Romania A Strategic Choice. 2017, Bruxelles

Transcription

1 Romania A Strategic Choice 207, Bruxelles

2 Romania - Country overview Area: 238,39 km2 Capital: Bucharest Currency: RON EUR/ RON: 4.5 Population: approx: 20 mill Bucharest Metropolitan Area : 3 mill Bridge between East and West GDP growth Q2 207 Best performance in EU GDP 5x 206 vs FDI stock S & P Moody s Fitch BBB- Stable Baa3- Stable 5.7% 70bn BBB- Stable NATO membership EU membership EU Presidency Strategic US-Romanian partnership Source: *NSI 206

3 At a glance Economic & political stability Gateway to a 500 million consumers market 2nd largest country in CEE and the largest in SEE in terms of size (the 9th in EU28) and population (the 7th in EU28) At the crossroads of 3 great markets: the European Union, the CIS states and the Middle East st in EU for average peak connection speeds and 6th for 4 Mbps broadband adoption in Q3 206* Source: *Akamai 206 Q3206 State of the internet

4 Potential for Growth 4,2 8, 6,9 8,5-0,8, 0,6 3,5 3, 3,9 4,8 5,7 GDP growth (%) Q2 207 : 5.7% (Source: Eurostat) -7, 5,2 9, 7,3 9,5 3,4 2,3,7 2,5 2,7 2,4 3,5 4,5 FDI Inflows 206: 4.5 (EUR mld.) (Source: National Bank of Romania)

5 Inflation and unemployment 9, 6,6 4,9 7,9 5,6 6, 5,8 3,3 4,0 [VALUE] ,6 -,5 Source: National Institute of Statistics Inflation rate [%] Target *207: 2.5 (Source: *National Bank of Romania) Unemployment rate [%] 7,2 7,3 6,4 5,6 6,5 7,0 7,2 6,8 7, 6,8 6,8 5,9 Forecast *207: 5.9 (Source: *National Commission for Prognosis) Source: National Institute of Statistics

6 Minimum Wage in EU Minimum Monthly Gross Wage in EU January 207 (EUR) Source: EUROSTAT *Starting February st 207 Government program target 2020: 450 EUR/month

7 Talent Pool University graduates by subject of degree [205] Health and social care % Agriculture, forestry, fishery and veterinary science 4% Engineering, processing and construction 7% 23% Information and communication technologies (ICTs) 5% Services 5% 28% Education science 4% Natural Sciences, 2 Mathematics and Statistics 80 6% Arts and humanities 9% Social sciences, journalism and information 9% Business, Management and Law 30% University students 535,000 Women in science & engineering vs EU-28 avg. 53% vs 38% 30% vs 25% Source: The current situation of gender equality in Romania Country Profile 202; NIS

8 Skilled labor force Languages studied by Romanian students [204] 97% 97% of Romanian high school students study 2 or more foreign languages while in secondary education The predominant languages are English, French, German and Spanish, yet initiatives for teaching Japanese, Nordic languages or the entire Latin language family (Spanish, Italian, French) exist University students in Romania are proficient in [% of total]: 90% 26% 7% 8% 5% Source: ABSL, NIS, Eurostat

9 Skilled labor force

10 Skilled labor force Source:Brainspotting

11 Key Figures Maximum broadband speed Hourly labor costs ranking 206 First in EU for average peak connection speeds UKR 2 One of the most competitive labor force in the CEE Gas prices ranking HU RO MD World Bank ease of doing business 4 4 th lowest gas prices 4 th lowest electricity price in Europe SRB BG 36 Ahead of Bulgaria, Croatia, Hungary, Italy, Turkey, Serbia or Greece Source: World Bank, Doing Business Report 206; Akamai Q3206; Eurostat 207

12 VALUE FOR MONEY BUCHAREST BERLIN LONDON Consumer Prices Rent Prices $00 $70 $24 $00 $84 $296 Restaurant Prices $00 $7 $250 Groceries Prices $00 $70 $294 Standard of living equivalency net salary $,975 $3,622 $5,809 Sources: Numbeo, May, 207

13 Overview of the Romanian tax system VAT 24% 20% 9% 8% /8 209 Social Security Employee Employer 6% 23% Food products: 9% Corporate & Income Tax Rate Reinvested profit tax Tax System Dividend Tax Rate 6% 0% IT&C - 0 % income tax for employees BA -4 technical specializations available Employee is hired on a software engineer/ programmer/ software analyst position Annual revenue per exempted employee must be over USD % 206 5% 207 0% 208 R&D - 0 % corporate tax for R&D companies 0 % income tax for employees Deduction of R&D eligible expenses: depreciation of R&D equipment, salaries for R&D personnel; 50% of these expenses can be deducted from the taxable income

