Sunday, November 19, 2006

GTC sees $2.2 million in income


Real estate developer Globe Trade Centre registered by September $2.2 million in incomes from America House project by renting office spaces. The incomes registered from office renting in Romania represents 6 percent of the total value cashed from allover the properties in Romania, Hungary, Serbia and Croatia, which surpasses $36 million, show the company financial report. At the beginning of the year, GTC envisaged some $8.3 million in net incomes from America House project, situated closed to Piata Victoriei. GTC has completed by March the works for the building which has a rent surface of 26,000 square meters, 2006 being the first year in which the company registered incomes from the rent building. The company total incomes registered $3.7 million and the net incomes were of $2.1 million.

Orange Romania goes national with EDGE network

Orange Romania plans to expand nationally by November 25 the EDGE network through which supplies access to the video and internet broadband services, announced the telecommunication operators. In October 2004, Orange has launched on the Romanian market video and television services directly on the mobile phone through EDGE and GPRS. The company also plans to develop concomitantly the 3G network which will cover 20 cities by year-end. Last year will expand nationally the 3G network and HSDPA network, said the company commercial director Thierry Millet.

Doing Business in Romania

For the globe-trotting international business person doing business in foreign country offers certain intercultural challenges. Do I shake hands? What are taboos? Do they negotiate like me? Understanding a country's business culture, protocol and etiquette is important in achieving success abroad.

This guide to doing business in Romania offers some introductory points to some of the above mentioned areas such as business culture and etiquette. It is not intended to summarise all ‘doing business tips’ nor meant to stereotype. Rather, it highlights some important key areas for consideration when doing business in Romania such as how to meet and greet, communicate and conduct business meeting.



Meeting & Greeting:

Although Romanians a very personable, initially business is somewhat reserved and formal. Romania is a country that still places an emphasis on good manners and demeanour, so one should endeavour to present themselves professionally at all times.

When doing business in Romania shake hands with people upon arrival and also when leaving. It is good form to wait for a women to extend her hand; older Romanian men may still kiss a woman’s hand but this practice is slowly dying out.

Romania is a hierarchical culture. Respect and deference is shown to those that are older or more senior. As a result titles are very important as they demonstrate a high esteem; when doing business in Romania it is courteous to use someone’s title whether academic or professional. If no title is obvious then use "domnule" for a man and "doamna" for a woman with the surname.

Communication:


Romania is a relationship driven culture but at the same time very private. It takes a while to earn trust, but once this happens it opens many doors. At first people are generally shy and quiet. Once you develop a personal relationship Romanians will open up. Maintain a relatively formal approach in communication - always polite, do not ask personal questions and stick to a last-name basis until asked not to.

The communication style is a mix of direct and indirect. While being straightforward is valued in Romania, there is also an emphasis placed on delivering information in a sensitive way. Often, the level of the relationship will determine how direct someone is. For newly established and more formal relationships, a great deal of emphasis will be placed on diplomacy. But once a relationship has passed through the initial phases, people feel more comfortable speaking frankly with each other.

In Romania eye contact can be very direct and is a sign of respect. If you are from a culture where intermittent eye contact is more prevalent, you may initially feel uncomfortable. Looking away will be interpreted either as lack of interest or rudeness.

Meetings & Negotiations:

Meeting schedules are not rigid in Romania. There may be an agenda, but it serves as a guideline for the discussion and can act as a springboard to other business. Remain flexible in your approach when doing business in Romania.

Negotiations can be tough. Decisions are only made by the most senior member of the Romanian party, so it is recommended to save concessions and the like until speaking meeting directly with them. Avoid confrontational behaviour or high-pressure sales tactics.

Contracts are seen as statements of intent rather than binding agreements. Note that decisions can be reversed and nothing is concrete when doing business in Romania.

Top romanian business women

On Wall-Street.ro you can find a nice article about the Top Romanian Business Women in 2005.

Here is the top 10:

Anca Vlad - president of FILDAS company (medical sector)
Maria Grapini - president of CA Pasmatex Timisoara
Irina Cajal - consultant in Romanian Foreign Affairs Ministry.
Georgiana Pogonaru - general manager Romcolor 2000
Ana Diculescu Sova - NNDKP lawyer
Elisabeta Lipa - athlete.
Anastasia Soare - stylist in Beverly Hills
Camelia Sucu - manager Class Mobexepert
Cristina Batlan - executive director Musette
Simona Marinescu - World Bank regional coordinator for Middle East and Noth Africa.

