Transcript Title

Opportunities in Moldova
Country presentation
Wednesday, 15 July 2015
CONFIDENTIAL AND PROPRIETARY
Any use of this material without specific permission from State Chancellery of Moldova is strictly prohibited
Republica Moldova în conştiinţa publică românească
2010, Cercetare realizată de Fundația Soros Romania, programul Bridging Moldova*
Republica
Moldova este
puţin cunoscută
Graiul “mioritic”
este pe plac
Ţară cu valori
Europene
▪ 82% consideră că nu sunt
▪ 7,6% au avut o experiență
deloc sau că ar fi puțin
informaţi despre Republica
Moldova
▪ 49,1% afirmă că “le place
directă, au efectuat o vizită în
RM
▪ 2,3% au declarat că “N-am
mult” felul în care vorbesc
locuitorii din Republica Moldova
▪ 72% consideră că „Republica
Moldova este o ţară europeană
şi ar trebui să devină membră a
Uniunii Europene”
înţeles aproape nimic din ce mia spus”
▪
Topul caracteristicilor atribuite
locuitorilor din Republica Moldova
de către români se situează:
– 23% muncitori şi harnici
– 18% uniţi
– 17% toleranţi
* Studiul a fost realizat pe un eșantion de 1547 de persoane, reprezentantiv la nivelul populației adulte a României, cu o marja de eroare de +/-2,5%.
Culegerea datelor s-a făcut în perioada noiembrie-decembrie 2010.
SOURCE: Source
| 1
What is Moldova?
Moldova is a bridge between the EU markets
and the growing CIS markets
An open economy with on-going negotiations
for EU integration
Open economy
▪ Moldova is the only country with:
– EU autonomous trade agreements
– CIS countries free trade agreements
▪ International Centre for Settlement of Investment
Disputes (ICSID) member
▪ World Trade Organisation (WTO) member
Population
4 million
EU integration
Average monthly wage EUR 190
▪ No visa requirements for EU nationals
Multilingual population
▪ Ongoing negotiations on EU-Moldova
70%
Association Agreement and DCFTA
| 2
Why is Moldova an attractive destination?
1
Lowest wages in Europe for
qualified, multilingual
workforce
2
▪ Average monthly salary €190 for
▪
3
▪ Attractive corporate tax rate (0%
relatively qualified professionals
Virtually all population is
bilingual (Russian/Romanian),
with many speaking English,
French, Italian, Spanish,
German
Relatively stable
macroeconomic indicators
▪ Stabilisation of exchange rate to
Globally attractive fiscal
regime
▪
▪
4
Access to EU and CIS growth
markets (500m + 275m = 775m
customers)
▪ Moldova is the only CIS country
Euro and US-dollar
▪ IMF agreement
in 2011, expected 10% in 2012)
Extensive network of double
taxation treaties
10-year protection against any
changes in the law that
adversely affect FEZ1 residents
▪
▪
with autonomous trade
agreements with the EU and
FTAs with CIS countries
3 truck-days away to the port of
Rotterdam
International port access
1 Free Economic Zones
| 3
1
Average wage in Moldova is lower than neighbouring countries and
lower than in China, for educated, multilingual workforce
Average monthly wage, gross EUR/month
Germany
Czech Republic
Poland
Romania
China (Shanghai)
China (Zheijiang)
Ukraine
Moldova
€0
€1,000
€2,000
€3,000
SOURCE: National Bank of Moldova (2010); Chinese Government (July 16, 2010 data release)
€4,000
€5,000
| 4
1
Average wage in Moldova is lower than neighbouring countries
€2.0/h
€1.1/h
€4.0/h
€4.0/h
| 5
1
Moldova has relatively qualified labour force
Educational attainment of the population aged 25 years and older, latest year available
Education level, % of population with upper secondary education and above
100
80
60
40
SOURCE: UNESCO Institute for Statistics (April 2011)
Turkey
Indonesia
Malaysia
Mexico
Brazil
FYR
Macedonia
Greece
Croatia
Romania
Bulgaria
Austria
Republic of
Moldova
Sweden
Germany
Switzerland
0
Hungary
20
| 6
2
Globally competitive corporate tax rate in Moldova
Corporate tax rate, Percent, 2010
Germany
China
Poland
Ukraine
Romania
Bulgaria
Moldova*
0%
15%
30%
45%
* Corporate tax rate is currently 0%; expected 10-12% in 2012 and beyond
SOURCE: National Bank of Moldova (2010); OECD Tax Database (2010); World Bank – Paying Taxes (2010)
| 7
3
Stabilisation of exchange rate for the last several years
Exchange rate for the Moldovan currency
25
MDL/EUR
MDL/USD
20
15
10
5
0
Jan 08
SOURCE: National Bank of Moldova
Jul 08
Jan 09
Jul 09
Jan 10
Jul 10
Jan 11
| 8
4
Access to European and CIS markets
#m
Population, million
Trade agreements
EU
CIS
▪ Autonomous Trade
▪ Bilateral Free Trade
Preferences (ATP) in
its trade with the
European Union,
extended until 2015
(beyond likely to be
replaced by DCFTA)
275m
Agreements (FTAs)
with all CIS countries,
except Tajikistan
▪ Organisation of the
500m
▪ Central European Free
Trade Agreement
(CEFTA), 2006
Black Sea Economic
Cooperation, SECI,
GUAM and other
regional economic
initiatives
World
▪ Member of the World Trade
Organisation (WTO), 2001
▪ International Centre for Settlement of
Investment Disputes (ICSID), 2011
| 9
Where and how to invest in Moldova?
