NBR: Foreign Direct Investment in Romania in 2011

The statistical survey regarding foreign direct investment (FDI) was conducted by the National Bank of Romania and the National Institute of Statistics. The major goal of the statistical survey was to determine the FDI stock as of 31 December 2011 and the FDI flows during 2011 financial year into the resident direct investment enterprises.

 1. FDI net flow in 2011 stood at:

EUR 1,815 million, of which:

• • EUR 1,512 million - equity stakes¹(83.3 percent); 
• • EUR 303 million - net credit from foreign investors (16.7 percent).

2. FDI stock as of 31 December 2011 amounted to:

     EUR 55,139 million, of which:

• • EUR 37,001 million - equity stakes, including reinvested earnings (67.0 percent); 
• • EUR 18,138 million - net credit from foreign investors (33.0 percent). 

2.1. FDI stock by main economic activity

By economic activity (according to NACE Rev. 2), the bulk of FDI went to manufacturing (31.5 percent of total), out of which the largest recipients were: oil processing, chemicals, rubber and plastic products (6.3 percent), transport means (5.2 percent), metallurgy (4.9 percent),  food, beverages and tobacco (4.1 percent) and cement, glassware, ceramics (3.2 percent). 

 Foreign direct investment stocks in Romania as of 31 December 2011

Breakdown by main economic activity

Apart from industry, activities that also attracted significant FDI were financial intermediation and insurance (18.2 percent of total FDI stock), trade (11.4 percent), construction and real estate transactions (10.7 percent), and information technology and communications (5.4 percent).

Tangible and intangible fixed assets stood at EUR 27,153 million at end-2011 and held 49.2 percent of total FDI, thus leading to considerable foreign direct investment stability.

2.2. FDI stock by development region

From a territorial point of view, FDI went mainly to BUCHAREST-ILFOV region (61.7 percent). Other development regions benefiting from significant FDI inflows were: CENTRE region (7.6 percent), SOUTH-MUNTENIA region (7.4 percent), WEST region (7.2 percent) and SOUTH-EAST region (5.4 percent).

The statistical research located FDI by registered office, which is not always the same as their business place.

2.3. FDI stock by country of origin 

The breakdown of FDI stock by country of origin took into account the country of origin of the direct holder of at least 10 percent in the share capital of resident FDI enterprises on an "immediate country basis”.

Top 4 countries by share of FDI stock as of 31 December 2011 were the Netherlands (21.7 percent of the FDI stock), Austria (17.5 percent), Germany (11.4 percent) and France (9.1 percent), the same ranking since 2009. 

3. Types of FDI 

The flow of equity stakes into FDI enterprises amounting to EUR 4,009 million is divided into greenfield, mergers and acquisitions and corporate development.

In 2011, out of the total FDI equity flow, 97.2 percent (EUR 3,896 million) went to corporate development, 2.1 percent (EUR 86 million) were destined to mergers and acquisitions and only 0.7 percent (EUR 27 million) to greenfield investment. 

The accumulation of foreign direct investment in enterprises established as greenfield investment companies, referred to as greenfield enterprises, was highlighted in order to assess the lasting impact of greenfield investment on the economy.

The breakdown of FDI stock in greenfield enterprises by main economic activity at end 2011 was as follows: