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 2015 and the FDI flows during the 2015 financial year into the resident direct investment enterprises.
The FDI Survey was conducted according to the methodological requirements of the International Monetary Fund (IMF) Balance of Payments and International Investment Position Manual, Sixth Edition (BPM6). More details are shown in the METHODOLOGICAL NOTES.
1. FDI net flow in 2015 stood at:
EUR 3,461 million*, of which:
- EUR 3,595 million - equity stakes (enterprises’ equity worth EUR 3,085 million, plus reinvested earnings worth EUR 510 million);
- EUR -134 million - net credit from foreign investors (repayments exceeded credit inflows).
2. FDI stock as at 31 December 2015 amounted to:
EUR 64,433 million, of which:
- EUR 45,098 million - equity stakes, including reinvested earnings (70.0 percent);
- EUR 19,335 million - net credit from foreign investors (30.0 percent).
2.1. FDI stock by main economic activity
By economic activity (according to NACE Rev. 2), the bulk of FDI went to manufacturing (31.8 percent of total), out of which the largest recipients were: oil processing, chemicals, rubber and plastic products (6.0 percent of total stock), transport means (5.9 percent), metallurgy (4.1 percent), food, beverages and tobacco (3.4 percent), machinery and equipment (2.6 percent) and wood items, including furniture (2.6 percent).
Foreign direct investment stocks in Romania as at 31 December 2015
Breakdown by main economic activity
| |
|
| EUR million |
% of total FDI |
| TOTAL, of which: |
64,433 |
100.0 |
| Industry |
28,746 |
44.6 |
| Mining |
1,952 |
3.0 |
| Manufacturing, of which: |
20,477 |
31.8 |
| - food, beverages and tobacco |
2,198 |
3.4 |
| - cement, glassware, ceramics |
1,456 |
2.3 |
| - wood items, including furniture |
1,711 |
2.6 |
| - manufacture of computer, electronic, optical and electrical products |
1,476 |
2.3 |
| - machinery and equipment |
1,675 |
2.6 |
| - metallurgy |
2,639 |
4.1 |
| - transport means |
3,803 |
5.9 |
| - oil processing, chemicals, rubber and plastic products |
3,859 |
6.0 |
| - textiles, wearing apparel, leather goods |
1,050 |
1.6 |
| - other manufacturing |
610 |
1.0 |
| Electricity, natural gas, water |
6,317 |
9.8 |
| Administrative and support service activities |
4,056 |
6.3 |
| Agriculture, forestry and fishing |
1,662 |
2.6 |
| Trade |
7,861 |
12.2 |
| Construction and real estate transactions |
7,877 |
12.2 |
| Hotels and restaurants |
504 |
0.8 |
| Financial intermediation and insurance |
8,428 |
13.1 |
| IT&C |
3,690 |
5.7 |
| Transport |
1,191 |
1.8 |
| Other |
418 |
0.7 |
Apart from industry, activities that also attracted significant FDI were financial intermediation and insurance (13.1 percent of total FDI stock), trade (12.2 percent), construction and real estate transactions (12.2 percent), and administrative and support service activities (6.3 percent).
Tangible and intangible fixed assets of direct investment enterprises stood at EUR 30970 million at end-2015 and held 48.1 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 (59.3 percent). Other development regions which attracted significant FDI inflows were: the CENTRE region (9.0 percent), the WEST region (8.1 percent), the SOUTH-MUNTENIA region (7.2 percent), and the NORTH-WEST region (5.9 percent).
The statistical research located FDI by registered office, which is not always the same as their business place.
| |
EUR million |
% of total FDI |
| TOTAL, of which: |
64,433 |
100.0 |
| BUCHAREST-ILFOV |
38,243 |
59.3 |
| CENTRE |
5,831 |
9.0 |
| WEST |
5,237 |
8.1 |
| SOUTH-MUNTENIA |
4,626 |
7.2 |
| NORTH-WEST |
3,793 |
5.9 |
| SOUTH-EAST |
2,869 |
4.5 |
| SOUTH-WEST-OLTENIA |
2,172 |
3.4 |
| NORTH-EAST |
1,662 |
2.6 |
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 (based on the immediate investing country principle).