The President required to slow down privatisation in the domain of energy

President Traian Basescu stated on Otopeni Airport, when leaving on an official visit to Libia that he had required the minister of economy to slow down privatisations in the domain of energy.
The announcement takes place less than a week after price increase. The domestic consumption of natural gas in Romania is covered from three sources: the main supplier is Petrom, company bought in 2004 by the Austrian company OMV; the second domestic producer is Romgaz and the rest of the quota is ensured by gas imports from Russia. Although the authorities had initially announced that Romgaz will be privatised, the minister of economy Codrut Seres says that the project was dropped and Romgaz ensures 50% of the necessary domestic consumption and contributes to Romania’s supply safety for prices much lower than the international ones. Minister Seres says that a decision regarding privatisation depends on the analysis of the results obtained after the privatisation of the other units, among which Petrom – as the president required – after the adoption of the national strategy in the domain of energy. The document is posted on the internet site of the minister and president Traian Basescu stated that it will be discussed during the first meeting of the High Defence Council. In his turn, analyst Daniel Daianu, former minister of economy, says that, while at international level new energy strategies are discussed, allowing the European States not to be dependent on Russian gas anymore, Romania has a certain amount of resources that might be optimistic. But, on the other hand, Romania is weak and negotiates from an inferior position with foreign companies controlling the public units in Romania. Some months ago, between the main domestic producer of natural gas Petrom and suppliers there were discussions concerning price. The company required a higher price than the one approved by the National Authority for regulation in the domain of natural gas and Distrigaz Nord and Distrigaz Sud did not sign the contracts at the price requested by Petrom. Eventually, the authorities announced a rise in the price of gas by 8 %. The increase in price was due to the way in which the privatisation contract of Petrom was signed – according to provisions of the document published the other day – the Austrian management OMV could increase price to gas as they wish to ensure the profit of the company without the approval of the authorities. The increase by 8 percent of natural gas brought about debate about gas prices in the domestic production. Present situation of contracts Up to now, the state has privatised the two natural gas distributors Distrigaz Sud and Distrigaz Nord. Gaz de France signed the privatisation contract with the Romanian authorities for Distrigaz Sud in October 2004, the transfer being finalised in 2005. The total value of the transaction for the taking over of the stock – purchase of bonds and the increase in social capital – was of 311 million euros. The German company E.ON Ruhrgas took over in 2005, 51% of the Distrigaz Nord shares, changing the name of the company, starting April 2006 as E.ON Gaz Romania. The German group paid 125million euros for 30% of the shares, adding 178 million euros for increasing the participation to 51%. The largest companz in the energy domain in Romania, Petrom , was sold to the Austrian group OMV in 2004. The Austrian company paid the state 669 million euros for direct acquisition of 33.34% of Petrom shares and participated with 830 million euros to increase social capital thus acquiring majority participation. In the sector of electricity distribution, four subsidiaries of Electrica had already been privatized and Electrica Muntenia sud will go to the Italian group Enel before the end of this year. Enel owns, starting 2005, Electrica dobrogea and Electrica Banat, the invested sum for taking over shares and increase of the social capital being 122 million euros. To get 67.5% of electrica muntenia sud shares, the Italian Group invests 820 million euros, the sum meaning shares and capital increase. Enel won, this summer, the bid for the electricity distributor. The stockholder of Electrica Oltenia is the Czech group CEZ, which invested, last year, 166.5 million euros to take over 51% of the bonds. Electrica Moldova was bought, in 2005, by E.ON in a trasaction of 100 million euros. The last three subsidiaries of Electrica will be privatized through direct sale of a 42% package and an increase of capital through which the investor will get 51% of the company’s bonds. The privatization process will be individual for each subsidiary and the increase in capital through cash inflow will take place at the same time as the sale of 42% shares package.

