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y o u r b u s i n e s s pa r t n e r f o r 2 0 1 2
Romania
04
Understanding busineSs
/02
Romania worth talking about,
a solid partner
/03
Infrastructure
06
07
17
18
16
08
18
22
09
FDI at a glance
/06
24
10
26
28
11
30
31
13
Excellence in quality
/09 Tourism
34
Workforce
/09
32
14
38
40
A safe navigation
Table of Contents
15
/12 R&D
41
Romania in a nutshell
/14
42
02 03
01
Romania
Union
(the 9th in EU in terms of size and 7th largest market among the
EU Member States whose stable population exceeds 19 million
inhabitants);
Access to the Black Sea region one of the fastest growing
and one of the largest economic areas outside Asia (300 million
consumers).
Strategic location
EU membership
Market gateway to one of the major single markets worldwide
(access to approximately 500 million consumers).
like:
IMF, WB, OSCE, WTO
As EU Member State, Romania has/enjoys free trade relations
with an important number of countries or groups of countries,
including EFTA, CEFTA and Mediteranean countries; other free
trade agreements are currently under negotiation by the EU
04 05
02
Understanding
business
Biggest GDP in South Eastern Europe;
South Eastern Europe regional leader for attracting FDI, including
Greenfield investment projects;
Ranking 1st among European countries in terms of internet
connection speed and the 2nd worldwide;
1st in the EU in terms of total investment share in GDP (24.6%);
Fastest growth rate in terms of number and quality of IT
specialists in the region;
One of the most important software producers in Eastern Europe
and a top IT outsourcing service provider worldwide;
Resources to become the top gold producer in Europe;
Supporting R&D activities
Largest Renault R&D centre outside France;
Scientific and technological parks for: IT&C, nanotechnology,
microelectronics, bio-technology, micro-electronics & engineering;
Over 50 centres and "incubators" for technological transfers and
related business.
Ford,
Continental, Pirelli, Michelin, Bosch, Siemens, Oracle, IBM,
Ericsson, Microsoft, OMV, Saint Gobain, Procter&Gamble,
Lafarge etc.
03
Romania worth
talking about,
a solid partner
based
global market;
04
Reforming for
the future
Newly
Monetary policy
Reducing the key interest rate from 10.25% in January 2009 to
5.25% in March 2012;
price stability and ensuring a low volatility of the
exchange rate.
Achieving
05
Romania's
investment
policy
The Romanian legislation supports foreign investments
National treatment;
Foreign investment allowed in all sectors of the 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 the EU and the
Romanian legislation.
One-stop-shop
Support
06
FDI at a glance
07
Romania trade
policy
A common European approach
Goals
Create a global system for fair and open trade;
Access markets for European companies, their
workers and
investors;
Ensure that WTO obligations are complied with and international
trading rules respected;
Ensure that trade represents a pillar of strength for sustainable
development.
+20.5% y-o-y
growth rate 20092011);
Export structure (percentage breakdown): vehicles and transport
equipment (41.2%); other manufactured goods (33.4%); raw
materials (7.2%); food, beverages & tobacco (6.4%); chemicals
(6.3%); fuel & lubricants (5.5%).
Import of goods: 54.7 billion Euro (+20.4% & +16.7% y-o-y
growth rate 20092011).
Import structure (percentage breakdown): vehicles & transport
equipment (34.6%); other manufactured goods (30.6%);
chemicals (13.2%); fuel & lubricants (11.3%); food, beverages
& tobacco (6.8%); raw materials (3.5%);
Projected growth rate of export and import over 50% by 2015.
