Buletin de afaceri România-Suedia Business Bulletin Rumänien-Sverige -Sweden business newsletter

Nr. 39/octombrie-noiembrie 2019 Nr. 39/Oktober-November 2019 No. 39/October-November 2019

BPCE Stockholm, SUEDIA Rumäniens Handelskontor i Stockholm, Sverige Trade Office of Romania in Stockholm, Sweden 36, Ostermalmsgatan, 10041-Stockholm; tel.: +46 8 102858; email: [email protected] Business Newsletter Romania-Sweden Facts about Romanian Economy

European Commission Economic Forecast – 2019, Romania Table of contents The European Commission publishes macroeconomic forecasts for the EU three times a year, in spring (May), autumn (November) and winter (February). These reports are produced by the Directorate-General for Economic and Financial Affairs (DG ECFIN). Recently was released the Winter 2019 Facts about Romanian Economic Forecast; for more information, see: Economy https://ec.europa.eu/info/sites/info/files/economy-finance/ip096_en.pdf Bilateral Trade

Doing business in Romania EU Winter 2019 Economic Forecast: growth moderates amid global uncertainties Economic & Financial The European Commission has released its Winter 2019 Economic Forecast and it has good news for all EU member states. News The European economy is forecast to grow for the seventh year in a row. Business opportunities The pace of growth is forecast to be fastest in Malta at 5.2%, followed by 4.1% in Ireland and Slovakia. Romania is forecast to growth with 3.8%, being in top three. Tourism Italy is going to experience, at 0.2%, the slowest growth. The Commission said that the growth will be moderate International events compared to the last years high rates and the outlook is subject to large uncertainty. Facts about Romania Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs, stated: Useful contacts “After its 2017 peak, the EU economy's deceleration is set to continue in 2019, to growth of 1.5%. This slowdown is set to be more pronounced than expected last autumn, especially in the euro area, due to global trade uncertainties and domestic factors in our largest economies… All EU countries are expected to continue to grow in 2019, which means more jobs and prosperity… and Pg.2/30 growth should rebound gradually in the second half of this year and in 2020.” Business Newsletter Romania-Sweden Facts about Romanian Economy (cont.)

European Commission Economic Forecast - 2019, Romania (cont.) Table of contents The European Commission publishes 3 times a year its EU macroeconomic forecasts for all its member states. More about Romanian Winter 2019 economic forecast, here: https://ec.europa.eu/info/sites/info/files/economy- Facts about Romanian finance/ecfin_forecast_winter_07_02_19_ro_en.pdf Economy Bilateral Trade

Doing business in Romania

Economic & Financial News

Business opportunities

Tourism

International events ROMANIA – economic forecast The economic boom that began in Romania in 2017 eased in 2018. Real GDP growth eased from 7% in 2017 to 4.3% annualized in the first three quarters of 2018. For the year as a whole it is Facts about Romania estimated at 4%. The slower pace of growth was due to private consumption, as the effects of tax cuts implemented Useful contacts in 2017 faded away and inflation weighed more heavily on real disposable income. Nonetheless, private consumption growth remained strong as a result of the tight labor market and rising wages. Investment growth is likely to show a significant decrease in 2018, following contractions in the second and third quarters. According to preliminary data, inventories contributed 2.8 pps. to GDP growth in the first half of 2018. If confirmed, this build-up of inventories may explain the subdued level of private investment in 2018. Net exports contribution to GDP growth turned more negative in 2018, with both imports and Pg.3/30 exports declining. Consumption goods were the main drivers of import developments. Exports decelerated on the back of more sluggish external demand and an appreciation of the real effective exchange rate. Business Newsletter Romania-Sweden Facts about Romanian Economy (cont.)

European Commission Economic Forecast – 2019, Romania (cont.) Table of contents

More about Romanian Winter 2019 economic forecast, recently released by the European Commission, here: https://ec.europa.eu/info/sites/info/files/economy- Facts about Romanian finance/ecfin_forecast_winter_07_02_19_ro_en.pdf Economy Bilateral Trade ROMANIA – economic forecast (cont.) Real GDP growth is forecast to further decrease to Doing business in 3.8% in 2019 and 3.6% in 2020. Indicators 2017 2018 2019 2020 Romania The composition of growth is expected to remain fairly stable, with private consumption still the main GDP growth 6,7 4,3 3,8 3,6 Economic & Financial driver. (%, y-o-y) * News The evolution of investment in 2019 will largely depend on the impact of policies introduced in December 2018 concerning the banking, energy and Inflation 1,1 4,1 3,3 3,1 Business opportunities telecommunications sectors. (%, y-o-y) * The contribution of net exports is expected to Note: *- estimated data recently annualized and forecasted by EC remain negative but progressively less so in 2019 Tourism and 2020. The annual headline inflation, reached 4.5% in International events September 2018, the highest level since 2013, and averaged 4.1% in 2018 overall. The deceleration towards the end of 2018 was mainly on account of Facts about Romania decreasing food and, above all, energy prices. Over the forecast horizon, headline inflation is forecast Useful contacts to decelerate further to 3.3% in 2019 and 3.1% in 2020, driven by base effects and falling oil prices. However, a further depreciation of the currency vis-à-vis the euro poses an upward risk to price levels. Underlying inflation remained broadly stable in 2018, growing at 2.7% but it is expected to decrease further in 2019 and 2020, in line with headline inflation. Pg.4/30 The European Commission stresses that the risks to the forecast are clearly on the downside. Besides a potential negative impact on credit, the government’s emergency ordinance from December could have a broader effect. Business Newsletter Romania-Sweden Facts about Romanian Economy (cont.)

