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Under the conditions of a limited domestic market, the growth and diversification of exports are the actions the Republic of Moldova should undertake to significantly improve living standards for current and future generations. And the exports, in turn, are directly influenced by the volume of investments. It is the ascertainment found in the National Strategy for Investing and Exporting Exports for the years 2016-2020 and which is being implemented by the current government with firm steps. Today our country meets the investors’ requirements by offering a set of concrete tools, competitive at the regional level and having a direct impact on improving the business climate as a whole.

International specialized charts also reflect the stability of the national economy and business-friendly legislation. The Republic of Moldova ranks 47th out of 190 countries included in the World Bank Group rankings of the business environment, ahead of neighboring countries Romania and Ukraine. According to Doing Business 2019, Moldova has reached high positions in “starting a business” (14) and “property registration” (22). Currently it only takes 1 day and 4 formalities to register a company.

Last year, our country ranked 6th in the world in terms of the number of jobs created in relation to the population, at the same time being remarked as the newest emerging investment destination, according to the Global Location Trends Report 2017.

The transformation of the Republic of Moldova into an increasingly attractive destination for foreign investors is the result of a series of reforms and government policies implemented over the last few years.

Their goal is to make the most of our country’s advantageous geographical position, as well as its access to a market of about 800 million potential consumers – the result of the conclusion of 43 free trade agreements with EU, CIS and Asian countries. The results were not long in coming: in 2017 the value of Moldovan exports amounted to US $2.5 billion, a 19% increase over the 2016 indicators. In the first nine months of 2018, this indicator has already exceeded $2 billion. Export distribution has also reconfigured: more than two-thirds of goods are exported to the European Union (70%).

A positive development was registered in the 7 Free Economic Zones. Since the beginning of 2018, sales of industrial goods, produced within the FEZs, increased by 68% compared to the previous year, reaching $384 million.

“The Government of the Republic of Moldova is making important efforts to create an attractive business climate to stimulate investments. We are aware that investments generate new economic activities and have the ultimate goal of obtaining the goods and services indispensable to a viable and prosperous economy, that is why attracting foreign capital and promoting exports is our strategic priority. By concluding new free trade agreements at regional and international level, by reducing fiscal pressure, by creating preferential conditions for residents within the FEZs, IT and Industrial Parks, we aim to make the most of the country’s potential as a natural transit point between East and West, to consolidate a growth model based on the development of goods and services exporting industries.”

In particular, the reforms implemented by the Government focused on reducing the burden of taxes and bureaucracy. Today, Moldova has one of the most competitive tax systems in the region with a Corporate Income Tax of 10% for HoReCa, 6% for residents of the Free Economic Zone and a 7% single tax for IT Park residents. When it comes to “Social Insurance Contributions”, our country has the most competitive rate in the region – 18%. The number of organs with control functions has been reduced by 70%, and economic agents need 300 less permissive documents to develop their businesses legally. Since July 2018, through the Automated Information System which operates as a “Unique Counter”, the business environment is able to get the necessary documents online.

Entrepreneurs who meet certain conditions can get subsidies for newly created jobs – the Government offers them 40,000 lei for every 100+1 new job. According to the estimates by the Ministry of Economy and Infrastructure, over the next two years Moldova will attract a net investment flow of 380 million USD and 10 thousand jobs will be created. The Moldovan Investment Agency is the governmental structure directly responsible for the implementation of the National Strategy for Investment Attraction and Export Promotion for 2016-2020.

“Due to the fact that the Government has undertaken to implement a series of ambitious reforms aimed at improving the investment climate, we have several good reasons to say that Moldova has the potential to attract but also to maintain and develop direct foreign investment. The latter would allow local companies to transition to activities generating greater added value and would provide opportunities to integrate into the value chains of the global economy. The new team of the Agency will strengthen its efforts to develop and promote a brand of Moldova as an investment destination – InvestMoldova – with distinct visual identity, supported by competitive opportunities in all sectors identified as strategic for the national economy. When using promotional tools such as economic diplomacy, B2B and B2G business missions, roundtables, forums and international exhibitions, we will focus on relevance, efficiency and results. In the long term, we aim to offer complete support to entrepreneurs who are committed to manage serious and transparent business in Moldova, to bring innovations, to create attractive jobs and to ensure competitive production.”

The unprecedented opening of the Government of Moldovan to investors will be discussed during the most important economic event in the country – “Moldova Business Week 2018” – to be held from 27 to 29 November in Chisinau.

