- Posted by: RISE Consortium
- Category: Business plans, Competitive research, Economics, Funding trends, Innovation, International

Located in the northeastern part of the country, Bacău was for many centuries part of the crossing points of the most important commercial routes linking Poland, Hungary, Russia and Constantinople. Over the past hundred years, the history, culture and religious life have molded the city’s unique character, turning Bacău in one of the largest cities and main economic centers of the province of Moldavia.
Bacău is known as one of the most important urban centers in its region and plays an important development role here due to its rich experience in aircraft manufacturing, large number of skilled labor force, rich entrepreneurial influence from the first Romanian unicorn company, and its flamboyant lifestyle.
Future national strategic infrastructure development plans put Bacău at the forefront of the northeastern region, setting the scene of turning the city as one of the most important logistic hubs of the country. You can find below some of the remarkable business opportunities this city will provide for your company, along with RISE Consortium’s commitment to ensure the best support for foreign investors throughout all stages of the process.
1. Promising logistic hub developments
The city’s growing industrial activity and the strong university center profile are conducive to a consolidated position of Bacău as a regional development pole in the coming years, providing a favorable climate for establishing additional industrial parks.
Bacău is located at the crossroad of 5 national roads and 2 large rivers (Bistrita and Siret), having one of the busiest railway stations in the country. The city has long-been one of the most important transit stops from Ukraine, Russia and Republic of Moldova.
In addition to the HIT Industrial Park located near the city borders, 30 more hectares of land will soon become available from the former Letea Bacău paper mill, making it a promising site for future logistic hub developments.
2. Home to the largest Romanian company
Starting as small local furniture company in Bacău in the early 1990’s, Dedeman has become over the last years the largest Romanian-owned business built by local entrepreneurs. The company recorded a turnover of EUR 1.13 billion in 2017 (20.5% y-o-y growth) and a net profit of close to EUR 200 million.
Dedeman was the first private Romanian company to reach the “unicorn” status and is one of the largest local contributors to the state budget. Although the company has been undergoing large M&A processes in the last years and established a local investment fund for both business and real-estate projects, the owners remain faithful to Bacău and announced they have no intention to move the company headquarters to other cities.
Moreover, the owners of Dedeman (with a net worth of EUR 1.8 billion according to Forbes 2018) are dedicated to increase company investments in Bacău and develop the local economy.
3. Strong aviation industry
With history of over 65 years, Aerostar Bacău has been the foundation in the Romanian aviation industry. Aerostar is the Romanian hub for integration, manufacturing, upgrade and maintenance for aviation and ground defense systems, having built a series of IAK and IAR aircraft for the Romanian Army.
The Romanian Army has committed to support the company in Bacău to become an excellence center for the regional aviation industry. The Romanian Armed Forces has selected Aerostar Bacău for maintenance services of the 12 F-16 Fighting Falcon fighter jets and the 36 additional units to be acquired by the Defense Ministry this year.
Aerostar is currently in advanced negotiations with Lockheed Martin for F16 and the HIMARS rocket systems, and with Raytheon for the Patriot missile systems.
4. Developing infrastructure
The north-eastern region of Romania plays an important role in the country’s future infrastructure development, with Bacău as a central site in this strategy. In 2016, the Romanian Government approved the General Transport Master Plan, a strategic infrastructure development program for the country in the following decade.
The document includes the following infrastructure developments for Bacău:
- Highway connection with the capital city via Bacău – Brașov – Bucharest;
- Three Expressway connecting major cities in the north-east;
- Airport modernization project;
- Bacău multimodal platform modernization.
Map of future infrastructure developments according to the General Transport Master Plan
5. Steady GDP growth
The data issued by the National Commission for Strategy and Prognosis show that the GDP at current prices for the Bacău County record a 30% growth between 2015 and 2019. Although Bacău’s GDP contribution at national level is low (1.92%), it maintains its second position at regional level with 18.88%. Economists believe that Bacău is set to become one of the upcoming growth drivers in Romania after the General Transport Master Plan will be set in place.
