31/10/2008 - Translation - Interview Granted To Business Standard On 23 October 2008
The main effect triggered by the international crisis over Romania will be the return of the labour force that had left the country. Brian Davies, Chairman of the British Romanian Chamber of Commerce made the aforementioned statement for Victor Popa, the TMC correspondent in London.
Davies: “We do not know what impact the credit crisis will trigger. However, we are expecting the return of the skilled labour force to Romania; the wages have increased and this is an experience similar to that of the Polish persons in the UK: many people are going back home. If this happens, then this will be a very positive thing, because these people are a key element for the Romanian economy,” Brian Davies said.
According to Davies, the poor development of the infrastructure is a weak point for our country in the process of attracting foreign investments.
“Infrastructure is the main problem. It is very difficult to travel in this country. Based on my 12-year experience in Romania, I can say that things have become worse; the traffic is more difficult because of the increasingly more cars and of the worse and worse roads. This is a crucial aspect for a ‘manufacturer’ that has to move his commodities,” Davies added.
According to Davies, the Romanian economy’s sectors that are attractive to the British investors are in the field of automotive industry, information technology, services, real estate and agricultural produce. “I think that redirecting some major automotive manufacturers to Romania is good news for this industry and for the suppliers in the field [ . . . ] If we take Slovakia or the Czech Republic’s example, centres of excellence were developed simultaneously with the arrival of the major automotive manufacturers. As a matter of fact, the universities have developed such centres of excellence too. The auxiliary industry became more prosperous at the same time. I believe investments will be made in this field, even if, during the upcoming years, the demand for cars will become more temperate or will decrease. However, people will continue to buy cars. I also think that the sector of services offers significant opportunities. As you know, Bucharest is currently passing through a boom interval in the field of IT and media. As regards the rural area, the potential for agribusiness is significantly high.
Romania has vast resources, which are obviously underused at this moment,” Davies went on. The authorities’ poor involvement is yet another factor that hinders the development of businesses in Romania. “Generally speaking, the business environment is a friendly one but, as a manufacturer, I can say that we do not benefit from any kind of support from the government,” Davies concluded.
Davies: “We do not know what impact the credit crisis will trigger. However, we are expecting the return of the skilled labour force to Romania; the wages have increased and this is an experience similar to that of the Polish persons in the UK: many people are going back home. If this happens, then this will be a very positive thing, because these people are a key element for the Romanian economy,” Brian Davies said.
According to Davies, the poor development of the infrastructure is a weak point for our country in the process of attracting foreign investments.
“Infrastructure is the main problem. It is very difficult to travel in this country. Based on my 12-year experience in Romania, I can say that things have become worse; the traffic is more difficult because of the increasingly more cars and of the worse and worse roads. This is a crucial aspect for a ‘manufacturer’ that has to move his commodities,” Davies added.
According to Davies, the Romanian economy’s sectors that are attractive to the British investors are in the field of automotive industry, information technology, services, real estate and agricultural produce. “I think that redirecting some major automotive manufacturers to Romania is good news for this industry and for the suppliers in the field [ . . . ] If we take Slovakia or the Czech Republic’s example, centres of excellence were developed simultaneously with the arrival of the major automotive manufacturers. As a matter of fact, the universities have developed such centres of excellence too. The auxiliary industry became more prosperous at the same time. I believe investments will be made in this field, even if, during the upcoming years, the demand for cars will become more temperate or will decrease. However, people will continue to buy cars. I also think that the sector of services offers significant opportunities. As you know, Bucharest is currently passing through a boom interval in the field of IT and media. As regards the rural area, the potential for agribusiness is significantly high.
Romania has vast resources, which are obviously underused at this moment,” Davies went on. The authorities’ poor involvement is yet another factor that hinders the development of businesses in Romania. “Generally speaking, the business environment is a friendly one but, as a manufacturer, I can say that we do not benefit from any kind of support from the government,” Davies concluded.
