Opportunities nearbyRepublic of Moldova

Agriculture

ICT

Automotive

Medicine

Renewable Energy

Textile, Apparel,Footwear and Leather goods

Edi

tion

2015

/201

6

Republic of MoldovaMoldova has a strong industrial tradition, a developed technical education system, which results in a well-pre-pared industrial labor force. Human resources are one of the most important assets of Moldova. Well-educated professionals with high proficiency in several languages are looking forward to work with foreign companies.

With many significant investors already producing and outsourcing to the country, there is a large range of opportunities for companies which are seeking new production opportunities and investments. Dräxlmaier AG, Lear Corporation, Leoni AG, Südzucker AG, Lactalis-Alba, Gebauer&Griller, Steinel Electronic, Lafarge, Endava, and many others already established their own plants in Moldova, or source from Moldova by making use of the local sub-contractors.

Whether you are looking to gain access to the Russian or European markets, optimize your operational costs, find skilled labor at competitive wages, relocate and still remain close to your distribution or assembly centers, Moldova is the country that meets your needs.

1

Contents

Key facts ...................................................................................................................................2

Top reasons to invest in Moldova ............................................................................................3

Favorable location ....................................................................................................................3

Economic overview ..................................................................................................................4

Available workforce ..................................................................................................................5

Labor & Utility costs .................................................................................................................7

Taxes in Moldova .....................................................................................................................8

Customs ...................................................................................................................................8

Market potential .......................................................................................................................9

FDI facts .................................................................................................................................10

Business start-up in Moldova ................................................................................................11

Free Economic Zones ............................................................................................................12

Industrial Parks .......................................................................................................................12

Success stories & industrial competences ............................................................................14

Investment incentives in the Republic of Moldova .................................................................16

2

GUAMCEFTA

CISEU

ESP

FRA

GBR DEU

ITA

TUR

ROMHUNAUS

CZE

BGR

LTU

LVA

EST

GRC

POL

SWEFIN

NOR

BLR

RUS

KAZ

UZB

UKR

Key facts 2014

Official name: Republic of MoldovaArea: 33,846 km2

Population: 3.55 millionLanguage: The official language is Romanian; Russian is the second most spoken lan-

guage in Moldova. Many Moldovans also speak English, French, German, Ital-ian, Spanish, Gagauz (similar to Turkish), and other languages. The largest minority groups are Ukrainians, Russians, Gagauz and Bulgarians.

Capital: The capital city is Chisinau with approximately 804 thousand inhabitants. It is also the commercial and cultural center of Moldova.

National curency: The national currency is the Moldovan Leu (MDL), which is freely convertible in any international currency. The official exchange rate at the National Bank of Moldova is 20.5 MDL for one EUR (as for August 2015).

GDP in current prices: 6.620 billion EURGDP per capita (PPP): 4,149 EURInflation rate: 5.1%Corporate tax: 12%, 6%, 0% in Free Economic Zones, 3% in Free PortEmployment rate: 39.6%Labor costs (gross): averaging 220 EUR/ monthFull load labor cost: ca. 1.85 EUR/ hour

Free Trade Agreements signed - 43.• DCFTA (Deep and Comprehensive Free Trade Area) - 500 million;• CIS Commonwealth of Independent States (Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Uzbekistan) - 250 million;• Free Trade Agreement with Turkey - 80 million; • CEFTA Central European Free Trade Agreement (Moldova, Macedonia, Albania, Serbia, Montenegro, Bosnia and Herzegovina and UNMIK (Kosovo) - 30 million; • GUAM Organization for Democracy and Economic

Development (Georgia, Ukraine, Azerbaijan, and Moldova) - 60 million.

880 millionCustomersduty-freemarket

3

Favorable locationBordered by Romania on one side and by Ukraine on the other, Moldova is close to both EU and CIS mar-kets. Moldova is connected via Airports, wide and narrow gauge railways, roads and the Danube River to the whole of Europe and the Black Sea.

GUAMCEFTA

CISEU

ESP

FRA

GBR DEU

ITA

TUR

ROMHUNAUS

CZE

BGR

LTU

LVA

EST

GRC

POL

SWEFIN

NOR

BLR

RUS

KAZ

UZB

UKR

Moldova’s trade is largely liberalized to both the European Union and Com-monwealth of Independent States. Most important destinations in these markets can be reached within 2 truck days.

Moldova is constantly improving its business climate, having again reached an improvement of 19 positions com-pared to last year in the Doing Business ranking (63/ 189 in 2015).

Moldova’s Free Economic Zones offer further incentives, including a corpo-rate tax of 3-6% and total exemption from VAT and custom duties. They represent excellent manufacturing platforms offering also state guaran-tees and administrative support.