Bilateral Trade Romania - Sweden Table of contents • The last five years continued the positive trend of increasing the bilateral trade. So, during 2017 the total bilateral trade was 971,93 million Euro (5,3% more than in 2016), with the Swedish export of 424,69 million Euro (11,3% more than in 2016) Facts about Romanian and the Romanian export to Sweden of 547,24 million Euro (1,1% more than in Economy 2016). The bilateral trade maintained a favorable balance, of 122,55 million Euro, Bilateral Trade on the Romanian side. It should be highlighted the sustained growth of the bilateral trade in the last years, in spite of the problems generated mainly by the Doing business in international crisis started in 2008. Romania • It is noteworthy that the bilateral trade growth was due to the general increase of exports and imports, both for Romania and Sweden, and this is why there is a Economic & Financial balanced trade with significant prospects for growth and diversification. News • In 2018, the total bilateral trade was 1.043,54 million euros, 7,39% more than in the previous year. Last year, for the first time, the bilateral trade between Romania Business opportunities and Sweden exceeded the symbolic value of 1 billion euro. • During the first seven months of 2019 the total bilateral trade was 579,61 million Tourism euros, 6,37% less than in the previous year. The Swedish export was 251,61 million euros, 8,76% smaller than in 2018, and the Romanian export to Sweden was 328,0 International events million euros, 4,44% less than the last year. The bilateral trade is keeping a favorable balance, of 76,39 million euros, on the Romanian side, for January-July Facts about Romania 2019. Evolution of Trade between Romania and Sweden (million Euro) Useful contacts 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Total 636,46 496,35 557,08 686,28 675,14 773,62 843,18 874,62 922,76 971,93 1.043,54

Export 201,9 246,08 291,99 355,76 390,99 452,33 465,73 500,33 541,33 547,24 586,49

Import 434,56 250,28 265,09 330,52 284,15 321,29 377,45 374,29 381,43 424,69 457,04

Pg. 5/30 Sold -232,6 -4,2 26,9 25,24 106,84 131,04 88.28 126,04 159,9 122,55 129,45 Source: INS – Romanian Institute of Statistics Business Newsletter Romania-Sweden Doing business in Romania

Table of contents Invest Romania is the government organization dedicated to providing professional support and advice to foreign investors in Romania

Facts about Romanian Its main goal is to attract and facilitate foreign direct investment in Romania. (see a short country Economy presentation: http://investromania.gov.ro/web/wp-content/uploads/2017/03/2017_-Country-Presentation_InvestRomania.pdf) Bilateral Trade An useful guide was created to support foreign investors navigate the Romanian business environment when opening a business: “Made in Romania - The Foreign Investor’s Guide”. Doing business in The updated guide could be downloaded here: http://investromania.gov.ro/web/business-in-romania/the- Romania foreign-investors-guide-2017/ Whether it’s about opening a new office or an entire manufacturing facility, the Invest Romania’s expert Economic & Financial advice and support services are offered free of charge to organizations wishing to come to Romania. News Relevant information regarding institutional data can be found at http://dpiis.gov.ro/new_dpiis/en/ Invest Romania offers: Business opportunities • information on legal framework, business costs, CONTACT tax and government support, infrastructure, etc. www.investromania.gov.ro • links between potential investors and local 152 Calea Victoriei , , ROMANIA Tourism resources and opportunities. Secretary of State: Tel: +40 21 2025441, Fax: +40 21 3163158 • guidance for project implementation during E-mail: [email protected] International events all stages of the decision-making process and Foreign Direct Investment Department consultancy regarding any arising complications. Tel: +40 21 3163129 (int 106/107), Fax: +40 21 3163158 Facts about Romania • assistance in maintaining a level playing field Email: [email protected] for foreign investors and public sector stakeholders. Useful contacts North-East Regional Development Agency of Romania

For more information regarding the Agency's free services, see the Investor's Guide for the N-E Region of Romania, a comprehensive brochure that contains relevant figures for an investor, in order to support making an image about the region: http://www.adrnordest.ro/user/file/news/16/Brosura%20ADR_A4_2017_%20WEB%20landscape.pdf CONTACT: Robert Cotună - Expert | Business Development Directorate | Private Investment Office Pg. 6/30 www.adrnordest.ro; 9, Lt. Drăghescu Street, Piatra-Neamț, Romania 610125 Email: [email protected] Phone: +40 233 218 071 / 072; Mobile: +40 746 857 193 Business Newsletter Romania-Sweden Doing business in Romania (cont.)

Table of contents NEWS: Autoliv recently built a 20 mil Euro factory at Rovinari, Romania

Autoliv also owns local factories in Brasov, Lugoj, Sfântu Gheorghe, Reşiţa and Oneşti, and has engineering centers in Braşov, Timişoara and Iasi. Facts about Romanian Economy Bilateral Trade The last investment of Autoliv Romania of EUR 20 million is in a factory build “from zero”, opened Doing business in in September 2019 in Rovinari. Romania "In January this year, construction works were started and recently the location was inaugurated, developed on a plot of more than 5 hectares. We managed to attract this investment to Rovinari based on the workforce existing in the area, with the massive Economic & Financial redundancies made by the energy complex Oltenia" - said Robert Dorin Filip, the mayor of News Rovinari, with a population of about 13500 inhabitants. So far, around 400 people have been employed and their number will increase to 1 250 by the end of next year. Business opportunities Autoliv - the well-known producer of safety systems in the automotive industry (founded in Tourism Vårgårda, Sweden in the form of Auto Service AB in 1953) - has continually expanded its activity in Romania. In 2016 it was the eighth largest exporter in the local economy and already had five plants in International events Transylvania and Banat (Western Romania). After it was opened a new plant in Onesti and an engineering center in multipurpose urban development Palas Iasi (Estern Romania). In 2017 Facts about Romania Autoliv Romania had 10,500 employees in local manufacturing and centers. Veoneer, a safety electronics company spun-off from Autoliv, has extended its engineering center in Iasi, its second in Romania, after the one opened in Timisoara, and continued in Useful contacts 2018 its recruitment process on the Romanian market. Autoliv Romania has completed in 2018 another investment of 6.4 mil. Euro in a new hall with an area of 2300 sqm, where the strap is produced for motor vehicle safety belts; the newly installed capacity complements the already existing plant in Brasov and together the two will produce 270 million meters of belts/year (increasing by 23% the current volume). In 2018 Autoliv Romania has grown to 11300 employees in its local plants and centers and planed to hire another 200 during the year, increasing the staff in the production and Pg. 7/30 engineering departments, in order to implement the new projects. Autoliv sees its revenues in Romania up to over 4 billion lei (EUR 860.5 million) in 2018, a 2% increase on the previous year (Finance Ministry data). Business Newsletter Romania-Sweden Doing business in Romania (cont.)

