Romania Capital Bucharest Currency Leu (ROL) Population 22.33 million EU status Applicant GDP $186.4 billion Employment 93.5% Government type Republic Religions Eastern Orthodox (including all sub-denominations) 86.8% Protestant (various denominations including Reformate and Pentecostal) 7.5% Roman Catholic 4.7%, other (mostly Muslim) and unspecified 0.9%, none 0.1% (2002 census) Languages Romanian (official) Hungarian, German Exports $27.72 billion f.o.b. (2005 est.) Imports $38.15 billion f.o.b. (2005 est.)

Romania

Medieval city — Sighisoara, Romania

Romania had a great deal of ground to make up in its transition to a market economy, with a particularly poor infrastructure and a troubled political climate as it began to emerge from communism. Now, however, it is finding favour with investors as a location with a fast-growing IT sector, and increasingly as a good-value location for manufacturing plants. A number of automotive and parts manufacturers have opened plants in Romania in recent years, including Pirelli and Renault.

The service and financial sector now accounts for about half of Romania’s economy, with manufacturing and industry accounting for about a third. Romania also has a relatively large agricultural sector, and small reserves of natural gas and oil.

The pace of Romania’s development has led to its acceptance as a candidate country of the EU, with entry currently set for 2007. Privatisation of state assets is ongoing.

Fast-growing IT sector

According to recent reports in Romanian business media, the ITC industry now accounts for 8% of GDP. The sector grew by 20% last year, and received a total of €1.8 billion in investments. There is still considerable potential for growth in this area, as internet penetration is only 28%, against a European average of 38%. The telephony sector has been deregulated, and a new service was launched as recently as February 2006, by Combridge SRL, the Romanian subsidiary of Magyar Telekom and a part of Deutsche Telekom group. There are currently some 13 million cellphone users in Romania — over half the population. Business commentators expect the market will continue to expand.

Transport

The road network is undergoing modernisation. Romania is also well-placed for multi-modal transport. In addition to three sea ports, there are 13 river ports on the Danube, a major river transport artery that is navigable upstream as far as Austria, and is connected by canal to the Rhine.

Moving forward

Corruption has been identified as one of the major factors hindering the development of the economy in Romania, and one of the issues which must be solved before it can enter the EU. Various measures are being put in place to tackle the problem. In January 2005, Amcham Romania launched a drive for Romania to join the “Partnering against corruption” initiative. Poverty continues to be a problem, particularly in rural areas.

Setting up

There is currently no specific legislation in place to attract foreign direct investors. However, 100% foreign ownership of companies is permitted, although a number of US sources advise that joint ventures are usually more successful. Foreign-owned companies may repatriate 100% of profits after tax. Corporate tax runs at 25%, and VAT at 19%. Visas are necessary for stays of over 90 days. These may be applied for after entry to the country.

 

Facts in brief

View of Peles Castle

Romania’s location is Southeastern Europe, bordering the Black Sea, between Bulgaria and Ukraine. Controls most easily traversable land route between the Balkans, Moldova and Ukraine

Its climate is temperate: cold, cloudy winters with frequent snow and fog; sunny summers with frequent showers and thunderstorms

Natural resources include petroleum (reserves declining), timber, natural gas, coal, iron ore, salt, arable land, hydropower.

Agricultural products are wheat, corn, barley, sugar beets, sunflower seed, potatoes, grapes; eggs, sheep

Industries include textiles and footwear, light machinery and auto assembly, mining, timber, construction materials, metallurgy, chemicals, food processing, petroleum refining

Diplomatic representation in the US — Chief of mission: Ambassador Sorin Dumitru Ducaru

Diplomatic representation from the US — Chief of mission: Ambassador Nicholas F Taubman

 

Contact Information

American Chamber of Commerce in Romania
Union International Center
11 Ion Cimpineanu Street
Sector 1
RO-701161 Bucharest
Romania
Tel: +40 21 315 8694
E-mail: harasim@amcham.ro
Website: www.amcham.ro

Useful websites

www.usembassy.ro	US Embassy in Romania
www.investromania.ro	Business news, economy focus, investment opportunities
www.arisinvest.ro	Government agency for foreign investors
www.insse.ro	National Institute of Statistics (in Romanian only)
www.businessromania.com	Business news portal
www.ebrd.com/country/...	EBRD projects in Romania, including news on privatisation prospects
www.romaniatourism.com	Official tourism portal, country info, etc.

 

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