Bordered by Romania to the west and Ukraine to the east, Moldova adjoins both the EU and CIS markets, with which the country has FTA arrangements. Free Economic Zones, with accompanying tax incentives and duty-free import of inputs, present opportunities to set up export-oriented manufacturing sites. A number of large international companies, such as Lear Corporation and Dräxlmaier, have taken advantage of this opportunity.
Given Moldova’s significant agricultural potential, food processing holds notable opportunities. Demand for agricultural machinery, irrigation equipment, cold storage, and sorting and processing lines is high. With assistance from the international community, the government has focused on developing high-value agriculture, tourism, and wine. There is demand among domestic consumers for processed foodstuffs, used automobiles, medical products, and aftermarket accessories.
Renewable energy and energy efficiency are another area of potential investment. A number of internationally supported projects in energy and road infrastructure are under way. These efforts enjoy the financial support of the U.S.A., the European Union, the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), and the World Bank. There is also potential for support from the Development Finance Corporation (DFC). There are opportunities in areas linked to engineering, logistics, road construction, energy distribution and transmission infrastructure (e.g., interconnections), power plant turbines and internal combustion engines, advanced power grid technologies, transformer stations, electric cables, wiring and piping.
Information and communication technology is another growth area. The government has promoted the development of these industries with the passage of a law establishing IT parks, introducing the novel idea of “virtual residence” that replaces all corporate taxes with a flat 7% tax on sales.