in 2015. Unemployment rate in Romania was 7.3% in 2013. It is estimated to decrease to 7.2% this year and 7.1% in 2015. (Eurostat) 7/13/2014 A publication by Europe Market Entry Services Ltd trading as The British Romanian Consultancy, www.thebrc.co.uk
  • MACROECONOMIC DATA Romania`s GDP grew by 3.8% in the first quarter of 2014. This is the largest annual advance registered by an European Union (EU) member state. Budget (2013 est.): -revenues: $60.11 billions -expenditure: $64.85 billions Public debt: 38.6% of GDP (2013 est.) Taxes and other revenues: 31.8% of GDP (2013 est.) Romania has an investment grade by: - S&P: BBB- with stable outlook and A-3 - Fitch: BBB- with stable outlook - Moody`s: Baa3 7/13/2014 A publication by Europe Market Entry Services Ltd trading as The British Romanian Consultancy, www.thebrc.co.uk
  • Foreign Investment FDI grew by 30% in the first quarter of 2014 (570m), more than half of the investments (290m) being attracted in March 2014. FDI was 2,7bn in 2013, 26.8% higher than in 2012 (2.1%). It was the highest value recorded in the last four years. For the period 2014 2020 Romania was allocated 39bn. Romania`s rate of absorption in 2013 was 29.87%. 192,000 companies with foreign participation in social capital were registered in Romania between 1991 and January 2014. Major foreign investors in Romania come from: Germany, Italy, Netherlands, Spain, Turkey, Hungary, Cyprus, Israel. Foreign companies in Romania have about 40% of the Romanian Turnover. 7/13/2014 A publication by Europe Market Entry Services Ltd trading as The British Romanian Consultancy, www.thebrc.co.uk
  • INTERNATIONAL TRADE I Romania`s trade in 2013 reached 104.8bn, 5.1% higher than in 2012. It was a record volume and it was 4.6% higher than the previously record of 100.2bn in 2011. Romania`s exports in 2013 registered a volume of 49.6bn (10% higher than in 2012), the highest flow of Romanian exports in the history of Romania`s foreign trade. Exports were the main driving force of economic growth in Romania in 2013. Romania`s dispatches towards the EU member states was 8.8% higher in 2013 compared to 2013 and continued to hold a high share of Romania`s exports (69.6%). Exports to non-EU countries were 12.8% higher in 2013. Romania`s exports registered a significant increase to Germany, Italy, France and Turkey. The export of machinery and transport equipment grew from 40.4% in 2012 to 42.0% in 2013 and the export of food, beverages and tabacco grew from 7.5% in 2012 to 8.5% in 2013. Romania`s imports increased by 1.0% in 2013. The import of machinery and transport equipment grew from 33.7% in 2012 to 35% in 2013. Romania`s trade deficit dropped by 40.8% in 2013 down to 5.7bn. 7/13/2014 A publication by Europe Market Entry Services Ltd trading as The British Romanian Consultancy, www.thebrc.co.uk
  • INTERNAIONAL TRADE II Starting the 1st of January 2017 Romania is an EU member which means that Romania: Is part of the world`s largest single market (a market of 500 million people with a total GDP of around 11.00 trillion), an economic zone larger that that of the USA and Japan combined; Benefits from the free trade in terms