Edition 2016/2017. Automotive Components and Industry Overview. Republic of Moldova

Transcription

1 Edition 2016/2017 Automotive Components and Industry Overview Republic of Moldova

2 KEY FACTS 2015/2016 Official name Republic of Moldova Language Romanian (official) Other spoken languages: Russian, Ukrainian, English, French, German, Italian, Turkish, Bulgarian Population 3.55 million Currency MDL 1 EUR = MDL December Doing Business 2017 Rank 4,514 GDP per capita at PPP billion GDP current prices % Employment rate 2015 Capital Chisinau ca. 814,000 inhabitants /month Minimum salary % Inflation rate 2015 /hour Full load (labor cost) 2016 Area 33,846 km /month Average wage (gross) % CIT 0% DUTIES in FEZ 0% VAT > 1MIO Investment 6% FEZ 12% General regime EXCISE CUSTOMS in FEZ Purchase price, construction land in FEZ Free Trade Agreements The Republic of Moldova has signed 43 Free Trade Agreements (FTA), including: DCFTA (Deep and Comprehensive Free Trade Area with the European Union) million customers; FTA with CIS countries (Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Uzbekistan) million customers; FTA with Turkey - 80 million customers; CEFTA Central European Free Trade Agreement (Moldova, Macedonia, Albania, Serbia, Montenegro, Bosnia and Herzegovina and UNMIK (Kosovo) - 30 million customers; GUAM Organization for Democracy and Economic Development (Georgia, Ukraine, Azerbaijan, and Moldova) - 60 million customers. /m million Customers duty-free market GBR NOR DEU EU SWE CZE POL FIN EST LVA LTU BLR UKR RUS CIS FRA ITA AUS HUN CEFTA ROM BGR GUAM KAZ UZB ESP GRC TUR

3 Contents Industry overview...2 Business start-up in Moldova...3 Automotive components industry...4 Top reasons to invest in Moldovan Automotive Sector...5 Human resources are one of the most important assets of Moldova...5 Education...5 Educational Institutions, map...7 Educational system in the Republic of Moldova, structure...8 Operating costs and taxes...9 Structure of the average salary in Moldova...10 Utility costs...10 Favorable location...11 Giurgiulesti International Free Port (GIFP)...11 Competitive products...12 Automotive supply chain structure...12 Success stories and industrial competences, map...13 Free Economic Zones (FEZ) and Industrial Parks (IP)...14 Invest in Moldova helps you...16 Testimonials...17

4 Industry overview Moldova s modern automotive industry foundations build on its strong industrial past. The share of industry in Moldova s GDP represented 60% until the 1990s. Back then, Moldova was one of the important producers of industrial products among the CIS states and now it revives. Moldova was active in 97 branches of production. 558 industrial enterprises, 21 R&D institutions and 392 thousand workers were part of the industry. Moldova successfully exported 90% of its produce in the machine building industry, which represented 20% of total industry output. to 12.0%. In 2015, the industrial production registered an increase of 0.6%, mainly driven by the growth of 2.3% of the manufacturing industry. The production of electrical equipment has increased by 32.2%, followed by the production of textiles (+19.9%), chemicals (+17.6%), pharmaceuticals (+16.9), wood processing and wood articles (+15.9%), and others. A significant intake was brought by the automotive industry, representing the biggest share in the increase of electrical equipment and textile. Automotive is one of the most dynamic industries in Moldova. Share of industry in GDP, % The foundations of local industry were companies that produced a large variety of products, from TV sets, refrigerators, washing machines to tractors, and exported them to over 60 different countries The industry production reached 15.2% of GDP in 2015, while the agricultural production decreased Source: IMF, World Economic Outlook Database,

5 Business start-up in Moldova The Republic of Moldova is ranked 44 out of 190 countries in the Doing Business 2017 ranking It takes 4 procedures and 1 day to register a business in Moldova Getting credit, DB Ranking 2017 Romania Poland Ukraine Moldova Bulgaria Serbia Croatia Starting a business, DB Ranking 2017 Paying taxes, DB Ranking Ukraine 31 Moldova 44 Moldova 47 Poland 47 Serbia 49 Croatia 62 Romania 50 Romania 82 Bulgaria 78 Serbia 95 Croatia 83 Bulgaria 107 Poland 84 Ukraine Registering property, DB Ranking 2017 Enforcing contracts, DB Ranking Moldova 7 Croatia 38 Poland 26 Romania 56 Serbia 49 Bulgaria 57 Romania 55 Poland 60 Bulgaria 61 Serbia 62 Croatia 62 Moldova 63 Ukraine 81 Ukraine 3

