automotive components and industry overviewinvest.gov.md/sites/default/files/automotive industry...
TRANSCRIPT
Automotive Components
and Industry OverviewRepublic of Moldova
Ed
itio
n 2
01
8/2
01
9
Automotive & Industry 2017/2018
Free Trade Agreements signed with 43 countries, including:
• DCFTA (Deep and Comprehensive Free Trade Area with
European Union) — 500 million population;
• FTA with CIS countries (Armenia, Azerbaijan, Belarus,
Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan,
Uzbekistan) — 250 million population;
• FTA with Turkey — 80 million population;
• CEFTA Central European Free Trade Agreement
(Moldova, Macedonia, Albania, Serbia, Montenegro,
Bosnia and Herzegovina and UNMIK (Kosovo)
— 30 million population;
• GUAM Organization for Democracy and
Economic Development (Georgia,
Ukraine, Azerbaijan, and Moldova)
— 60 million population.
880 million Customers
duty-free market
Name:
Republic of Moldova 44 0.2Doing Business
2018 Rank
6.5%Inflation rate,
2017
40.5%Employment
rate, 2017
€4,717GDP per capita
at PPP, 2016
2,000EUR/ job created
130EUR
2.1EUR/hour500 ha
+
15,000+
Unique tax on turnover
in IT virtual Parks
Free buildable area
in FEZ all over the country
Job creation
incentive
Minimum salary
in 2018
People employed in the
automotive industry in 2017
Full load
labor cost
€6.01GDP current
prices, 2016billion
Capital:
Chisinau ca. 814,000
Population:
3.55 million
Area:
33,846 km2
Language:
Romanian (official)
Other spoken languages:
Currency MDL:
1 EUR = 19.5 MDLSeptember, 2018
KEY FACTS
ContentsIndustry overview .....................................................................................................................2
Business start-up in Moldova ..................................................................................................3 Automotive components industry ............................................................................................4
Top reasons to invest in Moldovan Automotive Sector ...........................................................5
Human resources are one of the most important assets of Moldova .............................5
Education .........................................................................................................................5
Educational Institutions, map ...................................................................................................7
Educational system in the Republic of Moldova, structure
...........................................8
Operating costs and taxes ......................................................................................................9
Structure of the average salary in Moldova .................................................................10
Utility costs ...................................................................................................................10
Job creation subsidies
..................................................................................................11
Favorable location .................................................................................................................12
Giurgiulesti International Free Port (GIFP)
....................................................................12
Competitive products .............................................................................................................13
Automotive supply chain structure .............................................................................13
Success stories and industrial competences, map ...................................................14
Free Economic Zones (FEZ) and Industrial Parks (IP) ...........................................................16
15
“Invest in Moldova” helps you
...............................................................................................
.
20
Testimonials
..........................................................................................................................
.......................................................................................................................
18
2
growth of 4.5% of the manufacturing industry.
The production of electrical cable and wire har-
nesses has increased by 43%, followed by the
production of plastic and rubber products (+16%),
manufacturing of equipment for food processing
beverages and tobacco (+23%), construction ma-
terials i.e. cement, gypsum (11%), textiles (+9%),
etc.
A significant intake was brought by the automo-
tive industry, representing the biggest share in the
increase of electrical equipment and textile. Auto-
motive is one of the most dynamic industries in
Moldova. In 2017, the export of automotive cable
and wire harnesses registered a growth of 37.1%.
Industry overview
Moldova’s modern automotive industry foun-
dations build on its strong industrial past.
The share of industry in Moldova’s GDP rep-
resented 60% until the 1990s. Back then,
Moldova was one of the important producers
of industrial products among the CIS states
and now it revives.
Moldova was active in 97 branches of produc-
tion. 558 industrial enterprises, 21 R&D institu-
tions and 392 thousand workers were part of the
industry. Moldova successfully exported 90%
of its products in the machine building industry,
which represented 20% of total industry output.
The foundations of the local industry were com-
panies that produced a large variety of products,
from TV sets, refrigerators, washing machines to
tractors, and exported them to over 60 different
countries.