Where? Numerous investment opportunities across sectors
Agriculture, wine & food processing
▪ Free access on EU market w/o customer
duties and tariffs for most products
▪ Fertile soil for corn, fruits and vegetables
Business process outsourcing/ICT
▪ Call centres and back-offices to leverage
multi-lingual, highly educated, low wage
workforce potential
Assembly and manufacturing
▪ Assembly of items, mostly requiring labour
(e.g., car parts; electronics)
Energy
▪ Expansion of power transmission capacity
▪ Develop traditional and alternative energy
sources (e.g., small-scale biomass, wind)
Transport
▪ Roads rehabilitation and maintenance
▪ Public transport
Municipal utilities
▪ Construction/modernisation of municipal
water and sewage systems
▪ Waste management
How? A range of investment options are available
Direct investments
▪ Direct investments in production assets are
supported by the Government through tax
incentives and other facilities
▪ Free economic zones
▪ Industrial parks
Privatisation programme
▪ Plans to privatise several state-owned
companies in 2011-2012, including:
– Telecom incumbent
– Savings bank
– Airports
– Pharmaceutical company
– Electricity distribution network
– Power generation (CHPs)
– Airlines
Public Private Partnerships
▪ Public services and infrastructure are
underdeveloped, while public financial
resources for their rehabilitation and
modernisation are insufficient
▪ The Government promotes the PPP
concept
Specific investment
opportunities to be
developed jointly with
the Investment
Support Team
| 10
Free Economic Zones – Predefined attractive conditions
Why free economic zones?
▪
Exemption from VAT
▪
Exemption from customs duties and
excise duties on goods imported into
the FEZ and subsequently exported
▪
0% corporate tax rate
▪
10-year protection against adverse
changes in legislation
▪
Infrastructure in place (transport,
water, gas, electricity)
Examples:
▪ Draexlmaier Automotive
▪ Lear Corporation
▪ Danube Logistics
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Further contacts
Investment support team
Full-time Investment Support Team
Investors willing to share their experience in Moldova
Financial Institutions
Dumitru Dediu, Advisor to Prime-Minister
[email protected]
+373.79.273787 or +31.653.855.876
Doina Cebotari, Advisor to Prime-Minister
[email protected]
+373.798.487.09 or +373.681.099.74
Leadership team
Telecommunications
Industry
Vladimir Filat
Prime-Minister of the Republic of Moldova
Valeriu Lazar
Deputy prime-minister
Minister of Economy of the Republic of Moldova
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Supporting
exhibits
| 13
Industrial parks – Predefined attractive conditions
Why industrial parks?
▪
Free of charge change of the category
of land with agricultural destination
▪
Right to privatize the public property
land associated with constructions, at
the land normative price;
▪
Optimization of state controls and
minimization of bureaucratic barriers
for investors
| 14
Source countries of foreign direct investments 1994-2009
SOURCE: National Bureau of Statistics, FDI in Moldova for the period 1994-2009 (BNP Paribas Presentation, EU-Moldova
Forum, 2011)
BACKUP
| 15
Main sectors of the economy
2009, volume of production
SOURCE: NBS (2009)
| 16
Examples of major Energy Infrastructure Projects
Sector
Project
Details
Investment, €m
Gas
pipelines
▪ Gas pipeline with
▪ Build Ungheni-Iaşi gas pipeline
▪ 19
▪ Interconnection
▪ OHPL 330 kV (2nd line),
▪ 25
with Ukraine
(121.5 km)
Novodnestrovsc-Balti
Capacity 955 MVA
Romania
Power interconnection
capacity
▪ Interconnection
with Romania
(115 km)
▪ Interconnection
with Romania
(100 km)
▪ OHPL 400 kV Balti-Suceava
▪ 57
Capacity 1715 MVA
▪ OHPL 400 kV Straseni-Iasi
▪ 44
Capacity 1715 MVA
| 17