Romania Your-business-partner 2012 Preview2

8/12/2019 Romania Your-business-partner 2012 Preview2

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ROMANIAY O U R B U S I N E S S P A R T N E R F O R 2 0 1 2


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Romania Your Business Partner for 2012 CreditsMerry Cemetery, Spna


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ROMANIA

Your partner for global business

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UNDERSTANDING BUSINESS

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ROMANIA WORTH TALKING ABOUT,

A SOLID PARTNER

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REFORMING FOR THE FUTURE/04

ROMANIA'S INVESTMENT POLICY

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FDI AT A GLANCE

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ROMANIA TRADE POLICY

A common European approach

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FISCAL CONSOLIDATION &

TAXATION

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WORKFORCE

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DRIVING INNOVATION &

PRODUCTIVITY

A path to Europe 2020 and beyond

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INFRASTRUCTURE

Building the roads for success

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ROMANIA'S GLOBAL RATING

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LEADING SECTORS

Engineering for the future

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/01 AUTOMOTIVES

Delivering performance for world class business/02 IT&C

The IT solutions for global business

/03 GREEN ENERGY

Reshaping for a better tomorrow

/04 OIL & GAS INDUSTRY

Turning black gold into profit

/05 PHARMACEUTICAL INDUSTRY

Our contribution to a healthier world

/06 TELECOM SECTOR

/07 CREATIVE INDUSTRIES

Next pro within the highly competitive world of global business

/08 FOOD & BEVERAGES

Excellence in quality

/09 TOURISM

Explore the Carpathian Garden/10 AERONAUTICS

Tradition in empowering innovation

/11 SHIPYARDS

A safe navigation

/12 R&D

A passion to learn and perform

ROMANIA IN A NUTSHELL

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Table of Contents 02 03


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Romania Your Business Partner for 2012

GREAT MARKET POTENTIAL

The largest market in South Eastern Europe; The 2ndlargest market in Central and Eastern Europe; One of the biggest domestic markets in the European Union(the 9thin EU in terms of size and 7 thlargest market among the

EU Member States whose stable population exceeds 19 million

inhabitants); Access to the Black Sea region one of the fastest growingand one of the largest economic areas outside Asia (300 millionconsumers).

STRATEGIC LOCATION

At the crossroads of three major markets: the European Union,the Community of Independent States and the Middle East; Crossed by three important pan European corridors: no. 4(links Europe from West to East), no. 9 (from North to South)

and no. 7 (inland water transportation on the Danube river).

ROMANIAYour partner for global business

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EU membership Market gateway to one of the major single markets worldwide(access to approximately 500 million consumers).

Extensive maritime and river navigation facilities 1/3 of the Danube river; Over 200 km of the Black Sea shore; Largest and deepest port at the Black Sea Constana Harbour. NATO membership stability factor in the area Member of the UN and other international organizations, like:IMF, WB, OSCE, WTO As EU Member State, Romania has/enjoys free trade relationswith an important number of countries or groups of countries,

including EFTA, CEFTA and Mediteranean countries; other free

trade agreements are currently under negotiation by the EU


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Biggest GDP in South Eastern Europe; South Eastern Europe regional leader for attracting FDI, includingGreenfield investment projects; Ranking 1st among European countries in terms of internetconnection speed and the 2ndworldwide; 1stin the EU in terms of total investment share in GDP (24.6%); Fastest growth rate in terms of number and quality of ITspecialists in the region; One of the most important software producers in Eastern Europeand a top IT outsourcing service provider worldwide;

Resources to become the top gold producer in Europe; Supporting R&D activities Largest Renault R&D centre outside France; Scientific and technological parks for: IT&C, nanotechnology,

microelectronics, bio-technology, micro-electronics & engineering; Over 50 centres and "incubators" for technological transfers andrelated business.

Strong base for manufacturing More than 50 industrial parks all over the country; Automotive hub in the region; Sound industrial input; One of the lowest operational costs in the region; Romania fosters top international players: Renault, Ford,

Continental, Pirelli, Michelin, Bosch, Siemens, Oracle, IBM,

Ericsson, Microsoft, OMV, Saint Gobain, Procter&Gamble,

Lafarge etc.

UNDERSTANDINGBUSINESS

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Free market economy; Business hub for the rest of South Eastern Europe; Centre of clear competencies in the hightechnology basedglobal market; Top destination for relocation and outsourcing, with many certifiedspecialists in niche sectors; Financial support for business development and further growth; Friendly business climate designed to encourage entrepreneurship;

Access to Western Europe through the RhineMainDanubecanal; Significant tourism potential; Enormous reservoir of educated talent, earning kudos for quality

work from foreign and domestic managers;

Costeffective fiscal policies, encouraging entrepreneurship,corporate investments and business initiative; Low inflation rate;

Rich in natural resources, including agricultural land & significantmineral deposits.

ROMANIA WORTHTALKING ABOUT,

A SOLID PARTNER

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the actual implementation of the investment; Assistance with the selection of an optimal site/location, basedon the technical requirements of the investment project; Assistance in organizing a visit to the industrial site and withestablishing local contact meetings; Liaising with local and/or governmental institutions on behalf ofthe foreign investors; Up to date information on current legislation; Networking with potential partners; Assistance in identifying local suppliers for the investment; Host to the Romanian National Contact Point (RNCP), aimingat encouraging the observance of the OECD Guidelines forMultinational Enterprises and related information dissemination

within the business communities and others interested parties.

State aid schemes supporting investment State aid available for various investment categories and sectors: Investments between 5 and 10 million Euro & that create minimum 50 new jobs;

Investments between 10 and 20 million Euro & that create minimum 100 new jobs; Investments between 20 and 30 million Euro & that create minimum 200 new jobs; Investments over 30 million Euro & that create minimum 300 new jobs; Investments over 100 million Euro, with eligible investment costs over 50 millionEuro & that create minimum 500 new jobs;

Investments concerning activities of electric and thermal energy production andconsumption;

Investments for harnessing renewable energy resources;

Investments in industrial parks; Investments in research, development and innovation etc. Support via grants, tax exemptions, green certificates generatingincome when traded on the green certificate market; Aid intensity reaching 40% or 50% of the total eligible expenditure,on the region where the project is implemented in Bucharest

Ilfov region, or in one of the other seven development regions in

Romania;

Possibility of these aid intensity limits to increase by 20% incase of small-sized and micro enterprises and by 10% in case of

medium-sized enterprises.

