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Moldova Brussels, 27 June 2007

Moldova Brussels, 27 June 2007. United Nations Development Programme . MOLDOVA. Favorable geographical position that joins Western Europe and CIS countries (new status – EU neighbor) Free Trade Agreements with CIS countries and Romania

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Moldova Brussels, 27 June 2007

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  1. Moldova Brussels, 27 June 2007 United Nations Development Programme

  2. MOLDOVA

  3. Favorable geographical position that joins Western Europe and CIS countries (new status – EU neighbor) Free Trade Agreements with CIS countries and Romania Full IMF support for the government's economic policies Low labor costs and well qualified labor Existence of a sound legal framework for the economic activity of foreign businesses Numerous market niches and the possibility of producing superior quality agricultural products A government committed to boosting foreign investment and privatization Moldova benefits from GSP+ trade preferences MOLDOVAWhy to invest?

  4. Export to 9 countries: Russia,Italy,Romania,Ukraine,Belarus, Germany,USA, Turkey Poland Export to EU countries grew 10% Investment tax incentives - new legislation from January 1st 2007 Currently in Moldova there are 6 Free Economic Zones: "Expo-Business-Chisinau" (located in the capital Chisinau) MOLDOVAFDI and Export flows

  5. Textile and apparel Agribusiness/food processing Wine ICT MOLDOVA Country Priority Sectors

  6. MOLDOVA Textile and Apparel • Second exporter after wine industry (990 mil USD) • Attractive for CM production - more competitive prices, low labor cost compared to CIS countries and China • CM and CMT model: Cutting and manufacturing services CM /CMT • Favorable customs regime (e.g. no quantitative restrictions (quotas, contingents etc.) on export or import of textiles and related products, favorable custom duties, no charging of VAT in case of inward processing • Experience in handling foreign investors/exports standards • (e.g. experience in exportof raw material to Moldovan enterprises, subcontracting under CM

  7. Moldova’s competitive advantage includes: Strong labor force specialized in high yield labor-intensive crops for export markets Favorable soil and climate Fast growing number of enterprises with new complex quality control systems and the ISO9000 standards Wine - 15% of GDP Good quality wine at relatively low cost Full range of products MOLDOVA Agribusiness and Wine

  8. Investment opportunity: Outsourcing opportunity both in hardware manufacturing, software production, services – call centers UNDP internet project with the Belgium Call-Center company IT Enterprises whose income is over 50% derived from the sale of their own developed software are exempt from income tax for a period of 5 years 90 significant players in IT including those operating in hardware, softwareand telecommunications there are 4,000 IT specialists. Every year 6 high schools produce approximately 300 graduates with diplomas in IT wages in the industry start from USD250 and reach USD 1,500. Average wage is around USD 700 MOLDOVAIT

  9. Thank you Malgorzata Walczak Investment Broker Growing Sustainable Business for Poverty Reduction Programme Tel: +373 22 220045 Ext.: 121 Mob,: +372 69 888980 Fax: +373 22 220041 malgorzata.walczak@undp.org www.undp.org/business/gsb www.undp.md UN House 131, 31 August 1989 str., Chisinau, MD2012, Moldova MOLDOVA

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