The Investment Agency is the central administrative authority under the government mandated to promote the image of the Republic of Moldova on the economic and investment dimension, being the administrator of the country brand for a good positioning on the global economic map.
The agency develops platforms and promotional tools to support the business environment in the Republic of Moldova and facilitates inter-institutional dialogue for foreign investors, by establishing collaborative partnerships with all interest groups.
Functions of the Investment Agency:
* Promoting the image of the country.
* Export promotion.
* Promoting tourism.
* Supporting investment activity and protecting investments.
* Strengthening and implementing economic diplomacy.
Further information can be accessed on the official website of the Investment Agency: http://invest.gov.md/
The Republic of Moldova is an emerging market economy in the heart of Europe, between Romania is the west and Ukraine in the east. The country is a member of the World Trade Organization since 2001; it’s the first ex-Soviet state to join this international club. Moldova also benefits from free or preferential trade with 43 countries. Among trade associations and partnerships Moldova has subscribed to, mind the most important ones:
- DCFTA - the Deep and Comprehensive Free Trade Agreement: 28 Member States
- CEFTA - the Central European Free Trade Agreement: North Macedonia, Albania, Bosnia-Herzegovina, Montenegro, Serbia, Kosovo, Moldova
- GUAM Free Trade Agreement: Georgia, Ukraine, Azerbaijan, Moldova
- BSEC - Black Sea Economic Cooperation): Albania, Azerbaijan, Georgia, Russia, Turkey, Armenia, Bulgaria, Greece, Romania, Serbia, Ukraine, Moldova
- CIS Free Trade Agreement: Russia, Belarus, Armenia, Azerbaijan, Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan
- Free Trade Agreement with Turkey
- The Republic of Moldova also benefits from the U.S. Generalized System of Preferences.
Trade between participatory countries, thanks to these commitments, is based on the following principles:
- Liberalized exchanges of goods and services
- Free export of labor
- Lower duties
- None or low non-tariff or technical barriers
- Reformation and modernization of economies
- Harmonization of Moldova’s legislation with the legislation and regulations enforced in the EU.
These economic-trade arrangements allow Moldova resident companies to access markets that bring together more than 880 million potential customers. The Republic of Moldova is also negotiating with the People’s Republic of China and EFTA countries (Iceland, Liechtenstein, Norway and Switzerland) to sign similar accords.
In the 2020 World Economic Freedom 2020 index Moldova is secured the 87th spot, with 62.0 points, ahead of Greece (100),Russia (94), China (103), and Ukraine(134). Compared with the 2019 report, Moldova improved its score by 2.9 points. In the 2020 Ease of Doing Business report Moldova earned 74.4 points and filled in position 48, ahead of its neighbours Romania 73.3 and Ukraine 70.2, which ranked 55th and 64th respectively. Moldova has also outperformed such countries as Hungary, Italy, Luxembourg, and Bulgaria. Last year Moldova made dealing with construction permits easier having a leap of 13 positions at this indicator.
Also, the Global Competitiveness Report for 2019 awarded Moldova 56.7 points and the 86th place in a list of 141 surveyed countries. The country advanced two positions in the general standing. In 2017 it showed the strongest evolution in the Euro- Asian region. The main economic sectors are agriculture - with a strong focus on fresh produce; wine-making - with internationally acclaimed brands; light industry - especially textiles and footwear; meat and dairy; constructions; cosmetics; automotive. Services account for more than 60% of all. Data for 2019 show that exports of IT services increased by about a third compared to the previous year - up to 198 million US dollars, exceeding sales abroad of alcoholic beverages and wines. The IT sector’s share is already comparable to the entire agricultural sector of the country, which continues to play an important role in the economy. Moldova’s growth in 2019 was 3.6% and its nominal GDP reached almost 11.7 billion dollars or around 3,300 USD per capita. Its currency reserves amounted to over 2.9 billion USD at the end of the same year.
Moldovan exports in 2019 amounted for almost 2.78 billion US dollars, which is a 7.1% boost compared with the previous year. The European Union is the main destination for exports (65.9%) and source of imports (49.5%) for Moldova,
Foreign Direct Investment
In 2019, according to the World Bank, net foreign direct investments in Moldova’s economy amounted to 593 million US dollars, which is almost twice as much as in the previous year and an absolute record for the past decade. FDIs increased by 9.4% in comparison with year 2018.
Foreign investors are welcome in any sector of Moldova. And yet, for their convenience, the country has created many outstanding platforms where incentives are abundant and working conditions are better. Free Economic Zones and Industrial Parks are the most common platforms that attract both foreign and local investors. There are seven Free Economic Zones (FEZs) - which contain 17 sub-zones - and eight Industrial Parks (IPs) in Moldova. Last year the Government decided to open a special high technology park for the IT industry in the capital - which is known as Moldova IT Park.
FEZ and IP residents enjoy a special treatment from the authorities, such as zero to low VAT; long-term guarantees on legislative changes; round o’clock customs clearance; excellent road and utility infrastructure; EU border green lane; low cost of rental or sale price for land; minimal inspections.
Moldova’s FEZs and IPs accommodate the largest part of the country’s industry and account for the largest share of exports.
Moldova IT Park
"Moldova IT Park" is the main focal point of access to best services and incentives in the IT sector, which has proven its uniqueness by being a virtual structure which operates in a multistakeholder governance model. In 2020 - more than 500 residents from 30 countries.
Free Economic Zones
FEZ are excellent platforms suitable to export-oriented manufacturing companies, which intend to benefit from a preferential customs and tax regime. There are 7 FEZ & 34 subzones in Moldova.
Industrial parks aim for industrial production, services provision, applied scientific research and/or technological development. There are 8 industrial Parks in Moldova.
Industrial Multifunctional Platforms
With a total area of about 300 hectares, the IPMs seek to become real industrial HUBs, centres of interaction between suppliers and producers, connecting Moldova tot the international economic circuit.
For detailed information please visit the following address: https://invest.gov.md/en/