Presentation on theme: "Republic of Moldova: general info Land boundaries: Total: 1,389 km International borders with: Romania 450 km, Ukraine 939 km. Coastline: Moldova has."— Presentation transcript:
Republic of Moldova: general info Land boundaries: Total: 1,389 km International borders with: Romania 450 km, Ukraine 939 km. Coastline: Moldova has access to the Black Sea via Giurgiulesti port located on the maritime section of the river Danube. Climate: Moderate winters, warm summers. Land use: Arable land: 54,2% permanent crops: 8,8% other: 37,0% (2006). Population: 3 563.7 (2010).
External political policy of Moldova EU membership and the integration into European structures is the strategic objective of Moldova since 2003 In 2010 started the negotiations of an Association Agreement with the EU. In 2012 it is going to be established visa free regime for Moldovan citizens WTO membership since 26 July 2001 Preferential trade agreements with the European Union Preferential trade agreement with the Community of Independent States. Law on promotion of foreign investments.
External economical policy of Moldova Moldova has a central world-wide geographical position Moldova may become an effective low-cost cargo bridge between East and West
Doing business in Moldova: cheap and effective 1. Liberal Trade Policies; 2. Economic and structural reforms successfully put in place; 3. Wide range of special tax incentives; 4. Stable monetary policy; 5. Skilled and cheap workforce ~ 200-250 for medium managers and ~ 80-140 for non-qualified workers;
Taxes in Moldova 0% Corporate Income Tax ; 40 bi-lateral agreements on elimination of double taxation (including China); 0% on reinvestment earnings ; Specific tax incentives for investments in Free Economic Zone and Industrial Park.
Specific tax-free forms of investments INDUSTRIAL PARKS The main principles of Industrial parks are: Non-discrimination towards the residents of the industrial parks, regardless of their investment amount and country of origin; Non-interfering in the production activity and offering of services to the residents of the industrial parks. Development of types of activities, scheduled according to the goals of industrial park creation. In the course of creation and function of industrial park the state provides: 1. Providing of the ground area for creation of industrial park in free territory; 2. Creation necessary tehnology base for realisation business activity within the limits of industrial park; 3. Other facilities. FREE ECONOMIC ZONES The following activities are allowed in the free economic zones: 1. Manufacturing of export-oriented products; 2. Sorting, packing, marking and other similar operations on goods transiting Moldova; 3. Other activities, such as utilities, warehousing, public catering, etc. as needed to support the main activities. Benefits for investors in FEZs: Goods/ services imported into the zone are exempt from Customs duties and are zero- rated for VAT Goods imported into and exported from a zone are exempt from excise taxes Corporate income tax discount of 75% on the ordinary income tax rate during the first ten years
Existing hub investors in Moldova Giurgiulesti International Free Port: -Start of operation in 2007 -The only direct sea/river-borne -transshipment and distribution -point to and from Moldova; -A regional logistics hub, industrial park -and free economic zone on the border of -the EU with access to road, rail, river, sea; -Privately-owned and privately operated -according to EU standards; -For more information see www.gifp.md
International Air Cargo Tendencies Western European hubs are getting more and more expensive Industry continues to seek new paths to profitability Congestion problems in major European hubs facilitate airfreight migration to second tier and regional airports
Chisinau Airport ID Card: Chisinau Airport is the biggest and main airport of Moldova, (lATA : KIV, ICAO : LUKK), Eastern Europe; Location -13 km south of Chisinau; Area -480 ha; Terminal -built in 1970 and upgraded in 2000; Processing capacity -1.2 M passengers/year; Open 24/7; Concrete Runway 08-26: length of 3,590 m and a width of 45 m; Runway strength-PCN 59/R/B/X/T; Taxiway system- with taxiways A1, A2, B1, B2, C1, C2, D and E; Aprons area -with aircraft parking places, cargo/passenger pads, small repair and maintenance area, aircraft de-icing area, fire fighting station, etc.; Category –4C; Emergency protection Services Level – 6; Aircraft parking stands – 33.
Chisinau airport long-run perspectives for cargo hub H24 / 7 days at no extra cost Competition absence No hidden costs High-performance security system ELBIT (Israel), delivered 2010 Direct access to apron Not overloaded airport (~30 flights per day) Specialized services Flexible, qualified and cheap labor force (~300 EUR ) Large unused area (33,3 ha) + possibility of extension up to…. Possibility to activate in a FEZ or in an industrial park Long-term contracts, based on a mutually beneficial relationship Strategic position Possibility to discover new destinations
Available local Key- Success factors for cargo hub Geo strategic position Land availability (any extension available on your request) No special environmental restriction Competitive pricing Slot availability Efficient operations Possibility to create Free Economic Zone/ Industrial Park Quick time to market processes Legally available now
Airlines structure of a cargo transportation 20092010 cargomailcargomail Company quantity(t) share(% ) quantity(t )share(%) quantity(t ) share(% )quantity(t)share(%) Air Moldova581,530,1193,235,952632,3208,151,7 Turkish Airlines856,344,3300,255,8661,140,5133,233,1 Siberia Airlines53,72,821,54,073,34,515,43,8 Carpat Air70,83,71,50,346,62,90,60,1 Austrian Airlines47,52,55,00,950,23,15,41,4
2006200720082009 Total transported cargo (mln of tonnes), including: 16.718.517.79.2 Railway transportation11.111.811.04.4 Motor transportation5.46.5 4.6 Fluvial transportation (thousand tonnes) 141.5166.5202.0182.0 Air transportation (thousand tonnes) 0.971.000.83 Freight traffic of the transport enterprises
Investors opportunities The Moldovan Government sees the development of free economic zones (FEZ) instrumental to attracting investments in Moldova and promoting exports. FEZs are generally expected to host competitive industries and provide a variety of export services. To entice a growing number of businesses, the Government intends to establish industrial parks in Moldovas regions and small cities that have promising infrastructure so that businesses take advantage of Moldovas inexpensive inputs. The Government is currently drafting a law on industrial parks in order to expand production, widen the range of export goods, and replace imported goods with domestically produced equivalents. The free economic zones are created and activate according the Law regarding the free economic zones. According to its stipulations, resident of the free economic zone can be any natural body or legal entity registered as stipulated by the legislation as subject of the entrepreneur activity in the Republic of Moldova. At the moment, there are 8 free economic zones in the Republic of Moldova The Government of the Republic of Moldova is planning to create 3 projects of industrial parks. The state will insure the industrial parks with best conditions for the process of production activity, by creating the infrastructure (fields, storage and production surfaces, engeneering networks and communications) and offer them into use to the residents. The industrial parks are constituted for a period of at least 15 years and no longer than 20 years, and they will activate on a certain place.
Investors rights and obligations in Moldova Investors rights: Freedom of Investments; Non-Discriminatory Investment Environment; Transparency; Guarantees of Investors Rights; Guarantee against loss; Resolution of Disputes; Freely convert Moldovan national currency and foreign currency; To repatriate their profits from Moldova after they fulfill their tax liabilities; To own real estate in Moldova for the purposes of carrying out their business activities Investors Compliance and obligations: To invent in compliance with international agreements, the Law and other legislative acts; To comply with the legal requirements of public authorities.
PROFITABLE BUSINESS AT CHISINAU AIRPORT 24/7 operations Favorable geographical position Cheap labor force Possibility to activate in a FEZ / Industrial Park No environmental restriction Competition absence High- performance security system Land availability