Refreshing Lithuania: Dynamic Economic Growth Encourages Investments
Today Lithuania, the Baltic Tiger, surprises the world with its strength and rapid growth in all spheres of the country’s life. The democratic member of the EU and NATO is a strong partner in political, economic, social and cultural relations with other countries. This is simply because Lithuania has never ceased following the track, the preservation of its primary values, it chose: investing into its own people’s education and skills as well as maintaining friendly relations with its closest neighbours.
The extremely high level of education of Lithuanian people today enables the country to produce greater added value and is ensuring rapid development of the national economy. The highest quality services provided by Lithuanian specialists are particularly marketable in foreign economies. Furthermore, Lithuania’s strength and progress is very much based on the country’s long-lasting co-operation with Scandinavian States and other countries of the Baltic Sea Region. Danish, Swedish, German, Russian, Finnish, and Norwegian businesses have been the biggest investors in Lithuania. They, along with Polish companies, have also been among Lithuania’s most important foreign trade partners.
We invite you to refresh your investment portfolio and discover new opportunities in the prospering, safe, easy and knowledge-driven Lithuanian economy, the largest and most diversified among the Baltic States. Get more value for your money, do business in Lithuania!
Prospering
"It is obvious that the expectation of growth is the main reason to invest in Lithuania.” (Sampo, Olli-Pekka Salmivuori)
• Lithuania has the largest economy among the Baltic States, producing about half of the region’s GDP.
• Lithuania is one of the fastest growing economies in Europe with GDP growth of 10.5% in 2003, 7% in 2004, and 7.3% in 2005 according to data of the Lithuanian Department of Statistics. SEB Vilniaus Bankas forecasts that Lithuania’s GDP growth will reach 6.5% in 2006. • Due to continued fast growth, in 2004 Lithuania exceeded Poland in GDP per capita by purchasing power standards and the figures were similar to those of Estonia more than 110 million people market potential plus adjoining eastern & western markets
MORE THAN 110 MILLIOM PEOPLE MARKET POTENTIAL PLUS ADJOINING EASTERN & WESTERN MARKETS
FDI in Lithuania amounts € 5.3 billion as of the 1st October 2005
FDI in Lithuania amounts € 5.3 billion as of the 1st October 2005.
Competitive and export-oriented industries caused Lithuanian exports to grow more than 27% in 2005.
Safe
“The stable and extremely favourable economic environment ensures successful business operations in Lithuania.” (Tomasz Bochenek, Microsoft Poland and Baltic)
Lithuania offers a stable economic and social environment for safe and profitable business.
- Lithuania is a full member of NATO and the EU.
- Lithuanian laws are harmonised with those of the EU; the country offers unrestricted movement of capital and dividends. The European Commission has acknowledged Lithuania as the most successful in implementing EU internal market directives into national law among all EU countries.
- Lithuania pursues a stable and effective monetary policy. The country expects to become a member of the European Monetary Union in 2007, the earliest among the EU-10. The national currency, the Litas, has been stable since 1994. The Bank of Lithuania re-pegged the Litas from the US Dollar to the Euro in February 2002 at a fixed rate of 3.4528 Litas to one Euro. The gold and foreign currency reserves of the Bank of Lithuania more than cover the amount of money in circulation in Lithuania. Lithuania’s current ratings are: Standard & Poor’s (A), Moody’s (A3), Fitch (A-).
Easy
The World Bank Group Report “Doing Business in 2006: Creating Jobs” named Lithuania one of the world’s top 30 economies (15th in the world) and the best of the new EU states on the ease of doing business.
The World Bank Group Report “Doing Business in 2006: Creating Jobs” named Lithuania one of the world’s top 30 economies (15th in the world) and the best of the new EU states on the ease of doing business.
INFRASTRUCTURE OF LITHUANIA
- Lithuania has a modern banking and financial system. Modern banking technologies, such as e-banking, etc. have been fully implemented in Lithuania. The rates of commercial loans from Lithuanian banks are among the lowest in Europe, ranging from 5.5% to 6% per year.
- Lithuania offers excellent infrastructure for foreign businesses. The country has four international airports with direct routes to most European cities, the best roads in the Baltics, an ice-free seaport, and an efficient railway system. The country provides fast access to the dynamic regional and neighbouring markets with approx. 50 mln. people within a 500 km radius and offers a convenient system of logistics as well as warehousing facilities in Lithuania’s major industrial hubs. High-speed internet is available in all regions of Lithuania while the number of mobile telephone network subscribers is equal to Lithuania’s population.
Knowledge-Driven
“Lithuanian scientists are likely to become leaders in certain spheres of world science.” (Achilleas Mitsos, Director General of the European Commission’s Directorate General for Research)
Lithuanians are one of the most educated people in Europe, the percentage of the population with higher education being two times higher than the EU-15 average and the highest in the Baltic States. Lithuanians are keen to improve their knowledge, with 70% entering colleges and universities.
There are 21 universities and 27 colleges, with a total enrolment of over 170,000 students. Vilnius University (www.vu.lt), founded in 1579, is the oldest higher education establishment in Eastern and Central Europe. Kaunas University of Technology (www.ktu.lt) is the largest technical university in the Baltic States.
