|Return||Ernst & Young: Romania tops attractiveness table for investors in SEE
Nine O’Clock April 18, 2008
by Monica Apostol
Romania is the most attractive South-East European country for investors, according to a study authored by Ernst&Young in January 2008, Camelei Horlaci, country managing partner within Ernst&Young Romania, told on Thursday a press conference. The research has monitored the foreign direct investment projects announced in Europe and registered in the Ernst&Young European Investment Monitor database. The results of the study have been presented by Osman Dincbas, general director for Turkey within Ernst&Young, and by Fabrice Reynauld, director for France within Ernst&Young, Thus, our country maintains the top rank it had won last year despite dropping from 58 per cent to 51 per cent. Romania tops the table when it comes to appeal as well as number of projects that have included foreign direct investments in the 2006-2007 period. Thus, the Ernst&Young specialists have given Romania a 52 per cent score when it comes to its image. ‘The emerging regional markets continue to attract foreign direct investments because they offer low labour force costs, labour legislation flexibility and an encouraging potential for productivity growth. Forty-three per cent of the respondents have expressed their intention to operate new investments or to expand the already existing investments in the region, while 52 per cent of them have named Romania as their first option’ Camelia Horlaci has stated.
In the 2006-2007 period 149 projects that have included foreign direct investments have been started in our country. Turkey ranks second in the attractiveness table after significantly improving its performance and registering a 50 per cent score. Bulgaria has climbed a position compared to its rank in the 2006 table and has ranked 3rd with a score of 40 per cent.
Romania should take into account the foreign investors’ suggestions on improving the transport, logistics and communications infrastructure in order to maintain its lead among the destinations preferred by investors. ‘Romania should take into account the foreign investors’ feedbacks, especially when it comes to negative aspects. We also have to be careful when it comes to the labour force cost, a very important issue that the investors consider when drawing up investment plans’ Horlaci added.
The labor strike within Dacia, a plant owned by the French Renault Group, has represented a significant signal for the business community in France, Fabrice Reynaud, senior manager of the Paris branch of the Ernst&Young consultancy and audit company, has stated on Thursday. ‘As perceived from France, the labour strike within Dacia has represented a strong signal for the business community. The same happened in past years, because of other projects’ Reynaud has stated, answering a question about the degree in which the labour strike within Dacia damages Romania’s image as perceived by foreign investors. The real-estate crisis and the infrastructure, which is less developed than in the Czech Republic for example, have been some of the reasons for which Romania has been avoided by investors, Reynaud has stated.
Romania has ranked 1st in more than half of the evaluated criteria. It did so when it comes to labour force costs (for which it has been appreciated by 26 per cent of respondents), to training (19 per cent), to the level of taxes (14 per cent), to the treatment of foreign executives or company headquarters (13 per cent), to labour legislation flexibility (18 per cent), to productivity growth potential (25 per cent), to the cost of plots of land, location availability and relevant legislation (19 per cent) and to specific language, culture and value capabilities (19 per cent). In the opinion of foreign investors, the communication infrastructure (12 per cent), the transport and logistic infrastructure (8 per cent), the social atmosphere (6 per cent) and the quality of life (5 per cent) are the sectors that should be improved.
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