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Romania Romania –– Top Destination for Top Destination for
InvestmentInvestment
BucharestAugust 09th, 2012
2
Romania the largest market Romania the largest market
in South Eastern Europein South Eastern Europe
Member since January1st,2007
European European
Union statusUnion status
RomanianOfficial Official
language:language:
LEU (RON)1EUR=4.5364 RON
1USD=3.6714 RON
(As August 08th , 2012)(As August 08th , 2012)
Domestic Domestic
currency:currency:
NATO,WTO,WB, IMF.
Affiliation:Affiliation:
41 counties and Bucharest
AdministAdminist. .
division:division:
Bucharest
2.1 millionCapital city:Capital city:
21.5 million(7th largest in EU)(7th largest in EU)
Population:Population:
238,391 km2
(9th largest in EU)(9th largest in EU)Area:Area:
Bucharest
1000 km radius
1500 km radius
Bucharest BLACK SEA
3
PAN EUROPEAN CORRIDORS CROSSING ROMANIA
Helsinki – Kiev -Bucharest –Odessa/Alexandropoulos
Pan European Corridors crossing RomaniaPan European Corridors crossing Romania
The Danube river - 2,300kmVII
Helsinki – Kiev - Bucharest –Odessa/Alexandropoulos
IX
Dresden/Nurnberg –Bucharest Constanta/Thessaloniki/Istanbul
IV
4
7.9%7.3%
-6.6%
6.3%
2.5%
-1.6%
4.2%
8.5%
5.2%5.1%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Significant Potential for GrowthSignificant Potential for Growth
2011
Rapid GDP growth rate between 2001-2008;
Severe adjustment of GDP in 2009 and 2010 triggered austerity measures and a Governmental anti-crisis program;
Forecast 2012: + (1~1.2 % )
Source: EUROSTAT; WIIW
Source: National Institute of Statistics; GDP EU 27
GDP Growth Rate
1.6%EU 27
0.3%Slovenia
1.6%Bulgaria
1.7%Hungary
1.8%Czech Republic
2.5%Romania
3.3%Slovakia
4.3%Poland
5
Inflation RateInflation Rate
National Bank of Romania is targeting the inflation;
Disinflation policy to join Euro zone after 2015;
Forecast 2012: 3.2%;
Source: Eurostat; W
IIW
Source: National Institute of Statistics;
Inflation Rate
5.8%6.1%5.6%7.9%9.0%11.9%
15.3%
22.5%
34.5%
6.5%4.8%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
3.1%3.1%EU 27EU 27
Annual average Annual average
Inflation Rate 2011Inflation Rate 2011
2.1%2.1%SloveniaSlovenia
2.2%2.2%Czech RepCzech Rep
3.4%3.4%BulgariaBulgaria
3.9%3.9%PolandPoland
3.9%3.9%HungaryHungary
4.1%SlovakiaSlovakia
5.8%5.8%Romania
6
Human CapitalHuman Capital
Young population (more than 50%
under 40 years old)
Almost 21.5 million people
Demographics
Talent pool
108 universities, 624 faculties
214,800 university graduates/yr
Availability of technical engineers
High industrial experience
Flexibility
Foreign language skillsSource: National Institute of Statistics