The workforce is skilled and multi-lingual. Labor costs are the lowest in the region, creating a competitive business environment.

• Chisinau International Free Airport - for passen-

ger flights, Balti and Marculesti Airports - for charter and cargo flights;

• Frequent and direct 1-2 hour flights to Chisinau from Munich, Vienna, Frankfurt, Paris, London (3h), Istanbul, Kiev, Moscow and Bucharest;

• Within 3-5 hours, you can reach virtually all cap-itals in Europe and CIS States;

• The Giurgiulesti International Free Port is situated at km 133.8 from the Black Sea, on the maritime section of the river Danube;

• Easy access to the Black Sea with maritime ves-sels, to Romania and Ukraine along the Danube with river barges, as well as inland rail connections to both the CIS and EU countries;

• Link to the Pan-European transport Corridor VII - the Danube from Passau (Germany) to the Black Sea (2300 km long);

• Bi-modal and tri-modal transport infrastructure, low customs environment, and a unique customs and tax regime.

• 1138 km Railway network in Moldova (single track), with both wide and narrow track gauge;

• Direct connections to Ukraine and Romania (most important crossings at Ungheni (MD) - Iasi (RO), Cantemir (MD) - Falciu (RO) and Giurgiulesti (MD) - Galati (RO) );

• International passenger trains - to Bucharest, Kiev, Minsk, St. Petersburg and Moscow;

• Regular cargo trains - up to South of Poland, as well as to CIS countries;

• 8700 km road network in Moldova (with interna-tional routes and access points);

• Link to the Pan-European transport Corridor IX (3400 km long): Helsinki (Finland), Vyborg (Rus-sia), St. Petersburg (Russia), Gomel (Belarus), Kiev (Ukraine), Chisinau (Moldova), Bucharest (Roma-nia), Dimitrovgrad (Russia) and Alexandropoulos (Greece);

• Travelling by car to Chisinau from Bucharest - 6 hours (500km); from Berlin - 20 hours (1600 km); from Kiev - 7 hours (480 km);

Top reasons to invest in Moldova:

4

Economic overviewThe economy of the Republic of Moldova developed more dynamically than neighbouring EU countries during the last years. Over the years 2009-2014, the economy grew approximately at 4.5% each year, which represents a remarkable rate in times of crisis. The most dynamic sectors have been ICT, manufac-turing industry, automotive industry and agriculture.

Historically, the largest industries in Moldova have been manufacturing industry, agriculture and food processing, textile, apparel and footwear. The ICT sector is a rather new and fast growing sector for Moldova, with many foreign companies entering the market.

GDP in current prices, billion EUR

The GDP registered a constant growth over the years 2010-2014, with positive forecasts for 2015 as well.

GDP per capita at PPP, EUR

The industry production reached 14.3% of GDP in 2014, while the agricultural production stood at 13.0%. In 2014, the industrial production registered an increase of 7.3%, mainly in the manufacturing industry.

The production of electrical equipment has increased by 54.3%, followed by the production of chemicals (+42.4%), textiles (+20.4%), wood processing and wood articles (+20.3%), metallurgy (+14.3%), and oth-ers. A significant intake was brought by the automotive industry, which is one of the most dynamic industries in Moldova with a positive growth of 27% in 2014.

Share of industry in GDP, %

The agricultural sector has large potentials in pro-duction of fresh and processed fruits and vegeta-bles, wall nuts, honey, meat, dairy products and poultry. A strong potential is also located in the or-ganic and biological food production, due to the rich soil and appropriate climate.

42009 2010 2011 2012 2013 2014

5

6

7

4.151

4.437

5.3575.559

6.0576.620

2009 2010 2011 2012 2013 20142

4

3

2,1592,343

2,554 2,581

4,149

2,852

2009 2010 2011 2012 2013 2014

13

12

14

5

13.0

13.3

13.6

13.914.1

14.3

Source: IMF, World Economic Outlook Database, 2015.

Source: IMF, World Economic Outlook Database, 2015.

Source: IMF, World Economic Outlook Database, 2015.

5

The agricultural production registered a growth of 8.2% in 2014, driven by the strong growing of the vegetal production by 10.4% and of the life stock-production - by 4.0%.

Share of agriculture in GDP, %

Available workforceMoldova’s population is a vibrant and adaptable so-ciety, with 80% of the population multilingual and 33% of population under 25.

Moldova successfully and peacefully merges such nationalities as Moldovans, Romanians, Russians, Ukrainians, Gagauz, Bulgarian, and others. As well, Moldova’s population has a high degree of lan-guage skills in Romanian, Russian, English, French, German and other international languages.

