From its rapid progress towards EU accession to the anticipated reconstruction of neighbouring Ukraine, factors are aligning to make Moldova an attractive destination for foreign direct investment, says Natalia Bejan, director of the Invest Moldova agency, in an interview with bne IntelliNews. 

A key part of this is that Moldova is racing towards its EU future. With talks on accession gathering pace and a government that has ambitions to join the bloc as early as 2028, the small, landlocked country is increasingly economically intertwined with its western neighbours.

Already, 85% percent of the country’s foreign direct investment stock already comes from EU countries, and 67% of its exports go to the bloc, according to Bejan. “Even though we are not yet a member, our economy is very much integrated [with the EU],” she says. "EU countries and the EU as a whole are absolutely our most important economic partners.” 

For a country long seen as stuck between Russia and the West, the shift towards EU integration has been rapid, and Bejan speaks of a “momentum of optimism” as Moldova pushes to meet the reforms required for EU membership. The government has officially set a 2030 target but Prime Minister Dorin Recean recently floated an even more ambitious goal of 2028.

Optimism despite headwinds

Officials are optimistic despite some clear challenges facing Moldova. The war in neighbouring Ukraine has dampened regional growth and highlighted security risks — more so among investors who are less familiar with the region. As Bejan points out, the war is just a few tens of kilometres away from the Moldovan capital Chisinau, and the two countries share a long border. Moldova was one of the countries worst-hit economically by the war in Ukraine and ensuing energy shocks. High energy prices remain a drag on the economy, and in particular on exports, despite the ongoing overhaul of the sector. 

“Of course, there are many difficulties — the war in Ukraine, the economy isn’t yet growing as fast as we want, we still have a huge portion of the population which lives abroad. But we live in a moment of optimism regarding EU accession,” she says. 

There is a general election coming up this month which, Bejan points out, is "extremely important for us to make sure the team working on EU accession remains very dedicated”. Still, whatever the result of the general election, following a referendum in 2024, EU membership has been enshrined as a strategic goal in Moldova’s constitution. The country’s direction, says Bejan, “is already decided by the people of Moldova”. 

Moldova’s small size — it has a population of just 2.4mn according to official statistics — and high levels of emigration have often been cited as drawbacks. However, according to Bejan, for foreign investors, size is proving an advantage. “You are literally one handshake away from any decision-maker,” she said. “That means direct access to information, to assistance, to potential partners. In larger economies it’s not so easy.”

Bejan speaks of the Invest Moldova agency “being a nanny to every investor”, starting from general country presentations, to helping investors with hiring people and finding production sites, potential suppliers and partners. "We can provide assistance with all of that.” 

The war next door 

Immediately after Russia’s invasion of Ukraine, there were fears instability could spill over into Moldova. That has not happened. Instead, the war in Ukraine has brought new opportunities, as companies eye Moldova as a potential base to supply the reconstruction. 

"There are investors who have become much more interested, who maybe never thought of Moldova, but now are thinking about it in the context of rebuilding Ukraine. We have investments happening in Moldova, especially in construction materials that have become possible because of this circumstance,” she says. 

“Now Ukraine needs support — and in the future they will need even more support, first of all this horrible war has to stop — Moldova has the chance to play a role and we have to be prepared.” 

Construction materials firms from Romania and Germany have already set up in Moldova to position themselves for eventual reconstruction work in Ukraine.

In 2024, Romania’s ROCA Industry, already present on the Moldovan market since 2022, announced plans for a strategic expansion in the country, to meet rising local demand as well as supplying Ukraine. 

German construction engineering company Obermeyer Group also set up an office in Moldova, which it sees as a base to serve Ukraine and potentially other former Soviet countries. 

Meanwhile Moldova is courting nearshoring manufacturers keen to move production from Asia to Europe. Its status as a candidate state — close to the EU single market but not yet bound by all its regulations — can be a selling point, Bejan argues.

“We have companies that are considering relocating from Asian countries to Europe, and for them locating business in Moldova is an advantage,” Bejan tells bne IntelliNews. 

“Being part of the EU is generally regarded as a very good thing, but sometimes not yet being part of the EU — not yet having all the regulations but being right at the border, getting prepared and getting more and more trustworthy — can be very attractive.” 

To take advantage of these opportunities, Moldova is upgrading transport links. There are plans for new bridges to Romania, investments in a second airport and the expansion of the country’s existing airport in Chisinau. “We need to be better connected so investors feel comfortable from a logistical perspective,” Bejan said.

Investor incentives 

Chisinau is also offering fiscal incentives to draw in investors. The flagship IT Park, which offers a flat 7% tax, has attracted a growing cluster of domestic and foreign tech firms. Parliament recently guaranteed the scheme through 2035.

A new industrialisation programme targets six priority sectors: construction materials, textiles, food processing, pharmaceuticals, chemicals, automotive and electronics. Approved investors committing at least €500,000 can have up to 60% of their outlay reimbursed via grants and tax breaks. Early applications have already exceeded expectations, backed by €100mn in EU support.

Overall, foreign direct investment stock has risen to about $5.5bn, with over 70% coming from reinvested profits. Romania has emerged as the fastest-growing source of capital, while legacy investments from Cyprus and Russia still register on the books.

From orchards to operating rooms

Chisinau is now eyeing higher value production, with a focus on the six priority sectors — selected because they are seen as having the potential to create the highest added value. 

Bejan specifically highlights the potential in the agribusiness sector, describing it as Moldova’s “hidden treasure” for investors. “Many investors are looking for sectors where there is an abundance of raw materials and you only lack investments to process it and add the value,” she says. 

Moldova is the world’s top exporter of plums to the EU and a top-20 global producer of cherries and apples, yet much of its fruit is sold raw. Bejan hopes new processing plants will help capture more value.

“We have great soil in Moldova and an abundance of sun, but we are missing sufficient investments in processing, so the majority of exports are in the raw form,” she explains.  

Separately, Bejan outlines the country’s potential in the services sector — not just areas like business process outsourcing but also niches such as education and medical care. “We would like Moldova to become mainly driven by services,” she says. 

Unexpectedly, medical tourism is becoming a booming segment of the market. Bejan describes this as “an area that is going to be more and more visible … Medical services export is making a bigger and bigger contribution to our GDP.” The phenomenon is a recent one; in just the last few years dental clinics and IVF centres, among others, have started drawing large numbers of patients from Italy, the UK and Israel, and Moldova recently became the president of the International Council of Medical Tourism.

Taking advantage of the diverse range of niches outlined by Bejan, Moldova is starting to carve out a role as a nimble, EU-oriented economy, taking advantage of the broad range of niches outlined by Bejan. If Chisinau maintains reform momentum and leverages its strategic position between the EU and Ukraine, it has the chance to transform today’s “moment of optimism” into a durable growth story.