Dutch local investment sentiment stabilizes

Robin van Rozen, newly appointed acting president of the Netherlands Romanian Chamber of Commerce (NRCC), says that IT and agriculture are among Romania’s strong points in attracting foreign investments. He pointed out that Dutch investors’ sentiment towards Romania – which has resulted in EUR 7 billion in FDI – has stabilized.

How will the liberalization of the remaining EU labor markets for Romanians impact Dutch companies employing local workers?

The NRCC is pro European Union, and free labor markets are something we really endorse. We do not see it as a threat or an issue. It is good for business. Romanians working in Holland should get the same benefits and the same kind of salaries as Dutch people get.

What is the level of Dutch investments in Romania and what is investors’ sentiment like?

There are 4,000 Dutch companies in Romania and the investment level stands EUR 7 billion. The business sentiment is stabilizing. We are slowly getting more confident. I’m hearing many more people talking about the future and opportunity in Romania than at the beginning of 2013. The sentiment is getting more positive, though still very cautious. The tradition with the Dutch is transport and logistics, IT and agriculture. These are the strongholds, I think, compared to other Eastern European countries.

What lessons can Romania learn from the Netherlands on agriculture?

In Holland we have 2 million hectares of farmland, which provide food for 100 million people. The 12 million hectares in Romania provide food for only a much smaller number of people. For me that shows opportunity.

cv robin

What are Dutch investors’ main concerns surrounding Romania?

The top concern, which is not about Romania alone, is stability. Stability in policymaking and taxes is what foreign investors look for. Then, there is another discussion where Romania performs very well, which is the capabilities of the country, especially the labor force. People are quite positive in this area compared to other Eastern European countries.

It is the skilled labor force that always comes up; of course the level of English is very high compared to other countries. In addition, from what I have experienced myself, there is generally a positive business attitude. Romanians are keen to work and progress, which are key ingredients when you make investments.

Do investors still perceive Romania as a country with low labor costs?

For cheaper labor, you go to different countries where there is not that much of a skilled labor force. I think here you can see how you can have almost the best of both worlds – yes, labor costs are cheaper than the rest of Europe, that’s a fact, but you can have skilled labor, which is essential. I think the Dutch see the Romanian market more from that perspective, considering the relatively cheap and skilled labor.

Is it easier to find skilled workers in Romania, because this is one of the core issues mentioned by foreign investors locally?

I think whether you can find skilled labor depends on the industry. One of the industries that is doing extremely well in Romania is IT. When I talk to IT companies, I do hear them say it is getting more difficult to find good workers, because the pool is only so big, so it is almost a missed opportunity. I would almost be tempted as a country to say, let’s put more people in IT because we can export more as a country. In this field, I hear people saying it is more difficult. For the rest, I’m not hearing that much, to be honest.

What are some of the initiatives undertaken by the NRCC to improve the local business environment?

We are bringing companies together to let them talk to each other, to see if there are mutual benefits. I have experienced this myself in Holland and you can leverage that. For example, we have a lot of different services like equipment, consultancy, and a lot of practical points like travel agents. It opens up opportunities and it is direction setting.

We have launched a nearshoring guide to give more guidance and support to what needs to be done, to set up your business in Romania, for example, but also what the government can do to make it easier first. Policymaking and giving advice is, I think, another building block of our association.

My personal interest is in IT because one thing I noticed when I came to Romania is how successful and big this industry is in Romania, and also in Holland I see we are quite strong, so this is a win-win situation. It feels like this is an opportunity both countries can further leverage, as some of our members are Dutch IT companies.

The NRCC currently has 120 members, coming from banking, oil, industry, art, culture and consumer goods, so it is a balanced picture.

What’s in store for Romania regarding the nearshoring initiative?

We can say we are selling Romania in terms of putting it on the investors’ map. A lot of Dutch investors are not aware of Romania. The PR engine is not so big that they can immediately say the country’s unique selling points. Some other countries are sometimes better at selling themselves and making themselves sound more attractive.

We’re trying to make Romania less of a black hole for some of our investors, and I think that is beneficial to Romania. Stability in regulation and taxes is essential, and the companies I talk to are quite positive.

You came here from the Czech Republic – can you compare it with the business environment in Romania?

My personal experience is that Czechs are very good engineers and you have a lot of small engineering start-up firms, linked to the car industry. In Romania I see more entrepreneurs, more people with business sense, more commercially adapted, and that is why start-up companies in the Czech Republic are in the engineering field and here more in IT – it makes perfect sense.

As Romania grapples with record low levels of FDI, do you have any recommendations on how to attract more investors to the country?

Apart from the government issues regarding policymaking and stability, other points are EU funding. It is really useful when the government develops really long-term plans, such as five-year plans, because it will help get more EU funding realized. For me, among the points I hear some of our members make, and I think it makes sense, is that it would be good to a set up a unit within government for foreign investors. We need more communication with foreign investors about what opportunities there are in Romania.

Is the NRCC making any recommendations on how to improve Romania’s absorption of EU funds?

Yes, we are involved and the companies we represent are in some cases already involved as well, but we make clear recommendations. For instance, what I saw in Bulgaria is that along with the government, they have developed a five-year plan for healthcare, something that would be great in Romania too.

I do not think the NRCC can do that on its own; it is too ambitious. But the NRCC together with perhaps other chambers or organizations can help there. Sometimes we can be critical of the Romanian government, but I think we should also be critical about our organizations. One thing I came to realize after discussions with a lot of people is that the Romanian business community is rather fragmented, so supposing the government wants to talk to the business community, to whom should they talk?

In Holland, there is one organization that represents the business community. It is good if we as chambers work closely together to help to build this country.

Did you first come in Romania in 2013?

No, when I was in Prague I was responsible for 18 markets, so all of Eastern Europe, and I also visited Romania. I can still remember in 2010, when the crisis hit Romania, I was here and that was depressing. I went to Baneasa Shopping Mall and there was nobody there at a peak hour, and that was sad to see, but I think that is long past.

Do Dutch companies complain a lot about the government, politicians and policymaking in the Netherlands?

You always have people that have a different view. As a nation, we are quite balanced, so I think when it comes to Romania we have the same stance. Of course, some politicians are complaining about the opening of the labor markets, but I think that overall it is quite positive because they are pro Europe. There is not so much complaining.

Ovidiu Posirca

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