www.business-review.eu Business Review | July-August 2022
20 FDI
Romania’s FDI position gains prominence despite regional challenges Romania continued to attract foreign investments to the tune of EUR 3.1 billion in the first four months of this year versus the same period of last year, but the ongoing war in Ukraine and its risk of escalation could impact the local economy’s FDI position. The country is building on the significant performance of last year, when the volume of foreign investment more than doubled to reach EUR 7.2 billion. By Ovidiu Posirca choices for neither American nor Western European investors, due to its potential exposure to the Ukraine conflict,” Tata tells BR. He adds that “safer” alternatives in similar cost brackets within the EU include Portugal, Greece, Croatia or Bulgaria. Countries in the Western Balkans can also meet the demand, although they are not EU members yet. For telemigration, Romania remains a strong hub with ICT-enabled and BPO-based sectors. As a member of the European Union (EU) and NATO, Romania's profile as a safe destination for foreign investors has consolidated over the past decades, but it might still not be enough in the competition for capital. Ionut Simion, president of AmCham Romania, suggested that the country’s objectives should be to join the Organisation for Economic Co-operation and Development Romania could enhance its supply chain routes to attract more investment
(OECD) and use the EUR 30 billion available through the National Recovery and
here’s still a hot war taking place near
T
Ionut Tata, the CEO of the Iceberg Plus
Romania’s border, and this could trig-
consultancy, suggests that long-term FDI
2022, but there is no deadline for the comple-
ger the postponement of some invest-
strategies will be very much divided between
tion of the accession process. Meanwhile,
ment decisions. Companies are still recover-
alternate pathways including near-shoring,
PNRR funds could help Romania improve
ing from the pandemic crisis and they are
friend-shoring, and telemigration.
its renewable energy capacities and ac-
now facing a different set of risks stemming from the geopolitical context. “Companies want to invest in Romania;
Resilience Plan (PNRR). Romania kicked off
“Some companies will choose to nearshore capacities that they would previously operate
negotiations for OECD membership in early
celerate its digital transformation and investments in education. According to Ionut Sas, first vice president of AmCham
half of respondents say that their planned
overseas, gambling on the
investments for this year are similar to last
potential of automation
year’s levels, and 40 percent of respondents
and AI to reduce labour
could enhance its supply
say they plan to invest larger amounts com-
expenditures and re-
chain routes to attract
pared to the previous period,” says Cristian
main competitive from
Secosan, president of the Foreign Investors’
a cost perspective. Oth-
Council (FIC), quoting the results of a busi-
ers will go on the friend
ness sentiment index published at the end of
shoring path, but Romania
March.
might not be among the first
Romania, the country
more investment. In May-June, AmCham conducted a survey among 168 of its member companies which showed that
