About Moldova

Country Overview

Favourable geographical position at the crossroads of commercial routes

Tax and customs framework similar to that of the EU

Platform for manufacturing and exporting both to the CIS and to the EU

Competitive general corporate income tax rate in the region – 12%

Proximity to large world markets (European Union and Commonwealth of Independent States)

Considerable network of operational Double Tax Treaties and Investment Protection Agreements

Market access through three Free Trade Agreements including:
1. WTO members (worldwide)
2. Autonomous Trade Preferences (EU countries)
3. Deep and Comprehensive Free Trade Area (DCFTA)

Entrepreneurial activities under preferential terms and conditions developed in free economic zones

CIS members (with certain exceptions)

CEFTA members (most Balkan countries)

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

Economic Overview

In 2014, Gross Domestic Product (GDP) totalled MDL 111,757 million (EUR 5,998 million), with an increase of 4.6% (in compared prices) from the level in 2013.



Production of goods in 2014 contributed to increasing the GDP with around 26.9%, while services contributed with around 59.4% (i.e. the main branches being transport and communication services, wholesale and retail trade services, construction activities, etc.).

Evolution of foreign trade in 2014 was influenced by the external factors, especially geopolitical situation in the region, the price decline in global food and energy sectors, trade restrictions imposed by the Russian Federation and the essential national currency depreciation.

Therefore, the export volume for 2014 amounted to USD 2,339 million, with a decrease of 3.7% from the 2013 level. At the same time, imports in 2014 equalled USD 5,317 million, with a decrease of 3.2% from the 2013 level.

In 2014, exports of goods to EU countries totalled USD 1,246 million (i.e. 9.6% more than in 2013), accounting for 53.3% of total exports (compared to 46.8% in 2013). Export of domestic goods constituted USD 1,529.6 million (65.4% of total exports), registering a decrease of 5.6% compared to 2013. Exports of goods to CIS countries totalled USD 735.6 million, accounting for 31.4% of total exports, with a decrease of 20.3% compared with 2013.

Import volume has increased four times in the last 10 years, while in 2013 it registered an increase of 3.2% compared with 2013 and constituted USD 5,317 million. Moldova had a negative trade balance in 2014 amounting to USD 2,977.5 million (lower than in 2013 with 86.6 USD million or -2.8%).

The annual inflation rate in Moldova was 4.7% for 2014.

The unemployment rate was 3.9% in 2014 (a decrease of 5.1% from 2013). The total amount of unemployed people includes:

  • 60.8% men and 39.2% women;
  • 61.9% urban population and 38.1% rural population.

Central and Territorial Organization

The Republic of Moldova is a small, densely populated country, which gained its independence and became a sovereign state on 27 August 1991.

It is situated in South Eastern Europe, north of the Balkan Peninsula. The total area is 33,843 square km. The distance between the North and the South extremities is 350 km, and from East to West is 150 km. Moldova shares borders with Romania and Ukraine.

Under the Constitution adopted in July 1994, Moldova is a democratic republic based on the rule of law. The Constitution separates the state powers into three branches – the legislative, the executive and the judicial branches.

The legislative power belongs to the Parliament of the Republic of Moldova, elected for four-year terms. The Parliament is unicameral. It consists of 101 deputies – representatives of parties and electoral blocks, as well as independent candidates.

The executive power is exercised by the Government. Its role is to carry out the domestic and foreign policy of the state, as well as to control the activity of public administration. The Government consists of a Prime Minister, deputy prime ministers, ministers and other members. The President of the Republic of Moldova designates a candidate for Prime Minister through consultation with parliamentary factions.

The President of the Republic of Moldova is legally distanced from all branches of power. Nevertheless he / she is mostly allied to the executive branch. The President is elected by Parliament for a four-year term.

The judicial branch encompasses the Supreme Court of Justice, Courts of Appeal and ordinary courts. The Supreme Court of Justice is the highest court and has the power to review decisions made by lower courts.

Municipalities

Chisinau
Balti
Bender

Autonomous Regions

Gagauzia
Transnistria

Districts
  1. Anenii Noi
  2. Basarabeasca
  3. Briceni
  4. Cahul
  5. Cantemir
  6. Calarasi
  7. Causeni
  8. Cimislia
  9. Criuleni
  10. Donduseni
  11. Drochia
  12. Dubasari
  13. Edinet
  14. Falesti
  15. Floresti
  16. Glodeni
 
  1. Hincesti
  2. Ialoveni
  3. Leova
  4. Nisporeni
  5. Ocnita
  6. Orhei
  7. Rezina
  8. Riscani
  9. Singerei
  10. Soroca
  11. Straseni
  12. Soldanesti
  13. Stefan Voda
  14. Taraclia
  15. Telenesti
  16. Ungheni

The Constitutional Court of Moldova is the sole authority of constitutional jurisdiction in the Republic of Moldova. The six justices are appointed for six-year terms. The Parliament, the Government and the Superior Counsel of Magistracy appoint two justices each.

The Constitution recognises the principle of local autonomy and states that all local issues be resolved and managed by local authorities, which operate independently pursuant to law. Each level of public administration has its own and delegated functions.

The basic functions of local government include the organisation of social services, welfare services for the elderly, housing and utilities, water supply and sewerage, the provision of public services, physical planning, public transport, and the maintenance of local roads and streets.

Moldova is currently divided into 37 first-tier units, including 32 districts (in Romanian - "raioane"), three municipalities (Chişinău, Bălţi, Bender), one autonomous territorial unit (Gagauzia) and one territorial unit (Transnistria). The capital and largest city is Chisinau.

Moldova has 66 cities (towns), including the five with municipality status, and 917 communes. Some other 699 villages are too small to have separate administration, so are administratively part of either cities (40 of them) or communes (659). This makes for a total of 1,681 localities in Moldova.

The Moldovan Investment and Export Promotion Organization (MIEPO)

Is the prime source of information and assistance for potential investors. 
We provide tailored services for potential investors throughout the investment decision process. We also support existing investors in extending their operations.
Our team consists of permanent investment attraction staff, sectorial consultants, as well as regional officers.
Combining our experience, we are able to provide you with information relevant for your decision making, as well as links to businesses and government.

Адрес: ул. Aлексей Матеевичи 65, Кишинев, Республика Молдова
Тел:+373 22 27 36 54 Факс: +373 22 22 43 10