MOLDOVA COMPETITIVENESS PROJECT QUARTERLY PROGRESS REPORT APRIL 1 – JUNE 30, 2021 QUARTERLY REPORT YEAR SIX QUARTER THREE (FY2021 Q3) SUBMITTED: JULY 3, 2021 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 CAPTION: MoU signing ceremony for Supporting Connectivity and Use of Digital Technologies in Moldovan K12 schools. CREDIT: Moldcell 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), Sweden and the UK. The contents are the responsibility of the creator and do not necessarily reflect the views of USAID, the American, Swedish, and UK Governments. 2 TABLE OF CONTENTS ACRONYM LIST .......................................................................................................................................... 6 EXECUTIVE SUMMARY ............................................................................................................................ 8 PROJECT MAPPING ................................................................................................................................. 13 SECTION I .................................................................................................................................................. 14 PROJECT TECHNICAL INTERVENTIONS DURING FY21 Q3 ...................................................... 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 and innovation for future growth ................................................................. 16 Activity 2.1. Build upon professional development programs to deliver workforce improvement skills.................. 16 OBJECTIVE 2. EXPANDED MARKET LINKAGES ............................................................................................ 18 PROGRAM 3. WoM International Promotion Program Support ........................................................................ 18 Activity 3.1. Build WoM brand equity and foster business linkages ................................................................... 18 OBJECTIVE 3: IMPROVED SECTOR-ENABLING ENVIRONMENT AND INCREASED CAPACITY ....................... 21 PROGRAM 4. Support policy upgrades and regulatory reforms in the wine industry .......................................... 21 Activity 4.1. Support wine industry policy upgrades, legal and regulatory reforms and institutional strengthening sustainable development ................................................................................................................................ 21 TOURISM INDUSTRY ............................................................................................................................... 23 OBJECTIVE 1: INCREASED PRODUCTIVITY AND QUALITY (BETTER WORKFORCE AND ADOPTED INNOVATION) .............................................................................................................................................. 23 PROGRAM 1. Start-up tourism Moldova: product development, service quality upgrading and tourism offer diversification ................................................................................................................................................ 23 Activity 1.1. Strengthen the tourism product development and improve tourism hospitality infrastructure ........... 23 OBJECTIVE 2: EXPANDED MARKET LINKAGES ............................................................................................ 25 PROGRAM 2. Tree of Life Marketing Program: building awareness for Moldova internationally ......................... 25 Activity 2.1. Build international awareness for Moldova’s Tourism .................................................................... 26 OBJECTIVE 3: IMPROVED SECTOR-ENABLING ENVIRONMENT AND INCREASED CAPACITY ....................... 31 PROGRAM 3. Sustainable tourism policies and friendly business environment ................................................... 31 Activity 3.1. Rethink the tourism industry: reformed policies and regulation to ensure sustainable development .. 33 INFORMATION TECHNOLOGY, ENGINEERING AND CREATIVE SERVICES ....................... 34 OBJECTIVE 1: INCREASED PRODUCTIVITY AND QUALITY (BETTER WORKFORCE AND ADOPTED INNOVATION) .............................................................................................................................................. 34 PROGRAM 1. Promoting STEAM education and careers .................................................................................. 34 Activity 1.1. Continue supporting the Future Classroom Lab (FCL) concept in Moldovan schools and NCDIE Center (ongoing) ....................................................................................................................................................... 34 Activity 1.2. Continuous support to the educational Robotics program .............................................................. 37 Activity 1.3. Support digital skills building in VET institutions teachers ............................................................... 37 PROGRAM 2. Centers of Excellence development and support ........................................................................ 38 Activity 2.1. Strengthen the Artcor Creative Industries Center ........................................................................... 38 Activity 2.2. Establish the Mediacor Digital Center ........................................................................................... 39 Activity 2.3. Support the establishment of the Balti Innovation Center .............................................................. 40 3 Activity 2.4. Strengthen the FabLab network ................................................................................................... 40 Activity 2.5 Support the CIRCLE Laboratory Cluster at TUM ............................................................................ 41 Activity 2.6. Facilitate communications and event management for Centers of Excellence .................................. 41 OBJECTIVE 2: EXPANDED MARKET LINKAGES ............................................................................................ 42 PROGRAM 3. Grow Moldova as an IT and creative services industry destination ............................................... 42 Activity 3.1. Support a bridge program for Creative Services Industry ............................................................... 42 OBJECTIVE 3: IMPROVED SECTOR-ENABLING ENVIRONMENT AND INCREASED CAPACITY ....................... 44 PROGRAM 4. Legislative and capacity building support for IT and creative services industry .............................. 44 Activity 4.1. Support legal efforts and capacity building activities for new institutions ......................................... 44 LIGHT INDUSTRY ..................................................................................................................................... 46 OBJECTIVE 1: INCREASED PRODUCTIVITY AND QUALITY (BETTER WORKFORCE AND ADOPTED INNOVATION) .............................................................................................................................................. 46 PROGRAM 1. Continue strengthening ZIPhouse as the flagship institution in workforce development and fashion startup acceleration ....................................................................................................................................... 46 Activity 1.1. Solidify ZIPhouse institutional capacity .......................................................................................... 46 Activity 1.2. Boosting creativity, entrepreneurship and building community ........................................................ 47 Activity 1.3. Developing industry skills through advanced technical education and training ................................. 48 PROGRAM 2. Strengthen the SMART (Streamline Manufacturing, Accountability, Resource Efficiency, and Transparency) Factory Program ...................................................................................................................... 50 Activity 2.1. Implement complex innovative methods to streamline manufacturing and productivity growth ........ 50 Activity 2.2. Create brands and products aligned with fashion trends ................................................................ 51 OBJECTIVE 2: EXPANDED MARKET LINKAGES ............................................................................................ 52 PROGRAM 3. Expanding market opportunities ..............................................................................................