Romania - Republic of Romania

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FDI in figures | Why you should choose to invest in Romania | Procedures relative to foreign investment | Finding assistance for further information

FDI in figures

The government launched a privatization program to attract foreign investors. The net flow of foreign investment has reached 7,250 million euros (EUR) in 2007, and the stock held by foreign investors amounted to 42,7 billion Euros (EUR) as of 31 December 2007. The distribution of foreign direct investment highlights the industrial sector (32.9% of the total FDI. When divided by industry type metallurgy stands out (7.5%). Other industries that have attracted investors are banking and insurance (23.3% of the total foreign owned stock), large and small retailers (14%), construction (7.8%) and telecommunications (6.5%). The regions which attract the most capital are in the following order: Bucharest, the country's center and south respectively 64.3%; 8.3% and 6.9% of the total stock of foreign direct investments. The main investors in Romania are in descending order Austria (21.4%), the Netherlands (16.3%), Germany (11.7%) and France (8.8%)

Foreign Direct Investment	2005	2006	2007
FDI inward flow (millions USD)	6,483	11,366	9,774
FDI stock (millions USD)	25,817	45,452	60,921
Performance Index*, ranking on 141 economies	26	21	32
Potential Index**, ranking on 141 economies	76	69	-
Number of Greenfield investments***	261	362	366
FDI inwards (in % of GFCF****)	28.5	40.1	25.5
FDI stock (in % of GDP)	26.2	37.4	36.7

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest in Romania

Strong points: - A relatively large domestic market;
- A skilled and cheap workforce;
- An external deficit and a public debt under control.
Weak points: Despite their vast potential, certain sectors such as textiles, clothing, and leather goods (1.7%), and the hospitality industry (0.6% of total FDI in 2007) still hold an insignificant role in the overall amount of foreign direct investment.
Government measures to motivate or restrict FDI: The Romanian government has reaffirmed its willingness to privatize the public sector, and more specifically those businesses in the fields of energy, heavy industry, pharmaceutical companies. The administration which each year is in charge of the formulation, adoption and implementation of privatization is the Authority for the Recovery of the State Property (the Authority for State Assets Recovery-AVAS). Most of the enterprises to be privatized are listed on both principal markets: The Bucharest Stock Exchange and RASDAQ.
The plan to revive investments called Emergency Ordinance 85/2008 for the stimulation of investments.

Procedures relative to foreign investment

Acquisition of holdings: Taking the majority shareholdings of a Romanian company is allowed.
Obligation to declare: The agency on promoting foreign investment n the country can inform one about the necessary permissions required for business setup.
Competent organization for the declaration: Agency for the Promotion of Foreign Investment.

Finding assistance for further information

Investment aid agency: Investing in Romania
Agency for the Promotion of Foreign Investment
National Bank of Romania

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