Romania Economic Overview December 2009 by we9mj6AB

VIEWS: 1 PAGES: 26

									    ROMANIA
Economic overview
Romania the largest market in South
          Eastern Europe
                                             238,391 km2
                             Area:
                                             (9th largest in EU)
1000 km radius                               21.6 million
1500 km radius               Population:
                                             (7th largest in EU)
                                             Bucharest
                             Capital city:
                                             2.1 million
                             European        Member since
                             Union status    January1st,2007
                             Affiliation:    NATO, WTO,WB, IMF.
                                             LEU (RON)
                             Domestic        1EUR=4.2897 RON
                             currency:       1GBP=4.7316 RON
                                             (As November 2nd, 2009)
                 Bucharest
                             Official
                                             Romanian
                             language:

                             Admin.          41 counties and
                             division:       Bucharest


                                                                   2
Pan European Corridors crossing Romania
 PAN EUROPEAN CORRIDORS CROSSING ROMANIA




                                               Helsinki – Kiev -
                                               Bucharest –
                                               Odessa/Alexandropoulos




        IV   Dresden / Nurnberg – Bucharest Constanta / Thessaloniki / Istanbul
       VII   The Danube river - 2,300km
        IX   Helsinki – Kiev - Bucharest –Odessa / Alexandropoulos            3
    Significant Potential for Growth

              2008                                  GDP Growth Rate

Romania                  7.1%                                8,4%
                                                                             7,7%
Slovakia                 7.0%                                                              7,1%
                                                                                    6,1%
Bulgaria                 6.5%         5.7%
                                              5,1% 5,2%
                                                                    4,1%
Poland                   5.4%
Czech Republic           4.4%
Slovenia                 4.4%
Hungary                  1.7%   2000 2001 2002 2003 2004 2005                2006 2007     2008
Source: EUROSTAT; *NIS           Source: National Institute of Statistics;    GDP EU 27


  Rapid and sustainable GDP growth, highest in EU27
  EU27 GDP growth rate of 1.4% in 2008


                                                                                                  4
                      Inflation Rate

   Annual Average                                         Inflation Rate
 Inflation Rate 2008       40,7%

Bulgaria           12.0%
                                   30.3%
Romania            7.9%
Czech Rep          6.3%                    17,8%
Hungary            6.0%                            14,1%
                                                           9,3%   8,6%                  7,9%
Slovenia           5.5%                                                   4.86% 4,9%           5,0%

Poland             4.2%
Slovakia           3.9%    2000    2001    2002    2003    2004   2005    2006   2007   2008 2009f
                                                            Source: NIS
Source: Eurostat


EU annual inflation was 3.7% in 2008
Disinflation policy to join Euro zone in 2014
Target 3% inflation rate in 2011 and 2.3% in 2013
                                                                                                  5
                              Human Capital

                                                   Demographics

                                            Young population (more than 50%
                                            under 40 years old)
                                            Almost 21.6 million people


                                                     Talent pool


                                            106 universities, 631 faculties
                                            125,000 university graduates/yr
Cities with more than 100,000 inhabitants   Availability of technical engineers
      more than 1,000,000 inhabitants
                                            High industrial experience
      300,000 – 400,000 inhabitants
      200,000 – 300,000 inhabitants
                                            Flexibility
      100,000 – 200,000 inhabitants         Foreign language skills
Source: National Institute of Statistics                                          6
           10 Major University Centers
                           TARGU - MURES
       CLUJ-NAPOCA                                               IASI
                              14 thou
          70 thou          S: 79% P: 21%                         67 thou
       S: 93% P: 7%                                           S: 90% P: 10%

   SIBIU
                                                                        BRASOV
   24 thou
                                                                      46 thou
S: 92% P: 8%
                                                                   S: 69% P: 31%

                                                                          GALATI
                                                                           21 thou
                                                                        S: 87% P: 13%


TIMISOARA
   51 thou
S: 89% P: 11%
                                                                              PITESTI
                                             BUCURESTI
               CRAIOVA                        BUCURESTI                      20 thou
                                                                          S: 86% P: 14%
              34 thou                       376 thou
           S: 89% P: 11%            State: 67% Private: 33%
                                                                                        8
                  MAIN TRADING PARTNERS
                            January - August 2009

