ORDER OF THE GOVERNMENT OF THE REPUBLIC OF MOLDOVA

of November 25, 2013 No. 948

About approval of the Strategy of development of domestic trade in the Republic of Moldova for 2014-2020 and the action plan on its realization

In pursuance of provisions of article 5 of the Law No. 231 of September 23, 2010 on domestic trade (The official monitor of the Republic of Moldova, 2010, Art. No. 206-209, 681), with subsequent changes and amendments, and in view of social value of trade in satisfaction of vital needs of the population, contribution of this sector in forming of gross domestic product, and also for upgrade in general of the domestic consumer market the Government DECIDES:

1. Approve:

The strategy of development of domestic trade in the Republic of Moldova for 2014 - 2020, according to appendix No. 1;

The action plan for 2014 - 2016 on strategy implementation of development of domestic trade in the Republic of Moldova for 2014 - 2020 years, according to appendix No. 2;

The action plan for 2017-2018 on strategy implementation of development of domestic trade in the Republic of Moldova for 2014-2020, according to appendix No. 3

2. To the ministries and other central administrative authorities annually till March 15 to provide to the Ministry of Economy and Infrastructure information on implementation of provisions of Strategy in previous year;

To the Ministry of Economy and Infrastructure to generalize information obtained on industries and to submit the closing annual statement to the Government till April 15.

3. Recommend to bodies of local public authority to approve territorial strategies of development of domestic trade for 2014 - 2020 and action plans for their realization.

4. To assign monitoring and coordination of implementation process of the Strategy of development of domestic trade in the Republic of Moldova for 2014 - 2020 to the Ministry of Economy and Infrastructure.

Appendix №1

to the Order of the Government of the Republic of Moldova of November 25, 2013 No. 948

The strategy of development of domestic trade in the Republic of Moldova for 2014 - 2020

Introduction

The strategy of development of domestic trade in the Republic of Moldova for 2014 - 2020 (further - Strategy) is the medium-term document of state policy for the purpose of development in the territory of the country of sales activities of goods and services which fall under the Law No. 231 field of activity of September 23, 2010 about domestic trade. Strategy plans the priority directions of development and social orientation of domestic trade and requires system approach to realization of state policy in the field of trading activity.

Development of this Strategy was preceded by assessment of realization of the actions provided in the Strategy of support of development of domestic trade in the Republic of Moldova for 2007 - 2009, carrying out the complex analysis of the current situation of the domestic consumer market, and also studying of the best commercial the practician of the European community and possibility of their implementation at the national level. In case of development of Strategy Strategy provisions Moldova-2020, the National strategy of regional development, the Strategy of homeland security, the Strategy of development for the sector of the small and medium companies for 2012 - 2020, the Program of activities of the Government of the Republic of Moldova for 2013 - 2014 "The European integration were considered: Freedom, Democracy, Welfare" and other relevant documents. At the same time Strategy supplements these strategy and is platform for coordination of implementation of provisions of the mentioned strategy.

Development of Strategy was caused by need of systematization of the actions directed to stimulation of organized and legal trading activity in the healthy competitive circle and concentration on social and economic needs of consumers.

This Strategy establishes the main directions in case of creation of the legal base in the field of sales of goods and services, continuation of restructuring of institutional structures concerning supervision of the domestic consumer market, implementation of modern technologies for distribution/provision of commercial services. Strategy determines role of the state in regulation of trading activity, the sphere of interaction between the central bodies of public management with competences of this area, and also aspects of cooperation with bodies of local public authority.

Strategy changes concept of concept of domestic trade, it is considered not only as the sphere of sale of values (goods), but also services, namely services which are connected with after-sale process of goods - repair, lease, cleaning, washing, public catering, hotel services, tourism, etc. Thus trade gradually fits into the industry of the services rendered to the population.

The Strategy purpose - ensuring needs of consumers with competitive products and services by creation of effective goods distribution system in all territory of the country.

