Investment and Business Opportunities in the Republic of Moldova Ministry of Economy of the Republic of Moldova
New economic development paradigm based on investments and export Poverty reduction Risk reduction Job creation Sustainable growth and development of Moldova economy
Trade partners(Source: NBS, 2011) January - September 2011, mil.$ Export: 1549,7 mil. $ Import: 3693,8 mil. $ CIS: 626,5 (40,4%) CIS: 1191,7 (32,3%) EU: 774,8 (50,0%) EU: 1642,8 (44,5%) EXPORT IMPORT 6
Foreign trade by type of product January – September 2011, mil. $ Source: NBS, 2011 7
Foreign Direct Investment in Moldova FDI - BNM data Cumulative FDI stock (mil. $) 8
FDI Origin FI ,1994 – 01.10.2011, NBS
FDI Structure 10 FDI by sector in cumulative FDI stock at 01.10.2011, NBS
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
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: • Morocco • Moldova • Macedonia,FYR • Sao Tome and Principe • Latvia, etc.
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 • Benefits when operating • 12% Corporate Income Tax – since 2012, with incentives for investors • Double Taxation Avoidance Agreements (DTAA ) with 39 countries
International trade benefits of the RM 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.
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
Free Economic Zones Otaci Business Marculesti Hub Airport Bălți Expo BusinessChisinau Ungheni Tvardita Taraclia Vulkanesti Giurgiulesti Port
Industrial Parks • The Law on Industrial Parks (№ 182from 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;
Ocnita Promisinglocation of the industrial parks in the regions of Moldova • 12 projectsfor establishmentand 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 theFEZ „Balti” from which: 3 – are obtained the Title of Industrial Park, including1 park is in construction phase, registeredaccording tothe Law 182/2010 Feasibility studies: http://mec.gov.md/sector/121/2604
THE WORLD FAMOUSMilestiiMiciLargest wine cellar by number of bottles The cellars of the MilestiiMici 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.
Cricova – Moldova’s underground treasureIn 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.