Opinion on the New Law on Investments

From FIA Moldova’s perspective, the new legal framework for investment is a necessary step towards making the Republic of Moldova more competitive in attracting capital. We welcome the introduction of instruments such as strategic investment status, incentives for large-scale projects, one-stop-shop mechanisms, and the possibility of entering into investment agreements with the Government. However, it is essential that these instruments be applied transparently, predictably, and without discrimination.

For investors already operating in Moldova, the key question is whether reinvestments and expansion projects will be eligible for the same treatment when they meet the same criteria in terms of value, impact, and economic relevance. FIA Moldova is not advocating for privileges for existing investors, but rather for equal access to the mechanisms provided by law. The new framework should not create competitive disadvantages for companies that have already invested in Moldova and are prepared to invest further.

A more favourable legal framework can indeed be an important tool in the regional competition for investment. However, it cannot, on its own, compensate for shortcomings elsewhere in the investment ecosystem. Investors assess several factors simultaneously, including fiscal and regulatory predictability, the quality of institutions, access to skilled labour, infrastructure, energy availability, market access, and regional risk. Equally important are the quality of dialogue between the authorities and the business community, as well as the state’s ability to apply the same rules consistently.

In its current form, the Association considers that three important aspects require further clarification: explicit recognition of reinvestments and expansion projects by existing investors; objective and transparent criteria for granting incentives and concluding investment agreements; and clear administrative timelines, together with limiting discretionary decision-making.

For Moldova, the most compelling investment credentials remain the experience of investors already operating in the country. An investor who can say, “I was treated fairly, I had predictability, and I am ready to invest again,” is the strongest argument for attracting further investment.

Ana Groza
Executive Director
Foreign Investors Association (FIA)

Source: www.businessclass.md.