FDI at a New High in Romania

Foreign direct investments in Romania will reach an all time high this year with an estimated 2 billion euros, which is 25% higher than last year. According to figures released by the Romanian National Bank, 1.4 billion euros were invested during the first eight months of 2004, which is 43% higher than the same time last year.

Foreign investors seem to target industries that offer prospects for accelerated growth, like the automobile industry, furniture making, IT, real-estate and services. The Romanian Agency for Foreign Investment monitors some 45 projects, with an aggregated 2.7 billion euros in planned investment. The projects are at various stages of fulfillment, with some of them still waiting decision regarding the location, while others are close to being concluded.
"We estimate that some 10,800 new jobs will be created by the end of this year due to finalizing the pending projects," said Alexandru Popa, president of the Agency. Most investments monitored by the Agency are greenfield-type, and benefited from the tailor-made legislative incentives and location in various industrial parks around the country.
The Agency’s portfolio of monitored projects acquired in September and October the 120 million euros investment of Montupet, France, and the 25 million euros investment of Coficab, Tunisia - both of them in the automobile industry.
During the same past two months the Italian company Pirelli said will start a partnership with Continental on the new industrial facility called Cord - Romania. This time the German company Tangelmann said will launch 120 supermarkets in all major cities in Romania, on a 200 million euros investment.