Moldova covers an area of 33,800 square kilometers with a total population of approximately 4.2 million (including 600,000 in the breakaway region of Transnistria). In 2013, Moldova's GDP per capita was $2,039, making it one of the poorest countries in Europe. Agriculture, food processing, and cultivation are the pillars of the Moldovan economy. With an average of 7.5 mu of black soil per capita, it is the seventh-largest agricultural country in Europe and is rich in wine production (producing 400,000 to 500,000 tons of wine annually, making it the world's tenth-largest wine producer and exporter). The Moldovan economy is highly dependent on remittances (accounting for 23-25% of total GDP) and foreign economic aid (accounting for 7-8% of total GDP).
1. Significant geopolitical advantages and broad reach.
Moldova is situated between two major political and economic blocs: the Commonwealth of Independent States (CIS) and the European Union. It enjoys convenient land and air transportation links with both the EU and the CIS. As a member of the CIS Free Trade Area and a signatory to preferential trade arrangements with the EU, 12,000 types of industrial products can enter the EU duty-free and quota-free. In November 2013, Moldova initialed the Deep and Comprehensive Free Trade Area (DCFTA) agreement and the Association Agreement with the EU, which were formally signed on June 27 of this year. It is a member of the Central European Free Trade Agreement (CEFTA) and has also signed a free trade agreement with Turkey. Following the entry into force of the EU free trade agreement on June 27, Moldovan products can freely enter the Eurasian market, which has a total population of 900 million, including the CIS and the EU.
2. Fully utilize preferential policies such as Moldova's free economic zones and industrial parks.
Moldova has established 9 free economic zones and co-developed 9 industrial parks, which offer a series of incentives including tax exemptions and well-developed infrastructure. Of the 12,000 duty-free and quota-free products that the EU offers to Moldova, Moldova can only produce about 1,000. Our enterprises can fully leverage Moldova's geopolitical advantages and preferential policies to invest in, produce, and assemble products in Moldova that are subject to export restrictions to the EU, and then enter the EU market after obtaining a Moldovan certificate of origin.
3. Moldova's trade and investment environment is gradually improving, with low costs for high-quality labor.
Since joining the WTO in 2001, Moldova's tariffs and foreign economic and trade practices have gradually aligned with WorldWay standards, and its laws and regulations are increasingly converging with those of the EU. Moldova's import and export system is relatively liberal, ranking 11th out of 125 countries in the World Bank's Most Favored Nation (MFN) tariff trade restriction index. The corporate income tax rate for foreign-invested enterprises in Moldova is only 12%, far lower than that of neighboring countries. It has signed double taxation avoidance agreements with 44 countries, including China and Turkey. Moldova has a relatively well-developed education system with a strong foundation, providing an abundance of high-quality labor at a cost of 2 euros per hour, which is lower than in neighboring countries. Furthermore, most of the workforce is proficient in Russian, Romanian, and international languages.