Banca Naţională a României

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 2012 and the FDI flows during the 2012 financial year into the resident direct investment enterprises.

1. FDI net flow in 2012 stood at:
EUR 2,138 million , of which:

• EUR 795 million – equity stakes* (37.2 percent);
• EUR 1,343 million – net credit from foreign investors (62.8 percent).

2. FDI stock as of 31 December 2012 amounted to:
EUR 59,126 million , of which:

• EUR 39,266 million – equity stakes, including reinvested earnings (66.4 percent);
• EUR 19,860 million – net credit from foreign investors (33.6 percent).

2.1. FDI stock by main economic activity
By economic activity (according to NACE Rev. 2), the bulk of FDI went to manufacturing (31.3 percent of total), out of which the largest recipients were: oil processing, chemicals, rubber and plastic products (6.7 percent of total), transport means (5.4 percent), metallurgy (4.9 percent), food, beverages and tobacco (3.7 percent) and cement, glassware, ceramics (2.8 percent).

Apart from industry, activities that also attracted significant FDI were financial intermediation and insurance (18.5 percent of total FDI stock), trade (11.4 percent), construction and real estate transactions (9.2 percent), and information technology and communications (4.8 percent).

Tangible and intangible fixed assets stood at EUR 27,412 million at end-2012 and held 46.4 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 (60.6 percent). Other development regions benefiting from significant FDI inflows were: the CENTRE region (7.8 percent), the WEST region (7.6 percent), the SOUTH-MUNTENIA region (7.2 percent), and the SOUTH-EAST region (5.5 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 in Romania.

Top 4 countries by share of FDI stock as of 31 December 2012 were the Netherlands (22.4 percent of the FDI stock at end-2012), Austria (18.5 percent), Germany (11 percent) and France (8.9 percent), the same ranking since 2009.

* Countries which invested less than EUR 500 million.

3. Types of FDI

The flow of equity stakes into FDI enterprises amounting to EUR 2,676 million is divided into greenfield, mergers and acquisitions and corporate development .

In 2012, out of the total FDI equity flow, 99.5 percent (EUR 2,663 million) went to corporate development, only EUR 18 million were destined to greenfield investment and mergers and acquisitions had a negative influence of EUR 5 million.

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‑2012 was as follows:

4. Exports and imports of FDI enterprises

The activity of direct investment enterprises as a whole had a positive impact on Romania’s foreign trade, its contribution to total exports and total imports of goods standing at 70.3 percent and 62.6 percent respectively.

NOTE: Exports and imports are aggregated by the main activity of companies, according to NACE Rev. 2, excluding exports and imports of NACE divisions: 84 Public administration, 97/98 Activities of households as employers and 99 Activities of extraterritorial organisations and bodies.

METHODOLOGICAL NOTES

The FDI 2012 survey was compiled based on the IMF Balance of Payments Manual, 5th edition (BPM5).

• Foreign direct investment: long-term investment relationship between a resident and a non-resident entity; it usually involves a significant degree of influence exerted by the investor on the management of the direct investment enterprise in which he has invested.

  Foreign direct investment includes the following: paid-up capital and the reserves related to a non-resident investor holding at least 10 percent of the subscribed share capital of a resident enterprise, the loans between the investor or the group to which the investor belongs and the direct investment enterprise as well as the reinvested earnings.

  Equity in a resident enterprise on which a non-resident investor has indirect significant influence is also considered foreign direct investment. This includes equity capital in the resident subsidiaries and associates of a resident enterprise in which a non-resident investor holds at least 10 percent of subscribed share capital.

• Foreign direct investor : legal entity, individual or group of related entities holding at least 10 percent of the subscribed share capital (or of endowment capital in case of unincorporated entities) or at least 10 percent of the voting power in an enterprise located outside the country of residence.
• Direct investment enterprise : an incorporated or unincorporated resident enterprise in which a non-resident investor holds at least 10 percent of the subscribed share capital or the voting power, or the endowment capital in case of unincorporated entities (branches). A participation of at least 10 percent in the subscribed share capital or the voting power, or in the endowment capital, is the prerequisite for the establishment of the direct investment relationship.
• Indirect direct investment enterprise : resident subsidiaries and associates of a direct investment enterprise.
• Reverse direct investment : the investment relationship opposite to the foreign direct investment between a resident direct investment enterprise and a foreign direct investor, where the former holds a participation of less than 10 percent in the share capital of the foreign direct investor.
• FDI components:
• Equity capital : includes subscribed and paid-up capital, both in cash and through in-kind contributions, held by non-residents in resident enterprises, as well as the related share in reserves; in the case of branches, the available endowment capital shall be taken into account.
• Net credit : namely the direct investment enterprise’s borrowings from the foreign direct investor or the group of non-resident companies the former belongs to, net of the loans extended by the direct investment enterprise either to the foreign direct investor or to another entity within the group of companies.
• Types of FDI (by contribution to the equity flow in direct investment enterprises):
  • Greenfield : establishment of enterprises by or together with foreign investors (ex nihilo investment);
  • Mergers and acquisitions : partial or full takeover of enterprises by foreign investors from residents;
  • Corporate development : increase in foreign equity capital in direct investment enterprises.