- Business Relationships
- Foreign direct investment
- FTAs and Treaties
- Development Cooperation
- Prospective fields of study (MOP)
Trade relations with the EU
|Exports from the EU (million EUR)||44,915.1||49,095.9||50,255.4||45,771.2||ON|
|Imports into the EU (million EUR)||55,582.50||60,123.70||62,745.20||59,230.10||ON|
|Balance with the EU (million EUR)||10,667.3||11,027.8||12,489.7||13,458.9||ON|
Source: European Commission
Trade relations with the Czech Republic
Romania is one of the largest trading partners of the Czech Republic in the region of South-Eastern Europe, it is the 15th-16th. the most important export territory. According to the Romanian Commercial Register, there are 1,198 Czech companies in Romania as of January 1, 2022. It is possible to add to this number other Czech companies that do business in Romania without registration and manage their business remotely or in the form of business trips.
|Exports from the Czech Republic (billion CZK)||51.2||66.1||70.7||69.1||ON|
|Imports to the Czech Republic (billion CZK)||59||54.2||58.1||52.8||ON|
|Balance with the Czech Republic (billion CZK)||8||-12||-12.6||-16.3||ON|
Trade relations with countries outside the EU
The Romanian economy is closely linked to the economy of the European Union. The main trading partners of Romania are EU member states. According to preliminary data, there is an increase in Romania’s trade deficit, in October 2021 it was an increase of 37% compared to the same period in 2020. The trade deficit for the last 12 months (February 2021-February 2022) reached EUR 2billion, which is approx. 10% of GDP. The external deficit, along with the public deficit, is one of the key elements preventing Romania from achieving better ratings. Romania thrives in the export of food, animal and vegetable oils, mineral fuels, automobiles, machinery and equipment. Imports are dominated by food and chemicals.
The top ten countries to which Romania exported the most were Germany, Italy, France, Hungary, Great Britain, Bulgaria, Turkey, Poland, Spain and the Czech Republic.
The top 10 countries from which Romania imported the most were Germany again, followed by Italy, Hungary, Poland, France, China, the Netherlands, Turkey, Austria and Russia.
|Exports from countries outside the EU (million EUR)||15,230.2||18,328.60||18,411.70||16,004.30||19,829.50|
|Imports to countries outside the EU (million EUR)||17,077.4||22,984.7||19,361.1||20 116.1||ON|
|Balance with non-EU countries (million EUR)||-1,847.1||-4,057.7||-3,953.8||-4,643.0||ON|
Source: EIU, Eurostat
Foreign direct investment
1 General comment on the state of foreign direct investment (FDI) in the country
In Romania, investors continue to encounter insufficient infrastructure, differences in the development of individual regions, differences between the city and the countryside, and a lack of qualified labor. A persistent problem is also the lower predictability of the legislative environment.
Foreign direct investment in Romania increased to €7.251 billion in 2021 from €3 billion in 2020.
The volume of foreign direct investment in Romania is starting to increase again. They rose to €926 million in the first two months of 2022 from €844 million in the same period of 2021. Equity investments (including estimated net reinvestment of profits) reached €1.182 billion and inter-company loans reached a net negative of €256 million at the end of February.
2 FDI of the Czech Republic in the country
In 2019, the Czech Republic successfully ranked 12th in the ranking of the largest foreign investors. According to the National Commercial Register of Romania, the total amount of invested capital from the Czech Republic amounted to more than EUR 1.21 billion. From the point of view of the CNB, Czech direct investments in Romania within the territorial structure were in 6th place with 3.6% (data as of May 2020)
In 2021, the company Rohlík.cz, which operates in the country under the name Sezamo, is preparing to enter the Romanian market and by the end of 2022 wants to employ approx. 1000 people. CEZ Romania was among the largest Czech investors until 2021 with an investment of approximately EUR billion in the production of energy from renewable sources. Its two wind farms, with a total installed capacity of 600 MW, represent the largest project of its kind in Europe, and the wind farm’s output represents roughly a 10% share of the Romanian renewable energy market. Although ČEZ has already sold its acquisition, it has at least partially helped to open up opportunities in Romania for other Czech companies. Among the main ones is the CPI Property Group, with 5 development projects (Mogosoaia Residence, Boulevard Timisoara 101C residence, Airport City, Pro Tower, Pipera Central). A significant investor (in the area of gas distribution) is PPF Investments, which owns a majority stake in Gaz Sud. Other companies that have invested in Romania include, for example, Zentiva (acquired a majority in Sicomed), Hamé (Romconserv Caracal and Antrefrig Bucharest), Renomia, Syner, CTP Invest (20 industrial parks + 2 under construction) or Penta Investments, which in Romania, it took over the gaming and betting companies Bet Active and Bet Zone. A subsidiary of the manufacturer of ergonomic office chairs of the Czech Antares group has completed the construction of a new production plant in Remetea, Harghita county, in the amount of 800 thousand. EUR and is expanding and modernizing its production halls in the city of Cluj-Napoca. RC Reinvest, which has been successfully operating as a developer on the Romanian market for several years, is preparing a new project in Bucharest.
FTAs and treaties
Treaties with the EU
The FREE TRADE AGREEMENT (FTA) between Romania and the Republic of Moldova was signed on 15/02/1994.
