1. Investment and Business Opportunities in the Republic of Moldova Ministry of Economy of the Republic of Moldova

2. Republic of Moldova: geo economically advantageous position 2

3. Republic of Moldova: overview (preliminary data, approx.) Government Republic, Declaration of Independence - August 27, 1991 Population3,56 million people (1 Jan. 2011) Literate Population96% Working-age Population1,1 million people (4 th quarter 2010) Unemployment rate7,4 % (2010) Inflation Rate (medium annual)7,4% (2010) GDP$ 5,8 billion (2010) GDP per capita$ 1631 (2010) 3

4. 4 Total recovering of the national economy from the economic crisis Indicators2009 to 2008, % 2010 to 2009, % 2011 to 2010, % 2011 to 2008, % GDP92,2105,6107,5104,7 Agricultural production 102,6111,4103,9118,8 Industrial production75,1106,6109,187,3 Export79,3104,5164,9136,7 Import64,2111,9141,7101,8 Investment in fixed capital 61,696,4131,878,3 including construction and assembling works 66,392112,968,9 Transported goods40,7104,6113,748,4

5. New economic development paradigm based on investments and export Industry Agriculture Services Industrial parks Innovation Technological Transfert Subsidies efficiency Organic agribusiness and food processing Export oriented services with HVA (IT, multimodal transport, logistics, etc.) Outsourcing E-Commerce 5 Business climate Access to capital market Infrastructure Energy efficiency Quality infrastructure Education Public services Fiscal policy & administration Privatization PPP, Free zones, Industrial parksPovertyreduction Job creation Risk reduction Sustainable growth and development of Moldova economy

6. Trade partners (Source: NBS, 2011) 6 January - September 2011, mil.$ ExporImport Export: 1549,7 mil. $ Import: 3693,8 mil. $ CIS: 626,5 (40,4%) CIS: 1191,7 (32,3%) EU: 774,8 (50,0%) EU: 1642,8 (44,5%) EXPORTIMPORT

7. Foreign trade by type of product 7 Source: NBS, 2011 January – September 2011, mil. $

8. 8 FDI - BNM data Foreign Direct Investment in Moldova Cumulative FDI stock (mil. $)

9. FDI Origin FI,1994 – 01.10.2011, NBS 9

10. FDI Structure FDI by sector in cumulative FDI stock at 01.10.2011, NBS 10

11. Benefits of Investing in the Republic of Moldova

12. Openness to foreign investment  The Government provides equal rights for all investors;  89 states have invested in Moldova, including all member-states;  The amount of capital investment of the EU states is 64% of total FDI 12

13. Rankings on the ease of Doing Business (2012 ) Change in the Rank, Moldova: 18 points higher. Economies that improved the most across 3 or more areas measured by Doing Business: 1.Morocco 2.Moldova 3.Macedonia, FYR 4.Sao Tome and Principe 5.Latvia, etc. 13

14. Fiscal incentives A. Incentives when starting a business  VAT refund for capital expenses on long-term investments, except for housing and vehicles (not applicable in Chisinau and Balti)  VAT and customs tax exemption for assets to be included in the share capital of the company B.Benefits when operating  12% Corporate Income Tax – since 2012, with incentives for investors  Double Taxation Avoidance Agreements (DTAA ) with 39 countries Corporate Income Tax in the Region Romania16% flat rate Ukraine30% for non-residents Bulgaria10% 14

15. International trade benefits of the RM Member of WTO Member of CEFTA EU Autonomous Trade Preferences Member of CIS EU 501 mil. people CEFTA 31 mil. people CIS 276 mil. people Access to the market 808 mil. people VAT reimbursement on export activities; 0% corporate income tax – up to 2012; http://www.fisc.md/en/lege/ Double Treaty Avoidance Agreements with around 44 countries. 15

16. Competitive Labor & Operational Costs Moldova 1,1 €/hour Moldova 1,1 €/hour Romania 4.0 €/hour Romania 4.0 €/hour Workforce costs in the region Bulgaria 4.0 €/hour Bulgaria 4.0 €/hour Ukraine 2.0 €/hour Ukraine 2.0 €/hour 16

17. Free Economic Zones Availability of necessary resources (water, gas, energy) Developed transport infrastructure Exemption from excise duties VAT exemption 50% from general corporate tax 17

18. Industrial Parks  The Law on Industrial Parks (№ 182 from 15 July 2010):  30-year term for the industrial park;  Free change of land use;  Free transfer of state land to the company administrator;  Opportunity to lease state land with a 30% discount;  State contribution to the infrastructural and technological development;  Limited by and controlled Government inspections;  Assistance from local authorities and the Council to promote investment projects of national significance; 18

19. 12 projects for establishment and operation of industrial parks : 3 – based on the joint stock companies with the majority state capital 5 – based on the public property assets 3 - based on the private property assets 1 – within subzone no.3 of the FEZ „Balti” from which: 3 – are obtained the Title of Industrial Park, including 1 park is in construction phase, registered according to the Law 182/2010 19 Promising location of the industrial parks in the regions of Moldova Ocnita Feasibility studies: http://mec.gov.md/sector/121/2604

20. Successful Investors of the RM 20

21. THE WORLD FAMOUS Milestii Mici Largest wine cellar by number of bottles 21 1.5 million bottles of wine The cellars of the Milestii Mici wine-making plant in Moldova contain over 1.5 million bottles of wine. The bottles are stored in 55 km (34 miles) of underground galleries excavated in lime mining operations. The first bottle was stored in 1968, and new vintages are added each year.

22. Cricova – Moldova’s underground treasure In just 15 km North of Chisinau, lays a of subterran city, a labyrinth of avenues and streets, named after wine types. Cricova’s museum stores the country’s national collectional of 1.3 millions of bottles, the oldest one beeing from 1902. 22