FDI got over EUR 3 billion last year. Most of them registered in Bucharest

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The net flow of foreign direct investment (FDI) in Romania in 2020 exceeded 3 billion euros, according to data submitted on Thursday by the National Bank of Romania, which, in cooperation with the National Institute of Statistics, conducted the statistical survey regarding the foreign direct investment (FDI), the main data source for FDI Statistics.

The most targeted areas were: financial intermediation and insurance (EUR 1,454 million), industry (EUR 860 million) and trade (EUR 765 million).

Within the industry, most foreign investment was made in the sectors of transport (EUR 336 million), computer manufacturing, other electronic products (EUR 296 million) and food, beverages and tobacco (EUR 185 million).

FDI net flow in 2020 stood at EUR 3005 million, of which:

  • EUR 3999 million enterprises’ equity (equity worth EUR 983 million, plus reinvestment of earnings worth EUR 3016 million);
  • EUR -994 million debt transactions with foreign direct investors and non-resident fellow companies (debt less claims)

FDI stock as at 31 December 2020 amounted to EUR 90773 million of which:

    • EUR 63952 million equity positions, including reinvestment of earnings (70.5 percent);
    • EUR 26821 million debt positions in relation to foreign direct investors and non-resident fellow companies (debt less claims) (29.5 percent).
  • Income from FDI in 2020 amounted to EUR 6857 million, out of which:
    • Net earnings from equity were EUR 6264 million, representing the net profit tantamount to EUR 9005 million, of profitable FDI enterprises, less their share in the loss, EUR 2741 million, of FDI enterprises that incurred losses.
    • Net income from interest, computed by subtracting from the interest received by foreign direct investors on lending to their enterprises in Romania, the interest paid by foreign direct investors for the borrowing from their enterprises in Romania – either directly or via fellow companies, stood at EUR 593 million.

The first ranked countries with foreign investments in Romania on December 31, 2020 were: the Netherlands (19, 994 million euros, representing 22.0% of the total FDI), Germany (11,070 million euros, 12.2%), Austria (10,858 million euros, 12.0%), Italy (7,652 million euros, 8.4%), France (5,642 million euros, 6.2%) and Cyprus (5,445 million euros, 6.0%).

The highest share of FDI in greenfield-type of enterprises is focused in the Bucharest-Ilfov region (62.2% of the FDI balance in greenfield enterprises). Center regions come next with 11.6% and West regions with 6.9%. The countries with the most numerous greenfield enterprise investments in Romania are the Netherlands (12,561 million euros), Germany (9,837 million euros) and Austria (5,005 million euros).

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