If you’re considering relocating or opening a factory or a new business, there are many factors to consider, such as labor costs, tax rates, government regulations, and infrastructure. While China and Asia have long been popular destinations for businesses due to their low labor costs, Romania has emerged as a competitive alternative. In this blog, we’ll discuss why Romania could be a better choice for your business than China or other Asian countries.

Lower Labor Costs

One of the primary reasons why businesses move their operations overseas is to reduce labor costs. While China and other Asian countries have traditionally been seen as attractive locations for businesses due to their low labor costs, Romania is now offering an even more competitive alternative. According to a 2019 report by Eurostat, the average hourly labor cost in Romania was €7.50, compared to €27.70 in Germany, €20.30 in France, and €14.30 in the Czech Republic. This means that businesses operating in Romania can save a significant amount of money on wages, which can translate into higher profits and lower prices for customers.

Strategic Location

Romania’s location in Eastern Europe makes it a strategic choice for businesses looking to expand into the European Union (EU) market. Romania shares borders with five other EU countries, including Hungary, Bulgaria, and Ukraine. This proximity to the EU market means that businesses can take advantage of the free movement of goods and services within the EU, making it easier and more cost-effective to distribute products across Europe.

Business-Friendly Environment

Romania has made significant progress in improving its business environment in recent years, making it more attractive to foreign investors. The country has introduced a range of tax incentives and streamlined its bureaucracy, making it easier for businesses to set up and operate in the country. In addition, Romania has a well-educated and skilled workforce, with a high percentage of the population speaking English and other foreign languages, making it easier to conduct business with international partners.

Strong Infrastructure

Romania has invested heavily in its infrastructure in recent years, with a focus on improving its roads, railways, and airports. The country has also made significant progress in expanding its broadband network, which is crucial for businesses that rely on digital technologies. In addition, Romania has a highly developed industrial sector, with a strong focus on automotive, IT, and electronics manufacturing.

Conclusion

While China and other Asian countries have long been popular destinations for businesses looking to reduce labor costs, Romania has emerged as a competitive alternative. With its low labor costs, strategic location, business-friendly environment, and strong infrastructure, Romania is an attractive location for businesses looking to expand into the EU market. If you’re considering relocating or opening a factory or new business, it’s worth considering Romania as a viable option.