The industry production reached 14.6% of GDP
in 2017. In 2017, the industrial production regis-
tered an increase of 3.4%, mainly driven by the
2010 2011 2012 2013 2014 2015 2016 201713
14
15
14.32 14.37
14.76
15.03
15.2315.09
14.6
13.69
Source: Ministry of Economy and Infrastructure, 2018
Share of industry in GDP, %
Photo credit: FEZ Expo-Business Chisinau I Fujikura Automotive
3
Business start-up in
Moldova
20
64
67
Registering property, DB Ranking 2018
Moldova
Ukraine
38
45
48
57
Poland
Romania
Macedonia, FYR
Serbia
Bulgaria
12
20
29
29
42
42
55
Getting credit, DB Ranking 2018
Macedonia, FYR
Romania
Poland
Ukraine
Moldova
Bulgaria
Serbia
17
35
40
55
60
62
82
Enforcing contracts, DB Ranking 2018
Romania
Macedonia, FYR
Bulgaria
Poland
Serbia
Moldova
Ukraine
22
23
32
52
64
95
120
Starting a business, DB Ranking 2018
Macedonia, FYR
Moldova
Serbia
Ukraine
Romania
Bulgaria
Poland
29
32
42
43
51
82
90
Paying taxes, DB Ranking 2018
Macedonia, FYR
Moldova
Romania
Ukraine
Poland
Serbia
Bulgaria
4
Automotive components
industry
Nowadays, the automotive industry is a key
growing sector for the Moldovan economy.
This is due to an increased focus on the
unused industrial potential of Moldova and the
maintained industrial orientation in the education
system (Technical University, technical colleges
and vocational schools). The total export in
the automotive industry registered a growth of
37.1%, with a share of 14% in total exports.
Automotive Components Exports
Production concentrates on cables, wiring
harnesses for cars, car seat covers, plastic
molding injection, metal processing, electronics
and electronic components, and assembling.
This production is executed in Tier 1, 2, and 3
supplier plants, as well as local subcontractor
companies.
Important examples are Lear Corporation, Dräxl-
maier Automotive, Gebauer & Griller, Sammy Ca-
blaggi / Kablem, Elektromanufacturing, SUMIDA,
Confezioni Andrea Covercar, LEONI, SEBN Su-
mitomo Electric Bordnetze, Fujikura Automotive,
Coroplast Fritz Mueller, APM Automotive, Black-
sea EMS, Dräxlmaier DSM and Arobs Software.
Number of employees in AutomotiveSource: Invest in Moldova, based on information from companies
Source: Invest in Moldova, based on information from companies
Up to now, large direct investors prefer to locate
themselves in Moldova’s Free Economic Zones
(FEZ), which represents an excellent location for
industrial development and production relocation
oriented for exports.
EUR 137million
EUR 179million
EUR 228million
EUR 257million
EUR 290million
EUR 394million
2012 2013 2014 2015 2016 2017
6,2005,100
2012 2013 2014 2015 2016 2017
6,900 7,6509,100
15,000
5
What Moldova offers
Human resources are one of the most important assets of Moldova
Moldova offers an active, educated, and multi-
lingual workforce. It is a melting pot of several
nationalities, such as Romanians, Russians,
Ukrainians, and others. The official language is
Romanian, however there are more languages in
use: Russian, English, Ukrainian, Bulgarian, and
Gagauz language (close to Turkish). In addition,
many Moldovans speak French, Italian and Ger-
man.
The population of Moldova comprises ca. 3.55 mil-
lion people, with ca. 2.9 million above 15 years and
ca. 1.2 million representing the active labor force.
The unemployment rate is 4.1% (2017), howev-
er the employment rate stands at 40.5 % (2017)
compared to EU average of 71.1% (2017).
A considerable additional labor force could poten-
tially be represented by Moldovan migrants abroad,
willing to return back home and find a decent job.
Education
Well-educated young students, in sector-specific
faculties, are available to work in companies and
increase their productivity. Moldova has strong
technical faculties and specific colleges, e.g.
Chisinau and Balti Polytechnic Colleges, Techni-
cal College of UTM, Microelectronics College, In-
formatics College, Light Industry College, Tech-
Top reasons to invest in Moldovan Automotive Sector
Competitive and
well-educated labor force,
which is the result of
Moldova’s industrial past and
of a comprehensive education
system. At the same time,
Moldova features the lowest
labor costs in the region.
Just in time / Just in sequence
delivery to EU, CEFTA, and
CIS markets: Geographical
proximity and Free Trade
Agreements with EU and CIS
countries makes logistics
fast, easy and reliable in all
markets.
Free Economic Zones are
excellent manufacturing
platforms for automotive
growing automotive supplier
base. They offer
important incentives,
preferences, and
state guarantees.
Total number of students in 2017/2018
Source: National Bureau of Statistics, 2018
Total number of graduates in 2017/2018
Source: National Bureau of Statistics, 2018
29,638Colleges
16,948Vocational schools
65,543Universities
6,367Colleges
7,585Vocational schools
19,943Universities(cycle I, II)
6
Number of students in universities (Engineering & Exact Sciences) 2017/2018
Number of graduates in colleges (Engineering & Manufacturing) 2017/2018
Source: National Bureau of Statistics, 2018
Number of graduates in universities (Engineering & Exact Sciences) 2017/2018
Source: National Bureau of Statistics, 2018
Higher Education Institutions (2017/2018)
Graduates
Cycle l Cycle ll
Economic sciences 3,686 1,113
Law 2,205 1,164
Engineering and Engineering activities
1,099 302
Arts and Humanitarian sciences 637 234
Architecture and construction
408 120
Manufacturing technologyand processing
337 90
Exact sciences 275 172
Colleges (2017/2018)Stu-
dents
Grad-
uates
Economics 5,378 1,198
Information Technologies & Communication
2,594 503
Electrotechnics and energetics
1,158 298
Mechanics & metal working 1,508 315
Services (transport, hospitality)
3,046 518
Electronics and automation
1,342 327
Technology of food processing
1,130 244
Apparel industry 787 142
Construction 1,342 318
nological College etc. The Technical University of
Moldova has competences in textile, microelec-
tronics, mechanical engineering, etc.
Technical education is one of the strongest in the
Republic of Moldova, comprising best engineers
known for their expertise.
The Technical University of Moldova (UTM), lo-
cated in Chisinau, is the main high education
institution for technical education. The number
of engineers, managers and other specialists is
sufficient to meet the investor’s demand in most
sectors.
In contrast to other Eastern European countries,
Moldova’s unit labor cost is stable and growing
very slowly.
Source: National Bureau of Statistics, 2018
Source: National Bureau of Statistics, 2018
Architectures&Construction
InformationTechnology &Communication
137Transport
354
503
Industry
1,907
Exact Sciences
Architectures&Construction1,371
Engineering,Manufacturing& Processing
1,6812,156
3,503
Engineering
5,517
InformationTechnology &Communication
1,099
302337
90
408
120
Architecture& Construction
Engineering,Manufacturing & Processing
Engineering
247
154
Exact Sciences
Cycle I Cycle II
7
LEGEND
Secondary Vocational Institutions
(vocational schools) with TAFL specialities
Dual Secondary Vocational Institutions
with TAFL specialities
Post secondary Vocational Institutions
(colleges)
Higher Education Institutions
(universities)
VET
Population, thousand people
3553.1
814.1
681.1
150.7
145.8
Republic of Moldova,total
Chisinau municipality,
Balti municipality,
Chisinau city
Balti ci ty
Population, ATU Gagauzia, thousand peolple
161.9
26.2
22.9
16.7
ATU Gagauzia
Comrat municipality
Ciadir-Lunga
Vulcanesti
Anenii Noi
Population of the region
Population of region capital city
Basarabeasca
Briceni
Cahul
Cantemir
Calarasi
Causeni
Cimislia
Donduseni
Drochia
Dubasari
Edinet
Falesti
Floresti
Glodeni
Hincesti
Ialoveni
Leova
Nisporeni
Ocnita
Orhei
Rezina
Riscani
Singerei
Soroca
Straseni
Soldanesti
Stefan Voda
Taraclia
Telenesti
83.4 8.8
28.5 12.5
72.9 9.9
124.6 39.6
62.0 5.8
77.8 16.4
90.5 19.9
60.1 14.3
42.9 8.5
87.4 10.4
35.3 20.5
80.7 18.4
91.5 16.9
87.6 15.5
59.6 11.3
120.2 17.3
101.3 16.4
52.8 10.8
65.6 14.4
54.0 9.4
125.0 33.7
50.8 12.8
67.9 13.3
92.2 14.8
100.1 37.6
92.3 20.7
41.9 7.5
70.4 8.5
43.6 14.9
72.6 8.1
117.3 38.4
Population of Moldova in 2017,
Ungheni
thousand people
x2
x3
x2
Edineţ
Briceni
Drochia
Soroca
Florești
Șoldănești
Fălești
Ungheni
Călărași
Strășeni
Orhei
Nisporeni
Căușeni
Anenii Noi
Rezina
Cahul
Criuleni
Ialoveni
Ocniţa
Dondușeni
Rîșcani
Glodeni
Sîngerei
Telenești
Hîncești
Ștefan VodăLeova
Cantemir
Taraclia
Vulcanesti
Cimișlia
Cedîr-Lunga
CHISINAU
COMRAT
BĂLȚI
VET
VET
VET
VET
VET
VET
VET
VET
VET
VET
VET
VET
VET
VET
VET
VET
VETVET
VET
VET
VET
VETVET
VET
x2x2VET
VET
VET
x3VET
x19 x26x12VET
x6 x2x5VET
Educational institutions
8
Education system in the Republic of Moldova
27
26
25
24
23
22
21
20
19
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
Age
Kindergarden
ISCED
level
Competition based
enrolment
The baccalaureate
exam
Exit to labor
market
Dual Vocational
Education
One year compulsory pre-schooltraining
Primary school4 years
I - IV
Secondary school5 years
V - IX
First Cycle Licentiate (Bachelor)3-4 years
Second Cycle Master1-2 years
Doctorate3-4 years
Post-doctorate
0
1
2
3
3
3
5
5
6
3
4
Co
mp
uls
ory
Ed
ucati
on
Trade School
General
Secondary School2 years
Grammar
School3 years
X - XII
Professional
School2 years
College2-5 years
Hig
h E
du
cati
on
9
Operating costs and taxes
Moldova commends a highly-skilled, competi-
tively priced workforce. Labor costs are among
the lowest in the region and low enough to en-
sure cost-effective operations. This provides an
attractive basis for a successful business.
