Other State Department Archive Sites

The State Department web site below is a permanent electronic archive of information released online from January 1, 1997 to January 20, 2001. Please see www.state.gov for current material from the Department of State. Or visit http://2001-2009.state.gov for information from that period. Archive sites are not updated, so external links may no longer function. Contact us with any questions about finding information. NOTE: External links to other Internet sites should not be construed as an endorsement of the views contained therein.

Country Commercial Guides FY 2000: Moldova Report prepared by U.S. Embassy Chisinau, released July 1999 Note*

Chapter V: Leading Sectors for U.S. Exports and Investment

A. General

U.s. exports to Moldova grew by a modest 4.5 percent in 1998 and reached $21 million, compared with $20 million in 1997. The leading U.S. exports were meat products, vehicles, and machinery. U.S. imports from Moldova doubled in 1998 and reached $112 million, compared with $51 million in 1997. Leading U.S. imports were iron and steel products, woven apparel, and preserved food.

In 1998, the government of Moldova established the national agency for attracting investment. The agency has determined these priority areas for foreign investment: tourism (health spas, hunting, picturesque and historical places, and wine tourism); transport (transportation of goods, tourism, and warehousing); agriculture (food processing, wine, tobacco, vegetable, corn and soya oil, milk and meat production); construction materials; and light industry. Moldova is particularly keen on attracting hi-tech investment.

The state established and owns the bank for development and investment, which was established in late 1997 to help attract foreign investment and support small and medium enterprises.

B. Significant Investment Opportunities

1. Moldtelecom

The privatization of Moldtelecom, the state-owned national telecommunications company, represents a major investment opportunity for American companies in Moldova. In December 1998, the Moldovan parliament approved a plan for reorganization and privatization of Moldtelecom, whose statutory capital amounts to ML 980 million ($85.6 million). Under the document, Moldtelecom will be reorganized into a joint-stock company and privatized through an international tender.

The reorganization and privatization of Moldtelecom will be carried out in three stages. During the first stage the Moldovan cabinet will select a consulting company to prepare Moldtelecom for sale. During the second stage, 51 percent of the company's shares will be sold to a strategic investor. The final stage will include implementation of the investment plan for the next five years, including an increase of the telecommunications network by up to 25 percent and network modernization. The investor will be granted an exclusive right to render local and international telephone services for five years after the privatization. The investor will also have an advantage in the licensing process for providing cellular services.

2. Other Privatizations

In 1999, the government plans to sell 51 percent of stock in the country's eight electricity companies, of which 5 are regional power distribution enterprises and 3 are main power generating plants. It also plants to privatize tobacco and wine industry enterprises. In addition, in 1999 Moldova will privatize Moldcarton, a cardboard and packaging producer for Moldova's agroindustrial sector; two furniture factories; the footwear factory Zorile; the construction materials producer Karyer Ozyornoye; the agricultural company Moldagrotechnica; and the chemical plant Biochemichesky. A potential investor will be offered a controlling interest in these enterprises.

Privatization of agricultural land continues; however, foreigners are not permitted to purchase this type of land.

3. Transportation

The transportation sector represents a number of opportunities for American investors such as repair services, remanufactured parts, and supply of new and used automobiles (in particular, buses and minivans). At present, Moldova has a total of 1800 buses for transportation of population and at least 30 percent of them need to be replaced.