The State Department web site below is a permanent electronic archive of information released prior to January 20, 2001.  Please see www.state.gov for material released since President George W. Bush took office on that date.  This site is not updated so external links may no longer function.  Contact us with any questions about finding information. NOTE: External links to other Internet sites should not be construed as an endorsement of the views contained therein.

Country Commercial Guides FY 1999: Romania

VII.  INVESTMENT CLIMATE

A.1. Openness to Foreign Investment

Since 1990, Romania's stated policy has been to encourage foreign
direct investment.  In general, the debate within the coalition
government is not whether to promote a market economy that is
open to foreign investment, but over how to achieve that
objective.  There is still, however, significant resistance to
foreign investment from certain parties and from managers of
state-owned enterprises.  There is a concern that foreign
investors are being allowed to purchase state-owned companies at
"bargain basement" prices, and that they will have too much
influence in the economy.  There is still a strong tendency to
retain control over the economy, rather than letting market
forces play out.

Like other countries in the region, Romania has had to create a
legal framework consistent with a market economy and the
promotion of investment.  In this respect, much progress has been
made.  One of the main difficulties now is in the implementation
of the new laws.  To date, implementation has been uneven, and
there continues to be a disparity between what is "on the books"
and what happens in practice.

Despite the significant changes in the legal framework, foreign
investment in Romania has not kept pace with expectations. 
Following the election of President Constantinescu's center-right
reform-minded government in November, 1996, many investors
expected to see a significant increase in foreign investment in
1997.  Portfolio investment inflows, mostly from hedge funds and
country funds, did rise sharply in the first half of 1997. 
However, this initial bubble of optimism burst in the summer of
1997 leading to a massive sell-off.  This preceded the crisis in
Asia and was due, in large degree, to lingering concerns over the
ability to repatriate profits, macroeconomic concerns over
currency and inflation stability, and a slower than anticipated
rate of privatization.  The net result was an in-flow of only
$135 million in investment on both the Bucharest Stock Exchange
and the RASDAQ.

Direct investment has likewise not flooded Romania as
anticipated, but merely continues to trickle in.  In 1997, 
particularly in comparison with other countries in Central and
Eastern Europe such as Hungary, the Czech Republic, and Poland,
foreign investment in Romania remains very low.

Investments which involve the government of Romania, either by
the need for sovereign guarantees or by the involvement of
entities such as the State Ownership Fund, are generally more
difficult than greenfield investments or joint ventures with
private Romanian companies.  Large deals involving the government
of Romania frequently become stymied by vested political and
economic interests and bogged down by indecision within
governmental ministries.  Greater success has been encountered
with less complex deals involving small to medium-sized private
and state enterprises.   Sectors that provide  good opportunities
for investment are agriculture, energy, some heavy industry,
telecommunications, banking, and tourism.

Successful U.S. companies tend to share a common approach to
doing business in Romania.  Firstly, they establish themselves in
Romania so that they are able to analyze the local situation and
develop the most effective corporate strategy.  Doing business in
Romania requires a presence on the ground.  Secondly, they come
with a long-term strategy that communicates long-term commitment
to the Romanian market and government.  This often paves the way
for successful negotiations with the State Ownership Fund, labor
unions, and local partners.

One difficulty for investors is that the legal framework for
investment in Romania is constantly changing.  For example, new
laws on investment and privatization were passed in late 1997 and
early 1998.  The investment law was changed to provide incentives
to domestic as well as foreign investors.  The new law also
significantly changed the incentives for investment.  It is
recommended that any prospective foreign investor consult
appropriate legal counsel to get the most up-to-date information.
The legal framework for foreign investment in Romania is provided
by the following laws:

Commercial Register Law (No. 26/1990);
Commercial Company Law (No. 31/1990; revised 1997);
Foreign Investment Law (No. 35/1991; revised 1993 and 1997);
Accountancy Law (No. 82/1991)
Free Trade Zones Law (No. 84/1992);
Value Added Tax (Ordinance No. 3/1993, as amended);
Local Taxes (Law No. 27/1994)
Government Ordinance Regarding Tax on Profit (No. 70/1994);
Law on Stimulating Foreign Investment in Industry (No. 71/1994);
Privatization Law No. 55/1995;
Bankruptcy Law (No. 64/1995)
Petroleum Law (No. 134/1995)
Copyrights and Neighboring Rights Law (No. 8/1996);
Competition Law (No. 21/1996);
State Monopolies Law (No. 31/1996);
Stimulation of Foreign Investment (Government Ordinance No.
92/1997);
Bank Privatization Law (No. 83/1997);
Government Ordinance on Privatization (No. 88/1997).

