The Department for Foreign Investment and Public-Private Partnership (DISPPP) plays an essential role in Romania’s economy by serving as a one-stop shop for foreign investors. Alexandru Nastase, Secretary of State and Head of the department, discusses its services.
European Times: What is your mandate at the Department for Investments and Public-Private Partnerships?
Alexandru Nastase: The Department for Foreign Investment and Public-Private Partnership, which is under the direct supervision of the Prime Minister, is the leading government institution serving foreign investors in Romania. We offer investor-focused, results-oriented services in order to make sure all investments in Romania are a success and to help position Romania as a top FDI destination.
European Times: Why should international investors target Romania?
Alexandru Nastase: One big attraction is that Romania has highly skilled, educated, innovative, multilingual human resources at competitive prices. Romania’s location is another plus. Along with streamlined access to the EU, Romania is the second-largest domestic market in South-eastern Europe and it is strategically located at the crossroads of key commercial routes connecting Europe, Asia and the Balkans. Romania also has a very competitive Black Sea port at Constanta as well as the Danube inland-waterway route. The Romanian government has enhanced these advantages by implementing one of the lowest flat-tax rates in Europe, along with reduced VAT of 9% for food and agricultural products and other investment incentives. Furthermore, it issued generous state aid schemes amounting €1.2 billion for supporting investment and job creation, introduced the tax exemption on reinvested profit and reduced by 5% the employers’ social security contributions. Romania will continue to adopt new measures to make the business environment even more investor-friendly. Therefore, it has on public debate a visionary Fiscal Code that will reshape our domestic business climate through significant fiscal relaxation as a new powerful tool in enhancing our competitive advantages.
European Times: Which sectors offer particularly strong investment potential?
Alexandru Nastase: Manufacturing is a top sector, particularly in the automotive industry. Romania has already established itself as a regional hub for automotive companies and has attracted significant investment from leading global auto enterprises. Other growing sectors include ICT, business-process outsourcing and service centres, tourism, energy, oil and gas, and research activities. Most FDI in Romania today is from the EU. Romania welcomes investors who will add value to the Romanian economy and be committed to corporate social responsibility. We are an attractive destination for investment and business expansion, a status confirmed by the amounts of FDI that keep pouring since the beginning of the year. On the first four4 months of 2015 we had €1,164 billion in foreign investment as 48% higher against last and in terms of economic growth we are EU best performing country with 4,3% in Q1 of 2015 together with Czech Republic.
European Times: What is your personal message to potential investors?
Alexandru Nastase: Romania is a very reliable investment choice where investors can count on high returns on their investments. The Department for Foreign Investment and Public-Private Partnership is ready to give investors all the information and services they need, both before they invest and after they have established business activities in Romania. We are currently providing assistance to around 200 companies. We welcome global entrepreneurs to investigate all the opportunities Romania offers and put to good use our competitive advantages.