The gross wages in Moldova for workers in the
industry sector range from 180 EUR to 450 EUR,
depending on the region and professional level
of the employee, which is lower than the wages
in the region. A newly-graduated university stu-
dent of engineering could earn up to 600 EUR.
Moldova’s labor force combines low-cost with
high productivity, thus reflecting the key factor
for a strong business performance. The quality
of the labor force also derives from the industri-
al experience and history of Moldova, as it was
one of the most industrialized republics in former
Soviet times.
Corporate Income Tax
Evolution of the minimum wage in the Republic of Moldova and Romania
Source: PWC, Worldwide Tax Summaries 2017
Source: National Bureau of Statistics Moldova, Romania
Evolution of average gross salary in the economy
195€
2011
223€
2012
225€
2013 2015
220€
2016 2017
235€298€
2014
224€
Source: National Bureau of Statistics, 2018
Minimum wage in Moldova developed very slow, in some years even decreasing. In Romania, the
minimum gross salary doubled in the last six years, and maintaining a clear growth trend.
10
Source: Trading economics, wages
Source: Invest in Moldova
Structure of the average salary in Moldova, 2018 (EUR)
Average monthly wages in comparison in 2015
* There are locations with different salaries. The gross salary of 315 EUR (fully loaded or company
cost) is a country average in national economy.
Utility costs
The utility costs are lower than in the region:
Electricity Water Sewerage Gas
0.09EUR/kWh
0.726EUR/m3
0.586EUR/m3
0.21EUR/m3
Electricity, water and sewerage is subject of
change, depending on the region.
Rental prices for industrial spaces:
Moldova Romania Serbia
2–4 EUR / m2
3.5–4.5 EUR / m2
4–5 EUR / m2
In Free Economic Zones the rental price for pro-
duction halls is even lower, accounting for 0.8 to
2 EUR per square meter.
298€Moldova
460€Albania
461€Serbia
551€Russia
569€Macedonia
574€Bulgaria
685€ Romania
804€Croatia
1,042€Hungary
1,077€Poland
1,143€
Slovakia1,096€
Czech Republic
786€
Bosnia andHerzegovina
237€Ukraine
Net Salary
260.7056.77
Personal Income Tax (PIT) (12%)
21.56
386.35
Employee Social Security Tax (6%)
18.92
Employee Health Insurance Tax (4.5%)
14.19
Employer HealthInsurance tax (4.5%)
14.19
Social Fund (18%)
Gross Salary
315.38
Total Labor Cost,
11
Reservation of the subsidy
Payment of the subsidy
Year N Year N
N+1 N+1
N+1
N+2
ATU Gagauzia grants additional 20,000 MDL (approximately 1,000 Euro) per job created, and incentives for training costs
(50% for first 3 months’ salary).
at least 200,000 Euro per company.40,000 MDL (approximately 2,000 Euro) per job created
Eligibillity criteria
Creation of >100 new jobs
• Jobs maintained for at least 3 years
• Salary paid is not less than 75% of the
average annual salary
Ministry of Finance
www.mf.gov.md
Tel.: +373 22 26 26 81
Ministry of Economy and Infrastructure
www.mei.gov.md
e-mail:[email protected]
<15 September
Approval of the
application
<31 July
Submission of the appli-
cation to the Ministry of
Finance
COMPANY
SUBMIT
MINISTRY
OF FINANCE
<1 June-30 September
Submission of the appli-
cation for payment to the
Ministry of Finance
COMPANY
SUBMIT
MINISTRY
OF FINANCE
Payment of the subsidy
installment (50%)
<31 December
COMPANY
Payment of the second-
subsidy installment (50%)
<31 December
COMPANY
<15 November
Approval of the
application
Job creation subsidies
12
Favorable location
The outstanding location of Moldova and good
transportation infrastructure provides easy access
to both CIS and European Countries. The excellent
location enables just-in-sequence and just-in-time
delivery of goods. Considering Germany, it takes 2
days for truck deliveries.
