The relations between Vietnam and Moldova have been growing well. Both countries regularly support and coordinate well together at international and regional forums. Vietnam always attaches great importance to maintaining and promoting the traditional friendship with Moldova. Vietnam Business Forum interviewed Mr Anatol Urecheanu, Ambassador of Moldova to China and Vietnam, on the occasion of his recent official visit to Vietnam. Thu Ha reports.
How do you assess the cooperation of Vietnam and the Republic of Moldova in recent years?
Since the establishment of diplomatic ties between Vietnam and Moldova, bilateral relations have advanced gradually, being based on traditional friendship. Our countries developed a permanent political dialogue, exchange of official and working visits were conducted on a regular basis. Also both countries successfully cooperate in the United Nations Organisation and International Organisation of Francophonie.
Compared to our political dialogue, economic interaction between the business representatives of our states have decreased in the last couple of years due to some objective circumstances. One of these causes was the world financial crises that affected each country and the instability of the global recovery. However, in 2013 we have seen a positive development of bilateral trade: Moldova exports to Vietnam increased by 7 times, and exports of Vietnamese products to Moldova grew by 6 percent. To reset the economic cooperation, in my recent talks with officials from the Ministry of Industry and Trade and Foreign Affairs Ministry, we agreed that both sides will undertake substantial efforts to organize in the upcoming future a new session of the Intergovernmental Commission on Economical, Commercial and Technical scientific cooperation, as well as political consultations.
I am confident that much more can be achieved in the near future through mutually beneficial cooperation and permanent dialogue.
In your opinion, what sectors would be advantageous for cooperation between the two countries?
There are at least a few important sectors where our countries could initiate a comprehensive economic cooperation. First, is agriculture – Moldova is famous for its high quality agricultural products that have a diverse export geography. At the same time Moldova is one of the largest wine producers in the world, our wines are being exported including to Asian countries and we look forward to enter the Vietnam market as well. Development of the tourism industry is also an avenue that can be explored by our countries.
I also encourage Vietnamese companies to look into the export possibilities of their traditional products to the Republic of Moldova. We also see important potential in expanding our cooperation in information and experience sharing on the use of agricultural technologies, building efficient irrigation systems, grow of high productivity crops.
We are also aiming to encourage the development of the relationship at local levels. In this regard we launched fruitful talks with Da Nang People’s Committee on the issue of establishing a brotherhood relation between Da Nang city and one of the cities from the Republic of Moldova.
We are very much interested to continue and intensify the practice of organizing bilateral trade missions that provide good ground for the businessmen to promote their goods, products and services.
Could you talk about the main advantages and difficulties in cooperation with Vietnam?
The Republic of Moldova has a strong interest in development of bilateral relations with Vietnam. This particular interest is dictated by real conditions and willingness of the business community to discover new markets and develop partnerships with the companies in Vietnam. Thus, I am confident that the governments of both countries will support such initiatives.
Among the barriers than we face is of course absence of permanent diplomatic representation in Hanoi and Chisinau, absence of an Honorary Consul in Vietnam, and I hope this person will be identified in the upcoming future. I add that reduced intensity of minister’s level visits and insufficient contacts among the business community is also a point in our bilateral relations.
As well I look forward to intensifying the contacts between the chambers of commerce of the Republic of Moldova and Vietnam, taking into consideration the interest of both countries to enhance ties with the European Union. In this purpose, I would like to underline that the Republic of Moldova has advanced substantially towards European Union Integration in this year. Since April, EU liberalised visa regime for citizens of the Republic of Moldova. As of September 1st, the Deep Comprehensive Free Trade Agreement entered into force. Moldova-EU dialogue is evolving to a totally new level and based on this fact we encourage Vietnamese business to take advantage of the existing opportunities and lucrative business environment that is currently being rapidly developed.
Can you tell us more about the Moldova wine festival that will be held in Hanoi, Saigon and Da Nang next year?
