Transcript Romania Great Opportunities

Romania
Great Opportunities
Embassy of Romania to the Republic of Poland
Office for Economic and Commercial Promotion -Warsaw
Romania - Macroeconomic snapshot

2015 – the fifth year in a row with positive economic Growth

After a GDP dynamics of 2.8% in 2014, current forecasts for 2015
cluster around 3.5%, again well above EU average Growth
 The growth outlook is favorable,
- INDUSTRIAL PRODUCTION - increased by 6,1% in 2014
- EXPORTS - increased by 5,8% in 2014
- IMPORTS - increased by 5,9% in 2014
 Inflation rate declined in recent years, reaching record lows in 2015
 The average annual inflation rate (0.2% in September) is compliant
with the specific Maastricht criterion
 The current account deficit is expected to remain below 1.0% of GDP
in 2015, well under the MIP scoreboard benchmark (4%)
 International reserves remain at a comfortable despite the almost
full repayment of the IMF loan
Romania - Macroeconomic snapshot (2)
 The banking system is resilient to shocks
 Exposure to Greek banking system is limited
 Great Polish banks in Romania
- Idea Bank
- Alior Bank
 Country Ratings of Romania (2015):
Coface (business climate / risk) A4 / B
Fitch (long term FC / LC) BBB- stable / BBB stable
JCR (FC / LC)
BBB- / BBB
Moody’s Baa3 stable / Baa3/P-3 (Gov. bonds)
Standard & Poor’s (FC)
BBB- stable
Bilateral trade with Poland
Mill EUR
Source: National Institute of Statistics (NIS)
FDI
•FDI 2014*: EUR 2,426
mill.
•Stock: EUR 62,4 bn.
(1990 – 31st of Dec
2014)
Some FDI Success Stories
FDI Stock by Field of Activity
Source: National Bank of Romania
Romanian – Polish investments
Polish Investments in Romania
Romanian Investments in
Poland
839 Polish companies
288.53 mil.Euro share capital,
according to Romanian statistics /
September 2015, 19 th place.
Total Romanian investments
77 million Euro total
assets(2014)
Examples:
Examples:
MASPEX TYMBARK
ASSECO
BARLINEK
CAN PACK
CERSANIT
CIECH
GETIN HOLDING
PORTA KMI
ORLEN
SELENA
Source: ONRC
KONIMPEX
FORTE MEBLE
POLIMEX Mostostal
PROFI ROM FODOD
KONSALNET
KRONLUX F.M.
FAKRO
PRUSZYŃSKI Viking
TENZO
VOX Profile
KLER
UTI Grupa Polska – IT, traffic management,
security equipment
eMAG – e-commerce
TOHANI Polska – Romanian wines
UNITED GLOBAL FOOD Ltd.– food and
drinks
GECAD Group – IT
ZUMZI / NEOGEN – online coupons
Romania – economic competitiveness
Country
Global
Transparency Strength of
competitiveness
