Trade and investment opportunities in Romania - the country's economic profile by Andreea Muntean, Ph.D. Associate Professor at '1 Decembrie 1918' University Alba Iulia
3. Romania
at a
glance
Capital
Bucureşti (Bucharest)
Official name
România (Romania)
Location
(SE) Central Europe
Time zone
GMT + 2
Area
237 502 km2
Population
19 mil. +
Ethnic groups
89% Romanians
7.5% Hungarian
1.9% Gipsy
1.6% Other
Religions
87% Christian Orthodox
5% Roman Catholic
5% Protestant
Jewish, Other
Currency
Romanian Leu (RON)
1 RON = 1.58006 CNYClimate
Temperate with 4 seasons
Temperatures between -38°-+44°C
6. Carpathian
Mountains
Mun ii Carpa iț ț
Their name comes from an ancient
tribe of 'Daci' called 'carpi', which
means 'stone'. The highest peak in
Romania has 2,544 m – 'Vârful
Moldoveanu'.
7. Black
Sea
Marea Neagră
The sea has a very low salinity
level and just one island: Snake
Island. Its original name means
'the hospitable sea'.
8. RECENT
HISTORY
1945: the Yalta Agreement
(post WWII arrangements)
makes Romania part of the
Soviet system
1948-1989: grandiose
communist development
projects
1980s: people were submitted
to a rigorous austerity program
1989, December: communist
regimes falling in Europe ->
Romanians overthrow
Ceause cu’s 25 yearsș
dictatorial regime; proud
democracy ever since :)
The Palace of the Parliament
second biggest building in the
world (after the Pentagon)
Romania is a semi-presidential
republic; the current President
of Romania is Klaus Iohannis.
11. Nadia
Comăneci
One of the best known gymnasts of
the world, winner of five Olympic
gold medals.
The first gymnast to be awarded
a perfect score of 10 in an Olympic
gymnastic event.
12. Henri
Coandă
Inventor and aerodynamics
pioneer, the builder of world's
first jet powered aircraft, the
Coanda-1910.
He discovered and gave his
name to the Coandă effect -
tendency of a fluid jet to stay
attached to a convex surface.
13. Vlad
epeȚ ș
Vlad III, Prince of
Wallachia (1431–1476)
Known as Vlad the
Impeller was the basis
of the fictional character
Dracula in Bram Stoker’s
famous novel.
Bran Castle
15. Easter
The Easter is the celebration of newly reborn life.
The most famous tradition are the Easter Eggs –
colored eggs given to the children on the day.
16. Măr i orț ș
Mar i or is a talisman (red and whiteț ș
string with a decoration attached)
offered by people on 1st
of March.
18. National
Costumes
Romania has 7
main folkloric
areas, each
with specific
clothing
traditions. The
most used
colours are
white, black,
red and gold.
19. National
Specific
Food
Maize
corn flour boiled in water, with
salt and sometimes with
buttermilk, butter, cheese,
according to the taste and needs.
Sarmale
Minced meat rolls with rice in
cabbage or vine leaves.
Sour Soup
Beef soup with a sour taste
from marinated tarragon,
usually served as a
treatment for hangover.
Papana iș
Cheese pancakes
served with berry
gem and double
cream.
Sausages
Home made from pork meat, consumed
fresh, dried or smoked.
21. Dacia
A Continuing Success Story
1968: Dacia 1100 was born and the first model hit the road on 20 August, embarking on a
true national success story
1999: Renault became the majority stockholder of the Colibasi Dacia factory, preceding a
great future for the Romanian car producer
2004: Logan is launched - the first brand new model of the Dacia-Renault partnership
2015: 10.1% sales rise (first half of the year), up to 290,024 vehicles; 5.5% sales increase
in Europe, sales increased by 5.5 percent (first half of the year), up to 205,436 vehicles;
5.3% market share in France (fifth place on the passenger vehicle market and fourth place
for retail customer sales).
22. Murfatlar
Legendary Wine
Located in the sunny area of the South
East, in Dobrogea, the actual vineyard from
Murfatlar dates back in 1907 when the first
grape assortments like Chardonnay, Pinot
Gris, Pinot Noir, Muscat Ottonel and Folle
Blanche have been planted.
Murfatlar state enterprise was set up in
1955 and soon became the leader of the
Romanian wine producers. The brand is
now the biggest vineyard in Romania laid
on 3,000 hectares and belongs to a single
producer.
2013: RON 130 mil RON turnover: 160
medals obtained at the international wine
competitions; 10,000 tourists have visited
Murfatlar wine cellar.
23. Jidvei
Famous vineyard
The vineyard is
expanding over 2,000
hectares in the
Tarnaveni rivers area
(just several kilometers
from Alba Iulia and 150
kilometers from the
Dacian fortress
Sarmizegetusa).
Jidvei portfolio includes
over 30 products: still
wines, champers and
vinars.
10.5 million bottles sold
annually (8 million litres)
24. Eugenia
The Cocoa Biscuit Turn to Noun
Romanian product par excellence,
Eugenia cocoa biscuit is not only a
brand itself but also a noun in the
dictionary, thus joining other similar
internationally renowned brands like
Xerox or Adidas which were so
powerful that they gave their name to
the product itself.
Born in early 60’s, Eugenia touched a
wide consumer audience, ranging from
adults to pupils, as the tasty cookies
represented the perfect time out snack
available for everyone during the
breaks.
