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© Romanian Central Bank |
Statistical Survey on Foreign Direct Investment (FDI) in Romania in 2007
The statistical survey was conducted by the National Bank of Romania and the National Institute of Statistics. The major goal of the survey was to determine the stock of FDI as of 31 December 2007 based on the stock extant at the beginning of 2007 and on the flows during 2007 of resident direct investment enterprises.
1. FDI net flow in 2007
EUR 7,250 million of which:
- EUR 2,220 million equity stakes (31%);
- EUR 1,327 million net reinvested earnings (18%);
- EUR 3,703 million net credit received from foreign investors (51%).
2. FDI stock as of 31 December 2007
EUR 42,770 million, of which:
- EUR 31,501 million equity stakes (74%);
- EUR 11,269 million net credit received from foreign investors (26%).
2.1. FDI by main economic activity
By economic activity (according to NACE Rev. 1), the bulk of FDI went to manufacturing (32.9 percent of total), out of which the largest recipients were: metallurgy (7.5%), food, beverages and tobacco (5.2%), oil processing, chemicals, rubber and plastics products (4.4%), transport means (3.6%) and cement, glassware, ceramics (3.5%).
FDI stock at 31 Dec. 2007 (table)
Other activities that have attracted significant foreign direct investment are financial intermediation and insurance, which include banking and insurance and account for 23.3% of total FDI stock, wholesale and retail trade (14%), construction and real estate (7.8%) and telecommunications (6.5%).
Tangible and intangible fixed assets stood at EUR 21,398 million at end-2007 and accounted for 50% of total FDI, thus inducing a considerable degree of foreign investment durability.
Substantial FDI in tangible and intangible fixed assets was recorded in industry (26.8 percent of total FDI), namely manufacturing (20.4 percent of total FDI, out of which metallurgy held 4.5 percent of total FDI), wholesale and retail trade (7.2 percent), telecommunications (4.5 percent), which largely overlap the fields benefiting from most of FDI.
2.2. FDI distribution by development region
From a territorial point of view, FDI went mainly to Bucharest-Ilfov region (64.3%), other development regions benefiting from significant FDI inflows were CENTER region (8.3%), SOUTH region (6.9%), SOUTH – EAST region (5.7%) and WEST region (5.5%).
| EUR million | % of total FDI | |
| TOTAL, of which: | 42,770 | 100.0 |
| BUCHAREST | 27,516 | 64.3 |
| CENTER | 3,541 | 8.3 |
| SOUTH | 2,942 | 6.9 |
| SOUTH -EAST | 2,448 | 5.7 |
| WEST | 2,365 | 5.5 |
| NORTH - WEST | 1,907 | 4.5 |
| SOUTH - WEST | 1,379 | 3.2 |
| NORTH -EAST | 672 | 1.6 |
2.3. FDI by country of origin
The distribution took into account the country of origin of the direct holder of at least 10 percent in the resident direct investment enterprises’ share capital on an “immediate country basis”.
Top 5 countries by the share of total FDI stock as at 31 December 2007 are: Austria (21.4 percent of total stock at the end of 2007, down from 23 percent a year earlier), the Netherlands (16.3 percent, slightly down from 17.1 percent in 2006), Germany (11.7 percent compared with 10.1 percent in 2006), France (8.8 percent compared with 8 percent in 2006), and Greece (7.5 percent, staying flat year on year).
| EUR million | % of total FDI | |
| TOTAL, of which: | 42,770 | 100.0 |
| Austria | 9,161 | 21.4 |
| The Netherlands | 6,988 | 16.3 |
| Germany | 5,02 | 11.7 |
| France | 3,759 | 8.8 |
| Greece | 3,192 | 7.5 |
| Italy | 2,617 | 6.1 |
| Switzerland | 2,191 | 5.1 |
| Cyprus | 2,015 | 4.7 |
| Turkey | 822 | 1.9 |
| Hungary | 738 | 1.7 |
| Luxembourg | 633 | 1.5 |
| USA | 581 | 1.4 |
| Other | 5,053 | 11.9 |
3. FDI Types
The flow of equity capital in FDI enterprises is divided into: greenfield, mergers and acquisitions and corporate development (see methodological issues).
FDI in 2007 by type of investment and by main economic activity is shown below:
Greenfield / Mergers and acquisitions / Corporate development (table)
The accumulation of foreign direct investment in enterprises established as greenfield investment companies, called greenfield enterprises, was highlighted in order to assess the lasting impact of greenfield investment on the economy.
The distribution of the FDI stock in greenfield enterprises by main economic activity at end-2007 was as follows:
TOTAL FDI / Foreign direct investment in greenfield enterprises (table)
4. Exports and imports of FDI enterprises
Exports (FOB) / Imports (CIF) (table)
The activity of foreign direct investment enterprises as a whole had a positive impact on Romania's trade balance, its contribution to total exports and total imports being 70.8% and 59.2% respectively.
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A number of 5,918 enterprises were subject to comprehensive survey, including enterprises with 20 or more employees (5,760 entities), all credit institutions with foreign capital (38 entities), all insurance undertakings with foreign capital (32 entities), as well as enterprises referred to as atypical (all foreign direct investment enterprises whose turnover or share capital is of at least RON 30 million, i.e. 88 entities).
Representativeness at the level of development region and NACE division is ensured by direct investment enterprises subject to comprehensive survey holding 91 percent of total FDI stock as at 31 December 2007.
Out of the direct investment enterprises that were not subject to comprehensive survey (around 37,800) a sample comprising 1,119 entities was selected. The total number of entities subjected to the survey (comprehensively + sample) equalled 7,037.
Based on the coefficients of variation arising from the extension of data reported by the enterprises included in the sample, the final results of the FDI survey at end-2007, stocks and flows, have an error margin of ±3 percent, a probability of 97% percent being warranted.
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Statistical Survey FDI 2007.pdf, 33 Kb
