Foreign investment to reach 6.2bn euros

The foreign direct investment Romania will attract this year is set to amount to 6-6.2bn euros, Ana-Maria Cristina, the chairperson of the Romanian Agency for Foreign Investments (ARIS) told ZIARUL FINANCIAR. This will be the highest value of foreign investment for Romania in sixteen years.

“I believe this is a realistic figure considering that we estimate that investments in 2005 were of 4-4.2bn euros, and that was despite the absence of major privatisations,” Cristina said. She added the privatisation of Banca Comerciala Romana would have a major contribution this year, with the state getting 2.2bn euros out of the deal.

“We expect an increase in greenfield investments, with our estimates based on both the fact that ARIS” portfolio comprises many investment intents, as well as on the improvement of the business environment, mainly because of the tax reform and of the progress made in terms of justice reform,” the ARIS chairperson explained.

Furthermore, Romania having less than one year left before its accession to the European Union is a strong argument for foreign companies to come to invest here.

“There are many companies from Asia, namely from Japan and China, which want to turn Romania into a bridgehead for their entry onto the European market. European companies at the same time keep on relocating their production here given that the local regulations are similar to the European ones, but the operating costs are and will continue to be low,” Cristina feels. Although the Asians display a good deal of interest in Romania, most investments this year will be made by European companies, the agency official added.

“The sector that will attract the bulk of foreign investment will be the automotive component industry, just as in 2005, running neck and neck with the construction supplies industry. Next in line will be the communications and information technology sector,” the ARIS chairperson specified.

Foreign investment

* Estimate for 2005 revised upwards to 4-4.2bn euros from 3 – 3.8bn euros, as initial estimates were attained in ten months (3.5bn euros)

* Estimate for 2005 was lower than in 2004, when foreign direct investment stood at 5.2bn euros, according to NBR data

* Top investment sectors in 2006: automotive components and construction supplies industries.