Romania becomes the second most important operation of Ericsson Table of contents in Europe, after Sweden

Ericsson started a couple of years ago its collaboration with RCS&RDS (Digi) by modernizing its network to prepare it for the Facts about Romanian arrival of the 5G and IoT services. Economy Bilateral Trade Ericsson has modernized the RCS&RDS (Digi) network to prepare it for the arrival of the 5G and IoT services. The multi-annual contract marked the first collaboration between Doing business in the two companies at a local level. Romania Ericsson was chosen by RCS&RDS to modernize its mobile network in Romania, offering its users the possibility to benefit from improved mobile broadband services. The telecom operator replaced the equipment already available in the Economic & Financial Digi network, with the latest radio equipment in its portfolio that can support News NarrowBand-IoT (BN-IoT) and 5G. The project is primarily focused on modernization of Bucharest’s network and other large cities, marking the first collaboration in Romania of the two Business opportunities companies. Meanwhile Romania has become the second most important operation of Ericsson in Europe - Tourism with business of 300 mil. euro and about 5000 employees! The local subsidiary of the Swedish giant Ericsson, one of the largest global suppliers of International events equipment and services for telecom operators, has become a player with business of over 300 mil. Euro and about 5,000 employees in Romania, following the integration of the antenna plant of the German Kathrein group, in Timisoara. Facts about Romania Romania thus becomes the second largest Ericsson operation in Europe, after Sweden. Useful contacts "In Romania there are four large companies: Orange, Deutsche Telekom, Vodafone and Digi. We work with three of the big ones... You can assess who the market leader is"- said Arun Bansal, first Vice-president and responsible of markets in Europe and Latin America at Ericsson. The Kathrein business will be incorporated into the Ericsson Network division and will be part of a distinct division for antennas. "In the year when we fulfill 25 years of presence in Romania, we add this production component in Pg. 8/30 the Ericsson portfolio" - said Dragoş Rebegea, country manager of Ericsson Romania. Business Newsletter Romania-Sweden Doing business in Romania (cont.)

IKEA expanding activities in Romania - NEWS Table of contents

IKEA recently opened its second store in Bucharest (in June 2019), after investing EUR 90 million. IKEA Facts about Romanian Pallady is the company’s largest store in southeast Economy Europe’s and is its 431st store in the world. Bilateral Trade

Doing business in Romania Recently Ikea’s owners decided to diversify investments in Romania The parent company in the Ikea group, Ingka Group, is making a billion kronor investment in wind Economic & Financial power in Romania - reports news agency Reuters. The Ingka Group is buying an 80 per cent share News in seven different wind power farms from Denmark’s Vestas for EUR 136 million (almost SEK 1.5 billion). Business opportunities The Vastint Group, which has the same owners as the Inter IKEA group, is taking one step further towards the completion of the residential project that may be worth as much as EUR 1 billion the Sisesti area in northern Bucharest. It has chosen a company to design the project and is working on Tourism the concept of the future minacity. And in October, Vastint - real estate arm of Inter IKEA group stated that will start soon the International events construction of the second phase of the Timpuri Noi Square project.

Facts about Romania IKEA reported sales of over EUR 160 million in Romania in the financial year September 1, 2018 - August 31, 2019, 15.2% higher compared with the previous year. Useful contacts IKEA currently operates the store opened in northern Bucharest, in Baneasa area (with 670 employees) and its second store the Theodor Pallady (where in addition to the over 500 construction jobs created during the shop’s building, approx. 600 employees joined the IKEA family with the opening of the store) “In total, after 12 years of presence on the market, IKEA has created about 1000 new jobs, providing advanced benefits to all employees. We are glad to continue our journey in Romania!” ” – stated Sara Del Fabbro, CEO of IKEA South East Europe. So, the Swedish furniture and home deco retailer Ikea recently announced that is close to Pg. 9/30 signing a deal to acquire a plot of land stretching onto 8 hectares in Timisoara, western Romania, for a future store. Business Newsletter Romania-Sweden Doing business in Romania (cont.)

Defense and security firm SAAB opens Bucharest office, Table of contents targets Navy and civil marine contract

SAAB, the largest Swedish company and Facts about Romanian one of the largest companies in the military Economy industry in Europe, has opened an office in Romania. Bilateral Trade

Doing business in Romania

Economic & Financial SAAB, the largest Swedish company and one of the largest companies in the military News industry in Europe, has opened an office in Romania. The move comes in the context of the Defense Ministry aiming to launch several endowment projects for the Navy Forces, and the representatives of the Swedish Business opportunities companies have said that they are interested in taking part in the construction or upgrade of equipment. Tourism SAAB, one of the few submarine constructors, might also participate in a contract through which Romania could buy submarines, according to the latest statements by the Defense minister. International events The SAAB company is a military equipment supplier for several armies globally, including the German, American armies or various force structures in European Facts about Romania countries like the Czech Republic, Hungary, Poland or Croatia. SAAB officials have stated at an event organized by the Swedish Embassy in Bucharest Useful contacts that they hope to cooperate with the Romanian Army in the navy, terrestrial and air forces. According to the list of priority projects for military endowment, approved by the Parliament, the navy forces programs reach an estimated value of EUR 1.8 billion, which include plans for the purchase of a multifunctional corvette (EUR 1.6 billion) and the upgrade of anti-ship missile launching system (EUR 0.2 billion).

Pg. 10/30 Business Newsletter Romania-Sweden Doing business in Romania (cont.)

“Doing business in Romania” by Nordic companies Table of contents

Business Sweden initiated and financed “The Romania Business Climate”, a survey supported also by the Embassies of Sweden, Denmark, Finland and Norway in Romania. Facts about Romanian The purpose of the survey was to explore how companies with Nordic capital perceive Economy the business climate in Romania, what are the opportunities and challenges of the Bilateral Trade market and to identify areas for improvement and outline future expectations for the Romanian market. Doing business in The survey focused on the following topics: Romania - Business establishment procedures, infrastructure and human capital; - Legislation, taxation and payments; Economic & Financial - Investment environment, regulations and profitability. News The result are based on the answers of 115 respondents, representing 32% of the total number of people, from Nordic companies, who participated to the study conducted by Business opportunities Business Sweden.

