For the past 15 years, governments throughout Central Europe have dramatically reformed their economies by moving commercial enterprises from state control to private ownership. This has resulted in foreign direct investment of over $100bn throughout the region. A myriad of opportunities and pitfalls have arisen for local entrepreneurs and foreign multinationals, and traversing this new landscape can be difficul.
Foreign investors must realize that besides the benefits that investing in Romania brings, there are challenges that investors face. Dealing with these can often lead to wasting valuable time and inefficiencies in the initial investment stages. Although we cannot completely resolve these problems, we can help to alleviate them.
Key issues of investing in Romania
- Poor infrastucture
Romania's infrastructure is fairly extensive, with 103,671 kilometers (64,276 miles) of road, 11,385 kilometers (7,058 miles) of rail, and 3.84 million main telephone lines. But most of it is in a poor state of repair, due to decades of underinvestment.
- Bureaucracy and corruption
There are still issues with the countries of Central Europe with excessive administration, bureaucracy and corruption in spite of EU membership. Romania similarly like other neighboring counties is fighting this problem.
- Administration slowing the project
It is imperative to have project team members focusing on implementing the investment and not to be distracted by administrative issues, keeping track of tax filing requirements and minor details.
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