Romania: Investing

FDI in Figures

The government, which launched a number of privatization programs to attract foreign investors, benefited from spectacular FDI flows before the global financial crisis (more than EUR 9 billion in 2007 and almost EUR 14 billion in 2008). 

However, the financial crisis had a negative effect on FDI flows coming into Romania: they dropped by 50% in 2009 and have been decreasing since. To counter the effects of the crisis, the country received a 13 billion EUR aid package from the IMF and another in 2011, in order to deal with the challenges it needs to overcome.

The distribution of foreign direct investment  by sectors is led by the industrial sector (more than one third of the total), in which the metallurgy industry stands out. Other activity sectors have attracted investors such as banking and insurance, wholesale and retail, energy, construction and telecommunications. The regions which attract the most foreign capital are, in order of importance:  Bucharest (more than 60% of the total), the country's center and the south.

Romania has numerous advantages: in addition to a large domestic market, the country has a strong industrial tradition, coupled with a cost of labor among the lowest in the EU. This has been the reason for the development of a significant industrial sector, particularly car making, but also of the services .

The main investors in Romania are France, Austria, the Netherlands, Germany and the Czech Republic. The Czech company CEZ invested over EUR 1 billion in 2011, to install a park of 240 wind turbines near the Black Sea.

Why You Should Choose to Invest in Romania

Strong Points

The main strong points of Romania are:
- A relatively large domestic market;
- A skilled and inexpensive workforce;
- Its membership of the European Union and its future adoption of the Euro as currency.

Weak Points

The country's weak points are:
- Its infrastructures (highways, railroads, air ) are of bad quality and in need of improvement;
- A significant corruption and the government is not capable of using the financial aid form the European Union wisely;
- A relatively poor population which has limited purchasing power.

Government Measures to Motivate or Restrict FDI

The Romanian government has reaffirmed its willingness to privatize the public sector, especially in the fields of energy, heavy industry and pharmaceutical industry. The Authority for State Assets Recovery (AVAS) is in charge of the formulation, adoption and implementation of privatization. The government has recently passed laws that include financial aid for investments of more than 30 million Euros (EUR) which can create at least 300 jobs and encourage investments in certain economy sectors, such as energy. Romania has one special industrial zone.

Procedures Relative to Foreign Investment

Acquisition of Holdings

Taking the majority shareholdings of a Romanian company is allowed.

Obligation to Declare

The agency on promoting foreign investment in the country can inform one about the necessary permissions required for business setup.

Competent Organization For the Declaration

Agency for the Promotion of Foreign Investment.

Investment Opportunities

Investment Aid Agency

Investing in Romania
Agency for the Promotion of Foreign Investment
National Bank of Romania

Tenders, Projects and Public Procurement

Tenders Info, Tenders in Romania
Ted - Tenders Electronic daily, Business opportunities in EU 27
Globaltenders, Tenders & Projects from Romania
DgMarket, Tenders Worldwide

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