100,000 – 200,000 inhabitants
200,000 – 300,000 inhabitants
300,000 – 400,000 inhabitants
more than 1,000,000 inhabitants
Cities with more than 100,000 inhabitants
7
Labor Cost Labor Cost –– A debated topicA debated topic
Gross average monthly wagesGross average monthly wages
EUREUR
Source: Vienna Institute for International Economic Studies
Romania will hold on its competitive advantage related to labour cost;
Adjustment of the salaries growth in the administration system;
174 179204
267
326
428 474 445 460 471
0
50
100
150
200
250
300
350
400
450
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
1525
993
822 790 763
471361
0
200
400
600
800
1000
1200
1400
1600
Slovenia Czech Rep. Poland Slovakia Hungary Romania Bulgaria
Source: National Institute of Statistics;
Gross average monthly wagesGross average monthly wages
2011 2011 -- EUREUR
8
BUCURESTIBUCURESTI
285 285 thouthou
State: 67%State: 67% Private: 33%Private: 33%
CLUJCLUJ--NAPOCANAPOCA
SIBIUSIBIU
TIMISOARATIMISOARA
BRASOVBRASOV
IASIIASI
CRAIOVACRAIOVA
GALATIGALATI
660 thou0 thou
S: 93%S: 93% P: 7%P: 7%5858 thouthou
S: 90%S: 90% P: 10%P: 10%
4242 thouthou
S: 89%S: 89% P: 11%P: 11%
5858 thouthou
S: 69%S: 69% P: 31%P: 31%
3355 thouthou
S: 89%S: 89% P: 11%P: 11%
24 thou24 thou
S: 92%S: 92% P: 8%P: 8%
2200 thouthou
S: 87%S: 87% P: 13%P: 13%
1414 thouthou
S: 86%S: 86% P: 14%P: 14%
PITESTIPITESTI
1122 thouthou
S: 79%S: 79% P: 21%P: 21%
TARGU TARGU -- MURESMURES
BUCURESTIBUCURESTI
10 Major University Centers10 Major University Centers
9
Annual Inward FDI
1294 1212
1946
5183 5212
9060
7250
9496
3490
22201917
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Inward FDI FlowsInward FDI Flows
2011
Third largest inward FDI receiver in Central - Eastern Europe;
Stock: EUR 54.5 bill. (1990–2011);
EUR 30 bill.attracted over the last 6 years only;
Source: Vienna Institute for International Economic Studies Source: National Bank of Romania
EUR m
illion
-1000Hungary
Slovakia
Slovenia
Bulgaria
Romania
Czech Republic
Poland
500
786
1064
1917
3687
9929
10
6.2%
19.1%
12.4%
32%
1.1%1.4%9 % 7.4 %
5.9%
ManufacturingTradeFinancial servicesIT&CReal Estate & ConstructionsEnergy&UtilitiesAgriculture,Forestry&FisheryTransportsOthers
FDI by Field of ActivityFDI by Field of Activity(1990(1990-- 2010)2010)
1.9%0.9%
6.9%
1.9%
3.3%
1.4% 1.4%5.3%
3.9%
4.9%
MetallurgyFood, Beverages, TobaccoTransport meansOil processing, chemicals, rubber & plastic Construction materialsWood processingTextile, wearing apparel & leather goodsIT&C equipmentMachinery & equipmentOthers
Manufacturing
Total Economy
Source: National Bank of Romania
11
2.0%2.0%2.6%2.6%3.8%3.8%4.9%4.9%5.3%5.3%
SpainSpainUSAUSASwitzerlandSwitzerlandCyprusCyprusItalyItaly
5.7%5.7%8.3%8.3%12.2%12.2%17.8%17.8%20.7%20.7%
GreeceGreeceFranceFranceGermanyGermanyAustriaAustriaNetherlandsNetherlands
Top 10 Investing CountriesTop 10 Investing Countries(1990(1990--2010)2010)
1 2 3 4 5
6 7 8 9 10
Source: National Bank of Romania
12
Urziceni
ILIA
E79
TUSNAD
CAREI
Nusfalau
MARGHITA
Virfurile
NUCET
HUNEDOARA
Sarmisegetuza
BAILE HERCULANE
BAIA DE ARAMA
Carasova
58
ORAVITA
MOLDOVA NOUA
Bozovici
Pojejana57A
Socol
E70
Naidas57
Gradinari57
57B
Topleta
ORSOVA
57
Berzeasca
56B
E771
E70
Iablanita
57B
ANINA
67D
6
76Dragesti
Les
NADLAC
Biled
Carpinis
SINNICOLAU
59B
59C
MARE
JIMBOLIA
Lovrin6
Cenad
E68
7
E68Capruta
LIPOVA69
58B
MORAVITA
DETA
E70
Voiteg
59
Berzovia
BOCSA
TIMISOARA
E671
59A
Ortisoara
Vinga
E70
LUGOJ
CARANSEBES
OTELU ROSU
E70
58Saceni
RESITA
658A
68
E673
Savirsin
Faget
68A Cosava
7
Inana
SALONTA
CHISINEU-CRIS79A
ARAD
E671
Nadab
Turnu
Paulis
79A
VARSAND
79
E671
79A
INEU
Gurahont
E79
VASCAU
76
E79
Copaceni
PocolaBEIUS
E60BORS
Sacueni
Baile Felix
Biharia
ORADEA1
19
ALESD E60
1H
de BacauSupiacu
19B
Valea lui Mihai
191F
CataloiIancaBUZAUVernestiVALENIISchitu
Domnestilui Neag22D73C67AE79
PLOIESTI
DE MUNTE
OTOPENI
Adunatii-Copaceni
Calugareni
41
64
OCNELE
Dobroteasa
Babeni
MARI
DRAGASANI
CARACAL
BrincoveniBALSE79
56
CALAFAT Rast
Maglavit
Cetate
56A
E79
55ADabuleni
Bechet 54A
55
Rodovan
CRAIOVA
6Leu
Bumbesti-
Scoarta
Pesteana-Jiu
MOTRUE7
9Brosteni
TURNU SEVERIN
VINJU MARE
67A
Simian 6
Floresti
DROBETA
67
STREHAIA
FILIASI
66
Runcu
Pieptani
67D67
67
TIRGU JIU
ROVINARI
Jiu
66
BalcestiTintareni
E7065C
Hurezani67B
Ganeasa
Giulesti
HOREZU
Maldaresti
Gradistea
TIRGU CARBUNESTI
Cimpu Mare
67B
Bengesti
PolovraciNOVACI
GOVORA
65C 64
BAILE67
64
Clejani
DE VEDE
TURNU MAGURELE
ROSIORII
52
54
CORABIA
E70Stoenesti
54
Daneasa
65A
6
65A
GIURGIUSmirdioasa
ZIMNICEA
51
51A
E85E70
5C
Ghimpati
ALEXANDRIA
Draganesti Vlasca
6
E705B
DaiaE85
5
661
Dragomiresti
72A
CerbuVedea67B
Ungheni
SLATINA
65
E574
COSTESTI
Redea
65AE70
CURTEA DE ARGES
E817C
RIMNICU
VILCEA
Budau
73C
PITESTI
73
7
E574
Golesti
E60
Bildana
Cringasi
Crevedia Mare
TITU
GAESTI
7
A1
BUFTEA1
TIRGOVISTE
I.L.Caragiale
72 71
FIENI
1A
72
CIMPINA
1
A2
213
Vlad TepesCuza
Budesti
OLTENITAGreaca
4
Minastirea3B
CALARASI
Ostrov
Voda
31
Baneasa
Corvin3
Cilibia
Pogoanele
2A
Fundulea
E85
BranestiPasarea
E60
2
3
GaraLehliu
Lehliu
URZICENI
E60
Malu
Costesti
MIZIL
1D
Albesti
1B
E85
2C
2B
3A
SLOBOZIA
Drajna
TANDAREI
21Dragalina
Stefan Voda
3A
Amara
2C
FETESTI
Facaeni
3B
Insuratei
Grivita
FAUREI
GIURGENI21A
E577
2B 21
22C
CONSTANTA
EFORIE NORD
NEPTUNJUPITER
MANGALIA