This body of legislation ensures that foreign investors are
granted national treatment, have free access to domestic markets,
and are allowed to participate in the privatization process. 
There is no limit on foreign participation in commercial
companies.  Foreign investors are entitled to establish wholly
foreign-owned enterprises in Romania (although joint ventures are
the normal pattern) and to convert and repatriate 100 percent of
after-tax profits.  They are allowed to participate in the
management and administration of the investment, as well as to
assign their contractual obligations and their rights to other
Romanian or foreign investors.  Foreign investments in Romania
are governed by the provisions established by the foreign
investment law in force at the time of incorporation, unless a
subsequent law contains more favorable provisions.

Foreign investors may engage in business activities in Romania in
any of the following ways:

-  set up new commercial companies, subsidiaries or branches,
either wholly-owned or in partnership with Romanian natural or
legal persons;
-  participate in the increase of the registered capital of an
existing company or the acquisition of shares, bonds, or other
securities of such companies;
-  acquire concessions, leases or agreements to manage economic
activities, public services, or the production of sub-units
belonging to commercial companies or state-owned public
corporations;
-  acquire ownership rights over non-residential real estate
improvements, including land, via establishment of a Romanian
company;
-  acquire industrial or other intellectual property rights;
-  conclude exploration and production-sharing agreements related
to the development of natural resources.

Foreign investor participation can take the form of:  foreign
capital, equipment, means of transport, spare parts and other
goods, services, intellectual property rights, know-how and
management expertise, or proceeds and profits from other
businesses carried out in Romania.

While legally foreign investment is subject to only routine and
non-discriminatory screening, in practice the government of
Romania generally tries to balance investment among major foreign
countries.

Currently, the company incorporation procedure is handled by the 
Romanian Trade Registry.  This process, which, in the past, could
take up to several months can now be completed in a matter of
weeks.

Foreign investment must comply with environmental protection
regulations and must not negatively affect romania's national
security, defense interests, public order, or public health.  The
regulatory norms now being drafted generally require the
publication of environmental balance sheets for privatizations
involving the sale of a majority of a company's shares.  Such
balance sheets are also required for the sale of any company's
assets that, under applicable environmental laws and regulations,
are considered as having a negative environmental impact.

In practice, these regulations can be difficult to comply with. 
There are few environmental engineering or consulting companies
present in Romania and in many cases the clean up of past
environmental damage will be cost prohibitive to foreign
investors.

Presently, if the State Ownership Fund (SOF) is selling a
majority stake in a company, the prospective buyer must submit a
report to the local environmental agency office.  This office
then issues an assessment as to whether or not additional
environmental reviews/audits are necessary.  By law, the SOF has
discretion in deciding whether additional audits are needed.

Given the considerable environmental damage inflicted by the
state sector in the past, the sof will face considerable
difficulty in selling a number of major enterprises if purchasers
are forced to pay for clean up of past damage.  The recent
privatization of a major oil refinery might serve as a precedent. 
In this case, the SOF indemnified the purchaser from any prior
environmental damage, requiring only that environmental
regulations be complied with going forward.

Foreign investors can participate in privatization programs by
acquiring shares and assets in Romanian commercial companies from
the State Ownership Fund.  Sales take one of the following forms:
public offering on the Bucharest Stock Exchange or RASDAQ, direct
negotiation, auction, depositary receipts issued by investment
banks on the international capital markets (GDR, ADR, EDR) or a
combination of these methods.

Many of the laws and regulations on investment as well as other
information on Romania's investment climate can be found on the
internet at www.sof-romania.com.

A.2.  Conversion and Transfer Policies


Romanian legislation does not put any restrictions on converting
or transferring funds associated with direct investment.  All
profits made by foreign investors in Romania may be converted
into hard currency, and transferred abroad, after payment of
taxes.  Proceeds from the sale of shares, bonds, or other
securities, as well as from winding-up an investment can also be
repatriated.  There is no limitation on the inflow or outflow of
funds for remittances of profits, debt service, capital gains,
returns on intellectual property or imported inputs.

In February, 1998 the Romanian government implemented new 
regulations that liberalized the forex market on the current
account.  Initially the new regulations caused confusion, but
that was resolved when the National Bank of Romania (NBR) issued
a circular letter published in the Official Gazette on May 29,
1998 clarifying the new rules.  Procedural delays in processing
capital outflows still exist.