ROMANIA'SINVESTMENTPOLICY

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The Romanian legislation supports foreign investments National treatment; Foreign investment allowed in all sectors of the economy; Possibility to freely manage the company with full ownership rights; Full repatriation of capital and profits; Protection against expropriation and nationalization; Access to incentives and funds provided by the EU and the

Romanian legislation.

Romania is a signatory of the OECD Declaration on InternationalInvestments and Multinational Enterprises (since 2005) Principles guiding investment Equality of treatment; Transparency; Efficient use of incentives; Confidentiality;

Eligibility criteria: sources of the financing funds.

One-stop-shop for foreign investment: the Romanian NationalContact Point (RNCP) Government's leading body under the direct coordination of thePrime Minister;

Attracting significant foreign direct investments.

Support from the Romanian Center for Trade and InvestmentPromotion Specialized assistance to foreign investors before, during & after


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3rdlargest inward FDI recipient in Central and Eastern Europe; One of the most investmentconducive countries in the region; Fitch rating agency: Romania included in the "investment grade"category;

FDI stock exceeding 53 billion Euro since the '90s; Industry 43% of the FDI bulk Manufacturing 32% Oil processing, chemicals, rubber and plastic products 7% Metallurgy 5.3% Means of transportation 4.9% Electricity, natural gas and water 7.4%

Financial intermediation and insurance 19.1%; Trade 12.4%.

FDI AT A GLANCE

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Bilateral Trade Agreements (Korea, ASEAN, India, Canada, Central America,Andean Community, Ukraine, Euromed, Mercosur, Gulf States, Libya, China);

WTO Multilateral Negotiations (Doha Development Agenda); Unilateral dimension; Standard Generalized System of Preferences (GSP), Generalized System ofPreferences+ (GSP+), Everything But Arms (EBA);

Trade Defense Instruments: anti-dumping, anti-subsidy, safeguard measures; Strengthen relations with strategic partners: USA, China, Russia,Japan, India, Brazil; Enforce EU rights, tackling barriers to trade.

Goals Create a global system for fair and open trade; Access markets for European companies, their workers andinvestors; Ensure that WTO obligations are complied with and internationaltrading rules respected; Ensure that trade represents a pillar of strength for sustainabledevelopment.

Romania International Trade 2011 at a glance Export of goods: 45 billion Euro (+28.5% & +20.5% y-o-ygrowth rate 20092011); Export structure (percentage breakdown): vehicles and transportequipment (41.2%); other manufactured goods (33.4%); raw

materials (7.2%); food, beverages & tobacco (6.4%); chemicals

(6.3%); fuel & lubricants (5.5%). Import of goods: 54.7 billion Euro (+20.4% & +16.7% y-o-ygrowth rate 20092011). Import structure (percentage breakdown): vehicles & transportequipment (34.6%); other manufactured goods (30.6%);

chemicals (13.2%); fuel & lubricants (11.3%); food, beverages

& tobacco (6.8%); raw materials (3.5%); Projected growth rate of export and import over 50% by 2015.

ROMANIA TRADEPOLICYA common European approach

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Tackling the European Common Trade Policy EU membership (as of 1stJanuary 2007) therefore subject tothe EU Common Trade Policy; Subject to the EU Customs Code and the EU regulations in thefield; WTO founding member;

Supporting strong multilateral trading system & trade liberalizationworldwide; European Commission collective negotiating body for relevantinternational traderelated measures, including with the WTO; Aiming to overcome the current economic turndown throughtrade development; Globally more than 200 Foreign Trade Agreements; EU covering more than 35% of the global trade.

EU common agenda Pursue active negotiating agenda


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TOP 10 EXPORT MARKETS

18.8% Germany 12.9% Italy 7.5% France 6.1%Turkey 5.6% Hungary 3.6%Bulgaria 3.2% Great Britain 3.1%Netherlands 2.5% Spain 2.4%Poland

TOP 10 IMPORT SUPPLIERS

17% Germany 11.4% Italy 8.7%Hungary 5.8% France 4.7% China 4.1% Kazakhstan 4% Poland 4%Austria 3.9% Russia 3.5% Turkey


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FISCALCONSOLIDATION &TAXATION

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Diminishing the fiscal burden; One of the EU highest drops in labour taxation (above 8%) since2000; Reducing the number of taxes and taxrelated tariffs from 491 in2008, to 254 at the moment.

Transfer pricing procedures according to the EU and OECDregulations;

Longterm stability due to domestic fiscal system harmonized withthe "acquis communautaire"; One of the lowest levels of EU sovereign debt as percentage of GDP(34%) against the European average (82.5%); The possibility to carry the fiscal losses further, up to 7 years; Accelerated depreciation for equipment, installations, machines; Exemptions from the payment of taxes on buildings and land appliedby local councils in Romania on the basis of state aid schemes; Fiscal incentives for R&D: additional deduction of 20% from theeligible expenses for research and development activities.

Taxation 16% flat tax; 24% VAT standard rate; 9% VAT reduced rate for medicines, books, hotel accommodation,museum and cinema tickets etc.; 5% VAT reduced rate applied to supplies of social housing;


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10 major university centres; 106 universities, 631 faculties; 125,000 university graduates per year; Young population more than 50% under 40 years old; Availability of technical engineers; Flexibility, reduced language and cultural barriers; Highly skilled workforce at competitive prices 2ndlowest in the EU; Extensive industrial experience; High percentage of technically skilled professionals.

WORKFORCE

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DRIVINGINNOVATION &PRODUCTIVITYA path to Europe 2020 and beyond

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Horizon 2013 Integrating the sustainable development principles and practices inRomania's programs and public policies; Maintaining a business environment conducive for supporting inwardFDI, technological upgrading and processes renewal; Increasing the competitiveness of the Romanian economy bypromoting innovation;

Driving Romania's research outcome among the top playersworldwide; Reducing by 8% the greenhouse gas emissions.