Moreover, the young population is looking to work with international companies and uses their compe-tences and skills. The economically active popula-tion, in 2014, was around 1.232 million people.

Companies wishing to employ more than 1000 people, will find their employees in large cities, like

Active population across regions, 1000 workers

Chisinau and Balti. They offer available and trained workforce. Companies which need less than 1000 employees, will find extremely attractive and com-petitive regions all over the country.

Moldova features a comprehensive education system, starting from kindergartens and primary schools up to higher education. Nearly 90% of the population grad-uated at least a secondary education.

Vocational education is an integral part of the na-tional education system oriented towards training and development of specific skills and competen-ces, in order to have prepared pool of workers for the national economy and foreign companies. Vo-cational education provides training in a profession according to the harmonized European framework of qualifications, as required by the labor market.

Chisinau

North

Center

South

353.5360.9

356.1354.6

321.5328.8

201.3191.5

2014 2013

2009 2010 2011 2012 2013 20148

11

10

9

12

14

13

8.5

11.9

9.2

11.2

13.0 13.0

Source: National Bureau of Statistics, 2014.

Source: National Bureau of Statistics, Regional statistics.Source: IMF, World Economic Outlook Database, 2015.

Municipalities Population

Chisinau 804,500Balti 149,800Cahul 39,600Ungheni 38,400Soroca 37,500Orhei 33,600Comrat 26,000Straseni 20,600

6

There are 46 vocational schools and 15 trade schools in Moldova. In the academic year 2014/2015, 16,015 students were studying at vocational schools and 1,493 students at trade schools.

The most popular studies in vocational schools are in the fields of construction, industry, transport, agri-culture and telecommunication. Popular professions are: mechanic for reparation of cars, operator for electronic computers, electrical engineer, electrical mechanic of various equipment and many others.

The network of higher education institutions con-sists of 31 units (19 state/ 12 private institutions),

Graduates in Higher Education Institutions by fields of study, no. of students in 2014

0 1000 2000 3000 4000 5000

Bachelor degree

Master degree

Source: Ministry of Education, Annual report 2014

with a total number of 92,000 students in the ac-ademic year 2014/2015. The most important ones are: Technical University, Agrarian University, Academy of Economic Studies and State Universi-ties in Chisinau, Balti and Cahul.

Popular technical specialties are: Engineering and management in machine building, Engineering and management in mechanics, IT, Informatics and Mi-cro-electronics, Radio Electronics.

7

Labor & Utility costsMoldova offers a highly-skilled, competitively-priced

workforce. Labor costs are amongst the lowest in the re-

gion and low enough to ensure cost-effective operations.

Monthly net wage in the economy (2014)

The gross wages in Moldova for workers in the industry

sector range from 200 EUR-500 EUR, depending on the re-

gion and professional level of the employee, which is lower

than the wages in the region. A newly-graduated university

student of engineering could earn up to 800 EUR.

Average hourly labor costs, EUR

Moldova’s labor force combines low-cost with high pro-

ductivity, thus reflecting the key factor for a strong busi-

ness performance. The quality of the labor force also

derives from the industrial experience and history of the

Republic of Moldova, as it was one of the most industri-

alized republics in former Soviet times.

Technical education is strong in Moldova, and it compris-

es best engineers known for their expertise. The number

of engineers, managers and other specialists is sufficient

to meet the investor’s demand in most sectors.

In this context, private companies tend to point out that

two types of skills can be considered to be in high offer in

the Republic of Moldova: language skills (the majority of

the population is bilingual in Romanian and Russian) and

IT-related ones. (UNCTAD)

Utility costs

The utility costs are lower than in the region:

Electricity Water Sewerage Gas

0.10EUR/kWh

0.726EUR/m3

0.586EUR/m3

0.34EUR/m3

The rental prices for the industrial spaces are also lower than in the region:

Moldova Romania Serbia

3-4 EUR/m2

3.5-4.5 EUR/m2

4-5 EUR/m2

In Free Economic Zones the rental price for produc-tion halls is even lower, accounting for 0.8 EUR to 2 EUR per square meter. The prices vary depending on the building conditions.

Source: National Bureau of Statistics of each country, 2014.

Source: Eurostat, Statistics explained, 2014.

Moldova

Bulgaria

Romania

Hungary

Poland

Germany

1.9

3.8

4.6

7.3

8.4

31.4

423€Romania

496€Russia

2089€Germany

165€Moldova

342€Macedonia

8

Taxes in MoldovaThere are 47 operational Tax Treaties for Avoidance of Double Taxation concluded by Moldova with other jurisdictions. Although Moldova is not a mem-ber of the Economic Cooperation and Development Organization (OECD), Moldova applies OECD rules in interpreting Double Taxation Treaties.

