Information and communications technology to Romania

(Last updated: 12 Jul 2007)

Trends and opportunities

The market

The Romanian Government’s policy framework for the information and communication sector is driven by three key objectives:

• Developing ICT capability as an engine for economic growth both as an industry sector and as infrastructure for the rest of the economy
• To assist reform of public administration; driving efficiency, cost savings, transparency and countering corruption
• To fulfil requirements necessary to allow entry and participation in the European Union (EU)

Romania has had some success as an assembler of hardware components – sourced from Asian manufacturers – using the advantage of Romania’s relatively low labour costs (by European standards). 

The Romania Government’s strategy recognised that the ICT industry was underdeveloped and that, in order to catch-up with rest of Europe, the industry would require ‘promotional state’ involvement rather than the ‘minimal state’ involvement that was practised during the 1990s.

The government has privatised and deregulated the sector and the same time secured funding from the World Bank and the EU to embark on an ambitious program of e-government initiatives. 

The government’s total liberalisation (substantially complete by 2003) of the sector included reducing import barriers for ICT capital equipment; specifically:

• Computer peripherals and parts
• Telecommunication products
• Data storage products and software
• Scientific equipment
• Semiconductors and equipment for semiconductors

At present only about 25 per cent of the population regularly access the Internet. Fixed-line penetration in Romania is low – especially in the more remote rural communities – at 18 per cent of the total population. This is one of the lowest fixed-line penetration rates in Europe. However, mobile penetration is higher than fixed-line connections (and growing) and cable TV penetration is over 70 per cent. These forms of connectivity are more likely to support increased Internet usage than the copper wire network.

Romania has a vibrant IT services and software development sector. There are more than 8000 software companies in the country. 

Opportunities

Opportunities in the Romanian ICT industry for Australian exporters include:

• Customised software for the transportation, energy, insurance, and banking sectors
• Internet, interactive services and multimedia content
• Internet and online services
• E & M-commerce applications
• B2B and (especially) B2G commerce
• Wireless PBX (in building coverage)
• WAP and VoIP applications
• Introduction of smart cards
• Professional services

Competitive environment

Local companies satisfy about 60 per cent of software demand.

Most of the major US software companies, including Microsoft and Oracle, sell in the market. US companies account for 75 per cent of software imports.

European Union countries, especially from Western Europe, are active suppliers of hardware and software to Romania.

Tariffs, regulations and customs

There are no restrictions for the import of ICT products (in accord with Romania's World Trade Organization commitments).

Import licences are automatic and issued for statistical purposes. However, ICT products (hardware, software or communications equipment) have to be certified by a specialised department of the Ministry of Communications and Information Technology.

A 19 per cent value added tax and 0.5 per cent custom commission – calculated on the cost, insurance and freight (CIF) value­ – are levied on imported products.

Industry standards

The Government of Romania, Ministry of Communications and Information Technology is responsible for administering ICT standards.

The IT standards adopted by the Romanian Government are the relevant International Organization for Standardization/International Electrotechnical Commission (ISO/IEC) standards. These standards are not compulsory.

Marketing your products and services

Market entry

Australian firms should consider participating in local (general and specialised) trade events in order to identify operators, local distributors, joint venture partners and/or retail-shop networks of interest.

Government sector expenditure accounts a third of the IT market in Romania. Australian suppliers (or their agents) should monitor the regular release of tenders. 

Australian suppliers, especially in the case of communications equipment, should consider running limited pilot projects to demonstrate proof-of-concept and to leverage market awareness. 

Distribution channels

The primary distribution channels for ICT products and services in Romania are existing distributors, agents, and joint ventures.

Transport

Romania is in the process of upgrading its transport infrastructure. The country is serviced by rail, sea and air connecting all the population and commercial centres and linking to neighbouring countries.

Romania’s capital, Bucharest is serviced by two international airports – the larger, Henri Coanda International Airport (formerly Bucharest Otopeni International Airport) and Bucharest Aurel Vlaicu Airport (former Baneasa Airport).

TAROM, the flag carrier airline of Romania, provides passenger and air cargo services using Henri Coanda International Airport as its main operating base.

Constanta is the largest seaport on the Black Sea. Constanta is linked to Bucharest by rail and freeway and is serviced by its own airport. A large canal connects the Black Sea, at Constanta, to the Danube River.

The Romanian road network is extensive but inadequate for the volume of traffic that uses it. Rail is the main form of freight transportation.

Links and industry contacts

ICT–related resources

Ministry of Communications and Information Technology – www.mcti.ro
National Association of Software Companies – www.anis.ro
Romanian Association for Electronic and Software Industries – www.aries.ro

Government, business and trade resources for Romania

Ministry for Foreign Affairs and Trade – www.mae.ro

Romanian Chamber of Commerce and Industry ­– www.ccir.ro

Contact details

The Australian Trade Commission (Austrade) is the Australian Government’s trade and investment development agency, operating as a statutory agency within the Foreign Affairs and Trade portfolio.

Austrade assists Australian businesses contribute to national prosperity by succeeding in trade and investment, internationally, and promoting and supporting productive foreign investment into Australia.

Austrade:

• Delivers services that assist Australian businesses initiate, sustain and grow trade and outward investment.
• Promotes Australia as an inward investment destination and, with the States and Territories, supports the inflow of productive foreign direct investment.
• Administers the Export Market Development Grants scheme.
• Undertakes initiatives designed to improve community awareness of, and commitment to, international trade and investment.
• Provides advice to the Australian Government on its trade and investment development activities.
• Delivers consular, passport and other government services in designated overseas locations.

A list of Austrade offices (in alphabetical order of country) is available.

More information

For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au

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