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MoldovaBrussels, 27 June 2007

United Nations Development Programme

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MOLDOVA

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MOLDOVAWhy to invest?

• Favorable geographical position that joins Western Europe • and CIS countries (new status – EU neighbor)

• Free Trade Agreements with CIS countries and Romania

• Full IMF support for the government's economic policies

• Low labor costs and well qualified labor

• Existence of a sound legal framework for the economic • activity of foreign businesses

• Numerous market niches and the possibility• of producing superior quality agricultural products

• A government committed to boosting• foreign investment and privatization

• Moldova benefits from GSP+ trade preferences

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MOLDOVA FDI and Export flows

• Export to 9 countries:

Russia, Italy, Romania, Ukraine, Belarus, Germany, USA, Turkey

Poland

• Export to EU countries grew 10%

• Investment tax incentives - new legislation from January 1st 2007

• Currently in Moldova there are 6 Free Economic Zones: – "Expo-Business-Chisinau" (located in the capital Chisinau)

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MOLDOVA Country Priority Sectors

1. Textile and apparel

2. Agribusiness/food processing

3. Wine

4. ICT

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MOLDOVA Textile and Apparel

• Second exporter after wine industry (990 mil USD)

• Attractive for CM production - more competitive prices, low labor cost compared to CIS countries and China

• CM and CMT model: Cutting and manufacturing services CM /CMT

• Favorable customs regime (e.g. no quantitative restrictions (quotas, contingents etc.) on export or import of textiles and related products, favorable custom duties, no charging of VAT in case of inward processing

• Experience in handling foreign investors/exports standards

• (e.g. experience in export of raw material to Moldovan enterprises, subcontracting under CM

0 0.05 0.1 0.15 0.2

USD/standard minute

Moldova

China

Russia

Romania

Baltic Countries

Portugal

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MOLDOVA Agribusiness and Wine

• Moldova’s competitive advantage includes:– Strong labor force specialized in high yield labor-

intensive crops for export markets– Favorable soil and climate– Fast growing number of enterprises with new

complex quality control systems and the ISO9000 standards

Wine - 15% of GDP– Good quality wine at relatively low cost– Full range of products

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MOLDOVAIT

• Investment opportunity: Outsourcing opportunity both in hardware manufacturing, software production, services – call centers

– UNDP internet project with the Belgium Call-Center company

– IT Enterprises whose income is over 50% derived from the sale of their own developed software are exempt from income tax for a period of 5 years

• 90 significant players in IT including those operating in hardware, software and telecommunications

• there are 4,000 IT specialists. Every year 6 high schools produce approximately 300 graduates with diplomas in IT

• wages in the industry start from USD 250 and reach USD 1,500. Average wage is around USD 700

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MOLDOVA

Thank you 

Malgorzata WalczakInvestment Broker

Growing Sustainable Business for Poverty Reduction Programme

Tel: +373 22 220045 Ext.: 121Mob,: +372 69 888980Fax: +373 22 220041

malgorzata.walczak@undp.orgwww.undp.org/business/gsb

www.undp.md  

UN House131, 31 August 1989 str.,

Chisinau, MD2012, Moldova