of government
investor
index
policymaking protection
2014 – 2015
Government
budget
balance
Government
Debt
Rank/value
(1-7)
59 / 4.30
Rank/value
(1-7)
86 / 3.8
Rank/value
(1-10)
45 / 6.0
Albania
97 / 3.84
67 / 4.0
14 / 7.3
123 / -6.2
113 / 70.5
Bulgaria
54 / 4.37
124 / 3.3
45 / 6.0
49 / -1.9
Croatia
77 / 4.13
121 / 3.3
123 / 3.3
Czech Republic
37 / 4.53
99 / 3.7
Cyprus
58 / 4.31
Greece
Number of
Extent of procedure
Ease of access
market
s required
to loans
dominance to start a
business
32 / 5
Rank/value
(1-7)
59 / 2.9
Rank/value
(1-7)
89 / 4.3
131 / 2.9
32 / 5
128 / 1.9
133 / 3.2
15 / 17.6
115 / 3.2
22 / 4
53 / 3.0
108 / 4.0
114 / -5.5
99 / 59.8
110 / 3.3
57 / 6
106 / 2.4
92 / 4.3
83 / 5.0
70 / -2.9
83 / 47.9
34 / 4.2
106 / 9
36 / 3.3
7 / 6.0
25 / 4.7
34 / 6.3
105 / -4.7
136 / 112.0
55 / 3.9
57 / 6
109 / 2.4
84 / 4.4
81 / 4.04
120 / 3.4
68 / 5.3
66 / -2.6
142 / 173.8
59 / 3.9
32 / 5
136 / 1.7
77 / 4.5
Hungary
60 / 4.28
119 / 3.4
105 / 4.3
59 / -2.4
120 / 79.2
88 / 3.5
22 / 4
126 / 2.0
15 / 5.5
Macedonia FYR
63 / 4.26
29 / 4.6
16 / 7.0
91 / -4.0
32 / 35.8
70 / 3.7
3/2
55 / 3.0
112 / 3.9
Moldova
82 / 4.03
69 / 4.0
68 / 5.3
46 / -1.8
25 / 24.4
125 / 3.1
57 / 6
104 / 2.4
117 / 3.7
Poland
43 / 4.48
110 / 3.6
45 / 6.0
100 / -4.5
96 / 56.7
19 / 4.8
22 / 4
89 / 2.6
54 / 4.9
Serbia
94 / 3.90
108 / 3.6
68 / 5.3
117 / -5.7
108 / 65.8
57 / 6
121 / 2.2
109 / 4.0
Slovak Republic
75 / 4.15
74 / 3.9
98 / 4.7
70 / -3.0
91 / 54.9
96 / 3.5
78 / 7
39 / 3.3
6 / 6.0
Slovenia
70 / 4.22
55 / 4.0
14 / 7.3
143 /-14.2
115 / 73.0
74 / 3.7
3/2
140 / 1.6
134 / 3.2
Romania
Rank/%GDP Rank/% GDP Rank/value
2013*)
2013 **)
(1-7)
65 / -2.5
59 / 39.3
61 / 3.8
Rank/no.
Prevalence
of foreign
ownership
*) General government budget balance as a percentage of GDP | 2013)
**) Gross general government debt as a percentage of GDP | 2013 or most recent year available
Source: The World Economic Forum, The Global Competitiveness Report 2014 - 2015
The Global Competitiveness Index 2014 – 2015 rankings (measuring the competitiveness of 144 countries)
Competitive Taxation
Highly Skilled Workforce
Romania’s
workforce,
with strong multilingual
abilities, is one of the
most educated in the
region. Investors can
access highly skilled,
innovative
specialists,
for
competitive
very
wages.
Business
Romania makes it easy to do business in one of South Eastern
Europe’s most dynamic and transparent business environments