Type of Tax

Tax Rate

Individualincome tax

7% < 29.640 MDL annual income < 18%

Corporateincome tax(CIT)

12%7% for farmers enterprises6% within FEZs3% within Free Port

Social security

6% for employee23% for employer

Healthinsurance

4.5% for employee4.5% for employer

Moldova has a competitive general corporate in-come tax rate of 12%. The corporate tax is even lower for production in Free Economic Zones (6%) or in the Giurgiulesti International Free Port (3%). The CIT can be reduced even to 0% for 3 years, if the sum invested in fix assets of the company or in FEZ infrastructure is larger than 1 Mio. USD (for 5 years, in case of 5 Mio. USD investment).

The standard VAT rate is 20%, but there are also reduced rates: 8% for certain types of supplies (i.e. bakery and milk products, pharmaceutical products etc.) and 0% for international transportation, sup-plies to and from FEZs etc.

IT companies benefit from a range of tax incentives. The Personal Income Tax (PIT) is limited for salaries paid in this sector to a certain monthly amount (i.e. two average forecasted salaries per economy).

Tax rates in comparison, %

Customs Moldova is a member of the World Trade Organ-ization since 2001. In general, legal provisions al-low moving freely any type of goods in and from the territory of Moldova. Under the Moldovan law, both definitive and suspensive customs regimes can be applied.

The Moldovan Customs Tariff is based on the Har-monized Commodity Description and Coding Sys-tem and the customs valuations are applied accor-ding to the General Agreement on Tariffs and Trade (GATT).

Preferential tariff treatment can be granted for spe-cific categories of goods, depending on their origin and in accordance with the Free Trade Agreements (FTA) to which Moldova is a party. Moldova has signed FTAs with most of the CIS countries, CEFTA and GUAM.

In addition, on June 27, 2014, Moldova has signed the Deep and Comprehensive Free Trade Agree-ment (DCFTA) with the European Union, which provides improved access to the EU market of 500 million consumers for Moldovan goods and servi-ces, as well as improved investment opportunities.

Authorized Economic Operators (AEO)

Since July 2014, companies can profit from the sta-tus of Authorized Economic Operator. It provides simplified transit of goods across the border, pro-moting voluntary compliance with customs require-ments by providing more simplified clearance pro-cedures and other benefits to companies.

EU operating companies as well as Moldovan com-panies that correspond to the requirements listed in the Customs Code may apply for an AEO certificate and benefit of the corresponding advantages. The major benefits of an AEO status are border crossing priority (a special track for AEO has been designed), limited number of customs controls, saving time and reducing operational costs of cross-border traf-fic, priority treatment of consignments and check-point choosing, if selected for control.

There are three types of AEO certificates:

• AEOC - AEO certificate for simplified custom procedures;

• AEOS - AEO certificate for security and safety;

• AEOF - AEO certificate for simplified custom procedures, security and safety.

18

1215

2016 16 16

24

32

19 1923

40

20

15

25

Ind. Income tax Corporate Income Tax Withholding Tax VAT

Moldova Romania Poland Croatia

Source: PWC, Worldwide Tax Summaries, 2014-2015.

9

27.3%24.4%

48.3%

CSI countriesOther countries

EU countries

Until July 2015, ca. 80 companies have been recognized as AEO, receiving one of the above-men-tioned certificates (e.g. automotive companies, such as Gebauer&Griller).

Market potentialEuropean Union is the main trade partner of the Re-public of Moldova. In 2014, EU exports to Moldova amounted to 2.35 billion EUR, an increase of 3% since 2013 (mostly machinery and appliances, min-eral products, transport equipment, and chemical products). Meanwhile, EU imports from Moldova grew significantly. Total imports increased by 20%, to 1.16 billion EUR in 2014 (mainly textiles and tex-tile articles, machinery and appliances, vegetable products and other foodstuffs and beverages). Im-ports of agricultural goods grew particularly strong, noting a 30% increase in 2014.

Businesses located in the Republic of Moldova can ex-port duty free to the West (EU), East (CIS) and South-East (Balkans). Since 1995, the country also has a prefer-ential access to the United States and Japanese markets under the Generalized System of Preferences.

Source: National Bureau of Statistics, The social-economic

evolution of Moldova in 2014.

Source: National Bureau of Statistics, The social-economic

evolution of Moldova in 2014.

