Republic of Moldova Opportunities Nearby KEY FACTS

Edition 2016/2017

Agriculture

ICT Textile, Apparel, Footwear and Leather goods

Automotive Renewable Energy

Republic of Moldova Opportunities nearby KEY FACTS

Ofﬁcial name Language Population Republic of Moldova Romanian (official) 3.55 million Other spoken languages: Russian, Ukrainian, English, French, German, Italian, Turkish, Bulgarian

Currency MDL Capital Chisinau Area 1 EUR = 21.63 MDL ca. 814,000 inhabitants 33,846 km2 December 2016

44 3 40.3% 235 € /month Doing Business Employment rate Average wage (gross) 2017 Rank 2015 2016 € 4,514 9.7% GDP per capita at PPP Inﬂation rate 2015 2015

> 1MIO Investment 6% FEZ 0 % CIT 12% General regime billion € /hour € 5.78 EXCISE 1.80 CUSTOMS GDP current prices 0% DUTIES in FEZ Full load (labor cost) 2015 0% VAT in FEZ 2016

Free Trade Agreements signed with 43 countries, including: • DCFTA (Deep and Comprehensive Free Trade Area with the European Union) – 500 million customers; • FTA with CIS countries (Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Uzbekistan) – 250 million customers; • FTA with Turkey – 80 million customers; • CEFTA Central European Free Trade Agreement (Moldova, Macedonia, Albania, Serbia, Montenegro, Bosnia and Herzegovina and UNMIK (Kosovo) – 30 million customers; • GUAM Organization for Democracy and Economic Development (Georgia, Ukraine, Azerbaijan, and Moldova) – 60 million customers.

880 million FIN SWE Customers NOR RUS duty-free EST LVA market LTU BLR GBR DEU POL CIS EU CZE UKR

AUS KAZ HUN FRA ROM ITA CEFTA GUAM BGR UZB

ESP GRC TUR Contents

Why Moldova ...... 2

Economic overview ...... 3

Available workforce ...... 4

Educational institutions...... 5

Operational costs ...... 6

Taxes & Customs ...... 7

Trade potential ...... 8

FDI facts ...... 9

Business start-up in Moldova ...... 10

Investment incentives ...... 11

Free Economic Zones & Industrial Parks ...... 12

Success stories & Industrial competencies ...... 14 Why Moldova?

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.

With some 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, Confezione Andrea, Südzucker AG, Lactalis-Alba, Gebauer&Griller, Steinel Electronic, La- farge, Pentalog, Fujikura Automotive, SEBN and others already established their own plants in Moldova, or source from Moldova by making use of the local sub-contractors. Bordered by Romania on one side and by Ukraine on the other, Moldova is close to both EU and CIS markets. Moldova is connected via Airports, wide and narrow gauge railways, roads and the Danube River to the whole of Europe and the Black Sea. Distances

London Milano Vienna Bucharest Chișinău Moscow 2500 km 1900 km 1200 km 440 km 1300 km

• The Giurgiulesti International Free Port is situated • 1138 km Railway network in Moldova (single at km 133.8 from the Black Sea, on the maritime track), with both wide and narrow track gauge; section of the river Danube; • Link to the Pan-European transport Corridor VII – • Direct connections to Ukraine and Romania (most the Danube from Passau (Germany) to the Black important crossings at Ungheni (MD) – Iasi (RO), Sea (2300 km long); Cantemir (MD) – Falciu (RO) and Giurgiulesti (MD) – Galati (RO) ).

Top reasons to Invest in Moldova

Moldova’s trade is largely liberalized to Moldova’s Free Economic Zones offer both the European Union and Com- further incentives, including a corporate monwealth of Independent States. Most tax of 3–6% and total exemption from VAT and custom duties. They represent important destinations in these markets excellent manufacturing platforms offer- can be reached within 2 truck days. ing also state guarantees and administrative support.

Moldova is constantly improving its busi- The workforce is skilled and multilingual. ness climate, being well positioned in Labor costs are the lowest in the region, the Doing Business ranking (44 / 190 in creating a competitive business environ- 2017). ment.