6 Automotive components industry Nowadays, the automotive industry is a key growing sector for the Moldovan economy. This is due to an increased focus on the unused industrial potential of Moldova and the maintained industrial orientation in the education system (Technical University, technical colleges and vocational schools). The total export in the automotive industry registered over 257 million EUR (in 2015), with an increase of ca %. Automotive components Exports EUR 137 million EUR 179 million EUR 228 million EUR 257 million Source: Invest in Moldova Up to now, large direct investors prefer to locate themselves in Moldova s Free Economic Zones (FEZ), which represent an excellent location for industrial development and production relocation oriented for exports. Production concentrates on cables, wiring harnesses for cars, car seat covers, plastic molding injection, metal processing, electronics and electronic components, and assembling. This production is executed in Tier 1, 2, and 3 supplier plants, as well as local subcontractor companies. Important examples would be Lear Corporation, Dräxlmaier Automotive, Gebauer & Griller, Sammy Cablaggi / Kablem, Elektromanufacturing, Confezioni Andrea Covercar, LEONI, SEBN Sumitomo Electric Bordnetze, Fujikura Automotive, Coroplast Fritz Mueller, and APM Automotive. 5,100 Number of employees in Automotive 6,200 6,900 7,650 9, Source: Invest in Moldova 4

7 Top reasons to invest in Moldovan Automotive Sector Competitive and well-educated labor force, which is the result of Moldova s industrial past and of a comprehensive education system. At the same time, Moldova features the lowest labor costs in the region. Just in time / Just in sequence delivery to EU, CEFTA, and CIS markets: Geographical proximity and Free Trade Agreements with EU and CIS countries makes logistics fast, easy and reliable in all markets. Free Economic Zones are excellent manufacturing platforms for automotive growing supplier base. They offer important incentives, preferences, and state guarantees. What Moldova offers Human resources are one of the most important assets of Moldova Moldova offers an active, educated, and multilingual workforce. It is a melting pot of several nationalities, such as Romanians, Russians, Ukrainians, and others. The official language is Romanian, however there are more languages in use: Russian, English, Ukrainian, Bulgarian, and Gagauz language (close to Turkish). In addition, many Moldovans speak French, Italian and German. The population of Moldova comprises of ca million people, with ca. 2.9 million above 15 years and ca. 1.2 million representing the active labor force. The unemployment rate is 4.9% (2015), however the employment rate stands at 40.3 % (2015) compared to EU average of 70.1% (2015). A considerable additional labor force could potentially be represented by Moldovan migrants abroad, willing to return back home and find a decent job. Education Well-educated young students, in sector-specific faculties, are available to work in companies and increase their productivity. Moldova has strong technical faculties and specific colleges, e.g. Chisinau and Balti Polytechnic Colleges, Techni- Total number of students in 2015/ ,098 Vocational schools 30,248 Colleges 81,669 Universities Source: National Bureau of Statistics, 2016 Total number of graduates in 2015/2016 9,220 Vocational schools 6,252 Colleges 22,988 Universities (cycle I, II) Source: National Bureau of Statistics,

8 cal College of UTM, Microelectronics College, Informatics College, Light Industry College, Technological College etc. Technical education is one of the strongest in the Republic of Moldova, comprising best engineers known for their expertise. Technical University of Moldova (UTM), located in Chisinau, is the main high education institution for technical education. The number of engineers, managers and other specialists is sufficient to meet the investor s demand in most sectors. In contrast to other Eastern European countries, Moldova s unit labor cost is stable and and growing very slowly. Number of students in universities (Engineering & Exact Sciences) 2015/2016 8,662 Engineering Number of graduates in universities (Engineering & Exact Sciences) 2015/ Cycle I 172 Exact Sciences Cycle II Engineering, Manufacturing & Processing Architectures& Construction Number of graduates in colleges (Engineering & Manufacturing) 2015/2016 1,136 Industry 1,399 Source: National Bureau of Statistics, Engineering 1,555 Exact Sciences 2,225 Engineering, Manufacturing & Processing 3,282 Architectures& Construction 493 Construction 580 Transport Source: National Bureau of Statistics, 2016 Source: National Bureau of Statistics, 2016 Higher Education Institutions (2015/2016) Graduates Cycle l Cycle ll Economic sciences 4,805 1,370 Law 2,541 1,145 Engineering and Engineering activities 1, Humanitarian sciences Architecture and construction Manufacturing technology and processing Exact sciences Chemical technology and biotechnologies Source: National Bureau of Statistics, 2016 Colleges (2015/2016) Students Graduates Economics 4, Information Technologies 1, Electrotechnics and energetics 1, Mechanics 1, Transport 2, Electronics and communication 1, Information systems and computers 1, Technology of food processing 1, Apparel industry Construction 1,