Oer 1,500 investors, financiers, importers and exporters from the Republic of Moldova and 30 other countries will learn firsthand about the investment potential of the seven strategic sectors of the national economy: Energy, Infrastructure, Automotive and Electronics, Agriculture and Food Industry, Information and Communication Technology, Tourism and Light Industry. More than 75 speakers, including representatives of the Government of Moldova, ambassadors, representatives of foreign strategic partners, local companies, as well as special guests, will elucidate the competitive advantages of the sectors, current investment opportunities and state policies to support investment.

The event cannot be missed by those who want to internationalize their business, to be aware of new trends in approaching external partnerships, to identify new customers and markets, to adopt new models of business success and new solutions to everyday challenges.

The access to the conference is free of charge for all guests, based on prior online registration on www.mbw.md.

Particip la organizarea și asigurarea logisticii evenimentelor corporative și culturale de mai mult de 10 ani. La Moldova.org sunt responsabil de relațiile cu clienții comerciali, dar și de toate aspectele logistice și administrative ale redacției, astfel încât colegii și colegele să nu ducă lipsă de nimic în procesul de lucru.

Economy

Moldova will receive a disbursement of 36 million euros as part of the the Economic Recovery Plan

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This week, the European Commission approved the disbursement of 36 million euros in grant money for the Republic of Moldova. The announcement was made by Deputy Director-General for Neighbourhood Policy and Enlargement Negotiations at the European Commission, Katarina Mathernova, who paid an official visit to the Republic of Moldova between September 13-15, together with Managing Director for Russia, Eastern Partnership, Central Asia, Regional cooperation and OSCE, at the European External Action Service, Michael Siebert.

The EU officials had meetings with President Maia Sandu, Minister of Foreign Affairs and European Integration, Nicu Popescu, Speaker of Parliament, Igor Grosu, Prime Minister of the country, Natalia Gavrilita, as well as key representatives of Government, international financial institutions and the civil society, according to a press release issued by the Delegation of the European Union to the Republic of Moldova.

Beside such topics as the EU-Moldova relations and prospects, the priorities of the reform agenda of the new Moldovan Government, preparations for the Eastern Partnership Summit at the end of the year and the Transnistrian conflict settlement, the officials also discussed the EU assistance in support of reforms and the Economic Recovery Plan for Moldova, which was announced in June with a total EU support of 600 million euros over the next 3 years.

“The first measures under the Economic Recovery Plan will shortly materialize, with the expected disbursement of 36 million euros in grant money under budget support programmes to support the authorities’ efforts to fight against the consequences of the pandemic. Moldova can count on EU’s assistance on its path to reforms and to recovery, bringing tangible results to citizens,” Katarina Mathernova stated.

The plan is based on assistance provided by the European Union through various bilateral and regional instruments, aiming to mobilize the funds in the form of grants, loans, guarantees and macro-financial assistance.

“The Economic Recovery Plan for the Republic of Moldova involves much more, not just this financial support provided immediately. It must help digital transformation, strengthen infrastructure, energy efficiency, education and support small and medium-sized enterprises,” the EU official also said.

As Prime Minister Natalia Gavrilita informed, “The Economic Recovery Plan and the 5 flagship initiatives for Moldova in the Eastern Partnership will directly contribute to the reform and consolidation of institutions, stimulate long-term socio-economic development, bring direct benefits to citizens, and unleash new economic opportunities through promoting the green agenda and digitization. Small and medium-sized enterprises (SMEs) have been hit hard by the crisis. Promoting and diversifying access to finance and reducing collateral requirements will be essential in supporting economic operators. We are grateful to the EU partners who will launch two programs to support 50 000 independent Moldovan SMEs to adapt to the new conditions.”

President of the Republic of Moldova, Maia Sandu, welcomed the decision of the European Union to disburse about 745 million lei in grant money, as the official page of the President’s Office announced. “EU support comes after a long period of freezing of European assistance, caused by former governments. We managed to relaunch the political dialogue with the European Union and resume financial assistance. The Republic of Moldova is gradually regaining the trust of its strategic partners. This European support is also a signal of encouragement for the new Government team in its commitment to clean up the institutions, fight corruption and launch development programs in the country,” said Maia Sandu.