EU common agenda
Pursue active negotiating agenda
10 11
08
Fiscal
consolidation &
taxation
Diminishing the fiscal burden;
One of the EU highest drops
Transfer
Taxation
16% flat tax;
24% VAT standard rate;
9% VAT reduced rate for medicines, books, hotel accommodation,
museum and cinema tickets etc.;
09
Workforce
10
Driving
innovation &
productivity
A path to Europe 2020 and beyond
Horizon 2013
11
Infrastructure
Building the roads for success
Rail
10,776
Roads
Total road length of 198,930 km;
Total national road length of 15,680 km;
National highway network in use 390 km;
over 400 km of highways under construction,
while other
contracts for about 140 km await public bidding;
Two paneuropean corridors on road: IV and IX. The road
network included in the TEN-T amounts to 3,511 km, reaching
7,283 km after 2014.
12
Romania's
global rating
Fitch rating agency
Upgraded Romania's investment rating up to BBB+;
"Investment grade" category, translating into low risk for investment;
Outlook for longterm foreign currency loans upgraded to
"BBB-", as the prospect for longterm ratings is stable.
AT Kearney
Romania is attractive for global services: 25th among 50 countries
worldwide (2011).
Opportunities PPP priority projects
Road infrastructure
ComarnicBraov highway under concession;
SibiuPiteti Highway 116 km;
PloietiBuzuFocani Highway 133 km;
Trgu MureIaiUngheni Highway 307 km;
Bucharest South Beltway & North Beltway;
Energy
Environment
Regional infrastructure
Romania
Romanian
Leading sectors
Engineering for the future
13/ 01
Automotives
Delivering performance
Investment support
State aid for SMEs and large investments;
Fiscal incentives;
Employment and training;
Additional deduction of 20% from the eligible
expenses from
R&D activities;
program ("Cash for Clunkers"), including electric and
hybrid cars since November 2011.
Rabla
Our investments here started with the purchase of Mioveni plant in 1999.
Romania is now the second country of Renault. But for France, Romania is the
The success of the Logan model, the development of the suppliers' network and
the quality of the human resources made us go further and create here a styling
We developed here all the global function for conceiving, manufacturing and
selling cars.
stamping tools and the one of the biggest spare part warehouse of the Group.
18 19
Major players
Automotive components 7.5 billion Euro investment inflows, to increase up to 910 billion Euro by 2012;
Lisa Draxlmaier
Delphi Packard
Solvay-Inergy, Phoenix AG
Dow Automotives
Alcatel
AD Plastik
Lear Corporation
Simoldes Plasticos
BOS Automotive
Hutchinson
Gear boxes
Valeo
Renault
Siemens Automotive
Daimler Chrysler
Ruwel AG
DCI Wallbridge
Star Transmission
Marquardt Schaltsysteme
Coficab
Tires
Continental
HVAC systems
Michelin
Continental
Pirelli
Valeo
Calsonic
Steering Wheels
Kansei
Takata Corporation
Eybl International AG
Exhaust systems
Momo
Borla
Magneto Wheels
Honeywell
Koyo Seiko
Garett
SNR Roulments
Ina Schaffler
Seating
Thyssen
Johnson Controls
Krupp
Faurecia
Coindu
Car producers
Renault
Over 10 years of presence in Romania;
1.7 billion investments;
18,000 employees;
130,000 indirect jobs;
4 million cars;
Logan, Sandero, Duster;
80% cars exported;
Related projects
Gear boxes facility of 214 million Euro of the
RenaultNissan Alliance;
R&D Centre "Renault Tehnologie Roumanie":
450 million Euro.
Ford
September 2007: the former factory of Daewoo
acquired by Ford;
1.2 billion Euro pledged investments (20112012);
B Max model to be launched and produced in 2012;
90% of production to be exported;
3,500 employees; up to 5,000 until 2015.
20 21
13/ 02
IT&C
Opportunities
Organic growth due to low computer penetration below 25%;
EU structural funds in IT worth 383 million Euro by 2013;
Government IT intensive programmes, such as the "Knowledge
Based Economy" and "Computers for Schools" programmes;
Further IT&C growth prospects in both the SME and the
public sector;
Potential development due to the quadrupleplay market and
mobile operators in the 3G segment.
