Forumul Economic Regional Moldova – 2024
FERM 2024 | Vasile ASANDEI: “In our region, direct investments account for less than 3% of the national total”
Panel: „INVESTMENTS”
Module I – Mapping investment opportunities in the Moldova Region in the context of attracting foreign investments and revitalizing foreign trade, 18th edition of the Moldova Regional Economic Forum, Vatra Dornei, 2024
SPEAKER – Vasile ASANDEI, General Director of the North-East Regional Development Agency (ADR NE)
TOPIC: “The Future of European Cohesion and the Role of Our Region in Shaping It”
Opening and regional challenges
Vasile Asandei, General Director of ADR NE, emphasized the complexity of the development process in an increasingly sophisticated world. According to him, “Development is a very complex and difficult process, and as time passes and the world becomes more sophisticated, development becomes even more complicated.”
“We face difficult realities here, in the North-East Region, in the Republic of Moldova, and in Ukraine. For example, in our region, direct investments account for less than 3% of the national total. This has been an unchanged reality for the past 30 years”, stated Vasile Asandei, who also highlighted the need to identify solutions and pointed out that several options are available in this regard.
Presentation of the offer and the importance of understanding local realities
Vasile Asandei emphasized the importance of understanding and presenting local offers. He stressed that attention must be given to the offers themselves and how they are presented. “A deep understanding of local and regional realities and continuous reform are essential.” The General Director of ADR North-East also referenced the speech by MEP Maria Grapini, who noted that “the absorption of European funds is not optimal”, highlighting that while funds are allocated, their effective utilization remains problematic. Asandei attributed this to insufficient capacity to write detailed projects and meet development requirements.
“We need to consider what we have and how we present our offer. It is essential to have a good understanding of local and regional realities and to know how to reform ourselves. The MEP mentioned that we are not doing well with European fund absorption. We have allocated funds, but we fail to use them efficiently. Why? One explanation is our capacity to write projects, to be attentive to details, and to meet development requirements.”
Practical examples and administrative challenges
A practical aspect highlighted by Vasile Asandei was the process of evaluating and contracting projects.
“When we launch a call for projects for the private sector, we receive hundreds of funding proposals. We evaluate and contract a few hundred, but when we request documents for contracting, sometimes we have to send dozens of requests for clarification to a single beneficiary. This is not an accusation but a reality. We need to invest in knowledge and understanding, both for firms and for consultants and institutions that create the rules.”
The need for an investment ecosystem
Vasile Asandei stressed that the European Union needs clear tools for implementing projects funded by European funds. “Both beneficiaries and authorities must adhere to numerous requirements, and without the right tools, it is difficult to meet them”. At both national and European levels, there should be clear and simplified methodologies for project analysis and requirements.
He noted that developing a firm is challenging, especially in a poor region. Many firms reach a point where they can no longer manage and need support to avoid bankruptcy or to attract new investments and management. The President of ROREG pointed out that there is no well-developed ecosystem to support entrepreneurs in such situations.
“Unfortunately, there is no science, institution, or ecosystem that helps entrepreneurs who, at a certain point, can no longer manage to find solutions”.
In conclusion, Vasile Asandei highlighted the importance of a robust ecosystem to support investments and firm development, both locally and in the context of attracting foreign investments.