2 Economic overview The production of electrical equipment has increased by 32.2%, followed by the production of textiles Over the years 2011–2015, the average economic (+19.9%), significant intake was brought by the au- growth of the Republic of Moldova registered 3.9% tomotive industry, and chemicals (+17.6%), pharma- per annum. The most dynamic sectors have been ceuticals (+16.9), wood processing and wood articles ICT, manufacturing industry, automotive industry (+15.9%), and others. A significant intake was brought and agriculture. by the automotive industry, which is one of the most dynamic industries in Moldova. Total export of auto- Historically, the largest industries in Moldova have motive industry is over 257 million EUR (in 2015), been the manufacturing industry, agriculture and with a growth of ca. 13%. food processing, textile, apparel and footwear. The ICT sector is a rather new and fast growing sector Share of industry in GDP, % for Moldova, with many foreign companies entering 15.2 the market. 15

GDP in current prices, billion EUR 14.3 14.1 7 13.9 14 13.6 6.620 6.057

5.780 6 13 5.559 2011 2012 2013 2014 2015 5.357 Source: Ministry of Economy, Social-economic development of Moldova, 2016. 5 The agricultural sector has large potentials in production of fresh and processed fruits and vegeta- bles, wall nuts, honey, meat, dairy products and 4 2011 2012 2013 2014 2015 poultry. A strong potential is also located in the or- Source: IMF, World Economic Outlook Database, 2016. ganic and biological food production, due to the rich GDP per capita at PPP, EUR soil and appropriate climate.

5 The agricultural production registered a decrease of 4,514 13.8% in 2015, driven by the strong decrease of

4,149 the vegetable production by 22.6% (due to a severe drought in summer). However, the life stock produc- 4 tion registered a growth of 2.2% in 2015, mostly driven by the increase of cattle and poultry production by 5.6%.

3 2,852 Share of agriculture in GDP, % 2,581 2,554 14 13.0 13.0 13

2 12.0 2011 2012 2013 2014 2015 12 11.2 Source: IMF, World Economic Outlook Database, 2016. 11

The industry production reached 15.2% of GDP in 10 2015, while the agricultural production decreased to 9.2 12.0%. In 2015, the industrial production registered 9 an increase of 0.6%, mainly driven by the growth of 8 2.3% of the manufacturing industry. 2011 2012 2013 2014 2015 Source: Ministry of Economy, Social-economic development of Moldova, 2016. 3 Available workforce

Moldova’s population is an adaptable society, with Active population across regions, 1000 workers 80% of the population multilingual and 33% of population under 25. Chisinau 353.9 353.5 Moldova successfully and peacefully merges such nationalities as Moldovans, Romanians, Rus- North 384.0 sians, Ukrainians, Gagauz, Bulgarian, and others. 356.1 As well, Moldova’s population has a high degree of language skills in Romanian, Russian, English, Center 329.1 French, German and other international languages. 321.5

198.7 Moreover, the young population is looking to work South with international companies and uses their com- 201.3 petences and skills. The economically active pop- 2015 2014 ulation consisted of around 1.267 million people in 2015. Source: National Bureau of Statistics, Regional statistics.

Vocational education is an integral part of the national education system oriented towards training 47 and development of specific skills and competenc- secondary vocational es, in order to have prepared pool of workers for institutions the national economy and foreign companies. Vo- 45 post- secondary cational education provides training in a profession vocational according to the harmonized European framework institutions 31 higher of qualifications, as required by the labor market. education institutions

Enrolled students and graduates of the upper secondary and higher education institutions, 2015/2016 81,669

67,397

30,428

23,630 17,828 16,098 14,272 9,220 6,252 Total Secondary vocational institutions Post-secondary vocational institutions Bachelor Master 5.802

Upper secondary education Higher education Students Graduates

4 Educational institutions in the Republic of Moldova

Ocniţa Briceni VET VET Dondușeni VET Edineţ Soroca VET VET x4 Drochia VET Rîșcani Florești VET VET x2 Șoldănești Glodeni BĂLȚI VET VET x5 x6 x2 Sîngerei Rezina VET VET

Fălești Telenești VET Orhei Ungheni VET x2 Călărași VET x3 VET Criuleni Strășeni VET Nisporeni VET CHISINAU VET x12 x19 x26 Hîncești Anenii Noi Population of Moldova in 2016, VET thousand people Ialoveni Population of Population of Căușeni the region region capital city Cimișlia VET 124.6 39.6 Cahul VET Ștefan Vodă Leova 117.3 38.4 Ungheni VET VET x2 100.1 37.6 Soroca 125.0 33.7 Orhei 92.3 20.7 Straseni 35.3 20.5 Dubasari Cantemir 90.5 19.9 Causeni 80.7 18.4 Edinet COMRAT 120.2 17.3 Hincesti VET x3 x2 91.5 16.9 Falesti 101.3 16.4 Ialoveni 77.8 16.4 Calarasi Cahul 87.6 15.5 Floresti LEGEND VET 43.6 14.9 Taraclia x2 x2 Taraclia VET Secondary Vocational Institutions 92.2 14.8 Singerei VET 65.6 14.4 Nisporeni (vocational schools) 60.1 14.3 Cimislia Post Secondary Vocational Institutions 67.9 13.3 Riscani (colleges) 50.8 12.8 Rezina Higher Education Institutions 28.5 12.5 Basarabeasca (universities) 59.6 11.3 Glodeni 52.8 10.8 Leova 87.4 10.4 Drochia Population Population of ATU Gagauzia 72.9 9.9 Briceni 54.0 9.4 Ocnita 3553.1 Republic of Moldova, 161.9 ATU Gagauzia total 83.4 8.8 Anenii Noi 70.4 8.5 Stefan Voda 814.1 Chisinau municipality, 26.2 Comrat municipality 42.9 8.5 Donduseni 681.1 Chisinau city 72.6 8.1 Telenesti 22.9 Ciadir-Lunga 41.9 7.5 Soldanesti 150.7 Balti municipality, 62.0 5.8 Cantemir 145.8 Balti city 16.7 Vulcanesti

5 Operational costs Average hourly labor costs, EUR Moldova offers a highly-skilled, competitively-priced workforce. Labor costs are amongst the lowest in Moldova 1.8 the region and low enough to ensure cost-effective Bulgaria 4.1 operations. Romania 5.0 Moldova’s labor force combines low-cost with high productivity, thus reflecting the key factor for a strong Hungary 7.5 business performance. Poland 8.6 The quality of the labor force also derives from the industrial Croatia 9.6 experience and history of the Republic of Moldova, as Slovakia 10.0 it was one of the most industrialized republics in former Soviet times. Source: Eurostat, Statistics explained, 2015.

Utility costs Rental price

Electricity Water Sewerage Gas Moldova Romania Serbia 2–4 EUR/m2 0.09–0.10 0.726 0.586 0.34 3.5–4.5 4–5 3 3 3 0.8–2 EUR/m2 EUR/kWh EUR/m EUR/m EUR/m EUR/m2 EUR/m2 in FEZs

Average monthly wages in comparison, EUR 1025€ 959€ Slovakia Czech 921€ Republic Poland 801€ 750€ Hungary 658€ Croatia Bosnia and 576€ Herzegovina 506€ 521€ Romania 451€ Russia Macedonia 368€ 386€ Bulgaria Serbia Albania 220€ 175€ Moldova Ukraine

Source: Trading Economics, Wages, 2016.

Production hall Spamol SRL (Alpha industries), Chisinau (Source: Spamol SRL)

6 Taxes Customs There are 47 operational Tax Treaties for Avoidance Moldova is a member of the World Trade Organ- of Double Taxation concluded by Moldova with ization since 2001. In general, legal provisions other jurisdictions. Although Moldova is not a mem- allow moving freely any type of goods in and from ber of the Economic Cooperation and Development the territory of Moldova. Under the Moldovan law, Organization (OECD), Moldova applies OECD rules both definitive and suspensive customs regimes in interpreting Double Taxation Treaties. can be applied. Type of The Moldovan Customs Tariff is based on the Tax Rate Tax Harmonized Commodity Description and Coding Individual 7% < 29,640 MDL annual income < 18% System and the customs valuations are applied income tax according to the General Agreement on Tariffs and Corporate 12% Trade (GATT). income tax 7% for farmers enterprises (CIT) 6% within FEZs In addition, on June 27, 2014, Moldova has signed 3% within Free Port the Deep and Comprehensive Free Trade Agree- Social 6% for employee ment (DCFTA) with the European Union, which security 23% for employer provides improved access to the EU market of 500 Health 4.5% for employee million consumers for Moldovan goods and servic- insurance 4.5% for employer es, as well as improved investment opportunities. VAT 20% standard rate Authorized Economic Operators (AEO) 8% i.e. pharmaceutical 0% international transportation Since July 2014, companies can profit from the status of Authorized Economic Operator. It provides simplified transit of goods across the bor- Tax rates in comparison, % der, promoting voluntary compliance with customs requirements by providing more simplified clearance 18 procedures and other benefits to companies. 12 Moldova 15 EU operating companies as well as Moldovan com- 20 panies that correspond to the requirements listed in the Customs Code may apply for an AEO certificate 16 and benefit of the corresponding advantages. The 16 major benefits of an AEO status are border crossing Romania 16 priority (a special track for AEO has been designed), 20 limited number of customs controls, saving time and reducing operational costs of cross-border traf- 32 fic, priority treatment of consignments and check- 19 point choosing, if selected for control. Poland 19 There are three types of AEO certificates: 23 • AEOC – AEO certificate for simplified custom procedures; 40 20 • AEOS – AEO certificate for security and safety; Croatia 15 • AEOF – AEO certificate for simplified custom 25 procedures, security and safety. Until November 2016, ca. 100 companies have Ind. Income tax Corporate Income Tax Withholding Tax VAT been recognized as AEO, receiving one of the Source: PWC, Worldwide Tax Summaries, 2016. above-mentioned certificates.

7 Trade potential European Union is the main trade partner of the Total volume of exports and imports, EUR billion Republic of Moldova. In 2015, EU exports to Mol- dova amounted to 2.08 billion EUR (mostly machin- 4.394 4.024 3.979 4.009 ery and appliances, mineral products, transport 3.595 equipment, and chemical products). Meanwhile, EU 2.877 imports from Moldova continued to grow. Total im- 1.933 1.718 1.650 1.772 1.774 ports increased by 5%, to 1.22 billion EUR in 2015 1.150 (mainly textiles and textile articles, machinery and appliances, vegetable products and other food- 2010 2011 2012 2013 2014 2015 stuffs and beverages). Export Import Businesses located in the Republic of Moldova can ex- Source: National Bureau of Statistics, Foreign trade in 2015. port duty free to the West (EU), East (CIS) and South- East (Balkans). Since 1995, the country also has access to the United States and Japanese markets under the Generalized System of Preferences.

Imports by origin, % (2015) Exports by destination, % (2015) 13.1% 25.5% 25.5% Other countries Other countries CSI countries 61.9% EU countries

25.0% 49.0% CSI countries EU countries

Source: National Bureau of Statistics, Foreign trade in 2015. Source: National Bureau of Statistics, Foreign trade in 2015.

Giurgiulesti International Free Port, Source: Danube Logistics 8 FDI facts

In 2015, the net flow of foreign direct investment in the economy of Moldova amounted to 239.3 million EUR. Investors come to Moldova from many different countries, the EU and Russia make up for large shares of the total investments. This shows that Moldova is open for business for everyone.

FDI stock in sectoral distribution, 2015 FDI in Moldova by investor’s country, 2015

1.3% 1.5% Agriculture Healthcare & forestry 7% 12% Electricity, gas 3.8% Cyprus 9% & water supply Other 14% Russia Italy 9.6% 25.5% 6% Transport & Financial Germany communications intermediation 5% USA 13.8% 4% Wholesale & 19% Great Britain retail trade Netherlands 4% Romania 22.9% 3% 14.6% Manufacturing Austria Real estate & industry 19% 3% business services Other 2% Spain Turkey

Source: National Bank of Moldova, Annual report 2015. Source: State Chamber of Registration, FDI statistics, 2015.