See also: An Economic Recovery Plan for Moldova: 600 million euros for a sustainable recovery from the COVID-19 crisis

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Economy

Romania and Moldova signed a partnership memorandum pledging to cooperate in promoting their wines

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The Chamber of Commerce and Industry of Romania (CCIR) and the National Office for Vine and Wine (NOVW) of the Republic of Moldova signed, last week, a memorandum of cooperation on organizing joint promotional activities in the markets of common interest, as the CCIR announced.

China, Japan or the USA are just some of the markets targeted by the Romanian and Moldovan institutions. The memorandum also involves advertising activities for wines from common indigenous varieties, promoting the oeno-tourist region, developing a tourist route in the two states, exchange of experience, study visits, and mutual support in identifying new export opportunities. “We are very confident that this collaboration between our organizations will lead to sustainable economic growth and a higher degree of well-being among Moldovans and Romanians,” claimed Deputy Secretary-General of CCIR, Bogdan Visan.

On the other hand, Director of the NOVW, Cristina Frolov, declared that no open competition with Romania is aimed at the governmental level of the Republic of Moldova. “This request for collaboration is a consequence of the partnership principle. Romania imports 10-12% of the wine it consumes, and we want to take more from this import quota. Every year, the Romanian market grows by approximately 2.8%, as it happened in 2020, and we are interested in taking a maximum share of this percentage of imported wines without entering into direct competition with the Romanian producer,” the Moldovan official said. She also mentioned that Moldova aims at increasing the market share of wine production by at least 50% compared to 2020, and the number of producers present on the Romanian market – by at least 40%.

Source: ccir.ro

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According to the data of the Romanian National Trade Register Office, the total value of Romania-Moldova trade was 1.7 billion euros at the end of last year and over 805 million euros at the end of May 2021. In July 2021, there were 6 522 companies from the Republic of Moldova in Romania, with a total capital value of 45.9 million euros.

The data of Moldova’s National Office of Vine and Wine showed that, in the first 7 months of 2021, the total quantity of bottled wine was about 27 million litres (registering an increase of 10% as compared to the same period last year), with a value of more than one billion lei, which is 32% more than the same period last year. Moldovan wines were awarded 956 medals at 32 international competitions in 2020.

Photo: ccir.ro

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Economy

Moldova’s hope to be a top walnut exporter and its main difficulties

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The Republic of Moldova has perfect weather conditions for growing walnut trees, that creating a great potential of walnut production and trade, especially on international markets, where the demand is way higher than the product’s supply. National and international experts believe that the country’s walnut production industry is on the verge of important transformations, which could lead to increased yields, quality and competitiveness worldwide.

According to authorities, Moldova exports 34-35 thousand tons of walnuts in shell, which is about 7% of the total export of fruit and 5% of the total export of horticultural products. The export value is assessed as being $120 million, that being 57-60% of the total fruit export value and about 50% of horticultural export value. Most of walnut crops are exported to the EU countries, such as France, Germany, the Netherlands, Romania and Austria. The country’s exports were among the world’s top 10 when it comes to the highest dollar value of the product during 2020.

Viorel Gherciu, Minister of Agriculture and Food Industry, pointed out that the production in the domestic walnut industry has increased by 55% in the last five years, which ranks Moldova among the main producers in the world.

“The biggest opportunity for this industry is that we are in the geographical proximity of the largest walnut import area in the world, which is the European Union, with almost 40% of total imports in the world. We are on the EU border, with privileged relations, with an Association Agreement. We already enjoy a good relationship in working with European importers, they trust our processors. A very close collaboration has been created and this is, in fact, the guarantee for those who invest in the area,” claimed the president of the Walnut Producers Association, Oleg Tirsina.

The data provided by the National Bureau of Statistics show that there are 34.7 thousand hectares of walnut plantations in the country. 20.90 hectares are represented by orchards. 75% of planted orchards are formed of old varieties trees. 30-35% of the exported production comes from orchards, the rest comes from individual farmers and plantations along the roads. This means that the quality of walnut production is not at its maximum potential. Developing commercial plantations through orchards modernization and extension of walnut varieties would provide double yield and better quality, experts say.

Governmental support in the form of subsidizing solutions, foreign investments and credit options are indispensable for the industry development. One of the financing options is the credit line of the European Investment Bank Project. Since 2016, 15 producers and processors of nuts, almonds and hazelnuts have benefited from these loans with the total amount of investments worth 8.7 million euros. A further extension of the project would provide another 60 million euros for the modernization of the horticultural sector in general and for harvesting organic walnuts in particular.

Photo: heymoldova.com

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