Investment and Business Opportunities in the Republic of Moldova

2. Republic of Moldova:
geo economically advantageous position

3. Republic of Moldova, overview
Government
Population
Literate Population
Working-age
Population
Unemployment rate
Annual Inflation
Rate
GDP in current prices
GDP annual growth rate
Republic, Declaration of Independence
August 27, 1991
3.56 million people
96%
2.37 million people
5.1% (2013)
4.9% (2013)
7.65 billion USD (2013)
8.9% (2013)

4. 7%
24%
17%
52%
Services
constroction
trade & vehicles' reparation
transport & communication
other services
Other services include: hotels &
restaurants, financial services, real
estate, public administration;
education, health, other social &
personal services

5. Priority industries
Food and Beverage
Industry
Manufacture of
packing from glass
and a cardboard
Light industry
Manufacture of
machinery and
equipment
Chemical industry
Information
Technology Industry
45,5%
6,7%
9,3%
2,8%
1,7%
0,9%

6. The structure of the sector
Light industry
Manufacture of
textiles and wearing
apparel
Manufact
ure of
textiles
Manufact
ure of
wearing
apparel
Manufacture of
leather, leather
products and
footwear The share of exports

7. Trade Partners (2013, mil. $)
Export: 2399 mil. $
EU: 1141.9 (47.6%)
CIS: 923.6 (38.5%)
Import: 5492.7 mil. $
EU: 2471.7 (45%)
CIS: 1669.8 (30.4%)

8. 843.8
1020.2 1258.3 1843.7 2566.6 2649.6 2837.5
3111.5 3270.7
3668.3
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Foreign Direct Investment in Moldova
0
200
400
600
800
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
146.2 190.7 239.7
533.6
712.8
127.8
198.9
274
159.2
231.3
Cumulative FDI stock (mil. $)
Annually FDI net inflow (mil. $)

9. FDI Origin
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%

10. 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%

11. Speech by the President of the
European Council Herman Van
Rompuy at the Republic Palace,
Chisinau, Moldova:
• “Our bilateral trade, despite the
global economic crisis, has gone
up by a third. In the World Bank
ranking for "Ease of doing
business", Moldova has moved up
ten places; and seven places in
the corruption index of
Transparency International.”
• “Due to EU financial support Moldovan economy has grown four times. The European Union will
continue to help with financial and technical support. More foreign investment will flow in
Moldova.”
• “Moldovan products are already popular on the European market. Your
wine is doing marvels, even in France! The Association
Agreement will be like the wine maturing in Cricova: getting even better
with time!”

14. Fiscal incentives
A. Incentives when starting a business
 VAT refund for capital expenses on long-term
investments, except for housing and vehicles
 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
 Farming enterprises – 7% CIT rate
 Double Taxation Avoidance Agreements (DTAA)
with 44 countries
Corporate Income Tax in the Region
Romania 16% flat rate
Ukraine 30% for non-residents
Bulgaria 10%

15. International Collaboration Benefits of the RM
EU
501 mil.
people
CEFTA
31 mil.
people
CIS
276 mil.
people
Member of
WTO
Member of
CEFTA
EU
Autonomous
Trade
Preferences
Member of
CIS
EU
Free Trade &
Association
Agreement
2014

16. Free Economic Zones
50% corporate
income tax rate
VAT exemption
Exemption from excise
duties
Developed transport
infrastructure
Availability of
necessary resources

17. Industrial Parks
13 projects of industrial parks creation
3 Parks under construction
Support on central
and local level
Free change of land use
Free transfer of state land to the
company administrator

18.  Favourable geographical position and equal rights for all investors
 Proximity to large world markets (European Union and Community of Independent States)
 Platform for manufacturing and exporting to both the CIS and the EU
 Competitive general corporate income tax rate in the region – 12%
 Tax and customs framework similar to that of the EU
 Tax incentives for large investments and a decreasing tax burden. Companies investing in
excess of $ 250,000 can get a reduction in corporate income tax payable for up to five years.
 Considerable network of Investment Protection Agreements and improved legal
framework regulating entrepreneurial activity
 Investment opportunities via privatisation of public property and public-private partnership
 Market access through 4+1 FTA: WTO members (worldwide); Autonomous Trade Preferences
(EU countries); CEFTA members (most Balkan countries); CIS members; Free Trade
Agreement with all EU countries after the 27th of June, 2014 (plus Association Agreement)
 Free Economic Zones incentives and Industrial Parks opportunities
 Well-skilled multilingual workforce and relatively low employment costs
 Favourable visa regime for 91 countries (NO VISA for EU countries, CIS, Turkey, Israel,
Dominica, Malaysia, Togo, Kenya visa on arrival only, Bangladesh visa on arrival, etc.)
 Logistical, transport and communication infrastructure
 Access to the Black Sea through Giurgiulesti International Free Port
 Stable Economy: the exchange rate of the Moldovan Leu, the national currency of Moldova,
against the US Dollar has oscillated mainly between 10 - 13 MDL during the past 10 years.

19. THE WORLD FAMOUS
Milestii Mici
Largest wine cellar by number of bottles
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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.

20. 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
collection of 1.3 millions of bottles, the oldest one being from 1902.
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