20142013201220112010

1.150

2.877

1.718

4.024

1.650

3.979

1.772

4.009

1.933

4.394

Export Import

15.3%Other countries

53.3%EU countries

31.4%CSI countries

Source: National Bureau of Statistics, The social-economic

evolution of Moldova in 2014.

Imports by origin, % (2014)

Total volume of exports and imports, EUR billion

Exports by destination, % (2014)

10

diation, manufacturing industry, wholesale & retail trade, real estate, transport & communication, and others.

FDI in Moldova by investor’s country, 2014

Investors come to Moldova from many different countries, Russia and the EU countries make up for large shares of the total investments. This shows that Moldova is open for business for everyone.

FDI factsIn 2014, the net flow of foreign direct investment in the economy of Moldova amounted to 207.4 million USD.

FDI stock in sectoral distribution, 2014

Two thirds of the foreign capital present in the Republic of Moldova is invested in joint venture companies, while the rest belong to companies in foreign ownership. The majority of the foreign direct investment is concentrated in the financial interme-

14%Italy

9%Russia

12%Cyprus

6%Germany

5%USA

4%GreatBritain

4%Romania

18%Others

17%Netherlands

4%Austria

2%Ukraine2%Turkey

3%Spain

Source: State Chamber of Registration FDI statistics.

26%Financialintermediation

23%Manufacturingindustry

14%Wholesale &retail trade

12%Real estate &business services

11%Transport &communications

7%Electricity, gas& water supply

1%Healthcare

5%Other

1%Agriculture& forestry

Source: National Bank of Moldova, FDI statistics in Moldova.

11

Starting a business, DB Ranking 2015

Macedonia

Moldova

Romania

Bulgaria

Serbia

Ukraine

Poland

Croatia

3

35

38

49

66

76

85

88Registering property, DB Ranking 2015

Moldova

Poland

Bulgaria

Ukraine

Romania

Serbia

Macedonia

Croatia

22

39

57

59

63

72

74

92

Getting credit, DB Ranking 2015

Romania

Poland

Ukraine

Moldova

Bulgaria

Macedonia

Serbia

Croatia

7

17

17

23

23

36

52

61

Enforcing contracts, DB Ranking 2015

Moldova

Ukraine

Romania

Poland

Croatia

Bulgaria

Macedonia

Serbia

42

43

51

52

54

75

87

96

Paying taxes, DB Ranking 2015

Macedonia

Croatia

Romania

Moldova

Poland

Bulgaria

Ukraine

Serbia

7

36

52

70

87

89

108

165

Business start-upin MoldovaIt takes 6 procedures and 7 days to register a busi-ness in Moldova.

Country DB Rank Change2014 2015

Macedonia 31 30 1Poland 30 32 2Bulgaria 36 38 2Romania 50 48 2Moldova 82 63 19Croatia 67 65 2Serbia 77 91 14Ukraine 112 96 16

Source: Doing Business 2015 ranking.

12

Free Economic ZonesThe Free Economic Zones represent excellent platforms for businesses that are convenient to export-oriented manufacturing companies, which in-tend to benefit from a preferential customs and tax regime.

There are 7 FEZs in Moldova, spread around through-out the country and located either near a border, or in big cities. This Free Economic Zones offer preferential conditions and a dedicated customer-oriented admi-nistration. Activities in the FEZs are limited to industrial production, packaging, trade, transportation, logistics and utilities, with priority given to manufacturing. More-over, Giurgiulesti International Free Port and Marculesti Free Airport offer quite similar conditions to the FEZs.

Incentives offered in Free Economic Zones

• FEZs are connected to all important transport routes and have access to all regions through the national and international roads;

• Customs Office available on site, operating 7days/week (if necessary 24 hours/day);

• Exemption from customs duties and excise du-ties on goods imported into the FEZs and subse-quently exported;

• VAT for equipment and machinery: 0%;

• Corporate tax rate stands at 6% (3% in free port);

• Customs procedures tax: 0.1% from customs value of goods (outside FEZs 0.4%);

• 10 years state guarantee for protection against adverse changes in legislation (15 years in Free Port);

• Free connection to utilities in FEZs and Industrial Parks;

• EUR/ USD payment among FEZs residents.

• Exemption from CIT for a period of 3 years, when investing 1 million USD in fix assets of the compa-ny and/ or in FEZ infrastructure development (for 5 years, when investing 5 million USD).

Industrial ParksIndustrial parks are delimited territories in which indus-trial production, services provision, applied scientific research and/or technological development are car-ried out under some preferences.

There are 8 Industrial Parks in Moldova: IP Tracom (Chisinau), IP Bioenergagro (Drochia), IP Cimislia (Ci-mislia), IP Raut (Balti), IP CAAN (Straseni), IP Edinet (Edinet), IP Triveneta Cavi Development (Straseni), IP Comrat (Comrat). Industrial Parks can potentially become the center for investment attraction and the place for different industrial and IT projects.