Tourism Results of the survey: • Most of the companies think it is easy or very easy to establish a business in International events Romania and rent or buy premises. • The availability of competent staff is very good, the productivity high and the cost level is one of the lowest in EU. Facts about Romania • The legal system is improving and is trusted by Nordic companies. • The transparency of information is growing; the bureaucracy is still there, but it Useful contacts is not really a barrier. • A very good level of English knowledge, higher than in many other EU-countries and many Romanians know several foreign languages. • The communication infrastructure, especially regarding the roads and railways, is improving. • Romania is providing the second fastest internet speed in the World. • Nordic businesses are very welcome in Romania and they feel that the good

Pg. 11/30 reputation of the Nordic countries actually supports them in their business. The majority of the respondents see a bright future for their business in Romania. Business Newsletter Romania-Sweden Economic & Financial News from Romania

Table of contents Romania has a new government led by the liberal

The liberal Ludovic Orban won the support Facts about Romanian of the Parliament for his government, Economy managing to achieve 240 votes, 7 more than the threshold of 233 votes needed. Bilateral Trade The Liberal Party obtained the support of various smaller opposition parties and Doing business in even some votes from the former ruling Romania party PSD.

Economic & Financial News The new government began its mandate on Monday 4th of Nov. 2019, following the official ceremony of taking the oath at the Cotroceni Palace in Bucharest. Business opportunities The new government was proposed by prime minister-designate Ludovic Orban, who was nominated by President following the fall of the Dǎncilǎ government through a Tourism motion of no confidence three weeks ago. In order to pass, the PNL Cabinet needed at least 233 votes, managing to achieve 240. The new cabinet nominates the candidate for the position of EU commissioner, after International events consulting the . The ministers of the new Cabinet are: Facts about Romania Florin Cîțu – Finance Ministry; Virgil Popescu – Economy, Energy and Business Environment Ministry; Ion Ștefan – Public Works, Development and Administration Useful contacts Ministry; Violeta Alexandru – Labour and Social Protection Ministry; Marcel Vela – Ministry of Internal Affairs; Nicolae Ciuca – National Defense Ministry; Ioan Marcel Bolos – European Funds Ministry; Victor Costache – Health Ministry; Bogdan Gheorghiu – Culture Ministry; Monica Anisie – Education Ministry; Bogdan Aurescu – Foreign Affairs Ministry; Catalin Predoiu – Justice Ministry; Lucian Bode – Transport, Infrastructure and Communications Ministry; Nechita Adrian Oros – Agriculture and Rural Development Pg. 12/30 Ministry; Costel Alexe – Environment, Water and Forests Ministry; Ionut Stroe – Youth and Sport Ministry. Business Newsletter Romania-Sweden Economic & Financial News from Romania (cont.)

Table of contents Ministry of Economy, Energy and Business Environment New Ministry in charge with the Romanian foreign trade

Facts about Romanian Economy Bilateral Trade

Doing business in Romania

Economic & Financial News

Business opportunities

Tourism

International events In the presence of the Prime minister, Mr. Virgil-Daniel Popescu, took over his mandate as Minister of the newly created Ministry of Facts about Romania Economy, Energy and Business Environment, which also includes areas of foreign trade and international economic cooperation. Useful contacts

Pg. 13/30 Business Newsletter Romania-Sweden Economic & Financial News from Romania (cont.)

Foreign Direct Investment (FDI) poles in Romania Table of contents FDI net flow stood at EUR 5266 million during the 2018 financial year, according to the statistical survey regarding FDI Facts about Romanian conducted by the National Bank of Economy Romania, in cooperation with the National Institute of Statistics. Bilateral Trade

Doing business in Romania EUR 5 546 million represented enterprises’ equity (equity stakes worth EUR 2 973 million, plus reinvestment of earnings worth EUR 2 573 million), while EUR -280 million debt transactions Economic & Financial (lending to direct investors exceeded borrowing from direct investors). News FDI stock as at 31 December 2018 amounted to EUR 8 1124 million, of which EUR 5 7479 million equity positions, including reinvestment of earnings (70,85%) and EUR 2 3645 million Business opportunities debt positions (29,15%).

Tourism Income from FDI in 2018 Net earnings from equity participation were EUR 6 123 million, representing the net profit International events of FDI enterprises, tantamount to EUR 8930 million, less the loss of EUR 2 807 million of FDI enterprises that incurred losses. Net income from interest, computed by subtracting the interest received by foreign direct Facts about Romania investors on loans granted to their enterprises in Romania from the interest paid by foreign direct investors for the loans received from their enterprises in Romania – either directly or Useful contacts via fellow companies, stood at EUR 672 million. In 2018, FDI net flows went primarily to trade (EUR 1 580 million), followed by manufacturing (EUR 1 362 million). The main industrial sub-sectors benefiting from foreign direct investment were transport equipment (EUR 337 million), food, beverages and tobacco (EUR 329 million) and oil processing, chemical, rubber and plastic products (EUR 205 million). Other economic activities which received large FDI inflows were financial intermediation and insurance (EUR 896 million), and construction and real estate Pg. 14/30 transactions (EUR 581 million). Business Newsletter Romania-Sweden Economic & Financial News from Romania (cont.)

