1. Business climate of the Republic of Moldova
In our interconnected environment, the economic performance and sustainable development of developing countries are directly affected by many external factors, including those of a political and security nature. Thus, we should think about building sustainable economies, stable political and social relations that will resist and prevent emerging crises and external shocks.
Today, the Government of the Republic of Moldova has proposed a very clear task - to ensure the sustainable development of the country. We perfectly understand that achieving this priority goal is impossible without using world best practices and modern achievements. In turn, we understand that attracting significant investments, innovative ideas and technologies into the country is largely impossible without creating an attractive business climate and ensuring investment protection. In this respect, our country is undergoing a comprehensive process of modernization and reformation.
We want to inspire and share our enthusiasm for the development of the Republic of Moldova and its economic potential by offering foreign companies an attractive business climate with a host of facilities.
So, over the next few minutes, I would like to introduce you to the opportunities and performance of the Moldovan economy, as well as the potential that we can offer in developing and expanding your business.

2. THE REPUBLIC OF MOLDOVA – YOUR BRIDGE TO WEST AND EAST
the newest emerging investment destination
From the beginning it is worth mentioning the advantage of the strategic geographical positioning of the Republic of Moldova, transforming us into a bridge between East and West.
Therefore, if you want to gain access to the European and Commonwealth markets, optimize your operational costs, identify skilled labor force at competitive salaries, relocate your production, but stay close to distribution or assembly centers, Moldova is ready to meet your needs.
Even the latest Global Location Trends Report 2017 speaks for itself - Moldova ranks number six in the world in terms of the number of jobs created in the last year in relation to the population, reaching the newest destination emerging investments.

3. THE REPUBLIC OF MOLDOVA – OPEN ECONOMY
European Union – Moldova Association Agreement
Deep and Comprehensive Free Trade Area Agreement (DCFTA)
Free Trade Agreement with Turkey
Member of the Community of Independent States (CIS)
Member of the World Trade Organization (WTO)
Member of CEFTA
To capitalize on its strategic geographical position, over the last few years, the Government of the Republic of Moldova has stepped up its regional integration efforts, promoting an open economic policy. Thus, the legal framework has been strengthened, several laws on the regulation of foreign trade, competition, protection of industrial property rights, etc. have been adopted.
 An important aspect is that the legislative provisions are in line with the international legal framework, especially with the European Union. This process will continue, as the harmonization of legislation is the key to success in implementing DCFTA deep-sea commitments. Signed and ratified, the agreement involves liberalizing trade in goods and services, free movement of labor, lower taxes, reduction of technical and non-tariff barriers, abolition of quantitative restrictions and harmonization of Moldovan legislation with the EU.
 Similarly, Moldova currently has free trade agreements with the CIS countries, being historically connected to this market.
 Another important recent achievement was the signing of the Free Trade Agreement with Turkey, in force since 1 November 2016, opening new opportunities and prospects for companies operating on the Moldovan market.
 Since 2007, the Republic of Moldova is a member of CEFTA. In relations with the CEFTA countries, Moldova agreed to the full liberalization of agricultural trade with the Member States.
 In the same vein, I would like to mention the launch of the negotiations on the signing of the Free Trade Agreement with the People's Republic of China.
In conclusion, free trade agreements with the EU, CEFTA and CIS markets allow companies operating in Moldova to access about 880 million potential consumers.

