MOLDOVA AGENCY PROMOTES FOREIGN INVESTMENT

BISNIS
Home Page

Search
BISNIS

Embassy
Reports

Country
Reports

Industry
Reports

Customs
Corner

Publications

Sources
of Finance

FinanceLink

Leads
and Events

Exchange
Rates

State Exports

Other
Sources

March 1999

by Helen Midori

Wedged between Romania and Ukraine, Moldova is taking gradual steps to attract Western trade and investment. Although often overlooked by investors, Moldova boasts fertile soil, a highly skilled work force, underutilized production facilities, and a relatively low crime rate. Moreover, the Government of Moldova is actively promoting economic reforms and an aggressive policy aimed at attracting investment. (In October 1998, the presidents of Ukraine and Romania traveled to Chisinau to discuss the creation of the Lower Danube Euroregion, a free economic zone that would offer value-added tax and customs duty exemptions to potential investors.)

Moldova's National Agency for Attracting Investment (NAAI) has helped foreign companies trade and invest in Moldova since it was established in December 1997. As part of its effort to attract foreign investment and project financing to Moldova, the agency has developed a wide range of information, consultancy, and legal services. U.S. companies active in Moldova or considering Moldova's market may find that NAAI can expedite their efforts.

Goals
NAAI is a nonprofit government organization with a mandate to coordinate and review investment projects and assist foreign investors on behalf of the Moldovan Government. The agency's goals are as follows:

  • Attract foreign investment to Moldova's privatization program;
  • Help foreign investors, local authorities, and domestic companies to work together more effectively;
  • Coordinate and implement various investment projects as part of the credits or technical aid granted to Moldova by international investment and financial institutions; and
  • Review investment proposals and provide information, consulting, and legal services to foreign investors in Moldova.
According to Chiril Lucinschi, general director of NAAI, Moldova presents an attractive commercial environment, despite many barriers to investment. Lucinschi adds that the government's investment policy, and NAAI as an implementer of that policy, is designed to promote Moldova's existing positive conditions and to diminish barriers to investment.

NAAI works closely with the Ministry of Privatization, State Property Administration, and other federal and local authorities. In addition to promoting foreign investment in Moldova, the NAAI actively cooperates with various international and domestic organizations, including the International Monetary Fund, the World Bank, the European Bank for Reconstruction and Development, the Moldovan Chamber of Commerce and Industries, and the Moldovan Agency for Restructuring of Enterprises.

Services
NAAI publishes Investment Guide on Moldova, a handbook of essential information on the country's investment policies and a source of information on economic, commercial, and legal developments. The guide also includes a list of useful contacts and addresses, as well as tips for investors on how to do business in Moldova.

The agency can assist foreign companies with market research in a specific product or industry sector and with locating potential buyers, suppliers, and distributors. It also promotes new investment opportunities in agribusiness, transportation, construction, power generation, and other industries. The agency is currently developing a website to promote investment in Moldova and to provide time-sensitive information to potential investors.

One of NAAI's greatest strengths is its expertise in preparing documentation for investment projects and in keeping projects on track as they move through the maze of government ministries and local bureaucracies. NAAI's legal services also include assistance with the registering of foreign companies.

The agency is also actively involved in Moldova's privatization program. Privatization currently focuses on the sale of state-owned assets through tenders or cash auctions. The agency can provide consulting services on the specific enterprises put up for privatization and assist in developing privatization plans for enterprises.

For more information on the Moldovan National Agency for Attracting Investment, contact NAAI at tel: +373 (2) 232-484, 232-467 or tel/fax: +373 (2) 233-197. For more information on Moldova, visit BISNIS Online at www.mac.doc.gov/bisnis/country/wstnis.htm#Moldova.

Helen Midori represents BISNIS at the U.S. Embassy in Chisinau.

This report is provided courtesy of the Business Information Service for the Newly Independent States (BISNIS)