Horizon 2020 20% of the total energy consumption from renewable sources; 20% reduction of the greenhouse gas emissions; Accelerating the service sector development up to 60% of GDPgrowth; Relying heavily on knowledge management.

Horizon 2030 Reaching the average level of the EU countries with regard to thesustainable development indicators; Extensive use of clean technologies for power production and heating;

Romanian society and economy based on knowledge and creativeindustries.


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Main priority of the Executive; High potential for growth; Sea port infrastructure development for becoming the EUEastern Sea Gate; Bypassing the congested cities through a national program ofring roads; Enhanced legal framework for improving access to PPP /concessions;

EU funds of over 4,5 billion euros for highway construction andrail rehabilitation; Coordinates together with Austria the EU Strategy for Danuberegion in order to improve navigation conditions on the Danube

river.

Rail 10,776 km length, 2,909 km double lines and 4,002 kmelectrified lines; 3,153 km are already on the Trans European Transport NetworkTEN-T, reaching 4,496 km from 2014 after the TEN-T revision; national freight company will have a majority privatization thisyear; Under the EU rail acquis rule; Network density equal to the EU average;

Two PanEuropean Transport Network (TEN-T) rail corridors:Corridor IV and IX.

INFRASTRUCTUREBuilding the roads for success

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Roads Total road length of 198,930 km; Total national road length of 15,680 km; National highway network in use 390 km; over 400 km of highways under construction, while othercontracts for about 140 km await public bidding; Two paneuropean corridors on road: IV and IX. The roadnetwork included in the TEN-T amounts to 3,511 km, reaching

7,283 km after 2014.

Ports & Airports Extensive network of 15 airports (out of which 12 internationalairports); Airport infrastructure development, including areas with significanttourist activity; Largest and deepest port at the Black Sea Constana Harbour; 10 ports: 2 Black Sea ports and 8 ports to the Danube river.


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ROMANIA'S

GLOBAL RATING

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Fitch rating agency Upgraded Romania's investment rating up to BBB+; "Investment grade" category, translating into low risk for investment; Outlook for longterm foreign currency loans upgraded to"BBB-", as the prospect for longterm ratings is stable.

AT Kearney Romania is attractive for global services: 25thamong 50 countriesworldwide (2011).

Romania ranks 10thwithin Ernst & Young "Renewable EnergyCountry Attractiveness Indices 2012" report Bucharest is considered one of the best European businessdestinations by Cushman & Wakefield's "European Cities

Monitor 2011" Ranking 1stin terms of expenses on labour force; Ranking 2ndin terms of office space availability; Ranking 4thin terms of the evolution of the office surface prices. Romanian companies dominate the 4th issue of Top 100

companies in South Eastern Europe in terms of revenues in 2010

according to SeeNews, AT Kearney & Euromonitor International. OMV Petrom Group ranks 1stin terms of total revenues with aturnover of 3,627 billion Euro; BCR Erste Bank ranks 1stin terms of net profit with 170 millionEuro and with over 16 billion Euro in assets;

The Romanian companies in the South Eastern Europe Top100 account for 40 billion Euro in the overall 87.4 billion Euro

revenues.

Opportunities PPP priority projects Road infrastructure ComarnicBraov highway under concession; SibiuPiteti Highway 116 km; PloietiBuzuFocani Highway 133 km; Trgu MureIaiUngheni Highway 307 km; Bucharest South Beltway & North Bel tway; Energy TarniaLputeti Hydroelectric Power Plant; Reactors 3 & 4 Cernavoda Nuclear Plant; Doiceti Steam Power Plant; AGRI International Project AzerbaijanGeorgiaRomania gasinterconnector;

Environment SiretBrgan Canal layout; Regional infrastructure Eco Project in Ghencea District; Esplanada Project; DanubeBucharest Canal; Danube bridge between Brila and Tulcea.


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The 4thlargest vehicle manufacturer in CEE; Major automotive industry regional hub in SEE; The 2nd global car producers: Renault, Ford; Growing automotive clusters: more than 500 automotive industrysuppliers; Steady automotive industry with a modern and diversified suppliernetwork; EU membership and proximity to the main European markets; 9 billion Euro contribution to Romania's GDP (2010); Over 50 years of automotive tradition, mainly geared towardsexports; Qualified labour force and competitive operational costs; 4.5% overall vehicle production growth (2011 vs. 2010); 8.0% forecast total output growth forecasted for 2012; 9.1% forecast total output growth forecasted for 2013; Talent pool: 11 technical universities; Highly vertically integrated domestic automotive industry; Strategic geographical location: connection between the Black,Caspian and Mediterranean Seas;

Access to the EU markets and to Europe, Middle East and Africaregion (EMEA).

R&D in automotive sector SEE key player regarding R&D activities in automotive sector; Largest Renault R&D centre outside France, with over 2,300engineers design and vehicles improvement, engine and

powertrain adaptation; Long tradition, started with the development of the automotiveindustry in the 1960's; Academic research in 11 technical universities; Major players in private research: Renault, Continental, Siemens,Ina Schaeffler.

Investment support State aid for SMEs and large investments; Fiscal incentives; Employment and training; Additional deduction of 20% from the eligible expenses fromR&D activities; Rabla program ("Cash for Clunkers"), including electric andhybrid cars since November 2011.

