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The Gagauz autonomy has the authority to adopt its own legislation in order to implement economic reforms and to stimulate investment activity. In 2018, on the initiative of the Executive Committee, the People’s Assembly of Gagauzia adopted a new “Investments Law”.
Foreign and domestic enterprises that decide for an investment in Gagauzia and open workplaces may take advantage of the regional law on investment, obtaining grants in-kind, preferences on taxes, investment subsidies for construction and installation works, for the creation of industrial and technical infrastructure as well as for the purchase of equipment.
Gagauzia is an integral part of the Republic of Moldova, with functioning preferential trade regimes with the European Union and eastern countries. On 1st November 2016, a comprehensive free trade regime with the Republic of Turkey came into force. Free trade area regimes offer excellent opportunities for investors by expanding their activity to Gagauzia.
It is also important that Gagauzia has a favorable geographical location, natural and climatic conditions, modern logistics and infrastructure, and advanced legislation for the implementation of investment projects. The Authorities of the autonomy and the whole Gagauz nation are open for a mutual beneficial cooperation and efficient development of new opportunities.
Due to competitive advantages that the region has, the Gagauzia feel confident to recommend some priority sectors for investment. Along with other industries, this is a manufactory production. The study of opportunities and the creation of conditions for the development of investment attractiveness in manufacturing industry is the actual task of sustainable socio-economic development of ATU Gagauzia. In this publication, such an analysis will be carried out and qualitative conclusions will be presented on the need to develop the important directions that will enable to achieve the goals.
Gagauzia Profile
Situated in the southern part of the Republic of Moldova, Gagauzia is bordered by the Ukrainian district of Odessa to the East and has administrative border with districts of Leova, Cantemir, and Cahul to the West. By car, it takes 1.5 hours to travel from the capital of Gagauzia, Comrat, to the capital of Moldova, Chisinau. Its location in the South of Moldova is close to the Danube ports of Giurgiulesti (International Free Port, Moldova), and to the river ports of Galati (Romania), Reni, and Ismail (both Ukraine).
Figure 1.
The geographical location map of the ATU Gagauzia (Republic of Moldova) (Source: Compiled by the author according to the data provided by Department of Construction and Infrastructure of the Executive Committee of ATU Gagauzia)
Figure 2.
Destinations and time to reach destinations from the Republic of Moldova air travel (Source: Compiled by the author according to the data provided by the Informational National Bureau of Statistics of the Republic of Moldova)
The main indicators that determine the administrative and territorial status of the region is present in the Table 1.
Table 1. The administrative and territorial status of the ATU Gagauzia (Republic of Moldova)
| Indicator | Value |
| Political and administrative status | Autonomous Territorial Unit of Gagauzia |
| Total area | 1,848 km2 |
| Currency | Moldovan Leu (MDL) |
| Capital | Comrat (26,200 inhabitants) |
| Total population | 162,000 people (4.8% of the Moldovan population) |
| Spoken languages | Gagauzian, Russian, Turkish, Romanian |
Source: Compiled by the author according to the data provided by Economic Development Department of the Executive Committee of ATU Gagauzia