9 Educational institutions Briceni Edineț Ocnița Rîșcani Dondușeni Glodeni Population of Moldova in 2016, thousand people Population of the region Population of region capital city Cahul Ungheni Soroca Orhei Straseni Dubasari Causeni Edinet Hincesti Falesti Ialoveni Calarasi Floresti Taraclia Singerei Nisporeni Cimislia Riscani Rezina Basarabeasca Glodeni Leova Drochia Briceni Ocnita Anenii Noi Stefan Voda Donduseni Telenesti Soldanesti Cantemir Fălești Drochia x5 Ungheni BĂLȚI x6 x3 Soroca Florești x2 Sîngerei Călărași Nisporeni Population x2 x4 x2 Telenești Cahul Hîncești Leova Cantemir x2 Vulcanesti Șoldănești Strășeni x3 Taraclia Rezina Orhei Cimișlia x2 Criuleni CHISINAU x12 x19 x26 COMRAT Ialoveni Republic of Moldova, total Chisinau municipality, Chisinau city Balti municipality, Balti city Anenii Noi Căușeni LEGEND Ștefan Vodă Secondary Vocational Institutions (vocational schools) Post secondary Vocational Institutions (colleges) Higher Education Institutions (universities) Population of UTA Gagauzia UTA Gagauzia Comrat municipality, Ciadir - Lunga Vulcanesti 7

10 Education system in the Republic of Moldova Age Higher Education 3 Trade School 1 year Compulsory Education ***** Post-doctorate ***** 6 Doctorate 3-4 years 5 Second cycle Master First cycle Lycentiate(Bachelor) 3-4 years years 5 ***** General Secondary School 2 years ***** ***** ***** 3 Lyceum 3 years X - XII 2 Gymnasium 5 years V- IX 1 Primary school 4 years I - IV 0 One year compalsory pre-schooltrainig Kindergarden 3 Professional school 2 years 4 College 2-5 years ***** ***** ***** i ISCED level Bacalaureat exam. ***** Competition based enrolment Exit to labour market 8

11 Operating costs and taxes Moldova commends a highly-skilled, competitively-priced workforce. Labor costs are among the lowest in the region and low enough to ensure cost-effective operations. This provides an attractive basis for a successful business. The gross wages in Moldova for workers in the industry sector range from 180 EUR to 450 EUR, depending on the region and professional level of the employee, which is lower than the wages in the region. A newly-graduated university student of engineering could earn up to 600 EUR. for a strong business performance. The quality of the labor force also derives from the industrial experience and history of Moldova, as it was one of the most industrialized republics in former Soviet times. Evolution of average gross salary in the economy Moldova s labor force combines low-cost with high productivity, thus reflecting the key factor Source: National Bureau of Statistics 2016 Evolution of the minimum wage in the Republic of Moldova and Romania Source: National Bureau of Statistics Moldova, Romania. Moldova Romania Minimum wage in Moldova developed very slow, in some years even decreasing. In Romania, the minimum gross salary doubled in the last six years, and maintaining a clear growth trend. Minute production costs 0.24 Bulgaria 0.27 Romania 0.30 Serbia 0.38 Turkey Corporate Income Tax 0.07 Moldova PR of China 12% 15% 19% 16% Moldova Serbia Poland Romania Source: Invest in Moldova Source: PWC, Worldwide Tax Summaries

