CAPTURE THE OPPORTUNITY IN ROMANIA

Transcription

1 CAPTURE THE OPPORTUNITY IN ROMANIA BUSINESS SWEDEN March 2015 Bucharest

2 ROMANIA AN INTERESTING MIXTURE OF CULTURES AND STYLES AT EUROPÉ S GATE TO ORIENT Stable and growing economy Many business opportunities Relatively good business climate Small volumes for trade with Sweden Extensive support from the EU BUSINESS SWEDEN - ROMANIA 4 AUGUST,

3 STABLE AND GROWING ECONOMY Large market showing good macroeconomic indicators Robust economic growth in the last years, above any regional peer Low public debt to GDP level Stable exchange rate to the euro Low inflation Geographical and cultural proximity to Western Europe Competitive price-quality ratio for production In 2013 and 2014, external demand has been driving growth; gradual shift toward domestic demand is foreseen for ,9 6,2 4,3 3,4 3,3 3,2 9,1 0,4 0,0-4,5-5,0-7,1 6,6 2,1-1,3 3,7 2,5 1,6 0,7 0,2-0,4 3,5 1,5-0, ,5 2,9 BNP % Romania BNP % EU BNP % Sverige 1,4 SOURCE: EUROSTAT; BUSINESS SWEDEN ANALYSIS BUSINESS SWEDEN - ROMANIA 3

4 THE MOST PROMISING SECTORS IN ROMANIA Over softwareproducing companies activate in Romania, located mainly in the main University centers Renowned quality and creativity of the young ITC specialists Investments are needed in all the sectors within the environmental field Fulfilling the aquis communitaire for energy and environment couldn t be done without EU s financial support Workforce within the industry is skilled, and wages/ production costs are low in the approximately furniture manufacturing companies in the country 60% of the total furniture production is exported IT Services & Software Energy & Environment Wood and Furniture Industrial Equipment and Vehicles Machinery accounts for over 50% of the Swedish exports to Romania Skilled labor is easy to find within automotive, machinery and equipment industry Health and Life Science There are major reforms initiated to improve efficiency and revenue streams of the healthcare sector 85% of hospitals were transferred to local administrations Textiles High quality labor and production, with experience in producing high-end luxury products for international brands such as Dolce and Gabanna, Gucci, Filippa K, H&M etc. SOURCE: BUSINESS SWEDEN ANALYSIS BUSINESS SWEDEN - ROMANIA 4 AUGUST,

5 SWEDISH COMPANIES EMPLOY MORE THAN PEOPLE IN ROMANIA The business relations between Sweden and Romania have resumed after 1989 There are app active companies with Swedish capital in Romania employing more than people In the 90s, most of the companies came to Romania for sales, and later on, they developed production facilities, R&D and after sales services (e.g. Ericsson) Some of them have production facilities there e.g. Electrolux, H&M, Autoliv, Trelleborg, Bufab Increasingly, service oriented companies are established on the market e.g. Medicover, Provis Energy, Securitas, Husse and Diaverum MOST OF THE BIG SWEDISH EXPORT ORIENTED COMPANIES ARE PRESENT IN ROMANIA SOURCE: BUSINESS SWEDEN ANALYSIS BUSINESS SWEDEN - ROMANIA 4 AUGUST,

6 SWEDISH EXPORTS OF ENGINEERING PRODUCTS TO ROMANIA Exports from Sweden to Romania million EUR Miscellaneous Engineering products Telecom equipment Transport equipment ENGINEERING PRODUCTS HAVE ALWAYS BEEN A MAJOR COMPONENT OF SWEDISH EXPORTS TO ROMANIA SOURCE: KOMMERSKOLLEGIUM BUSINESS SWEDEN - ROMANIA 4 AUGUST,

7 ARE MIRRORED BY ENGINEERING PRODUCTS IMPORTS FROM ROMANIA Imports from Romania to Sweden million EUR Miscellaneous Engineering products Furniture Transport equipment Clothes FURNITURE EXPORTS REMAINED ALMOST CONSTANT DURING THE YEARS SOURCE: KOMMERSKOLLEGIUM BUSINESS SWEDEN - ROMANIA 4 AUGUST,

8 GOOD TO KNOW WHEN DOING BUSINESS IN ROMANIA Image of Scandinavia Scandinavia and especially Sweden have a very good reputation in Romania Swedes are regarded as professional, reliable and honest business Sweden is considered a well developed country constantly preoccupied by environment and nature preservation SWEDES ARE PERCEIVED AS RELIABLE AND HONEST BUSINESS PARTNERS SOURCE: BUSINESS SWEDEN ANALYSIS BUSINESS SWEDEN - ROMANIA 4 AUGUST,

9 EU COHESION FUNDS ALLOCATION FOR FOR ROMANIA, HAS GROWN BY 17% COMPARED TO COHESION FUNDS FOR ROMANIA (IN BEUR) SHARE OF COHESION FUNDS (IN BEUR) % = % Romania 20 Other EU member states SHARE OF COHESION FUNDS (IN BEUR) 5 100% = Romania Other EU member states SOURCES: EUROPEAN COMMISSION, MINISTRY OF EUROPEAN FUNDS BUSINESS SWEDEN - ROMANIA 4 AUGUST,

10 OVER 40% OF THE NATIONWIDE PROGRAMS IS DEDICATED TO INFRASTRUCTURE AND ENVIRONMENT DISTRIBUTION OF FUNDS (IN BEUR) 100% = 23 BEUR Competitiveness; 1,26; 6% Administrative Capacity; 0,52; 3% Technical Assistance; 0,3; 1% Human Capital; 3,44; 16% Large Infrastructure; 9,07; 43% Regional; 6,47; 31% SOURCE: MINISTRY OF EUROPEAN FUNDS BUSINESS SWEDEN - ROMANIA 4 AUGUST,

11 THE ROMANIAN ECONOMY ADAPTING TO EU OFFERS BUSINESS OPPORTUNITIES FOR SWEDISH COMPANIES Investments are needed in all the sectors within the environmental field Romania needs to develop an integrated waste management solution and infrastructure The Romanian Government is supportive in key areas like IT & C Environment and Healthcare Romania should comply with the European Urban Waste Water Directive by 2018 The IT& C sector is highly prioritized by the Romanian Government for export promotion There are major reforms initiated to improve efficiency and revenue streams of the healthcare sector SOURCE: BUSINESS SWEDEN ANALYSIS BUSINESS SWEDEN - ROMANIA 4 AUGUST,

12 FURTHER QUESTIONS? CONTACT BUSINESS SWEDEN POLAND DANIEL LARSSON TRADE COMMISSIONER T: M: BUSINESS SWEDEN 4 AUGUST,