The longest Pan-European Corridor is passing
through Moldova. Railway and road corridor IX from
Helsinki (Finland), St. Petersburg (Russian Feder-
ation), Gomel (Belarus), Kiev (Ukraine), Chișinău
(Moldova), Bucharest (Romania), Dimitrovgrad
(Bulgaria), and Alexandroupoli (Greece) — crosses
the country from North to South, linking it to key
trade partners.
Country City Supplier Distance, km Borders
RomaniaPitesti Dacia-Renault 560 1
Craiova Ford 710 1
Poland
Bielsko Biala Fiat Chrysler Automobiles (FCA) 999 1
Gliwice GM/Opel 1,029 1
Poznan Volkswagen 1,303 1
HungaryGyor Audi 1,077 1
Esztergom Suzuki 1,000 1
Slovakia
Trnava PSA Peugeot Citroën 1,126 1
Bratislava VW 1,170 1
Zilina Hyndai/KIA 1,100 1
Austria Graz MagnaSteyr 1,350 1
Bosnia & H. Sarajevo Skoda 1,288 3
Czech Republic
Mlada Boleslav VW 1,440 1
Kolin PSA/Toyota 1,450 1
Slovenia Novo Mesto Renault 1,475 1
Russia
Taganrog Hyundai, GM 950 2
Kaluga VW, PSA, Mitsubishi, Skoda 1,290 2
Sankt Petersburg GM, Toyota, Nissan, Hyundai, Ford 1,690 2
Nijnii Novgorod Skoda 1,790 2
Toliatti Renault 1,990 2
Bulgaria Bahovitsa Great Wall Motor 780 1
TurkeyGebze, Izmit Honda, Isuzu, Hyundai 1,093 2
Toyota, Otkar (Iveco, Land Rover) 1,143 2
A strategic location in close proximity to OEMs, Tier 1 and Tier 2 suppliers, enabling just-in-
sequence and just-in-time delivery.
Germany
Moldova2 days
China (TranSib)23 days
China (Ship)35 days
Giurgiulesti International Free Port
Moldova is also linked to Corridor VII (Danube
from Passau-Germany to the Black Sea) through
the GIFP, situated at km 133.8 of the River Dan-
ube, direct sea/river-borne transshipment and
distribution point to and from Moldova. A regional
logistics hub on the border of the EU with access
to road, rail, river, and sea. GIFP offers container,
bulk, oil terminals, and forwarding services.
Transportation Time
13
Competitive products
Moldova provides excellent opportunities in
Tier 2 and Tier 3 supplier production in the
Automotive Industry.
The combination of the knowledge pool, labor
cost advantages, favorable tax and social se-
curity regimes, and close trade relations makes
production competitive for products like:
Automotive Supply Chain structure:
3rd Tier(Part-/Raw material Supplier)
2nd Tier
(Component Supplier)
1st Tier(System
Modul Supplier)
Product DescriptionAlready produced in
Moldovan Automotive Industry
Already produced in Moldovan General
Industry
Seat covers, car covers, airbags, textile parts x x
Textile tapes, safety belts x
Cables and wires x x
Wire harnesses x x
PU Foam x
Plastic molding injection x x
Carpets / Rugs x
Laminations (leather / cloth) x
Foundry x
Metal parts lathe x x
Electronics EMS, SMT, THT x x
Metal construction (welding) x x
14
SUCCESS STORIES & INDUSTRIAL COMPETENCES
Danube
Sulina Branch
Sf. Gheorghe Branch
Kilia B
ranch
Pru
t
Prut
Nistru
Nistru
Mohyliv-Podolikyi
Odessa
Izmail
Bolgrad
Galati
Iasi
Braila
Focsani
Buzau
Kilia
SulinaTulcea
Belgorod Dnestrovsk
Dnestrovsky Lim
an
Ra
zim
lak
e
Co
nsta
nta
Ista
mb
ul
BLACK
SEA
BĂLŢI
Căușeni
Cahul
Glodeni
Costești
Sîngerei
Leova
Cantemir
Edineţ
Briceni
Drochia
Soroca
Florești
Șoldănești
Fălești
UngheniCălărași
Strășeni
Orhei
Nisporeni
Anenii Noi
COMRAT
Vulcănești
Rezina
CHIȘINĂU
Criuleni
Ialoveni
Ocniţa
Dondușeni
Rîșcani
Telenești
Hîncești
Ștefan Vodă
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
Regions were the biggest employers from the automotive sector are located
Owner: Private
Free buildable area: 15 ha
Negociable lease & purchase
STRĂŞENI Subzone
R1
R36
Owner: Public
Free buildable area: 42 ha
Land price: 0.65 EUR / m2
CIADÎR-LUNGA Subzone
Owner: Public