12 Average monthly wages in comparison in Ukraine 220 Moldova 368 Serbia 386 Albania 451 Bulgaria 506 Russia 521 Macedonia 576 Romania 658 Bosnia and Herzegovina 750 Croatia 801 Hungary 921 Poland 959 Czech Republic 1,025 Slovakia Source: Trading economics, wages Structure of the average salary in Moldova, 2016 (EUR)* Total Labor Cost, Personal Income Tax (PIT) (7%,18%) % if the gross annual salary is less than 29,640 MDL - 8,27 euro 18% if the gross annual salary is more than 29,640 MDL - 6,99 euro Employee Health Insurance Tax (4.5%) 9.93 Net Salary Social Fund (23%) Employee Social Security Tax (6%) Gross Salary Employer Health Insurance tax (4.5%) 9.93 Source: Invest in Moldova * There are locations with different salaries. The gross salary of 281 EUR (fully loaded or company cost) is an country average for all types of jobs. Utility costs The utility costs are lower than in the region: Electricity Water Sewerage Gas 0.10 EUR/kWh EUR/m 3 EUR/m 3 EUR/m 3 Electricity, water and sewerage is subject of change, depending on the region. Rental prices for industrial spaces: Moldova Romania Serbia EUR / m 2 EUR / m 2 EUR / m 2 In Free Economic Zones the rental price for production halls is even lower, accounting for 0.8 to 2 EUR per square meter. 10

13 Favorable location The outstanding location of Moldova and good transportation infrastructure provides easy access to both CIS and European Countries. The excellent location enables just-in-sequence and just-in-time delivery of goods. Considering Germany, it takes 2 days for truck deliveries. The longest Pan-European Corridor is passing through Moldova. Railway and road corridor IX from Helsinki (Finland), St. Petersburg (Russian Federation), Gomel (Belarus), Kiev (Ukraine), Chişinău (Moldova), Bucharest (Romania), Dimitrovgrad (Bulgaria), and Alexandroupoli (Greece) crosses the country from North to South, linking it to key trade partners. Giurgiulesti International Free Port (GIFP) Moldova is also linked to Corridor VII (Danube from Passau-Germany to the Black Sea) through the GIFP, situated at km of the River Danube, direct sea/river-borne transshipment and distribution point to and from the Republic of Moldova. A regional logistics hub on the border of the EU with access to road, rail, river, and sea. GIFP offers container, bulk, oil terminals, and forwarding services. Moldova 2 days Transportation Time China (TranSib) 23 days Germany China (Ship) 35 days A strategic location in close proximity to OEMs, Tier 1 and Tier 2 suppliers, enabling just-insequence and just-in-time delivery. No. of Country City Supplier Distance, km borders Pitesti Dacia-Renault Romania Craiova Ford Poland Hungary Bielsko Biala Fiat Gliwice GM/Opel 1,029 1 Gyor Audi 1,077 1 Esztergom Suzuki 1,000 1 Trnava PSA 1,126 1 Slovakia Bratislava VW 1,170 1 Zilina Hyndai/KIA 1,100 1 Austria Graz MagnaSteyr 1,350 1 Bosnia & Herzegovina Czech Republic Sarajevo Skoda 1,288 3 Mlada Boleslav VW 1,440 1 Kolin PSA/Toyota 1,450 1 Slovenia Novo Mesto Renault Taganrog Hyundai, GM Russia Kaluga VW, PSA, Mitsubishi, Skoda 1,290 2 Sankt Petersburg General Motors, Toyota, Nissan, Hyundai, Ford 1,690 2 Nijnii Novgorod Skoda 1,790 2 Toliatti Renault 1,

14 Competitive products Moldova provides excellent opportunities in Tier 2 and Tier 3 supplier production in the Automotive Industry. Automotive Supply Chain structure: 1st Tier (System Modul Supplier) 2nd Tier (Component Supplier) MOLDOVA 3rd Tier (Part-/Raw material Supplier) The combination of the knowledge pool, labor cost advantages, favorable tax and social security regimes, and close trade relations makes production competitive for products like: Product Description Already produced in Moldovan Automotive Industry Already produced in Moldovan General Industry Seat covers, car covers, airbags, textile parts x x Textile tapes, safety belts x Cables and wires x x Wire harnesses x PU Foam Plastic molding injection Carpets / Rugs Laminations (leather / cloth) Foundry x x x x x Metal parts lathe x x Electronics, SMT x x 12