LEADING SECTORSEngineering for the future

AUTOMOTIVESDelivering performance

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ELECTRIC & ELECTRONIC

SYSTEMS Lisa Draxlmaier Delphi Packard Kromberg & Schubert Alcatel Lear Corporation Alcoa Fujikura Inc. Leoni Wiring Systems Sumitomo Electric Wiring Systems Yazaki Corporation Valeo Siemens Automotive Ruwel AG Schneider & Oechsler International Marquardt Schaltsysteme Coficab

HVAC SYSTEMS

Continental Valeo Calsonic Kansei

EXHAUST SYSTEMS

Borla Honeywell Garett

SEATING

Johnson Controls Faurecia Coindu

PLASTIC & RUBBER

COMPONENTS Baumeister & Ouslet Solvay-Inergy, Phoenix AG Dow Automotives AD Plastik Simoldes Plasticos BOS Automotive Hutchinson

GEAR BOXES

Renault Daimler Chrysler DCI Wallbridge Star Transmission

TIRES Continental Michelin Pirelli

STEERING WHEELS

Takata Corporation Eybl International AG Momo Magneto Wheels Koyo Seiko SNR Roulments Ina Schaffler Thyssen Krupp Auto Chassis International Dura Automotive System


MAJOR PLAYERS

Automotive components 7.5 billion Euro investment inflows, to increase up to 910 billion Euro by 2012;


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CAR PRODUCERS

RENAULT

Over 10 years of presence in Romania; 1.7 billion investments; 18,000 employees; 130,000 indirect jobs; 4 million cars; Logan, Sandero, Duster; 80% cars exported; Related projects

Gear boxes facility of 214 million Euro of theRenaultNissan Alliance;

R&D Centre "Renault Tehnologie Roumanie":450 million Euro.

FORD

September 2007: the former factory of Daewooacquired by Ford;

1.2 billion Euro pledged investments (20112012); B Max model to be launched and produced in 2012; 90% of production to be exported; 3,500 employees; up to 5,000 until 2015.

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Outlook IT&C one of the CEE's fastest growing IT markets over thenext few years, with a 9% Compound Annual Growth Rate

(CAGR);

Hardware market growth perspective up to 1.0 billion USD in2015; PC sales (including accessories) up to 870 mill ion USD in 2015; Software spending forecasted to rise up to 305 million USD until2015; IT services will maintain the ascending trend reaching 469 millionUSD in 2015; Internet users by 2015 12.77 million inhabitants, from 8.64million nowadays.

Investment support State aid for SMEs and large investments; Fiscal incentives; Employment and training; Internationalization and standardization; R&D: additional deduction of 20% from the eligible expenses forresearch and development activities.

INTERNATIONALLY

ACKNOWLEDGED TALENT POOL

European leader and 6thin the world by the number of certified IT specialists; The 2ndin the region as labour cost competitiveness; The 1stin the EU with regards to the total number of Computer Science andMathematics Olympiad medals earned, 3rdworldwide after Russia and China;

230 IT specialists / mill ion graduates / year, which is one of the highest rates inthe world, exceeding US and Russia;

5 top polytechnic universities, 59 sector universities, 174 private colleges withtechnical profile;

Around 9,000 computer science graduates/year, high percentage of manpower inadvanced R&D;

Secondary education in IT available in all cities; 95% of young Romanians speak English, more than 47% speak at least one otherforeign language, 26% speak two foreign languages.

IT&CThe IT solutions for global business

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One of the fastestgrowing IT markets in Central and EasternEurope; Romania regional pole for international IT&C companies; Good tradition in IT&C: first country in Eastern Europe that builtcomputers; IT&C market value in 2011: 7 billion Euro; 8,000 software and IT service companies; 23% of the active workforce operating in the Science andTechnology sector; Main IT outsourcing and custom software development centres:Bucharest, Cluj-Napoca, Timioara, Iai; Regional investors: Hellenic Telecommunications Organization,Vodafone and Orange; Broadband market key players: Romtelecom, UPC Romania,RCS&RDS.

Opportunities Organic growth due to low computer penetration below 25%; EU structural funds in IT worth 383 million Euro by 2013; Government IT intensive programmes, such as the "Knowledge Based Economy" and "Computers for Schools" programmes; Further IT&C growth prospects in both the SME and thepublic sector;

Potential development due to the quadrupleplay market andmobile operators in the 3G segment.Romania Your Business Partner for 2012


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Embedded automotive systems and network operator

equipment all over Romania

Network operator equipment in Western Romania

Software development centre

R&D engineers working on semiconductor design in conjunction

with Bucharest Polytechnic

Software development centre

Global Technical Support Centre

IT outsourcing, financial services & supply chain BPO

BPO for financial and administrative services in Bucharest,

dedicated to EMEA region

IT services BPO centre in Bucharest for the East European

market

5 global IT & Technology Centers including a 15language

call centre

Centre for Business Process Outsourcing in finance

accountability, human resources and logistics

Global Service Delivery Centre

Service centres

SUCCESS STORIES IN ROMANIA

TOP DESTINATION FOR IT

The Microsoft Global Technical Support Center inBucharest is the biggest of its kind in Europe.Great technical talent, exceptional language skills

and increasing respect for Intellectual Property

are key reasons Microsoft's current and future

investments in Romania.

Ronald Binkofski

General Manager, Microsoft Romania

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Very important renewable energy sources potential; The 10th most attractive country in the world in wind energyinvestment; The 13thmost attractive country in the world regarding renewableenergy investment;

18 billion Euro projected investments in the sector by 2020; Complying with the "202020" EU targets 20% of EU energy consumption from renewable resources; 20% reduction in primary energy use by improving energy efficiency; 20% reduction in the greenhouse gas emissions.

National Plan of Action for Renewable Energy renewableenergy targets: 35% for 2015 and 38% for 2020; Renewable Energy Sources generation units amounted to20,264 TWh (2010); Currently, the energy produced from renewable sources (E-RES)amounts to 35.24% of the total gross electricity consumption; One of the most attractive renewable energy schemes GreenCertificate packages for all renewable technologies; Respects the commitments under the Kyoto Protocol.

Investment support Financial incentives for significant investments in green energy; EU funds for upgrading / building new power and heatingproduction capacities using renewable energy sources: biomass,

micro hydro, solar, wind, geothermal, bio fuels and other; Fiscal incentives; Employment and training; Tradable green certificates system.

