Romania has become a very popular FDI destination, reflecting large-scale privatizations, the country’s macroeconomic stabilization and the benefits of European Union membership.
However, the amount of Foreign Direct Investment has declined steadily since 2008 as a result of both external and internal economic pressures, in the context of overall economic decline in Central and Eastern Europe, shows a KPMG study.Various studies place Romania among the top 5 European destinations for all types of global services activities. The provision of global services continues to be an attractive business proposition for companies investing in Romania, either in the form of setting-up and expanding shared service centers, or by outsourcing particular activities to local BPO entities. People skills, their availability, their language proficiency, the cultural compatibility and the business environment are backed up by financial attractiveness of Romania. These three characteristics are decisive when choosing a locationThe top three countries of origin in terms of Foreign Direct Investment are: the Netherlands, Austria and Germany.Many German investors are taking a fresh look at Romania with a clear focus on industries such as automotive and IT. Before the crisis, German investors came to Romania for a few main reasons: relatively low production costs, good language skills and its geographical location which made it an attractive place for production. The large size of the country and the high pent-up demand of its people promised a domestic market with high potential for growth.
Source: iliaspapageorgiadis.ro