"A4rb_speech" – – do not delete this text object! narrow 3 Why to invest in Romania? (II) 1st Romania is ranked 1st in the EU for: Growth of agricultural exports and IT services Naval vessels exports Total investment share in GDP Speed of internet connectivity Export growth rate for the past decade 2nd Romania is ranked 2nd in the EU for: Number of certified IT specialists Office space availability in metropolitan areas Wind energy potential Low labor cost Growth rate of automotive industry in the past decade 3rd Romania is ranked 3rd in the EU for: Oil reserves (with 600 million barrels) Export growth rate of R&D services Energy independence Romania is lagging in EU for: Waste recycling Highway buildup Size of mutual fund industry GDP and Insurance premium per capita Healthcare services (doctor salaries, fertility, life expectancy) Source: Ernst&Young
"A4rb_speech" do not delete this text object! narrow February
2016 Doing Business in Romania "A4rb_speech" do not delete this
text object! narrow 2 Economic & political stability EU
membership: gateway to a 500 million consumers market Second
largest country in CEE and the largest in SEE offering significant
market potential in terms of size (the 9th in EU28) and population
(the 7th in EU28), Geo-strategic location, at the crossroads of
three great markets: the European Union, the CIS states and the
Middle East Why to invest in Romania? (I) "A4rb_speech" do not
delete this text object! narrow 3 Why to invest in Romania? (II)
1st Romania is ranked 1st in the EU for: Growth of agricultural
exports and IT services Naval vessels exports Total investment
share in GDP Speed of internet connectivity Export growth rate for
the past decade 2nd Romania is ranked 2nd in the EU for: Number of
certified IT specialists Office space availability in metropolitan
areas Wind energy potential Low labor cost Growth rate of
automotive industry in the past decade 3rd Romania is ranked 3rd in
the EU for: Oil reserves (with 600 million barrels) Export growth
rate of R&D services Energy independence Romania is lagging in
EU for: Waste recycling Highway buildup Size of mutual fund
industry GDP and Insurance premium per capita Healthcare services
(doctor salaries, fertility, life expectancy) Source:
Ernst&Young "A4rb_speech" do not delete this text object!
narrow 4 Why to invest in Romania (III)- Potential for growth 2013:
3.4% (the highest in CEE and 2nd in EU) 2014: 2.8% (the 4 th growth
in CEE and 9 th in EU) 2015: 3.6% (estimated) 2016 (4.1%), 2017
(4.2%) Forecasts * GDP Growth Rate Source: National Institut of
Statistics, Eurostat, National Commission for Prognosis, National
Bank of Serbia Last update: January 2016 "A4rb_speech" do not
delete this text object! narrow 5 Why now? What is new? (I) Lowest
taxes ever in the past 15 years Last update: December 2015 VAT rate
cut from 24% to 20% Romania's corporate tax rate for 2015 is 16%
(stable) The dividend tax rate is 5% on dividends paid to Romanian
companies and to non-resident companies Total tax rate in RO stands
at 42%, in contrast to 122% in the CZ, 95% in HU and 58% in POL
"A4rb_speech" do not delete this text object! narrow 6 Why now?
What is new? (II) Potential for growth 2013: 3.4% (the highest in
CEE and 2nd in EU) 2014: 2,8% (the 4 th growth in CEE and 9 th in
EU) GDP Growth Rate * compared with the same quarter 2014 Source:
National Institut of Statistics, Eurostat 3,4% 2,8%3,6% Q3 * growth
in Q3, 2015 the 3 nd highest GDP growth in CEE after Czech Republic
3,6% Last update: January ,4% Best performe country in EU28 against
the previous quarter "A4rb_speech" do not delete this text object!
narrow 7 Decreased corruption: Street effect- the people is
pressing for a more responsible government and this is causing
politicians to rethink how they approach things Unfortunately,
Romania is still 58th in the 2015 Corruption Perceptions Index
(Transparency International), with 46 points on a 0-to-100 scale,
below the European Union average of Why now? What is new? (III)
Source: National Institute for Statistic World bank doing business
2015 Global Competitiveness Report World Economic Forum
"A4rb_speech" do not delete this text object! narrow 8 Why now?
What is new? (IV) Unemployment in Europe Unemployment rates (age:
from 15 to 74 years) Source: Eurostat "A4rb_speech" do not delete
this text object! narrow 9 Why now? What is new? (V) Human Capital
20 million people / young population (almost 50% under 40 years
old) 103 universities, 590 faculties Over 400,000 Romanian students
Over 100,000 university graduates /year Availability of technical
engineers (15% of the graduates has engineering degrees) High
industrial experience Foreign language skills (English, French,
German, Spanish, Italian) English language studied by 90% of
students Source: National Institut of Statistics "A4rb_speech" do
not delete this text object! narrow 10 Why now? What is new? (VI)
Better communication between Government and business environment
CRD (Coalition for Romania's development, a business lobby group
which includes all relevant business groups for the first time in
25 years, including that of foreign investors) was created and has
in 2015 started pushing for greater investment in infrastructure
"A4rb_speech" do not delete this text object! narrow 11 Why now?
What is new? (VII) Competitive Labour Cost Romania will maintain
its competitive advantage related to labor cost. The employers
enjoy a flexible labor code. Romania has the second-lowest wage in
EU. Source: Vienna Institute for International Economic Studies
Gross average monthly wages (EUR) Last update: January2016
"A4rb_speech" do not delete this text object! narrow 12 Why now?
What is new? (VIII) Competitive Taxation 16% corporate tax - one of
the lowest in EU28 9% VAT for tourism and food products Starting
with 1 st of January 2016 standard VAT rate decreased to 20% from
24% and dividend tax rate to 5% from 16% Romania is committed to
reduce standard VAT rate from 20% to 19% in 2017 and corporate
& income tax from 16% to 14% in 2019 Source: KPMG Last update:
January 2016 "A4rb_speech" do not delete this text object! narrow
13 Source: Ministry of Transportation and Infrastructure I heard a
lot of terrible things about Romania. What is true and what is not?
political instability What is, actually, the reality: - (elections
in 2016) - previous government lasted for about 3 years -
government resigned after 2 days of demonstrations - a new
government was named in about 2 weeks current Prime Minister is a
former UE commissioner fiscal legislation instability
-infrastructure investment is still moving slowly, but... special
infrastructure tax was already lowered and will be removed starting
Jan. 1, certain requirements for VAT registration were changed but
it was implemented as a way to diminish VAT fraud - the Minister of
Finance is a former EU specialist "A4rb_speech" do not delete this
text object! narrow 14 What kind of returns should I expect? What
to invest into in Romania? RO, the 8th largest component of the
MSCI Frontier Markets Index we believe the country is under-priced
on the equity markets currency exchange rate stability at 38% in
terms of debt/GDP, RO looks much better than POL (57%), HR (67%) or
HU (79%) Central Bank independence has been a cornerstone of the
economy for the past 25 years recent investments by foreign
investors included banks, NPL (non- performing loans), large
industrial factories, information technology, real estate a variety
of private companies stand ready for foreign investments anywhere
between 1 and 100 million euro Source: National Institut of
Statistics "A4rb_speech" do not delete this text object! narrow 15
#1 challenge for you: IPA Romania #2 challenge for you: Investment
Fair in Bucharest
