ministry for small and medium sized enterprises, commerce, tourism and liberal professions
DESCRIPTION
MINISTRY FOR SMALL AND MEDIUM SIZED ENTERPRISES, COMMERCE, TOURISM AND LIBERAL PROFESSIONS. ECONOMIC DEVELOPMENTS AND OPPORTUNITIES IN ROMANIA ROMANIA Luxembourg, 27 February 2008. Basic information. Romania - Area: 238.391 sq. km. - Population: 21,700,000 - PowerPoint PPT PresentationTRANSCRIPT
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MINISTRY FOR SMALL AND MEDIUM SIZED MINISTRY FOR SMALL AND MEDIUM SIZED
ENTERPRISES, COMMERCE, TOURISM ENTERPRISES, COMMERCE, TOURISM AND LIBERAL PROFESSIONSAND LIBERAL PROFESSIONS
ECONOMIC DEVELOPMENTS AND ECONOMIC DEVELOPMENTS AND OPPORTUNITIES IN ROMANIAOPPORTUNITIES IN ROMANIA
ROMANIAROMANIA
Luxembourg, 27 February 2008Luxembourg, 27 February 2008
22
RomaniaRomania
- Area: - Area: 238.391 sq. km.238.391 sq. km.
- Population: 21,700,000- Population: 21,700,000
- Counties: 41- Counties: 41
Capital: BucharestCapital: Bucharest
Basic informationBasic information
33
Benefits of EU AccessionBenefits of EU Accession
Removal of any obstacles in the trade with EU Removal of any obstacles in the trade with EU Member StatesMember States
Common trade policy with third countriesCommon trade policy with third countries Harmonization of entire legislation, capital Harmonization of entire legislation, capital
market regulations, taxation, accounting rules market regulations, taxation, accounting rules => higher transparency and simplification=> higher transparency and simplification
Structural funds (31 billion euro till 2013)Structural funds (31 billion euro till 2013) Open gate for EU towards CIS, Asia, Middle Open gate for EU towards CIS, Asia, Middle
East, Northern AfricaEast, Northern Africa Participation in major projects in the Black Participation in major projects in the Black
Sea Extended Area and in the Central & Sea Extended Area and in the Central & Eastern European RegionEastern European Region
Romania-important role in assuring the Romania-important role in assuring the energy security for Europe (major transit energy security for Europe (major transit pipelines, energy production & supply)pipelines, energy production & supply)
FLATFLAT TAX TAX 16%16%VATVAT 19%19%
SOCIAL SOCIAL SECURITYSECURITY
4433.5.5%%
39.5%39.5% by the by the end of 2008end of 2008
AVERAGE AVERAGE WAGE WAGE (2007)(2007)
380380 euroeuro
MINIMUM MINIMUM WAGE WAGE
115115 euroeuro
Competitive TaxationCompetitive TaxationCountrCountr
yyCorporatCorporat
e Taxe Tax
RomanRomaniaia
16%16%
HungaHungaryry
16%16%
SlovakiSlovakiaa
19%19%
PolandPoland 19%19%
EstoniEstoniaa
20 %20 %
CroatiaCroatia 20.32%20.32%
SloveniSloveniaa
25%25%
Czech Czech Rep.Rep.
28%28%
55
Macroeconomic Macroeconomic Performance Performance
GDP real growthGDP real growth
Source: National Institute of Statistics
4,1%
7,7%
6,1%
8,4%
5,2%5,1%5.7%
2,1%
2000 2001 2002 2003 2004 2005 2006 2007
66
Macroeconomic Macroeconomic Performance Performance Inflation rateInflation rate
5,7% 4,3%4.86%8,6%
40,7%
30.3%
17,8%14,1%
9,3%
2000 2001 2002 2003 2004 2005 2006 2007 2008 e
Source: National Bank of Romania
77
Macroeconomic Macroeconomic Performance Performance
Unemployment rateUnemployment rate
9,5
6,6
8,910,4
11,810,5
8,88,1
76,2
5,5 5,2 5
0
2
4
6
8
10
12
%
1995 1997 1999 2001 2003 2005 2007
88
COUNTRY COUNTRY RATINGSRATINGS ROMANIA ROMANIA
Fitch Fitch - A- - A- (August 2006)(August 2006) CofaceCoface - A4 - A4 (January 2006)(January 2006)
JCRJCR - BBB+ - BBB+ (November 2006)(November 2006) Moody’ s Moody’ s - Baa3 - Baa3 (September 2006)(September 2006) Standard & Poors Standard & Poors - BBB- - BBB- (September 2006)(September 2006)
World Bank Report 2006: Romania – the World Bank Report 2006: Romania – the most reforming country in the business fieldmost reforming country in the business field