4. MOLDOVAN TRADE STRUCTURE – 2016
Where Moldova’s exports go
Moldova’s exports to TOP 10 trading partners
UK mln. USD (5.6%)
GERMANY mln. USD (6.2%)
Total volume of Moldovan exports
2,045.3 mln. USD
POLAND mln. USD (3.6%)
RUSSIA mln. USD (11.4%)
FRANCE mln. USD (2.2%)
BELARUS mln. USD (5.1%)
ROMANIA mln. USD (25.1%)
European Union
1,332.4 mln. USD (65,1%)
Commonwealth
of Independent States
414.2 mln. USD (20,3%)
ITALY mln. USD (9.7%)
UKRAINE mln. USD (2.4%)
TURKEY mln. USD (3.0%)
Speaking about the trade structure of the Republic of Moldova, in the year 2016 exports of goods totaled US $ 2045,3 million, more than that achieved in 2015 by 4,0%.
Goods exports to EU countries (EU-28) amounted to US $ million (9.4% more than in 2015), accounting for 65.1% of total exports (61, 9% - in 2015) - which speaks of the impact of DCFTA implementation in the Republic of Moldova.
The CIS countries were present in the exports of Moldova with a weight of 20.3% (25.0% - in 2015), which corresponds to a value of million US dollars. Exports of goods to these countries decreased by 15.9% compared to 2015.
The analysis of the evolution of exports by country in 2016, compared to 2015, shows the increase in exports to Romania (+ 14.9%), Germany (+ 8.0%), Switzerland (+ 25.8%), Iraq , Poland (+ 7.2%), Austria (26.1%), China (1.7 times), Portugal (14.9 times), Ukraine (+ 8.4% Greece (+ 16.1%), which favored growth on total exports by 10.0%.
In 2016, compared with 2015, there were increases in exports of cereals and cereal preparations ( %), seeds and oleaginous fruits (+ 13.6%), furniture and its parts (+25 , 1%), yarns, fabrics and textiles (+ 41.6%), clothing and accessories (+ 6.7%), road vehicles (2.3 times) ), organic chemicals (2.9 times), processed metal products (+ 36.3%), footwear (+ 21.7%), alcoholic and non-alcoholic beverages (+ 2.2%), sugar, honey (+ 9.9%), dairy products and poultry eggs (+ 29.4%), which contributed to a 9.9% increase in total exports.

5. MOLDOVAN TRADE STRUCTURE – 2016
Where imports come from
Moldova’s TOP 10 trading partners for imports
CHINA mln. USD (9.8%)
GERMANY mln. USD (7.9%)
Total volume of Moldovan imports
4,020.3 mln. USD
POLAND mln. USD (3.3%)
RUSSIA mln. USD (13.3%)
FRANCE mln. USD (2.2%)
BELARUS mln. USD (2.5%)
ROMANIA mln. USD (13.7%)
European Union
1,973.7 mln. USD (49,1%)
Commonwealth
of Independent States
1,027.4 mln. USD (25,6%)
ITALY mln. USD (7.0%)
UKRAINE mln. USD (9.5%)
TURKEY mln. USD (6.8%)
In 2016, the imports of goods amounted to 4020,3 million US dollars, higher than that achieved in 2015 by 0,8%.
Imports of goods from EU countries (EU-28) amounted to USD 1,973.7 million (1.0% more than in 2015), accounting for 49.1% of total imports (49, 0% - in 2015).
Imports of goods from CIS countries amounted to US $ 1,027.4 million (0.9% more than in 2015), which equates to a 25.6% share of total imports (25.5% in 2015).
The analysis of the evolution of imports by countries in 2016 compared to 2015 shows increases in imports from China (+ 7.4%), Belarus (+ 20.4%), Ukraine (+ 3.4%), 6%), Poland (+ 8.1%), France (+ 11.0%) and the United Kingdom of Great Britain and Northern Ireland ( %).
At the same time, deliveries from Austria (-17.6%), Israel (-60.0%), Turkey (-4.6%), Bulgaria (- 15.8%), Japan (-33.1% ), Kazakhstan (-71.4%) and Uzbekistan (-77.0%), which mitigated the increase in total imports by 2.2%.
In 2016, imports of yarns, fabrics and textiles (+ 20.1%), road vehicles (+ 23.4%), clothing and accessories (+ 30.1%), alcoholic beverages, non-alcoholic (+ 25.9%), sugar, sugar-based; honey (2.0 times), specialized machinery and equipment for specific industries (+ 6.5%), processed metal products (+ 8.5%), processed rubber (+ 12.2%), fish, crustaceans, molluscs (+ 17.8%), leather and fur processed (+ 21.2%), office machinery or automatic data processing (+ 25.5%), footwear (+ 47.9%), contributing to total imports by 4.5%.
At the same time, imports of gas and industrial products obtained from gas (-20.6%), oil, petroleum products and related products (-7.9%), vegetables and fruits (-18.9%), and industrial equipment with general applications (-11.0%), non-ferrous metals (-18.4%), instruments and apparatus, professional, scientific and control (-26.3%), iron and steel (-9.5 %), coal, coke and briquettes (-50.3%), mitigating the increase in total imports by 4.4%.

