EY: Romania is in an attractive position for investors

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Romania has remained a favorite destination for investors in Eastern Europe, after two years of pandemic and given the situation in Ukraine, according to an EY study.

Romania ranked 16th (4%) out of 32 countries in the ranking of the most attractive countries for investment in 2022, surpassing countries such as Hungary (2%) and the Czech Republic (2%) and is close to Poland, whose percentage is 6%, reveals the EY study, quoted by SpotMedia.

In 2022, 56% of foreign companies intend to set up or expand their operations in Romania, which puts us in fourth place, tied with France and behind Portugal (62%), Lithuania (60%) and the United Kingdom ( 58%). At the same time, Romania is above the European average, which is 53%.

However, Romania should focus on the long-term outlook for the next three years, given the forecasts, which show that attractiveness will fall from 41% in 2021 to 34% in 2022.

However, the current situation could give rise to a paradox, because Romania has many opportunities in the future.

One of them is the relocation of Ukrainian companies. Romania is in a privileged position at European level in terms of the plans of executive leaders to relocate their business support services and supply chain functions in Europe (reshoring and nearshoring operations) to minimize the impact of future disruptions.

At European level, Bucharest ranks 25th out of 44 cities, surpassing capitals such as Budapest, Vilnius, Riga, but also important European cities such as Munich, Porto, Rotterdam, Geneva, Valencia.

In 2021, Bucharest was clearly the most targeted city in Romania for FDI, leading the ranking with 38.9%, while the western region accounted for 19.5% of foreign direct investment, the only representatives being the counties of Arad and Timiș.

However, the gap between the Western region and Bucharest may be almost equal in terms of investors’ plans for this year. Almost a quarter of future investments in Romania (24%) will be attracted by the West region, the main county in this area being Sălaj, with 9% of investments, followed by Arad, Timiș and Bihor, all with 5% each.

Muntenia is on the third place, Argeș and Prahova being the only representatives, each with 3.5% of the total investments. On the other hand, the northeastern area of ​​Romania is represented by Neamț County (1.8%) and Suceava County (1.8%).

In the southern part of Romania, the only county that will attract investment, according to respondents, is Teleorman, with 1.8% of the total.

Different from last year is the fact that counties such as Sibiu, Brașov or Ilfov are not destinations for investments in the opinion of investors.

Currently, Romania is the most desired destination for investments in 2022 in terms of supply chains and logistics.

The major difference from last year is the growing popularity of business support services, which have outpaced production. The highest increase was registered by research and development projects, from the seventh place in 2021, to the fourth place in 2022.

In 2021, investors considered that the three main priorities that Romania must pay attention to are: supporting small and medium enterprises, encouraging environmental protection policies and attitudes and increasing the quality and added value of products.

In 2022, the two main priorities remained the same, emphasizing a strong message to the public and private sectors in Romania, namely that SMEs and the environment must remain the most important topics. However, in 2022, the third position is occupied by innovation and the advanced technology sector. This topic rose eight positions compared to last year.