Transcript warm summer (Jul. +25 +28°C)

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THE ECONOMIC SITUATION AND
INVESTMENT CLIMATE OF THE
REPUBLIC OF MOLDOVA
8th of April, Chisinau
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General country overview
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Area:
33,800 km2
Population:
3.58 million
Capital:
Chisinau - 717,000 citizens
Climate:
moderate winter (Jan. -4 -7°C ),
warm summer (Jul. +25 +28°C)
Official language:
Moldovan, also Russian
spoken
National Legislature: Unicameral assembly, the
Parliament has 101 members
Head of state:
Vladimir VORONIN
Administrative units: 32
National currency:
Exchange rate:
Moldovan Leu (MDL)
1 € = MDL 16.20
1 $ = MDL 10.50
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Macroeconomic Development
Inflation/Exchange rate, %
During 2000-2007 years Government policy was oriented to assurance of
macroeconomic stability, development of real sector of economy, promotion
of structural reforms, intensification of external commerce.
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Macroeconomic Development
Share of main economic activities
in the generation of GDP
2007
Agriculture
Industry
- of which: manufacturing industry
Services
- of which: construction
Wholesale and retail trade
Transport and communications
Net taxes on products and import
GDP by elements of final
consumption
%
9,9
14,8
11,6
61,1
4,8
12
12,1
17
In 2007, macroeconomic policies have been oriented to assure a GDP
growth of at least 6%, but due to the drought that hit Moldova, only a 3%
GDP growth was recorded
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Foreign trade (mln. US$)
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Structure by regions
Export, %
Import, %
2003
2004
2005
2006
2007
2003
2004
2005
2006
2007
EU countries
26.7
30,1
40,7
51.1
EU-27
50.6
36.0
32,9
45.3
45.2
EU-27
45.6
CIS countries
53,6
51,0
50,5
40,3
41
42,3
43,2
39,5
37,9
36.1
Other countries
19.7
18,9
8.8
8.6
8.4
21.7
23.9
15.2
16.9
18.3
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Foreign trade – main partners
Export
2007
Import
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Trade policy
• June 2001 – Moldova becomes member of WTO;
• June 2001 – Moldova becomes member of Stability Pact for
South East Europe (SPSEE)
• December 2006 – Moldova signs Central European Free Trade
Agreement and becomes member of this agreement.
• Free Trade Agreements signed with 10 CIS countries (except
Tajikistan)
• The Republic of Moldova benefits from the General System of
Preferences Plus (GSP+) granted by the EU (about 9.7 th.
groups of products out of 10.2 th. have free access on EU
market without customs duties).
• 1st March 2008 – Moldova will benefit from Autonomous Trade
Preferences (ATP) offered by European Union.
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Moldova - FDI Inflows
Share of Net FDI in GDP
2003
2004
2005
2006
2007
FDI, mill.
US$
73,8
151,0
197,4
241,9
448
GDP, mill.
US$
1981,2
2598,1
2988
3409
4395
3,7
5,8
6,6
7,1
10,2
FDI/GDP, %
Total cumulative
Actually, businessmen from more than 80 countries are
investing in Moldova, the major investments being from
European Union countries, CIS countries, USA and
Canada.
Source – National Bureau of Statistics
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FDI in Moldova by countries of
origin and breakdown by sectors
As of 1st January 2008
Nr.
1
Country
Netherlands
2
3
4
5
6
7
8
9
10
11
Russian Federation
Italy
Cyprus
Spain
United Kingdom
Germany
USA
Romania
France
Ukraine
Total
% from total
21
10.6
10,2
10,0
7,8
5,0
4,9
4,2
3,8
3,8
1,1
100
There are
6357 registered companies with
foreign capital. During 2007, there were 851
registered companies with foreign capital.
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Legal framework for
investment in Moldova
 Law on investments in entrepreneurial activity
 Investment Attraction and Export Promotion Strategy
for 2006-2015
 40 signed bilateral agreements in relation to promotion and
reciprocal protection of investments
 Law on Entrepreneurship and Enterprises 845-XIX form 0.01.1992
 Law on Limited Liability Companies – nr.135-XVI from 14.07.2007
 Law on Joint Stock Companies – nr. 1134 from 02.04.1997, modified
by Law 163 from 13.07.2007
Moldova concluded 35 bilateral agreements in relation to promotion and reciprocal protection of investments.
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Republic of Moldova and cooperation
within regional structures
- Co-operation activities; - Know-how exchange
Programme; - Technical Cooperation Projects
- EU’s regional initiative - “Black Sea Synergy”
- Project Development Fund
- Black Sea Trade and Investment Promotion
Program
-Investment Compact for South-East Europe
- Investment Reform Index
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Business Opportunities
in the region
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Taxation
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Starting with 1st of January 2008 the corporate income tax
is equal to 0%, the 15% share will be applied only to dividends
2005
2006
2007
2008
Corporate income tax (%)
18
15
15
0
Personal income Tax (%)
20
20
15
7,18
Social security payments (%)
27
26
25
24
VAT rates:
Standard rate:
20% - applied to imported goods and services and also delivered in Moldova
Reduced rate:
8% - Bread, milk and their derivates
5% - Natural gas and products of it
Zero rate:
0% - goods and services with social purposes
Excise duty applied on:
Alcohol products, tobacco, petroleum and its products, cars, gambling activities.
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Moldova offers
 Favorable geographic position in the South Eastern Europe;
 Qualified labor force and relatively low labor cost;
 Market access and regional market potential
 The lowest corporate taxes in the region –0%;
 Extended fiscal incentives on investments;
 Well-developed banking system and international accounting
standards, including BASEL system.
 Fertile soils and favorable conditions for agriculture;
 Progressive visions on stimulating entrepreneurial activity.
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Thank You
Moldovan Investment and Export Promotion Organization
65 Alexei Mateevici str., MD 2009
Chisinau, Republic of Moldova
Tel: +373 22 273654 , Fax: +373 22 224310
e-mail: [email protected]
web site: www.miepo.md
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