Source: iStock 9 Business start-up Getting credit, DB Ranking 2017 in Moldova 7 Romania

The Republic of Moldova is ranked 20 Poland 44 out of 190 20 Ukraine 32 Moldova countries in the Doing Business 2017 ranking 32 Bulgaria 44 Serbia It takes 4 procedures and 1 day 75 Croatia to register a business in Moldova.

Starting a business, DB Ranking 2017 Paying taxes, DB Ranking 2017 20 Ukraine 31 Moldova 44 Moldova 47 Poland 47 Serbia 49 Croatia 62 Romania 50 Romania 82 Bulgaria 78 Serbia 95 Croatia 83 Bulgaria 107 Poland 84 Ukraine

Registering property, DB Ranking 2017 Enforcing contracts, DB Ranking 2017 21 Moldova 7 Croatia 38 Poland 26 Romania 56 Serbia 49 Bulgaria 57 Romania 55 Poland 60 Bulgaria 61 Serbia 62 Croatia 62 Moldova 63 Ukraine 81 Ukraine

10 Investment incentives

General Incentives Job 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 leaets 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.

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). - Incentives for the technology park resident companies (Law No 199 on IT parks): • unique tax of 7% from the turnover, replacing the CIT (Corporate Income Tax), PIT (Personal Income Tax), social security and medical insurance taxes, local and real estate taxes; • VAT and customs duties exemption for monitors, computers, network equipment, and components, as well as equipment and accessories according to tax and customs legislation; • State controls over the IT park residents’ activity are performed simultaneously by all bodies, as required by law, every three years.

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.

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.

11 Free Economic Zones Industrial Parks

The Free Economic Zones represent excellent Industrial parks are delimited territories in which indus- platforms for businesses that are convenient to trial production, services provision, applied scientific export-oriented manufacturing companies, which in- research and/or technological development are car- tend to benefit from a preferential customs and tax ried out under some preferences. regime. There are 8 Industrial Parks in Moldova: IP Tracom There are 7 FEZs in Moldova, spread around through- (Chisinau), IP Bioenergagro (Drochia), IP Cimislia (Ci- out the country and located either near a border, or in mislia), IP Raut (Balti), IP CAAN (Straseni), IP Edinet big cities. This Free Economic Zones offer preferential (Edinet), IP Triveneta Cavi Development (Straseni), conditions and a dedicated customer-oriented admi- IP Comrat (Comrat). Industrial Parks can potentially nistration. Activities in the FEZs are limited to industrial become the center for investment attraction and the production, packaging, trade, transportation, logistics place for different industrial and IT projects. and utilities, with priority given to manufacturing. More- Firms are given legal and consulting support in ob- over, Giurgiulesti International Free Port and Marculesti taining licenses, permits and approvals. Consulting Free Airport offer quite similar conditions to the FEZs. services also include project development, personnel Incentives offered in Free Economic Zones recruitment, knowledge management, marketing, etc.

• FEZs are connected to all important transport Incentives for Industrial Parks routes and have access to all regions through the • Free re-zoning of agricultural into industrial land; national and international roads; • Normative (below market) prices for the purchased • Customs Office available on site, operating 7days/ land; week (if necessary 24 hours/day); • Reduced rental price for state land; • Exemption from customs duties and excise duties on goods imported into the FEZs and subse- • Free connection to existing infrastructure in the quently exported; park;

• VAT for equipment and machinery: 0%; • Minimal state inspection and control regime. • 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).

Production hall Draexlmaier, Balti (Source: Draexlmaier) 12 H03 FREE ECONOMIC ZONES M05 Chernivtsi, UA - 105km Ivano-Frankovsk, UA - 215km & INDUSTRIAL PARKS Katowice, PL - 768km Lviv, UA - 341km Tychy, PL - 771km MD: Criva UA: Mamaliga Kaluga, RU - 1063km Kiev, UA - 385km Mohyliv-Podolskyi, UA - 0.5km MD: Briceni Vinnytsa, UA - 120km UA: Rososeni Mohyliv-Podolikyi MD: Otaci P63 UA: Mogiliov-Podolisc Otaci MD: Unguri Ocnita UA: Bronnita Briceni H10 M14 Nistru Prut Edinet Donduseni M05 Soroca

