Great report Robin

This really caught my eye -

"I recently read that the Economist Intelligence Unit ranks Romania ahead of India, Russia, and China in terms of IT sector competitiveness.'

Yes, I have heard the same and see real proof of this. That is, that Romania is awash with American Venture Capitalists.

Why?

Well, they came to Romania because of the IT talent - and they stayed (investment wise) because of the opportunity.

This makes Romania different - it seems to be able draw from US investment in a way that the other states of CEE haven't done quite as well.

For instance, whilst Slovakia is awash with car firms - they are all European - and the Asian manufactures have choosen the same Slovakia/ E. Czech/ S. Poland axis.

The American's - Ford - have gone further afield to Romania.

Equally, it might not mean much to most Brits - it certainly didn't mean much to me when I first heard about it - but Bectel (the company building the motorway from Bucharest to Hungary via Cluj) is ... you guessed it...

... a huge American firm too!

Well, perhaps the Yanks have spotted that the Brits dont' really get Romania and they have decided to leapfrog them and go for the big prize.

Good on them.

Cheers
Neil

Hi Neil

As previously stated Craiova is my black horse for 3rd Tier development....but the Ford deal isnt signed and sealed yet....and may still need re-negotiation depending upon the deliberations of the European Commission.

But let's raise a glass and toast Dacia who will be driving prices down when they enter the British market next year if not before! http: / /www .autocar .co .uk /News /NewsArticle /AllCars /225487/

And as for IT you are dead right! I dont have the stats to hand but I wouldnt mind betting that you could quite rightly refer to Cluj as being the IT capital of Europe. Some of our IT folk have to work in Bucharest but I know some who negotiate 4 day weeks and come back here for long weekends.

When I attended your November event Simon B made a comment about Romania and IT. Up until then I'd kept my mouth shut but his observation had to be qualified so I politely pointed out that although there may be more Indians working in the IT field in the UK as a proportion of the population Romanians were not just ahead of Indians but were in a League on their own.

But it's not all one way traffic. In today's papers you will find that Cluj company, CoSoSys is opening an office in Silicon Valley (the California one). http: / /www .cososys .com /press _releases _docs /Comunicat _de _presa -CoSoSys _face _primul _pas _pe _piata _nord _americana _11 -Feb -2008 _RO .doc
http: / /www .ziuadecj .ro /action /article?ID=8759 Because of a particular aptitude which seems to be in the blood IT knowledge and skills seems to be Romania's biggest export.....but let's say 'cheers' to CosoSys and hope they take those Americans for their dollars and bring them back to Cluj.

And of course last week it was announced that American companies Office Centre and Genpact were to occupy 90% of Cluj Iulius Business Centre...IT orientated companies again.

Finally the most famous American import to Romania must be a Texan who boasts that he is handsome and is learning Romanian. He lives with his family half a mile from here and yearns for Cluj's first golf course. I refer to John Guerry, the local Nokia boss. Check the pics and the links for yesterday's Nokia party.
Interview with John Guerry, Nokia Manager in Jucu (in English)
http: / /www .ziuadecj .ro /action /article?ID=8672
Nokia party
http: / /www .nineoclock .ro /index .php?page=detalii &categorie=business &id=20080212 -511878
http: / /www .zf .ro /articol _160625 /nokia _launches _romanian _based _production _with _basic _model .html

But then of course we have a delegation of 17 Japanese companies arriving shortly after the Ambassador's visit last week. Interestingly Japanese is one of many languages taught at Babes Bolyai University which also has an extensive Japanese library. For solid industrial and Hi-Tech investment I think established international companies such as those that will be amongst the Japanese delegation are a better bet than American venture capitalists.

Linking this to the stress that readers have been caused by prudent management of the Romanian economy it is export activity by companies such as Dacia and CosoSys
that will earn foreign currency which comes back into the country.

Compare this with inward foreign investment by multinationals which may provide jobs but the profit that is earnt from that labour does not stay in Romania but gets channelled out into the countries of origin of those companies.

I actually think the last thing Romania needs at the moment is American venture capitalists. It is the likes of them who have messed up their own back yard with global consequences....send them home!

Best wishes

Charles

More on CosoSys here : http: / /www .ziuadecj .ro /action /article?ID=8809

The company was founded by a German, Roman Foeckl, in 2003 whe he left Goldman Sachs. He says that he considers Bucharest people to be aggressive and chose Cluj for a number of reasons. People are friendly; there is a high level of education; many IT graduates speak four languages - Romanian, Hungarian, English and German. He notes that young people are very talented in Cluj and his company takes students on placement many of whom obtain job offers.

New employees start on 400 -600 Euro a month but can earn much more. The company develops software for portable storage devices and endpoint security. The company has reached the finals of something called the Hot Company competition.

Customers include Phillips, Verbatim and Freecom. The company's website can be found at http: / /www .cososys .com /index .html

Hi Charles

Thanks for your info.

Although I disagree with your view on American venture capitalists.

The guys I've meet - based near Cluj - are smart business people who understand the long term economic potential of Romania. I don't believe they will withdraw their capital any faster than anyone else.

So, no let's not start Yank bashing.

I was merely pointing out that the American's are moving faster than many Brits / Europeans who seem to have a tainted (and wrong) image of Romania which I think shows that the American's are more open minded about Romania than most Europeans.

Cheers
Neil

Good morning Neil

Just to let you know I have a role for American adventure capitalists! The President of the County Council reads your passion well. A new football stadium built to FIFA standards may well be located in Jucu. Put your finger on investors and I'm sure we will all do well!

http: / /www .informatiacluj .ro /index .php?id=12 &tx _ttnews[tt _news]=5529 &tx _ttnews[backPid]=7 &tx _ttnews[sViewPointer]=1 &cHash=4a89ca3521

Cheers

Charles