FDI could drop by 2bn euros, but still remain significant

Foreign direct investment (FDI) will amount to at least 7 billion euros this year, down by approximately 2 billion euros against last year’s figures, according to Florin Vasilache, general secretary with ARIS (Romanian Agency for Foreign Investment), as quoted by the news agency Mediafax.
This year investments will not reach the same value as last year, as the big privatisations, with significant value, have already been completed. ARIS initially estimated the direct investment would amount to at least 6.5 billion euros last year, but later changed its estimate to a figure of over 8 billion euros. However, the results exceeded both estimates.
As in previous years, most of the investments made this year will be in the car parts industry. “This year we do not expect to witness spectacular changes in the fields that attract the bulk of foreign direct investment. The car parts industry, the alternative energy field (biodiesel, and wind energy), the construction, real estate, IT and communications fields (Nokia’s investment, for instance) as well as the infrastructure will continue to attract the biggest number of investments,” stated Sorin Vasilescu, the chairman of ARIS.
Two major companies have expressed interest in operating investments in the car parts industry. Renault will open a design and development centre near Targoviste, while the Japanese car parts manufacturer, Calsonic Kansei, wants to invest around 100 million euros in a car parts factory within the Ploiesti Industrial Park.
Continuing the trend seen over the recent years, this year investors will focus on the Western region of the country, because of the logistical advantages offered by this area, as well the available workforce, which is more qualified in hi-tech fields.
“Most of those who invest in the Western region of the country operate greenfield investments and also intend to export,” Vasilescu added.