Grabar-Kitarovic is on a three-day official visit to Romania and on that occasion a Romanian-Croatian business forum has been organised by the two countries' chambers of commerce.
The forum is being attended by 22 Croatian and 45 Romanian companies, and the two presidents addressed the event to highlight the importance of promoting economic cooperation.
Grabar-Kitarovic said that the Croatian and Romanian markets were offering great business opportunities and that there was potential for boosting economic, business and investment ties between the two countries.
She said that Croatia and Romania faced a long road ahead before reaching the level of economic development and the living standards of the old European Union member states.
"I am glad that Croatia and Romania are also maintaining close cooperation within the Three Seas Initiative, in accordance with our shared views that by establishing closer infrastructure links in Central Europe we can increase competitiveness and encourage growth that will bring us closer to western members of the European Union," Grabar-Kitarovic said.
Iohannis put special emphasis on the role of business people in strengthening economic cooperation, expressing hope that this forum would contribute to that.
"Our respective countries are among the youngest members of the European Union, both advocating the common values of unity and solidarity within the Union. I suggest we use the potential at our disposal to further strengthen the integration process. The main impulse for that should come from you, the business people. I encourage you to explore with optimism all economic opportunities that can strengthen cooperation between the two countries," Iohannis said.
He noted that considerable progress in advancing bilateral relations had been made in recent years, with trade reaching about 300 million euros, which he said was still far below the potential.
"In the first half of this year trade increased by almost 30 percent, which is a very good result, but I suggest we should be even more ambitious, especially in the area of high technologies. It is also important to achieve regional energy cooperation," the Romanian president said.
Defence, electrical industry, IT, transport and tourism seen as key areas
Grabar-Kitarovic said that the partnership between the two countries had particular potential in such key areas as the defence industry, electrical industry, information technologies, transport, infrastructure and tourism.
She stressed the importance of transport links, especially by air and along the River Danube. "In this regard, I welcome the launch of a direct flight service between Zagreb and Bucharest and seasonal flights between Bucharest and Split, which have increased the tourist exchange," the Croatian president said.
The chairman of the Croatian Chamber of Commerce, Luka Burilovic, said he was particularly glad about the increase in trade between the two countries in the first six months of the year.
"There is great potential for advancing economic relations, notably in transport and infrastructure, energy, information and communication technologies, the defence industry, shipbuilding, the car industry, tourism, strategic partnerships and joint ventures on third markets," Burilovic said. "I hope the talks will be useful to all those involved," he said, adding that Croatia's door was open to Romanian companies.
In the first half of 2017, trade between Croatia and Romania reached 157.3 million euros, an increase of 25 percent over the first half of 2016. Croatian exports to Romania rose by 35 percent to 71.6 million euros, while imports from Romania reached 85.8 million euros, 20 percent more than in the first half of last year.
Later on Tuesday, Grabar-Kitarovic is due to hold separate working meetings with senior officials of the Romanian parliament and Patriarch Daniel of the Romanian Orthodox Church. She is also scheduled to deliver a lecture at Bucharest University on Croatia's contribution to the consolidation of Europe.
On Wednesday, the Croatian president travels to Temisoara where she is scheduled to give a lecture at the West University. On the same day, she will visit the villages of Karasevo, Klokotic and Lupak to meet with representatives of the Croatian community in Romania.