Outlook
IT&C one of the CEE's fastest growing IT markets over the
next few years, with a 9% Compound Annual Growth Rate
(CAGR);
Hardware market growth perspective up to 1.0 billion USD in
2015;
PC sales (including accessories) up to 870 million USD in 2015;
Software spending forecasted to rise up to 305 million USD until
2015;
IT services will maintain the ascending trend reaching 469 million
USD in 2015;
Internet users by 2015 12.77 million inhabitants, from 8.64
million nowadays.
Investment support
State aid for SMEs and large investments;
Fiscal incentives;
Employment and training;
Internationalization and standardization;
R&D: additional deduction of 20% from the eligible expenses for
research and development activities.
Internationally
acknowledged talent pool
European leader and 6th in the world by the number of certified IT specialists;
The 2nd in the region as labour cost competitiveness;
The 1st in the EU with regards to the total number of Computer Science and
Mathematics Olympiad medals earned, 3rd worldwide after Russia and China;
230 IT specialists / million graduates / year, which is one of the highest rates in
the world, exceeding US and Russia;
5 top polytechnic universities, 59 sector universities, 174 private colleges with
technical profile;
Around 9,000 computer science graduates/year, high percentage of manpower in
advanced R&D;
Secondary education in IT available in all cities;
95% of young Romanians speak English, more than 47% speak at least one other
market
call centre
investments in Romania.
Centre for Business Process Outsourcing in finance
Ronald Binkofski
Service centres
13/ 03
green energy
WIND
Ranking 1st in South Eastern Europe in terms of wind potential;
Ranking 1st in Central and Eastern Europe by annual wind power capacity
installations (2011);
energy
investment;
National
Investment support
Financial incentives for significant investments in green energy;
EU funds for upgrading / building new power and heating
production capacities using renewable energy sources: biomass,
micro hydro, solar, wind, geothermal, bio fuels and other;
Fiscal incentives;
Employment and training;
Tradable green certificates system.
Romania Your Business Partner for 2012
Ranking 7th in the EU by Installed Wind Farm Capacity in 2011 (520 MW);
14,000 MW current capacity equivalent to a total annual production of 23 TWh;
Significant wind resources, including a large offshore potential;
Excellent conditions for wind farms development due to onshore areas with
low population;
4,000 MW installed power in 2020 following the implementation of the
government renewable energy sources promotion strategy.
SOLAR
Important solar potential of 210 sunny days per year;
Ranking 23rd in the world regarding the solar potential;
Average solar exposure ranges from 1,100 to 1,300 kWh/m2/year for more
than half of the country's surface;
Main solar regions of Romania: Black Sea coast, Dobrogea and Oltenia with an
average of 1,600 kWh/m2/year.
BIOMASS
Biomass represents the largest potential source for green energy production in
Romania (approx. 88.33 TWh/year);
Only 36% of that potential is currently used, providing excellent opportunities
for growth and development;
27% of Romania's land is covered by forests.
GEOTHERMAL ENERGY
The 3rd highest potential in Europe;
Suitable locations in the Western Plain, Southern Plains (Bucharest region) and
Southern Carpathian regions.
Major players
Hidroelectrica
leading hydroenergy leading hydroenergy supplier in
Romania (over 17 TWh/year);
Iberdrola
started work on its 1,500 MW project, meaning that
it would become the largest onshore wind power
installation in the world when that project is completed
in 2017;
Energias de Portugal
several wind farms totalling 261 MW installed capacity;
CEZ
completed 338 MW of its 600 MW FntneleCogealac
project, aiming to become the largest onshore wind
farm in Europe by the end of 2012;
Monsson Group
began construction on its 150 MW wind park worth 245
million Euro;
Martifer
wind farm (42 MW) and biodiesel production unit.