The NBR is studying the eventual liberalization of capital
account transactions, but in the wake of recent disruptions
caused by capital outflows in Asia and other developing economies
the Ministry of Finance and NBR will proceed cautiously and
implementation is not expected in the short-term.  The Ministry
of Finance is particularly concerned about "hot money", that is,
about potentially large inflows of short-term capital investment
and the potential impact on exchange rate stability.

A.3.  Expropriation and Compensation

The law on direct investment includes a guarantee against
nationalization and expropriation and other equivalent actions. 
The law also allows investors to choose the court or arbitrary
body they want to settle any potential litigation.  Since 1989
there have been no cases involving expropriation of American
property, although there are many unresolved cases involving
dwellings nationalized during the communist era.

A.4.  Dispute Settlement

Property and contractual rights are recognized, but enforcement
through Romanian courts is difficult.  Foreign companies engaged
in trade or investment in Romania often express concerns with
respect to the international commercial experience of Romanian
courts.  Judges generally have little experience in the
functioning of a market economy, international business methods,
or the application of new Romanian commercial laws.

Many agreements involving international companies and Romanian
counterparts provide for the resolution of such disputes through
third-party arbitration.  Arbitration offers an effective means
of dispute resolution which avoids long trials before non-specialized legal courts.  The parties may choose one or more
arbitrators who are specialists in international commerce or a
particular industry.

Romania recognizes the importance of arbitration in the
settlement of commercial disputes.  It is a signatory to the New
York convention of 1958 regarding the recognition and execution
of foreign arbitration awards.  Romania is also a party to the
European convention on international commercial arbitration
concluded in Geneva in 1961 and a member of the International
Center for the settlement of investment disputes.  Romanian law
and practice recognize applications to other internationally
renowned arbitration institutions, such as the ICC Paris Court of
Arbitration.  Arbitration awards are enforceable through the
Romanian courts under circumstances similar to those in western
countries.

In addition, Romania has an International Commerce Arbitration
Court administered by the Chamber of Commerce and Industry of
Romania. (The "Arbitration Court").  The regulations and
procedural rules provide for the Arbitration Court to be a
permanent non-governmental arbitration institution.  The
Arbitration Court is independent financially, administratively
and organizationally.  The Chamber of Commerce and Industry of
Romania is also non-governmental, and is a self-governing, public
interest organization, which organizes arbitration proceedings
through the Arbitration Court.  The Arbitration Court has
cooperation agreements with arbitration institutions in the
United States, Austria, Switzerland, India, South Korea, and
other countries.

Romania's bankruptcy law contains provisions for liquidation and
reorganization that are generally consistent with western legal
standards.  It emphasizes enterprise restructuring and job
preservation.  Its major drawback is that it does not apply to
the liquidation of strategic state enterprises ("autonomous
regies").  Legal education and the training of existing judges
and lawyers has lagged behind law making bodies, making it
difficult to bring bankruptcy cases to court with consistent
outcomes.

A.5.  Performance Requirements/Incentives

There are no performance requirements imposed as a condition for
establishing, maintaining or expanding an investment.  The
current investment incentives, listed in the Investment Law, and
available to both foreign and domestic investors include:

-- the import of goods that represent a contribution to the
capital base of the company are exempt from customs duties and
the value added tax;
-- the import of industrial equipment is exempt from customs
duties;
-- advertising expenses can be fully deducted from taxable
profits;
-- reductions in profit taxes, by deductions from the level of
profitable income, including deductions for losses in previous
years;
-- and accelerated depreciation.

Incentives granted other the previous investment law were
grandfathered by the new law.  Like other Central and Eastern
European countries, Romania provides tariff preferences for EU
goods under its association agreement with the EU.

A.6.  Right to Private Ownership and Establishment

The Romanian constitution, adopted in December 1991, guarantees
the right to ownership of private property.  Mineral rights, air
rights, and similar attributes are excluded from private
ownership.

Foreign investors involved with commercial companies having
partial or full foreign capital may acquire land or property
necessary for fulfilling or developing the company's corporate
goals.  If the company is dissolved or liquidated, the land must
be sold within one year of the company's closure and may be sold
only to a buyer(s) with the legal right to purchase such assets. 
Agricultural land cannot be purchased by foreign investors at
this time.

The process of establishing a company in Romania, although
recently streamlined, can be bureaucratic and time consuming. 
The Romanian Trade Registry is responsible for company
registration.

A.7.  Protection of Property Rights

Romania is a signatory to international conventions concerning
intellectual property rights and has enacted legislation
protecting patents, trademarks, and copyrights.  While the legal
framework is generally good, enforcement remains weak.  Romania
has yet to pass border enforcement provisions required under the
WTO.

-- Patents: Romania is a party to the Paris Convention for the
protection of industrial property and has subscribed to all of
its amendments.  Foreign investors are therefore entitled to the
same treatment as Romanian citizens.  A modern Patent Law (No.
64/91) broadens and clarifies the basis on which a patent is
granted.  Several other laws (No. 129/92, on the protection of
industrial drawings and designs; No. 16/95, on the protection of
integrated circuit designs, etc.) have helped bring Romanian
patent legislation up to international standards.  Patents are
valid for 20 years.  The period for contesting a patent
application is six months.  Legislation providing for transitory
("pipeline") patent protection was enacted in early 1998.

-- Trademarks: In 1998 Romania passed a new law on trademarks
which is generally consistent with international standards. 
Romania is a signatory to the Madrid Agreement relating to the
international registration of trademarks.  Trademark
registrations are valid for 10 years from the date of
application, being renewable for similar periods.  The first
applicant is entitled to the registration.  The period for
contesting a trademark is six months.

-- Copyrights: Romania is a member of the Bern Convention on
copyrights.  Its 1996 law on protection of copyrights and
neighboring rights is among the most modern in this field.  It is
consistent with EU provisions and incorporates many suggestions
made by U.S. experts.  In 1998, the Romanian parliament ratified
the latest versions of the Bern and Rome conventions.

A.8.  Transparency of the Regulatory System

Cumbersome and non-transparent bureaucratic procedures are a
major problem.  Foreign investors point to the excessive time it
takes to secure the necessary zoning permits, property titles,
licenses, and utility hook-ups.  Furthermore, regulations change
frequently, sometimes literally overnight, and without advance
notice.  The government does not have an effective means of
communicating with foreign investors or with Romanian private
businesses about changes in the regulatory framework.  These
changes, which can significantly change the costs of doing
business, make it difficult for investors to develop effective
business plans.  Many successful foreign investors choose to work
with a local Romanian partner to alleviate some of these
problems.

Many foreign investors feel they are unfairly targeted by
Romanian tax authorities for audits and reviews and that Romanian
authorities view them as "cash cows" that can be milked to fill
government coffers.  Unlike most Romanian companies, foreign
investors generally have good financial records that make them
easier to investigate.  Foreign investors also tend to be more
conscious of the need to remain in compliance with local laws and
regulations.

The presence of large state-owned government-subsidized
enterprises in the economy is also a major impediment to the
efficient mobilization and allocation of investment capital.

A.9.  Efficient Capital Market and Portfolio Investment

Romania seeks to develop efficient capital markets.  However,
because of the slow pace of the privatization process, capital
markets have only recently become fully operational in Romania. 
Ordinance No. 18/93 and Government Decision No. 552/92
established a securities commission (CNVM) charged with
regulating the securities market in order to protect investors. 
The process principally provides for:  registration and licensing
of brokers and financial intermediaries, filing and approval of
prospectuses, and approval of market mechanisms.

Romania officially opened the Bucharest Stock Exchange (BSE) on
June 22, 1995.  On November 20, 1995, the stock exchange made its
first transactions after a hiatus of 50 years.  The BSE now
operates a two-tier system that lists a total of 72 companies
with 12 companies on the first tier.  The official index, BET, is
based on a  basket of the 10 most active stocks listed on the
first tier.  The BSE has a home page at http://www.bse.ccir.ro.

In September 1996, the Romanian over-the-counter stock market,
RASDAQ, was inaugurated.  It is supported by an independent
registry and depository for Romanian securities.  Over 5,500
companies are listed on the RASDAQ though typically around 600
companies are traded each day.  RASDAQ has a home page at
http://www.rasd.ro.

Given the trading volume and pace of privatization many brokers
feel the broker/dealer industry is close to saturation.  Tight
competition has brought trading fees down and lack of liquidity
among listed companies makes it difficult to place large purchase
orders.  Together with unsatisfactory disclosure and annual audit
reports this lack of liquidity has tended to keep large
institutional investors away.  Country funds, hedge funds, and
venture capital funds however continue to participate actively in
the capital markets or through direct investment in private
enterprises.

