Romania is positioning itself as a top choice for foreign investors, according to Alexandru Nastase, Secretary of State and head of Romania’s Department for Infrastructure Projects, Foreign Investment, PPP and Export Promotion. He says, “I believe in a proactive approach. We must show foreign investors that Romania has a healthy and growing economy, skilled labour, a business-friendly government, steadily improving infrastructure, and in general better conditions than investors would find in other in the region competing with Romania in attracting FDI. The Department of Foreign Investments is committed to providing the best possible assistance to investors. We want Romania to be investors’ destination of choice in the EU.”
The message is getting across. FDI flows in Romania have been increasing starting with 2012, after a decline following the global financial crisis. Romania’s recent economic performance is definitely a draw. Romania achieved 3.5% GDP growth in 2013, the highest in the EU, along with 7% industrial growth (the second-highest in the EU) and 26.8% FDI growth as in EUR 2.7 BN, which made Romania the number one FDI recipient in South-eastern Europe. Furthermore, Romania achieved an additional 10% growth in industrial output in the first quarter of 2014. Romania also offers a 16% flat tax, one of the lowest in EU, as well as a new tax exemption on reinvested profit and reduced financing and operational costs.
Seeking investors who will add value
Romania welcomes long-term investors who will bring added value to the Romanian economy. Alexandru Nastase notes, “Romania wants foreign investors who will support the communities where they operate, help protect the environment, and promote Romania as an investment destination. Examples of the kind of investors we are seeking include Renault, Daimler and Ford. All of them have achieved high profits from their investments in Romania. Bottom line is that we want investors who not only bring their know-how, technology and business to Romania but who will also love the country and be willing to support its economic development.”
High-potential opportunities for investors in Romania include public-private partnerships for major infrastructure projects, manufacturing (particularly of auto parts, aerospace and wood products), renewable energies, ICT services, agro-industry and food processing, pharmaceuticals and chemicals, consumer goods, and tourism. Alexandru Nastase concludes, “The Department of Foreign Investments is Romania’s one-stop-shop for foreign investors and the main interface with foreign companies for project implementation in Romania. Our mission is to put Romania back on the global investment map. I invite entrepreneurs and multinational companies to benefit from our core expertise and proficiency.”
