10 Reasons Why You Should Invest in Brașov

Founded by the Teutonic Knights in 1211 and settled by the Saxons as one of the seven walled citadels, Brașov has been one of the most important and flourishing cities in central Romania over the centuries.

The historic location of the city at the intersection of trade routes linking the Ottoman Empire and western Europe allowed the city to obtain considerable wealth and exert a strong political influence in the region, while exuding a distinct medieval ambience that has been used as backdrop in many recent films.

In present days, the Brașov Metropolitan Area continues to emphasize its economic and cultural heritage, becoming one of the fastest growing cities in the European Union. The city stands out for having one of the densest assemblies of industrial parks in Romania, which have been a decisive factor in attracting foreign investment and contributing to a strong territorial cohesion.

1. Tradition in manufacturing

Brașov has a long-standing tradition in manufacturing (in sectors such as auto-manufacturing, tractors, trucks, aeronautics, machinery), it has a well-trained labor force, and the best vocational education school in Romania (the Kronstadt School).

Industrial development in Brașov started in the inter-war period, when the city starting producing the first Romanian fighter planes used during World War II. Based on the aeronautics platform that still exists to this date (and is set to manufacture a large number of military helicopters in the coming years), the heavy industry production was strongly accelerated here during the last decades.

In recent years, the Brașov Metropolitan Area managed to attract a large number of international manufacturers to its industrial base, being one of the most developed industrial cities in the region. Brașov is currently a site for manufacturing aeronautics, hydraulic transmissions, auto parts, trucks, tires, ball-bearings, construction materials, hand tools, furniture, textiles, shoe-wear, wood-processing, and a brewery.

2. Second most important tourist attraction in Romania

Brasov has a long tradition in tourism and rich offer for tourists, being a cultural, religious, business, city break, medical tourism, relaxation, sports, and adventure spot.

Banking on its historical and cultural heritage (one of the most important Saxon fortresses in Transylvania), on the most popular sky resort in Romania (Poiana Brașov), and on a number of other tourist attractions in and around Brașov (e.g. Bran/ Dracula’s Castle, medieval fortresses and towns, mountain hiking trails), Brașov manages to attract tourists all year round.

Number of tourist arrivals by metropolitan / functional urban area between 2007 and 2017

Source: Romania National Statistics Institute

3. Strategic location at the cross-road of major thoroughfares

Brașov is strategically located in the center of Romania, at a point where three major highways will meet, close to Bucharest and a number of other large urban centers in Romania (Ploiești, Sibiu, Târgu Mureș). The Brașov County Council is now developing the airport in Ghimbav, which will increase connectivity substantially.

Brașov will benefit from major road and rail projects proposed in the National Transport Masterplan

Source: General Master Transport Plan, Romanian Government 

4. One of the fastest growing cities in the EU

Of the 256 largest cities in the EU , Brașov has registered one of the fastest growth rates between 2000 and 2015. Brașov has actually registered a faster annual growth rate between 2000 and 2015 (8.16%) than Singapore in its period of rapid growth – 7.25% between 1965 and 1980.

GDP per Capita growth rate in selected EU cities, between 2000 and 2015

Source: Romania National Statistics Institute

Brașov GDP per Capita (PPS) Growth rate between 2000 and 2015 and Singapore’s GNI per Capita (Atlas Method) growth rate between 1965 and 1980

Source: Romania National Statistics Institute

GDP per Capita (PPS) in Brașov and in EU Secondary Cities

Source: Romania National Statistics Institute

5. Highest density of industrial parks in Romania

The Brașov Metropolitan Area has one of the highest densities of industrial parks in Romania, operated both by the public sector and by the private sector. They have been a decisive factor in attracting foreign investment over the last decade and have helped to strengthen territorial cohesion.

The most important industrial parks in the area are:

• The Industrial Park Braşov (website)
• The Prejmer Industrial Park (website)
• The ROMAN Industrial Park (website)
• The Zărneşti Industrial Park (website)
• The METROM Industrial Park (website)
• The CARFIL Industrial Park (website)
• The WDP Logistics Park (website)

Overall, industrial parks in the Brașov Metropolitan Area amass over 300 ha of land (10% of the total national stock), the companies hosted by them benefiting from fiscal facilities established by the Ministry of Economy. Brașov has the second biggest area dedicated to industrial parks, after Prahova County (605 ha), and ahead of the Bucharest-Ilfov Metropolitan Area (244 ha), and Cluj County (239 ha).

6. Skilled Labor Force

Around 172,300 people were gainfully employed in the Brașov Metropolitan Area at the 2011 Census. Of these, 87% worked for a private company, 11% worked for the public sector, and 1.4% were self-employed. Much of the Brașov labor force works in manufacturing (28%), retail (16%), construction (9%), and transport (6%).

7. Competitive Salaries

In 2017, the average monthly salary in Brașov was 2,383 Romanian Lei (around 530 Euro, or around $600), with a substantial variation between individual sectors. The highest salaries are offered in the following sectors: IT &C (~€1,040); petrochemical industry (~€750); aeronautical industry (~€740); manufacturing of automobiles and auto components (~€715); finance (~€660); energy (~€660); manufacturing of equipment and tools (~€620); and, manufacturing of electrical equipment (~€580).

The lowest monthly salaries were offered by sectors such as: furniture (~€258); cleaning (~€265); furniture (~$260); waste collection (~$310); plastics industry (~$315); hotels and restaurants (~€290); extractives (~€300); textiles (~€315); gambling (~€320); food industry (~€325); and, construction (~€325).

8. Quality of Life & Cost of Living

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 Brașov, 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. The Municipality of Brașov applies such a scheme, reducing the property tax by 50% for companies that invest in the tourism sector.

Details on state aid schemes can be obtained here: http://investromania.gov.ro/web/state-aid/

10. Growth Drivers in Brașov