Download Republic of Moldova

Investment and Business
Opportunities in the Republic of
Moldova
Ministry of Economy of the Republic of Moldova
Republic of Moldova:
geo economically advantageous position
2
Republic of Moldova: overview
(preliminary data, approx.)
Government
Republic,
Declaration of Independence August 27, 1991
Population
3,56 million people (1 Jan. 2011)
Literate Population
96%
Working-age Population
1,1 million people (4th quarter 2010)
Unemployment rate
7,4 % (2010)
Inflation Rate (medium annual) 7,4% (2010)
GDP
$ 5,8 billion (2010)
GDP per capita
$ 1631 (2010)
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Total recovering of the national economy from the
economic crisis
Indicators
2009 to
2008, %
2010 to
2009, %
2011 to
2010,
%
2011 to
2008,
%
GDP
92,2
105,6
107,5
104,7
Agricultural production
102,6
111,4
103,9
118,8
Industrial production
75,1
106,6
109,1
87,3
Export
79,3
104,5
164,9
136,7
Import
64,2
111,9
141,7
101,8
Investment in fixed capital
61,6
96,4
131,8
78,3
including construction and
assembling works
66,3
92
112,9
68,9
Transported goods
40,7
104,6
113,7
48,4
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New economic development paradigm based on
investments and export
Business climate
Industry
Poverty
reduction
Access to capital
market
•Industrial parks
•Innovation
•Technological Transfert
Infrastructure
Energy efficiency
Risk
reduction
Job
creation
Agriculture
Services
• Subsidies efficiency
• Organic agribusiness
and food processing
• Export oriented services
with HVA (IT, multimodal
Quality
infrastructure
Education
Public services
transport, logistics, etc.)
• Outsourcing
• E-Commerce
Sustainable growth and development
of Moldova economy
Fiscal policy &
administration
Privatization
PPP , Free zones,
Industrial parks
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Trade partners
(Source: NBS, 2011)
January - September 2011, mil.$
Export: 1549,7 mil. $
CIS: 626,5 (40,4%)
EU: 774,8 (50,0%)
Import: 3693,8 mil. $
CIS: 1191,7 (32,3%)
EU: 1642,8 (44,5%)
EXPORT
IMPORT
Turkey
Italy 7%
7%
UK Turkey Belarus Austria
Germany
3%
5% 3%
0%
6%
Ucraine
7%
Others
20%
China
8%
Austria
2%
Others
27%
Germany
8%
Italy 10%
Romania
18%
Belarus
4%
Romania
11%
Russia
28%
Ucraine
13%
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Russia
14%
Foreign trade by type of product
January – September 2011, mil. $
807.7
Export
Import
603.0
382.7
308.7
270.7
263.4
241.0
152.7
208.8
73.8
28.6
Vegetable products
Source: NBS, 2011
Prepared foodstuff,
beverages, tobacco
Mineral products
214.0
Products of the chemical
industry
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Textile and textile articles
Machinery and mechanical
appliances
Foreign Direct Investment in Moldova
Yearly FDI net inflow (mil. $)
533,6
84,1
73,8
2002
2003
712,8
239,7
146,2 190,7
2004
FDI - BNM data
2005
2006
127,8 198,9
2007
2008
2002
2010
sem I
2011
Cumulative FDI stock (mil. $)
2566,6
636,7
2009
152
713,9
843,8
1020,2
2003
2004
2005
2649,6
1258,3 1843,7
2006
2007
2837,5
3062,1
2008
2009
2010 sem I 2011
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FDI Origin
Others 19,2%
Netherlands 17,6%
USA 3,2%
France 2,9%
UK 3,4%
Romania 6,4%
Cyprus 11,2%
Russia 19,7%
Italy 7,7%
Germany 8,7%
FI ,1994 – 01.10.2011, NBS
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FDI Structure
Agriculture; 0,9%
Others; 1,9%
Financial Services;
20,4%
Construction; 1,1%
Hotel and
Reastaurants; 1,1%
Wholesale and
retail trade; 17,1%
Electricity, Water
and Gas; 19,3%
Transport and
Communications
7,4%
Manufacturing
Industry; 14,0%
Real-estate
transactions; 16,8%
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FDI by sector in cumulative FDI stock at 01.10.2011, NBS
Benefits of
Investing in the
Republic of Moldova
Openness to foreign investment
The Government provides equal rights for all
investors;
89 states have invested in Moldova, including
all member-states;
The amount of capital investment of the EU
states is 64% of total FDI
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Rankings on the ease of Doing Business
(2012 )
• Change in the Rank, Moldova: 18 points higher.
• Economies that improved the most across 3 or more
areas measured by Doing Business:
1.
2.
3.
4.
5.
Morocco
Moldova
Macedonia, FYR
Sao Tome and Principe
Latvia, etc.
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Fiscal incentives
A. Incentives when starting a business
 VAT refund for capital expenses on long-term
investments, except for housing and vehicles (not
applicable in Chisinau and Balti)
 VAT and customs tax exemption for assets to be
included in the share capital of the company
B. Benefits when operating

Corporate Income Tax in the Region
Romania
16% flat rate
Ukraine
30% for non-residents
Bulgaria
10%
12% Corporate Income Tax – since 2012, with
incentives for investors
 Double Taxation Avoidance Agreements (DTAA )
with 39 countries
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International trade benefits of the RM
Member
of WTO
Member
of
CEFTA
EU
Autonomous
Trade
Preferences
Member
of CIS
EU
CEFTA
CIS
501 mil.
people
31 mil.
people
276 mil.
people
Access to
the market
808 mil.
people
VAT reimbursement on export activities;
0% corporate income tax – up to 2012;
http://www.fisc.md/en/lege/
Double Treaty Avoidance Agreements with around 44 countries.
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Competitive Labor & Operational Costs
Workforce costs in the region
Romania
4.0 €/hour
Ukraine
2.0 €/hour
Bulgaria
4.0 €/hour
Moldova
1,1 €/hour
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Free Economic Zones
Availability of
necessary
resources (water,
gas, energy)
Developed
transport
infrastructure
Exemption from
excise duties
VAT
exemption
50% from
general
corporate
tax
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Industrial Parks
 The Law on Industrial Parks (№ 182 from 15 July 2010):
 30-year term for the industrial park;
 Free change of land use;
 Free transfer of state land to the company administrator;
 Opportunity to lease state land with a 30% discount;
 State contribution to the infrastructural and technological
development;
 Limited by and controlled Government inspections;
 Assistance from local authorities and the Council to promote
investment projects of national significance;
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Ocnita
Promising location of the
industrial parks in the
regions of Moldova
12 projects for establishment and
operation of industrial parks :
• 3 – based on the joint stock
companies with the majority state
capital
• 5 – based on the public property
assets
• 3 - based on the private property
assets
• 1 – within subzone no.3 of the FEZ
„Balti”
from which:
3 – are obtained the Title of Industrial
Park, including 1 park is in
construction phase, registered
according to the Law 182/2010
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Successful Investors of the RM
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THE WORLD FAMOUS
Milestii Mici
Largest wine cellar by number of bottles
The cellars of the Milestii Mici wine-making plant in Moldova contain over 1.5 million
bottles of wine. The bottles are stored in 55 km (34 miles) of underground galleries
excavated in lime mining operations. The first bottle was stored in 1968, and new
vintages are added each year.
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Cricova – Moldova’s underground treasure
In just 15 km North of Chisinau, lays a of subterran city, a labyrinth of avenues and
streets, named after wine types. Cricova’s museum stores the country’s national
collectional of 1.3 millions of bottles, the oldest one beeing from 1902.
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