24 25
13/ 04
Gas sector
Petrochemical
Opportunities
Major PPP projects;
Nabucco project gas transmission pipeline from Caspian Region
and Middle East to Western Europe (Turkey, Bulgaria, Romania,
Hungary and Austria);
AGRI (AzerbaijanGeorgiaRomania Interconnector) gas
transportation project;
SCADA System implementation;
Interconnecting pipeline of the national gas transmission system
from Romania with the South European system on the Giurgiu
Ruse axis;
PEOP ConstanaTrieste pipeline.
Investment support
State aid for big investments;
Access to European funds for
installations, equipment for industrial operators, for energy efficiency improvement;
Major players
Oil sector
expanding and upgrading natural gas & oil transportation and distribution grids;
desulphurization installations, burners with reduced NOx and filters on
OMV-Petrom the 1 oil & gas operator, incorporating gas & crude exploration
st
Fiscal incentives;
Employment and training.
26 27
13/ 05
Pharmaceutical
Industry
Our contribution to a healthier world
Outlook
Fast pace market growth over the past five years with market
dynamics expected to remain positive;
The
a
slight increase of 1.1% CAGR during 20112013 (Roland
Berger);
20112013 Rx drugs are expected to increase by 13.9%
in value and 2.5% in volume (Roland Berger).
Major players
Romanian producers: Antibiotice Iai one of the world's
biggest nystatin producers, Biofarm, LaborMed Pharma,
Hofigal, Fares, Bio Vital;
Foreign producers: Sankyo (through its subsidiary Terapia
Ranbaxy), Sanofi-Aventis (through Zentiva), GlaxoSmithKline
(through Europharm), Actavis, Gedeon Richter (owner of
Armedica), Sandoz;
Representatives: Roche, Pfizer, Servier Pharma;
Distributors: Mediplus, Relad Group, Fildas.
Investment support
State aid for SMEs and large investments;
Fiscal incentives;
Employment and training;
Internationalization and standardization;
R&D: additional deduction of 20% from the eligible expenses
from research and development activities.
13/ 06
Telecom Sector
Romanian Telecom Market at a Glance
Grossing 3,6 billion Euros in total revenues in 2010, Romania
is a mobile centric communications market that provides steady
and healthy returns to investors;
The major European telecom groups Deutsche Telekom,
France Telecom and Vodafone are already present in the
Romanian mobile market;
Romania is also home to innovative business solutions
successfully exported by RCS & RDS throughout Central and
Eastern Europe;
With penetration rates below the EU averages, the Romanian
market has significant opportunity to gen
erate highways for
growth in all the major service areas, especially for mobile
broadband where a 90% growth is expected across Europe over
the next 5 years;
Regulated according to the EU framework, the Romanian
electronic communication market values competition and
technological neutrality.
The
13/ 07
Creative
Industries
Opportunities
Bringing growth to the less developed regions for a well-balanced
spread of FDI;
Government support in developing and maintaining an increasingly
dynamic enterprising & innovationbased economy;
Development & integration of the "incubators" into innovative
national policies;
High profit margins for high addedvalue business;
Continuously growing sector, reshaping the country, generating
new types of markets and practices, new attitudes and new
approaches within the economic agenda;
Strong potential to become an international fashion reference,
with its own creativity, brands and retail chains;
Attractive location for international films, videos and advertising
productions.
Investment support
Crafts production, promotion of manually manufactured products;
Establishment and development of business and technological
incubators;
International
acknowledgement
In 2009, Herta Mller won the Nobel Prize for Literature;
Radu Mihileanu won two awards at the 2010 Cesar awards ceremony
for "The Concert";
13/ 08
Food &
Beverages
Excellence in quality
Marian Crian's creation, entitled "Megatron", won the Palme d'Or award
for short film at the Cannes Film Festival 2008 edition;
Corneliu Porumboiu won the Camera d'Or Best First Feature Award for
his movie entitled "12:08 East of Bucharest" at the Cannes Film Festival
2006 edition;
Saatchi & Saatchi Romania won the Silver for Outdoor Advertising
Campaigns at the London International Advertising Festival in 2008.
