Moldova - Country Commercial Guide
Market Challenges

Learn about barriers to market entry and local requirements, i.e., things to be aware of when entering the market for this country.
 

Last published date: 2021-10-06

The government has committed to eradicating pervasive corruption at the national and local level.   Vested political and economic interests—coupled with the prevalence of informal relationships, weak governance, particularly in the financial sector, and a corruption-prone court system—have stalled progress.

Moldova is struggling with the legacy of a large bureaucracy, which enjoys significant discretionary power. Corruption and bureaucracy stifle entrepreneurship as well as the economic reform that a vibrant private sector would demand.  The government has taken steps to introduce laws and regulations in harmony with EU legislation but must do more to make local legislation and practices fully compliant with EU standards.  Businesses still face cumbersome licensing procedures and excessive authorization requirements.

Persistent challenges over the years have been an aging population and a dwindling labor force.

Intellectual property rights (IPR) legislation is quite advanced, however, IPR enforcement remains weak.

The large inflow of remittances has led to consumption-based growth, which exposes the economy to risks during regional downturns.  Dependence on Russian energy imports and an economy that is still inefficient in energy use are challenges.  Weather-related events such as drought and flooding pose a constant risk to the agricultural sector.

Another challenge is Moldova’s relatively small market.