25. Gerovital
Pioneers of cosmetic and
therapeutic medicine
Farmec is a symbol of Romanian
cosmetics products and still ranks first
on this market after 120 years of
existence.
1945: 5 products in the portfolio
2013:450 products in the portfolio
Farmec was a pioneer of using royal
jelly as basic component of the
emulsions, as well as of producing
special anti wrinkle formulas rejoined
in Gerovital range. The well-known
biologist and physician Ana Aslan,
considered „the parent of geriatrics
and gerontology” discovered the anti-
aging effects of procaine, based on
which she developed the drugs
Gerovital H3 and Aslavital.
27. Agribusiness
Sector
Romania is one of the most important
agricultural crops producers in Europe.
CROP
PRODUCTION
from 3.9 mil
agricultural
holdings
3.4% CEREALS FOR
GRAINS
15.1% OILSEED CROPS
31.9% SUGAR BEET
7.0% POTATOE
S
* data reflects the increase in production in 2014, compared with 2013
28. Agribusiness
Sector
Equipment & Machinery
The offer of agricultural machinery in Romania is
diversified and the market is dominated by imported
brands, such as: New Holland, John Deere, Claas,
Fendt, Kuhn, Massey Ferguson, Geringhoff, Case,
Horsch, JCB, Hardi, Vatra, Pottinger, Hydrac, Fella,
Lemken, Knoche, Rauch etc.
TRACTORS PLOUGHS SEEDERS
PLANTERS
TRANSPLANTERS
445MIL € 11MIL € 26MIL €
IMPORT
VALUE
MARKET
= 27%
increase
= 24%
increase
= 3%
increase
29. Agriculture
Facts
China has become
the second largest
export market for
Romanian wines.
Popular wine varieties:
Fetească & Royal
Fetească.
SHARE
IN GDP
4,170
MIL RON
6,690
MIL RON
25.4%
EMPLOYED
POPULATION IN
AGRICULTURE
2014
first position in the
European Union
40%
NEWLY
REGISTERED
COMPANIES
of the growing
revenues are
generated by
COMPANIES
WITHIN THE FIELD
have reported
falling revenues
ONLY 2%
3 2 1
average
productivity in
agriculture is three
times lower in
Romania than the
average one
recorded in the EU
share of
investments in
fixed assets and
land is two times
higher than the
average at regional
level
30. 750 COMPANIES
production, processing
and preserving of meat
and meat products
20 COMPANIES
fish processing
500 COMPANIES
milk processing and
dairy products
9.4% CATTLE
14.2% PIGS
6.4% POULTRY
SLAUGHTERED
ANIMALS
DAIRY PRODUCTS
PRODUCTION
13.4% CREAM
8.5% YOGHURT
acidified milk
2% DRINKING
MILK
1.7% BUTTE
R
7% CHEESE
PRODUCT
S
Food &
Beverages
31. Food &
Beverages
3,855MIL €
IMPORT, 2015
food beverages
tobacco
CONSUMPTION
food
beverages
tobacco
24.2%
AVERAGE
INCREASE
PER
QUARTER
* data reflects the first 3 quarters of 2015
32. Automotive
Romania is an attractive market for the
foreign manufacturers of auto
components: Michelin, Continental,
Autoliv, Takata, Schaeffler, Johnson
Controls, Pirelli, Delphi, TRW
Automotive, Leoni, Yazaki, Draxlmaier
IMPORT
PRODUCTION
& ASSEMBLY
* data reflects the first 3 quarters of 2015
298,355 units 61,888 units
33. Furniture
PRODUCTION
1.48% SHARE IN GDP
STRONG POINTS
availability of resources
low labour costs
high level of technical qualifications
PRODUCTION
2,227.5MIL €
= 10%
increase
IMPORT
440.6MIL €
= 12.2%
increase
SALE
783.5MIL €
= 5.8%
increase
34. Toys
IMPORT
The market is characterised by the presence of big
international brands (such as Lego, Chicco, Disney,
Hasbro etc.), products of Asian manufacture and a
few domestically manufactured brands (such as D-
Toys, Burak, Noriel etc.).
90%
250MIL €
OF TOYS & GAMES
SOLD ARE IMPORTED
VALUE MARKET IN 2014
35. IT&C PRODUCTION
STRONG POINTS
skilled specialists
advanced technology standards
well-developed education system focused on IT
technologies and software applications
active presence of big international brands (such as
Oracle, IBM, Microsoft or Intel)
DOMESTIC
MARKET
11%
INCREASE IN
VOLUME OF
ACTIVITY IN THE
IT&C SECTOR
6% SHARE IN GDP
36. Private
Medical
Services
Romania is a fast growing destination for
the dental services tourism, the main
factors being the low prices and the high
quality of the services provided.
161 HOSPITALS
280 POLYCLINICS
270 CENTRES
20%
increase
37. The major modern retail supermarket and
hypermarket chains operating in Romania are:
Mega Image, Profi, Lidl, Carrefour, Kaufland, Billa,
Auchan, Metro, Selgros.
Chains such as Mega Image and Billa also
distribute gourmet type of products and private
labels focusing on Romanian traditional foods.
12.1%
RETAIL TRADE
GROWTH
the highest
growth in EU
5.4%
PRIVATE
CONSUMPTION
facilitated by the VAT reduction
for foods and non-alcoholic
beverages, the rising wages &
the lending revival of RON
Retail &
Domestic
Consumption