WIND

Ranking 1stin South Eastern Europe in terms of wind potential; Ranking 1st in Central and Eastern Europe by annual wind power capacityinstallations (2011);

Ranking 2nd in Europe in terms of wind energy potential south-east ofDobrogea with the Constanta and Tulcea counties;

Ranking 7thin the EU by Installed Wind Farm Capacity in 2011 (520 MW); 14,000 MW current capacity equivalent to a total annual production of 23 TWh; Significant wind resources, including a large offshore potential; Excellent conditions for wind farms development due to onshore areas withlow population;

4,000 MW installed power in 2020 following the implementation of thegovernment renewable energy sources promotion strategy.

SOLAR

Important solar potential of 210 sunny days per year; Ranking 23rdin the world regarding the solar potential; Average solar exposure ranges from 1,100 to 1,300 kWh/m2/year for morethan half of the country's surface;

Main solar regions of Romania: Black Sea coast, Dobrogea and Oltenia with anaverage of 1,600 kWh/m2/year.

BIOMASS

Biomass represents the largest potential source for green energy production inRomania (approx. 88.33 TWh/year);

Only 36% of that potential is currently used, providing excellent opportunitiesfor growth and development;

27% of Romania's land is covered by forests.

GEOTHERMAL ENERGY

The 3rdhighest potential in Europe; Suitable locations in the Western Plain, Southern Plains (Bucharest region) andSouthern Carpathian regions.

GREEN ENERGYReshaping for a better tomorrow

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MAJOR PLAYERS

HIDROELECTRICAleading hydroenergy leading hydroenergy supplier in

Romania (over 17 TWh/year);

IBERDROLA

started work on its 1,500 MW project, meaning that

it would become the largest onshore wind power

installation in the world when that project is completed

in 2017;

ENERGIAS DE PORTUGAL

several wind farms totalling 261 MW installed capacity;

ENEL GREEN POWER ROMANIA

wind energy producer of 104 MW installed capacity;

CEZ

completed 338 MW of its 600 MW FntneleCogealac

project, aiming to become the largest onshore wind

farm in Europe by the end of 2012;

MONSSON GROUP

began construction on its 150 MW wind park worth 245

million Euro;

MARTIFER

wind farm (42 MW) and biodiesel production unit.

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The 1stoil producer in Central and Eastern Europe; The 1stpetroleum industry in South Eastern Europe holds 8 ofthe region's 11 refineries; The 1stproducer of natural gas in Central and Eastern Europe; The 3rdin the EU in terms of oil reserves with 600 million barrels; One of the EU's leading oil producers with 4 million tons of oilper year;

The only country producing oil in the Black Sea (offshore); Over 150 years of tradition in the oil & gas industry firstcountry officially registered in international statistics as having oil

production (1857); Strategic geopolitical location in terms of access to markets androutes, including through the Black Sea; Regulated natural gas market in terms of structure, players andtariffs.

Major players Oil sector OMV-Petrom the 1stoil & gas operator, incorporating gas & crude explorationand production, crude refining, processing and fuels distribution;

Rompetrol the 2ndlargest player incorporates crude oil refining, transportation,retail, logistics, oil engineering, construction and maintenance;

Petrotel-LukOil one of the largest oil company in Eastern Europe, processingboth Romanian and Russian oil;

Gas sector production and storage: Romgaz, Petrom, Depomures, Amromco Energy, Amgaz; transportation: Transgaz; distribution & supply: E.ON Gas Distribuie and Distrigaz Sud Reele, E.ON GazRomania and GDF Suez Energy Romania;

Petrochemical plants: Rompetrol Petrochemicals, PetrotelLukoil, Oltchim; Retail sector: Petrom, Rompetrol, Petrotel LukOil, Oil TerminalSA, Conpet SA.

Opportunities Major PPP projects; Nabucco project gas transmission pipeline from Caspian Region

and Middle East to Western Europe (Turkey, Bulgaria, Romania,

Hungary and Austria); AGRI (AzerbaijanGeorgiaRomania Interconnector) gastransportation project; SCADA System implementation;

Interconnecting pipeline of the national gas transmission systemfrom Romania with the South European system on the GiurgiuRuse axis; PEOP ConstanaTrieste pipeline.

Investment support State aid for big investments; Access to European funds for installations, equipment for industrial operators, for energy efficiency improvement; expanding and upgrading natural gas & oil transportation and distribution grids; desulphurization installations, burners with reduced NOx and filters onrefurbished/upgraded groups of large combustion plants;

interconnecting national natural gas transport networks to European ones. Fiscal incentives; Employment and training.

OIL & GAS

INDUSTRYTurning black gold into profit

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I believe in Romania's attractiveness for investors,especially in the energy sector, which has a highpotential. Petrom's privatization story shows

that success can be achieved even in a complex &

challenging environment

Mariana Gheorghe

Chief Executive Officer, OMV Petrom

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Roche always considered that the Romanian business environmenthas a growing potential, offering a lot of opportunities and a majorresource: welltrained, dedicated people. This is why Roche opened

its first office here, back in 1992.

Dan Zamonea General Manager, Roche Romania


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Opportunities Bringing growth to the less developed regions for a well-balanced

spread of FDI; Government support in developing and maintaining an increasinglydynamic enterprising & innovationbased economy; Development & integration of the "incubators" into innovativenational policies; High profit margins for high addedvalue business; Continuously growing sector, reshaping the country, generatingnew types of markets and practices, new attitudes and new

approaches within the economic agenda; Strong potential to become an international fashion reference,with its own creativity, brands and retail chains; Attractive location for international films, videos and advertisingproductions.

Investment support Crafts production, promotion of manually manufactured products; Establishment and development of business and technological

incubators; Development of the entrepreneurial culture for women managers; Supporting creative industries development by consolidatingfinancial instruments to boost creativity; State aid for SMEs and large investments; Fiscal incentives.

