Today, when the international economic context is facing a severe financial crisis, Romania is still counting on its competitive advantages and now maybe more than ever, considering we are no stranger to turbulences affecting business environments world wide; yet, we are no comparison to big economies, so in that respect, we can still count on a solid banking system and a friendly, cost competitive business environment, still able to insure good profit margins.
We would also like to mention that it helps having traditional partners who took upon Romania since early 90's when the economic climate was poorly developed, highly risky and lacking stability. These partners have built strong business communities in Romania and they are here to stay, standing for a solid proof that we are still worth considering when aiming growth and expansion. We cannot overlook the fact that we are not going to touch last years sky rocketing figures as FDI flows are decelerating world wide, but I am confident that the international crisis negative impact on project financing will determine entrepreneurs to continue look for the regions that are still in, for making good money.
One of the large EU members, Romania stands for an incredible market opportunity in terms of size (the 9th in EU27) and population (the 7th in EU27), offering investors a strong market potential as the second largest country in Central and Eastern Europe after Poland.
As a result of the EU accession in January 2007, investors here find themselves within a single market of 500 million consumers, providing enormous advantages for companies seeking new markets for development and growth.
Romania's geo-strategic advantage is its most privileged location at the crossroads of three great markets: the European Union, the CIS states and the Middle East, being crossed by three important pan-European transportation corridors: no. 4 linking Europe from West to East, no. 9 from North to South, and no. 7, facilitating inland water transportation on the Danube. Romania holds 1/3 of the Danube river and the largest and deepest port at the Black Sea- Constanta Port, offering a 5 days time saving competitive advantage against the biggest European port, Rotterdam (as concerns Asian goods transportation by sea).
The past years brought Romania a sustainable economic growth, booming in 2008 (7.1% as highest in EU27), when our country enjoyed the highest GDP growth within EU27. Of course that, we won't have the high rates of the past years considering the economic context not being at its best, and GDP is plummeting world wide; yet, we believe that, there is still place for expansion and profit.
As far as the FDI performance is concerned, Romania is one of the leading countries within the pool, coming second in CEE and first in South East Europe. In May 2009 inward FDI reached EURO 2,475 bill, fully covering yet again, for the fifth month in a row, Romania's current account gap. Furthermore, over EUR 50 bill in FDI stock during 1990-2008, with almost half of it as in EUR 25 bill, attracted over the last 3 years only, are as many reasons for proving that Romania is a reliable partner for project implementation.
The figures are promising and stand for good premises in believing that our country will hold on to its position as one of the top FDI recipients in the region. In this respect its worth mentioning that ARIS expects a EUR 4.5-5 bill inward FDI for 2009, considering that foreign direct investment flows have decelerated world wide due to economic slowdown, as confirmed by UNCTAD preliminary data for QI 2009; nevertheless, capital flows are expected to gradually regain impetus as global financial markets start to stabilize.
Another "pro" for taking upon Romania, is our country offering an extensively creative potential of highly skilled workforce, at competitive prices, enjoying reduced culture and language barriers.
Romania has a cost-competitive business climate enjoying a 16% flat tax, as one of the lowest in CEE and a 19% competitive VAT rate, translated into a sound fiscal policy, offering good operating conditions for legitimate firms.
Moreover, Romanian Government, totally aware that companies already in the country are key to generating new capital influx, and slow down weakening growth prospects of Romania's future performance, has announced anticrisis measures (tax exemption on dividends and future tax exemption on reinvested profit) and decision to support investment in infrastructure as well as cutting red tape for alleviating access to state aid and EUR 33 bill in structural funds.
All the above mentioned stand for as many reasons to take upon Romania and address the Romanian Agency for Foreign Investment as the Governmental leading body responsible with attracting and retaining foreign direct investment within the domestic economy. We are the "One stop shop" for foreign investors and main in interface between foreign companies and central & local authorities providing "free of charge" services for capital exporters. I take this opportunity to express ARIS availability in offering our support for investment projects to be turned into real success stories. All you have to do is knock on our door and let us do the work for you.
To end my brief speech I would like to invite you all to take a closer and fresh look at our country because Romania is worth it.
