File / Share of French investments in Romanian industry decreased compared to 2007. Investment in agriculture and utilities increased

de Adrian N Ionescu | 28.8.2017 .

The share of direct investment (FDI) made by French companies in the Romanian industry fell from 56% of total French FDI in 2007 to 46% in 2014 and stabilized compared to the year of the global financial crisis, 2010 (44%).

In contrast, investment in utilities grew from nearly 0 to 13% and in agriculture, to 8%. French FDI amounts to a total of EUR 4.2 billion, according to the French Chamber of Commerce and Industry in Romania (CCIFER).

France is the fourth largest investor in Romania, in terms of FDI, with 7% of the total (the same as Cyprus), after the Netherlands (25% of the total FDI stock), Austria (14%) and Germany (12%), according to the date of Foreign Investors Council (FIC) and BNR.

*

  • Sectoral evolution of French FDI
  • – Transportation – IT&C – Utilities – Retail- Financial services – agri-food – Industry

*

“While French investments were focused in a balanced way in the early 2000s, on the industry, new technologies and transport, Romania’s accession to the European Union in 2007 marks an important change: 56% of the FDI stock is directed to the activity in the industry sector. This share progressively declines in the years of crisis and stabilized around 46% in 2014. Financial and insurance services have maintained over time a constant share of about a quarter of total investment, as well as the trade. The agri-food sector increases its share and reaches 8% in 2014, while investments in the IT&C sector do not exceed 2%,” says CCIFER.

Import & Export

Franco-Romanian trade reached EUR 7.4 billion in 2016, up 9.3% year-on-year.

France is the fourth largest exporter to Romania (EUR 3.6 billion in goods and equipment, rolling stock, chemicals, textiles) and the third largest importer (EUR 3.8 billion in rolling stock, goods and equipment, textiles).

Romania ranks though 27th among exporters in France and 28th among importers.

Evolution of bilateral Franco-Romanian trade

In the first five months of this year, Romania’s exports to France totalled EUR 1.809 billion, and Romanian imports – EUR 1.657 billion, according to the National Statistics Institute.

French companies in Romania

About 3,000 French-owned companies are active in our country and “most of the CAC 40 companies (index that includes the largest companies listed on the French stock exchange) are present on the Romanian market in the automotive sector, banking and insurance, distribution, pharmaceutical industry and energy sector,” according to the source mentioned.

By turnover, the most representative sectors for the French presence in Romania are, according to CCIFER:

  • Industry (EUR 8.6 billion), including Renault, Michelin, Faurecia, Valeo, Sanofi, Airbus)
  • Trade (EUR 5 billion, Carrefour, Auchan, Cora, Leroy Merlin, Decathlon)
  • Energy & environment (EUR 1.3bn; Engie)
  • Consulting & services (EUR 655 million; the CCIFER press release does not mention the predominant contribution of the financial services: BRD, BNP Paribas, credit Agricole, Groupama)
  • IT&C (EUR 360 million, Orange, Pentalog, Atos, Capgemini, Thales)

Most French-owned companies are small and “numerous SMEs and intermediate-sized companies that have followed the development of large French companies”, especially in the fields of:

  • Consulting & services – 610
  • Trade – 550
  • Industry – 520
  • Construction – 325
  • Real Estate – 225

Publicat la data de 28.8.2017 .

Lasa un comentariu


SIMILAR ARTICLES

Adrian N Ionescu

Ministry of Finance has sold euro bonds worth one billion euros on foreign market

The Ministry of Finance (MFP) placed euro bonds worth EUR 1 billion on the foreign market by reopening the issue with the maturity of 10 years launched in April this year The issue has been placed with a 2375% coupon at a yield of 2,114%, lower than the one of the initial issue in April (2411%), following "the decrease of the related margin of Romania’s credit risk to the lowest level for ...
Read more »

Adrian N Ionescu

European Commission’s announcement to Government and Parliament: Gas transactions market cannot be monopolized by OPCOM

Romania risks the infringement procedure if the Parliament adopts definitive amendments to the Emergency Ordinance 64/2017 on the natural gas market, which provides for the trading of 70% of its volume only on the state-controlled OPCOM market The punishable amendments, recently approved by the Chamber of Deputies' Committee for Industries, could violate the fundamental freedoms laid down in ...
Read more »

Adrian N Ionescu

Ford launches production of EcoSport in Craiova. Total investment in Romania reaches over EUR 1.2 billion

Ford officially launched the production of the EcoSport SUV at the plant in Craiova, raising total investments in Romania to about EUR 12 billion, since the takeover of the factory in 2008 The number of employees will increase by nearly 1,700 to 4,300 people by the end of the year, exceeding for the first time the number of employees in the moment of the takeover Ford plant in Craiova will ...
Read more »

Adrian N Ionescu

ANAF has repealed procedure for cancellation of VAT code for inactive companies

An order by the ANAF President amends the regulations for cancelling the registration for VAT purposes, respectively repeals the procedure for the cancellation of the VAT code for the inactive companies The provisions in question are included in OpANAF 2899/2017 on approving the procedure for the ex-officio change of the VAT related tax vector, as well as the template and content of some ...
Read more »

Adrian N Ionescu

Investment of the poor: MFP sells one-lei treasury bonds to population and money will be blocked until maturity

The Ministry of Public Finance (MFP) wants to raise money to the budget, leu by leu and says that treasury bills, whose issues have already been announced, will have a nominal value of 1 RON The amount is a real premiere The financial instruments will be issued quarterly, on short terms, through the State Treasury's operating units, and will not be listed on the stock exchange, which means ...
Read more »

MAINS

Prime Minister Grindeanu about 2017 budget: 5.2% economic growth, 815 billion lei GDP, 253 billion revenues

Prime Minister Sorin Grindeanu said on Sunday evening on Romania TV that the budget deficit in 2017 will fall within the set target of 3%, ... Read more

Back to the lesson of 2008-2014! Essential viewpoints about the type of growth we choose

The National Institute of Statistics announced the final value of GDP for 2014 at 668,143.6 million lei, in current prices, representing a growth rate of ... Read more

Trade deficit in 2016 is close to 10 billion euros, driven by imports of chemicals, fuel and food

The trade deficit in the first eight months of this year was EUR 6,133.8 million, about 28% higher than the same period of the last ... Read more

”Digital-Schweitzer” Romania: IT specialists explain why citizen is stuck between super computerized institutions

Ciolos government promised a revolution in reducing state bureaucracy, official emphasis being put on digitization and electronic communication, institutions being required to be transparent. This ... Read more