CHAPTER 2 - WHY BUSINESS IN ROMANIA ?

2.1. General advantages

• European country under negotiations of adhering to the European Union;
• quite cheap and skilled labour;
• the second potential Central European country, after Poland (23,000,000 inhabitants);
• lying at the crossing of some imported commercial roads and market (East European countries, the Middle East, the CIS) that provide direct access to a market of 200 mil. consumers on 1,000 km area;
• access to important transporting routes. Sea and river navigation. Constantza is the biggest port at the Black Sea, the Rhine-Main-Danube canal gives access to new navigation routes from the Black Sea to the North Sea;
• various natural resources including fertile farming lands and a high tourism potential;
• varied industrial structure;
• a large percentage of people speaking foreign languages (English, French, German, Russian);
• 6 free zones: Sulina, Giurgiu, Galati, Curtici-Arad, South Constantza, Braila which enable to remove customs taxes, profit tax, VAT, excises; the import and reexport of goods and the possibility to have financial negotiations in convertible currencies; the possibility to repatriate the profit; the possibility of land concession for 50 years;
• state political-economic system.

2.2. Particular advantages for Turkish business people

• close distance (one-hour flight between Bucharest and Istanbul, 750 km, daily flights towards Bucharest, two direct flights towards Bucharest, two direct flights Istanbul - Constantza.
• various transport connections (land, sea, air);
• no visa between the two countries;
• free trade agreement between Romania and Turkey that stipulates that till 1 January, 2002 there must be a free trade zone between the two countries. It is also enforced an agreement of avoiding the double taxation between the two countries;
• there are 6,000 Turkish Companies and approx. 15,000 Turkish business people who carry on business activities in Romania;
• there is a powerful Association of Turkish Business People in Romania (TIAD) and the bilateral chamber of commerce;
• the active Turkish community in Romania (approx. 300,000 inhabitants) especially in Dobruja;
• Special investment zones (unfavoured zones), free zones;
• the functioning of the law of industrial parks;