Free buildable area: 40 ha
Land price: 1.5 EUR / m2
COMRAT Subzone
500 Free buildable area
in FEZ all over the country
ha+
Owner: Public
170 ha - posibility to extend
Land price: 1.5 EUR / m2
ORHEI Subzone
Owner: Public
17.6 ha
Land price: 1.5 EUR / m2
SOROCA Subzone
Owner: Public
Free buildable area: 32 ha
Land price: 0.15 EUR / m2
CĂLĂRAȘI Subzone
FEZ BĂLŢI
Owner: Public
Total area: 136 ha | Free buildable area: 130 ha
Master plan: Topography & Geology surveys
Buried services: Water, Electricity, Gas, Sanitation
Land price: 3.5 EUR / m2
R38
Owner: Public
Free buildable area: 23 ha
Land price: 0.15 EUR / m2
CAHUL Subzone
R13
R14
R38
M2
M2
R1
FREE ECONOMIC ZONES GREENFIELD
F
i
15
16
Free Economic Zones
The Free Economic Zones (FEZ) represent excel-
lent platforms that are convenient to export-ori-
ented manufacturing companies, which intend
to benefit from a preferential customs and tax
regime.
There are 7 FEZ in Moldova, spread throughout
the country and located either near a border, or
in big cities. These FEZ offer preferential condi-
tions and a dedicated customer-oriented admin-
istration.
Activities in the FEZ are limited to industrial pro-
duction, packaging, trade, transportation, logis-
tics and utilities, with priority given to manufac-
turing. Moreover, Giurgiulesti International Free
Port and Marculesti Free Airport offer quite simi-
lar conditions to the FEZ.
Industrial Parks
Industrial parks (IP) are delimited territories in
which industrial production, services provision,
applied scientific research and/or technological
development are carried out under some prefer-
ences. There are 8 Industrial Parks in Moldova:
IP Tracom (Chisinau), IP Bioenergagro (Drochia),
IP Cimislia (Cimislia), IP Raut (Balti), IP CAAN
(Straseni), IP Edinet (Edinet), IP Triveneta Cavi
Development (Straseni), IP Comrat (Comrat).
Incentives for Industrial Parks:
• Free re-zoning of agricultural into industrial
land;
• Normative (below market) prices for the pur-
chased land;
• Reduced rental price for state land;
• Free connection to existing infrastructure in
the park;
• Minimal state inspection and control regime.
Photo credit: Invest in Moldova. Free Economic Zone Balti. Subzone 2
for a period 3 (5) years when
investing at least 1 (5) million USD
and no Excise and Customs duties
State guarantee on legislation
changes
Road and utillities infrastructure
EU border green lane (AEO)
Dual vocational system
Ongoing professional support
by FEZ Administration
EUR/USD payments among FEZ
residents
Minimal state inspection and control
regime
17
Danube
Sulina Branch
Sf. Gheorghe Branch
Kilia B
ranch
UKRAINE
ROMANIA
Pru
t
Prut
Nistru
Nistru
Edinet
Cupcini
Donduseni
Drochia
Soroca
Floresti
Rișcani
GlodeniBALŢI
Falesti
Singerei
Soldanesti
Ribnita
Telenesti
Calarasi
Orhei
Nisporeni
Hincesti
Causeni
Stefan Voda
TIRASPOL
Anenii Noi
Leova
Cantemir COMRAT
Basarabeasca
Ceadir-Lunga
Tvardita
Taraclia
Giurgiulesti
Slobozia
Grigoriopol
Dubasari
Otaci
Rezina
CHIȘINAU
Cahul
Criuleni
Cimișlia
Ialoveni
Briceni
Ocnita
Mohyliv-Podolikyi
Izmail
Bolgrad
Iasi
Timisoara, RO - 697km
Craiova, RO - 481km
Pitesti, RO - 370km
Bucharest, RO - 255km
Constanta, RO - 215km
Galati, RO - 10km
MD: Giurgiulesti
RO: Galati
Arad, RO - 654km
Craiova, RO - 641km
Pitesti, RO - 531km
Bucharest, RO - 407km
MD: Leuseni
RO: Albita
MD: Giurgiulești
UA: Reni
MD: Mirnoe
UA: Tabachi
MD: Ceadir- Lunga
UA: Novie Troiani
MD: Basarabeasca
UA: Serpniovoe 1 MD: Tudora
UA: Starokazacie
Odessa, UA - 77km
MD: Palanca
UA: Udobnoe
MD: Vulcanesti
UA: Vinogradovca
Iasi, RO - 24km
MD: Sculeni
RO: Sculeni
Baia Mare, RO - 443km
Suceava, RO - 97km