CREATIVE

INDUSTRIESNext pro within the highly competitive world ofglobal business

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Net exporter of creative services; The biggest EU export growth rate of royalties and license fees(92.6%) during 20022010; The 3rdEU export growth rate of R&D services (33.6%) during20022010; The 3rdEU export growth rate of architectural, engineering andother technical services (32.1%) during 20022010; Creative industries account for approx. 7% of the GDP;

23.6% of the total number of companies (122,000 companies); 11% of the total turnover; 12.6% of the total exports; By 2030 Romania is to become a regional and European hub. Creative talent labour pool

Multilingual, innovative, future oriented talent pool as key tofurther economic development;

Unparalleled ability to imagine, create and innovate; 17.5% of the domestic market employees (over 693,000employees); Unique resource in taking a knowledge-based business to thehighest performance levels; Undertaking ground-breaking research, developing new products& providing sophisticated services to regional and global markets;

Worldclass intellectual capital: IBM, Intel, Ericsson, RenaultTechnologie Roumanie, Microsoft, McCann Erickson, Satchi &Satchi, Leo Burnett.

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FOOD &

BEVERAGESExcellence in quality

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Ranking 1st in South Eastern Europe in terms of consumermarket potential; Ranking 2nd in Central and Eastern Europe in terms of marketopportunities; 15% of the total manufacturing employment;

Great potential for BIO products; Increased demand for traditional, quality products; Enhanced competitiveness over recent years; Opportunities for innovative companies to improve the serviceson the local market; 9.4 million ha of arable land (almost 40% of the total country area); 0.41 ha per capita one of the highest ratios of arable land percapita in Europe;

Major players among the large retailers: Metro Group, Rewe,Carrefour, Tengelmann, Mega Image, Auchan.

Beverages Romania is one of the world's largest wine producers; The 6thwine producer in Europe and the 15thin the world; The 5thin winegrowing standings in Europe;

One of the oldest wine making traditions in the world (6,000 y); International acknowledgement in major wine competitions; 183,400 ha in fruityielding vine area;

ACKNOWLEDGEMENT

In 2009, Herta Mller won the Nobel Prize for Literature;

Radu Mihileanu won two awards at the 2010 Cesar awards ceremony

for "The Concert";

Cristian Mungiu's movie entitled "4 Months, 3 Weeks and 2 Days"received the Palme d'Or award in the Cannes Film Festival 2007 edition;

Marian Crian's creation, entitled "Megatron", won the Palme d'Or awardfor short film at the Cannes Film Festival 2008 edition;

The movie entitled "The Death of Mr. Lzrescu", directed by CristianPuiu, received the "Un Certain Regard" award, at the Cannes Film

Festival 2006 edition and many other prizes worldwide; currently it is the

Romanian film that received the highest number of awards ever;

Corneliu Porumboiu won the Camera d'Or Best First Feature Award forhis movie entitled "12:08 East of Bucharest" at the Cannes Film Festival2006 edition;

Cristian Nemescu's posthumously edited movie, entitled "California

Dreamin'", won the prize of the "Un Certain Regard" section at the

Cannes Film Festival 2007 edition;

In 2010, "If I Want to Whistle, I Whistle", a movie directed by Florinerban, won the Silver Berlin Bear Jury Grand Prix;

McCann Erickson Romania was designated Agency of the Year at the2011 edition of the Golden Drum Advertising Festival of the New Europe;

McCann Erickson Romania team won a Golden Lion at the prestigious

Cannes Lions International in 2011;

Saatchi & Saatchi Romania won the Silver for Outdoor AdvertisingCampaigns at the London International Advertising Festival in 2008.


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60% of mineral water reserves and 1/3 of all mineral waters ofEurope;

7.77% compound annual growth rate of alcoholic drinks salesby 2016; 4.27% compound annual growth rate of soft drinks sales by2016; Major players: Cotnari (Moldavian vineyard famous for centuries),Murfatlar (wine market leader in Romania), Vincon Vrancea,

Jidvei, Zarea, Borsec, Izvorul Alb, Izvorul Minunilor, Dorna &

Bucovina, CocaCola Company, European Drinks Group,

Pepsico Inc.

Food Exports of farm and food products recorded a 40% growth rate,up to 3 billion Euro; 5.07% compound annual growth rate of per capita foodconsumption by 2016;

The 2nd

EU corn producer; The 4thEuropes honey producer and top 20 in the world; The 6thin EU by horticultural cultivated surface and one of theEU top producers; Amongst EU's top 10 milk producers; Historical tradition in food products manufacturing; Wide range of traditional products (1,500 nationally registered); Food distribution channels continuously expanding;

Major players: ALDIS, Cristim, Caroli, Angst, Scandia, Danone,Albalact, FrieslandCampina, Hochland & Covalact Nestl, Kraft,

Supreme Chocolat, Cadbury, Mars, Ferrero.

Investment support State aid for SMEs' and big investments; Availability of EU funds; Fiscal incentives; Employment and training; Internationalization and standardization.

Twenty years have passed since I received the capacity as foreign

investor in Romania!

In a continuous investment process, during all these years, I

resold 2 operations, in particular because, after so many years, I

further identified new business opportunities in the Agricultural

field, with a huge potential, in the competitive food industry

with a clear orientation to exports and in the field of RenewableEnergy where Romania may excel.

I keep on investing in a context where now the legislation

crystallized, where I find competent, ambitious and loyal

engineers, where the consumer is thirsty for any quality product,

whether or not it is a Premium product, where IT specialists are a

lot and where, in an objective manner, competitive advantages of

a still underexploited country are numerous!

I strongly believe that, in certain sectors, this country may be the

extraordinary start basis for whoever wishes a challenge with the

competitiveness of international markets.

I personally continue to invest in my future... in Romania!

Jean ValvisPresident & General Manager, Valvis Holding

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Extensive airport coverage; 47% of the total tourism workforce in Romania are aged 15-34,a percentage that is above the EU average; In 2007, the medieval city of Sibiu was nominated Europeancapital of culture (jointly with Luxembourg); Sighioara: the only inhabited medieval citadel in the world; Wellfocused marketing campaigns improving Romania'sstanding among the major players in the field.

Ecotourism 3 Biosphere Reservation: the Danube Delta, the Retezat mountainarea and the Rodna mountain area; 26 national and natural parks; 55 scientific reservations; 851 other natural reservations and protected natural areas.

Cultural tourism Great variety of old Orthodox churches, monasteries and cathedrals; Over 27,000 touristic sites; 151 monuments and archaeological sites of special value, some

included on the UNESCO heritage list; Mixture of legends, castles and palaces preserved in medievaltowns.

