About Moldova. Romanian, Russian and English (widely used)

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Charity Simon
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3 About Moldova Official English country name Capital and the largest city Languages Area Population National currency Republic of Moldova Chisinau ( persons) Romanian, Russian and English (widely used) km persons Moldovan Leu Religion Location Famous for Christian orthodox (93,3%), Baptist (1,7%), Judaism (1,5%), other (0,5%), Eastern Europe, located between Romania, to the west and Ukraine to the north, east and south. wine, folk art, gastronomy, local communities

General information about Moldova Population The Republic of Moldova has a population of 3 560 430 and is populated by different ethnic groups.

4 General information about Moldova Population The Republic of Moldova has a population of and is populated by different ethnic groups. A breakdown of major ethnic groups is as follows: Moldovans/Romanians 75,8 %, Ukrainians - 8,4 %, Russians 5,9 %, others (Gagauzians, Bulgarians, Gipsy, Jews, etc.). Currency The national currency - the Moldovan Leu, was introduced on the 29th of November The National Bank of Moldova was established in The current banknote series was introduced by NBM between 1993 and Banknotes: One lei; five lei; ten lei; twenty lei; fifty lei; one hundred lei; two hundred lei, five hundred lei, one thousand lei. Coins: 1 ban; 5 bani; 10 bani; 25 bani; 50 bani. (1 Lei = 100 bani)

5 A few history facts: The history of Moldova can be traced to the 1350s, when the Principality of Moldavia, the medieval precursor of modern Moldova and Romania, was founded Moldavia became a vassal of the Ottoman Empire, to which it owed a percentage of the internal revenue, that in time rose to 10%. Moldavia was forbidden to have foreign relations to the detriment of the Ottoman Empire but was allowed internal autonomy, including sole authority over foreign trade. Turks were legally forbidden to own land or build religious establishments in Moldavia Bessarabia briefly became independent as the Moldavian Democratic Republic and united with Romania 1924 Soviet Government created the Moldavian Autonomous Soviet Socialist Republic (Moldavian ASSR) on the territory of Ukrainian SSR. June Soviet troops crossed the Dniester and occupied Bessarabia, Northern Bukovina, and the Hertza region August Moldova proclaimed its independence

6 Tighina fortress At the end of XV century Stephan the Great built in Tighina a small fortification to prevent the locality from Tatars penetration. In the place of the old Moldovan fortification osmans made a stone stronghold that was named Bender. Around the fortress there was dug a deep and large ditch, paved with stone. That new building included not only the above-mentioned fortress, but also some important edifices of the town. In 1770 Tighina was taken by storm by Russian army. In the next Russian-Turkish wars osmans ceded it without battle.

7 Soroca fortress Soroca fortress is one of the most outstanding tourist attractions in the Republic of Moldova. It is located in a small Moldovan town (bearing the same name) close to the Ukrainian border. The famous landmark of Soroca town is a wellpreserved Middle Age fortress with stout stone walls right down by the riverside, intended to daunt unwelcome guests. It used to be part of a rather complex and important defensive system, which comprised 4 fortresses along the Nistru (Dniester) river in the East, 2 on the bank of Danube in the South, and three more to protect the North.

8 The Church Adormirea Maicii Domnului It was built in XVII-XVIII c. Location: Mateevici street, Town of Causeni.

9 Moldova-Belgium Relations 11 March 1992 Diplomatic relations Established June 2013 Meeting between Foreign Minister Lencaand Minister Didier Reynders 5 September 2013 The visit of the 3 ministers of foreign affairs from Benelux countries to Chisinau. Minister Reynders participated in the opening ceremony of the Moldovan- Belgian Chamber of Commerce and Industry. This Chamber will become an efficient platform for supporting new investors and will lead to the increasing of commercial exchanges. Belgium supports European aspirations of Moldova At present, in the Republic of Moldova, there are 44 Moldovan-Belgian registered companies, which operate in various areas of economy: meat processing, wood processing, pastry production, textile, IT services, wellness installations

10 Moldova is a bridge between the markets in EU and FSU Access to EU and CIS markets (500 mill mill =775 mill) It has an open economy with on-going negotiations for EU integration - Member of World Trade Organization as of Investment Protection Treaties with multiple countries - Moldova is the only CIS country with autonomous agreements with the EU and free trade agreements with CIS countries EU Integration - No visa requirments for EU nationals - Autonomus Trade Preferences in its trade with the EU, extended until 2015 Lowest wages in Europe for qualified, multilingual workforce - Relatively stable macroeconomic indicators (stable exchange rate to Euro and US-dollar Globally atractive fiscal regime - attractive corporate tax rate (0% in 2011, 10 % in 2012)

11 Main reasons to choose Moldova Proximity and easy access to major Markets Moldova s trade is largely liberalized to both the European Union and the Commonwealth of Independent States. Most major destinations in these markets can be reached within 2 truck days. An investment friendly environment A continuous increase in the Doing Business ranking, registering a jump of 20 positions from Free Economic Zones(FEZ) FEZ offer further incentives including a lower rate of corporate tax of 6%. They represent excellent manufacturing platforms offering also state guarantees and administrative support. The workforce is skilled and multilingual Labor costs are the lowest in the region, creating a competitive business environment. Tolerant andsafe country

