ORDER OF THE GOVERNMENT OF THE REPUBLIC OF MOLDOVA

of February 1, 2007 No. 111

About approval of Strategy of support of development of domestic trade in the Republic of Moldova for 2007-2009

For creating favorable conditions for development of domestic trade, and also for ensuring adequate level of consumer protection the Government DECIDES:

1. Approve the Strategy of support of development of domestic trade in the Republic of Moldova for 2007-2009 it (is applied).

2. To the ministries, other central administrative authorities and bodies of local public authority annually, till February 15 to provide to the Ministry of Economy and Trade information on implementation of provisions of Strategy in previous year.

To the Ministry of Economy and Trade to generalize the acquired information and to submit to the Government for review and approval annually, till May 1, the annual statement about implementation of Strategy of support of development of domestic trade in the Republic of Moldova for 2007-2009.

3. To national bureau of statistics:

together with the Ministry of Economy and Trade to enhance set of statistical data for monitoring of evolution of domestic trade and to provide collection, conversion and data presentation about development of this sector;

represent to the Ministry of Economy and Trade annually, till April 1, information on evolution of domestic trade in the Republic of Moldova (by sectors) for previous year.

4. To assign monitoring and coordination of implementation process of Strategy of support of development of domestic trade in the Republic of Moldova for 2007-2009 to the Ministry of Economy and Trade.

Approved by the Order of the Government No. 111 of February 1, 2007

The strategy of support of development of domestic trade in the Republic of Moldova for 2007-2009

INTRODUCTION

The strategy of support of development of domestic trade in the Republic of Moldova for 2007-2009 (further - Strategy) represents the regulatory base for the medium-term period for ensuring sustainable development and determination of the priority directions of development of sectors of domestic trade of the Republic of Moldova. This document is basis for development and deployment of programs and action plans of the central industry bodies of public management involved in process of coordination and monitoring of activities of the companies of domestic trade, and also bodies of local public authority which function includes issue of permissions to trading activity.

Development of this Strategy was caused by need of systematization of the activity undertakens aimed at providing development and stimulation of organized and legal trade in the Republic of Moldova and also guaranteeing achievement of stable and steady results owing to their realization.

Acceptance of Strategy is caused by systematic approach to process of implementation of the strategy and state programs concerning trading activity.

This Strategy is intended to determine the main priorities in development of legal and institutional bases in the field of domestic trade and to provide increase in level of protection of domestic consumers on the basis of the application of practice and requirements specific to the western countries.

This Strategy establishes strategic directions of activities which will be realized by the Government and structures of the central and local public authority for the purpose of simplification of development and legalization of domestic trade and ensuring due level of protection of local consumers. At the same time Strategy determines role and extent of intervention of the state in regulation of domestic trade and pricing proceeding from premises of stimulation and support of the principles and values of market economy.

In the course of development of Strategy the existing situation in trade, experience of the western countries, need and possibility of application and implementation of requirements and the European values in the field of domestic trade and consumer protection was taken into account.

The main objectives of Strategy are:

growth of the gross value added made in trade;

growth of specific weight of organized trade and gradual legalization of illegal trade;

increase in contribution of trade to forming of the government budget on the basis of creation of new employment opportunities of labor power and growth of the income of the population;

creation of the steady and competitive companies in the field, including in the rural zone.

I. ANALYSIS AND DYNAMICS OF DEVELOPMENT OF TRADE

Retail and wholesale trade has special value for national economy of the Republic of Moldova, and annually its contribution to forming of the gross domestic product averages % 11,2. In spite of the fact that for several years the gross value added in trade constantly increased, its specific weight in GDP gradually decreases.

Growth of total amount of retail sales with 6,0 of one billion lei in 2000 to 19,5 of one billion lei in 2005 (2,1 times more) and high-quality improvement of its structure are caused:

growth of specific weight of cash incomes in forming of total income of the population that influenced increase in consumer capability of the population;

growth of sales of nonfoods in total amount of retail sales that is caused by growth of their specific weight with % 54,8 in 2000 to % 63,8 in 2005;

growth of specific weight of organized trade in total amount of retail trade with % 53,1 in 2000 to % 54,4 in 2005 (@1,3 of items).

Table 1

Evolution of domestic trade in 2000-2005.

(one million lei)

+------------------------------------------------------------------+
¦                  ¦2000 г.¦2001 г.¦2002 г.¦2003 г.¦2004 г.¦2005 г.¦
+------------------+-------+-------+-------+-------+-------+-------¦
¦Объем чистых      ¦14128,8¦16215,5¦18636,5¦26044,2¦31060,2¦40845,2¦
¦продаж в оптовой и¦       ¦       ¦       ¦       ¦       ¦       ¦
¦розничной торговле¦       ¦       ¦       ¦       ¦       ¦       ¦
+------------------+-------+-------+-------+-------+-------+-------¦
¦Вложение наличных ¦       ¦       ¦       ¦       ¦       ¦       ¦
¦денег в банковские¦ 4753  ¦ 6174  ¦ 8120  ¦11258,8¦13752,5¦ 18077 ¦
¦учреждения от     ¦       ¦       ¦       ¦       ¦       ¦       ¦
¦продажи           ¦       ¦       ¦       ¦       ¦       ¦       ¦
¦потребительских   ¦       ¦       ¦       ¦       ¦       ¦       ¦
¦товаров,          ¦       ¦       ¦       ¦       ¦       ¦       ¦
¦независимо от     ¦       ¦       ¦       ¦       ¦       ¦       ¦
¦каналов реализации¦       ¦       ¦       ¦       ¦       ¦       ¦
+------------------+-------+-------+-------+-------+-------+-------¦
¦Общий объем       ¦6012,0 ¦7612,4 ¦10753,4¦14537,8¦16575,8¦19487,7¦
¦розничной торговли¦       ¦       ¦       ¦       ¦       ¦       ¦
+------------------+-------+-------+-------+-------+-------+-------¦
¦     из которых:  ¦       ¦       ¦       ¦       ¦       ¦       ¦
+------------------+-------+-------+-------+-------+-------+-------¦
¦торговые          ¦3193,7 ¦3792,1 ¦4954,6 ¦6869,7 ¦8338,8 ¦11030,8¦
¦предприятия       ¦       ¦       ¦       ¦       ¦       ¦       ¦
¦(организованный   ¦       ¦       ¦       ¦       ¦       ¦       ¦
¦сектор)           ¦       ¦       ¦       ¦       ¦       ¦       ¦
+------------------+-------+-------+-------+-------+-------+-------¦
¦рынки             ¦2818,3 ¦3820,3 ¦5798,8 ¦7667,3 ¦8237,0 ¦8456,9 ¦
¦(неорганизованный ¦       ¦       ¦       ¦       ¦       ¦       ¦
¦сектор)           ¦       ¦       ¦       ¦       ¦       ¦       ¦
+------------------------------------------------------------------+

Analyzing evolution of amount of retail sales in retrospective, it is possible to notice tendency of growth of sales volume which will remain also for 2007-2009. In this process growth of goods turnover of retail trade at the expense of trade enterprises (the organized sector) will become the priority moment.

Growth of total amount of goods turnover of retail trade to 32869,0 of one million lei in 2009 (on predesigns) will be caused:

step-by-step recession of goods turnover of retail trade of the unorganized sector of trade from 8456,9 of one million lei in 2005 for the account of 8231,0 of one million lei (on predesigns) in 2009 due to development of infrastructure in the rural zone (opening of network of supermarkets);

growth of the retail turnover of trade enterprises to 24638,0 of one million lei (on predesigns), or on 13607,2 of one million lei it is more, than for 2005.

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