Transcript Is Romania the place to be in 2015?

Is Romania the place to be in 2015?
1stst
Current Investment Climate
Doing Business
Mechelen, 1st April 2015
Dirk Timmerman
Position in Europe
• SE Central Europe
• Capital: Bucharest
• 1 RON =0.222 Euro
2
• Area: 238.391 km
• Population: 2014 estimate 19.942,642
Bucharest / Ilfov
• Area: 238,391 km2
• Population: 2014 estimate 1.920.610
• Share of the GDP: over 50%
(15.454 EUR) Bucharest
Palace of Parliament
(11.238 EUR) Ilfov
• Unemployment rate Bucharest: 2,0%
• Unemployment rate Ilfov: 1,8%
• Average net wage Bucharest: 584.31 EUR
• Average net wage Ilfov: 469 EUR
Arch of Triumph
Forms of Business Organization
Limited liability company (S.R.L.)
Joint-Stock Company (S.A.)
General Partnership (S.N.C.)
Limited partnership (S.C.S.)
Partnership limited by shares
(S.C.A.)
Incentives
Well known are:
•16% corporate income tax, flat rate
• 200 RON minimum capital
- limited liability company
• Tax incentives
- accelerated depreciation;
- expenses related to R&D;
- deferred taxation on fixed assets;
- capital gains on Romanian stock
exchange;
- dividend tax exemption for
reinvestments;
- local tax exemptions for location
in industrial, scientific and
technological parks;
• Employment incentives.
Subsidies
EU funds:
Structural and Cohesion Funds
•European Social Funds;
•European Regional Development
Fund.
Budget 2014-2020: € 22.4 billion
European Agricultural Fund
Budget 2014-2020: € 8 billion
YES… BUT…
Source: Global Worth (Ministry of European Funds of Romania; EIU)
Annual GDP forecast
FDI flows
Source: Global Worth (Ministry of European Funds of Romania; EIU)
1Example of 10 blue-chip multinationals investing in Romania leveraging on the public incentives
Investment
Best Romanian cities to do business in
Romanian GDP per Capita & Wages
Increase - 2015
Source: National Commission for Prognosis
Unemployment rate
Source: capital.ro / October 2014
Investment Opportunities in Romania
Sectors
Agriculture and Food
Textile
Construction
Environmental
Automotive
Information for investors
Agentia pentru Dezvoltare Regionala Bucuresti-Ilfov (ADRBI)
Address: 163 Mihai Eminescu Street, 2 District, Bucharest, Romania
Phone: +40 21 315 96 59 / +40 746 099 952
Fax: +40 21 315 96 59
Email: [email protected] / [email protected]
WebSite: www.adrbi.ro
Flemish investments / Representations
In almost every sector, all over the country, there are a few hundred Flemish companies
TRANSPORT
Crossed by 3 important
pan-European corridors
Attractive location: access to the
European market, CIS countries, Balkans
No. IV linking Western and Eastern
Europe
No. IX connecting Northern and Southern Europe
No. VII Danube River, facilitating inland water transportation.
At the same time connecting the Romanian Port of Constanta (the
biggest Port to the Black Sea) to Northern Europe, through the Rhine.
Exports
Romania exports mostly:
• machinery and transport equipment;
• raw materials;
• miscellaneous manufactured articles(textiles and footwear).
Exports from Belgium to Romania
87,1% of Belgian exports is generated by Flanders
Imports
Romania imports:
• machinery and transport equipment;
• raw materials;
• chemicals;
• fuels
Imports from Romania in Flanders
687,038
800,000
700,000
562,227
708,485
525,997
600,000
500,000
400,000
300,000
200,000
100,000
0
2011
2012
2013
2014
10 Major Reasons to Invest in Romania
 Strategic location;
 High skilled labour force;
 High potential for economic growth;
 Friendly business environment;
 Competitive taxation;
 EU member;
 Access to European Funds;
 Infrastructure growing steadily;
 Significant natural resources;
 Tourism potential.
Trust -> Business
•Patience
• Trust
• Tenacity
• Flexibility
• Understanding
• Written on paper
Business attitude
Conclusions
Not the promised land…..
WHY NOT?
…. because of the administrative burdens, that can turn into long lasting
frustrations, the lack of modern infrastructure, sometimes the difficulty to align
our business approach with the local perception, and so on,
BUT
without any doubt, a country that offers a lot of possibilities to those who are
tenacious and driven by the real entrepreneurial esprit !!!!!!!
That is at least my opinion.
Thank you.
FIT TEAM
Av. Marcel Andreescu 35-37,
District 1, Bucharest
+40 21 231 56 07
[email protected]
THANK YOU!
This is Romania…