6. FOREIGN DIRECT INVESTMENTS – OVERVIEW
by TOP group of goods – 9 months, 2016 (stock)
Foreign Direct Investments
by TOP group of countries – 9 months, 2016 (stock) 1
RUSSIA
– 756,01 mln. USD 2
THE NETHERLANDS
– 377,69 mln. USD 3
SPAIN
– 228,26 mln. USD 4
FRANCE
– 220,32 mln. USD 5
CYPRUS
– 218,74 mln. USD 6
ROMANIA
– 142,6 mln. USD 7
GERMANY
– 134,78 mln. USD 8
ITALY
– 134,3 mln. USD 9
GREAT BRITAIN
– 71,82 mln. USD 10
AUSTRIA
– 44,95 mln. USD
Source: National Bank of Moldova
Source: National Bank of Moldova
According to the distribution of the FDI stock in the form of social capital by branches of the economy, the main economic activity benefiting from investments remained manufacturing (23.2% of the total stock), followed by financial activities (23.0%).
In the geographical distribution of the accumulated social capital, the majority share of the investors in the EU countries was 53.4%. Investors from the CIS countries accounted for 10.9% of the total accumulated social capital, while those from other countries have investments of 35.7%. This distribution demonstrates that the Republic of Moldova is an open economy for capital from different countries.

7. INVESTMENT FRIENDLY FISCAL SYSTEM
Corporate Income Tax
Value Added Tax
Social Insurance Contributions
MOLDOVA %
RUSSIA %
MOLDOVA %
ROMANIA %
MOLDOVA %
ITALY %
UKRAINE
19%
UKRAINE
20%
ROMANIA %
RUSSIA %
SLOVAKIA
20%
RUSSIA %
ITALY %
ROMANIA %
SLOVAKIA
35.2%
UKRAINE
49.7%
SLOVAKIA
23%
ITALY %
Turning to the subject of business facilities, Moldova has one of the most competitive tax systems in the region. From this perspective, there are 48 operational tax treaties on avoiding double taxation with other jurisdictions.
Therefore, the general corporate tax rate is 12%, 20% added tax and social security contributions of only 23% - the most competitive rates in the region.
It should be noted that corporate tax may be reduced by half or more if a company is resident in the Free Economic Zone. About this instrument and its investment incentives will later speak to my colleagues at the Session dedicated to Free Economic Zones and Industrial Parks.
Among other incentives, I would like to mention:
there is no minimum capital requirement at the start of the business;
 incentives for IT employment - partial exemption from income tax and reduced social contribution;
 employers will not pay taxes on the amounts spent on food, transportation and employee training;
 companies importing raw materials receive a holiday for VAT and customs duty if they subsequently export the final product within 180 days.

8. REGULATORY REFORM 2016 – 2017 I STAGE
114 permissive acts already excluded
II STAGE
150 permissive acts to remain, by eliminating 156 permissive acts (licenses – 31; authorizations – 83; certificates – 36)
III STAGE
One Stop Shop – to be launched until the end of 2017
Business with Clear Game Rules
In addition to offering a friendly tax system, the Moldovan Government is advancing in creating attractive business conditions, which is being achieved thanks to the implementation of reforms in entrepreneurship.
Among the most important are to mention the Regulatory Reform , which aims to optimize permissive acts and to implement the One Stop Shop solutions.
In Stage 1, the Law (No. 181 of 22 July 2016) was adopted, according to which 114 permissive acts were excluded from the Nomenclature of Permissive Acts. Finally, it is aimed at removing 156 permissive acts, with 150 acts (based on three categories of permissive acts - 31 licenses, 83 authorizations and 36 certificates).
Revision and optimization of permissive acts will contribute to the "Business: With Clear Rules" objective of the Moldova 2020 National Development Strategy.
Another priority is the launch of the One Stop Shop for the management and release of permissive acts, assuming the full functionality of the information system and the issuing of at least 30% of the total number of permissive documents by the end of 2017 based on the one- stop shop.