15 SUCCESS STORIES & INDUSTRIAL COMPETENCES Briceni Ocnița Otaci Mohyliv-Podolikyi Nistru UKRAINE Prut Edineț Dondușeni Soroca Rîșcani Drochia Florești Costești Glodeni BĂLȚI Șoldănești Sîngerei Rezina Fălești Telenești Orhei Ungheni Călărași Strășeni Criuleni Iasi Nisporeni CHIȘINĂU Hîncești Ialoveni Anenii Noi Căușeni Cimișlia Ștefan Vodă Nistru Leova Odessa Prut Basarabeasca Cantemir COMRAT Tvardita Dnestrovsky Liman Belgorod Dnestrovsk ROMANIA Cahul Ceadîr-Lunga Taraclia Vulcănești Bolgrad LEGEND Focsani Shoes Carpet Garment & Knit wear Furniture Seat covers Textile tapes Buzau Rubber & Plastic injection Steel casting Pumps Construction material Electronics Galati Glass manufacturing Cardboard manufacturing Braila Metal processing Gravel & stone extraction Energetics Wires and harnesses Ceramic tiles Alcohol & bioethanol Railway Cannery Sugar Danube Regions were the biggest employers from the automotive sector are located Water bottling Izmail Food products Winery Chocolate Tulcea Bakery Kilia Branch Cigarette and tobacco Dairy products Meat processing Razim lake Beer Brandy production Pharmaceuticals Kilia Sulina Branch Sf. Gheorghe Branch Sulina Constanta Istambul BLACK SEA 13

16 Free Economic Zones The Free Economic Zones (FEZs) represent excellent platforms for businesses that are convenient to export-oriented manufacturing companies, which intend to benefit from a preferential customs and tax regime. There are 7 FEZs in Moldova, spread around throughout the country and located either near a border, or in big cities. This FEZs offer preferential conditions and a dedicated customer-oriented administration. Activities in the FEZs are limited to industrial production, packaging, trade, transportation, logistics and utilities, with priority given to manufacturing. Moreover, Giurgiulesti International Free Port and Marculesti Free Airport offer quite similar conditions to the FEZs. Free Economic Zones Incentives FEZs are connected to all important transport routes and have access to all regions through the National and International roads; Customs Office available on site: operating 7days/week; if necessary 24h/day; Exemption from customs duties and excise duties on goods imported into the FEZs and subsequently exported; VAT for equipment and machinery: 0% VAT Corporate Income Tax (CIT) rate stands at 0%*, 6% (3% in free port); Customs Duties exemption; Customs procedures tax: 0.1% (from Customs value of goods)/ outside FEZs 0.4%; 10 - years state guarantee for protection against adverse changes in legislation (15 years in Free Port); Free connection to utilites in FEZ and Industrial Parks; EUR / USD payments among FEZ residents; Exemption from Corporate Income Tax for a period of 3 years, when investing 1 million USD in fix assets of the company and/ or in FEZ infrastructure development (for 5 years, when investing 5 million USD). Minimal state inspection and control regime; Industrial Parks Industrial parks (IPs) are delimited territories in which industrial production, services provision, applied scientific research and/or technological development are carried out under some preferences. There are 8 Industrial Parks in Moldova: IP Tracom (Chisinau), IP Bioenergagro (Drochia), IP Cimislia (Cimislia), IP Raut (Balti), IP CAAN (Straseni), IP Edinet (Edinet), IP Triveneta Cavi Development (Straseni), IP Comrat (Comrat). Industrial Parks can potentially become the center for investment attraction and the place for different industrial and IT projects. Firms are given legal and consulting support in obtaining licenses, permits and approvals. Consulting services also include project development, personnel recruitment, knowledge management, marketing, etc. Incentives for Industrial Parks: Free re-zoning of agricultural into industrial land; Normative (below market) prices for the purchased land; Reduced rental price for state land; Free connection to existing infrastructure in the park; Minimal state inspection and control regime. 14

