Even if the war in the neighborhood and the energy crisis do not encourage foreign investors to develop businesses in Moldova, the investment process is not fully stagnant, said the director of the Investment Agency Marin Ciobanu. According to him, owing to the security and pandemic crises witnessed in the region, to become an attractive investment destination Moldova should offer tax concessions to investors, IPN reports.
Marin Ciobanu said the war in Ukraine reduced the investment attractiveness of Moldova. However, there are investors who accepted to start businesses in Moldova’s districts and offer jobs and have ambitious expansion plans.
“Even if we are close to the war in Ukraine, this year we have managed to attract several strategic investors. In Ștefan Vodă, we have a Swiss company that finished the building of a fruit and vegetable processing factory. It is a very important investment that offers 50 jobs and enables hundreds of farmers to sell their goods directly in Ștefan Vodă. Another important investment was made by the German company Bautex in Strășeni, which planned to create 300 jobs and already has 100 employees and modern equipment that ensures highly technologized processes. It is a company that manufactures products from glass fiber for planes, ships. The total investment is US$20 million,” Marin Ciobanu stated in a meeting of the Economic Press Club entitled “What dangers are faced by investors in Moldova: risk factors and solutions”.
According to data of the Investment Agency, 83% of the investments the past few years have come from the European Union. Marin Ciobanu said Moldova has now a unique chance to attract foreign investors as many of these decide to relocate their businesses.
“The investors with whom we have had discussions until now are in a waiting position. During the pandemic and together with the start of this war, most of the supply chains were disrupted or interrupted. A container from China earlier cost US$ 2,500 but now costs US$18,000 and many investors that invested in distant countries now evidently want to bring their investments closer to the Community space. In this difficult situation, the countries that will offer additional tax concessions can attract investors that want to bring their businesses closer to the European Union,” stated Marin Ciobanu.
According to economic experts, among the challenges that make the Republic of Moldova unattractive from investment viewpoint and create additional risks to national businesses are the rising energy prices, the unsolved Transnistrian conflict and the neighborhood with a war-battered country.