Ranking
Beverages
Romania is one of the world's largest wine producers;
The 6th wine producer in Europe and the 15th in the world;
The 5th in winegrowing standings in Europe;
One of the oldest wine making traditions in the world (6,000 y);
International acknowledgement in major wine competitions;
183,400 ha in fruityielding vine area;
Food
Exports of farm and food products recorded a 40% growth rate,
up to 3 billion Euro;
5.07% compound annual growth rate of per capita food
consumption by 2016;
The 2nd EU corn producer;
The 4th Europes honey producer and top 20 in the world;
The 6th in EU by horticultural cultivated surface and one of the
EU top producers;
Amongst EU's top 10 milk producers;
Historical tradition in food products manufacturing;
Wide range of traditional products (1,500 nationally registered);
Food distribution channels continuously expanding;
Major players: ALDIS, Cristim, Caroli, Angst, Scandia, Danone,
Albalact, FrieslandCampina, Hochland & Covalact Nestl, Kraft,
Supreme Chocolat, Cadbury, Mars, Ferrero.
Investment support
State aid for SMEs' and big investments;
Availability of EU funds;
Fiscal incentives;
Employment and training;
Internationalization and standardization.
32 33
13/ 09
Tourism
In
Ecotourism
3 Biosphere Reservation: the Danube Delta, the Retezat mountain
area and the Rodna mountain area;
Danube Delta
Biosphere Reservation designated by UNESCO;
The 3rd largest Delta in Europe;
98% of the European aquatic fauna.
34 35
Investment support
State aid for SMEs and large investments;
Major projects for PPP;
Fiscal incentives;
Internationalization and standardization;
Developing touristic activities in rural areas;
Employment and training;
IT and related activities: equipment, applications,
consultancy,
systems;
Entrepreneurial skills improvement;
Credits and guarantees;
Acquisition of: vehicles, equipment, installations, furnishings,
patents & licenses, quality certification.
Major players
Already present in Romania or intending to develop projects in this field: Crowne
Plaza, Golden Tulip, Hilton, Howard Johnson, Ibis, Inter-Continental, Marriott,
Novotel, Ramada, Sofitel;
World Tourism and Traveling Council (WTTC) Romania ranks 7th of 176 countries
in terms of its perspectives of growth in the tourism industry.
Credits Bucovina Mountains
36 37
13/ 10
Aeronautics
Tradition in empowering innovation
Henri
Coand (first jet airplane), Grigore Bricu, George Arion, Tache
Pillars of strength:
Research, design and development;
Manufacturing structural aircraft items;
General assembling;
Integration of modern avionics and systems;
Maintenance, repair and overhaul works;
Upgrade programs;
Flight test and certification;
Customer support.
Important R&D outcomes
IAR111 supersonic aircraft carrier, demonstrator for future space
tourism technology development;
Executor Rocket Engine liquid fuel rocket engine for the
IAR111 & Haas II rocket;
Automated spacecraft built for the Google Lunar X Prize
Competition;
STABILO Manned suborbital space vehicle;
Haas Rocket launcher able to place 400 kg of payload in Low
Earth Orbit;
Demonstrator 2 & 2B equipped with the first reusable
composite materials worldwide.
By 2020
Participation in major EU activities (EU FP6/7 & JTI-Clean Sky);
Pilot project for new regional transportation system (CNTAR);
Higher international visibility for existing capabilities (EREA,
ACARE, ASD,IMG4).
Investment support
State aid for SME's & big investments;
Fiscal incentives;
Employment and training;
R&D: additional deduction of 20% from
the eligible expenses from research and
development activities.