Mountain and adventure tourism Excellent opportunities provided by outdoor landscapes; Centuriesold woods, ozone rich air, mysterious caves, glaciallakes, waterfalls and peaceful countryside; Hunting, fishing, mountaineering, sightseeing, alpinism.

Danube Delta Biosphere Reservation designated by UNESCO; The 3

rd

largest Delta in Europe; 98% of the European aquatic fauna.

TOURISMExplore the Carpathian Garden

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Romania delivers a unique mix of Latin and Byzantine culturesand traditions in the heart of Europe; Romania offers true authenticity in the wild Carpathians or nearlyuntouched Danube Delta and a unique cultural heritage like of its

painted monasteries; High potential for developing cultural circuits, nature tourism,rural tourism, city break packages, active and adventure tourism,

health and wellness tourism; Attractive landscape: the Carpathian mountains, sub-Carpathians,hills and plateau;

Potential for developing ecotourism, rural tourism and agritourism,thematic sports and recreational tourism; One of the highest potentials in tourism in the region, in terms ofnatural landscape and biodiversity; One of the most diversified tourism products worldwide (naturaland anthropic resources, a unique biodiversity of flora and fauna

in Europe); A third of Europe's total number of natural springs are locatedin Romania; 117 locations enjoying natural therapeutic factors: mineral,thermal, salty waters, sapropelic mud, to be used in spas and

healthcare centres; 30 monuments included on the UNESCO World Heritage List; Romania is included in the TUI, Rewe Touristik, Thomas Cook,FTI touristic catalogues;

Significant tourist accommodation capacity over 300,000 placesin hotels, chalets, villas, inns, bungalows, motels, hostels etc.;



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Romania provides significant opportunities for

Hilton Worldwide to partner with investors and

open hotels within our award winning portfolio.

We currently feature 11 hotels either trading or

underdevelopment in multiple locations.

Didier Martin

Vice President, Eastern Europe, Israel, Russia &

Turkey for Hilton Worldwide

CreditsParng Mountains


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Brumrescu Nicolae Videanu Vasile Dimitrescu Elie Carafoli13/ 10


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Centre of excellence within the Romanian defense industry; 5,000 employees in the sector; Predominantly involved in manufacture and assembly of aircraftsubsystems;

Costeffective manufacturing processes; Private R&D sector growing at highspeed; 7 R&D institutes; Particular strengths in maintenance and repair; involvement inupgrading programs; Extension of maintenance repair and overhaul (MRO) activitiesfor both civil and military programs;

International steady partnerships for the development of a regionalaircraft; Major customers in the EU: BAE Systems, EADS; Major manufacturing & MRO companies: Aerostar, Avioane, IARBraov, Craiova, Metav, Romaero, Turbomecanica, Aerofina, Aeroteh; Major aircraft components manufacturing: Premium Aerotec,Universal Alloy Corporation, Duqueine Group, Elbit Systems; Significant opportunities for further development wide rangeof high quality aeronautical products and services for civil andmilitary applications; Licenses to produce: BAC 111 airliners, BN2 Islander utilityaircraft, helicopters SA 330 Puma, SA 316B, Alouette III,

turboshaft Turmo IV CA, Viper and Spey aircraft engines.

Globally acknowledged tradition world pioneers Traian Vuia (first autonomous takeoff airplane), HenriCoand (first jet airplane), Grigore Bricu, George Arion, Tache

Brumrescu, Nicolae Videanu, Vasile Dimitrescu, Elie Carafoli

(aerodynamics and space sciences); Contributions to more than 30 scientific and technological spacemissions including Outer Space;

Manufacturing of over 20 types of transport airplanes, helicopters,

passenger medium carriers and light airplanes; Romanian aviation was officially established in 1910. Pillars of strength: Research, design and development; Manufacturing structural aircraft items; General assembling; Integration of modern avionics and systems; Maintenance, repair and overhaul works; Upgrade programs; Flight test and certification; Customer support. Important R&D outcomes

IAR111 supersonic aircraft carrier, demonstrator for future spacetourism technology development; Executor Rocket Engine liquid fuel rocket engine for theIAR111 & Haas II rocket; Automated spacecraft built for the Google Lunar X PrizeCompetition; STABILO Manned suborbital space vehicle; Haas Rocket launcher able to place 400 kg of payload in LowEarth Orbit; Demonstrator 2 & 2B equipped with the first reusablecomposite materials worldwide.

By 2020 Participation in major EU activities (EU FP6/7 & JTI-Clean Sky); Pilot project for new regional transportation system (CNTAR); Higher international visibility for existing capabilities (EREA,ACARE, ASD,IMG4).

AERONAUTICSTradition in empowering innovation

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Investment support


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Investment support State aid for SME's & big investments; Fiscal incentives; Employment and training; R&D: additional deduction of 20% fromthe eligible expenses from research and

development activities.

We had many good reasons to invest in Romania.

Particularly the existing infrastructure and

capabilities in the metalworking sector were

convincing. Our Brasov plant contributes strongly

to the competitiveness of Premium AEROTEC.

Jochen von Wurmb

Head of Premium AEROTEC plant in Brasov

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The 3rdexporter in the EU; The 2nd in the top of European yards Daewoo Mangaliabuilding bulkers and container vessels (2009); Over 8,000 employees in the sector; 1,000 million Euro shipyards turnover (2010); 7.19% foreseen annual increase in tonnage throughput to 57.76million tonnes for the biggest Romanian port Constana

(2012); 7.15% average annual growth in tonnage by 2016 for theConstana port; 4.25% foreseen growth in box traffic to 606,235 twentyequivalent foot units (TEUs) (2012); 6.92% y-o-y growth in box traffic by 2016, reaching 810,508TEUs; 160 years of tradition in shipbuilding manufacturing;

Labourintensive industry with skilled workforce at competitiveprices; High rate of innovation oriented specialists; Higher education system highly skilled specialists, strongresearch and design database; Access to the Black Sea and more than 1,000 km of the Danuberiver;

Core competence in integrating logistics solutions for globalcompanies due to Romania's strategic position in Europe.

