EY Romania Attractiveness Survey: 58% of investors expect Romania’s attractiveness to improve over the next three years

• Romania recorded the highest increase in FDI projects across CEE in 2024: +57%
• Romania climbed four places to 13th in Europe's FDI attractiveness index
• Top investment drivers: market access (48%), supply chain efficiency (36%), technology and tax opportunities (34%), cost reduction (32%)

In 2024, FDI inflows to Romania reached EUR 5.7 billion, reflecting a 14% decrease from EUR 6.6 billion in 2023, according to Attractiveness Survey Romania 2025. This decline, slightly more pronounced than the 11% drop across Europe, continues a trend of reduced inflows since 2022. Notably, FDI stocks rose by 6%, totaling EUR 120 billion as of December 31, 2024, up from EUR 113.6 billion in 2023, highlighting a long-term commitment from investors.

Amid a broader 5% decline in FDI projects across Europe, Romania experienced a remarkable 57% surge in the number of projects, increasing from 60 in 2023 to 94 in 2024. This marks the highest number of FDI projects for Romania since 2018, positioning the country as one of the most dynamic recoverers in Central and Eastern Europe.

While traditional competitors in Central and Eastern Europe, such as Poland, Hungary, and Serbia, have historically attracted significant investor interest, Romania has firmly established itself as a regional leader in 2024. With 94 announced projects, Romania secured the second position in the CEE region, trailing only Poland and surpassing Serbia and Hungary, which had outperformed Romania the previous year. This achievement places Romania among Europe’s top 15 investment destinations, ahead of several larger or more mature economies. However, job creation linked to FDI saw a pronounced decline, dropping by 31% year-on-year, from 5,935 new jobs in 2023 to 4,098 in 2024, indicating a shift towards leaner or more capital-intensive investment models.

Regional dynamics: Bucharest's dominance and emerging regions

Bucharest continues to lead Romania's FDI landscape, accounting for 40% of total projects in 2024, solidifying its status as the country’s primary investment hub. A significant contributor to this trend was Alstom’s EUR 50 million expansion project, establishing a new transport depot facility at the Căile Ferate Române (Romanian Railways) Grivița Workshops, enhancing logistics capacity. Additionally, PepsiCo reaffirmed its long-term commitment to Romania by expanding its production and distribution center in Popești-Leordeni with a EUR 95 million project aimed at transforming the site into a European-scale facility.

Outside the capital, large-scale industrial investments highlighted a diversification of Romania’s FDI footprint across regions. Constanța attracted attention with a landmark EUR 960 million investment by Turkish group Ussuri Capital, which will build a low-carbon steel plant near the Black Sea. In the Centre region, German firms were active: Rheinmetall invested over EUR 243 million in a new defense manufacturing facility in Victoria, while Knauf Insulation and Stada announced substantial projects in Târnăveni and Turda, respectively.

The North-West region welcomed a EUR 166 million investment by Austrian ceramics group Lasselsberger, while in Oradea, the STIHL Group began construction of a EUR 125 million cordless tool production facility. Meanwhile, Brăila saw a EUR 100 million commitment by Tesla Energy Storage to develop a state-of-the-art energy systems factory, and Anton Häring broke ground on a EUR 60 million plant in Siret, adding industrial weight to a traditionally less represented region in FDI terms.

Sectoral insights: a mixed bag of business activities

Manufacturing remains central to Romania’s FDI landscape, representing 41% of all investment projects in 2024, up from 40% in 2023. This robust performance confirms Romania’s strategic position as an industrial base in Central and Eastern Europe, particularly in sectors such as transportation, consumer products, and machinery. The structural realignment of supply chains and manufacturing locations is evident, especially given the overall decline of manufacturing FDI across Europe.

From a sectoral perspective, business support services (16%) and sales & marketing (15%) continue to attract interest, albeit with a more fragmented profile. Other strong sectors include Consumer Products, Transportation Manufacturers & Suppliers, and Machinery & Equipment, each with nine projects, highlighting Romania’s appeal as a manufacturing base. These industrial investments are closely tied to export-led growth and broader EU supply chain

reconfigurations, particularly in light of resilience policies such as the Chips Act and Net-Zero Industry Act.

Software & IT Services, with seven projects, remains a vital component of Romania’s digital economy, although its share has declined compared to previous years. Electronics, which ranked second in 2023, fell to five projects, indicating a recalibration of momentum, though it remains relevant in semiconductor, smart metering, and industrial technology manufacturing.

Investor landscape: a diverse array of origins

The primary sources of FDI flows have remained consistent, with Germany retaining its leading position in the Romanian investment landscape, witnessing a significant increase in activity with 23 projects, up from 16 the previous year. Turkey has risen to second place with nine projects, reflecting strengthened commercial ties, while the United States closely follows with eight projects. The United Kingdom and France each reported six projects, indicating sustained interest from the Western European market. Compared to 2023, the landscape of active investor nations has expanded considerably, underscoring Romania's growing attractiveness to a broader spectrum of global markets.