FDI poles in Romania (cont.) Table of contents FDI net flow stood at EUR 5 266 million during the 2018 financial year, according to the statistical survey regarding FDI conducted by the National Bank of Romania, in cooperation with the National Institute of Facts about Romanian Statistics. Economy Bilateral Trade The following sectors reported the largest equity capital (capital increases): manufacturing (EUR 1016 Doing business in million), construction and real estate transactions (EUR 594 million) and trade (EUR 335 million). The Romania highest values for reinvestment of earnings were recorded by manufacturing (EUR 991 million), trade (EUR 843 million) and financial intermediation and insurance (EUR 592 million). In 2018, the intercompany net debt transactions made a negative contribution (EUR -280 million) compared to a Economic & Financial positive contribution of EUR 829 million in 2017. By economic activity of FDI enterprises, the main News sector that benefited from financing via intercompany lending was trade (EUR 401 million). By economic activity, 41,1% of FDI stock were channeled to industry, primarily to manufacturing Business opportunities (30,9%t of total FDI stock), out of which the largest recipients were: transport equipment (6,7% of total FDI stock), oil processing, chemical, rubber and plastic products (6,4%), and metallurgy (3,9%). Another industrial activity, i.e. electricity, gas and water supply, accounted for 7,4% of total Tourism FDI stock. Other activities that also attracted significant FDI were construction and real estate transactions (16,8% of FDI stock), trade (15,8%), financial intermediation and insurance (11,5%). International events Which regions and counties lured the highest number of FDI? FDI went mainly to the BUCHAREST-ILFOV region (60,7%). Other development regions which Facts about Romania attracted significant FDI inflows were: the CENTRE region (9,0%), the WEST region (8,6%), the SOUTH-MUNTENIA region (6,3%), and the NORTH-WEST region (5,7%). By counties, Bucharest has led the ranking, luring investments of EUR 41 273 M, followed by Timis, EUR 4 359 M and Prahova – Useful contacts EUR 2 481 M. The counties that attracted the fewest foreign direct investments were Gorj - EUR 3 M, Mehedinti - EUR 16 M, Teleorman - EUR 87M and Vaslui - EUR 92 M. The biggest foreign investors in Romania The top five countries by share of FDI stock as at 31 December 2018 were: the Netherlands (23,9% of the FDI stock at end-2018), Germany (12,7%), Austria (12,2%), Italy (9,5%) and Cyprus (6,2%). Regarding the ranking of the top five countries, Italy consolidated its fourth position, while Cyprus Pg. 15/30 surpassed France, climbing to the fifth place. Business Newsletter Romania-Sweden Economic & Financial News from Romania (cont.)

FDI stock in Romania approaches EUR 84 bln Table of contents

Facts about Romanian Economy The stock of foreign direct investment (FDI) in Romania rose by EUR 5.5 billion during the Bilateral Trade last year up to EUR 83.8 billion, while investment of local investors abroad remains at Doing business in a modest level. Romania

Economic & Financial News Official data show foreign investors made total direct investment of EUR 83,8 billion in Business opportunities Romania until the end of June 2019, an all-time high, up 7 percent (EUR 5.5 billion) against June 2018. Tourism At the end of 2017, the main countries of origin of FDI in Romania were the Netherlands (25,9 percent), International events Germany (12,8 percent), Austria (12,6 percent), Facts about Romania Italy (6,2 percent) and France (6,2 percent), Useful contacts according to the National Bank of Romania (BNR). In the same time, the BNR data show that Romanian investors made total direct investment of EUR 654,7 million in other countries until the end of June 2019, down 4 percent compared to June 2018, since they prefer to focus on the local market.

Pg. 16/30 Business Newsletter Romania-Sweden Economic & Financial News from Romania (cont.)

Investment fund Mid Europa Partners announced the opening of its office in Bucharest Table of contents

Investment fund “Mid Europa Partners” recently announced the opening Facts about Romanian of its office in Bucharest, as an important Economy step of strengthening its activity on the Romanian market. Bilateral Trade

Doing business in Romania

Economic & Financial News The owner of the retailer Profi, the private healthcare provider Regina Maria and the courier firm Urgent Cargus, the investment fund Mid Europa Partners, announced the opening of its office in Bucharest, as an important step of strengthening its activity on the Business opportunities Romanian market. “The inauguration of the Bucharest office is a natural evolution of our commitment to Tourism Romania, as a result of the growth in local activities following the improvement of the long-term investment climate in Romania. International events Since 2015, we have invested almost EUR 0,5 billion in Profi, the main local supermarket chain in Romania, Regina Maria, a major private operator of premium health services, and, most recently, Urgent Cargus, a courier service provider” - stated Facts about Romania Matthew Strassberg and Robert Knorr, Co-Managing Partners of Mid Europe.

Useful contacts Mid Europa Partners is one of the main investment-oriented private equity funds in Central and Eastern Europe. With offices in London, Budapest, Warsaw, Istanbul and Bucharest, it has raised and managed funds worth a total of approximately EUR 5,2 billion.

Pg. 17/30 Business Newsletter Romania-Sweden Business opportunities - Romanian Companies interested in the Swedish market Table of contents Legendary Dracula Srl. Website: https://legendarydracula.com/en_US/

