Business environment:
investment opportunities in
the Republic of Moldova
Stephane Christophe BRIDE,
Deputy Prime Minister,
Minister of Economy of the Republic of Moldova
Republic of Moldova:
geo - economic favorable position
Ministry of Economy of the Republic of Moldova
Origin of GDP, 2014
Main Industry as Percentage of GDP, 2014, (%)
100%
90%
Health and social
services
80%
Education
70%
Construction
60%
50%
Trade
40%
Agriculture
30%
20%
Transportation and
Communication
10%
Manufacturing sector
0%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Ministry of Economy of the Republic of Moldova
3
Trade Balance (2014) and Total Trade forecast (2018)
Main trade partners, 2014 (mln. USD)
Trade Volume in 2014:
7 657 mln. USD
Trade Volume has decreased in 2014:
Romania
1,237
Russia
1,141
Ukraine
656
Italy
595
Germany
by 3,32%
565
China
489
Turkey
406
-
200
400
Ministry of Economy of the Republic of Moldova
600
mln. USD
800
1,000
1,200
1,400
4
Regional Integration Efforts of RM
Free Trade
Agreement
with
Turkey
Member
of WTO
EU ATP
Member
of
CEFTA
Free Trade
Agreement
with EU
Member
of CIS
DCFTA
EU
CEFTA
CIS
501 mil.
people
31 mil.
people
276 mil.
people
Ministry of Economy of the Republic of Moldova
Access to
the market
808 mil.
people
Moldova’s comparative advantages
Corporate income tax (CIT)
Moldova
Romania
Ukraine
Russia
Italy
Slovakia
12
CIT rates
16
19
20
20.3
12 % 6 %
23
0
%
Value added tax – standard
rate
Russia
Moldova
Ukraine
Slovakia
Italy
Romania
18
VAT rates
20
20
20
21
20 %
8%
0
%
24
Social insurance
contributions
Moldova
Italy
Romania
Russia
Slovakia
Ukraine
Source: PriceWaterhouseCoopers
23
23.81
27.75
30
35.2
49.7
Ministry of Economy of the Republic of Moldova
6
Investment opportunities in Moldova
There are numerous investment opportunities
Agriculture & Food Processing
Fertile soil for corn, fruits & vegetables
Free access on EU market w/o custom
duties & tariff quotas for most products
Wine
Great potential for the wine industry
Ideal conditions: climate, latitudes 4648° (France & northern Italy), slopes
Banking
Banking system has been mostly
privatized and streamlined, but still
offers opportunities
ICT
ICT products export
Well trained work force
Taxes incentives for IT companies
Government support
programs to boost equity
investments
Energy
Upgrade power-generating facilities
Develop alternative energy sources
Transport
Roads rehabilitation and maintenance
Public transport
Utilities infrastructure
Construct/modernize water and sewerage
systems
Waste management
Business infrastructure
Free Economic Zones
Industrial parks
Business and Innovation Incubator
Privatization
Ministry of Economy of the Republic of Moldova
Public-Private
Partnership
7
Benefits of Investing in Moldova
Geo economical advantageous position
Benefits from public-private partnership
Equal rights for all investors
International collaboration benefits
Free Economic Zones incentives
Industrial Parks opportunities
Fiscal facilities (Exemption from tax payments
(VAT and customs
duties) of imported raw material used for the production with export
destination (deferred payment for 180 days)
Ministry of Economy of the Republic of Moldova
Foreign Direct Investments in Moldova
Annual FDI Flow (mln. USD)
800
700
600
500
400
300
200
100
0
711.5
541.3
288.2
258.5
146.2
190.7
2004
2005
2006
2007
2008
208.3
207.9
2009
2010
231.3
207.4
175.1
2011
2012
2013
2014
Cummulative FDI Stock, (mln. USD)
4000
3262.1
3500
3000
2773.9
2965.4
2009
2010
3466.7
3614.5
3646.9
2596.3
2500
1876.5
2000
1278.1
1500
1000
843.9
1020.2
500
0
2004
2005
Source: National Bank of Moldova
2006
2007
2008
Ministry of Economy of the Republic of Moldova
2011
2012
2013
2014
9
Success Stories:
Giurgiulesti International Free Port (PILG)
PILG
Port operations
Short sea;
River shipping
Giurgiulești International Free Ports’
entire territory has a status of a free
economic zone until 2030.
Inland
transportation
Forwarding
Business Park
Ministry of Economy of the Republic of Moldova
10
Success Stories:
Giurgiulesti International Free Port (PILG)
• Black Sea & Danube River Port
• Location: km 133.8 / mile 72.2 of the
river Danube
• Private Port - ICS Danube Logistics SRL
acting as general investor and operator
• Multi-modal Logistic Centre
• Business Park
• Entitlement for 120 ha of land (leased
for 99 years)
• Free Zone Status until 2030
Ministry of Economy of the Republic of Moldova
11
Thank you
for your attention!
Stephane Christophe BRIDE,
Deputy Prime Minister,
Minister of Economy of the Republic of Moldova
Ministry of Economy of the Republic of Moldova
12