COSTINESTI
EFORIE SUD
Vama Veche
E87
E675
Ovidiu
Cobadin
Amzacea
Negru voda38
Pietreni
Basarabi
E87
VENUSSATURN
Agigea
39
BABADAG
Capul Midia
NAVODARI
Mihai Scraiu
CERNAVODAKogalniceanu
Mihail
2A
E60
22
22B
E87
Viteazu
22D
HoriaNalbant
Ciucurova
Rohman22A
Topolog
Cerna
E87
Caugagia
22D
2222A
CimpuluiVarful
Cracaoani
Praxia
Tarcau
Ghimes-Faget
MIERCUREA CIUC
COMANESTI
INTORSATURABUZAULUI
UngureniManeciu-
E85
29A
15E576 BORSECDedaZimbar
VESTEM
BUCURESTI
TIRNAVENI
MEDIAS
Blajel
Axente Sever
COPSA MICA
15
Criscior 14B74
SEBES
7APETROSANI
Pui
HATEG
URICANI
Cimpu
Cirnesti E79
66
66
66A
SIMERIA
CALAN
68BDEVA
76
Soimus
ORASTIE
ZLATNA
7
Talmaciu
Obirsia LotruluiVoineasa
BREZOI
7AMalaia
7
E81
E81
Sugag
57CE68
1/7
SIBIU
14
ALBA IULIA
Buru
Albac
BRAD74
Buces
Arieseni
CIMPENI
Bucium
ABRUD
Lupsa 75
HUEDIN
1 1G
1F
CIMPIA TURZIITURDA
BLAJ
Teius
114B
AIUD
Miraslau
E81
14A
IernutE60
CLUJ NAPOCA
Apahida
E60
Rascruci
Dimbu
Camarasu16
Hoghiz
RUPEA
Sercaia
73A
Bilea Lac
Poienari
7C
CIMPULUNG
Rucar
E574
Voila
Cirtisoara1
Avrig
E68
FAGARAS
SincaVeche
1
10BRASOV
PREDEAL
SINAIA
COMARNICMoroeni
71
E60
RISNOV
Bran73A
73
1A
Cheia
SACELE
GHEORGHESFINTU
E68CODLEA
13E574
Reci
ChichisPrejmer
11
SECUIESC12
TIRGU
13A
TOPLITA
ODORHEIUSECUIESC
Corund
13AMURES Praid
SIGHISOARA
Singeorgiu
DUMBRAVENI
13
14
Balauseri
E60
Lupeni
TIRGU
REGHIN16
15
15A 15
SOVATA
BAILE TUSNAD
VLAHITA
Sinmartin
Cozmeni
11B
Sindominic
GHEORGHIENIJoseni
13B 12
12
Ditrau
12A
BICAZ
Lacu Rosu
12C
VISEU DE SUS
Romuli
MARMATIEIPeteaLivada SIGHETU
E81
E58
1C
OAS
Somcul Mare
Surduc
Sinmihaiu Almasului
Sarmasag
RomanasiE8
1ZALAU
SIMLEUSILVANIEI
1F
Tihau
JIBOU1H
1H
Supuru de jos
SATU MARE
Ardud
E81
19A
Dorolf
E671
SatulungE671
1C
Seini
1C
Vama
17C
GHERLA
171C
DEJ
Gilgau
E58
Rastoci
E5
76
17
Cosbuc
17D
Feresti
BAIA SPRIE
BAIA MARE
18Mara
Sacel
18
E81/E58
1CHALMEU
MareTarna
19
Sapinta
de SusVicovu
RADAUTI
DORNEIVATRA
E576
IacobeniRodna
Prundu Birgaului
SINGEORZ-BAI
17C
BISTRITA
NASAUD
E5
8
17
Borsa
Moisei
17D 18
Cirlibaba
Chiril
Brosteni
17B
Borca15B
Poiana Largului
15
MOLDOVENESCCIMPULUNG
GURA HUMORULUI
MoldoviteiVatra
Vama
Sucevita
17A
E58Ilisesti
17
Marginea2
SIRET
E85
Ralos
29C
E581ROMAN15D
26
HUSI
Falciu
Oancea
Foltesti
Smirdan
Tulucesti
E581Bretcu
FOCSANI
MARASESTI
2D
Nehoiu
CislauCiuta
Siriu
RIMNICU SARAT
10
2DLepsa
Vidra
25
Independenta
Balta Alba22
2
Sendreni
Sarat
BRAILA
Traian
Lacu Movila Miresii
2B
GALATI
Gara Berheci
TECUCI
E85
24
Hanu Conachi
BACAU
Secuieni
15D
2GScorteni
Sanduleni
TIRGUOCNA
Oituz
11
SLANICMOLDOVA
12B
Darmanesti
MOINESTI
11A
ONESTI
E574 E85
PIATRA NEAMT
BUHUSI
15
Sirbi
BIRLAD
ADJUD
Podu Turcu11A
24A
26Murgeni
Zorleni
E581
VASLUI
