Investing in Moldova

1
Investing in Moldova

• Great place to live and locate a business

1st UNDP Hellenic Ministry of Foreign Affairs
Business Forum 02 April, 2009, Athens
2
Where is Moldova?

• Located in South-Eastern Europe, bordering
  Romania and Ukraine
• Area 33,8 thousand sq. km.
• Population 3,6 mil
• Capital Chisinau

2
3
Why invest in Moldova? (1)

• GDP (2008) USD 5.7 bi.
• Low inflation rate (2008) - 7,3
• Education Literacy - 96.
• Work force 1.3 million
• Agriculture - 41
• Industry - 12 other 47.
• Unemployment 3.6
• Liberal Trade Policies
• Economic and structural reforms successfully put
  in place
• Stable monetary policy

• 0 Corporate Income Tax (on reinvested earnings)
• Low operational costs
• Ideal platform for manufacturing and exporting
  both to CIS and to the EU
• Investors MoET helpdesk

3
4
Why invest in Moldova? (2)

• Proximity to large world markets (European Union
  EU- and Commonwealth of Independent States
  CIS).
• 42 Free trade agreements signed including
• WTO members (worldwide)
• Autonomous Trade Preferences (EU countries)
• CEFTA members (most Balkan countries)
• CIS members (except Tajikistan)
• 40 Double taxation agreements signed and 37
  operational
• 36 investment protection agreements signed and
  operational.

4
5
Priority sectors for investment

• Traditional sectors
• Agri-business and food processing
• Textile and leather
• Information and communication technology

• PPP
• Transport Infrastructure
• Industry and Industrial parks
• Housing services and energy infrastructure

• New sectors
• Alternative energy
• Logistics Development
• Recreation and Tourism

5
6
Key opportunities for sectors

• Agri-business and food processing
• agriculture has traditionally been and remains
  the backbone of the Moldovan economy
• the agro-processing industry accounts for another
  10 of GDP
• favorable access policies encourage EU markets
  for Moldovan agricultural products
• Textile and leather
• Second largest export after wine industry (990
  mil USD)
• 90 companies (2/3 are the middle-sized companies
  employing up to 300 people),
• CM and CMT model Cutting and manufacturing
  services CM /CMT
• Favorable customs policies
• Information and communication technology
• 90 major firms operating in hardware, software
  and telecommunications
• there are over 4,000 ICT specialists in Moldova.
  Annually 6 high schools and one college produce
  approximately 300 graduates with diplomas in ICT
• wages in the industry range from USD 250 to USD
  1,500 and the average wage is around USD 700

7
Free Economic Zones
8 free economic zones operate in Moldova
offering

• 0 corporate tax
• VAT Exemption
• Excise tax exemption
• Skilled workforce
• Quality infrastructure consisting of
• Road and Railway
• Water, gas, energy.

7
8
Marculesti Free International Airport
International Logistics Center offering the
following services

• Ground operation and air transport services
• Storage
• Rent of industrial production units
• Processing of agro-alimentary products
• Sorting, packaging, and labelling
• Other auxiliary types of business
  activities/services such as communal services,
  storage, construction, catering etc.

8
9
Potential projects

• The company (Lion Gri Holding) is active in
  production, storage, distribution of wine and
  tourism. Turnover for 2008 5 461 000 EUR,
  Employees 204
• Company is seeking for the investor or the
  creditor interested in implementing of the
  program and having the possibility to invest the
  necessary funds in the development program and
  (or) participation in the authorized capital
  stock.
• Main economic activity of the NaturVins is
  production and selling of wine. Turnover 1
  million EUR, Employees 20
• Type of partnership sought Joint venture, 51
  local partner, 49 foreign partner. The company
  also intends to produce sparkling wines and
  brandies, to develop tourist services and to
  develop production of high-valued oil from grapes
  seeds.

10
Potential projects

• Glass recycling project - Main objective To
  create a network where will be involved local
  authority, local entrepreneurs and potential
  investors who will create the network for
  collection of broken glass. 2 local actors are
  involved and start to develop the idea.
• Solid Waste Treatment and bio gas production
• Main objective To create the manufactory what
  will process solid waster and will produce bio
  gas for the city. The project is on the stage of
  elaboration of prefeasibility study. Local
  authority is involved and potential Sweden
  investor.

11
Potential projects

• A company specialized in agricultural product
  processing is interested in finding a strategic
  partner for production line for concentrate
  processing apple and grape juice. The company
  will insure the necessary infrastructure and
  access to the eastern market (Russia, Belarus,
  and Kazakhstan). The strategic partner, in his
  turn, is expected to provide access to the
  western markets.
• The main activity of the Company is commerce with
  agricultural products and aliments,
  intermediations of agricultural raw materials
  sale, animals and textiles. The present
  investment project assumes the creation of a
  factory that would extract and produce technical
  oil from rape , sunflower or corn. The factory
  will be situated in the southern-western part of
  the republic, Leova district, Cneazevca village
  (the factory will be 60km from the capital city
  Chisinau).

12
What is the Moldovan Investment and Export
Promotion Organisation?

• Your primary contact point in attracting FDI to
  Moldova
• Can assist you in identifying partners, locations
  and opportunities
• Can assist you in sourcing Moldovan exports
• Is here to assist you!

13
Thank you for attention! QA
Sergiu Gogu, Investment Adviser phone
373(22)232703 gogu.sergiu_at_miepo.md
Aurelia Braguta, PhD UNDP Investment
Broker Phone [phone] aurelia.braguta_at_undp.or
g
Moldovan Investment and Export Promotion
Organisation 65, Alexe Mateevici str. 2009
Chisinau, Moldova phone [phone]
office_at_miepo.md www.miepo.md