Bototsani, RO - 55km
MD: Costesti
RO: Stinca
MD: Unguri
UA: Bronnita
Kaluga, RU - 1063km
Kiev, UA - 385km
Vinnytsa, UA - 120km
Mohyliv-Podolskyi, UA - 0.5km
MD: Otaci
UA: Mogiliov-PodoliscMD: Briceni
UA: Rososeni
Tychy, PL - 771km
Katowice, PL - 768km
Lviv, UA - 341km
Ivano-Frankovsk, UA - 215km
Chernivtsi, UA - 105km
MD: Criva
UA: Mamaliga
M14
M14
M14
M3
M2
M2
M4
M4
M4
M4
M4
M21
22E
24
24C
24D
H10
P63
M05
M05
M13
M05
M05
H03
M14
M14
Buzau
Kilia
SulinaTulcea
Dnestrovsky Lim
an
Razim
lake
Co
nsta
nta
Ista
mb
ul
BLACK
SEA
Ungheni
Straseni
Main distancesin km and hours (h)
ChișinăuBalti136 km
Straseni25 km
Soroca156 km
5 h
2.5 h
2.5 h
2 h1 h
2 h
4 h
5.5 h
Briceni240 km
Causeni70 km
Comrat105 km
Cahul170 km
Giurgiulesti225 km
FEZ Otaci Business
FEZ Marculesti Hub Airport (Floresti)
FEZ Balti
• Subzone Straseni
• Subzone Panasesti
• Subzone Comrat
• Subzone Ceadir-Lunga
• Subzone Causeni
• Subzone Orhei
• Subzone Cahul
• Subzone Rezina
• Subzone Falesti
• Subzone Cimislia
• Subzone Stefan Voda
• Subzone Chisinau
• Subzone Calarasi
• Subzone Nisporeni
• Subzone Hincesti
• Subzone Soroca
• Subzone Singera
FEZ Ungheni Business
FEZ Expo Business Chisinau
FEZ Tvardita
FEZ Taraclia
FEZ Valkanes (Vulcanesti)
FEZ Giurgiulesti Free International Port
FEZ location name
17
FREE ECONOMIC ZONES & INDUSTRIAL PARKS
18
“Coroplast started its operation mid of 2017 in the Republic of Moldova.
Since the start, we faced a strong cooperation with the government and the
related authorities.
Together with the availability of motivated and disciplined work force, we had
a successful start in the country and will expand the operations significantly
in the upcoming months within the Free Economic Zone Balti, Subzone
Causeni.”
Torben Kämmerer
Managing Director
Director of Business Unit Cable Assemblies
“Due to a favorable geographic positioning, the Republic of Moldova is a
good location for international companies and transnational corporations,
becoming more and more attractive for the development of business of the
Western and Eastern markets. INTROSCOP SA, being a part of NCH Cap-
ital Inc., is an example of succesfull American investment, becoming in the
last years one of the biggest automotive producers in our country.”
Valeriu Bodiu
General Manager
“SEBN aims to implement a long term project in Moldova, which confirms
that the country is attractive for the automotive industry with available
workforce, necessary infrastructure for its development and openness to
foreign investment. Through early engagement and strong collaboration
with the Parliament, Government and local authorities, it was created a
Free Economic Zone in Orhei, which provides favorable conditions for a
successful activity.”Oliver Schacht,
Member of the Board, COO, SEBN SE
Igor Corman,
Administrator of SE Bordnetze SRL
“Moldova has a competitive country profile, providing good opportunities for
business development. These are multiplied by the willingness of Authorities
and such Institutions as MIEPO and GIZ of collaboration with the foreign
investors, in order to contribute to the economy growth. This makes a solid
foundation for a long term partnership between the Foreign Investor and the
Country Society.”
Angela Piliughin
Business Expansion Director Fujikura Automotive Europe
& Administrator of Fujikura Automotive MLD
19
“Since 2007 we work in Moldova and our experience is very pos-
itive. The strategic location and proximity to the European Union,
the great manufacturing tradition of workers and the direct relations
with local and central institutions of the capital Chisinau ensure
excellent base for any foreign investor.”