Mittal Steel Galati risks suspension of environmental licence

Mittal Steel Galati company risks losing its environmental permit for delays in upgrading polluting installations, and needs to invest USD 76.1 M in measures for the protection of the environment, Environment Commissar Ion Drugan stated yesterday.
Ion Drugan, Chief Commissar of the Galati Environmental Guard, stated, on Thursday, that, up to March 2007, Mittal Steel would have to invest USD 76.1 M in environmental measures, and that it had only invested USD 44 M so far, according to Mediafax. ‘At the present time conformity programmes present some inconsistencies; for that reason both the Agency for Environmental Protection and the company decided to develop a plan that will be monitored on a weekly basis. There are many simple unsolved measures, but those with a serious impact on the environment are few, mainly in what regards the air pollution’, said Drugan.

Romania to exceed in 2007 bio-fuel production imposed by European Union

The European Union norms stipulate that Romania should produce in 2007 at least 100,000 tonnes of bio-fuel, and until 2010 the output should exceed 300,000 tonnes of bio-fuel.
Romania is set to overtake these values, provisions for 2007 forecasting a production of 400,000 tonnes of bio-fuel, announced the Ministry of Agriculture, Forestry and Rural Development (MAPDR). As such, Romania is to align to the Kyoto Protocol's requirements, underlining that the utilization of bio-fuels instead of conventional ones will reduce green house emissions by approximately 70 percent. The broadly used oil plant for making bio-fuels is rapeseed that has also the best iodine index, resistance to low temperatures, stability as for oxidation and gives the best results when cold pressed. Rapeseed production in Romania over 2005-2006 stood at 180,000 tonnes. Soy bean is the second oleaginous plant, used in a mixture, iodine index being a limitative factor and Romania produced over 2005-2006 300,000 tonnes. Romania bases its bio-fuel production on sunflower, with a 1.6 million tonnes crop over 2005-2006 and that has a "high" oleaginous content as good as the one of the rapeseed. Romanian companies that invest in bio-fuel production are, along traditional Autoelite Baia Mare (north), Martifer - Lehliu (south), Ulerom Vaslui (east), Ultex Tandarei (south), Expur Slobozia (south), Argus Constanta (south-east) and Rompetrol.

Romanian-Hungarian cooperation for identification of tourism projects

Romanian and Hungarian Governments on Thursday agreed in joint meeting in Budapest to intensify cross-border cooperation through working groups due to focus mainly on the issue of health tourism, reads a release issued by the Romanian executive.
The cooperation in this field between the two states allows the joint utilization of funds granted by the European Union for the training of the personnel working in climatic and balneological health resorts. Another goal agreed upon by the two sides is the creation of cross-border theme tourism routes, due to enjoy joint promotion in tourism information materials. The sides also decided to expand the network of touch-screen information points designed to provide statistical data referring to the respective areas. The sides decided the four cross-border working groups on health tourism, ecotourism and rural tourism, training in tourism and EU funds to intensify the collaboration.

Business in Romania

A marketplace of 22 million, 37 million acres of arable land, a vibrant oil and gas industry, breathtaking landscapes, an expanding economy, a well-educated workforce with more than 50,000 specialists in information technology, access to the Black Sea and Asia. These features of Romania have attracted U.S. investors in banking, energy, biotechnology, manufacturing, electronic components, cable operation, consumer products, telecommunications and film production, among others. They have discovered that American management and capital works profitably in Romania. U.S. exports in Romanian are growing as well, fueled by Romania’s economic expansion and new reductions in trade barriers.
Business in Romania

Romanian Country Commercial Guide

The Country Commercial Guide (CCG) presents a comprehensive look at Romania's commercial environment using economic, political, and market analysis. The CCGs were established by recommendation of the Trade Promotion Coordinating Committee (TPCC), a multi agency task force, to consolidate various reporting documents prepared for the U.S. business community. Country Commercial Guides are prepared annually at American Embassies through the combined efforts of several U.S. government agencies.

Romanian Government Support for Investors

The Romanian government supports foreign investors through the Romanian Agency for Foreign Investments, known as ARIS. ARIS provides a variety of information and assistance for foreign investors through its Bucharest office and through its website at http://www.arisinvest.ro

Article from: buyusa.gov

Business in Romania. Doing business in Romania and business problems.