|                                                                                                                                                                                     |  | MOLDOVA AGENCY PROMOTES FOREIGN INVESTMENT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
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|**BISNISHome PageSearchBISNISEmbassyReportsCountryReportsIndustryReportsCustomsCornerPublicationsSourcesof FinanceFinanceLinkLeadsand EventsExchangeRatesState ExportsOtherSources** |  | March 1999by Helen MidoriWedged between Romania and Ukraine, Moldova is taking gradual steps to attract Western trade and
investment. Although often overlooked by investors, Moldova boasts fertile soil, a highly skilled work force,
underutilized production facilities, and a relatively low crime rate. Moreover, the Government of Moldova
is actively promoting economic reforms and an aggressive policy aimed at attracting investment. (In October
1998, the presidents of Ukraine and Romania traveled to Chisinau to discuss the creation of the Lower
Danube Euroregion, a free economic zone that would offer value-added tax and customs duty exemptions
to potential investors.)Moldova's National Agency for Attracting Investment (NAAI) has helped foreign companies trade
and invest in Moldova since it was established in December 1997. As part of its effort to attract foreign
investment and project financing to Moldova, the agency has developed a wide range of information,
consultancy, and legal services. U.S. companies active in Moldova or considering Moldova's market may
find that NAAI can expedite their efforts.Goals
NAAI is a nonprofit government organization with a mandate to coordinate and review investment
projects and assist foreign investors on behalf of the Moldovan Government. The agency's goals are as
follows:Attract foreign investment to Moldova's privatization program;Help foreign investors, local authorities, and domestic companies to work together more
effectively;Coordinate and implement various investment projects as part of the credits or technical aid
granted to Moldova by international investment and financial institutions; andReview investment proposals and provide information, consulting, and legal services to
foreign investors in Moldova.
According to Chiril Lucinschi, general director of NAAI, Moldova presents an attractive commercial
environment, despite many barriers to investment. Lucinschi adds that the government's investment policy,
and NAAI as an implementer of that policy, is designed to promote Moldova's existing positive conditions
and to diminish barriers to investment. 
NAAI works closely with the Ministry of Privatization, State Property Administration, and other
federal and local authorities. In addition to promoting foreign investment in Moldova, the NAAI actively
cooperates with various international and domestic organizations, including the International Monetary
Fund, the World Bank, the European Bank for Reconstruction and Development, the Moldovan
Chamber of Commerce and Industries, and the Moldovan Agency for Restructuring of Enterprises.
Services
NAAI publishes Investment Guide on Moldova, a handbook of essential information on the country's
investment policies and a source of information on economic, commercial, and legal developments. The
guide also includes a list of useful contacts and addresses, as well as tips for investors on how to do business
in Moldova. 

The agency can assist foreign companies with market research in a specific product or industry sector
and with locating potential buyers, suppliers, and distributors. It also promotes new investment opportunities
in agribusiness, transportation, construction, power generation, and other industries. The agency is currently
developing a website to promote investment in Moldova and to provide time-sensitive information to
potential investors.

One of NAAI's greatest strengths is its expertise in preparing documentation for investment projects and
in keeping projects on track as they move through the maze of government ministries and local
bureaucracies. NAAI's legal services also include assistance with the registering of foreign companies.

The agency is also actively involved in Moldova's privatization program. Privatization currently focuses
on the sale of state-owned assets through tenders or cash auctions. The agency can provide consulting
services on the specific enterprises put up for privatization and assist in developing privatization plans for
enterprises. 

For more information on the Moldovan National Agency for Attracting Investment, contact NAAI at tel:
+373 (2) 232-484, 232-467 or tel/fax: +373 (2) 233-197. For more information on Moldova, visit BISNIS Online
at www.mac.doc.gov/bisnis/country/wstnis.htm#Moldova.Helen Midori represents BISNIS at the U.S. Embassy in Chisinau.This report is provided courtesy of the Business Information Service for the Newly
Independent States (BISNIS)