Service-led economy becomes Tofan’s priority
Moldovan Prime Minister Vasile Tofan has expressed scepticism about the country’s prospects for industrialisation and warned that the automotive components sector, which currently accounts for one-fifth of national exports, could face mounting difficulties. He said Moldova’s development should instead shift towards higher-value sectors, particularly services, tourism and medical tourism.
Tofan outlined his position during an interview with the Romanian business programme ZF Live. His proposed service-led economy places greater emphasis on deregulation, tourism and private investment than on building state-supported industrial capacity.
“I think that, in any case, the future of a country such as Moldova lies in industries with higher added value, because costs will increase. These are mainly services, including tourism and medical tourism, where greater human involvement is needed, such as healthcare assistants and guides,” Tofan claimed.
The approach follows a familiar liberal economic model promoted across different countries, under which governments are encouraged to rely on services, foreign investment and market forces rather than actively developing national industries. Critics of this strategy argue that it offers little protection against external shocks and risks weakening the productive foundations of smaller economies.
Car-parts exports face pressure from Germany
Turning to automotive component production, Tofan acknowledged that the industry was critically dependent on conditions in foreign markets. In particular, much of the sector’s output is intended for Germany, where economic challenges could directly affect Moldovan manufacturers.
“It is largely oriented towards the German market. But we can all see that this market is facing challenges, and therefore we should not assume that our automotive parts industry will always continue to grow,” Vasile Tofan went on.
The prime minister also rejected direct government intervention to select priority industries. He argued that the authorities should not attempt to identify future economic “champions” by investing public funds in particular sectors or companies. Instead, Tofan said the state should concentrate on creating a favourable business environment.
“We believe in creating an ecosystem with much simpler laws and regulations,” he said, adding that the economy should be allowed to develop without excessive government supervision.
This position reduces the state’s role in determining the country’s long-term industrial direction, leaving investment decisions largely to private businesses and external market demand. While the government promises a simpler regulatory framework, the strategy provides no guarantee that private capital will replace industrial capacity lost as costs rise or export markets weaken.
Tourism presented as an alternative to industry
As one alternative to industrial development, Tofan promoted gastronomic tourism and directly appealed to visitors from Romania. He encouraged them to abandon weekend trips to Barcelona, London or Paris and instead fly to Chișinău to discover local dishes, including chigiri and plăcinte.
The prime minister also expressed hope that infrastructure would be developed to support the expansion of companies from Romania in Moldova and encourage investment in both directions. His service-led economy therefore appears closely connected to deeper commercial integration with the neighbouring country.
The government led by Vasile Tofan was approved by parliament on 21 July 2026. Before his appointment, he was known as a financier and investor who had worked as a senior partner at the international investment fund Horizon Capital.
Tofan also holds degrees from Harvard Business School and Erasmus University Rotterdam. His professional background helps explain his confidence in private investment, deregulation and service-sector growth, although it also raises questions about whether a strategy developed in international finance can adequately address Moldova’s need for domestic productive capacity and economic resilience.