Facts about Romanian Economy Legendary Dracula Srl. – Romanian Bilateral Trade exporter presents itself: “Passion never dies Recently Romanian wines entered on the government- Doing business in Dracula, the most powerful Romanian myth owned chain of liquor stores in Sweden, Systembolaget - Romania of all times, has evolved through centuries the only one allowed to sell alcoholic beverages that into a modern, outstanding brand, a mark that singles out our country throughout the contain more than 3.5% alcohol by volume. Economic & Financial world. News So, 4 wines from the Legendary Dracula range can now Empowering the mysterious Count as a virtual brand icon for Romania, Legendary be purchased online in Systembolaget: Business opportunities Dracula has chosen to show the world some *Dominion Dracula, Merlot, 2015 – Romania, of the virtues of this land in a manner that will immediately stir interest not only Muntenia, Dealul Mare Tourism among fans of Dracula, but also among *Legend of Dracula, Merlot, 2016 - Romania, people eager to have a taste of the 100% Muntenia, Dealul Mare genuine products crafted according to International events traditional recipes in the heart of Dracula's *Legend of Dracula, Pinot Noir, 2012 - Romania, land. Muntenia, Dealul Mare Facts about Romania Quality is what reunites some of the best *Legend of Dracula, Feteasca Alba, 2017 - Romania, Romanian products under a brand meant to Muntenia, Dealul Mare reinterpret the myth of Dracula in an Useful contacts elevated manner, telling a story of passion, https://www.systembolaget.se/dryck/roda-viner/dominion-dracula-7512901 romanticism, strength, and, most of all, https://www.systembolaget.se/dryck/roda-viner/legend-of-dracula-7395701 https://www.systembolaget.se/dryck/roda-viner/legend-of-dracula-7395701 immortality. https://www.systembolaget.se/dryck/vita-viner/legend-of-dracula-7088801 This special selection includes beverages from the most distinguished local producers, a wide range of premium Legendary Dracula wines are now available on Swedish products, wines and spirits, featuring a alcohol strict market alongside with the Romanian white modern and mature design, celebrated and wine AVINCIS, from Oltenia, Dragasani - Cramposie highly appreciated in international fairs. Pg. 18/30 Selectionata, 2017 and – Avincis, Feteasca Regala, 2016. Taste the legend, share the passion!” Business Newsletter Romania-Sweden Business opportunities (cont.) - Romanian Companies interested in the Swedish market Table of contents Contacts: Social Headquarters: Str. Pădurea Craiului, Nr. 1, Bl. CustomSOFT SRL B2, Ap. 28, Bucharest, Romania Adress: 31A , Bucharest, Romania Tel.: +40 726339893; Fax: +40 31816033623 Facts about Romanian E-mail: : [email protected]; [email protected] Economy Website: www.customsoft.ro Bilateral Trade CustomSoft is in the software market since 2006 and distinguished itself on two Doing business in business lines: e-commerce and custom Romania software (web and mobile). products and services: CustomSoft is specialized in developing * Eva e-commerce, Eva B2B and Eva Marketplace: Economic & Financial business applications in areas such as e- https://www.customsoft.ro/partners/CustomSoftEvaPresentation.pdf News commerce, automotive, retail, distribution, manufacturing and telecommunications. * Maia maintenance platform: https://www.customsoft.ro/partners/CustomSoftMaiaPresentation.p Business opportunities CustomSoft is the creator of Eva e- df commerce platform, a top application in * Merchandising App: this field in Romania, used by companies https://www.customsoft.ro/partners/CustomSoftArtificialIntelligence Tourism like evoMAG.ro, Storepedia.ro or ForSKURecognitionPresentation.pdf TotulDespreMame.ro. * Vision product (face and object recognition): International events Eva is an effective e-commerce platform, with main advantage the https://www.customsoft.ro/partners/CustomSoftEnvisageAIPresentat automating sales processes, promotion ion.pdf Facts about Romania and online marketing, and related * Company’s general presentation: logistics and stock management https://www.customsoft.ro/partners/CustomSoftPresentationAI.pdf workflows. The platform is a support Useful contacts for both retailers and end customers, easily covering mobility needs, Company profiles CustomSoft is looking for: available on mobile devices as a responsive site, but also as a native · Big distribution companies (Food Industry, IT&C, mobile application. Nutritional supplements or pharmaceuticals, or any CustomSoft well-developed internal other types of products); procedures ensure high quality of analysis, · Big manufacturers in the Food Industry (especially development, testing and project beverage producers – beer, soft drinks, bottled Pg. 19/30 management services. So the customers’ water); expectations are always exceeded. · Small banks – below 2% market share. Business Newsletter Romania-Sweden Business opportunities (cont.) - Romanian Companies interested in the Swedish market Table of contents S.C. APICOLA READIVAS Srl Contacts: IOAN GROZA - General Manager VLAD GROZA - Administrator Facts about Romanian 23 Fabricii Str, Hala 4, Baia Mare Economy 430015, Jud. Maramures, ROMANIA Tel.: +40 262 220 011 / 220 020 Bilateral Trade Fax: +40 262 220 033 Apicola Readivas Srl is a Romanian E-mail: [email protected] Doing business in company, registered under the trademark Website: www.honeyderoy.ro Romania HONEY DE ROY, which deals with the export of organic and conventional honey. Assortment of organic honey Economic & Financial The product range offers different honey exported to EU and non-EU countries: News varieties such as: acacia honey, linden honey, polyfloral honey, *Acacia Honey Business opportunities raspberry honey, rape honey, forest honey, and tropical honey - eucalyptus honey, *Linden Honey Tourism orange honey, thyme honey. *Raspberry Honey These honey assortments can be packed in jars International events of 250g, 300g, 350g, 400g and to 15 g in boxes *Polyfloral Honey of 50 and 150 honey sticks, and also in 220l Facts about Romania metal barrels. *Sunflower Honey The honey is filtered, homogenized and duly Useful contacts analyzed. *Polyfloral Mountain Honey For each label of honey analyzes are made by etc… laboratories such as QSI. Honey comes exclusively from the Romanian territory, in Transylvania region, being carefully selected from beekeepers who respect bees. Pg. 20/30 From 2018, the company Apicola Readivas Srl is Certificated BIO. Business Newsletter Romania-Sweden Business opportunities (cont.) - Romanian Companies interested in the Swedish market Table of contents S.C. HELIOTROP FASHION DESIGN Srl Contacts: Mrs. Ana ZDRAVCU - owner 114 Dristorului Str., Bucharest, Sect.3, Facts about Romanian ROMANIA Economy Tel.: +40 754547074 Bilateral Trade E-mail: [email protected] HELIOTROP is a fashion design and Website / Online Store: www.heliotrop-fashion.com Doing business in manufacture company, producing mainly Romania women's wear. However their collections include a large range of products – women's clothes, men's clothes, Economic & Financial Online store: www.heliotrop-fashion.com News children clothes. HELIOTROP started designing and producing Heliotrop shows there its MADE Business opportunities coats in 1992 and become shortly very well IN