Next year, in close cooperation with the Vietnamese Chamber of Commerce and Industry, local administration from Hanoi, Da Nang and Ho Chi Minh City, together with famous wine producers from the Republic of Moldova plan to hold wine tasting events in order to identify potential partners and familiarize local consumers with Moldovan wines.
These events are very important for the Republic of Moldova because wine industry plays an important role in our national economy. It generates about 10 percent of GDP, as close to 90 percent of wine produced in the Republic of Moldova is exported to the world market. The CIS states have been traditional markets for the Moldovan wine for centuries, currently accounting for 68 percent of the total exports, compared to 90 percent in 2004.
The Republic of Moldova is a big wine maker, among the top 10 countries in the world. The Republic of Moldova has 112,000 vineyards planted with over 30 varieties. There are 4 historical wine regions, three of which are designed for the production of wines with protected geographic indication: Valul lui Traian (south west), Stefan Voda (south east), Codru (centre), and Balti (North). Also, we have the biggest wine collection in the world with over 1.5 million bottles store at Milestii Mici underground limestone galleries stretching over a total length of 200 km and 80 meters depth. These outstanding cellars stretch over 55 km of galleries where technological production processes are carried out, and some other dozens of km where wine is maturated in barrels and bottles. One may travel through the galleries by car, by bicycle or walk on the streets called “Feteasca” or “OIV”, observing traffic rules. Situated 11 km away from the capital Chisinau, the limestone undergrounds, at 35-80 m depth, house 30 million liters of wine at a constant temperature of 12-14 ˚C and +97-98 percent humidity. Founded in 1952, „Cricova” is the biggest Moldovan producer of sparkling wine using the traditional method; the wine ageing is done fully in the underground cellars. The “National Vinotheque” is kept at Cricova; this is an outstanding collection of legendary wines both local and foreign. The oldest wine in the collection and the only one of its kind in the world is the wine “Easter Jerusalem”, produced in just one batch in 1902. Cricova cellars are an attraction for thousands of tourists and also for personalities, politicians, opinion leaders and famous people all over the world. It was visited by Iurie Gagarin, Angela Merkel, John Kerry, etc. Cricova has been declared a national cultural patrimony by law.
A strategic objective of the Moldovan wine industry is to diversify its exports by expanding its presence on the Western and the emerging markets: among which is of course Vietnam. This is why in the upcoming future, Moldovan wine companies will be more proactive towards expanding their wine export geography to the East.
What makes the economy of the Republic of Moldova attractive to Vietnamese companies, beyond opportunities offered by the DCFTA?
The Republic of Moldova took major steps to boost and diversify its economy over the past years. Structural and ongoing reforms have substantially improved the business climate and enhanced the country’s competitiveness. The National Development Strategy "Moldova 2020" aims at orientating the country towards a dynamic model based on local and foreign investments and development of export-oriented industries. To give some examples in this regard: open door policy for investors in any sector; Privatization process set as a priority in a recent agreement signed with the International Monetary Fund (IMF); Reinforcement of Moldova’s attractiveness - reforms in the country's infrastructure and economy, harmonization of legislation with EU norms, human resource retention and education; Top investor countries - Netherlands, Cyprus, Italy, Russia, France, United Kingdom; Corporate income tax - 12 percent, incentives available for investors; Income tax - 7 to 18 percent, possible exemptions for foreign personnel; VAT rate - 20 percent, VAT reimbursement on export activities.
At the same time, we have a signed a number of Free Trade Agreements with 9 Commonwealth of Independent States; European Union, CEFTA, and Turkey (expected this year). Thus I would like to mention that favourable conditions for investors, plus direct access to EU and CIS market, and decisive steps undertake by the Government of the Republic of Moldova towards improvement of the investment climate, are solid arguments for Vietnamese companies to conduct business in the Republic of Moldova, and through my country with EU and CIS.
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