Romanian Investment Environment 2005

Romania ranked 35th in 104 countries within a classification in terms of performance index for foreign direct investments (FDI) released during the Conference of the United Nations for Trade and Development (UNCTAD).

The introduction of the flat taxation rate of 16 percent was the main trigger that pushed Romania 22 places up in the top. Also, in terms of tax level, the 16 percent tax Romania is placing Romania on third place worldwide, just after Letonia and Bulgaria.

The record level of the foreign capital that has considered Romania as an appealing destination in 2005, up to $5.1 billion, has been the outcome of privatisation undertaken in the oil company Petrom, as well as several important greenfield projects and the expansion of already existing projects, particularly within the automotive and services industries. Romania has attracted 168 greenfield projects this year as against 116 in 2004 and 112 in 2003.

Within South-Eastern Europe, Romania and Bulgaria have been the main destinations for foreign direct investments, accounting for 70 percent of the foreign capital invested in the region in 2005. However, broading the scale, with this jump, Romania is still behind Bulgaria (placed 12th), Slovakia (placed 25th), Moldova (placed 26) or Czech Republic (placed 33rd) but ahead Hungary (placed 46th), Slovenia (placed 60th) or Poland (placed 75th).

Read full UNCTAD World Investment Report 2005.

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