Nikolai Trikolić
High Costs
According to Tricolici, manufacturing already accounts for about 8% of Moldova’s GDP, and if nothing changes, it could continue to decline—to 6%, 5%, or 4%—at which point manufacturing in the country risks virtually disappearing.
“Manufacturers pay 20% (VAT—Logos Pres note); they don’t ask for tax breaks. We pay customs duties on raw materials, which is completely absurd. I looked for countries in Europe where such a duty is also levied, but found none. A customs duty on raw materials means that we don’t want manufacturers to remain in the country. We’ve reached the point where we’re paying an environmental fee. What has the Ministry of the Environment done? It has created an absurd situation. In many cases, the environmental fee exceeds the cost of the products we purchase from manufacturers by 150–200%,” Tricolici said indignantly.
Modernization Using Our Own Funds
He cited Moldova’s preparations for accession to the European Union as another major challenge for businesses. Manufacturers need to upgrade their equipment and adopt modern technologies, since a significant portion of the existing equipment no longer meets future requirements.
“Apart from Supraten, there are two or three companies in our industry that can do this using their own resources. But we’re wondering: should we do it or not? We are not eligible for funding to modernize production. In other words, manufacturers who are still operating in Moldova are forced to find resources on their own, while the government supports new entrants,” noted Nicolae Tricolici.
Tricolici warned that the emergence of new companies with modern technologies, combined with low capacity utilization at existing enterprises, could lead to a price war and unprofitable operations.
“Am I supposed to send 900 people home?” he asked, referring to the possible consequences for the company’s employees.
Government Support for Industry
In response to the criticism, a proposal was made to diversify economic activity. At the same time, Natalia Selevestru, State Secretary of the Ministry of Economic Development and Digitalization, stated that manufacturers have already been given the opportunity to apply for government aid.
According to her, a moratorium had previously been imposed on the government’s decree regarding the state aid scheme for industrial investments. This was done to clarify the provisions of the scheme, which was developed with the direct support of the European Commission.
“On Wednesday, August 19, the amendments to the decree were already approved; today they were published and have entered into force. You have every right to submit an application,” Selevestru said.
