In this page: FDI in Figures | What to consider if you invest in Moldova | Procedures Relative to Foreign Investment | Investment Opportunities
According to the 2021 World Investment Report by UNCTAD, FDI inflows to Moldova amounted to USD 55 million in 2020, down from USD 503 million in the previous year, following the global economic crisis triggered by the Covid-19 pandemic. The total stock of FDI was estimated at USD 4.8 billion in the same year. The bulk of FDI comes from EU countries. The National Strategy for Investment Attraction and Export Promotion 2016-2020 identified seven priority sectors for investment and export promotion: agriculture and food, automotive, business services such as business process outsourcing (BPO), clothing and footwear, electronics, information and communication technologies (ICT), and machinery.
Generally, the Moldovan economic and political environment is not particularly attractive to investors. The country faces several challenges, including the need to fight corruption, improve the investment climate, remove obstacles for exporters, convert remittances into productive investments and develop a reliable financial sector. Administrative and judicial reforms are also needed. On the other hand, the country could be a bridge between Western and Eastern European markets, and foreign companies enjoy national treatment in most sectors. Moldova ranks 48th out of 190 economies in terms of ease of doing business in the World Bank's latest Doing Business report (losing one position compared to the previous edition). With "Law 174/2021", the Moldovan Parliament approved the rules on control of investments into sectors important for the security of the state, including energy, water, transport, AI, aviation security activities, management of airports and other infrastructures, weapons, etc. Prior to investing in a relevant sector, any potential investor is obliged to obtain approval from the Council for Promotion of Investment Projects of National Importance.
Foreign Direct Investment | 2018 | 2019 | 2020 |
---|---|---|---|
FDI Inward Flow (million USD) | 292 | 503 | 55 |
FDI Stock (million USD) | 4,027 | 4,682 | 4,792 |
Number of Greenfield Investments* | 4 | 6 | 5 |
Value of Greenfield Investments (million USD) | 117 | 130 | 133 |
Source: UNCTAD - Latest available data.
Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.
The current Law on Investment in Entrepreneurship came into effect in 2004. It was designed to be compatible with European legislative standards and defines types of local and foreign investment. It also provides guarantees for respect of investors' rights, non-application of expropriation or actions similar to expropriation, and for payment of damages in the event of investors' rights being violated. The law permits investment in all sectors of the economy, while certain activities require a business license.
The government promotes the following industries as attractive for foreign investment through the Moldovan Investment and Export Promotion Organization (MIEPO): agriculture, automotive, ICT, medicine, renewable energy and textiles. Description of the sectors can be found on the MIEPO website.
The government established a number of mesures in order to promote investments in the country. Companies investing USD 250,000 can benefit from tax deduction for the first 5 years. Income tax has also been lowered. The government promotes equality amongst international and local investors and the fact that there is no limit to capital invested.
Free economic zones (FEZ) are parts of the customs territory of Moldova, separated economically, and strictly bounded on the entire area, where certain types of entrepreneurial activities are allowed on preferential conditions to local and foreign investors. There are seven Free Economic Zones (FEZs) in Moldova at present.
For more information, refer to the Invest in Moldova website.
To learn more about the different legal forms of enterprises that may be settled in Moldova, you can visit the PWC guide to investment in Moldova.
The JSC shares need to be subsequently registered with the National Commission for Financial Market (NCFM). It takes five business days from the required documents being submitted. The fee for the registration of JSC shares is 0.4% of the amount of stock issue.
For more information, refer to the Invest In Moldova website or to the World Bank report on Doing Business in Moldova.
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Latest Update: April 2022