MOLDOVA

Industry of Moldova: Yesterday, Today and

Tomorrow
Food processing (including sugar and
vegetable oil) is the largest domestic industry,
followed by power generation, engineering
(mostly agricultural machinery, foundry
equipment, refrigerators, freezers, and
washing machines), hosiery, shoes, and
textiles.

Being an active member of the Commonwealth of
Independent States over 20 years, the Republic of
Moldova signed bilateral free trade agreements with all
CIS member states, thus ensuring duty-free
import of Moldovan products to markets of the
Commonwealth countries.
Also, the Republic of Moldova signed bilateral
agreements on industrial cooperation with the
Russian Federation, Republic of Belarus and
Ukraine.
Moldova Textiles
The Moldovan
textile industry
represents nearly
one quarter of the
country's total
exports and has
significant
growth potential.
It includes a
number of
sectors such as
production of
textiles (knitted
articles and
carpets),
garments,
leather, leather
articles and
footwear
(including travel
articles).
Moldova Textiles
Business opportunities
Main promising subsectors:
Apparel and footwear:
establishment of Moldovan brands
and retail chains, outsourcing;
Textiles: bed linens (good supply
of cottons);
Carpets: growing demand in CIS,
good quality-price ratio especially
for the wool-made carpets, exports
have significantly increased and
now outweigh all other types of
textiles.

Strategic direction/ specific
schemes and incentives
The main orientations for the
development of the textile industry
are:
Upgrading the textile and
apparel value chain: increasing
the competitiveness in the CM
industry, developingFull-
Package services (design, fabric
sourcing, trims and logistics) and
exporting to new markets;
Attracting foreign partners to
modernise equipments and
reinforce skills in areas such as
management, branding,
merchandising and logistics.
Specific advantages in the textile
industry include the exemption
from duty and VAT for the import of
materials for processing (CM).

Natural resource potential
The main natural resource of
the Republic of Moldova is the
earth.
The northern zone, the specialization of production
and processing of sugar beets, grains, fruits,
tobacco, and is characterized by relatively high heat
treatment is not enough compared to the more
southern areas.
Central Zone specializes in the production of grapes.
A lot of shallow, well-warmed slopes Codru (forests
on the slopes) zone, protected from the north-east
winds, sod-podzolic, brown forest and gray forest
soils.
South Zone specializes in the production of grapes,
particularly red grapes, corn and sunflower.
Productive land and favorable climatic conditions give
the country the high potential for development of
highly diversified agricultural production as the main
supplier of raw materials for processing and food
industries, as well as biomass for the production of
energy from renewable sources. This regional
specialization of agricultural production, in turn,
determined the future and development of capacities
of the enterprises of processing industry.
Thus, evaluating the natural resources industry, it
should be noted that our republic has a rich potential
for various raw materials of vegetable and animal
origin, primarily for food, beverages, tobacco products,
wool, leather, oil-bearing crops and medicinal plants.

Furniture industry
Furniture industry
Formed as a regional collection of large enterprises,
specializing in the production of certain types of furniture, has
undergone a dramatic transformation. The two largest
companies within the industry furniture factories "Codru",
Chisinau and Balti, practically ceased to exist. Other
companies substantially expanded range of products, had left
earlier pledged specialization, much more has to make
furniture from natural wood, introducing new advanced
technologies and materials. With the same companies
successfully compete newly created private. The volume of
their production is already significantly higher than the
founders of the industry. They offer the market more dynamic
system of work with customers, including individual projects,
develop the manufacture of office furniture. Nevertheless, the
artistic and technical level of manufactured products still lags
far behind countries traditionally made furniture high level.
Republic of Moldova
is a member of the
following key
organisations:
United Nations
Council of Europe
Commonwealth of
Independent States
(CIS)
The International
Bank for
Reconstruction and
Development (IBRD)
The European Bank
for Reconstruction
and Development
(EBRD)
World Trade
Organisation (WTO)
Why invest in Moldova?
Favourable geographical position at the crossroads of commercial
routes
Proximity to large world markets (European Union and
Commonwealth of Independent States)
Platform for manufacturing and exporting both to CIS and to the EU
Competitive general corporate income tax (CIT) rate in the region
12%
Tax and customs framework close to the EU one
Considerable network of operational Double Tax Treaties and
Investment Protection Agreements
Market access trough 42 Free Trade Agreements including:
WTO members (worldwide)
Autonomous Trade Preferences (EU countries)
CEFTA members (most Balkan countries)
CIS members (except Tajikistan)

Why invest in Moldova?
Entrepreneurial activities under preferential
terms and conditions developed in free
economic zones (FEZ)
Well skilled / multilingual workforce
Relatively low employment costs
Favourable visa regime
Improved legal framework regulating
entrepreneurial activity
Starting a business fast and easy to handle
Investment opportunities through privatisation
of public property and public-private partnership