17 Tychy, PL - 771km Katowice, PL - 768km Lviv, UA - 341km Ivano-Frankovsk, UA - 215km Chernivtsi, UA - 105km MD: Criva P63 UA: Mamaliga H10 Prut H03 M14 MD: Briceni UA: Rososeni Briceni Edinet Ocnita FREE ECONOMIC ZONES & INDUSTRIAL PARKS Otaci Donduseni Mohyliv-Podolikyi MD: Unguri UA: Bronnita Soroca Nistru Kaluga, RU km Kiev, UA - 385km Vinnytsa, UA - 120km Mohyliv-Podolskyi, UA - 0.5km MD: Otaci UA: Mogiliov-Podolisc M05 M05 Baia Mare, RO - 443km Suceava, RO - 97km Bototsani, RO - 55km MD: Costesti RO: Stinca 24D Cupcini Drochia Rișcani M14 BALȚI Glodeni Falesti M14 M2 Floresti Singerei M2 Telenesti M4 Soldanesti Rezina M4 Ribnita M4 UKRAINE M13 M05 ROMANIA LEGEND FEZ Iasi, RO - 24km MD: Sculeni RO: Sculeni Border pass 24C Iasi Ungheni Arad, RO - 654km Craiova, RO - 641km Pitesti, RO - 531km Bucharest, RO - 407km MD: Leuseni RO: Albita Nisporeni Calarasi Straseni Leova Hincesti Orhei Criuleni CHIȘINAU Ialoveni Cimișlia M3 M21 Dubasari M14 Anenii Noi Grigoriopol M4 Causeni TIRASPOL M14 M4 Slobozia Stefan Voda Nistru M05 Odessa, UA - 77km MD: Palanca UA: Udobnoe FEZ Subzone Industrial Park i Airport Sea / river port Route number 24 Prut Cantemir Basarabeasca COMRAT Tvardita MD: Basarabeasca UA: Serpniovoe 1 MD: Tudora UA: Starokazacie Dnestrovsky Liman FEZ location name FEZ Otaci Business FEZ Marculesti Hub Airport (Floresti) FEZ Balti FEZ Balti/ Subzone Straseni FEZ Balti/ Subzone Causeni FEZ Balti/ Subzone Orhei FEZ Balti/ Subzone Cahul FEZ Ungheni Business FEZ Expo Business Chisinau FEZ Tvardita FEZ Taraclia FEZ Valcanes (Vulcanesti) FEZ Giurgiulesti Free International Port Timisoara, RO - 697km Craiova, RO - 481km Pitesti, RO - 370km Bucharest, RO - 255km Constanta, RO - 215km Galati, RO - 10km MD: Giurgiulesti RO: Galati Giurgiulesti Cahul 22E Danube Ceadir-Lunga Taraclia MD: Giurgiulești UA: Reni MD: Mirnoe UA: Tabachi Bolgrad MD: Vulcanesti UA: Vinogradovca Izmail MD: Ceadir- Lunga UA: Novie Troiani Kilia Branch Kilia Briceni 240 km 5 h Soroca 156 km Buzau 2.5 h Balti 136 km 2.5 h Main distances in km and hours (h) 1 h Straseni 25 km Chișinău Tulcea 2 h Causeni 70 km Razim lake Sulina Branch Sf. Gheorghe Branch 2 h Comrat 105 km Sulina 4 h Constanta Istambul Cahul 170 km 5.5 h BLACK SEA Giurgiulesti 225 km

18 Invest in Moldova helps you We will assist you in setting up your operations in Moldova. We support your project management activities from the earliest stages of your expansion strategy. We provide you with the industry information you need. This includes facts about the industrial competences throughout Moldova s regions, as well as available sourcing and supply companies. Foreign companies profit from our rich experience in identifying the business locations which best meet their specific investment criteria. We help turn your requirements into concrete investment site proposals; providing consulting services to ensure you make the right location decision. We coordinate site visits, meetings with potential partners, relevant existing investors, universities, colleges, vocational schools and other institutes active in the industry, as well as meetings with relevant embassies, business associations, government officials and other authorities. Our team of consultants is at hand to provide you with the relevant background information on Moldova s tax and legal system, industry regulations, and the domestic labor market. Invest in Moldova experts help you create the appropriate financial package for your investment and put you in contact with suitable financial partners. Our specialists provide you with detailed information about available incentives, support you with the application process, and arrange contacts with local developers. All of our investor-related services are treated with the utmost confidentiality and are provided free of charge. STRATEGY EVALUATION DECISION & INVESTMENT PROJECT MANAGEMENT ASSISTANCE AND PROVIDING INFORMATION Identification of sector-specific investors General data and statistics for investor feasability study support Sector-specific details & information of legislation Joint project management assistance together with FEZs & IPs administration Coordination and support of negotiations with local authorities LOCATION CONSULTING / SCOPING MISSION SUPPORT Identification of project-specific locations Identification of sourcing opportunities Information on suitable locations Relevant site presentation and preselection Site visit organization Arranging meetings with public authorities, relevant private sector representatives Final site decision support AFTERCARE / POSTINVESTMENT SUPPORT SERVICES Identification of and general information on relevant tax, legal and administrative issues Connecting with relevant recruitment, legal, tax and other consulting companies Facilitation and communication with public local and central authorities, as well as relevant private sector representatives Advice on administrative and legal issues Supporting investors and associations in their efforts to improve the business climate 16