Hi-tech studies are currently among the top choices at Lithuanian universities. Major Lithuanian companies specialising in knowledge-driven sectors of industry, such as the information and telecommunications sector, biotechnology, laser technology, etc., co-operate closely with the leading Lithuanian technological universities, which provide the companies with R&D services and offer students specialised on-the-job training programs. In this way companies are able to attract a large number of qualified specialists for both local and international projects.
Once known as the Soviet Silicon Valley, Lithuania has a strong research and development potential. Lithuanian world-class specialists co-operate with NASA, NATO, Volvo, Saab, Philips, and many others in the fields of biotechnology, biochemistry, laser optics, chemistry, physics, and many other areas of knowledge.
“Lithuanian scientists are likely to become leaders in certain spheres of world science.” (Achilleas Mitsos, Director General of the European Commission’s Directorate General for Research)
Lithuanians are one of the most educated people in Europe, the percentage of the population with higher education being two times higher than the EU-15 average and the highest in the Baltic States. Lithuanians are keen to improve their knowledge, with 70% entering colleges and universities.
There are 21 universities and 27 colleges, with a total enrolment of over 170,000 students. Vilnius University (www.vu.lt), founded in 1579, is the oldest higher education establishment in Eastern and Central Europe. Kaunas University of Technology (www.ktu.lt) is the largest technical university in the Baltic States.
Hi-tech studies are currently among the top choices at Lithuanian universities. Major Lithuanian companies specialising in knowledge-driven sectors of industry, such as the information and telecommunications sector, biotechnology, laser technology, etc., co-operate closely with the leading Lithuanian technological universities, which provide the companies with R&D services and offer students specialised on-the-job training programs. In this way companies are able to attract a large number of qualified specialists for both local and international projects.
Once known as the Soviet Silicon Valley, Lithuania has a strong research and development potential. Lithuanian world-class specialists co-operate with NASA, NATO, Volvo, Saab, Philips, and many others in the fields of biotechnology, biochemistry, laser optics, chemistry, physics, and many other areas of knowledge.
More Value for Your Money
“I am very happy about the qualifications and competence of the employees of Lithuania, not to mention that it is cheaper. I am the only foreigner in the facility, all management is staffed by Lithuanians, and they really do a good job.” (Harald Emberger, former CEO of Mars Lithuania)
Lithuania is the least expensive country to do business in among the new EU-10 states, according to the results of the survey carried out by DHL in 2004. The Pricerunner 2004 Report also named Lithuania as the least expensive country in Europe.
Lithuania pursues a low-tax policy. In 2004, Lithuania’s tax-to-GDP ratio was 28.7%, the lowest in the EU. Corporate tax is only 15%. There are long tax holidays in Lithuania’s Free Economic Zones. For more on the Free Economic Zones, please see www.fez.lt and www.ftz.lt. Incentives for specific investment projects are foreseen in the new Investment Promotion Program that is currently being drafted by the Ministry of Economy. Special business and investment conditions may be provided to larger strategic investment projects of state importance. The development of promising businesses and projects is also actively supported by EU funds.
Lithuanians are well known for their diligence and are praised by foreign business people for their high qualifications, loyalty, and strong motivation. Lithuania’s labour productivity / labour cost ratio is the highest in the Baltics and three times higher than the EU-15 average.
From 1 July 2005, the minimum monthly salary is € 159, the minimum hourly wage being € 0.95. The average gross monthly wage in the 3rd quarter of 2005 was € 399.
Largest and Most Diversified
“Lithuanian companies are globally competitive.” (Tina Stilleborn, General Director, Ikea Trading Services UAB)
While producing almost half the GDP, Lithuania has the largest and most diversified local supply chains in the three Baltic States.
Private and public industrial and logistic zones are on offer and being further rapidly developed for greenfield and brownfield investments. Six science and technology parks host over 120 innovative companies and have ambitious plans to become strong clusters of IT, bio- and laser technologies and products, mechatronics and shared business services. Together with the country’s 21 universities and dozens of research institutions, they continue the many decades of Lithuania’s R&D traditions.
2. Northtown Technology Park, www.smtp.lt
3. Visoriai Information Technology Park, www.vitp.lt
4. Kaunas High-Tech and IT Park, www.techpark.lt
5. Klaipeda S&TP, www.kmtp.lt
6. Siauliai University Science and Technology Park, www.sumtp.lt
4. Kaunas High-Tech and IT Park, www.techpark.lt
5. Klaipeda S&TP, www.kmtp.lt
6. Siauliai University Science and Technology Park, www.sumtp.lt
European Men’s Basketball Championship in 2011. Municipalities will allocate major investments for the development of modern infrastructures. A portion of the projects will be financed by EU funds.
Refresh your investment portfolio – become a partner in creating new leisure centres for sports and cultural events, international conferences, and marine tourism!
Urban Network
Among the three Baltic States, only Lithuania has created a polycentric urban system. With a network of five big cities – Vilnius, Kaunas, Klaipeda, Siauliai and Panevezys – the country offers more opportunities for the location of foreign businesses.
The cities are taking a new development direction with recreational real estate projects in prime locations. Vilnius has been named the European Capital of Culture 2009.
Urban Network
Among the three Baltic States, only Lithuania has created a polycentric urban system. With a network of five big cities – Vilnius, Kaunas, Klaipeda, Siauliai and Panevezys – the country offers more opportunities for the location of foreign businesses.
The cities are taking a new development direction with recreational real estate projects in prime locations. Vilnius has been named the European Capital of Culture 2009.