SHIPYARDSA safe navigation

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MAJOR PLAYERS

Leading shipyards: Damen Shipyards Galai, Constana Shipyard, DMHI Mangalia,

STX OSV Tulcea, STX OSV Brila, Severnav Drobeta Turnu Severin, Orova

Shipyard, Shipyard ATG Giurgiu;

Significant support companies: Germanischer Lloyd, Ship Design Group, BureauVeritas, Retec, Dutch Marine Trading Design, Ductil, ICEPRONAV, Eekels, Helmers,

Metchim, Menarom Pec, Det Norske Veritas, Avemar, Liebherr, Marine Engineering,

Van der Velden, CAD, Edilbalk, En Vogue Industries, Green Yard Brila, Heinen &

Hopman, Industrial Cruman, Ronomar, Sanco, Turom Steel, Vacon;

A wide range of products: merchant vessels (tankers, bulk carriers, anchor handlingvessels, tugs, container feeders, dredgers, LPG, offshore supply vessels, yachts,

barges etc.); ship repairs & ship conversions; naval vessels.

Damen decided to invest in Galati Shipyard in 1999, after six

successful years of co-operation. The main advantages at that moment

were the labor cost level and the qualification of the personnel.

After more than a decade of continuous improvements & investments

we succeeded to change the company in a top European player.

Flemming Seestrandt Srensen

Managing Director, Damen Shipyards Galati

13/ 12 In transforming Intel to a computing company we need the bestsoftware talent to deliver on our vision. Romania is an ideal location


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66 institutes and research centres of the Romanian Academy; Advanced Information Systems for e-Services, Informaticsand Computer Science; Communication Technologies, Information Systems Securityand Accessibility;

Nanoelectronics, Photonics and nanointegratedSystems; New Methods for Management, Marketing and EnterpriseDevelopment; Advanced Technologies for Industrial Process Control.

Investment support State aid for SMEs and large investments; Fiscal incentives; Employment and training; 20% additional deduction from the eligible expenses for R&D

activities; EU funds for hightech startups and spinoffs; R&D infrastructure development and creation of new R&D jobs; promoting innovation.

MAJOR PLAYERS

Renault, Continental, Ina Schaeffer, Oracle, HP Software Competence Center,

WIPRO, Intel, Honeywell, Infineon Technologies, GlaxoSmithKline, Siemens,

Elerom, Movidius, Monoelect, Azoth Tehnologies, Laromet, Helco, Electromedical

Industries, Medtex Design & Production, Ecofix, Imatech Trade & Imaging.

R&DA passion to learn and perform

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South Eastern Europe key player in advanced manufacturing R&Dsector; One of the highest growth rate among the EU catching-up countries; Pillar of strength in high energy laser research facility of the EU (ELI)focused on laserbased nuclear physics; Ranking 14thon pharmaceutical research and development in Europe;

Ranking 23rdin the world as tertiary education enrolment rate; 2% R&D intensity from GDP by 2020; 6% employment rate in knowledgeintensive activities; 14.87% sales of new to market and new to firm innovations; 48.35% knowledgeintensive services exports; 50.72% medium and hightech product exports; 78.2% youth with upper secondary level education; National strategy for R&D and Innovation; Intellectual assets well above the EU average; 2012 OSCAR award for Phantom highspeed digital camerasdesign and development (Radu Corlan & Petru Pop); Host to Renault's biggest R&D centre outside France (< 2,300engineers).

Driving key technology innovations Extensive R&D resources andoutcome 4 technological and scientific parks; 13 technological transfer centres; 15 technological and business incubators; 19 technological information centres;

32 technological platforms in: renewable energy, biotechnologies,

genomics, nanoelectronics and medicine, innovative medicine,

chemistry etc.;

for software engineering talent due to a rich university environment

and close proximity to customers and ecosystem partners.

Monica Ene-Pietroanu

Country Manager, Intel Romania Software Development Center

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Official name: Romania Form of Government: Republic The Parliament: a two-chamber Parliament (the Chamber of Deputiesand the Senate) National Flag: next to the staff, three equal vertical stripes blue,yellow and red Geographical Location:South Eastern Europe Neighbours: Bulgaria, Serbia, Hungary, Republic of Moldova andUkraine Area: 238,391 sq. km (ranking 12thin Europe & 81stin the world) Official language: Romanian Standard time: GMT +2 hours Currency: Romanian leu (RON), fractional coin ban Capital city:Bucharest (1.9 million inhabitants) Administrative organisation: 42 counties (including Bucharest), 319towns, 2,851 communes

Main cities: Iai, Constana, Cluj-Napoca, Braov, Arad, Ploieti,Timioara, Oradea Airports: BucharestOtopeni (currently "Henri Coand" International

Airport), BucharestBneasa (currently "Aurel Vlaicu" International

Airport), Constana, Timioara, Bacu, Baia Mare, Cluj-Napoca,

Craiova, Iai, Oradea, Satu Mare, Trgu Mure, Suceava, Arad, Sibiu Population: 19.6 million inhabitants Density: 91 inh./sq. km. Ethnic structure: Romanians 89.5%, Hungarians 6.6%, other 3.9%

ROMANIA IN A

NUTSHELL

Romania Your Business Partner for 2012 Creditstraditional wooden church, Maramure, Brsana


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DESIGN

Romanian Creative Industries Business Federation (FEPIC)Graphic & Design Department

Phone +40 722 690 504

COORDINATOR

Andreea Paul

The Economic Adviser of the Prime Minister Mihai-Rzvan Ungureanu

Romanian Government

SOURCES

European Commission Business Monitor International Economist Intelligence Unit Ernst & Young Serban & Musneci Associates European Automobile Manufactures' Association United Nations Conference on Trade and Development (UNCTAD) The Romanian Association for Aeronautics and Astronautics Ministry of Transportation and Infrastructure Ministry of Regional Development and Tourism Ministry of Education, Research, Youth and Sports Ministry of Economy, Trade and Business Environment Romanian Center for Trade and Investment Promotion

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