Romania: Investing

FDI in Figures

The government launched a privatization program to attract foreign investors. The net FDI flow reached more than EUR 9 billion in 2007, and close to EUR 14 billion in 2008.  The distribution of foreign direct investment  by sectors is led by the industrial sector (33% of the total), in which the metallurgy industry stands out (7.5%). Other activity sectors have attracted investors such as banking and insurance (23% of the total foreign owned stock), wholesale and retail (14%), construction (8%) and telecommunications (6.5%). The regions which attract the most capital, in order of importance, are:  Bucharest (64% of the total), the country's center (8%) and the south (7%). The main foreign investors in Romania are Austria, the Netherlands, Germany and France.

However, the financial crisis had a negative effect in FDI inflows, with a decline of almost 50% in 2009 in relation to 2008.  In order to compensate the effects of the international financial crisis, the country received a financial aid of EUR 13 billion from the IMF in 2009, and more aid is expected in 2011 in order to face the challenges that the country has to overcome.

Why You Should Choose to Invest in Romania

Strong Points

The main strong points of Romania are:
- A relatively large domestic market;
- A skilled and inexpensive workforce;
- Its membership of the European Union and its future adoption of the Euro as currency.

Weak Points

The country's weak points are:
- Its infrastructures (highways, railroads, air ) are of bad quality and in need of improvement;
- A significant corruption and the government is not capable of using the financial aid form the European Union wisely;
- A relatively poor population which has limited purchasing power.

Government Measures to Motivate or Restrict FDI

The Romanian government has reaffirmed its willingness to privatize the public sector, especially in the fields of energy, heavy industry and pharmaceutical industry. The Authority for State Assets Recovery (AVAS) is in charge of the formulation, adoption and implementation of privatization. The government has recently passed laws that include financial aid for investments of more than 30 million Euros (EUR) which can create at least 300 jobs and encourage investments in certain economy sectors, such as energy. Romania has one special industrial zone.

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 in 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.

Investment Opportunities

Investment Aid Agency

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

Tenders, Projects and Public Procurement

Tenders Info, Tenders in Romania
Ted - Tenders Electronic daily, Business opportunities in EU 27
Globaltenders, Tenders & Projects from Romania
DgMarket, Tenders Worldwide

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