ROMANIA collections of clothes known and loved because of them! and Tourism Find more info as well as a selection of proudly states that “to sparkle in photos from the latest collections on the the street, at work or at events, International events website www.heliotrop-fashion.com. choose from this online shop Currently HELIOTROP is expanding its operations world class coats, at Romanian Facts about Romania abroad and would very much like to include prices!” more companies among their partners – as suppliers or customers. https://heliotrop-fashion.com/index.php?id_lang=1 Useful contacts Feel free to contact them for details, either interested to be a supplier or wanting to order / buy (online shop) coats or different other types of clothes for women, men, children. Contact directly in case of big orders; HELIOTROP is prepared with the necessary logistics to produce the same quality as seen on its website and to work Pg. 21/30 with subcontractors, if necessary, to answer to its customers needs. Business Newsletter Romania-Sweden Business opportunities (cont.) - Romanian Companies interested in the Swedish market Table of contents S.C.GREEN FIRST FARM Srl Contacts: S.C.GREEN FIRST FARM S.R.L. Str. UNIRII bl.13G, et. 2 ap.3, Facts about Romanian BUZAU, ROMANIA Economy Tel: +40 742 070 775 GREEN FIRST FARM – Romanian company of E-mail: [email protected] Bilateral Trade Website: www.catinaecologica.ro organic agriculture, producing and harvesting sea Doing business in buckthorn (Hipophae Rhamnoides) through an Romania ecological and environmentally healthy manner, checked by trusted international certification bodies. Green First Farm’s PRODUCTS Economic & Financial Green First Farm states that is able to maintain the (on their brand ENERGOVITA): News fruits natural benefits and properties from harvesting, delivery and storage, sorting, packaging - FROZEN SEA BUCKTHORN BERRIES (fruits frozen at -400C) Business opportunities to dispatch. Thus, in any form the fruit is sold - fresh, juice, oil, - ORGANIC OIL (delivered in bulk or packed in 20 ml. or 50 ml.; starting with Tourism powder or dehydrated - the costumers find a the 2019 harvest, can deliver the oil as a healthy source of vitamins! dietary supplement - in capsules!) International events Green First Farm strongly believes in virtues of - DRIED SEA BUCKTHORN BERRIES sea buckthorn berry - “miracle fruit”/“superfood” (delivered in bulk or tub box of 70 gr. or bag (with a high rank on the ORAC scale), rich in of 50gr/100gr) Facts about Romania OMEGA-3, 6, 7, 9, BETA-CAROTENE, FOLIC ACID - SEA BUCKTHORN POWDER – RAW and VITAMINS C, A, B1, B2, E and K. ORGANIC POWDER (delivered in bulk or So, its offer is dedicated to health, in tub box of 60 gr./ 70 gr; after 2019 Useful contacts harvest, can deliver powder also as a dietary pharmaceutical and beauty care industries, as supplement - in capsules!) well to the HoReCa sector; thus contributing to the preservation and improvement of human - ORGANIC SEA BUCKTHORN TEA health and to skin care. (delivered in tub box of 40 gr./50 gr. and paper bag of 50 gr.) Green First Farm offers two ecological sea buckthorn - ORGANIC SEA BUCKTHORN JAM varieties: MARA (early-August, large, yellow-orange, (simple or combined with organic peaches) Pg. 22/30 juicy pulp fruit) and CLARA (later-Sept., large, intense yellow-orange fruit). Business Newsletter Romania-Sweden Business opportunities (cont.) - Romanian Companies interested in the Swedish market Table of contents Contacts: DEVA STEEL CORPORATION SRL E. Victor LEU – General Director Piata Iancu de Hunedoara, no. 1, Hunedoara, ROMANIA Facts about Romanian Tel: +40 722 141125 Economy E-mail: [email protected] Bilateral Trade The business scope of DEVA STEEL CORPORATION Website: www.catinaecologica.ro is the manufacture of metal structures and parts of Doing business in metal structures. DEVA STEEL CORP’s Romania The entire production process takes place in its PRODUCTS: own workshop, starting from raw materials Economic & Financial introduced in fabrication up to assembly products - LIGHT METAL CONSTRUCTION News ready for blasting and painting; main attention is (industrial and civil construction of paid to the welding process. pillars, beams, farms, Business opportunities DEVA STEEL CORPORATION is working with a stairs, gangways) qualified, specialized staff (welders, fitters, CNC Tourism and plasma operators, lathe operators, etc.). - MEDIUM METAL CONSTRUCTION DEVA STEEL CORPORATION’s declared objectives are: (industrial and civil construction of metal International events sheet, profiles, farms, pipes - weighing up - Full satisfaction of all requirements and to 5 tons) expectations of customers by offering products Facts about Romania and services to the highest quality standards; - Ensuring a favorable position for the company in - WELDED STEEL STRUCTURES FOR the European market in terms of quality of RAILWAY INDUSTRY / PARTS FOR Useful contacts manufactured products; - Develop business flexibility in approaching RAILWAY CARS MADE OF METAL products and services "turnkey" leading to top SHEET AND PROFILES areas. The DEVA STEEL CORPORATION products Certifications: made on: plates plasma cutting machine with source of 260A with CNC; bending machine Abkant 220 tons with CNC; blasting cabin 15x5x3m; MIG-MAG Welder last generation; Pg. 23/30 semiautomatic saw for profiles cutting; painting cabin with controlled temperature. Business Newsletter Romania-Sweden Business opportunities (cont.) - Romanian Companies interested in the Swedish market Table of contents AMEL INTERNATIONAL GROUP SRL Contacts: AMEL Factory - Ceptura de Jos, Prahova County, ROMANIA Facts about Romanian Tel: +40 722 141125 Economy E-mail: [email protected] Website: www.amel.ro Bilateral Trade The AMEL factory produces PVC, aluminum, wood, Doing business in double-glazed windows and accessories. Romania AMEL’s AMEL declares: PRODUCTS: - to use the latest technology and work with Economic & Financial precision robotic systems; - INTERIOR DOORS News - to have obtained excellent results in terms of (in different designs, made of solid, high thermal and sound protection; quality, elegant wood) Business opportunities - to pay attention to customers’ requirements, its specialists dealing with any of their requests; - to deliver anywhere, by using their partners’ Tourism - ALUMINUM JOINERY support. (PROFILCO, ALUMIL, REYNAERS) From 2018, AMEL is using the TETRAPAN, or the International events “double double-glazing”, a new generation of highly - STRATIFIED WOOD JOINERY performing windows. (SOFTWOOD, MERANTI, OAK) Facts about Romania In 2016 AMEL launched a superior product - the PVC joinery with polyurethane filling, with high thermal - SHADING PRODUCTS Useful contacts and acoustic protection levels. (shutters and rolls) AMEL states having “custom solutions and - ACCESORIES FOR DOUBLE-GLAZING unbeatable prices for PVC windows with double- WINDOWS glazed windows!” (sills, blinds, insects screens) AMEL has dedicated assembly teams in Romania Pg. 24/30 and Germany, for thermal rehabilitation works at residential complexes. Business Newsletter Romania-Sweden Business opportunities (cont.) - Romanian Companies interested in the Swedish market Table of contents The Chamber of Commerce and Industry of Romania Contact: Mihai Daraban – President