                     EUR million   Share %                           EUR million   Share %
                                             TOP
Total exports           18,591.7     100.0         Total imports        24,469.1     100.0
Germany                  3,509.3      18.9   1.    Germany               4,144.8      16.9
Italy                    2,890.7      15.6   2.    Italy                 2,913.4      11.9
France                   1,461.2       7.9   3.    Hungary               2,018.7       8.3
Turkey                     950.2       5.1   4.    France                1,555.0       6.4
Hungary                    797.8       4.3   5.    Austria               1,199.9       4.9
Bulgaria                   724.0       3.9   6.    China                 1,174.2       4.8
Great Britain              605.5       3.3   7.    Russian Fed.            946.7       3.9
The Netherlands            603.9       3.3   8.    The Netherlands         942.2       3.9
Spain                      508.4       2.7   9.    Turkey                  917.5       3.8
Austria                    460.5       2.5   10.   Kazakhstan              894.3       3.7




                                                                                         9
IMPORTS BY MAIN GROUPS OF PRODUCTS
                           January - August 2009


                                                                      Stones, cement,
                                                Wood and paper           glass and
                             Metals and                                  ceramics
                                               products, furniture
                           articles thereof                                1.7%         Others
                                                     5.4%
                                 9.5%                                                    0.3%
      Agricultural and
       food products
           10.1%




                                                                                                 Machinery and
           Chemicals and                                                                           industrial
              plastics                                                                            equipment
               18.1%                    Mineral products              Textiles and                   34.9%
                                             9.9%                    leather goods
                                                                         10.1%




                                                                                                                 10
EXPORTS BY MAIN GROUPS OF PRODUCTS
                            January - August 2009

                                                                             Stones, cement,
                                                        Wood and paper          glass and
                               Metals and                                       ceramics
                                                       products, furniture
                             articles thereof                                     0.6%
                                                             8.0%                         Others
         Agricultural and         10.3%
          food products                                                                    0.3%
              7.8%



      Chemicals and
         plastics
          8.0%
                                                                                             Machinery and
         Mineral products                                                                      industrial
              6.6%                      Textiles and                                          equipment
                                       leather goods                                             43.2%
                                           15.2%




                                                                                                             11
            Romania - The Netherlands
                                        Bilateral trade flows


                                                - EUR million -

                                                                                      2,134.2

                                                             1,843.2                                                    Exports (FOB)

                                                                                                                        Imports (CIF)

                                                                                                                        Balance (FOB-CIF)

                                                                              979.9                         942.2

                                              739.6
603.4              598.0             637.4               606.1
                           575.6                                                                    603.9
        488.0

           115.4
                              22.4

    2004               2005                  2006                2007                  2008                 2009*
                                                    -102.2

                                                                                                               -338.3




                                                                                         -1,154.3
                                                                   -1,237.1

                                                                                                    *January-August 2009

                                                                                                                                            12
 Romania - The Netherlands
              Exports by main groups of products


                       January - August 2008/2009

 Stones, cement, glass          0.5%                                                2009
     and ceramics               0.5%
                                                                                    2008
       Wood and paper                     7.9%
      products, furniture                 8.3%

     Metals and articles                  8.3%
           thereof                           10.4%

    Agriculture and food                           14.4%
         products                                  14.6%

                                        6.0%
 Chemicals and plastics
                                       5.1%

                                   3.9%
       Mineral products
                                  2.9%

    Textiles and leather                        11.1%
           goods                               10.2%

Machinery and industrial                                               47.9%
      equipment                                                        48.0%

                            0             10            20   30   40   50      60



                                                                                           13
    Romania - The Netherlands
                 Imports by main groups of products


                            January - August 2008/2009

 Stones, cement, glass          0.4%                                                        2009
     and ceramics               0.3%
                                                                                            2008
       Wood and paper             2.6%
      products, furniture         2.8%

     Metals and articles               4.6%
           thereof                      5.1%