In this context the platform of implementation of Strategy consists in continuations of evolutionary processes for ensuring sustainable development of the domestic consumer market (high-quality and innovative development of domestic trade). Thus, trading activities will be modernized proceeding from perspectives of their involvement in social and economic development of the country.

I. Diagnostics of domestic trade for 2006 - 2012

For the purpose of implementation of the analysis of domestic trade of the Republic of Moldova both quantitative indices, and high-quality which can give overall picture of this sector were used. Quantity characteristics show the place which is taken by trade in national economy, through such indicators as: quantity and share of trade enterprises in total quantity of the companies, quantity and share of the economically active population working in the field of trade, trade contribution to creation of the gross domestic product (GDP), sales volume, etc. according to official statistical data. Quality characteristics are connected with perception of this sector of activities.

Quantitative tendencies are shown in final indicators of trade in national economy, its contribution to forming of gross value added to economy and share of this sector in gross domestic product.

The economic indicator, such as the gross internal product created in the sector of trade in the Republic of Moldova registers moderate, but stable tendencies of growth for many years. So, if in 2006 the trade share in forming of gross domestic product was % 11,5, then in 2012 - about 14%, among industries with the main contribution to gross value added. For 2006-2012 VDS in trade increased approximately in time 2,4, from 5145 million lei to 12250 million lei (the table 1).

Table 1. Trade contribution to forming of gross domestic product in 2006 - 2012

                                                    (one million lei)

Source: National bureau of statistics

* Preliminary data

Growth tendencies in the field of trade and recognition of its role in the Republic of Moldova are important, but the received achievements shall be in balance with national production, effective use of resources in agricultural industry, and the economy to be based on investments, but not on consumption.

According to statistical data on the final use (final consumption of households and final to consumption of public administration) and to the GDP size during the analyzed period of 2006-2012, existence of gap between these two indicators with tendency of growth of consumer spendings is stated. If in 2006 the total amount of final consumption constituted the amount of 50972 million lei that exceeds GDP on % 13,9, then in 2012 this indicator grew to 102954 million lei that exceeded GDP for 17% (the drawing 1). In the created situation of the requirement of internal consumption became covered due to import and, therefore, there was dependence on foreign goods.

Drawing. 1. Evolution of gross domestic product and final consumption in 2006 - 2012

Source: National bureau of statistics

Owing to consumption growth of the population sales volume in retail trade continuously increased, registering in real terms annual growth in 6-7% (the figure 2.). But in 2012 delay of growth rates of sales on % 12,8 in comparison with 2011 is noted.

Figure 2. Growth rates of retail sales in 2006 - 2012

Source: National bureau of statistics

On observations of evolution of amount of retail sales in 20062012 years it is determined that their amount increased in current prices approximately twice, with 23356,6 of one million lei to 51873,8 of one million lei (cost sales volume) in connection with increase in the income of the population (the salary, money transfers) and increase in prices (the table 2).

Statistical data of 2012 show decline in turnover of retail trade on % 0,5 in comparison with 2011 (in the comparable prices). This decrease was substantially caused by impact of crisis of the eurozone on the Moldavian consumer and the producer, and also the decrease in the internal offer in the agrofood sector caused by drought in 2011-2012.

Originally implementation of the market relations came to the end with origin and development of the sector of the unorganized trade performed out of shops, the dominating share fell on "trade in the markets". Later, however, in development of trade the tendency to conduct it orderly was shown, increasing thereby quality of commercial services, level of budget receipts and at the same time safety of consumers.

Thus, dynamics of the transformations which followed in respect of the organization of trade shows increase in amount of the goods sold through trade enterprises with % 58,3 in 2006 to % 65,0 in 2012. Therefore, it is possible to draw conclusion that trade gradually passes from unorganized into organized format.

Table 2. Dynamics of amount of retail sales in 2006 - 2012

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