Firms are given legal and consulting support in ob-taining licenses, permits and approvals. Consulting services also include project development, personnel recruitment, knowledge management, marketing, etc.

Incentives for Industrial Parks

• Free re-zoning of agricultural into industrial land;

• Normative (below market) prices for the purchased land;

• Reduced rental price for state land;

• Free connection to existing infrastructure in the park;

• Minimal state inspection and control regime.

Danube

Sulina Branch

Sf. Gheorghe Branch

Kilia B

ranch

UKRAINE

FREE ECONOMIC ZONES& INDUSTRIAL PARKS

ROMANIA

Prut

Prut

Nistru

Nistru

Edinet

Cupcini

Donduseni

Drochia

Soroca

Floresti

Rișcani

GlodeniBALŢI

Falesti

Singerei

Soldanesti

Ribnita

Telenesti

Ungheni

Calarasi

Straseni

Orhei

Nisporeni

Hincesti

Causeni

Stefan Voda

TIRASPOLAnenii Noi

Leova

Cantemir COMRAT

Basarabeasca

Ceadir-Lunga

Taraclia

Giurgiulesti

Slobozia

Grigoriopol

Dubasari

Otaci

Rezina

CHIȘINAU

Cahul

Criuleni

Cricova

Cimișlia

Ialoveni

BENDER(TIGHINA)

Briceni

Ocnita

Mohyliv-Podolikyi

Odessa

Izmail

Bolgrad

Galati

Iasi

Bucharest, RO - 255kmConstanta, RO - 215kmCraiova, RO - 481kmGalati, RO - 10kmPitesti, RO - 370kmTimisoara, RO - 697kmMD: GiurgiulestiRO: Galati

Arad, RO - 654kmBucharest, RO - 407kmCraiova, RO - 641kmPitesti, RO - 531kmMD: LeuseniRO: Albita

MD: GiurgiuleștiUA: Reni

MD: MirnoeUA: Tabachi

MD: Ceadir- LungaUA: Novie Troiani

MD: BasarabeascaUA: Serpniovoe 1 MD: Tudora

UA: Starokazacie

Odessa, UA - 77kmMD: PalancaUA: Udobnoe

MD: VulcanestiUA: Vinogradovca

Iasi, RO - 24kmMD: SculeniRO: Sculeni

Baia Mare, RO - 443kmBototsani, RO - 55kmSuceava, RO - 97kmMD: CostestiRO: Stinca

IP Eco Garant

IP Bioenergagro

IP Tracom

MD: UnguriUA: Bronnita

Kaluga, RU - 1063kmKiev, UA - 385kmMohyliv-Podolskyi, UA - 0.5kmVinnytsa, UA - 120kmMD: OtaciUA: Mogiliov-Podolisc

MD: BriceniUA: Rososeni

Chernivtsi, UA - 105kmIvano-Frankovsk, UA - 215kmKatowice, PL - 768kmLviv, UA - 341kmTychy, PL - 771kmMD: CrivaUA: Mamaliga

