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EY Attractiveness Survey Romania 2025
Amid a backdrop of stagnant growth and geopolitical instability across Europe, foreign direct investment (FDI) has seen continued decline, with Europe registering an 11% drop in FDI value and a 5% decrease in project numbers in 2024. Yet, Romania stands out as a notable outlier: while FDI inflows to the country decreased by 14% in value, the number of FDI projects surged by 57%, marking Romania's best performance since 2019.
Romania climbed four places in the European FDI attractiveness index, moving from 17th to 13th, and claimed second place regionally among Central and Eastern European (CEE) countries. This performance reflects not only renewed investor confidence but also Romania's strategic importance in European supply chains and nearshoring efforts.
However, this upward trend was not without caveats. The number of jobs created by FDI declined by 31%, highlighting a broader trend toward capital-intensive, technology-driven investments. As investors grow more selective and focus on automation, innovation, and infrastructure over headcount, Romania must adapt its policy frameworks to support this new era of investment.
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Chapter 1
Now: Romania’s resilience amid weaker FDI in Europe
In 2024, Romania emerged as one of the fastest-growing FDI destinations in Europe in terms of project numbers, with 94 projects compared to 60 in 2023. The most dynamic sectors included Manufacturing (41% of projects), Business Support Services (16%), and Sales & Marketing (15%). The share of R&D investments also increased, suggesting growing investor interest in Romania as an innovation base.
Despite the positive trend in project numbers, job creation declined from 5,935 to 4,098, reflecting a shift towards leaner operations. Nonetheless, Romania's position as a regional manufacturing and logistics hub was reinforced by high-impact projects from companies like Ussuri Capital, Knauf Insulation, Stada and Tesla Energy Storage.
Bucharest maintained its status as the top investment destination, capturing 40% of all projects, while other regions like Oradea, Siret, Victoria, and Târnăveni gained momentum, diversifying Romania's FDI footprint. Several of these investments were explicitly designed to support export-oriented manufacturing and to capitalize on Romania’s proximity to Ukraine and Eastern markets.
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Chapter 2
Next: Investor perceptions of Romania in 2024: resilience, realism, and room to grow
Romania's attractiveness remains resilient, but caution persists. In 2025, 44% of surveyed executives plan to expand or establish operations in Romania — stable compared to 2023, yet still below the EU average of 59%.
Investor interest remains concentrated in tertiary activities: 55% plan sales & marketing operations and 52% plan business support expansions. Notably, manufacturing ranks third at 43%, suggesting confidence in Romania's industrial capabilities. R&D also gained ground with 41% of investors citing it as a target area.
Key investment drivers include: market access (48%), supply chain efficiency (36%), opportunities tied to technology and taxation (both at 34%), cost reduction (32%).
Executives also flagged the quality of infrastructure (33%) and availability of non-reimbursable funding (32%) as key decision-making factors. Tax predictability (35%) and regulatory simplification (33%) remain top reform priorities for tax competitivness. The business community is increasingly focused on the digitalization of permitting processes, with 41% of investors calling it essential.
Romania's technology ecosystem is progressing, yet AI remains an area for growth. While 60% of respondents see Romania's tech environment as attractive, only 45% say the same for AI. To accelerate innovation, investors call for better access to funding, stronger tech infrastructure, and workforce upskilling.
The workforce remains Romania's top competitive edge: 35% of respondents highlight labor cost and availability as a top competitive advantage. However, expectations are evolving. Investors now demand talent readiness: 37% emphasize skills in technology, engineering, and energy; 35% call for incentives for graduate retention; and 33% want broader vocational training.
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Chapter 3
Beyond: Opportunities for boosting FDI
Despite macroeconomic concerns, 58% of executives believe Romania's attractiveness will improve in the next three years (down from 67% in 2024). The country’s long-term appeal lies in structural strengths: cost efficiency, market size, funding access, and increasing digital capacity.
Key risks remain: macroeconomic instability (39%), geopolitical tensions (37%), increasing business costs (31%), political instability (23%)
To respond, Romania must focus on five strategic pillars:
- Strategic Investment Planning & Fiscal Sustainability: Align public investment strategies with macroeconomic stability and pension/tax reform.
- Access to Finance: Scale RRP and cohesion tools to improve SME financing and market participation.
- Innovation, R&D & Digital Transformation: Increase R&D spending to 2% of GDP by 2027 and scale AI and digital infrastructure.
- Green Transition: Invest in energy efficiency, accelerate renewable energy permitting, and modernize grid infrastructure.
- Governance & Regional Equity: Reduce administrative barriers, improve public procurement, and invest in regional infrastructure.
Sustainability is gaining relevance. Only 18% of investors currently choose Romania for sustainability-driven investments (vs. 32% EU average), but reforms and recent PPA agreements (e.g., OMV Petrom & DTEK) signal change. Over EUR 1.1bn in EU funds are earmarked for Romania’s energy transition.
To move from momentum to maturity, Romania must ensure delivery aligns with investor expectations. If this gap is closed, Romania is well-positioned to become a long-term strategic FDI hub in Europe.