9. REFORM OF THE STATE CONTROL
INSTITUTIONAL REFORM –
optimizing the number of institutions with control functions to 13 control bodies
PROCEDURAL REFORM –
minimum documents, maximum transparency and rights for entrepreneurs:
schedule control for a calendar year
limiting unannounced control
planned state controls with advisory role for the first 3 years after registration
the possibility of applying the measures
DIGITALIZATION OF CONTROL PROCESSES –
Unique State Register of Controls, transparency and predictability of the inspector's actions
Business with Clear Game Rules
Another important reform is the Reform of the state control of the entrepreneurial activity, which at the first stage contains the following:
1. Institutional reform that provides for the optimization of the number of institutions with control functions at 13 control bodies.
2. Procedural reform involving minimum documents, maximum transparency and rights for entrepreneurs. In order to simplify the processes and to avoid situations of abuse or uncertainty due to a large number of documents / acts within the control, it is proposed to reduce them to the maximum. The component includes:
control planning will be carried out for a calendar year, and details of how the control plan is executed.
the list of possibilities for initiating unannounced control is limited.
it is established that the state controls planned during the first three years of activity since the state registration date of the entrepreneur are advisory, that is to say, they do not result in sanctions or restrictive measures, except when these violations are offenses.
the possibility of applying the measures, but also the type of measures themselves, depend on the level of gravity of the danger caused by the infringements (minor, serious and very serious infringements). It is possible to apply restrictive measures only in the case of very serious violations and contravention sanctions only in the case of serious and very serious violations (imminent and immediate danger for life, health, environment)
3. The digitization of the control processes, which provides for the establishment of the State Register of Single Controls, transparency and predictability of the inspector's actions, including:
- priority is given to documents in electronic format created and stored in the State Register of Controls;
the duty of principle for the inspector to exhaust any other possible ways of obtaining and analyzing the information prior to the initiation of the control visit, which would allow him to avoid control, is required in detail.
 control is only possible after the risk assessment and only on the basis of checklists, which will necessarily be approved in advance by the central public administration authorities. At the same time, control will be carried out by at least 3 inspectors.
 internal supervision of the legality of unannounced controls is required. A set of contravention sanctions is proposed for the person in charge of the control body and supplemented with additional disciplinary sanctions applicable to the inspector.

10. FINANCIAL REPORTING REFORM
Single Reporting Platform
removing duplicate data and lowering reporting volume
by approx. 40%
reducing the time and cost of drafting and reporting to public authorities
the interaction of economic agents with a single public authority
concentrating the data as well as establishing a unique reporting and payment period (day 25/ monthly)
combating the phenomenon of "wages in the envelope"
(The State Tax Inspectorate, the National Social Insurance House, the National Insurance Company in Medicine and the National Bureau of Statistics)
Another important component of the reform of entrepreneurial activity is the Simplification of the financial and statistical reporting process by developing and launching a unique reporting platform at the State Tax Inspectorate, the National Social Insurance House, the National Insurance Company in Medicine and the National Bureau of Statistics. It is also about setting up a Single Report.
Currently, before the implementation of the law on 1 January 2018, all economic agents in the Republic of Moldova who have employed persons are required to submit five different reports relating to wage payments and related taxes. In order to optimize reporting to public authorities, it is proposed to replace the 5 existing reports with a consolidated report.
Accordingly, the economic agents will not report distinctly at different reporting periods but will present a single monthly report by the 25th of each month.
The following goals:
removing duplicate data and lowering reporting volume by approx. 40%.
 reducing the time and cost of drafting and reporting to public authorities;
 the interaction of economic agents with a single public authority (State Tax Service), compared to the current situation in which economic agents interact with 3 different authorities for reporting (SFS, CNAS, CNAM);
concentrating data on the payroll fund, calculated taxes and contributions, and setting a single reporting and payment period for them; to provide the SFS with an effective tool to combat the wage bill phenomenon.

11. JOB SUBSIDY REGULATION
Purpose: to stimulate businesses for job creation
Beneficiary - any legal entity practicing entrepreneurial activity in the Republic of Moldova.
The amount of the subsidy for a job created - 40 thousand lei for 2018.
The authority responsible for job creation subsidy - Ministry of Finance
In order to stimulate the economic agents - investors to create new work places, the draft of the Regulation on subsidizing the creation of jobs is currently being drafted.
The Regulation establishes the mechanism for using the financial means allocated from the state budget to subsidize job creation with a view to relaunching the national economy, including regional development and adjusting the labor market conditions.
All legal entities, except state-owned entities (more than 50 percent), who practice entrepreneurship in the Republic of Moldova, a grant applicant whose application has been positively assessed, may benefit from a grant.
For each job created will be subsidized in the amount of 40 thousand lei for the year 2018.
Starting in 2019, the amount of the grant will be indexed annually depending on the increase in the average salary on the economy
The authority responsible for awarding the job creation subsidy is the Ministry of Finance.