FEZ GiurgiulestiInternational Free Port

FEZ Balti/ Subzone nr.4/ Straseni

FEZ Ungheni Business

FEZ Balti

FEZ Tvardita

FEZ Taraclia

FEZ Valcanes

FEZ Otaci Business

FEZ Marculesti hub airport

FEZ Expo Business Chisinau

M14

M14

M14

M14

M3

M3

M2

M2

M2

M2

M21

M4

M4

M4

M4

M4

M21

M3

M3

M3

22E

24

24C

24D

H10

P63

M05

M05

M13

M13

M05

M05

M12

M12

H03

21

M14

M14M14

Braila

Focsani

Buzau

Kilia

SulinaTulcea

Belgorod Dnestrovsk

Dnestrovsky Liman

Razim lake

Co

nsta

nta

Ista

mb

ul

BLACKSEA

IP Raut

IP CAANIP Triveneta Cavi Development

IP Comrat

IP Cimislia

14

Danube

Sulina Branch

Sf. Gheorghe Branch

Kilia B

ranch

Prut

Prut

Nistru

Nistru

Mohyliv-Podolikyi

Odessa

Izmail

Bolgrad

Galati

Iasi

Braila

Focsani

Buzau

Kilia

SulinaTulcea

Belgorod Dnestrovsk

Dnestrovsky Liman

Razim

lake

Co

nsta

nta

Ista

mb

ul

BLACKSEA

Prut

Edineţ

Briceni

Drochia

Soroca

Florești

ȘoldăneștiBĂLŢI

Fălești

UngheniCălărași

Strășeni

Orhei

Nisporeni

Căușeni

Anenii Noi

COMRAT

Vulcănești

Rezina

CHIȘINĂU

Cahul

Criuleni

Ialoveni

Ocniţa

Dondușeni

Rîșcani

GlodeniCostești

Sîngerei

Telenești

Hîncești

Ștefan Vodă

Leova

Cantemir

Basarabeasca

Ceadîr-Lunga

Tvardita

Taraclia

Otaci

Cimișlia

UKRAINE

ROMANIA

LEGENDShoes

Carpet

Garment & Knit wear

Furniture

Seat covers

Textile tapes

Rubber & Plastic injection

Steel casting

Pumps

Construction material

Electronics

Glass manufacturing

Cardboard manufacturing

Metal processing

Gravel & stone extraction

Energetics

Wires and harnesses

Ceramic tiles

Alcohol & bioethanol

Railway

Cannery

Sugar

Water bottling

Food products

Winery

Chocolate

Bakery

Cigarette and tobacco

Dairy products

Meat processing

Beer

Brandy production

Pharmaceuticals

SUCCESS STORIES &INDUSTRIAL COMPETENCES

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“We picked Moldova as an investment destination due to the benefits the Government offers to the foreign investors, the costs of production and the strategic market for us. Main purpose for the dairy farm is to provide high quality milk during every month of the year. Favorable cli-mate and geographical conditions are factors that help us achieve our goals.”

Jim BoetMillstream Dairy

“Moldova works hard on encouraging foreign companies to review it as a possible investment op-tion. Moldova offers competitive financial support for the investments into agriculture sector and very cooperative state institutions, and, what is most important for us, a market with a high potential.”

Perebinos EcaterinaPukoven

“Due to the difference in the cost of living, it’s currently more affordable to invest in Moldova than elsewhere in the EU. Moldova has a good strategic position, high qualified workforce, presents good opportunities on a broad market, and last but not least has available funding and a good forecast for the future.”

Producers of synthetic yarns for carpet & tufting industryEURO YARNS

“We chose Moldova as an investment destination, due to the country’s strategic geo-political position and rea-sonable labor cost for educated and fast learning workforce.”

Suat Erdogan, General DirectorMiso Textile

“This project is a very important part of our global presence strategy. We established an excellent partnership with the central and local officials and we are planning already the future growth of Gebauer& Griller in Moldova.’’

Vasile BoangiuManaging Director at Cables and Wires G&G EE (2012-2015)

“Moldova has many advantages for foreign investors. The proximity to the European market and the close links to markets of the CIS make Moldova interesting for European businesses. Our decision to open a facility in Balti is influenced by the proximity to key locations in Roma-nia, as well as the good opportunity to train and develop skilled workers here.”

Peter HilbertGovernment Relations consultant at DRA Draexlmaier Automotive SRL

Managing Director at DRA Draexlmaier Automotive SRL (2007-2014)

“We decide to open a new production plant in Moldova for a good strategic position and a rea-sonable labor cost. Local and central Government authorities offer entire support in investment and business activity.”

Gregorio IsgròAdministrator at CONFEZIONI ANDREA MDV S.R.L.

“In my experience, I find the local IT community, including fresh graduates and experienced man-agers, to be responsive, willing to change and ready to embrace new ideas. They have healthy competitive spirit, which shines through when supported effectively. It is a pleasure for me to work in an environment with lots of dedicated, passionate, ambitious and smart people.”

Kumail JethaGeneral Manager, Endava Moldova Delivery Unit

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Investment Incentives in the Republic of Moldova

General IncentivesJob creation - Reduced calculation base of the taxable income, when increasing the number of sta� (yearly average salary in the country for the year prior the reported �scal year).Taxable income deductions - Expenses related to transport (MDL 25 per day per employee), meals (MDL 35 per day per employee), and professional training of employees are deducted from the taxable income.

Agricultural sector- VAT exemption on import of tractors and agricultural equipment.- there is a wide range of agricultural subsidies available. Please refer to our agricultural sector report and information lea�ets to learn more.

Automotive sector- 180 days deferment to pay VAT and customs duties on imported raw materials;- VAT and customs duties exemption for imported goods introduced in equity capital.

Textile sector- 180 days deferment to pay VAT and customs duties on imported raw materials;- VAT and customs duties exemption for imported goods introduced in equity capital.

ICT sector- Reduced base of the taxable income of employees and applicable social security charges (2 average monthly salaries in economy forecasted for the concerned year).

Free Economic Zones- Reduced CIT rate of 6% net, for income obtained from exports or sales to other FEZ residents-exporters;- Reduced CIT rate of 9% net, for income obtained from other activities conducted within FEZs;- CIT exemption for 3, 5 years for investing USD 1 Mio, and respectively USD 5 Mio;- 10 years guarantee of applicability of tax and customs regime existing at inception of activity.

Industrial Parks- Exemption to compensate losses caused by exclusion of land from agricultural circuit;- Privatization of land at the normative price;- Concessional rent of public property (down to 0.3 of the tari� established in state budget law);- Alienation free of charge or bailment of public property goods to the managing enterprise for the purpose of establishing and developing the industrial park;- Optimization of state inspections;- Allocation of public funds for infrastructure within parks.

Giurgiulesti International Free Port- Unrestricted right to practice any activity that is legal in Moldova;- Reduced CIT rate of 3% net, for activities within PILG for 10 years of residence;- Reduced CIT rate of 6% net, for next term till 2030;- Customs duties exemption;- VAT and excises exemption for shipments to GIFP and between GIFP residents;- 15 years guarantee of applicability of tax and customs regime existing at inception of activity.

We are here to support youWe will assist you in setting up your operations in Mol-dova. We support your project management activities from the earliest stages of your expansion strategy. We provide you with the industry information you need. This includes facts about the industrial competences throughout Moldova’s regions, as well as available sourcing and supply companies.

Foreign companies profit from our rich experience in identifying the business locations which best meet their specific investment criteria. We help turn your re-quirements into concrete investment site proposals; providing consulting services to ensure you make the right location decision. We coordinate site visits, meet-ings with potential partners, relevant existing investors, universities, colleges, vocational schools and other in-

stitutes active in the industry, as well as meetings with relevant embassies, business associations, govern-ment officials and other authorities.

Our team of consultants is at hand to provide you with the relevant background information on Moldova’s tax and legal system, industry regulations, and the domes-tic labor market. Invest in Moldova experts help you create the appropriate financial package for your in-vestment and put you in contact with suitable financial partners. Our specialists provide you with detailed in-formation about available incentives, support you with the application process, and arrange contacts with lo-cal developers.

All of our investor-related services are treated with the utmost confidentiality and are provided free of charge.

STRATEGY

PROJECT MANAGEMENT ASSISTANCE AND PROVIDING INFORMATION

LOCATION CONSULTING / SCOPING MISSION SUPPORT

AFTERCARE / POSTINVESTMENT SUPPORT SERVICES

DECISION & INVESTMENTEVALUATION

Identification of sector-specific investors

General data and statistics for investor feasability study support

Sector-specific details & information of legislation

Relevant site presentation and preselection

Joint project management assistance together with FEZs & IPs administration

Coordination andsupport of negotiationswith localauthorities

Identification of project-specific locations

Identification of sourcing opportunities

Information on suitable locations

Site visitorganization

Arranging meetings with public authorities, relevant private sector representatives

Final site decision support

Identification of and general information on relevant tax, legal and adminis-trative issues

Connecting with relevant recruitment, legal, tax and other consulting companies

Facilitation and communication with public local and central authorities, as well as relevant private sector representatives

Advice on administrative and legal issues

Supporting investors and associations in their efforts to improve the business climate

The Moldovan Investment and Export Promotion Organization (MIEPO), in cooperation with the Prime Minister’s Office, is the prime source of information and assistance for potential in-vestors.

We provide tailored servic-es for potential investors throughout the investment de-cision process. We also sup-

port existing investors in ex-tending their operations.

Our team consists of perma-nent investment attraction staff, sectorial consultants, as well as regional officers. Com-bining our experience, we are able to provide you with infor-mation relevant for your deci-sion making, as well as links to businesses and government.

Craiova

Bursa

Istambul

Ankara

Cairo

Jerusalem

Sarajevo

Pitesti

Timisoara

Oradea

Mlada Boleslav

Kolin Lviv

Kiev

Balti

Chisinau

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1000km

1500km

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ZaporojeEsztergom

Turin

Munchen

Valls

Pamplona

SindelfingenParis

Genk

Amsterdam

Bratislava

GyorGraz

Novo Mesto

Pecs

Katowice

Minsk

Wolfsburg

Leipzig

Bremen

Copenhagen

Poznan

Glewice

Kaluga

Nijnii NovgorodMoscow

Tolyatti

Sankt PetersburgStockholm

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MD

Contact us:65 Alexei Mateevici str., Chişinău,Republica Moldova, MD-2009Tel:+373 22 27 36 54Fax: +373 22 22 43 10www.invest.gov.md, invest@gov.md© MIEPO 2015