Investment and Business Investment and Business Opportunities in the Opportunities in the Republic of Moldova Republic of Moldova Ministry of Economy of the Republic of Moldova
Jan 15, 2016
Investment and Business Investment and Business Opportunities in the Republic of Opportunities in the Republic of
MoldovaMoldova
Ministry of Economy of the Republic of Moldova
Republic of Moldova: geo economically advantageous position
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Republic of Moldova: overview (preliminary data, approx.)
GovernmentRepublic,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)3
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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
New economic development paradigm based on New economic development paradigm based on investments and exportinvestments and export
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PovertyPovertyreductionreduction
Job Job creationcreation
Risk Risk reductionreduction
Sustainable growth and developmentSustainable growth and developmentof Moldova economyof Moldova economy
Trade partners(Source: NBS, 2011)
Belarus4% Austria
2%
Others27%
Russia14%
Ucraine13%
Romania11%
Germany8%
China8%
Italy7%
Turkey7%
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January - September 2011, mil.$January - September 2011, mil.$ExporExport: 1549,7 mil. $ ImportImport: 3693,8 mil. $ CIS: 626,5 (40,4%) CIS: 1191,7 (32,3%) EU: 774,8 (50,0%) EU: 1642,8 (44,5%)
Belarus3%
Austria0%
Others20%
Russia28%Romania
18%
Italy 10%
Ucraine7%
Germany6%
UK5%
Turkey3%
EXPORT IMPORT
Foreign trade by type of product
7Source: NBS, 2011
January – September 2011, mil. $
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636,7713,9 843,8 1020,2 1258,3 1843,7
2566,62649,6
2837,5
3062,1
2002 2003 2004 2005 2006 2007 2008 2009 2010 sem I 2011
FDI - BNM data
Foreign Direct Investment in Moldova
Yearly FDI net inflow (mil. $)
84,1 73,8 146,2 190,7 239,7
533,6712,8
127,8 198,9 152
2002 2003 2004 2005 2006 2007 2008 2009 2010 sem I2011
Cumulative FDI stock (mil. $)
FDI Origin
FI ,1994 – FI ,1994 – 01.10.01.10.2011, NBS2011, NBS9
Netherlands 17,6%
Cyprus 11,2%
Italy 7,7%
Germany 8,7%
Russia 19,7%
Romania 6,4%
UK 3,4%France 2,9%
USA 3,2%
Others 19,2%
FDI Structure
Financial Services; 20,4%
Wholesale and retail trade; 17,1%
Manufacturing Industry; 14,0%
Real-estate transactions; 16,8%
Transport and Communications
7,4%
Electricity, Water and Gas; 19,3%
Hotel and Reastaurants; 1,1%
Construction; 1,1%
Agriculture; 0,9%Others; 1,9%
FDI by sector in cumulative FDI stock at 01.10.2011, NBS10
Benefits of Benefits of Investing in the Investing in the
Republic of MoldovaRepublic 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. Morocco2. Moldova3. Macedonia, FYR4. Sao Tome and Principe5. 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
12% Corporate Income Tax – since 2012, with incentives for investors
Double Taxation Avoidance Agreements (DTAA ) with 39 countries
Corporate Income Tax in the Region
Romania 16% flat rate
Ukraine 30% for non-residents
Bulgaria 10%
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International trade benefits of the RM
VAT reimbursement on export activities;VAT reimbursement on export activities;0% corporate income tax – up to 2012; http://www.fisc.md/en/lege/0% corporate income tax – up to 2012; http://www.fisc.md/en/lege/Double Treaty Avoidance Agreements with around 44 countries.Double Treaty Avoidance Agreements with around 44 countries. 15
Competitive Labor & Operational Costs
Moldova1,1 €/hourMoldova
1,1 €/hour
Romania4.0 €/hourRomania
4.0 €/hour
Workforce costs in the region
Bulgaria4.0 €/hour
Bulgaria4.0 €/hour
Ukraine 2.0 €/hour
Ukraine 2.0 €/hour
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Free Economic Zones
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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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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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Promising location of the industrial parks in the
regions of Moldova
OcnitaOcnita
Feasibility studies: http://mec.gov.md/sector/121/2604
Successful Investors of the RM
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THE WORLD FAMOUSTHE WORLD FAMOUSMilestii Mici Milestii Mici
Largest wine cellar by number of Largest wine cellar by number of bottlesbottles
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The cellars of the Milestii Mici wine-making plant in Moldova contain over 1.5 million 1.5 million bottles of winebottles 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 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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