Title: ROMANIANINVESTMENT CLIMATE Stimulative for New Business and Expansions
1ROMANIAN INVESTMENT CLIMATE Stimulative for New
Business and Expansions
2Eye 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
3Romania large EU accession economy
Total population (million)
- Country with almost 22 million inhabitants
- Close ties with and good integration into EU
economies - Clear accession plan to join the EU by January
2007
GDP per capita (EUR, 2005)
Vienna Institute of International Economic Studies
4 with significant growth still ahead
GDP Growth rate
- Solid economic fundamentals
- Rapid real GDP growth
- Declining inflation, below 9
- Declining unemployment, currently at 5.2
- 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
5Competitive 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
6Competitive 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 2005 - EUR
Vienna Institute of International Economic Studies
7Valuable Human Potential
University graduates in Romania (by education
field)
- 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
Total number of University graduates in
2003/2004 110,533
Source National Institute of Statistics
8Pupils enrolled in pre-university education -
2004/2005 - by studied modern
language -
First modern language
Second modern language
Source National Institute of Statistics
9Major University Centers
Source National Institute of Statistics
10Telecommunication infrastructure
coverage area -
11Foreign 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
12A new investment law now in public debate
- The proposed bill provides a set of incentives
for the investments that aim - regional development
- research and development
- environmental protection
- human resource development
- improving social inclusion and cohesion.
13Inward FDI Performance
- Record value in 2005
- FDI Stock EUR 24 bill.
- (1990 August 2006)
- EUR 4.3 bill. in August 2006
Inward FDI EUR billion
Regional Comparison 2005 - EUR million
Vienna Institute of International Economic Studies
14FDI by Country and by Field of Activity-
September 2006
Value of Subscribed Capital by Field of Activity
National Trade Register Office
15Romanian competitiveness
on the global ITC market
Romania has a long history of education and
research in all fields of engineering and
software 116 universities, 36 have a computer
science related faculty
Romanias location is an advantage in itself -
major multinational IT companies are present in
Romania
Romanian graduates are multi-lingual (1st place
in the Certificate of Proficiency in English exam
at Cambridge University) and world class
concerning their competencies
Made in Romania
Romanias legal system and culture - similar to
those in Europe and US.
Romanias density of software graduates per
thousand inhabitants is significantly higher than
in USA, five times higher than in Russia and
nearly seven times bigger than in India.
The cost of IT-skilled professionals 1/3 in US
and Europe
Ministry of Communication and Information
Technology
16A Top European Location for RD and specialized
BPO (1)
2500 engineers developing embedded automotive
systems and network operator equipment all over
Romania
1200 engineers developing network operator
equipment in Western Romania
Intel Capital invested 12M in Romanian IT
services and outsourcing company, Siveco, in
Bucharest
250 RD engineers working on semiconductor design
in conjunction with Bucharest Polytechnic
100 engineers developing compilers and
development tools in Bucharest
Operates five global IT Technology Centers
including development and a 15-language call
center
Ministry of Communication and Information
Technology
17A Top European Location for RD and specialized
BPO (2)
In 2006 Microsoft decided to set up a Global
Technical Support Center 700 employees
The global outsourcing firm, owned by GE and Oak
Hill Partners, employs 170 and plans to expand to
1500 for IT outsourcing, financial services and
supply chain BPO
HP set up a BPO in Bucharest for financial and
administrative services, dedicated to EMEA region
- up to 1200 employees in few years
In 2006 WIPRO decided to set up a BPO center in
Bucharest for IT services covering the East
European market - 700 employees
RD center for software applications in
Timisoara, due to be open starting with beginning
of 2007
18Strong outsourcing and technology players
includes company with primary development
locations in Romania. Multinationals like Ness
and Wipro are excluded
Ministry of Communication and Information
Technology
19Major call centers in Romania
20Review of Major Reasons to Invest Romania
- Healthy and Predictable Investment Climate
- EU member state in January 2007
- Supportive Operational Conditions
- Stimulating and Stable General Legal Framework
- Favorable Economic Conditions
- European Structural Funds available
21WHO 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
22How can A.R.I.S. help you?
- One-stop shop for dealing with the Central
Local Authorities and other institutions. - Search and advice on the best location in Romania
to fulfill the company' needs (industrial land,
buildings and office space) including site
search, analysis and touring around . - Value added information on incentives and other
administrative procedures. - Search for industrial and service suppliers.
- Advice on staff selection and recruitment in
terms of cost and availability. - Lists of consultancy, recruitment, real estate
companies, and other providers operating in
Romania.
23Thank you for your attention!
Tel 40 21 233.91.03 Fax 40 21
233.91.04 Email aris_at_arisinvest.ro Website
www.arisinvest.ro