Investment Climate in Romania STIMULATIVE

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Investment Climate in Romania STIMULATIVE
PREDICTABLE
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Benefits of EU Accession

• Access to an extended market of more than 500
  mill consumers for non-European companies settled
  in Romania
• Harmonization of capital market regulations,
  taxation, accounting rules gt higher transparency
  and simplification
• Simplified procedure in business administration
  when exporting to EU member states
• Elimination of exchange risks and conversion
  charges when Romania will join the Euro zone

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ECONOMY ON THE MOVE
GDP Growth ()
Source Government Program
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ECONOMY ON THE MOVE
Inflation Rate ()
Source Government Program
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UNEMPLOYMENT RATE
CEE - 2003
ROMANIA
6
FDI Annual Inflows in Romania 2000 2004
Cumulative FDI Stock ? Euro 14.17 billion at the
end of 2004
Source National Bank of Romania
7
FDI Inflows by Field of Activity (the subscribed
capital)
8
FDI Inflows by Country (by the subscribed capital)
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Belgian Investment in Romania 1991 2004
1353
Number of registered companies
1.26
Share in the total number of companies with
foreign capital
Ranking by total number of companies
21
Source National Trade Register Office Ministry
of Justice
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OMNINVEST NV
MECHANISHE CONSTRUCTIE WATEEUW
LVD COMPANY NV
BROUWERIJ MARTENS
INERGY AUTOMOTIVE SYSTEMS RESEARCH
BEL VIR SA
ACCOR HOTELS
WIREFREE SERVICES
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Foreign Investor Rights

• foreign investment allowed in all sectors of
  economy
• possibility to freely manage the company with
  full ownership rights
• full repatriation of capital and profits
• protection against expropriation and
  nationalization
• national treatment for foreign investors

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Incentives for investments over USD 1 million

• Exemption from paying custom duties
• Technological machinery, installations,
  equipment, measuring and control apparatus,
  automation equipment and software products
  purchased
• Deduction of 20 of the value of the new
  investments
• Fiscally registered the month the investment is
  completed
• Carrying forward the fiscal loss from the taxable
  profit, during the following 5 years
• Accelerated depreciation (except for buildings)
• The Local Council may approve the exemption or
  reduction of the tax on land, no more than 3
  years from the works starting date

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Competitive Taxation
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Operational Costs to increase in 2005
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Improving Infrastructure Highways projects
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Valuable Human Potential

• strong enrolment pattern at tertiary level
• 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

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AVERAGE WAGE (Euro)
Source Government Program
Federation of European Employers (FedEE)
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5 REASON TO INVEST ROMANIA

• STRONG MARKET POTENTIAL

2. FUNCTIONAL MARKET ECONOMY
3. HIGH SKILLED LABOR FORCE
4. COMPETITIVE TAX POLICY
5. SIGNIFICANT ECONOMIC GROWTH
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ARIS, An Investment Partner

• Agency created to assist the foreign investor -
  Available and well-positioned to help the
  Japanese investor
• More than 75 of ARIS staff speak English
• Website and listing of potential investment
  projects available in English

Bd. Primaverii 22, Sector 1, Bucharest Tel
40-(0)21-233.91.03 Fax
40-(0)21-233.91.04 www.arisinvest.ro email
aris_at_arisinvest.ro
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WIN WIN SITUATION!