14 Competitive Taxation Overview of the Romanian tax system VAT Social Security Employee Employer 9% 206 cut from 24% to 20% 207 cut from 20% to 9% Food products - 9% 6% 23% Corporate & Income Tax Rate Reinvested profit tax Tax System Dividend Tax Rate 6% 0 % 5% 206 cut from 6% to 5%

15 Ports and Airports ORADE A ARA D TIMISOAR A SATU MARE DROBETA TR. SEVERIN BAIA MARE CLUJ- NAPOCA SIBIU CRAIOVA TARGU MURES SUCEAVA BRASOV BUCURESTI OTOPENI IASI BACAU GIURGIU GALATI BRAIL A M.KOGALNICEANU TULCE A SULINA CONSTANT A MANGALIA 30 direct flights leading to 76 destinations in 3 countries worldwide 4 international airports and 8 major ports Constanta Port - the deepest and largest port at the Black Sea. International Fligths Ports Under construction Aircraft trafic reached 6 mill. passagers in 206, up by 20% compared to 205

16 Industrial Parks Status at regional level (September, 207) North West Region: 7 parks West Region: 6 parks South West Region: 6 parks South Region: 22 parks South East Region: 2 parks North East Region: 6 parks Center: 7 parks Bucharest: 2 parks 78 industrial parks spread across Romania - both private and public ownership Access to utilities & benefits packages according to their focus Exemption from land, building and urban planning taxes Source: Ministry of Regional Development and Public Administration

17 Industrial Parks Industrial Park Slatina Industrial Park Brașov Industrial Park Slatina

18 FDI Stock by Field of Activity at 3 December 206 Sectors EUR million % of total FDI TOTAL 70, Manufacturing 22, Construction and real estate transactions 9, Trade 8, Financial intermediation and insurance 8, Electricity, gas and water supply 6, Professional, scientific, technical and administrative activities and support services 3, IT&C 3, Mining, Agriculture, forestry and fishing, Manufacturing, financial services and trade account for approx. 57% of FDI stock existing in Romania, followed by real estate and utilities The real estate sector as well as professional, scientific and technical activities registered the highest FDI growth rates IT&C sector recorded a slight decrease with 0.5 percent. Other 2, Source: National Bank of Romania

19 Key facts for top tech oriented industries in Romania INDUSTRY SIZE KEY PLAYERS KEY PROJECTS Source: Invest Romania AEROSPACE IT&C AUTOMOTIVE EUR 400M EUR 3.6B EUR 8B Airbus Helicopters EUR 5m investment Sonaca EUR 2m investment Premium Aerotec EUR 50m investment Siemens software dev. worked on the Mars Rover Deutsche Bank EUR 40m investment LiveRail was acquired by Facebook for EUR 600m Continental EUR 26m investment in R&D center Daimler EUR 300m investment for gear boxes Ford EUR 200m investment for production of new model

20 Investment Support STATE AID Total Budget EUR.5 billion STATE AID - GD 807/ 204 Minimum EUR 0 mil. investment Construction of new buildings Renting costs for existing buildings CAPEX aimed at technical installations and tools Acquisition of intellectual property STATE AID - GD 332 / 204 Minimum 0 new jobs/ per location Salary costs registered for a 2 consecutive year period resulted as a direct consequence of the investment Salary costs are comprised of gross average annual salary plus benefits FISCAL INCENTIVES Investors that set up manufacturing locations or offices in an industrial, scientific or technological park benefit from : Exemption on land, building and urban planning tax Taxes charged for changing land destination

21 Investment Support 28 mill Eur 8 mill Eur Ploiesti West Park mill Eur Tetarom Jucu Park/ Cluj-Napoca Ploiesti West Park 5 mill Eur 6 mill Eur Tetarom Jucu Park/ Cluj-Napoca Ploiesti West Park

22 Intensity State Aid North-West 50% North-East 50% State aid intensity, according to development region: North West 50% North East 50% West 35% South-West 50% Center 50% South 50% 35% 5% South-East 50% South East 50% South 50% South West 50% West 35% Ilfov County 35% Bucharest 5% Sources: Ministry of Public Finance

23 InvestRomania In a nutshell One-stop-shop for foreign investors, assisting and advising international companies for project implementation in the country Promoting and facilitating foreign investment in Romania Main interface between foreign companies and central/local authorities Contributing to Romania s economic resilience and steady growth Bringing investment projects in Greenfield and expansions in value - added sectors Reducing economic discrepancies between regions for a more balanced country development Boosting regional development by creating new jobs and generating spillover effects in the economy

24 A significant domestic market and stable/safe country A competitive tax policy and state support for businesses Talented and skilled workforce Best quality price ratio for labor in EU High life standards, great lifestyle and rich personal experience

25 Single point of contact for foreign investors