Recent complaints have been aired by one of the largest U.S.
investment funds present in Romania regarding the abuse of
minority shareholder rights.  To date the Romanian government has
not responded to complaints by U.S. investment funds regarding
the abuse of minority shareholder rights and failure to do so
could slow foreign direct investment in state-owned enterprises
particularly the purchase of minority stakes via the capital
markets.

A.10.  Political Violence

There have been no incidents in Romania involving politically
motivated damage to foreign investments (projects and/or
installations).  Major civil disturbances are not likely to occur
in Romania in the near future.

A.11.  Corruption

Romanian law and regulations contain provisions intended to
prevent corruption, but enforcement is generally weak. 
Corruption is currently punishable under a variety of statutes in
the penal code.  An anti-corruption bill before parliament would
establish a new institute to create a database on organized crime
and corruption, and a new commission to combat these problems,
but parliament has not taken action on the bill.  A money
laundering law and changes to the criminal code are expected to
be passed before the end of the year.  Prison sentences are
sometimes imposed for white collar crimes, but powerful and
influential individuals often evade punishment.

The government is preparing to accede to the OECD convention on
combatting bribery, but is not yet a signatory.

U.S. firms have complained of government corruption in Romania. 
The customs service, municipal zoning offices, local financial
authorities, and other bodies are affected to some degree by this
problem.  In some cases, demands for payoffs by mid- to low-level
officials can reach the point of harassment.  Data on which to
judge the prevalence of corruption are lacking.

President Constantinescu has made fighting corruption a central
theme of his administration, which took office in late 1996.  He
established a national commission to combat organized crime and
corruption, and the government re-organized its control board,
financial guard, and other institutions charged with fighting
corruption, but with few tangible benefits.

Bribery is punishable by fines or imprisonment, but not both. 
Fines permitted under the existing penal code are too low to be
effective deterrents.  There is no deduction for bribery in the
tax code.

B.  Bilateral Investment Agreements

Romania has concluded bilateral investment protection agreements
or treaties with the following countries: Albania, Algeria,
Argentina (1994), Armenia (1995), Australia (1994), Austria
(1997), Bangladesh (1987), Belarus (1995), Belgium + Luxembourg
(1997), Bolivia (1996), Bulgaria (1991), Cameroon (1981), Canada
(1997), Chile (1995), China (1995), Croatia, Cuba (1997), Czech
Republic (1985), Cyprus (1993), Denmark (1995), Egypt (1997),
Finland (1993), France (1995), Gabon (1982), Germany (1981),
Ghana, Greece (1997), Hungary (1991), Indonesia, Israel (1992),
Italy (1991), Jordan (1995), Kazakstan (1997), Kuwait (1992),
Lebanon (1995), Lithuania, Malaysia (1997), Moldova (1994),
Mauritania (1989), Mongolia (1996), Morocco, Nigeria, Norway
(1991), Netherlands (1984), Pakistan (1979), Paraguay, Peru,
Philippines, Poland (1991), Portugal, Qatar (1997), Russia
(1992), Senegal (1984), Singapore, Slovakia, Slovenia (1996),
South Korea (1997), Spain (1995), Sri Lanka (1982), Sudan,
Switzerland (1994), Tunisia (1996), Turkey (1994), Turkmenistan
(1995), Ukraine (1995), United Kingdom (1995), USA (1994),
Uruguay (1993), Uzbekistan (1997), Yugoslavia (1996).

The U.S.-Romanian Treaty on the reciprocal encouragement and
protection of investment (signed May 1992, ratified by the U.S.
party in 1994) guarantees national treatment for American and
Romanian investors.  It provides a workable dispute resolution
mechanism.

C.  Opic and Other Investment Insurance Programs

Following the signing of an investment incentive agreement in
June 1992, the Overseas Private Investment Corporation (OPIC)
began operations in Romania in late 1992.  Four major projects
have been approved to date totaling $22 million in loans and up
to $86 million in investment insurance.

Since 1992, Romania has been a member of the Multilateral
Investment Guarantee Agency (MIGA).

D.  Labor

Romania offers a large skilled labor force at comparatively low
rates in most sectors.  Annually, the university system
matriculates a high percentage of technically oriented graduates
and positive reports have been received from U.S. businesses that
employ Romanian engineers and software designers.  With
appropriate on-the-job training, local labor can perform well
with new technologies and more exacting quality requirements.
However, there is a shortage of western-trained managers.