99
Foreign direct investmentsForeign direct investments - million Euro -- million Euro -
1294 1212 1627
4098
5197
91008000
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
2001 2002 2003 2004 2005 2006 2007
Source: National Bank of Romania
FOREIGN DIRECT FOREIGN DIRECT INVESTMENTINVESTMENT
Share capital in Share capital in FDI’s FDI’s at at 330.11.2007: 0.11.2007:
17.417.4 bbillion euroillion euro
1. The Netherlands - 18,41%2. Austria - 12,60%3. Germany - 10,23%
4. France - 10,03%5. Cyprus – 4,99%6. Italy - 4,64%7. U.S.A. - 3,80%8. United Kingdom - 3,49%9. Greece – 3,28%
16. Luxembourg – 1,44% Source: National Trade Register Office
Country of Country of originorigin
Number of Number of companiescompanies
Share-Share-capital in capital in Romanian Romanian companiescompanies- - mil. EUROmil. EURO
--
11NetherlanNetherlandsds
30933093 3.2083.208
22 AuAustriastria 48474847 2.1942.194
33 GermanyGermany 1547215472 11.783.783
44 FranceFrance 53405340 11.747.747
55 CyprusCyprus 34943494 870870
66 ItalItalyy 2425924259 808808
77 USAUSA 53775377 666262
88 UK UK 34993499 660808
99 GrGreeeecece 40614061 5571 71
1616LuxemboLuxembourgurg
629629 251251
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Value of Subscribed Capital Value of Subscribed Capital
by Field of Activityby Field of Activity
Source: Romanian Agency for Foreign Investment
Industry50.7%
Retailing5.3%
Wholesale6.4%
Transport6.2%
Construction1.3%
Tourism 1.4%Agriculture
0.9%
Services27.8%
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Foreign Investors Foreign Investors AdvantagesAdvantages
foreign investments allowed in all sectors of foreign investments allowed in all sectors of economyeconomy
possibility to freely manage the company possibility to freely manage the company with full ownership rightswith full ownership rights
full repatriation of capital and profitsfull repatriation of capital and profits
protection against expropriation and protection against expropriation and nationalizationnationalization
national treatment for foreign investorsnational treatment for foreign investors
New Investment LawNew Investment Law- Draft under public debate- - Draft under public debate-
Objectives:Objectives: DDetermines the principles, terms and modalities of stimulating etermines the principles, terms and modalities of stimulating
investments in Romaniainvestments in Romania, , ai aiming atming at contribut contributing toing to the the sustainable country development sustainable country development
FFullull compliance compliance with the EU legislation with the EU legislation
Legal/administrative documents will be issued by the Government Legal/administrative documents will be issued by the Government in order to regulate the state aids schemes for each objectivein order to regulate the state aids schemes for each objective
TThe goalhe goalss, objective, objectivess, tim, timinging, budget, budgetss, beneficiaries, eligibility , beneficiaries, eligibility and selection criteriaand selection criteria, , competent authorities responsible to competent authorities responsible to grant incentives grant incentives will be establishedwill be established
A rA responsible esponsible aauthority for implementing and monitoring the uthority for implementing and monitoring the legal provisions legal provisions will be set upwill be set up
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FOREIGN TRADE OF ROMANIA 2001 – November 2007
-30.000
-20.000
-10.000
0
10.000
20.000
30.000
40.000
50.000
Exports 12.722 14.675 15.614 18.935 22.255 25.850 27.127
Imports 17.383 18.881 21.201 26.281 32.569 40.745 46.557
Balance -4.661 -4.206 -5.587 -7.346 -10.314 -14.895 -19.430
2001 2002 2003 2004 2005 2006 Nov.2007
EURO mill.