Top 5 countries by share of FDI stock as of 31 December 2015 were the Netherlands (25.0 percent of the FDI stock at end-2015), Austria (14.2 percent), Germany (12.4 percent), Cyprus (6.9 percent) and France (6.7 percent). The ranking of the top 5 countries remained unchanged from the previous year.
| |
EUR million |
% of total FDI |
| TOTAL, of which: |
64,433 |
100.0 |
|
| The Netherlands |
16,100 |
25.0 |
| Austria |
9,131 |
14.2 |
| Germany |
7,991 |
12.4 |
| Cyprus |
4,421 |
6.9 |
| France |
4,308 |
6.7 |
| Italy |
3,349 |
5.2 |
| Luxembourg |
2,700 |
4.2 |
| Switzerland |
2,231 |
3.5 |
| Greece |
1,747 |
2.7 |
| USA |
1,627 |
2.5 |
| Belgium |
1,444 |
2.2 |
| Spain |
1,423 |
2.2 |
| United Kingdom |
1,346 |
2.1 |
| Hungary |
938 |
1.4 |
| Czech Republic |
652 |
1.0 |
| Other countries* |
5,025 |
7.8 |
* Countries which invested less than EUR 500 million.
3. Types of FDI
The flow of equity into FDI enterprises, amounting to EUR 3,085 million, is divided into greenfield, mergers and acquisitions, corporate development and corporate restructuring.
In 2015, greenfield investment, in keeping with the trend recorded in the previous years, stood at a very low level. Thus, greenfield FDI was only EUR 96 million out of the total equity participation in FDI enterprises, while mergers and acquisitions recorded a marginal negative flow (EUR -5 million).
The most important two components of the flow of equity into FDI enterprises were corporate development which accounted for EUR 1,742 million (56 percent) and corporate restructuring which accounted for EUR 1,252 million (41 percent).
In order to assess the lasting impact of greenfield investment on the economy, the accumulation of foreign direct investment (stocks) in enterprises established as greenfield investments, referred to as greenfield enterprises, was highlighted.
The breakdown of FDI as at 31 December 2015 stock in greenfield enterprises by main economic activity:
| |
FDI stock |
FDI stock in greenfield enterprises |
| EUR million |
EUR million |
% of FDI by economic activity |
| TOTAL, of which: |
64,433 |
36,484 |
56.6 |
| Industry |
28,746 |
13,303 |
46.3 |
| Mining |
1,952 |
141 |
7.2 |
| Manufacturing |
20,477 |
11,052 |
54.0 |
| Electricity, natural gas, water |
6,317 |
2,110 |
33.4 |
| Trade |
7,861 |
6,056 |
77.0 |
| Construction and real estate transactions |
7,877 |
5,734 |
72.8 |
| Administrative and support service activities |
4,056 |
3,566 |
87.9 |
| Financial intermediation and insurance |
8,428 |
3,087 |
36.6 |
| IT&C |
3,690 |
2,172 |
58.9 |
| Other economic activities |
3,775 |
2,566 |
68.0 |
METHODOLOGICAL NOTES
The FDI Survey was conducted according to the methodological requirements of the IMF Balance of Payments and International Investment Position Manual, Sixth Edition (BPM6). For more details on data compiling methodology please use the link below:
Implementing the new Balance of Payments Manual (BPM6)
-
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 resident direct investment enterprise as well as the reinvested earnings.
According to the BPM6 compiling methodology, FDI also includes equity and loans from non-resident enterprises even if they hold less than 10 percent of the voting power or subscribed share capital, in case these non-resident enterprises belong to the same group of enterprises as one of the direct investors in the resident company. This is the case of fellow enterprises.
Resident enterprises on which a non-resident investor has indirect significant influence are also considered indirect direct investment enterprises. This is the case of 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/working 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/working 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.
- Fellow companies: those enterprises that are under the control or influence of the same immediate or indirect investor, but neither fellow enterprise controls or influences the other fellow enterprise (that is to say neither of them holds more than 10 percent of the subscribed share capital or the voting power in the other one).
- 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/working 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.
Debt between affiliated financial intermediaries (banks, non-bank financial institutions, investment funds) is not considered as FDI according to the BPM6.
- 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;
- Corporate restructuring: equity investment in enterprises which incurred losses, aiming at turning them to profitability.
Out of the total number of 41,172 FDI enterprises, 7,241 entities were surveyed (either by comprehensive or random survey).
A number of 6,418 FDI enterprises were subject to a comprehensive survey, including enterprises with at least 20 employees (6,083 entities), all the credit institutions with foreign capital (31 entities), all the insurance companies with foreign capital (36 entities), as well as the enterprises referred to as atypical, namely all the foreign direct investment enterprises whose turnover or share capital was of at least RON 30 million, irrespective of the number of employees (268 entities).
A sample of 823 companies out of the 7,462 FDI enterprises with 5 to 19 employees was subject to a random survey.
In addition, 362 indirect direct investment enterprises were also subject to a comprehensive survey.
The response rate of the FDI survey was 96.7 percent.
The final results of the FDI survey at end-2015 (flows and stocks) have an error margin of ±3 percent, a probability of 95 percent being warranted.
A more detailed account of the 2015 FDI survey results will be available at Regular publications starting 14 October 2016.