12. JOB SUBSIDY REGULATION
Eligibility
Impact
has an increase in the number of employees at least 100 persons
the average monthly salary at the enterprise for newly employed persons is not less than 75% of the average monthly wage in the economy
has no debt to pay taxes and fees to the national state budget
assume the obligation to maintain, for a period of at least 3 years, the number of employees and the average monthly salary per enterprise
stimulation of investments and economic growth
increase payments to the consolidated budget
empowering employers to attract available workforce and create new jobs
initiative to fight against salaries in the envelope
reducing tax evasion
The economic operator may request and benefit from a single grant if it fulfills the following eligibility criteria:
- has an increase in the number of employees of at least 100 persons;
- the average monthly salary in the enterprise for newly employed persons is not less than 75% of the average monthly wage in the economy;
- has no arrears in paying taxes and duties to the national public budget;
- may assume the obligation to maintain, for a period of at least 3 years from the grant date, the number of employees and the average monthly salary per enterprise.
Note: The subsidy does not affect the following economic activities: agriculture, forestry and fishing / mining / manufacturing (manufacture of tobacco products, explosives, weapons and ammunition manufacture, military fighting vehicles) / electricity production and supply, and heating, gas, hot water and air conditioning / construction / wholesale and retail / repair / motor vehicles and motorcycles / transport and storage / information and communications / financial intermediation and insurance / real estate transactions.
By implementing this project, which provides employment policy measures that involve a set of methods, processes and financial instruments that will contribute to:
- Stimulation of investments and economic growth;
- Increasing employment levels;
- Increasing payments to the consolidated budget;
- Stimulating employers to bring available workforce and create new jobs;
- Initiative to fight salaries in the envelope;
- Diminishing tax evasion.

13. INVESTMENT CLIMATE EASE OF DOING BUSINESS MOLDOVA – 2017
Starting a Business
– ranked 44 6
Construction Permits
– ranked 165 3
Getting Electricity
– ranked 73 24
Registering Property
– ranked 21 1
Getting Credit
– ranked 32
Protecting Minority Investors
– ranked 43 2
Paying Taxes
– ranked 31
Trading Across Borders
– ranked 34
Enforcing Contracts
– ranked 62 8
Resolving Insolvency
– ranked 60
The Republic of Moldova is ranked
44 out of 190 countries in the Doing Business 2017 ranking
( positions)
All the achievements reached in 2016 as well as future commitments have led to a global rating increase, so the Moody's International Agency has changed its country's rating from "Negative B3" to "Stable".
In addition, according to the "Doing Business 2017" report, Moldova advanced three positions, rising to 44th out of 190 analyzed economies. As shown on the screen, in 2017, we have succeeded in significantly increasing access to electricity, paying fees and executing contracts. At the same time, we have good results in the field of property registration (item 21), obtaining credits (heading 32) and cross-border trade (heading 34). It is worth mentioning that in 2017, Moldova exceeded Serbia, Italy, Montenegro, Azerbaijan and Turkey in this ranking.
Source: Doing Business 2017

14. INCENTIVES 50% of national corporate income tax
Airport ”Marculesti”
50% of national corporate income tax
3 and 5 years income tax exemption if investing 1 and 5 million USD
VAT and excise duties exemption
10 years state warranty if changing the legislation
International Free Port ”Giurgiulesti”
Free economic zones are parts of the customs territory of the Republic of Moldova, economically separated, strictly delimited on their entire perimeter, which allow certain types of preferential business activities for domestic and foreign companies. The territory of the free zones is limited by the rest of the country by a safe enclosure. The guarding of the free zones is ensured by specialized security companies based on the contracts concluded with the Administration in the respective area.
Currently, Moldova has 7 free economic zones, being allocated proportionally in the north, central and southern parts of the country.
The allowed business activities in the free economic zones are:
- industrial production of goods for export (except for ethyl alcohol and alcohol);
- sorting, packaging, labeling and other similar operations for goods in transit in the customs territory of the Republic of Moldova;
- external commercial activities;
- other auxiliary activities required for the above plants (utilities, storage, construction, restoration, etc.).
The facilities offered by the free economic zones are as follows:
- the income tax imposed on residents' incomes is paid 50% of the rate established in the Republic of Moldova;
- companies are exempt from income tax for 3 years if they invest $ 1 million and are exempt for 5 years if they invest $ 5 million;
- goods imported into / exported from free economic zones are: exempt from import and export duties (customs duties); are exempt from excise duty; a zero rate of value added tax is applied.
- there is a state guarantee of 10 years if the legislation is amended;
- quota systems and licenses for the import and export of goods into the territory of free economic zones shall not apply.
Another important aspect is that the delivery of the goods to the free economic zones in the other parts of the customs territory of the Republic of Moldova are treated as exports.
The Republic of Moldova also has the Giurgiulesti International Free Port (the southern region), as well as the Free International Airport "Marculesti" (Floresti, the northern region), both of which have legal status almost similar to the free economic zones.