Key drivers of FDI: market access, supply chain efficiency, and fiscal incentives

In 2025, investors continue to prioritize market expansion and operational optimization as the primary motivations for establishing or expanding operations in Romania. The leading driver cited was the opportunity to access new markets and customers (48%), followed by the need to optimize operations and supply chains (36%) and capitalize on new technology and favorable tax conditions (both at 34%). This reflects Romania’s increasing relevance as a regional hub and a bridge between EU and non-EU markets, particularly in an era of fragmented supply chains and heightened digital adoption.

Cost reduction remains a critical consideration, referenced by 32% of respondents, reinforcing Romania’s long-standing appeal as a competitive production and services location. Furthermore, access to key inputs and raw materials and skills availability were each cited by 27% of executives, highlighting a comprehensive view of competitiveness that transcends cost alone.

When asked about the most important factors influencing investment decisions in Romania, executives identified the quality of infrastructure (33%, up from 20% last year) and the availability of non-reimbursable funding (32%), closely followed by market size and growth potential (29%). These insights reinforce Romania’s attractiveness as a destination where connectivity, EU-backed investment programs, and demand fundamentals converge, offering a compelling value proposition in a competitive regional landscape.

Sustaining Romania’s FDI momentum

Romania is perceived to have a competitive edge relative to other geographies primarily due to lower labor and input costs (35%), followed closely by tax competitiveness, including the availability of tax credits (31%), and the availability of non-reimbursable funding (30%). Other notable advantages include market size and growth (24%) and quality of life, security, diversity, and culture (23%).

These factors demonstrate that Romania’s attractiveness goes far beyond cost efficiency, also tapping into structural and societal strengths - a necessary foundation as investors increasingly

seek stable, future-ready destinations in a volatile European environment. While 58% of surveyed executives believe Romania’s attractiveness will improve over the next three years, this figure is down from 67% the year before.

Investors continue to cite Romania’s macroeconomic conditions as the leading risk, followed closely by geopolitical tensions, rising business costs, and political instability, cited most often by the executives among the top three concerns affecting Romania's attractiveness over the next three years.

In the face of economic uncertainty and growing investor caution across Europe, Romania has emerged as one of the region’s most dynamic FDI performers in 2024. To transform this positive momentum into long-term investment impact, the country must address persistent bottlenecks, align more closely with investor expectations, and coordinate investments in infrastructure, talent, innovation, and sustainability. With focused execution and a clear investor-oriented vision, Romania can position itself not only as a resilient outlier but also as a regional magnet for forward-looking investment.

Methodology

The EY Europe Attractiveness Survey draws on two main sources:

1. The EY European Investment Monitor (EIM)

The evaluation of FDI in Europe is based on the EY European Investment Monitor (EIM), an EY proprietary database. This database tracks the FDI projects that have resulted in the creation of new facilities and jobs. By excluding portfolio investments and mergers and acquisitions (M&A), it shows the reality of investment in manufacturing and services by foreign companies across the continent. Data on

FDI is widely available. An investment in a company is normally included in FDI data if the foreign investor acquires more than 10% of the company’s equity and takes a role in its management. FDI includes equity capital, reinvested earnings and intracompany loans. To confirm the accuracy of the data collected, the research teams aim to directly contact more than 70% of the companies undertaking these investments. The following categories of investment projects are excluded from the EY EIM:

• M&A and joint ventures (unless these results in new facilities or new jobs being created)
• License agreements
• Retail and leisure facilities, hotels and real estate
• Utilities (including telecommunications networks, airports,
• Extraction activities (ores, minerals, and fuels)
• Portfolio investments (pensions, insurance and financial funds)
• Factory and other production replacement investments (e.g., replacing old machinery without creating new employment)
• Nonprofit organization (charitable foundations, trade associations and government bodies)

Investment projects by companies in these categories are included in certain instances. For example, details of a specific new hotel investment or retail outlet would not be recorded, but if the hotel or retail company were to establish a headquarters facility or a distribution center, this project would qualify for inclusion in the database. However, our figures also include investments in physical assets, such as plant and equipment. This data provides valuable insights into:

• How FDI projects are undertaken
• What activities are invested in
• Where projects are located
• Who is carrying out these projects

The EY EIM is a leading online information provider that tracks inward investment accross Europe. This flagship business information tool is the most detailed source of data on cross-border investment projects and trends throughout Europe. The EY EIM is frequently used by government bodies, private sector organizations and corporations looking to identify significant trends in employment, industry, business and investment. The EY EIM database focuses on investment announcements, the number of new jobs created and, where identifiable, the associated capital investiment. projects are identified through the daily monitoring of more than 10,000 sources.

2. The perception survey

This study examined Romania’s perceived attractiveness via an anonymous online survey of international decision-makers. We define attractiveness of a location as a combination of image, investor confidence, and the perception of a category’s or area’s ability to provide the most competitive benefits for FDI. Field research was conducted by FT Longitude between 31 January and 3 March 2025, based on a representative panel of 100 senior corporate executives (C-suite or C-1 roles). Only individuals who are involved in or in charge of their organization's decisions about establishing or expanding operations were included in the survey. The survey panel's demographics were based on the most recently available FDI data (2023). The survey aimed to cover a representative sample of investors into Europe by geography, industry grouping and company size. Approximately 60% of respondents work for companies headquartered in Europe, and 40% for companies headquartered elsewhere. Respondent companies operate across six broad sector categories and were distributed across a full spectrum of company size (by turnover).