IT & Communication

Infrastructure

Agriculture

Wood processing

Automotive components

Pharmaceuticals

Electric & Electronics

Energy (non-conventional)

Food processing

Textile industry

Manufacturing

Construction materials
IT&C the new star sector of the economy
The share of IT&C in total GDP
has exceeded that of
agricultural sector since 2014
and is currently close to the
share of construction
The sector accounts now for
more than 22% of the surplus
of trade in services (from
around 3% in 2005)
Development of the sector is
supported by a lower labor
tax wedge
Employees of IT&C companies
are exempt from paying income
taxes on wages, provided that the
firm has a turnover of over
USD 10,000 per employee
Source: NIS, FRD Center
Agro business sector in Romania
Agriculture in Romania remains a
significant sector of the national
economy in terms of area
contribution to the GDP and in
particular share in the total
employment.
Romania's
total
agricultural area is 14.8 million ha
(or 63% of total area), out of which
9.4 million ha are arable land
accounting for 63.3% of total
agricultural area.
The 7th EU country in terms of
gross value added of the agricultural
sector
Romania’s food and drink industry is
the 2nd largest in Central Europe
after Poland
Great potential for growth through
more efficient management and land
cultivation
In 2013 Romania had the second
highest increase in agricultural
income (around 10%) in EU after
Netherlands
GRAPE AND WINE PRODUCTION.
The production of grapes in
Romania has recorded 950,000
tones in 2013, up by 27% compared
to 2012
Source: Union of European Academies for Science Applied in Agriculture Food and Nature, FRD Center
Keeping a diversified and well balanced energy mix
Romania has a broad range of energy resources
nuclear, coal, gas, wind, solar, hydro, biomass.
One of the main components of the Romanian energy
strategy is represented by renewable sources. This
takes into account:
- encouraging the involvement of local capital in
investments in the green energy sector and building
an attractive and predictable environment for
investors;
- cautions, cost-effective and sustainable approach for
the development of renewable energy, with an
emphasis on sustainable biomass potential;
BUSINESS PROCESS OUTSOURCING (BPO) SECTOR
 Romania is ranked 2nd in Europe and 9th globally as preferred
destination for business services. The business services sector is a
growing industry in Romania.
 The Romanian market of outsourcing and support services is estimated
at over 1.5 billionEUR.
 The majority of BPO players in Romania provide services such as:
Finance & Accounting, Procurement, HR, Customer Support, Order
Administration, IT, Logistics, Call Center, Research & Analytics, Legal
and other services.
 Opportunities: SERVICES, EXPERTISE, EMPLOYMENT,
TECHNOLOGY, TRAINING, SOFTWARE.
Source: National Institute of Statistics
Why should you invest in Romania?
Key facts
•Agriculture
•Exports: IT services
Key national advantages
- Educated and relatively low-cost labor
force compared to other European
countries
- Over 95,000 IT&C specialists at ational
level
- The number of engineers per capita is
greater than the US, India, China, or
Russia
- Top 10 globally in the number of
certified IT specialists
- Important natural resources and
energy self- reliance
- Long history of strong industrial
production
Source: Ernst&Young
OPPORTUNITIES
•Planned investments ready to be
used for the underdeveloped
infrastructure in the country
•External demand is gaining more
traction while Romanian domestic
demand has continued to recover
•Growing automotive and IT
sectors
•Romania has the largest proven oil
reserves in the Balkans, at almost
600 million barrels, as well as
natural gas reserves
STATE AID
STATE AID 2007-2014
Total investment amount: over 3 billion Euro Approved state aid:
over 800 million Euro (automotive sector: almost 400 million Euro around 45%)
STATE AID 2014-2020
G.D. 332/2014 Scheme budget: RON 2,700 mill. (EUR 600 mill.)
Project eligibility: Investment that would generate within maximum
3 years from the completion of the investment the creation of
minimum 10 new jobs.
G.D. 807/2014 Scheme budget: RON 2,700 mill. (EUR 600 mill.)
Project eligibility: Investment in tangible and intangible assets of
minimum 10 mill. EUR
EU FUNDS
Romania is scheduled to receive approx. EUR 40 bill. in EU funds, during
2014-2020, out of which:
•EUR 21.5 bill. Structural and Cohesion Funds
•EUR 19.5 bill. Common Agricultural Policy
Operational Program (OP)
Large Infrastructure OP
Regional OP
Human Capital OP
Competitiveness OP
Administrative Capacity OP
Technical Assistance OP
Agriculture subsidies
Rural Development OP
Fishing OP
Financial programming for
2014-2020
(EUR bill.)
9.41
6.70
4.22
1.33
0.55
0.21
10.00
8.00
0.17
ROMANIAN-POLISH BUSINESS CLUB
STATUS
Non-institutionalized, non-profit, interactive platform for meetings, exchange of
views, information and promotion of bilateral projects.
Membership - free of charge.
MEMBERS
Any Romanian and Polish company, institution, organization, academic, R&D
Entity interested in developing bilateral relations.
Currently – 75 members
ROLE
Creating a network of companies, institutions, organizations, academics and
other economic entities from Romania and Poland
Interactive platform for business contacts and cooperation projects
Information on the economic environment, trade and investment opportunities in
Romania and Poland
Supporting interests of the Members towards Polish and Romanian authorities
REGISTRATION
Embassy of Romania in Warsaw / Economic Section
Thank you!
Economic & Commercial Promotion Office
10, Fr.Chopina Street
00-559 Warsaw, Poland
Phone (dir): +48 22 628 3156 ext.250
Phone/Fax: +48 22 628 3300
E-mail: [email protected]
http://varsovia.mae.ro