15. INCENTIVES changing the destination of agricultural land is for free
IP BIOENERGAGRO
INCENTIVES
changing the destination of agricultural land is for free
IP FAIP
IP LA TRIVINETA CAVI DEVELOPMENT
IP CAAN
the right to privatize the state-owned land for construction at normative price
free allocation of public property assets to create parks at owner's decision
IP CIMISLIA
decreasing up to 70% the annual fee regarding land lease or space rent
Another industrial platform with a series of opportunities is Industrial Park - a relatively new tool for Moldova, created in 2011.
Industrial parks are defined territories where industrial production, service provision, applied scientific research and / or technological development are under certain preferences.
Since the entry into force of the Law on Industrial Parks, 10 projects have been launched for the creation and development of industrial parks in the northern, central and southern parts of the country (Tracom, Chisinau Bionergagro or Drochia, Cimislia or Cimislia, Raut, Bălţi, "CAAN" or "Străşeni", "Edineţ" or "Edineţ, Cavi Triveneta Divelopment" or "Străşeni", "Comrat" or Durleşti, "Cahul", Cahul.
Industrial parks can become the center of attraction for investment and the place for various industrial and IT projects.
The incentives offered by industrial parks are:
- the possibility to change the destination of agricultural land free of charge;
- the right to privatize the state land for construction at normative price;
- free allocation of public goods to create parks at the owner's discretion;
- reducing the annual rental fee or space rent to 70%.

16. MOLDOVAN COMPETITIVENESS – INVESTMENT AND EXPORT POTENTIAL
Agriculture and Food Processing Sector
Viticulture and Wine
Fruits and Vegetables
Walnut Growth and Sorting
Cereal Crops
Sugar Production
Organic Farming
Oleaginous Plants
¾ of the country's area – agricultural land, 72% is arable land;
fertile soil – ¾ arable lands are chernozem (among the most fertile in the world);
diffuse sector – many small farmers;
consolidation – great opportunities for investors;
specialization in agricultural niche products and the food industry (nuts, dried fruit, fresh fruit, wine sector, etc.).
In April 2016, the National Strategy for Investment Attraction and Export Promotion for the period was approved. According to this Strategic document, seven priority economic sectors were set up at national level, namely: the information and communication sector , manufacture of machinery and equipment (automotive), administrative and support service activities (BPO), manufacture of machinery and parts, manufacture of textiles, clothing and footwear, electrical equipment and food and agriculture. Next, I will briefly refer to each of them.
So, due to favorable climatic and geographic conditions, rich soil resources and biological diversity, agriculture is one of the main pillars of the national economy. The share of agricultural production in Moldova's Gross Domestic Product was about 12% in recent years. Together with manufacturing, it represents more than 16% of GDP and about 45% of total exports.
At the same time, agriculture is still the most important social sector of the national economy, employing over 27% of the country's labor force.
Agri-food exports represent a significant part of total exports. The most export-oriented products are wines and spirits, as well as fruits and vegetables, both fresh and processed. Only these two categories represent more than 38% of exports.
The advantage of the food and beverage industry is the abundance of raw materials - fruits, vegetables and grains.
Moldova also has significant potential in organic farming. Legislation on organic farming has already been harmonized with EU requirements, including regulation of principles and methods of organic food processing, organic food inspection and certification, import and export.

17. MOLDOVAN COMPETITIVENESS – INVESTMENT AND EXPORT POTENTIAL
Textile, Apparel, Footwear and Leather Industry
Textile
Apparel
Leather
Accessories
Footwear
Carpets
Moldovan manufacturers are cooperating for many years with renowned foreign brands – both fashionable and mass market brands. Companies from Italy, Germany, Netherlands, France, Austria, Belgium, and Great Britain produce here.
The reason: Moldova offers a high level of quality production and a high speed in command processing.
The manufacture of textiles, garments, leather goods and footwear is an important and competitive branch of the Republic of Moldova, being also a major beneficiary of FDI.
Currently, the sector is growing and represents about 550 enterprises with about 23,000 employees.
Currently, light industry plays an important role in the Moldovan economy, accounting for almost 20% of the country's total export volume, 86% of which is exported to EU countries, the rest being consumed in the domestic market.
This is an industry that includes companies strong enough to become potential suppliers to foreign companies through various forms of investment. Famous brands such as Versace, Armani, Max & Co., Primark, Max Mara, Prada, Nike, Dolce & Gabbana, Moncler, Calvin Klein make their clothes in Moldova.
In addition, the Republic of Moldova is advancing in the production under its own brand, with a common platform called "From the Heart" which brings together Moldovan producers / designers.
A large number of enterprises, around 61%, are located in the central region of the country (Chisinau, laloveni, Orhei, Straseni); 21% are located in the north of the country (Balti, Soroca, Floresti, Edinet, Riscani, Singerei); and 18% in southern Moldova (Cahul, Taraclia, ATU Gagauzia).
One of the main advantages of Moldova in this sector is the high speed of order processing and delivery due to its favorable geographical position.

18. MOLDOVAN COMPETITIVENESS – INVESTMENT AND EXPORT POTENTIAL
Automotive and Machine Building Sector
Cable Assemblies and Wiring Harnesses
Carpets/ Rugs
Electronic Components and Systems
Foams/ Felts
Rubber Components
Injection/ Molded parts
Fastening systems (seatbelts)
Car seat covers, trim
Success Stories
Lear Corporation (seating/ trim) – 1st plant in 2010
Draexlmaier Automotive (wiring harnesses) – 1st plant in 2007, 2nd plant in 2009, 3rd plant planned for 2016
Gebauer & Griller (cables) – plant construction 2012, production launched July 2013
Leoni (wiring harnesses) – local subcontractor since 2010
Fujikura Automotive (wiring harnesses) – 1st plant in 2016, 2nd plant in 2017
SEBN Sumitomo Electric Bordnetze (wiring harnesses) – 1st plant in 2017
Coroplast Fritz Mueller (wiring harnesses, molding injection) – 1st plant in 2017
The automotive industry is the main source of new jobs in Europe (about 50,000 new jobs per year) and among the top four according to the number of new FDI projects.
At present, the automotive industry is a growing sector for the Moldovan economy. Total exports to the automotive industry amounted to more than € 257 million (in 2015), with an increase of approx %.
So far, large investors in the sector prefer to position themselves in Moldova's free economic zones, which are an excellent location for industrial development and relocation of export-oriented production.
Production focuses on cables, car cables, car seat covers, plastic injection, metalworking, electronics and electronic components and assembly. This production is carried out at the level 1, 2 and 3 suppliers, as well as local subcontractors.
According to company internal questionnaires, the number of employees in Automoitve rose from 5,100 in 2012 to 9,100 in 2016.
Major examples are Lear Corporation, Dräxlmaier Automotive, Gebauer & Griller, Sammy Cablaggi / Kablem, Elektromanufacturing, Confezioni Andrea Covercar, LEONI, SEBN Sumitomo Electric Bordnetze, Fujikura Automotive, Coroplast Fritz Mueller and APM Automotive.
The country remains competitive internationally for new investment projects in the automotive industry.