38 39
13/ 11
Shipyards
A safe navigation
Major players
Leading shipyards: Damen Shipyards Galai, Constana Shipyard, DMHI Mangalia,
STX OSV Tulcea, STX OSV Brila, Severnav Drobeta Turnu Severin, Orova
Shipyard, Shipyard ATG Giurgiu;
Significant support companies: Germanischer Lloyd, Ship Design Group, Bureau
Veritas, Retec, Dutch Marine Trading Design, Ductil, ICEPRONAV, Eekels, Helmers,
Metchim, Menarom Pec, Det Norske Veritas, Avemar, Liebherr, Marine Engineering,
Van der Velden, CAD, Edilbalk, En Vogue Industries, Green Yard Brila, Heinen &
Hopman, Industrial Cruman, Ronomar, Sanco, Turom Steel, Vacon;
A wide range of products: merchant vessels (tankers, bulk carriers, anchor handling
vessels, tugs, container feeders, dredgers, LPG, offshore supply vessels, yachts,
13/ 12
R&D
Host
Nanoelectronics,
Investment support
State aid for SMEs and large investments;
Fiscal incentives;
Employment and training;
20% additional deduction from the eligible expenses for R&D
activities;
EU funds for
hightech startups and spinoffs;
R&D infrastructure development and creation of new R&D jobs;
promoting innovation.
Major players
Renault, Continental, Ina Schaeffer, Oracle, HP Software Competence Center,
WIPRO, Intel, Honeywell, Infineon Technologies, GlaxoSmithKline, Siemens,
Elerom, Movidius, Monoelect, Azoth Tehnologies, Laromet, Helco, Electromedical
Industries, Medtex Design & Production, Ecofix, Imatech Trade & Imaging.
40 41
14
Romania in a
nutshell
Official name: Romania
Form of Government: Republic
The Parliament: a two-chamber Parliament (the Chamber of Deputies
and the Senate)
National Flag: next to the staff, three equal vertical stripes blue,
yellow and red
Geographical Location: South Eastern Europe
Neighbours: Bulgaria, Serbia, Hungary, Republic of Moldova and
Ukraine
Area: 238,391 sq. km (ranking 12th in Europe & 81st in the world)
Official language: Romanian
Standard time: GMT +2 hours
Currency: Romanian leu (RON), fractional coin ban
Capital city: Bucharest (1.9 million inhabitants)
Administrative organisation: 42 counties (including Bucharest), 319
towns, 2,851 communes
Main cities: Iai, Constana, Cluj-Napoca, Braov, Arad, Ploieti,
Timioara, Oradea
Airports: BucharestOtopeni (currently "Henri Coand" International
Airport), BucharestBneasa (currently "Aurel Vlaicu" International
Airport), Constana, Timioara, Bacu, Baia Mare, Cluj-Napoca,
Craiova, Iai, Oradea, Satu Mare, Trgu Mure, Suceava, Arad, Sibiu
Population: 19.6 million inhabitants
Density: 91 inh./sq. km.
Ethnic structure: Romanians 89.5%, Hungarians 6.6%, other 3.9%
Romania Your Business Partner for 2012
Sources
European Commission
Business Monitor International
Economist Intelligence Unit
Ernst & Young
Serban & Musneci Associates
European Automobile Manufactures' Association
United Nations Conference on Trade and Development (UNCTAD)
The Romanian Association for Aeronautics and Astronautics
Ministry of Transportation and Infrastructure
Ministry of Regional Development and Tourism
Ministry of Education, Research, Youth and Sports
Ministry of Economy, Trade and Business Environment
Romanian Center for Trade and Investment Promotion
design
Romanian Creative Industries Business Federation (FEPIC)
Graphic & Design Department
Phone +40 722 690 504
Coordinator
Andreea Paul
The Economic Adviser of the Prime Minister Mihai-Rzvan Ungureanu
Romanian Government
42 43
Andreea Paul
The Economic Adviser of the Prime
Minister Mihai-Rzvan Ungureanu
Lecturer, PhD, Faculty of International
Business and Economics, Academy of
Economic Studies
andreea.paul@gov.ro
Romanian Center for Trade and
Investment Promotion
Phone +40 21 318 50 50
office@romtradeinvest.ro
www.romtradeinvest.ro