The structure of Gross Domestic Product on the North-East region
Source: The Bacău Integrated Urban Development Strategy (2014-2020) / National Institute of Statistics
6. Skilled Labor Force
Around 201,200 people were gainfully employed in the Bacău County according to a 2015 study. Although agriculture still remains the largest employment activity in the county, there has been a 17.27% decrease in the past five years. The workforce has been steadily migrating to the manufacturing sector (which recorded a 5% y-o-y growth since 2010).
The structure of average employment for the North-East Region between 2010-2015
Source: The Bacău Integrated Urban Development Strategy (2014-2020) / National Institute of Statistics
The main sectors of employment for the labor force in the Bacău County
Source: The Bacău Integrated Urban Development Strategy (2014-2020) / National Institute of Statistics
7. Competitive Salaries
In 2017, the average monthly net salary in Bacău was 2,031 Romanian Lei (around 430 Euro, or around $480). When compared to average 2017 monthly net salaries in other EU countries, Bacău is very competitive from the point of view of an accessible, skilled labor force.
The highest salaries are offered in the following sectors: editing activities (~$1,700); oil and gas (~$975); public administration (~$844); the production and distribution of energy (~$786); financial intermediation and insurance (~$740).
The lowest monthly salaries were offered by sectors such as: film production activities (~$278); other industrial activities (~$296); hotels and restaurants (~$300); furniture (~$336); administrative and support services (~$347); construction (~$381).
The evolution of the average salary at national, regional and county level between 2010-2015
Source: The Bacău Integrated Urban Development Strategy (2014-2020) / National Institute of Statistics
8. Cost of Living
The cost of living in Romania – especially in secondary cities like Bacău – is approximately 50% lower when compared to other western cities from EU Member States comparable in terms of population (Mainz, Grenoble, Parma, Liege) and at least 15% cheaper than other cities from CEE countries (Katowice).
Maintaining the same standard of life from | Country | with a salary of… | in Bacău, you need a monthly salary of… | |||||||||||||||||||||||
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Mainz | 3,511 Euro | 1,500 Euro | ||||||||||||||||||||||||
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Grenoble | 3,433 Euro | 1,500 Euro | ||||||||||||||||||||||||
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Parma | 3,588 Euro | 1,500 Euro | ||||||||||||||||||||||||
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Getafe | 2,692 Euro | 1,500 Euro | ||||||||||||||||||||||||
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Nijmegen | 4,024 Euro | 1,500 Euro | ||||||||||||||||||||||||
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Liege | 3,527 Euro | 1,500 Euro | ||||||||||||||||||||||||
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Katowice | 1,819 Euro | 1,500 Euro | ||||||||||||||||||||||||
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9. Supporting Private Investment
Romania has one of the lowest tax rates on the continent: the standard corporate tax rate is 16%, about half the tax you would pay in France, Germany or Italy. Fiscal incentives include tax exemption for the reinvested profit.
For companies settling in Bacău, the maximum available State Aid is 37.5 million EUR, and the gross percentage of the state aid cannot exceed 50% of eligible expenditures.
Local authorities can also support private investment projects that go above a certain ceiling of job creation and investment values, within the framework of the local de minimis aid schemes.
Details on state aid schemes can be obtained here: http://investromania.gov.ro/web/state-aid/
10. Growth Drivers in Bacău
The main sectors that have driven the Bacău economy in recent years are: wholesale and retail trade, manufacturing, and construction. As Bacău is hosting the largest Romanian-owned business in the country (in the DYI sector), there is a trend of multiple international companies joining the metropolitan areas for manufacturing and construction activities.
The main economic sectors in the Municipality of Bacău
Source: The Bacău Integrated Urban Development Strategy (2014-2020) / National Institute of Statistics