Romania has been a member of the European Union since 2007 (it is not part of the Schengen area). According to the European Commission, Romania’s main task should be to eliminate bureaucracy and increase investment in education, healthcare and infrastructure. With regard to the mentioned shortcomings, the European Commission classifies Romania among countries with macroeconomic imbalances. Access to the Schengen area is a government priority.
Representation of the EU in the country Since 1 January 2007, the Representation of the European Commission has been operating in Romania. Contact address: Strada Vasile Lascăr 31, 020492 Bucureşti, Romania Tel: 0040-21-203.54.00; fax 0040-21-3168808 Email: [email protected]
Contracts with the Czech Republic
- Agreement between the Federal Committee for Technical and Investment Development of the Czechoslovak Socialist Republic and the Nuclear Energy Committee of the Romanian Socialist Republic, Prague, 18 November 1969
- Protocol between the government of the Czech and Slovak Federative Republic and the government of Romania on the settlement of mutual claims and obligations in payment relationships existing as of 31 December 1990, connected with the transition to accounting in freely convertible currencies from 1 January 1991, Brno, 11 September 1991, No. 177/1992 Coll.
- Treaty between the government of the Czech Republic and the government of Romania on the prevention of double taxation and the prevention of tax evasion in the field of income and property taxes, Bucharest, November 8, 1993, No. 180/1994 Coll.
- Agreement between the Czech Republic and Romania on cooperation in the fight against organized crime, illicit trade in narcotic and psychotropic substances and precursors, terrorism and other serious criminal activities, Prague, 13 November 2001, No. 33/2003 Coll. ms
- Protocol between the government of the Czech Republic and the government of Romania on the amendment of the Agreement between the government of the Czech Republic and the government of Romania on the support and mutual protection of investments, Prague, 22 January 2008, No. 60/2009 Coll.ms
- Agreement between the Ministry of Agriculture of the Czech Republic and the Ministry of the Environment, Water and Forest Management of Romania on cooperation in the field of forestry, 9 June 2015, No. 37/2016 Coll.ms
Provision of development funds and EU instruments
The European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) are active in Romania. In recent years, the EBRD has supported several significant investments, which were mainly aimed at urban infrastructure and the restructuring of state-owned enterprises. In Romania, the EBRD focuses mainly on supporting stability and expanding products in the financial sector, on strengthening infrastructure through greater efficiency and greater involvement of the private sector, on projects in the field of water supply and sewerage, waste management, in the field of district heating, etc. Other projects concern the areas, which help improve operational efficiency, service levels and reduce dependence on public subsidies and state funding.
An important project area is also the reconstruction of the energy sector and the increase of energy efficiency and sustainability. For entrepreneurs from the Czech Republic, there are opportunities for cooperation, e.g. in the form of subcontracting.
Prospective fields of study (MOP)
Perspective field 1
Transport industry and infrastructure
The approved National Recovery and Resilience Plan provides for transport with a total amount of approximately €7.2 billion. It is crucial for Romania that 27% of NPO funds go to infrastructure. For Czech companies in this sector, for example, smart technologies for traffic management, production and supply of transport technology and related technologies for the gradual construction of railway and highway corridors, construction mechanization, machinery and technology, reinforced concrete and bridge structures can be promising.
Perspective field 2
Agricultural and food industry
The approved National Recovery and Resilience Plan calculates, for example, about €billion in afforestation, the fight against illegal deforestation and biological diversity. For Czech companies, it may be promising for example: healthy food, technology for the processing industry, e.g. supplies of bakery machines, beverage lines, etc., production and supply of agricultural machinery and other technical equipment for farms and agricultural operations, production and supply of irrigation technologies, piggery equipment, poultry farms, etc. We consider the opportunities in the field of smart agriculture to be promising – i.e. systems for the efficiency of water management and fertilization.
Perspective field 3
Romania spends 2% of GDP on defense. Significant acquisitions are expected or already underway, including modern firefighting equipment, search and rescue helicopters, special vehicles and ambulances, etc. For example, participation in rearmament, airport equipment, special material, medical supplies may be promising for Czech companies.
Perspective field 4
Healthcare and pharmaceutical industry
The approved National Recovery and Resilience Plan estimates approximately €billion for the development and modernization of the health infrastructure. For Czech companies, there are prerequisites for the production and export of: medical devices and equipment, medical equipment, aids and equipment for medical workplaces, including specific supplies of, for example, protective equipment in the context of the situation caused by the COVID-19 pandemic and the solution to the consequences. Modern parapharmaceuticals, over-the-counter food supplements and consumables are in general demand on the market.
Perspective field 5
The approved National Recovery and Resilience Plan calculates about €billion under the research and innovation item. For Czech companies, for example, the possibilities of supplying technologies, or specialized SW for managing industrial operations and call centers, supply of SW solutions for the protection of company data, growing trend in the field of smart technologies. An interesting topic is the digitization of banking and services.
Perspective field 6
Financial resources for the construction industry are allocated cross-sectionally in the National Recovery Plan in the amount of approx. €15 billion. For Czech companies in this sector, for example: production and supply of building materials and technologies, machines and equipment can be promising. Building raw materials and materials and construction technology of buildings, industrial and technical equipment of construction sites, delivery of construction works or construction supervision according to the investor’s request are in demand.