Doing Business in Romania
A marketplace of 22 million, 37 million acres of arable land, a vibrant oil and gas industry, breathtaking landscapes, an expanding economy, a well-educated workforce with more than 50,000 specialists in information technology, access to the Black Sea and Asia. These features of Romania have attracted U.S. investors in banking, energy,
biotechnology, manufacturing, electronic components, cable operation, consumer products, telecommunications and film production, among others. They have discovered that American management and capital works profitably in Romania. U.S. exports in Romanian are growing as well, fueled by Romania’s economic expansion and new reductions in trade barriers.
Romania offers significant opportunities to American businesses with products, services, or technologies that either meet growing private demand or contribute to the country’s development priorities. The country’s entry into the European Union in January 2007 was preceded by a series of government reforms in order to satisfy the conditions of EU membership. Now the requirements of membership – including EU directives – make up one of the driving forces in Romania’s program of reform, modernization and investment in infrastructure. More significantly, these directives are accompanied by funding from the EU in the form of Structural Adjustment Funds and other programs to enable the new members to align their economies with the rest of the EU.
At the same time, Romania’s membership in NATO has supported demand for defense and security products, and American vendors are well-regarded and active in this market. Romania’s defense and security relationship with the United States is strong and productive; the two countries’ militaries serve alongside each other in Iraq and Afghanistan.
Private demand has been strong and provided a market for a wide variety of products, and Romanian businesses regularly express interest in U.S. suppliers as alternatives to European competitors. The effects of the slowing world
economy arrived late to Romania, but are now beginning to announce themselves in the form of rising unemployment, a drop in demand from Romania’s export markets, and a growing budget deficit. Romania has not yet entered the "Eurozone," but has set 2014 as the target year to adopt the euro. In the meantime, many Romanian companies with debts denominated in Euros but income in the local currency, the leu, are exposed to exchange rates losses as the value of the leu has fallen against both the dollar and euro. As a result, both consumer and corporate purchasing power have fallen, and investment plans are being reconsidered.
Romania’s rate of economic growth in 2008 stood at an impressive 7.1%, but has decelerated and is now expected to remain at or below 1% in the year ahead. Against this backdrop, CS Romania advises U.S. businesses to investigate and pursue opportunities – both public and private sector -- in which the funding sources and prospects for payment are reliable. The public sector plays a major role as purchaser and procurer of products and services, and projects in areas such as ICT, infrastructure, water and wastewater treatment, energy, and agriculture are supported by funds from external sources such as the EU or development banks such as the European Bank for Reconstruction and Development (EBRD) or World Bank.
Recognize these names?
Your competitors are in Romania or will be soon…
3M, AIG, Alcoa, Amway, Avon, Bunge, Cargill, Cisco, Citibank, Coca-Cola, Colgate Palmolive, Ernest & Young, Delphi, General Electric, HBO, Honeywell Garret, Howard Johnson’s, HP, IBM, Johnson Controls, Kodak, Kraft, Lockheed Martin, McDonald’s, Microsoft, Motorola, New Century Holdings, Oracle, Philip Morris, Proctor and Gamble, Qualcomm, RAEF, Solectron, Timken, UPS, Visa, Washington Group, Xerox...to name a few!
Can your company afford to miss out on this important opportunity?
Romanian Country Commercial Guide
The Country Commercial Guide (CCG) presents a comprehensive look at Romania's commercial environment using economic, political, and market analysis. The CCGs were established by recommendation of the Trade Promotion Coordinating Committee (TPCC), a multi agency task force, to consolidate various reporting documents prepared for the U.S. business community. Country Commercial Guides are prepared annually at American Embassies through the combined efforts of several U.S. government agencies.
Romania Country Commercial Guide 2013