With highly skilled workforce, low wages, state aid, and free land for investors, Craiova has certainly grown as a business leader in the region and an attractive investment destination. Lia Olguta Vasilescu, former Mayor of Craiova and current Minister of Labour and Social Justice, discusses the city’s main advantages and investment potential.
European Times: What are the main advantages that make Craiova an attractive investment destination?
Lia Olguta Vasilescu: Craiova became an industrial centre after the communist period, and today is among the primary choices for investors due to the cheaper, but highly skilled workforce. In recent years, Craiova opened two industrial parks with close to a 100% occupancy rate, and plans are made for opening a third industrial park. Furthermore, foreign investors receive state aid, various facilities are at their disposal and free consultancy from the City Hall, and they do not pay local taxes and construction permits. Additionally, Craiova is the only city in Romania which opened a business centre in the UK and the city itself has an exhibition centre of 10.000 sq m, the second largest in the country after Romexpo. The regional Craiova Airport serves three countries (Serbia, Bulgaria and Romania) and the port of Calafat on Danube is only 70 km away.
European Times: What is Craiova’s strategy for attracting potential investors?
Lia Olguta Vasilescu: During my time as Mayor, we worked hard to build Craiova’s image as an excellent investment destination which truly offers superb advantages. With its three universities, the city’s workforce is highly qualified and the wages are up to 20% lower in comparison to other regions. Moreover, Craiova’s major competitive advantage is the fact that the price of land provided for investors is almost free.
Our efforts brought in numerous Canadian, US and UK companies, as well as investors from other countries. For example, we managed to attract the Turkish company ETI, which initially wanted to invest in northern Bulgaria, by offering them free counselling and by securing state aid for 50% of the value of the investment.
Nevertheless, there is significant room for improvement in terms of promotion of the city. During my mandate, we contacted representatives of almost all Romanian embassies and asked them to distribute promotional materials for Craiova’s investment advantages and potential.
European Times: What is your personal message to potential investors interested in Craiova?
Lia Olguta Vasilescu: Craiova is an appealing investment destination, and the €500 million invested in recent years serve as excellent evidence of the city’s potential. In general, I would advise potential investors to contact existing investors and discuss their cooperation with the local authorities, and to contact the Chamber of Commerce and Industry, which can advise them on handling bureaucratic issues. Furthermore, they should also address the City Hall to learn more about the available facilities.
I am absolutely convinced and I say this from experience, any investor who wanted to open a business in Romania and came to Craiova, did not leave Craiova.