Cupcini M4 Drochia M2 Baia Mare, RO - 443km UKRAINE Bototsani, RO - 55km Rișcani Suceava, RO - 97km Floresti MD: Costesti M14 M4 RO: Stinca Soldanesti BALŢI Ribnita Glodeni Rezina 24D Singerei M2 M4 M13 Falesti M14 Telenesti M05

Iasi, RO - 24km Orhei MD: Sculeni M21 RO: Sculeni Calarasi Dubasari Ungheni Criuleni 24C Grigoriopol Iasi Straseni Nisporeni M4

ROMANIA CHIȘINAU M14 Ialoveni TIRASPOL M05

Anenii Noi M14 M4 Hincesti M3 Arad, RO - 654km Slobozia Bucharest, RO - 407km Craiova, RO - 641km Causeni Pitesti, RO - 531km MD: Leuseni Odessa, UA - 77km RO: Albita Stefan Voda MD: Palanca Cimișlia UA: Udobnoe Nistru Leova

24 Basarabeasca Dnestrovsky Liman Prut MD: Basarabeasca UA: Serpniovoe 1 MD: Tudora UA: Starokazacie Cantemir COMRAT Tvardita LEGEND Ceadir-Lunga FEZ Border pass MD: Ceadir- Lunga Airport Bucharest, RO - 255km Cahul UA: Novie Troiani Constanta, RO - 215km FEZ Subzone Craiova, RO - 481km Taraclia Sea / river port Galati, RO - 10km Pitesti, RO - 370km MD: Mirnoe Industrial Park i Route number Timisoara, RO - 697km UA: Tabachi MD: Giurgiulesti RO: Galati Bolgrad FEZ location name MD: Vulcanesti UA: Vinogradovca FEZ Otaci Business FEZ Marculesti Hub Airport (Floresti rayon) Giurgiulesti Kilia FEZ Balti Danube MD: Giurgiulești • FEZ Balti/ Subzone Straseni UA: Reni Izmail 22E • FEZ Balti/ Subzone Causeni Kilia Branch • FEZ Balti/ Subzone Orhei

• FEZ Balti/ Subzone Cahul Sulina Branch FEZ Ungheni Business Tulcea Sf. Gheorghe Branch Sulina FEZ Expo Business Chisinau FEZ Tvardita BLACK Buzau FEZ Taraclia FEZ Valcanes (Vulcanesti) Razim lake SEA FEZ Giurgiulesti Free International Port

Constanta

Istambul SUCCESS STORIES & INDUSTRIAL COMPETENCES

Mohyliv-Podolikyi

Otaci UKRAINE Ocniţa Briceni Nistru

Dondușeni Prut Edineţ Soroca

Drochia Rîșcani Florești

Costești Șoldănești BĂLŢI Glodeni

Sîngerei Rezina

Fălești Telenești

Orhei

Ungheni Călărași Strășeni Criuleni

Iasi Nisporeni CHIȘINĂU

Ialoveni Anenii Noi Hîncești

Căușeni

Nistru Cimișlia Ștefan Vodă

Leova Odessa

Basarabeasca Dnestrovsky Liman Prut Cantemir COMRAT Belgorod Tvardita Dnestrovsk

Ceadîr-Lunga

Cahul ROMANIA Taraclia

Vulcănești Bolgrad

Focsani

LEGEND Galati Kilia Shoes Glass manufacturing Water bottling Izmail Carpet Cardboard manufacturing Food products Kilia Branch Danube Braila Garment & Knit wear Metal processing Winery Furniture Gravel & stone extraction Chocolate Sulina Branch Tulcea Sulina Seat covers Energetics Bakery Sf. Gheorghe Branch BLACK Textile tapes Buzau Wires and harnesses Cigarette and tobacco Rubber & Plastic injection Ceramic tiles Dairy products Razim lake SEA Steel casting Alcohol & bioethanol Meat processing Pumps Railway Beer

Constanta Construction material Cannery Brandy production

Istambul Electronics Sugar Pharmaceuticals “Ungheni and its free economic zone, where Lear Moldova is placed since 2010, confirmed itself as a well performing and competitive plant. The geographical 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

“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

“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

“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 Moldova 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

“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 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

15 “We decide to open a new production plant in Moldova for a good strategic 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.

