“An economy can grow with the help of foreign companies, indeed. However, we need to use our imagination here and see how things will be in ten years,” said Horatiu Tepes, owner of roofing manufacturer
Bilka Steel in Brasov.
“Labor cost will most likely increase until then and many of the multinationals operating in Romania will leave. We will probably go through a crisis for this reason.”
Average net wage in foreign companies operating in Brasov was 2,142 lei (EUR479) in 2014, while the average wage in Romanian companies in the county stood at RON1,058 per month.
Tepes’ statement was made at the `Capitalul privat romanesc – o sansa pentru dezvoltarea economica a Romaniei’ (‘Romanian capital – a chance for Romania’s economic development’) conference organized by ZF and Banca Transilvania in Brasov. This is the second stop of the ZF project Romania’s Entrepreneurs after Pitesti, which will continue with other major cities in the country soon.
The topics entrepreneurs, managers of Romanian companies and associations of local companies debated included the export of products ‘made in Romania’. They say such ideas create value added in the economy.
“In Romania, we don’t respect the Romanian innovator, we don’t respect the Romanian ideas we do nothing to help put them into practice. Romania has nothing to sell. How many products devised, designed and made in Romania do we see abroad?” said Cristian Parvan, general secretary of the Businessmen’s Association of Romania (AOAR).
“We sell Dacia, but Dacia is not ours, it is Renault’s, let’s not forget that. Innovation is the key word of the future. Entrepreneurs, please use your experience in innovating and we will support you, because where there is value added, there is profit.”
Prahova and Brasov are two of the most important industrial centers of Romania in terms of production and number of Romanian entrepreneurs who have built manufacturing businesses. In Prahova, for instance, the entrepreneurs focused on components for the oil industry, as the county attracted companies like OMV Petrom and Lukoil because of its oil resources. On the other hand, in Brasov, many entrepreneurs either used the former communist plants deserted after 1990 or became suppliers for giants like Continental.
“Brasov used to be the second most important industrial hub in Romania a number of years ago, and has now dropped to eighth or ninth by industrialization. Unfortunately, this area has been occupied by multinationals, but we are still seeing many entrepreneurs starting businesses there even in the IT sector,” said Andrei Dudoiu, deputy chief executive officer of Banca Transilvania.
Companies in Brasov County posted more than RON37 billion revenue in 2014, while companies in Prahova posted more than RON35 billion revenue. In Covasna, however, the revenue of all companies stands at only RON5 billion, while in Harghita at RON8 billion, according to Trade Registry data. The overall revenue of companies in Romania amounted to RON1,088 billion in 2014.
There are 16,000 companies in Brasov, more than 14,000 in Prahova, 3,200 in Covasna and 6,000 in Harghita.
Most important businesses in Covasna and Harghita operate in the wood and furniture industry. (EUR1=RON4.4738)
(English version by Loredana Fratila-Cristescu)