    Agriculture and food                                23.7%
         products                               17.1%

                                                              26.3%
 Chemicals and plastics
                                                      20.9%

                             0.5%
       Mineral products
                            0.1%

    Textiles and leather             5.0%
           goods                   3.5%

Machinery and industrial                                              36.9%
      equipment                                                                50.2%

                            0              10    20             30     40     50       60


                                                                                                   14
                             Inward FDI Flows
                     2008                                            Annual Inward FDI                                  9496
                                                                                                          9060
  Poland                               11391




                                                       EUR million
                                                                                                                 7250
  Romania                               9496
  Czech Republic                        7356                                                  5183 5213

  Bulgaria                              6163
  Slovakia                              2395                                           1946

  Slovenia                              1238                          1147 1294 1212

  Hungary                               1163
                                                                     2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Vienna Institute for International Economic Studies                     Source: National Bank of Romania



 SEE best performer in inward FDI
 Second best within the new EU 12 member states
 Stock over EUR 48 bill (1990–2008)
 2008 vs. 2007 FDI increased by 30%                                                                                            15
   Top 10 Investing Countries
                        (1990-2008)




Austria   1   Netherlands   2     Germany       3         France   4   Italy   5
18.8%          17.2%              15.4%                   8.8%         7.3%




Greece        Switzerland          Cyprus           Luxembourg         USA
          6                 7                  8                   9           10
6.5%            4.7%               3.9%                   2.3%         1.8%

                       Source: National bank of Romania




                                                                                    16
            Dutch Investment in Romania

No. of companies:                                                                              3543

% of the total no. of companies:                                                              2.15%

Social capital subscribed in companies:                                          4069 mill. Euro

% of the total value of capital:                                                             16.76 %

Ranking:                                                                                          1




Source: National Trade Register Office (NTRO); 1990 – September 2009
* The subscribed social capital represents only a part of total FDI
** According to NTRO the investment country of origin is considered the country from which
the capital is coming and not the company country of origin
                                                                                                       17
               FDI by Field of Activity
                                   (1990- 2008)

                Total Economy

           12.6%          5.6% 1.4% 4.4%
                                               5.1%                   Manufacturing
6.7%


  20.5%                                   31.3%
                                                                        12.7%                13.9%
                                                            14.5%

                                                                                                     11.6%

              12.4%

                                                            22.3%                                  5.8%
                                                                       3.2%            4.5% 5.2%
                                                                                6.3%
          Manufacturing                                        Metallurgy
          Trade                                                Food, Beverages, Tobacco
          Financial services                                   Transport means
          IT&C                                                 Oil processing, chemicals, rubber & plastic
          Real Estate & Constructions                          Construction materials
          Energy&Utilities                                     Wood processing
          Agriculture,Forestry&Fishery                         Textile, wearing apparel & leather goods
          Mining                                               IT&C equipment
          Others                                               Machinery & equipment
                         Source: National Bank of Romania      Others                                18
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                           TIMISOARA                                   LUGOJ                                                                                                     T
                                                                                                                                                                                 almaciu                                                           73A                   B AS
                                                                                                                                                                                                                                                                           R OV                                                                                        25
                  59B           59                                                 LUGOJ                                  66
                                                                                                                                 E
                                                                                                                             HAT G                                                         E 81
                                                                                                                                                                                                  VE T M
                                                                                                                                                                                                     SE              Bilea L ac                                R NOV
                                                                                                                                                                                                                                                                IS
                                                                                                                                                                                                                                                                              SACE E  L                                                                                              Tulucesti
                                                                                     6




                                                                 58A                                                                                                                                                                                           73A                                     S iriu                                     2              Independenta T   GALA I        2B
                                                                                                                                                                                                                                                                        PREDEAL
                                                                                       E OS
                                                                                   OT LUR U               Cirnesti        E79 P
                            Voiteg
                                                                                                68                                ui                                                                                                                 73 B   ran        P E AL Cheia
                                                                                                                                                                                                                                                                         R DE
                              T
                            DE A                  Berzovia                                           Sarmisegetuza                                                                                                                                                                       1A                 Nehoiu                                                          Sendreni
                                          58B                                                                                        66                                                                                                                                                                                      R IMNICUS AT AR                                                      Garvan
                                                                         58        CAR E E
                                                                                         ANS B S                                                                                                                                           Rucar                   E60                                                                              22 B  alta Alba B AILA 2B S
                                                                                                                          P T OS
                                                                                                                            E R ANI                    7A                      V  oineasa                                                                                                   Maneciu-                                                                        R                 mirdan 22
                                                                     Saceni                                                                                     Obirsia Lotrului              7                                              E 574                    S INAIA                Ungureni
                                  E 70                B OCS  A                                                            R
                                                                                                                        U ICANI 66A                                                                       P oienari                                                                                                                                                    Movila L   acu              MACIN        ISACCE  A
                                                                                                                                                                                      7A                                           UU
                                                                                                                                                                                                                            CIMP L NG                           71
                                                                                                                                                                                                                                                                            COMARNIC                                Ciuta 10                                           Miresii S   arat
                                                                                               E0




                                           AV A
                                       MOR IT                        RSA
                                                                      E IT                                                                                                    Malaia
                                                                                               7




                                                                                                                      Cimpu                                                           B E OI
                                                                                                                                                                                        RZ                                                                                COMAR        NIC            Cislau                                                                 Traian                               E87
                                                                                                                      lui Neag             E  79                                                                   7C Domnesti                                 Moroeni                                                                                                                                                        U A
                                                                                                                                                                                                                                                                                                                                                                                                                             T LCE
                                                                                                                                                                67A                                                                73C
                                                                                                                                                                                                                                                                                                                                BUZAU
                                                         Carasova                                                                                                                                    R IMNICU                                                                                     ALE
                                                                                                                                                                                                                                                                                                V NII                     V ernesti B Z                         Ianca                                 22D
                                                                                                                                                                                                                                        S chitu                                                 DE MU E NT                                U AU                         2B                                 CernaNalbant Cataloi
                                                                                                                                                          NOV P ACI olovraci                          VILCE    A         CU T A
                                                                                                                                                                                                                             RE         Golesti       F NI
                                                                                                                                                                                                                                                       IE                                                                                              F RI
                                                                                                                                                                                                                                                                                                                                                        AU E                        21
                                                  57                                                                                          66                                                                                                                                CIMP    INA
                                 E70                Gradinari 58                                                                                 B umbesti-               HOR Z
                                                                                                                                                                              EU             64                  73C DE AR S    GE                72A                                                                                     2B Cilibia                                                         Horia

                                                          57B ANINA
                                                                                      6                                      Runcu               Jiu
                                                                                                                                                               BengestiMaldaresti B
                                                                                                                                                                                     67
                                                                                                                                                                                       AILE OCNE
                                                                                                                                                                                                          B udau
                                                                                                                                                                                                           LE                       E574                                               PLOIESTI                       1B Costesti
                                                                                                                                                                                                                                                                                                                                       2C                                  E 577
                                                                                                                                                                                                                                                                                                                                                                                                             22D 22A
                                                                                                                                                                                                                                                                                                                                                                                                                         22
                                                                                                                                                                                                                                                                                      1         L SI
                                                                                                                                                                                                                                                                                               P OIE T             MIZ IL                                                                                                E87
                                                                                                                                               67           Cimpu Mare              GOVOR MAR A          I                7C                                                                                                                                                                                Ciucurova
                                                           AVIT
                                                       OR A 57B                                                                                                                                                   E 81            73                             IR
                                                                                                                                                                                                                                                                T GOVIS E   T                            Albesti                                Pogoanele Insuratei
                                                                                             67D                    67D                        S coarta                                        Babeni                                                                                 72                                                                                                              Topolog        22D B ADAG
                                                                                                                                                                                                                                                                                                                                                                                                                            AB
                                                                               Iablanita              AIA
                                                                                                    B DE AR        AMA 67              T GUJIU
                                                                                                                                        IR                 T GUCAR U S I
                                                                                                                                                            IR         B NE T                                                                     Dragomiresti I.L        .Caragiale
                                                   Naidas B    ozovici                                              Pieptani
                                                                                                                                       R OVINAR     I                                                                                P ET
                                                                                                                                                                                                                                      IT S I                                                                                                                                                              Rohman
                                                                                                                                                                                                                                                                                                                                                                                                                  Caugagia
                                                                                                                                                                                                         PITESTI
                                           Socol 57                                         BAILE HE CU
                                                                                                      R LANE                                                 67B                 65C         64                                                                                                                  1D                                                      GIU GE
                                                                                                                                                                                                                                                                                                                                                                              R NI                    22A
                                                                                                                                          Pesteana-Jiu                   Gradistea                                                          7             72 71                        1A                                     E 85                                     21A                     S
                                                                                                                                                                                                                                                                                                                                                                                           HIR OVA
                                            57A P                                                                                                                                              Dobroteasa                                                                                                                                                 Grivita
                                                    ojejana                       Topleta                                                                                                                   67B V                                                                               E 60                                                                                              S craiu
                                                                                                                F loresti MOT U  R
                                                                                                                                          E79                 Hurezani67B                                            edea Cerbu
                                                                                                                                                                                                                                                                         Cringasi                                                U Z NI
                                                                                                                                                                                                                                                                                                                                   R ICE                                                                           Mihai
                                                                                                                                                                                                                                                                                                                                                                                                                   Viteazu
                                                        MOLDOV NOUA      A                                                 B rosteni                                            Giulesti                                         COS E T E
                                                                                                                                                                                                                                      T S I 70            GAE T SI                                                                                          2C      TANDAR I  E
                                                                                    S A
                                                                                OR OV                        67                                  6                                                                                                                                                                                 E60
                                                                                             E7                                                 6                                                                              65A                         TUIT                                                        E 60                          Amara                            3B         E 60
                                                                                               0          DR E A
                                                                                                               OB T          67A                                                                DR AGAS      ANI E                                                                                                                       Malu2A                                                                      E87
                                                                     B erzeasca                                                                                                                                       574          Redea                                                         1                  2                                                             F acaeni
                                                                                                                                                                                                                                                                                           UTA
                                                                                                                                                                                                                                                                                         B FE
                                                                                                                                                                                                                                                                                                                                       DRAJNA
                                                                                      E771                 U NU E R
                                                                                                          T R S VE IN                                                                                                                                                                                OP NI
                                                                                                                                                                                                                                                                                                   OT E                                                             L OZ
                                                                                                                                                                                                                                                                                                                                                                   S OB IA                             2A
                                                                                                                                                         Tintareni                                                                                                          Bildana7                           E 85
                                                                                                                                                                             B alcesti
                                                                                57                          S imian 6
                                                                                                                                   TE
                                                                                                                                  S R HAIA                                                                 65                U ngheni
                                                                                                                                                                                                                                                                             A1                             B
                                                                                                                                                                                                                                                                                                                 Pasarea
                                                                                                                                                                                                                                                                                                              ranesti F
                                                                                                                                                                                                                                                                                                                                 3
                                                                                                                                                                                                                                                                                                                            undulea
                                                                                                                                                                                                                                                                                                                                        Lehliu
                                                                                                                                                                                                                                                                                                                                                               21
                                                                                                                                                                                                                                                                                                                                                       Dragalina   FETESTI   EE T
                                                                                                                                                                                                                                                                                                                                                                            F T SI
                                                                                                                                                                                                                                                                                                                                                                                                                     22

                                                                                                                                                                                                                                                                                                                                            ehliu 3A                  3A                    A2           Mihail
       In use:                                                      1099 km                        56B
                                                                                                                    VINJUMAR      E
                                                                                                                                           F ILIAS  I
                                                                                                                                                            E 70
                                                                                                                                                                         65C           Ganeasa S INA      LAT
                                                                                                                                                                                                                                                        Crevedia Mare
                                                                                                                                                                                                                                                                                                            BUCUREST        I
                                                                                                                                                                                                                                                                                                                                           L
                                                                                                                                                                                                                                                                                                                                             Gara
                                                                                                                                                                                                                                                                                                                                                     Stefan V oda
                                                                                                                                                                                                                                                                                                                                                                  Drajna
                                                                                                                                                                                                                                                                                                                                                                                           CERNAVODA  Kogalniceanu
                                                                                                                                                                                                                                                                                                                                                                                                  CE NAV
                                                                                                                                                                                                                                                                                                                                                                                                     R ODA            22B Capul Midia
                                                                                                                                                                                                                                                                                                                                            Vlad Tepes        21                                     22C                   NAVODAR  I
                                                                                                                                                                E79               B ALS           Brincoveni                                                        Clejani                                                                            3 Cuza
                                                                                                                                                                                                                                                                                                    Adunatii-  4                                         V oda                                                   Ovidiu CONS ANT
                                                                                                                                                                                                                                                                                    BUCURESTI                                                                                                                         CONSTANTA
                                                                                                                                                                                                                                65A                                                     6          Copaceni            B udesti                                                                        Basarabi                   T A
                                                                                                                                                       CR  AIOV  A                                                                                                            61                                                                                     3B
Under                                                                                                                                                                                                                                                                                                                              Minastirea
                                                                                                                                                CRAIOVA                                                                                                                                                                                           31                                                             Agigea

construction
                                                                    1452 km                                        56A                                                                           64
                                                                                                                                                                                                              Daneasa
                                                                                                                                                                                                                                                                     Ghimpati                   Calugareni
                                                                                                                                                                                                                                                                                                           Greaca OL E A   T NIT
                                                                                                                                                                                                                                                                                                                                                              CALAR I  AS          Corvin
                                                                                                                                                                                                                                                                                                                                                                                            3
                                                                                                                                                                                                                                                                                                                                                                                                 Pietreni
                                                                                                                                                                                                                                                                                                                                                                                                                            E OR NOR
                                                                                                                                                                                                                                                                                                                                                                                                                             F IE     D
                                                                                                                                                                                   Leu CAR     ACAL
                                                                                                                                                                                                                    E 70
                                                                                                                                                                                                                                            OS II
                                                                                                                                                                                                                                          R IOR Draganesti Vlasca 5B E                        70                                                                     Ostrov B       aneasa                Cobadin       39
                                                                                                                                                                                                                                                                                                                                                                                                                              F IE U
                                                                                                                                                                                                                                                                                                                                                                                                                             E OR S D
                                                                                                                                                                                         6                                                 DE VE  DE                                                                                                                                                             E675
                                                                                                                                                       56 R     odovan                                S toenesti                                                                                    41                                                                                                                           T SI
                                                                                                                                                                                                                                                                                                                                                                                                                            COS INE T
                                                                                                                              Cetate E     79                                                                                                                    6                           5                                                                                                          Amzacea
                                                                                                                                                                                                                                                 6
Under design                                                                                                                                                                                                                                                                                    Daia                                                                                                        38        E87 JUP EN
                                                                                                                                                                                                                                                                                                                                                                                                                            NE T
                                                                                                                                                                                                                                                                                                                                                                                                                             P R
                                                                                                                                                                                                                                                                                                                                                                                                                               IT
                                                                                                                                                                                                                                                                                                                                                                                                                                 U
                                                                                                                                                                           55                                                                               ALE  XANDR     IA                 E85                                                                                                 Negru voda                 NU
                                                                                                                                                                                                                                                                                                                                                                                                                           VE S
                                                                                                                               Maglavit                                                               54
and                                                                                                  E79 CALAFAT
                                                                                                                                                                                                                                    65A
                                                                                                                                                                                                                                                           GIURGIU          GIU GIU
                                                                                                                                                                                                                                                                                R                                                                                                                                          S UN
                                                                                                                                                                                                                                                                                                                                                                                                                            AT R
                                                                                                                                                                                                                                                                                                                                                                                                                           MANGALIA
expropriation                                                        850 km                                                        CALAFAT
                                                                                                                                       Rast
                                                                                                                                                            55A                                               COR IA T R MAGU E E
                                                                                                                                                                                                                    AB U NU
                                                                                                                                                                                                                                             52                 S mirdioasa

                                                                                                                                                                                   Dabuleni                                                  RL              51                 5C                                                                                                                         Vama V   eche
                                                                                                                                                                              Bechet      54A                              54                         51A                                 E70                                                                                                                     E87
                                                                                                                                                                                                                                                              ZIMNICE    A
Source: CNADR                                                                                                                                                                                                                                                                     E85
                                                                                                                                                                                                                                                                                                                                                                                                                                          20
           Ports and Airports
                                                                                           International
                                                                                           flights
                SATU MARE       BAIA MARE
                                                    SUCEAVA
                                                                                           Domestic
                                                                              IASI         Flights
         ORADEA
                      CLUJ NAPOCA                                                          Under
                                      TARGU MURES                                          construction
                                                                    BACAU
        ARAD



    TIMISOARA                         SIBIU

                                                BRASOV                                      GALATI

                                                                              BRAILA
                                                                                                                  SULINA

                                                                                               TULCEA

                                                                   OTOPENI

DROBETA TR. SEVERIN                                                BANEASA
                                                                                       M. KOGALNICEANU
                            CRAIOVA                                                                   CONSTANTA
                                      CORABIA                      OLTENITA                          MANGALIA
                                                         GIURGIU                                                     21
Mobile Communication Infrastructure
                        – coverage area -




Consolidated market
Major international players
More than 90% network coverage
                                            22
Map of Industrial Parks



                          More than 40 Industrial
                          Parks
                          Both private & public
                          Greenfield & Brownfield
                          Access to utilities
                          Package of services
                          offered by the park
                          administration
                          Wide variety of activities
                          to be developed
                          Some created for high-
                          tech activities

                                                    23
      Foreign Investor Rights

National treatment for foreign investors

Foreign investment allowed in all sectors of 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 EU and Romanian legislation




                                                                         24
            Incentives and subsidies
Provided by Fiscal Code and other laws in force:

  Flat corporate tax of 16%

  Possibility of using the accelerate depreciation for the equipments   (50% in the first year)


  Carry forward the fiscal losses for a period of up to 7 years

  building tax and land tax exemption for a period of up to 5 years

  building tax and land tax exemptions within industrial parks;

  Subsidies for hiring and training fresh new school/high school/university graduates

  Financial support for large investments




                                                                                              25
                    Competitive Taxation

                                                    Social Contributions
                           Corporate Tax   VAT
                                                 Employee       Employer
  Bulgaria                     10%         20%     13%            20.5%
  Romania                      16%         19%    16.5%        26.75-36.75%
  Hungary                      16%         20%     17%             32%
  Poland                       19%         22%    18.71%        19.5-22.4%
  Slovakia                     19%         19%    13.4%           34.4%
  Czech Rep.                   20%         19%     11%             34%

  Slovenia                     21%         20%    22.1%           16.1%

   Source: National IPAs



  Many Central and Eastern European countries reduced considerably their
corporate tax in order to diminish the fiscal burden

                                                                              26
  EU financial assistance to Romania
             Allocation by operational programme

                 Environment
                                                                   Romania could receive up to
                    23.5%                                          EUR 33 billion during 2007 –
                                                       Regional    2013 through EU funding;
                                                     development
                                                        19.4%      Financial support provided by
                                                                   European Regional Economic
                                                                   and Social Cohesion Policy is
  Transport                                                        delivered through 3 main
infrastructure                                                     structural instruments and 2
    23.7%
                                                                   funds dedicated to agriculture
                                                                   and fisheries.


   Technical
   assistance
      0.9%
                                                     HR
            Administrative     Competitiveness   development
                                   13.3%            18.1%
              capacity
                1.1%

                                                                                                    27
          Thank you
     for your attention!

           EMBASSY of ROMANIA
        Economic & Commercial Section

                  Netherlands
               2517 KA The Hague
                 Catsheuvel 55

Tel. +31 (0)70 355 73 69 / Fax +31 (0)70 354 1587

               ecs.nl@dce.gov.ro

								
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