“In my experience, I find the local IT community, including fresh graduates and experienced managers, 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 Jetha, General Manager, Endava Moldova Delivery Unit

“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 climate and geographical conditions are factors that help us achieve our goals.” Jim Boet, Founder of Millstream Dairy

“Moldova works hard on encouraging foreign companies to review it as a possible investment option. 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 Ecaterina, Deputy Director at Pukoven

16 Invest in Moldova helps you stitutes active in the industry, as well as meetings with relevant embassies, business associations, govern- We will assist you in setting up your operations in ment officials and other authorities. Moldova. We support your project management Our team of consultants is at hand to provide you with activities from the earliest stages of your expansion the relevant background information on Moldova’s tax strategy. We provide you with the industry informa- and legal system, industry regulations, and the domes- tion you need. This includes facts about the industrial tic labor market. Invest in Moldova experts help you competences throughout Moldova’s regions, as well create the appropriate financial package for your in- as available sourcing and supply companies. vestment and put you in contact with suitable financial Foreign companies profit from our rich experience in partners. Our specialists provide you with detailed in- identifying the business locations which best meet formation about available incentives, support you with their specific investment criteria. We help turn your re- the application process, and arrange contacts with lo- quirements into concrete investment site proposals; cal developers. providing consulting services to ensure you make the All of our investor-related services are treated with the right location decision. We coordinate site visits, meet- utmost confidentiality and are provided free of charge. ings with potential partners, relevant existing investors, universities, colleges, vocational schools and other in-

STRATEGY EVALUATION DECISION & INVESTMENT

PROJECT MANAGEMENT ASSISTANCE AND PROVIDING INFORMATION

Joint project Coordination and General data and Identification of Sector-specific management support of statistics for investor sector-specific details & information assistance together negotiations feasability study investors of legislation with FEZs & IPs with local support administration authorities

LOCATION CONSULTING / SCOPING MISSION SUPPORT

Site visit Identification of organization project-specific locations Relevant site Arranging meetings Final site decision Information on presentation and suitable locations with public support Identification of preselection authorities, relevant sourcing private sector opportunities representatives

AFTERCARE / POSTINVESTMENT SUPPORT SERVICES

Facilitation and Identiﬁcation of and Connecting with communication with Supporting general information relevant recruitment, public local and Advice on investors and on relevant tax, legal, tax and other central authorities, administrative and associations in their legal and adminis- consulting as well as relevant legal issues efforts to improve trative issues companies private sector the business climate representatives The Moldovan Investment and with information relevant for Contact us: Export Promotion Organization your decision making, as well 65 Alexei Mateevici str., Chişinău, (MIEPO) is the prime source of as links to businesses and Republica Moldova, MD-2009 information and assistance for government. Our team con- Tel:+373 22 27 36 54 potential investors. sists of permanent investment Fax: +373 22 22 43 10 attraction staff, sectorial con- www.invest.gov.md, [email protected] Combining our experience, sultants, as well as regional © MIEPO 2016 we are able to provide you officers.

2000km

Sankt Petersburg Stockholm

1500km

2000km Nijnii Novgorod Copenhagen Moscow 1000km Kaluga 1500km

Minsk Tolyatti Glewice Bremen 1000km Poznan Amsterdam Wolfsburg 500km 2000km Leipzig Genk Katowice 500km 1500kmMlada Boleslav Kiev Lviv Kolin 1000km Paris Sindelﬁngen

Bratislava 500km Balti Zaporoje

Munchen Esztergom MD Gyor 500km Oradea Chisinau

Graz Pecs 1000km Timisoara Novo Mesto

Turin Pitesti 1500km

500km Craiova

Sarajevo 2000km

Pamplona 500km

Valls 1000km Istambul

Bursa Ankara

1500km

1000km

2000km 1500km

Jerusalem Cairo