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Quarterly Report MOLDOVA COMPETITIVENESS PROJECT QUARTERLY PROGRESS REPORT OCTOBER 1 – DECEMBER 31, 2019 QUARTERLY REPORT 1 YEAR 5 QUARTER 1 (FY2020 Q1) SUBMITTED: JANUARY 17, 2020 RESUBMITTED: FEBRUARY 24, 2020 Prime Contractor: Chemonics International Inc. www.chemonics.com/ Partners: J. E. Austin Associates, Inc. www.jeaustin.com Bhavana World Project www.bhavanaworldproject.com Contract No.: AID-117-C-15-00001 PHOTO CAPTION: Owners of "Casa din Lunca" rural guesthouse and the diplomatic community decorate the Christmas tree. PHOTO CREDIT: MCP DISCLAIMER This assistance is made possible by the support of the American, Swedish, and British people through the United States Agency for International Development (USAID), the Government of Sweden, and UK aid. The contents are the responsibility of the creator and do not necessarily reflect the views of USAID, the American, Swedish, and UK Governments. TABLE OF CONTENTS ACRONYM LIST ...................................................................................................................................... 7 PROJECT MAPPING ............................................................................................................................... 9 EXECUTIVE SUMMARY ...................................................................................................................... 10 SECTION I .............................................................................................................................................. 14 PROJECT TECHNICAL INTERVENTIONS DURING FY20 Q1 ...................................................... 14 WINEGROWING INDUSTRY ................................................................................................................. 14 OBJECTIVE 1: INCREASED PRODUCTIVITY AND QUALITY (BETTER WORKFORCE AND ADOPTED INNOVATION) .............................................................................................................................................. 14 PROGRAM 1. Upgrading quality and driving innovation in viticulture and winemaking ....................................... 14 Activity 1.1 ASW (Association of Small Winemakers) Mentorship Program - support in emergence and development of small wine producers ............................................................................................................. 14 Activity 1.2. Strengthen and expand PQUP (Product Quality Upgrading Program) ............................................. 16 PROGRAM 2. Building knowledge for future growth ........................................................................................ 17 Activity 2.1 Strengthen the WoM Academy to deliver workforce improvement skills .......................................... 17 PROGRAM 3. Innovations and precision viticulture technologies to face climate change and ensure high quality grapes ........................................................................................................................................................... 18 Activity 3.1. “Best Grapes” and “FlaveDor” piloting innovations in vineyard management and grape quality improvement ................................................................................................................................................. 18 OBJECTIVE 2. EXPANDED MARKET LINKAGES ............................................................................................ 19 PROGRAM 4. Wine of Moldova international promotion program support ....................................................... 19 Activity 4.1. Build WoM brand equity and foster business linkages ................................................................... 19 Activity 4.2. Increased wine sales on target markets through firm-level marketing support through the Export Support Program (ESP) .................................................................................................................................. 22 PROGRAM 5. Enhance wine culture and grow a mature local market .............................................................. 25 Activity 5.1. Develop the wine culture, quality and the sommelier profession ..................................................... 25 OBJECTIVE 3: IMPROVED SECTOR-ENABLING ENVIRONMENT AND INCREASED CAPACITY ....................... 27 PROGRAM 6. Policy Upgrades and Legal Regulatory Reforms in the Wine Industry .......................................... 27 Activity 6.1. Support ONVV to continue policy, legal and regulatory reforms ..................................................... 27 Activity 6.2. Finalize and promote with the government of Moldova the WoM 2030 strategy to guide long-term industry competitiveness ................................................................................................................................ 27 Activity 6.3. Develop and strengthen the PGI wine associations ........................................................................ 28 TOURISM INDUSTRY ............................................................................................................................... 30 OBJECTIVE 1: INCREASED PRODUCTIVITY AND QUALITY (BETTER WORKFORCE AND ADOPTED INNOVATION) .............................................................................................................................................. 30 PROGRAM 1. Start-up Tourism Moldova: product development, service quality upgrading and tourism offer diversification ................................................................................................................................................ 30 Activity 1.1. Strengthen the Wine-Up Tourism Accelerator Program ................................................................. 30 Activity 1.2. Support the Hospitality+ Moldova program: improving tourism hospitality infrastructure ................ 32 Activity 1.3. Support the Go-Regional Tourism Development Program: emerging sustainable tourism destinations in Moldova’s key regions ................................................................................................................................ 34 Activity 1.4. Start-up Tourism program for inbound tour operators and tourist guides ....................................... 35 OBJECTIVE 2: EXPANDED MARKET LINKAGES ............................................................................................ 36 PROGRAM 2: “Tree of Life” Marketing Program: Building Awareness for Moldova Internationally ..................... 36 Activity 2.1. Build international awareness for Moldova’s Tourism .................................................................... 36 PROGRAM 3. Foster business linkages and expand target markets .................................................................. 39 Activity 3.1. Enhanced country presentation at international tourism trade events ............................................. 39 Activity 3.2. Market intelligence to enhance sales competencies ....................................................................... 41 OBJECTIVE 3: IMPROVED SECTOR-ENABLING ENVIRONMENT AND INCREASED CAPACITY ....................... 41 PROGRAM 4. Sustainable Tourism Policies and Friendly Business Environment ................................................. 41 Activity 4.1. Rethink the tourism industry: reformed policies and regulation to ensure sustainable development .. 41 PROGRAM 5. Strengthen public-private dialogue and industry associations ....................................................... 43 Activity 5.1. Strengthen ANTRIM’s role ........................................................................................................... 43 LIGHT INDUSTRY ..................................................................................................................................... 44 OBJECTIVE 1: INCREASED PRODUCTIVITY AND QUALITY (BETTER WORKFORCE AND ADOPTED INNOVATION) .............................................................................................................................................. 44 PROGRAM 1. Strengthening ZIPhouse as the flagship institution in workforce development and fashion startup acceleration ................................................................................................................................................... 44 ACTIVITY 1. 1. Solidify ZIPhouse Institutional Capacity .................................................................................... 44 ACTIVITY 1.2. Boosting Creativity, Entrepreneurship and Building Community .................................................. 45 Activity 1.3 Developing Industry Skills through Advanced Technical Education and Training ............................... 46 PROGRAM 2. SMART (Streamline Manufacturing, Accountability, Resource efficiency, and Transparency) Factory program ........................................................................................................................................................ 47 ACTIVITY 2.1 Implement Complex Innovative Methods to Streamline Manufacturing and Productivity Growth ... 47 Activity 2.2 Create Brands and Products Aligned with Fashion Trends ............................................................... 49 OBJECTIVE 2: EXPANDED MARKET LINKAGES ............................................................................................ 51 PROGRAM 3. Expanding Market Opportunities .............................................................................................. 51 Activity 3.1 Reposition Moldova as a Full Product Manufacturing Partner
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