Transcript Investing in Moldova

Investing in Moldova
“Great place to live and locate a business”
1st UNDP – Hellenic Ministry of Foreign Affairs Business Forum
02 April, 2009, Athens
Where is Moldova?
 Located
in SouthEastern Europe,
bordering Romania
and Ukraine;
 Area: 33,8 thousand
sq. km.;
 Population: 3,6 mil;
 Capital: Chisinau
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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;
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 0%
Corporate
Income Tax (on
reinvested earnings)
 Low
operational
costs
 Ideal
platform for
manufacturing and
exporting both to
CIS and to the EU
 Investor’s
MoET
helpdesk
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Why invest in Moldova? (2)
Proximity to large world markets (European Union –EUand 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.
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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;
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Key opportunities for sectors
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Agri-business and food processing;
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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
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Textile and leather;
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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
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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
Free Economic Zones
8 free economic zones operate
in Moldova offering:
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0% corporate tax;
VAT Exemption;
Excise tax exemption;
Skilled workforce;
Quality infrastructure
consisting of:
Road and Railway;
Water, gas, energy.
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Marculesti Free International Airport
International Logistics Center
offering the following services:
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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.
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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.
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.
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).
What is the Moldovan
Investment and Export
Promotion Organisation?
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Your primary contact point in attracting FDI
to Moldova;
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Can assist you in identifying partners,
locations and opportunities;
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Can assist you in sourcing Moldovan exports;
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Is here to assist you!
Thank you for attention!
Q&A
Sergiu Gogu,
Investment Adviser
phone: +373(22)232703
[email protected]
Aurelia Braguta, PhD
UNDP Investment Broker
Phone: 37322 269121
[email protected]
Moldovan Investment and Export Promotion Organisation
65, Alexe Mateevici str. 2009 Chisinau, Moldova
phone: + 373 (22) 232 703
[email protected] www.miepo.md