MINISTRY OF ECONOMY AND COMMERCE

1
MINISTRY OF ECONOMY
AND COMMERCE

• ROMANIA
• Member of the European Union
• ECONOMIC DEVELOPMENTS AND OPPORTUNITIES IN
  ROMANIA
• by
• Varujan VOSGANIAN , Minister

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Benefits of EU Accession

• Removal of any obstacles in the trade with EU
  Member States
• Common trade policy with third countries
• Harmonization of entire legislation, capital
  market regulations, taxation, accounting rules gt
  higher transparency and simplification
• Structural funds (31 billion euro for 2007-2013)
• Open gate for EU towards CIS, Asia, Middle East,
  Northern Africa
• Participation in major projects in the Black Sea
  Extended Area and in the Central Eastern
  European Region
• Romania-important role in assuring the energy
  security for Europe (major transit pipelines,
  energy production supply)

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Competitive Taxation
4
Macroeconomic Performance GDP real growth
5
Macroeconomic Performance Inflation rate
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Macroeconomic Performance Unemployment rate
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COUNTRY RATINGS ROMANIA

• Fitch - A- (August
  2006)
• Coface - A4 (January 2006)
• JCR - BBB (November 2006)
• Moody s - Baa3 (September
  2006)
• Standard Poors - BBB- (September 2006)
• World Bank Report 2006 Romania the most
  reforming country in the business field

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Foreign direct investments - million Euro -
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FOREIGN DIRECT INVESTMENT

• Total FDIs until 31.12.2006 31 billion euro
• 1. The Netherlands - 21,06
• 2. Austria - 12,94
• 3. France - 10,27
• 4. Germany - 10,24
• 5 . Italy - 5,56
• 6. U.S.A. - 4,72
• 7. United Kingdom - 4,43
• 8. Netherlands Antilles 3,65
• 9. Greece 3,61

• Source National Trade Register Office

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DIRECT INVESTMENT WITH SIGNIFICANT IMPACT ON
ROMANIAN ECONOMY, BY MAIN FIELDS, IN 2006

• Source Romanian Agency for Foreign Investment

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Foreign Investor Advantages

• 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
• national treatment for foreign investors

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New Investment LawDraft under public debate

• Objectives
• Determines the principles, terms and modalities
  of stimulating investments in Romania, aiming
  at contributing to the sustainable country
  development
• Full compliance with the EU legislation
• The Government will issue also legal/administrativ
  e acts in order to regulate the state aids
  schemes for each objective
• The goals, objectives, timing, budgets,
  beneficiaries, eligibility and selection
  criteria, competent authorities responsible to
  grant incentives will be established
• A responsible authority for implementing and
  monitoring the legal provisions will be set up

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FOREIGN TRADE, IN THE PERIOD 2001 2006
Source National Institute of Statistics
(www.insse.ro)
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GEOGRAPHICAL ORIENTATION OF THE ROMANIAN EXPORTS,
IN 2006
Source National Institute of Statistics
(www.insse.ro)
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GEOGRAPHICAL ORIENTATION OF THE ROMANIAN
IMPORTS, IN 2006
Source National Institute of Statistics
(www.insse.ro)
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TRADE BETWEEN ROMANIA AND AUSTRIA, IN THE PERIOD
1999 2006
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STRUCTURE OF THE BILATERAL COMMERCE, BY MAIN
GROUPS OF PRODUCTS, IN 2006

• Romanian Exports
• Machinery and electrical equipment 42,5
• Furniture, toys and other 10,8
• Textile and garments - 8,9
• Metals and articles thereof 7,9
• Transport equipment - 7,6

• Romanian Imports
• Machinery and electrical equipment 35,1
• Plastics and rubber 14,9
• Metals and articles thereof 9,5
• Transport equipment - 7,3
• Chemical products 5,3

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Austrian FDIs in Romania

• Austria ranking 2nd among the foreign investors
  in Romania 2 billion euro share-capital in
  Romanian companies / 7 billion euro effective
  investments, according to Austrian sources
• 4192 companies with Austrian capital registered
  in Romania
• Main sectors for Austrian investments banking,
  petrochemical industry, wood procesing, food
  industry

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TOP REASONS TO INVEST IN ROMANIA (1)

• Market Location Advantage
• Second largest market in Central and Eastern
  Europe (over 21 million inhabitants)              
        
• Easy access to the countries of the former CIS
  countries, Balkans, the Middle East and Northern
  Africa
• Junction of three prospective European
  transportation corridors nos. 4, 7 9

• Resource Advantage
• Skilled labor force, with solid knowledge in
  technology, IT and engineering
• Rich natural resources, including fertile
  agricultural land, oil and gas
• Important potential for tourism

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TOP REASONS TO INVEST IN ROMANIA (2)

• Economic Advantage
• Sustainable economic growth
• Functional Market Economy status
• Competitive tax policy
• Decreasing inflation
• Permanent financial assistance for SME's
  Development
• Structural funds

• Improving Infrastructure Advantage
• Well-developed networks of mobile
  telecommunications in GSM systems
• Highly developed industrial infrastructure,
  including oil and petrochemicals
• Branch offices and representatives of various
  well-known international banks
• Newly developed highway infrastructure
• Commitment to improve the highway infrastructure
  to EU standards
• Extensive maritime and river navigation
  facilities

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Potential Sectors for Investment

• Manufacturing
• Automotive parts
• IT Communication
• Electric Electronics
• Wood processing

• Construction materials
• Textile
• Food processing
• Infrastructure
• Outsourcing and logistics

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THANK YOU !
MINISTER OF ECONOMY AND COMMERCE ROMANIA Phone
40 21 202 51 40 Fax [phone]
E-mail varujan_vosganian_at_minind.ro Website
www.minind.ro