19 We started our business in Moldova in 2007 and since then have continuously expanded operations. Moldova proved to have great potential for the development of our project within the Free Economic Zone in Balti, with excellent support by local and central authorities. Guido Meinelt Plant Manager at DRA Draexlmaier Automotive SRL Ungheni and its free economic zone, where Lear Moldova is placed since 2010, confirmed itself as a well performing and competitive plant. The geographical position (30 km from EU border), the proximity to the European customer base and suppliers, as well as the dedicated labor force are the right ingredients for a success story. Sven DAMM, VP of Trim Operations for Europe & Africa The international growth of G&G requires a good choice of regions for our plants. We look for availability of motivated staff, safety and good cooperation with authorities. All of these factors made Moldova to a strong match. We are very satisfied with the conditions in Balti and are happy to increase our foot print soon. Nikolaus Griller Managing Director, Sales and Innovation Management Moldova has a competitive country profile, providing good opportunities for business development. These are multiplied by the willingness of Authorities and such Intuitions as MIEPO and GIZ of collaboration with the foreign investors, in order to contribute to the economy growth. This makes a solid foundation for a long term partnership between the Foreign Investor and the Country Society. Angela Piliughin Business Expansion Director Fujikura Automotive Europe & Administrator of Fujikura Automotive MLD SEBN aims to implement a long term project in Moldova, which confirms that the country is attractive for the automotive industry with available workforce, necessary infrastructure for its development and openness to foreign investment. Through early engagement and strong collaboration with the Parliament, Government and local authorities, it was created a Free Economic Zone in Orhei, which provides favorable conditions for a successful activity. Oliver Schacht, Member of the Board, COO, SEBN SE Igor Corman, Administrator of SE Bordnetze SRL Since 2007 we work in Moldova and our experience is very positive. The strategic location and proximity to the European Union, the great manufacturing tradition of workers and the direct relations with local and central institutions of the capital Chisinau ensure excellent base for any foreign investor. Franco Fuccini, Head of Moldova Operations of Kab-Lem Group franco.fuccini@kablem.com Andrea Bobbo, Sales R&D Manager

20 Contact us: 65 Alexei Mateevici str., Chişinău, Republica Moldova, MD-2009 Tel: Fax: MIEPO 2016 The Moldovan Investment and Export Promotion Organization (MIEPO) is the prime source of information and assistance for potential investors. We provide tailored services for potential investors throughout the investment decision process. We also support existing investors in extending their operations. Our team consists of permanent investment attraction staff, sectorial consultants, as well as regional officers. Combining our experience, we are able to provide you with information relevant for your decision making, as well as links to businesses and government. We decide to open a new production plant in Moldova for a good strategic position and a reasonable labor cost. Local and central Government authorities offer entire support in investment and business activity. Gregorio Isgrò Administrator at CONFEZIONI ANDREA MDV S.R.L. 2000km Sankt Petersburg 1500km Nijnii Novgorod 2000km 1000km Kaluga 1500km Minsk Tolyatti Pamplona Paris 2000km Genk Bremen Poznan Wolfsburg 1500km Leipzig Glewice Katowice Mlada Boleslav 1000km Kolin Lviv Sindelfingen Bratislava Munchen Esztergom Gyor Oradea Graz Pecs Timisoara Novo Mesto Turin Pitesti 1000km 500km 500km Sarajevo Craiova 500km Kiev Balti MD Chisinau 500km 1000km 500km Zaporoje 1000km 500km 1500km 2000km Valls 1500km Bursa 2000km 1000km