Vulturesti
15D
Dragomiresti
2F
NEGRESTI
24B
Crasna
ALBITA
24B
ISACCEA
Garvan
MACIN22
2B
E87
24A
E583/E58
Stanca29B
E583
Stefanesti
TIRGU FRUMOS
Nicolae Balcescu
Miclauseni
PASCANI
Sabaoani
TIRGUNEAMT
Dobreni
15C
15C Motoc
Strunga
28
Ruginoasa28A
BOTOSANI
SUCEAVA
FALTICENI
29C
29 RutaniE58
HIRLAU
28B
29D
SCULENI
Vinatori
BUCIUMIASI
28
Podu IloaieiE58
2428
PrutRadauti
DARABANI
George Enescu
DOROHOI
29A
Manoleasa
SAVENIUngureni
29
TULCEA
HIRSOVA
Highway Infrastructure Development – 2012-2014
1140 km Under design
and expropriation
300 kmUnder construction
510 kmIn use:
NADLAC
ARAD
TIMISOARALUGOJ
DEVA ORASTIE
SEBES
SIBIU
BORS
ORADEA
MIHAILESTI
CLUJ
CAMPIATURZII
TARGU MURES
SOVATAGHEORGHIENI
PRAID
BICAZ
PIATRA NEAMT
SABAOANI
IASI
ALBITA
SIGHISOARA
FAGARAS
BRASOV
PREDEAL
COMARNIC
FOCSANI
BUZAU
PLOIESTI
PITESTI
BUCURESTI
DRAJNAFETESTI
CERNAVODA
CONSTANTACRAIOVA
CALAFAT
SUPLACU DEBARCAU
GIURGIU
Source: CNADR
13
Logistics serves TradeLogistics serves Trade
The Romanian Corridor is your routeThe Romanian Corridor is your route
Timisoara
Constanta
Thessaloniki
Trieste
Wien
Bucharest
Budapest
Cost to Serve European Hinterland Port Rotterdam Port Koper Port Constanta
Port to warehouse 300.000€ 150.000€ 300.000€
Warehouse 332.750€ 132.000€ 77.450€
Distribution 1.768.775€ 1.295.235€ 1.036.825€
Totals € 2.401.525 € 1.577.235 € 1.414.275
Difference € 824.290 € 987.250
14
national treatment for foreign investors;
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;
Access to incentives and funds provided by EU and
Romanian legislation;
Foreign Investor RightsForeign Investor Rights
15
Implementation period: 2009 – 2013;
Total budget: 1 bn. Euro;
Conditions to be fulfilled:
� Investment of 5 - 10 mil. euro � minimum 50 new jobs created
� Investment of 10 - 20 mil. euro � minimum 100 new jobs created
� Investment of 20 - 30 mil. euro � minimum 200 new jobs created
� Investment higher than 30 mil. euro � minimum 300 new jobs created
Eligible costs:– Tangible assets: buildings (industrial, touristic, medical), installations, machines, equip.;
– Intangible assets: inventions, licenses, know-how;
The amount of the state aid:
� Investment in Bucharest–Ilfov region � max. 40% of the eligible costs (no more
than 22.5 mil. euro)
� Investment in the other regions � max. 50% of the eligible costs (no more than
28.125 mil. euro)
State aid scheme for sustainable economic development
16
Map of Industrial ParksMap of Industrial Parks
50 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
17
� Increase in the budgetary allocations for public investments
from 6.3% of GDP in 2008 to 6.6% of GDP in 2011 (from 32.6 bn.
