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Tuesday, February 08, 2005

Romania, 14th in company relocation chart

Romania ranks 14th in the list of countries most preferred by foreign companies looking to relocate their activity, according to a new study.

Romania reached a score of 7.08 points and was behind Bulgaria, with 7.09 points and Slovakia, with 7.12 points.

India ranks first in the chart made by EIU, with 7.76 points, having very low workforce costs, high skill levels of its graduates and a well-developed law system.

According to the analysis, India is the favorite destination for foreign companies' activity relocation. India lured investors from the U.S. and the U.K., who mainly preferred telecommunications and IT.

China ranks second, with 7.34 points, followed by the Czech Republic, with 7.26 points.

The survey, by Economist Intelligence Unit (EIU), a division of The Economist, with IT service providers Oracle and Dimension Data, concerned sixty countries and was based on information provided by 500 mangers from 75 countries.

The analysis took into account nine categories of indices, such as geographical proximity, political and security risks, economic stability, legislation, taxation, labor costs and skills level and infrastructure.

The scores given to countries considered by the survey ranged from 1 to 10 points. The final mark is calculated as a weighted average of the scores for each of the nine main categories.

Workforce costs and skills level are the most important in calculating the final score, comprising 30% of the final score. Labor legislation accounts for 10%, while the other six categories account for 5% of the final score assigned to a country.

The highest score given to Romania was 9.49, for the workforce cost category. The lowest workforce costs worldwide belong to Nigeria, which received 10 points for this chapter, followed by Indonesia, with 9.91 points, Pakistan, with 9.84 points, Ecuador, with 9.82 points, the Philippines, with 9.8 points and Ukraine, with 9.79 points.

Romania received 8.35 points for the geographical proximity chapter and 7.2 points for each for the economic stability, as well as political and security risks.
Its lowest scores referred to the infrastructure chapter, with 4.6 points, and qualification and availability of the workforce, with 5.55 points.
Legislation received 5.75 points, taxation was given 6.5 points, while labor legislation received 6 points.
Romania overtook Bulgaria in the taxation chapter, as well as in the qualification and availability of the workforce category.

Posted by Iulia Rasoiu : 2/08/2005 09:59:00 am