Fabio Zanno, Chief Operating Officer Kab-lem Group
Andrea Bobbo, Sales R&D Manager
“The international growth of G&G requires a good choice of regions
for our plants. We look for availability of motivated staff, safety and
good cooperation with authorities. All of these factors made Mol-
dova to a strong match. We are very satisfied with the conditions in
Balti and are happy to increase our foot print soon.’’
Nikolaus Griller
Managing Director, Sales and Innovation Management
“We started our business in Moldova in 2007 and since then have
continuously expanded operations. Moldova proved to have
great potential for the development of our project within the Free
Economic Zone in “Balti”, with excellent support by local and
central authorities.”
Guido Meinelt
Plant Manager at DRA Draexlmaier Automotive SRL
“Ungheni and its free economic zone, where Lear Moldova is placed since
2010, confirmed itself as a well performing and competitive plant. The ge-
ographical position (30 km from EU border), the proximity to the European
customer base and suppliers, as well as the dedicated labor force are the
right ingredients for a success story.”
Sven DAMM, VP of Trim Operations for Europe & Africa
“We decide to open a new production plant in Moldova for a good strate-
gic position and a reasonable labor cost. Local and central Government
authorities offer entire support in investment and business activity.”
Gregorio Isgrò
Administrator at CONFEZIONI ANDREA MDV S.R.L.
20
We are here to support you
We will assist you in setting up your operations in
Moldova. 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 requirements into concrete investment
site proposals; providing consulting services
to ensure you make the right location decision.
We coordinate site visits, meetings with potential
partners, relevant existing investors, universities,
colleges, vocational schools and other institutes
active in the industry, as well as meetings with
relevant embassies, business associations,
government 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 domestic labor market. Invest
in Moldova experts help you create the appropriate
financial package for your investment and put you
in contact with suitable financial partners. Our
specialists provide you with detailed information
about available incentives, support you with the
application process, and arrange contacts with
local developers.
All of our investor-related services are treated
with the utmost confidentiality and are provided
free of charge.
STRATEGY EVALUATION DECISION & INVESTMENT
PROJECT MANAGEMENT ASSISTANCE AND PROVIDING INFORMATION
LOCATION CONSULTING / SCOPING MISSION SUPPORT
AFTERCARE / POSTINVESTMENT SUPPORT SERVICES
Identification of
sector-specific
investors
Identification of
project-specific
locations
Identification
of sourcing
opportunities
Identification
of and general
information on
relevant tax, legal
and administrative
issues
General data
and statistics for
investor feasability
study support
Information on
suitable locations
Connecting
with relevant
recruitment
legal, tax and
other consulting
companies
Sector-specific
details &
information of
legislation
Relevant site
presentation and
preselection
Facilitation and
communication
worth public
local and central
authorities as
well as relevant
private sector
representatives
Site visit
organization
Arranging
meetings with
public authorities,
relevant
private sector
representatives
Joint project
management
assistance
together with FEZs,
IPs & IT Parks
administration
Advice on
administrative and
legal issues
Coordination
and support of
negotiations with
local authorities
Final site
decision support
Supporting
investors and
associations
in their efforts
to improve the
business climate
Photo credit: Automotive Days
Moldova – Your next destination
www.automotivemoldova.com
Automotive components
and suppliers forum
14-15 MAY
2019
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
Sarajevo
Pitesti
Timisoara
Oradea
Mlada Boleslav
Kolin Lviv
Kiev
Balti
Chisinau
500km
1000km
1500km
2000km
ZaporojeEsztergom
Turin
Munchen
Valls
Pamplona
SindelfingenParis
Genk
Bratislava
Gyor
Graz
Novo Mesto
Pecs
Katowice
Minsk
Wolfsburg
Leipzig
Bremen
Poznan
Glewice
Kaluga
Nijnii Novgorod
Tolyatti
Sankt Petersburg
500km1
000km1
500km2000km
500k
m
1000
km
1500
km
2000
km
500km
1000km
1500km
500km 1000km 1500km 2000km
500km
1000km
1500km
2000km
MD
The Moldovan Investment Pro-
motion Agency is the prime
source of information and as-
sistance for potential investors.
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.
Contact us:
134 Ștefan cel Mare bd., Chișinău,
Republica Moldova, MD-2012
Tel:+373 22 23 27 03
Fax: +373 22 22 43 10
[email protected], [email protected]
www.invest.gov.md
©The Moldovan Investment Agency
In close cooperation with, and supported by: