ROMANIAN INVESTMENT CLIMATE Stimulative for New Business and Expansions Ph.D. Iustina Lutan - Councelor Romanian Agency for Foreign Investment

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ROMANIAN INVESTMENT CLIMATE Stimulative for New
Business and Expansions Ph.D. Iustina Lutan -
CouncelorRomanian Agency for Foreign Investment

• Antalya, March 2007

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Eye on Romania
You are looking at your next location in Eastern
Europe
ROMANIA
access to high competencies and a growing
market, where the costs are low and the quality
is high
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Macroeconomic Data
Total population (million)
GDP per capita (EUR, 2006)
Vienna Institute of International Economic Studies
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Great potential for growth
GDP Growth rate

• Solid economic fundamentals
• Rapid real GDP growth
• Declining inflation
• Declining unemployment, currently at 5.4
  (average in 2006)
• Steady credit rating improvement
• Moodys increased its rating from B3 in 2000 to
  Ba1 (positive) currently
• SP and Fitch ratings increased from B- in 2000
  to BBB- (positive) currently

Inflation rate
National Bank of Romania, National Commission for
Prognosis
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EU financial assistance to Romania, 2007-2013

• Financial support provided by E.U. to Romania
  during 2007-2013 is up to Euro 30 billion through
  structural and cohesion funds
• Romanian coordinating authority Ministry of
  Public Finances

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Competitive Taxation

• Central and Eastern European countries are
  trying to follow the successful Irish example
  to have faster economic growth through low taxes

CEE-CIS Tax Notes - PriceWaterhouseCoopers
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Competitive Labor Cost

• The average gross monthly wage in Romania is the
  second lowest after Bulgaria
• It is expected to grow by 12 yearly

Gross monthly wages EUR
Regional Comparison 2006 - EUR
Vienna Institute of International Economic
Studies, Romanian Central Bank
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Valuable Human Potential

• high performances in international competitions
• high percentage of technically competent
  professionals
• highest growth rate of IT specialists in the
  region
• strong language skills English, French, German,
  Italian, Spanish, Russian, etc.
• large skilled labor force at comparatively low
  wage rates

Source National Institute of Statistics
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Telecommunication infrastructure
coverage area -
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Inward FDI Performance

• Record values in 2004-2006
• FDI Stock EUR 31 bill.
• (1990 December 2006)
• EUR 9.1 bill. in 2006

Inward FDI EUR billion
Regional Comparison 2006, EUR million
Vienna Institute of International Economic Studies
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FDI by Country and by Field of Activity- 2006
Value of Subscribed Capital by Field of Activity
National Trade Register Office
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Turkish Investment in Romania 1990 2006
Source National Trade Register Office Ministry
of Justice
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Top 10 Turkish Companies in Romania
Source National Trade Register Office Ministry
of Justice
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Automotive Industry Opportunities

• Experience in the field of car makers
• Automotive component parts rapidly growing
  sector currently over 175 major manufacturers
• Availability of labor force
• Labor cost monthly average salary approx. Euro
  250
• Total number employed 120.000
• Trained work force
• 7 colleges in vehicle technology 500 graduates
  each year
• 25 colleges in mechanical engineering 1.000
  graduates each year
• Availability of suppliers and subcontractors
• Presence of RD centers
• Success investment stories in the field

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MAJOR FOREIGN INVESTMENT in automotive industry
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Romanian ITC Industry Trends

• High density of Romanian IT specialists (five
  times higher than in Russia, and seven times than
  in India).
• Romanian Olympic students are usually placed in
  top 4 with China, US and Russia.
• In Microsoft the second spoken language is
  Romanian
• Low brain drain phenomenon in Romania
• IT sector is in constant growing
• Major multinational IT companies such as
  Microsoft, HP, Oracle, Cisco, Intel and Motorola
  are present in Romania - many of them use Romania
  as regional headquarters

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A Top European Location for RD and specialized
BPO
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Strong outsourcing and technology players
includes company with primary development
locations in Romania. Multinationals like Ness
and Wipro are excluded
Source Ministry of Communication and Information
Technology
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WHO is A.R.I.S?

• Established in July 2002
• Governmental body under the authority of Prime
  Minister
• In charge with attracting and retaining foreign
  direct investment
• One stop shop for foreign investors
• Interface between investors and central local
  authorities
• Providing free of charge services for new
  comers and existing investors in Romania

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Long Term Visa for Commercial Activities

• ARIS ENDORSMENT
• - ARIS is granting an endorsement to the foreign
  citizens requesting the long term visa for
  developing commercial activities in Romania.
• NECESSARY DOCUMENTS FOR APPLICATION
• -availble on line at www.arisinvest.ro
• VISA REQUEST
• submitted to the Consulates of Romania
• - Documents ARIS endorsement criminal record
  certificate or other document with the same legal
  value Medical insurance for the visa validity
  period.
• - 1st application visa granted for 6 months
• - visa extended for new intervals of up to 1 year
  granted by the Authority for Aliens

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Review of Major Reasons to Invest Romania

• Healthy and Predictable Investment Climate
• EU member state from January 2007
• Supportive Operational Conditions
• Favorable Economic Conditions
• European Structural Funds available
• Specialized authority in the field of direct
  investment

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Thank you for your attention!
Tel [phone] Fax 40 21
233.91.04 Email aris_at_arisinvest.ro Website
www.arisinvest.ro