Since the revolution of December 1989, labor-management relations
have occasionally been tense as a result of economic
restructuring efforts and attendant personnel layoffs. 
Unemployment is 9 percent of the country's active labor-force. 
Trade unions are vocal defenders of their prerogatives.  The
government adheres to the ILO convention protecting worker
rights, and in accordance with a 1997 ILO recommendation is
seeking to amend legislation restricting the right to strike.

Many Romanian state enterprises maintain that the first priority
for an enterprise is to preserve jobs rather than turn a profit. 
Individual dismissals for poor performance must be carefully
documented and are subject to legal challenge by the affected
employee.  Some foreign investors have run into labor problems
when they have tried to trim staff in loss-making product lines. 
Foreign investors should be wary about purchasing an enterprise
that is in need of substantial restructuring.

Steep salary taxes may also generate problems.  Romania currently
levies a maximum tax rate of 45 percent on gross salaries above
$300 per month.  The law makes it very costly to locate
expatriate staff in Romania.  Foreign companies often resort to
expensive staff rotations, special consulting contracts, and non-cash benefits.

E. Foreign Trade Zones/Free Ports

Free trade zones and warehouses operate under Law No. 84/1992. 
General provisions include unrestricted entry and re-export of
goods as well as exemption from customs duties and value added
tax.  They also include an exemption from profit taxes for the
duration of a company's operations in the free trade zones.  The
law further permits the leasing or transfer of buildings or lands
for terms of up to 50 years to either legal or natural persons,
Romanian and non-Romanian.

Currently, there are five free trade zones:
-- Sulina (located at the mouth of the Danube)
-- Constanta-Sud (located close to the port of Constanta, at the
entrance to the Black Sea-Danube canal);
-- Galati (located about 100 km from the Danube mouth);
-- Braila (located 30 km up the Danube from Galati); and
-- Giurgiu (located on the Danube, 60 km south of Bucharest).

These free trade zones are operated by the Free Trade Zones
Agency of the Ministry of Transportation.

F.  Foreign Direct Investment Statistics

Despite some substantial gains in recent years, direct investment
flows into Romania remain far below the levels that the economy
needs to promote economic growth.  According to data provided by
the Romanian Development Agency, cumulative foreign direct
investment for the 1990-1997 period totaled $3.4 billion.

As of end-1997, the largest direct foreign investors in Romania
were France ($427.1 million), South Korea ($368.3 million), the
Netherlands ($294.6 million), Germany ($290.1 million), the U.S.
($254.4 million), and Italy ($200.0 million).  Figures for
France, the Netherlands, Germany and Italy also include amounts
resulting from their participation in the privatization of some
Romanian enterprises.

The number of companies with foreign capital amounted to 55,694
at the end of 1997, representing about 9 percent of all companies
registered in Romania.  The largest number of companies with
foreign capital (12,290) were set up in 1992, but the peak year
for foreign investment was 1994, when FDI reached $811.7 million. 
In 1997, FDI totalled $571.3 million, which represents 1.63
percent of GDP for 1997.  The total stock of FDI since 1990
equals 8 percent of GDP for 1997.

Preferred areas for foreign investment include oil exploration
(Shell, Amoco, Enterprise Oil, Occidental); the automobile and
automotive component industry (Daewoo, Siemens, Daimler Benz);
banking and finance (Credit Lyonnais, Wasserstein Perella Group,
ABN Amro bank, ING Bank, Chase-Manhattan, Citibank); food
processing (Tenneco); telecommunications (France Telecom,
Telesystem International Wireless Services, Airtouch); commercial
construction and development (Bouygues); hotels (Hilton, Howard
Johnson, Holiday Inn, Compagnie Immobiliere Phoenix, Ilbau
Holding); and consumer products (Procter and Gamble, Unilever,
Henkel, Colgate Palmolive).

As of February 1998, the top corporate foreign investors in
Romania were Daewoo (South Korea, $156.1 million), Mobifon
(Canadian-U.S. consortium, $78.5 million), France Telecom ($61.2
million), Tofan Group (The Netherlands, $60 million), Timken ($60
million), Shell Romania (U.K., $57 million), and Lukoil ($52
million).

Significant U.S. investors include Coca-Cola, Pepsi, McDonalds,
Kraft Jacobs Suchard, Philip Morris, Reynold's Tobacco, Procter
and Gamble, Colgate-Palmolive, Tenneco Packaging, IBM, Oracle,
Amoco, Citibank, Chase-Manhattan, AIG, Airtouch.

 
Next Chapter | Table of Contents
Country Commercial Guides Index