The Ministry of Economy initiated public debates on the draft National Strategy for Attracting Investment for Developing Export, which is designed to attract foreign direct investment (FDI) to the economic sectors oriented to export and to help reduce the competitiveness discrepancy of the country. The debates involve representatives of the Ministry, the Independent Analytical Center “Expert Grup” and of foreign companies, IPN reports.
Under the document, the foreign direct investment represents an important means by which the national economy is connected to the world economy. Currently, many goods and services are globally supplied by foreign branches, only through commercial transactions. “The new strategy aims to develop the export by attracting foreign direct investment to the most attractive sectors with considerable export potential. This document aims not only to attract investment, but to also maintain and develop the ties between the sectors that benefit from FDI and the rest of the economy. It is important to create a favorable and attractive investment climate for the big investors that can come with large and long-term investment projects,” head of the Ministry of Economy’s Investment Policies Division Olga Badanova said in the debates.
The document was worked out in concert with the think tank “Expert-Grup” and the company Czech Invent. “The strategy must provide ground for particular accomplishments. We must have tangible results such as a project implemented in the Republic of Moldova, which would contribute to investment attraction and export promotion. The document is not a solution, but a commitment of all the players that contribute to the achievement of these objectives,” said the representative of Czech Invent Robert Hezjak.
The strategy reveals the most acute problems faced by the foreign investors when they want to enter the Moldova market, with the major ones being the lack of skilled labor force, the rigid and, in parts, unclear labor legislation, insufficiency of appropriately equipped industrial halls, inefficient fiscal administration, poor quality of the roads and weak legal framework. “The most problematic three factors are related to the quality of governance, namely corruption, political instability and inefficient governance,” said “Expert-Grup” executive director Adrian Lupusor.
The implementation of the new strategy will help attract at least US$600 million in FDI a year. At least 20 of the current investors are expected to extend their operations in the country, while the existing investments are planned to generate minimum 5,000 jobs in the economy, both directly through foreign investors and indirectly through local providers.