Source: National Institute of Statistics (www.insse.ro)
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MAIN TRADE PARTNERSMAIN TRADE PARTNERS- November 2007 -- November 2007 -
Top import partner Top import partner countriescountries
percentage percentage of total import of total import
GermanyGermany 17,217,2
ItalyItaly 12,812,8
HungaryHungary 7,07,0
FranceFrance 6.36.3
Russian FederationRussian Federation 6,36,3
TurkeyTurkey 5,55,5
AustriaAustria 4,84,8
HollandHolland 3.63.6
PolandPoland 3.43.4
ChinaChina 3,33,3
LuxembourgLuxembourg 0,140,14
Top export partner countriesTop export partner countriesppercentageercentage of total export of total export
ItalyItaly 17.217.2
GermanyGermany 17,117,1
FranceFrance 7,7,77
TurkeyTurkey 7,07,0
HungaryHungary 5,65,6
Great BritainGreat Britain 4.24.2
BulgariaBulgaria 33,,11
AustriaAustria 2,62,6
SpainSpain 2.32.3
PolandPoland 2.22.2
LuxembourgLuxembourg 0.100.10
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FOREIGN TRADE OF FOREIGN TRADE OF ROMANIAROMANIA
- 11 month 2007 -- 11 month 2007 -
Total volume: 73.687 million euro Total volume: 73.687 million euro (21,6% growth compared to 11 month 2006)(21,6% growth compared to 11 month 2006) Total volume intrastate: 52.764 million euroTotal volume intrastate: 52.764 million euro Total Export (FOB): 27.127 million euroTotal Export (FOB): 27.127 million euro Intrastate export (FOB): 19.571 million euro, Intrastate export (FOB): 19.571 million euro,
representing 72,1% in total export (+13,5% representing 72,1% in total export (+13,5% growth compared to 11 month 2006)growth compared to 11 month 2006)
Total Import (CIF): 46.557 million euroTotal Import (CIF): 46.557 million euro Intrastate import (CIF): 33.193 million euro, Intrastate import (CIF): 33.193 million euro,
representing 71,3% in total import (+31,5% representing 71,3% in total import (+31,5% growth compared to 11 month 2006) growth compared to 11 month 2006)
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TRADE BETWEEN ROMANIA AND TRADE BETWEEN ROMANIA AND LUXEMBOURG 2001 – November LUXEMBOURG 2001 – November
20072007
-60
-40
-20
0
20
40
60
80
100
TOTAL 8,63 13,95 16,34 19,25 27,11 35,25 91,7
EXPORT 1,38 7,29 5,39 3,5 7,95 5,4 26,46
IMPORT 7,25 6,66 10,95 15,75 19,16 29,84 65,24
SOLD -5,87 0,63 -5,56 -12,25 -11,21 -24,44 -38,78
2001 2002 2003 2004 2005 20062007-11
m
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STRUCTURE OF ROMANIA- STRUCTURE OF ROMANIA- LUXEMBOURG BILATERAL LUXEMBOURG BILATERAL TRADETRADE
Romanian ExportRomanian Exportss
vehicles, transport vehicles, transport equipment (35,05%)equipment (35,05%)
textiles and garments textiles and garments (27,7%);(27,7%);
furniture, wood products furniture, wood products (22,5%); (22,5%);
machinery, electrical machinery, electrical equipment (2,9%);equipment (2,9%);
metals and articles thereof metals and articles thereof (4%)(4%)
minerals (1,4%).minerals (1,4%).
Romanian ImportRomanian Importss
metals and articles metals and articles thereof (52,1%) thereof (52,1%)
machinery, electrical machinery, electrical equipment (29,4%); equipment (29,4%);
plastics and rubber plastics and rubber products (6,2%)products (6,2%)
stone products (3,4%);stone products (3,4%); vehicles, transport vehicles, transport
equipment (1,9%); equipment (1,9%);
1919
LUXEMBURG FDI’s in LUXEMBURG FDI’s in RomaniaRomania
200,73200,73 million million euro share-capital euro share-capital in Romanian companiesin Romanian companies;;
636636 companiecompaniess with with LuxembourgLuxembourg capital registered in Romaniacapital registered in Romania
Sectors for Sectors for LuxembourgLuxembourg investmentsinvestments:: industry, services, industry, services, retailing, wholesale, retailing, wholesale, constructions, agricultureconstructions, agriculture
2020
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
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
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
TOP TOP REASONS TO INVEST IN ROMANIAREASONS TO INVEST IN ROMANIA (1) (1)
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Economic Advantage
• Sustainable economic growth • Functional Market Economy status • Competitive tax policy• Decreasing inflation • Permanent financial assistance for SME's Development • Structural funds
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 well-known international banks • Newly developed highway infrastructure • Commitment to improve the highway infrastructure to EU standards • Extensive maritime and river navigation facilities
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 well-known international banks • Newly developed highway infrastructure • Commitment to improve the highway infrastructure to EU standards • Extensive maritime and river navigation facilities
TOP TOP REASONS TO INVEST IN ROMANIAREASONS TO INVEST IN ROMANIA (2) (2)
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Potential Sectors for InvestmentPotential Sectors for Investment
o ManufacturingManufacturingo Automotive partsAutomotive partso IT & IT &
CommunicationCommunicationo Electric & Electric &
ElectronicsElectronicso Wood processingWood processing
o Construction Construction materialsmaterials
o TextileTextileo Food processingFood processingo InfrastructureInfrastructureo Outsourcing and Outsourcing and
logisticslogistics
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MINISTRY FOR SMALL AND MEDIUM SIZED MINISTRY FOR SMALL AND MEDIUM SIZED ENTERPRISES, COMMERCE, TOURISM AND LIBERAL ENTERPRISES, COMMERCE, TOURISM AND LIBERAL
PROFESSIONSPROFESSIONS
Phone: +40 21 4010510Phone: +40 21 4010510
Fax: +40 21 3150086Fax: +40 21 3150086
E-mail: [email protected]: [email protected]
Website: www.dce.gov.roWebsite: www.dce.gov.ro
THANK YOU !THANK YOU !