CCIR Business Center Facts about Romanian 2 Octavian Goga Bvd., Economy Bucharest 030982, Romania Bilateral Trade Tel.: +40 21.319.00.93 The Chamber of Commerce and Industry of Fax: +40 21.319.01.56 Doing business in Email: [email protected] Romania is presenting itself as one of the Website: https://ccir.ro/en/ Romania most important forums for representing Romanian businessmen for the last 150 years. Economic & Financial News The rebirth of the Chamber System was marked, after Dec. 1989, by the Law no. 139/1990. Business opportunities The new Chambers of Commerce have been granted the status of non governmental Tourism organizations, associative to the business News: environment; they became the main pillars of International events the market economy, dominated by private The Chamber of Commerce and Industry of entrepreneurs. Romania has published the 113-th edition of Facts about Romania the InfoBulletin - Romanian business offer. The current organization is similar with the This is available to be downloaded from its system in place from 1925, with a Chamber of online version in the CCIR website at: Useful contacts Commerce in every county seat, grouped www.snia.ro/infoBulletin/iBno113.pdf under the Chamber of Commerce and Industry of Romania (CCIR). Interested companies could have so a better knowledge of both the Romanian business communities and the development of mutual trade relations.

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Romanian tourism sector has a slightly recovery The Department of Table of contents by mid year, after figures dropping Tourism (part of the new in the first months Ministry of Economy, Energy and Business Environment) is in charge with the of 2019 national tourism development strategy, acting to promote Romania on the Facts about Romanian world touristic map. Economy Contact: 38 Bd. Dinicu Golescu, Bilateral Trade Bucharest, Romania Tel.: +40 213037891; Fax: +40 213037893 Doing business in According to National Tourism Statistics, in June 2019, the figures are better than the previous months of the year. So, E-mail: [email protected] Romania www.turism.gov.ro; www.romania.travel 8.3% more tourists were reported by hotel owners (namely 1.21 million), driven by 11.8% more Romanian tourists (who Economic & Financial To know more, used also their holiday vouchers). Yet, the foreign tourists *use “Explore Romania - Official App” News were less (by 2.6%) compared to June 2018. (Apple iOS and Android) – In general, for the first semester of 2019 the number of an interactive guide Business opportunities tourists who checked into Romanian hotels dropped by of Romania's main 4.4% year-on-year in the period (to 5.26 million). And the tourist attractions number of foreign tourists plunged by 15.9% (to 1.27 http://explore-romania.eventya.net/ Tourism million), in contrast to the more moderate 0.9% decline in the number of Romanian tourists (to 3.99 million). *follow the portal http://newsturism.ro/ - created to connect providers of International events However, the number of nights spent in Romanian tourism-related events with the public, accommodation facilities are slightly better (-12.3% the foreign tourists, versus +2.2% the local ones) thanks to the Facts about Romania longer average stay for both categories. *open: http://turism.gov.ro/web/wp- content/uploads/2017/06/Brosura_MT_engleza. The 2019 most visited cities are Bucharest, Brașov, Constanța, pdf, etc. ... Useful contacts Cluj-Napoca, Mangalia, Timișoara. The capital is still the main destination and has more foreign tourists than local ones. Natural touristic attractions include the Danube, the Carpathian Mountains and the Black Sea.

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Table of contents 2019

https://www. romexpo.ro/ wp- content/uplo ads/2018/12/ Facts about Romanian PROGRAM- EXPO- Economy 2019_ENG- Bilateral Trade 3.pdf * Please follow the Doing business in link: The Schedule Romania of 2019 Exhibitions Organized Economic & Financial by ROMEXPO News is constantly updated! Business opportunities

Tourism

International events

Facts about Romania

Useful contacts

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Table of contents 2019

https://www. romexpo.ro/ wp- content/uplo ads/2019/01/ Facts about Romanian PROGRAM- EXPO- Economy 2019_ENG- Bilateral Trade Terti.pdf * Please follow the Doing business in link: The Romania Schedule of 2019 Exhibitions Hosted Economic & Financial by News ROMEXPO is constantly updated! Business opportunities

Tourism

International events

Facts about Romania

Useful contacts

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Location, geography and climate Table of contents Romania is situated in the southeastern part of Central Europe, on the shores of Black Sea, extending approximately 300 miles north to south and 400 miles east to west. Romania’s territory Facts about Romanian features mountains, hills, plains and numerous rivers and lakes. Economy Forests cover one quarter of the country and the fauna is one of Bilateral Trade the richest in Europe (including bears, deer, lynx, chamois, wolves). The Danube River ends its eight-country journey at the Black Sea, after forming one of the largest and most Doing business in bio-diverse wetlands in the world, the Danube Delta. Romania is an all round year Romania destination, having a temperate climate with four distinct seasons. Economic & Financial News Politics and economy Romania is a parliamentary democracy based on European models and a member state Business opportunities of the EU and the NATO. In the 1930s, Romania was one of the main European producers of wheat, corn and Tourism meats and it used to be called “the bread basket of Europe.” International events In the 1950s started the development of the heavy industry. Today, Romania produces coal, natural gas, iron ore and petroleum. Industries include Facts about Romania chemical (petrochemical, paints and varnishes), metal processing, machine manufacturing, information technology, industrial and transport equipment, textiles, Useful contacts manufactured consumer goods, lumbering and furniture. About 39.2% of Romania’s territory is arable land, 28% forests, 21% pastures, hayfields and orchards and 2.5% vineyards. Corn, wheat, vegetable oil seeds, vegetables, apples and grapes for wine are the main crops and sheep and pigs the main livestock. Forestry and fisheries are also developed.

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More info on: www.romania.travel, the Official Tourism Site of Romania Business Newsletter Romania-Sweden Useful contacts

Table of contents Presidency of Romania www.presidency.ro Government of Romania www.gov.ro Facts about Romanian Parliament of Romania www.parlament.ro Economy Ministry for Economy, Energy and Business Environment Bilateral Trade www.imm.gov.ro; www.economie.gov.ro Doing business in Foreign Direct Investment Department www.investromania.gov.ro Romania Ministry of Foreign Affairs www.mae.ro National Bank of Romania www.bnr.ro Economic & Financial News National Institute of Statistics www.insse.ro National Trade Register Office www.onrc.ro Business opportunities Customs National Authority www.customs.ro Tourism Official Journal of Romania www.monitoruloficial.ro Chamber of Commerce and Industry of Romania www.ccir.ro International events Official Tourism Site of Romania www.romania.travel Facts about Romania National Weather Administration www.meteoromania.ro Bucharest Henri Coanda International Airport www.bucharestairports.ro Useful contacts Port of Constanta www.portofconstantza.com Embassy of Romania in Stockholm http://stockholm.mae.ro/en Department of International Trade www.dce.gov.ro Trade Office of Romania in Sweden (email: [email protected])

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