Moldova: Investing

FDI in Figures

FDI flows have been increasing and peaked in 2007 with $532 million. This represents an increase of almost 50% compared to 2006 when flows were $370 million.

In 2009 and 2010, the international situation slowed the flow of investment into the country. Moreover, maintaining a relatively strong currency relative to regional currencies that have experienced clear devaluations, has increased the cost of labor.

In 2009, the economic crisis and political instability led to a decline in investment flows, bringing the stock of FDI at USD 2.65 billion on 1 January 2010. In 2010, the net flow of FDI into Moldova increased by 55.6%, from 127.84 million USD in 2009 to 198.9 million USD in 2010. FDI stock as of 1 January 2011 amounted to 2.84 billion USD.

In general, the economic and political environment is not conducive to attracting investors. Political instability and corruption and weaknesses of the administration are all barriers to investors which the reforms are struggling to eliminate. The country is also very dependent on Russian energy.
 
Some projects suggest a brighter future. The Spanish company Gas Natural Fenosa, the main energy distributor in Moldova, is for example preparing to build the first of a series of wind farms. The project should start in 2012.

Russia is the main Foreign Investor in Moldova, followed by France.

Why You Should Choose to Invest in Moldova

Strong Points

Moldova's main strong points are:
- A strategic location between Europe and Asia, an area that is booming;
- Cheap and skilled labor;
- Access to the black sea;
- A very low cost of living;
- Privatizations of a number of companies underway; and
- Investor-friendly taxes and duties.

Weak Points

Moldova still has to make significant progress to raise itself to the level of European economies. The main challenges that the country will have to take on are:
- The legacy of the communist era, namely red tape and corruption;
- Problems of respecting standards and intellectual property;
- A significant Russian influence;
- Infrastructures in bad shape; and
- The low purchasing power.

Government Measures to Motivate or Restrict FDI

The government established a number of mesures in order to promote investments in the country. Companies investing USD 250,000 can benefit from tax deduction for the first 5 years. Income tax was also lowered. The government also promoted equality amongst international and local investors and the fact that there is no limit to capital invested. These factors demonstrate the economy's liberalization.
For more information, refer to the Invest in Moldova website.

Bilateral Investment Conventions Signed By Moldova

The Republic of Moldova is a member of the WTO and is a signatory to a number of treaties.
For more information, refer to the Invest In Moldova website.

Procedures Relative to Foreign Investment

Freedom of Establishment

The country is open to investors but remains a communist country therefore under State control

Acquisition of Holdings

For more information, refer to the Invest In Moldova website.

Obligation to Declare

For more information, refer to the Invest In Moldova website.

Competent Organization For the Declaration

Ministry of Economy and Commerce of the Republic of Moldova

Requests For Specific Authorizations

For more information, refer to the Invest In Moldova website.

Investment Opportunities

Investment Aid Agency

Invest in Moldova

Tenders, Projects and Public Procurement

Tenders Info, Tenders in Moldova
Globaltenders, Tenders & Projects from Moldova
DgMarket, Tenders Worldwide

Other Useful Resources

Invest in Moldova: Organisation to help investment in the Republic of Moldova

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