RON in 2010, to 36.06 bn. RON in 2011)
� Enactement of Public-Private Partnership Law (PPP)
� For the first time, Romania has a PPP law (starting 2010).
� Advantages of PPP:
� Various sources of private financing for public projects.
� Increased efficiency as a result of private management of
projects.
� Reducing costs for local and central administrations.
Fostering public investmentsFostering public investments
the PPP lawthe PPP law
18
Transport, Infrastructure
and Energy
Environment, Agriculture,
Regional Development,
Health System and Justice
Transport and Infrastructure� Comarnic – Braşov Highway – under
concession
� Sibiu – Piteşti Highway– 116 km
� Ploieşti – Buzău – Focşani Highway –
133 km
� Bucharest South and North Beltway
� Târgu-Mureş – Iaşi – Ungheni
Highway– 307 km
Energy� Tarniţa – Lăpuşteşti pumped storage
hydroelectric power station
� 3 and 4 Cernavodă Nuclear Facilities
� Doiceşti Steam Power Plant
� AGRI International Project (Azerbaidjan
– Georgia – România Interconnector)
Environment and Agriculture �Siret – Bărăgan Channel
Regional Development�Eco Project in Ghencea district
�Esplanada Project
�Danube – Bucharest Channel
�Danube overpass, between Brăila and
Tulcea
Health Care System�6 regional emergency hospitals in
Timişoara, Cluj-Napoca, Târgu-Mureş, Iaşi, Craiova and Bucharest
�Turning to advantage the Health Care
Centre "Ana Aslan“
Justice�Building a penitentiary in PPP
PublicPublic--PrivatePrivate--Partnership Projects Partnership Projects
19
CompetitiveCompetitive TaxationTaxation
Corporate Corporate
Income TaxIncome TaxVATVAT
Social ContributionsSocial Contributions
EmployeeEmployee EmployerEmployer
BulgariaBulgaria 10% 20% 12.9% 17.8%
Romania 16% 24% 16.5% 27.75-28.45%
SloveniaSlovenia 18% 20% 22.1% 16.1%
PolandPoland 19% 23% 22.71% 19.48-22.67%
SlovakiaSlovakia 19% 20% 13.4% 35.2%
Czech Rep.Czech Rep. 19% 20% 11% 34%
HungaryHungary 19% 27% 18.5% 28.5%
Source: EU Commission Source: EU Commission
Many Central and Eastern European countries increased the VAT inMany Central and Eastern European countries increased the VAT in
order to cope with economic crisis; order to cope with economic crisis;
Romania is maintaining the flat corporate tax;Romania is maintaining the flat corporate tax;
20
ROMANIA TRADE & INVEST
Body under the
authority of
Ministry of
Economy, Trade
and Business
Environment
In charge with
attracting and
retaining
foreign direct
investment
Promote the
Romanian
exports
Providing free
of charge
SERVICESSERVICES for
foreign partners
in Romania
Search and advice on the best location in Romania to fulfill the company' needs
including site search, analysis & touring around
Search for
industrial
and service suppliers
Value added information on
incentives and other
administrative procedures
SERVICES
Offer trade
information
services and
training support to
the Romanian
companies
Thank you Thank you
for your attention!for your attention!
tel: +40 21 318.50.50tel: +40 21 318.50.50
fax: +40 21 311.14.91fax: +40 21 311.14.91
email: email: [email protected]@romtradeinvest.ro
website: website: www.romtradeinvest.rowww.romtradeinvest.ro