12 Some Rankings UNDP Human Development index (2011): RO: 50; BG: 55; SR: 59; TR: 92; MD 111 WEF competitiveness index (2012): TR: 43; BG: 62; RO: 77; MD: 87; SR: 95; World Bank Doing Business ranking (2012): BG: 66; TR: 71; RO: 72; SR: 86; MD: 83 Transparency international index (2012): TR: 54; RO: 66; BG: 75; SR: 80; MD: 94

13 There are 89 states that have placed their investments in the RM, including all of the EU member states. RM has signed 39 agreements regarding the promotion and mutual protection of investments, as well as 45 Agreements for avoiding double taxation. The legislative framework between the RM and Belgium is a very extensive one, having signed 29 treaties in the area of labor, promotion and mutual protection of investments, road transportation, education and culture. Investments come from many regions in the world. We are proud to host prime examples of foreign direct investors,such as Lear Corporation, DräxlmaierAG, SüdzuckerAG, Endava, Gas Natural Fenosa, LaFarge, and many others

14 Trade regime of the Republic of Moldova Export and import activities are fully liberalized, without some other quantitative restrictions; There is not a custom tariffs for the exported goods and services; Moldova benefits from Autonomous Trade Preferences in the bilateral trade with EU from January 2008; Moldova isaparty to different international and regional agreements which facilitate the trade between our major commercial partners. (Ex. CEFTA agreement, CIS agreements, ATP with EU)

15 Openness to foreign investment: The Government provides equal rights for all investors; 89 states have invested in Moldova, including all EU member-states; The amount of capital investment of the EU states is 64% of total FDI Fiscal incentives A. Incentives when starting a business VAT refund for capital expenses on long-term investments, except for housing and vehicles (not applicable in Chisinau and Balti) VAT and customs tax exemption for assets to be included in the share capital of the company Benefits when operating 12% Corporate Income Tax since 2012, with incentives for investors Double Taxation Avoidance Agreements (DTAA ) with 45 countries Corporate Income Tax in the Region Romania - 16% flat rate Ukraine - 30% for non-residents Bulgaria 10% VAT reimbursement on export activities; 12% corporate income tax 2012;

16 Tax exemptions The zero customs duties for import of raw materials for light industry (the law About custom duties 1380-XIII from ) VAT exemptionof tangible assets following to be included in theauthorized capital (art.103, p.23), of The Tax Code 1163-XIII from ) VATat zero rate -services provided by enterprisesof light industry sector on the territory of the Republic of Moldova(art.104, g), of The Tax Code 1163-XIII from ) VAT exemptionon raw material (art.103, p. (3), of The Tax Code 1163-XIII from )) VAT exemption onthe supply of goodsand servicesunder a lease agreement (art. 103, p.231 of The Tax Code 1163-XIII from ) Exemption fromvat payment andfromcustoms dutieson raw materials and components suppliedon base of the industrial cooperation (agreementwith the CIS countries onindustrial cooperation)

17 Autonomous Trade Preferences Grant the right of duty-free export of the Moldavian goods in the countries of the European Union and are applied to Moldova since March, 1st, 2008 Performance of 3 basic conditions is necessary: The goods should be made in Moldova The goods should be delivered directly from Moldova in the countries of the European Union The goods should have the certificate on origin EUR 1

18 What do we export? Wines and spirits; Fruits; Vegetables; Processed food. What means agri-food sector for Moldova Agri-food sector in GDP 15 %; Export of the agri-food products consists about 50 % from the total export; Population involved in agrifood sector 33%. Export of the alcoholic products About 95% of the alcoholic products are exported to foreign markets. Alcoholic products are exported to around 55 countries Main markets: Commonwealth of Independent States (CIS) Russian Federation 39,7% Belorussia 32,6 % Ukraine 11,7 % Kazahstan 11,4 % European Union (EU) Poland 38,3% Germany 19,1 % Czech Republic 14,2 % Romania 12,6 % Latvia 3,2 % UK 2,0 %. Other countries : US 14,2 % ; Israel 51,4 %

19 Giurgiulesti The Giurgiulesti is in the southernmost point of Moldova, at the confluence of the river Prut with the Danube, on the border with Romania and Ukraine. The commune consists of one village, Giurgiulesti. Moldova has access to the Danube for about 480 meters (1,570 ft), and Giurgiulesti is the only Moldovan port on the Danube. Opening the port created preconditions for development of naval and maritime tourism.

Priorities of the Government of the Republic of Moldova in the area of attracting investments and promoting exports

Ministry of Economy and Infrastructure of the Republic of Moldova Priorities of the Government of the Republic of Moldova in the area of attracting investments and promoting exports THE REPUBLIC OF MOLDOVA