Adrian N Ionescu
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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.
“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.
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.
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.
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:
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: