“Doing Business” in Moldova

When talking about the possibility of investing in the Republic of Moldova, there’s a first question that appears: How complicated, certain and advantageous is to place money in a country that finds itself in a process of economic transition?

A research made by World Bank and International Finance Corporation tried to answer this question, study that analyzed 178 economies in the world, including the economy of the Republic of Moldova, from the business environment point of view. Doing Business 2008 places Moldova on the 92nd place, a favorable position compared to the majority of the countries from Eastern Europe, being followed by Azerbaijan (96th place), Belarus (106th place) and Ukraine (139th place).

When talking about the possibility of investing in the Republic of Moldova, there’s a first question that appears: How complicated, certain and advantageous is to place money in a country that finds itself in a process of economic transition?

A research made by World Bank and International Finance Corporation tried to answer this question, study that analyzed 178 economies in the world, including the economy of the Republic of Moldova, from the business environment point of view. Doing Business 2008 places Moldova on the 92nd place, a favorable position compared to the majority of the countries from Eastern Europe, being followed by Azerbaijan (96th place), Belarus (106th place) and Ukraine (139th place).

According to this research, Moldova recorded reforms in 3 important domains: property registration, respecting the contracts and fiscal taxes. Regarding the fiscal system, the 0% share at the corporative profit tax has been adopted, and the social contribution system regarding the labor force, paid by the employers, has been modified. Also, the Parliament in Chisinau is trying to promote and adopt innovating laws in the economic domain. This situation is accepted for as long as, most of these laws are proposed by the parliamentary opposition, thus indicating the constructive position of the Central Administration in Chisinau and by showing the highly important politic stability in forming a healthy business environment.

Moldova recorded progresses regarding the procedures for beginning a business, thus occupying the 81st place and gaining 6 positions. Regarding the taxes, Moldova is placed on the 111th position, gaining 8 places compared to 2007.

Though Moldova lost 2 places at the general indicator of “Doing Business”, the reforms and progress registered prove that it finds itself in the right direction, and the present reforms will have a long term positive effect.

The analyze of the study reveals that Moldova is making efforts for consolidating the business environment and its geographic and demographic position contribute essentially to developing Moldova as an entrance of the important companies from the Eastern Europe. Not in the least, Moldova becomes more attractive for foreign investors that want to gain from the internal advantages of the country and for those who want to obtain advantages from the intermediate position of this country, between the East and the West.