French investments in Romania: industry and financial services top the list in 2017
The French foreign direct investments (FDI) in Romania stood at EUR 4.2 billion by mid-2017, according to data from the French Chamber of Commerce in Romania (CCIFR). A total of 3,000 companies with French capital were active in the country, with 120,000 direct jobs created.
French President Emmanuel Macron visits Romania on Thursday, August 24, less than a year after his predecessor Francois Hollande also came to Bucharest in an official visit. The two visits show that Romania is an important partner for France.
Industry, financial services and trade are some of the sectors of the Romanian economy where French companies are best represented. The investments in industry stabilized in 2014 at around 46% of the total French ones in the country, while the ones in financial services and industry kept constant at approximately of a quarter of the total. Investments in agriculture reached 8% of the total in 2014, while those in new technologies (NTIC) do not exceed 2%. The trade sector stands at between 10 and 13%.
By turnover, the sectors where French companies are best represented are: industry, with EUR 8.6 billion; trade, with EUR 5 billion; energy and environment, with EUR 1.3 billion; consultancy and services, with EUR 655 million; and IT&C, with EUR 360 million.
By the number of companies, the most representative sectors for the French economic presence in Romania are: consultancy and services, with 610 companies; trade, with 550 companies; industry, with 520 companies; construction, with 325 companies; and real estate, with 225 companies.
The counties gathering the highest number of French companies are: Bucharest and Ilfov, with 1,200 companies; Cluj and Timis, with 160 companies each; Arges, with 130 companies; and Brasov, with 125 companies.
The most representative sectors by the number of direct jobs created are: industry, with 52,500 jobs; trade, with 28,800 jobs; consultancy and services, with 14,500 jobs; new technologies, with 7,800 jobs; and transport, with 3,500 jobs.
The bilateral trade between the two countries reached EUR 7.4 billion, up 9.3% compared to 2016.
France exports to Romania mainly goods and equipment, rolling stock, chemical products, and textiles. Romania exports to France rolling stock, goods and equipment, and textiles.
France is Romania’s fourth provider (EUR 3.6 billion) and third client (EUR 3.8 billion), while Romania is France’s 27th provider and 28th client.
French car-maker Renault tops the list of the French investors in Romania. It owns local car producer Dacia, which accounted for 17.7% of the Renault group’s sales worldwide in the first half of this year. French group Societe-Generale owns in Romania BRD. The bank recorded a 63% increase in its consolidated net profit in 2016. Orange leads the local telecom market by number of clients. It counted 10.08 million clients for its mobile and fixed services at the end of June 2017. In the retail sector, Carrefour, Auchan and Cora are some of the largest players in the country, while Danone is a large player in the dairy sector. French companies are also present in the gas distribution sector, through GDF Suez, and in the insurance segment, through Groupama.
editor@romania-insider.com
