Unpredictability is an obstacle to attracting Romanian investments to Moldova

The institutional uncertainty and unpredictability are the major obstacles that prevent the Romanian investors from coming to Moldova, it was said at a roundtable meeting themed “Romania – Moldova. Analysis of the Bilateral Relations”. The discussion was occasioned by the launch of a study on this theme conducted by the independent analytical center Expert-Grup in cooperation with the Romanian Academic Society, with support from Soros-Moldova and Soros-Romania Foundations and the East East: Partnership Beyond Borders Program, Info-Prim Neo reports. According to Sorin Ionita, of the Romanian Academic Society, the fact that many things are not known while other things are not like in Romania (in the EU) discourages the investors, especially those from the SME sector, from coming to Moldova to found joint companies. "Certainly, the fact that the products made by joint companies could be exported to third countries with a larger number of consumers, like Ukraine and Russia, is attractive. An advantage is that the workforce in Moldova is yet cheaper, even if qualified. It is good that the language is the same. But the political, economic, legislative and institutional uncertainty make the investors abandon the idea of coming to Moldova and they leave to Hungary for example. That's why, we consider that Romania, which became country that provides development assistance after joining the EU, must initiate a grant program for small and medium-sized companies from these funds so as to stimulate the investors operating in his sector. Other instruments aimed at encouraging the exchange of experience and knowledge and the movement between the two countries are needed not only at strategic level, but also at the level of SMEs, which represent in fact the most dynamic sector for every economy,” Ionita said. As to the attraction of larger investments to Moldova, including from multinational companies working in Romania, Ionita considers that Moldova should adjust not only its legislation, but also the certification methods, fitosanitary norms and other aspects so that they are as closer to the EU's as possible. An important factor in attracting Romanian investors to Moldova is the participation of Romanian businesspeople in the future privatization in Moldova as well as in tender contests for purchasing works and services as part of large Moldovan infrastructure-related projects. A number of 3,236 joint companies with Moldovan capital (US$33m) worked in Romania at the start of 2009. In Moldova, there were 650 joint companies with Romanian capital (US$ 68m). Romania is among the ten largest foreign investors in Moldova.