investment opportunities in moldova · free trade agreements with:-european union –moldova...
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INVESTMENT OPPORTUNITIES IN MOLDOVA
IT ANDBPO & SSC OPPORTUNITIES IN
MOLDOVA
FREE TRADE AGREEMENTS WITH:
- European Union – Moldova Association Agreement /(DCFTA) – 2014
- Community of Independent States (CIS) (2012)
- Turkey (2017)
- CEFTA countries (2007)
- GUAM countries (2002)
Launched negotiations with China
Consultations with EFTA member states & Egypt
The Republic of Moldova- your bridge to West and East
• Member of the World Trade Organization (WTO) – 2001• Agreements on mutual promotion and protection of
investments (34 countries)
Moldova in International Rankings
GLOBAL COMPETITIVENESS INDEX 2018
88 out of 140
Ranked 48th in ICT Adoption
Ranked 69th in Business Dynamism
EASE OF DOING BUSINESS 2020
Ranked 48 out of 190
Ease of doing Business
FDI net inflows 2018 - US $ 311.87 million / + 102.02% vs. 2017 (US $ 154.37 million)
Direct investments in the form of shares and accumulated shares
EU CIS Other Countries
Financial and insurance activities
25.2 %
Information and communications
8.7 %
Real estate transactions6.3 %Electric and thermal energy, gas, hot water
and air conditioning9.9%
Manufacturing industry
23.6%
Transportation and storage
5.4%
Wholesale and retail trade; repair of motor
vehicles16.1%
Other4.8%
FDI in Moldova
Source: National Bank of Moldova Source: National Bank of Moldova
Exports of services
Technical , trade related, and other business services
3%
Other services9%
Professional and management
consulting services5%
Information services
10%
Manufacturing services on
physical inputs owned by
others17%
Travel services26%
Transportation services
30%
Currently the BPO&SSC segment representsapproximately 12% of the outsourcingmarket. It is estimated by an IDC report*,that it will record significant growth,reaching a value of $30.42M by 2024,compared to $14.45M in 2018.
Business Services in Moldova
Source: IDC, 2019
Since 2005, the ICT sector has grown over40 times. The exports of IT Services hasincreased in 2018 by 50% compared to2017, reaching 149 M USD.
9
Business Services in Moldova
Data entry InvoicingPayroll,
AccountingTelemarketing
Inbound/Outbound sales
HR, RecruitingProduct Design and
DevelopmentLogistics
TranslationBusiness
IntelligenceDebt Collection IT and R&D support
Activities
10
Serviced Industries
Business Services in Moldova
BPO & SSC in Moldova
IT in Moldova
WHY MOLDOVA?
Why Moldova?
Time zone compatibilityFavourable geographical location
Proximity & Culture
Multilingual population
Direct flights
Visa liberalization regime for 100 states
Investor protection
e-Government Excellence
Special Government Incentives - Law on IT Parks
European neighbouring policy
Competitive operational costs
Advanced infrastructure at competitive costs
Human Resources
Higher Education Students, 2018-2019
Source: statistica.md
39%
14%
14%
6%
6%
6%
6%5%
2% 2%
Students by Specialty
Business, Administration andLaw
Engineering, Architecture andConstruction
Education
Services
Health
ICT
Social Sciences, journalism andpublic relations
Arts and humanities
Agriculture, forestry, fishfarming, veterinary medicine:
Mathematics and Statistics
Education
English, French, RussianGerman, Italian,
Spanish, Chinese, Korean.
Foreign Languages
Language Number %
Total 300,38189.9
English 226,218 67.7
French 112,571 33.7
Russian 108,749 32.5
German 10,273 3.1
Spanish 1,410 0.4
Others 3,225 1.0
Students in primary and secondary schools studying foreign languages, 2018-2019
Service customers in EU, Turkey, CIS from Moldova
ICT InfrastructureGigabit ranking (% of population covered)
Rank Country % coverage
1 Singapore 95
2 South Korea 93
3 Malta 93
4 Moldova 90
Source: gigabitmonitor.com
Fixed broadband speed ranking, Mbps
Rank Country Download Upload
39 Bulgaria 49.78 36.7
40 Estonia 47.94 32.97
41 Moldova 46.76 41.3248 Ukraine 41.16 41.47
58 Croatia 29.19 12.65
76 Albania 21.53 9.38
Average cost of broadband (USD/month) 2018
Rank Country Cost
1 Ukraine 5.00
2 Sri Lanka 5.65
3 Iran 8.20
4 Russian Federation 9.77
5 Belarus 10.46
6 Moldova 11.28
7 Syria 13.00
8 Israel 13.02
9 Egypt 13.58
10 Romania 14.42Source: Worldwide Broadband Price Comparison, www.cable.co.uk
Advanced Telecom Industry: Fiber – 90%, 4G – 98%.
Investment friendly fiscal system
Corporate Income Tax Value Added Tax Social Insurance Contributions
ITALY27,9%
MOLDOVA12%
ROMANIA16%
UKRAINE18%
RUSSIA20%
SLOVAKIA22%
MOLDOVA18%
ROMANIA
27.75%
UKRAINE22%
RUSSIA30%
ITALY30%
SLOVAKIA35.2%
ITALY22%
MOLDOVA20%
ROMANIA19%
UKRAINE20%
RUSSIA20%
SLOVAKIA20%
There are over 500,000 sqm of available office space in Chisinau.
The price per square meter ranges between9- 20 Euro/month, including VAT.
Office space availability
Rent prices are20-25% lower in Balti, Comrat, Cahul.The most recent projects of A Class office buildings:Digital Park and Malldova Centre.
Consumer Prices
# G R O W I N M O L D O V A
THANK YOUALINA MONACU [email protected]
LINKEDIN: WWW.LINKEDIN.COM/IN/ALINAMONACU/