19. MOLDOVAN COMPETITIVENESS – INVESTMENT AND EXPORT POTENTIAL
Information and Communications Technology Sector
sector with a very rapid development;
high penetration of fixed telephony (33%);
high penetration of mobile telephony; 3 operators; 3G & 4G;
high penetration of cable TV;
broadband Internet and IP TV – growing areas (no. 15 in the world);
high speed loading data – nr. 6 in the world;
qualified human resources – incentive for IT companies.
In recent years, the ICT sector has been rapidly developing, becoming an important economic sector for Moldova, accounting for around 8% of Gross Domestic Product (GDP). In addition, the ICT sector continued to grow at an average of 5% annually, even during the crisis.
The IT industry has the potential to become one of the most dynamic and productive economic sectors in Moldova. Moreover, the IT industry can be a catalyst for growth, efficiency and innovation for the traditional sectors and society of the Republic of Moldova.
In the years to come, Moldova has the ability to accelerate the growth of the IT industry and exploit the unused potential. In this sense, we want to promote our country as a competitive destination for regional IT services, to increase the share of high added value IT services and to increase productivity per employee in industry.
Costs, localization and talented human capital are factors that will continue to give Moldavia a strong competitive advantage against its direct competitors in the region. For this reason, the most important regional actors (Allied Testing, Endava, Pentalog) are already present on the Moldovan IT market.
Among the incentives in the IT sector, I would like to mention that employees of IT companies can benefit from tax incentives for income tax on wages - standard taxation being limited to certain monthly amounts (ie two national average wages).

20. PRIVATIZATIONS – 2017 Moldovan general privatization assets
Moldovan strategic privatization assets
Subjects of privatization 113 public assets
44 packages of shares (28 JSC – state share exceeding 50%)
56 state enterprises
11 real estate and complex goods
2 unfinished objects
I. Communication Technologies (100%)
II. Aviation sector
III. Electrical distribution networks (100%)
IV. Hydropower sector
V. Banking sector
In addition to the development of the economic sectors, it is natural for any economy to have the privatization process as well. During the year 2017, privatization rounds were held and continued in Moldova, with objects previously proposed for sale, as well as new objects - public property.
At present, privatization subjects are 113 public state assets, including: 44 share packages, out of which 28 joint stock companies with a state share over 50%; 56 state-owned enterprises: 11 real estate and complex assets; 2 unfinished objects.
Also among the subjects of privatization are strategic assets: "Moldtelecom" SA (100%); Red-Nord, Red North-North and North Red (100%); Hydropower node "Costeşti"; SA "Air Moldova"; Commercial Agents Moldova Agroindbank and Moldinconbank
Among other areas of interest for privatization and investment opportunities:
THE TRANSPORT SECTOR
Avia: upgrading and rehabilitation of Balti Airport, using the facilities of the Free International Airport Marculesti (north).
Maritim: Giurgiulesti International Free Port
Road: Rehabilitation of M14 national road, Criva - Chisinau section; Rehabilitation of R7 national road, Soroca - Drochia - Costeşti - border with Romania; Rehabilitation of the ring road - Chisinau.
Railways: rehabilitation and modernization of Balti - Mateuti railway line; Rehabilitation and modernization of the railway station of Mogilev-Podolsky station (Ukrainian border), at Bender station via the stations of Ungheni and Chisinau; Rehabilitation, modernization and strengthening of the railway line from Kuciurgan (Ukrainian border) to Giurgiulesti harbor via Cahul and Basarabeasca; Rehabilitation and modernization of the railway line from Kuciurgan (Ukrainian border) to the port of Reni (Ukraine) and Giurgiulesti; Construction of a new railway line based on EU standards (1435) Chisinau - Ungheni (Romanian border).
EXPOSITION SECTOR - Construction of multipurpose pavilion and parking in SA MOLDEXPO

21. SUCCES STORIES OF FOREIGN INVESTORS
Financial Services Sector
Information and Communications Technology Sector
Industrial Production Sector
On the slide, you can see the results of the exposed efforts, namely the list of foreign investors currently operating on the Moldovan market. The brands you see are a further guarantee that the Republic of Moldova is an open economy with a business climate for business. In fact, the current Government is characterized by the pro-business approach.
The existence of major investment projects and the expected flow of new strategic investments contributed to the Government taking additional actions to protect investors. In this context, the Council for the promotion of projects of national importance, chaired by the Prime Minister, was created. The main aim of the Council is to ensure the beneficial realization in the Republic of Moldova of investment projects of national importance, which influence the country's economy and ensure a stable social and economic development of Moldova.

22. Invest in Moldova Access to information and study visits:
Moldova Investment and Export Promotion Organization (MIEPO)
Republic of Moldova, Chisinau, 65 A. Mateevici Str.
Tel.: (22) Fax: +373 (22) |