Docstoc

Lithuania – the Smart Move

Document Sample
Lithuania – the Smart Move Powered By Docstoc
					Lithuania –
the Smart Move
Ambassador Jonas Paslauskas
Consul General of the Republic of Lithuania in New York
 Lithuania

Population: 3.4 M


Area: 65,300 sq. km
           In-between Huge Markets

110 million Baltic Sea Region consumers



                                                250 million CIS consumers




                340 million Western European consumers
Total Baltic GDP

                             Lithuania
  Latvia 29%                    47%




               Estonia 24%
One the Best Performing EU Economies

 • Performance ranked as one of the best in the
European Union (IMF)

  • Very low economic and political risks (“Economist
Intelligence Unit”, the research subdivision of
“The Economist” magazine)

   • Easiest place to do business among new EU
    members (World Bank)
       According to “Eurostat”,
       the EU statistics agency,
         the annual increase of
Lithuanian industry production (13.7%)
      is three times greater than
        the EU industry growth
and the biggest among all EU members
      Lithuanian Economy at a Glance - I


             2002     2003       2004       2005      2006       2007

GDP          6.8       10.5         7        7.5        7.7        8*
growth (%)
Cumulative   3.8         4        4.7        5.4        8.3       9,2**
FDI (€ bn)



                    Source: Lithuanian Department of Statistics, DnB Nord
                    *2007 second quarter data
                    ** as of April 1, 2007
     Lithuanian Economy at a Glance - II


           2002     2003       2004      2005       2006       2007

Exports     5.9      6.4        7.4        9.5       11.2        7*
(€ bn)
Imports     8.3      8.8        9.8       12.5       15.4       10*
(€ bn)



                  Source: Lithuanian Department of Statistics, DnB Nord
                  * as of August 1, 2007
     Export / import growth forecasts

   During the first 7 months of 2007, in comparison
    with the same period of 2006, Lithuania’s exports
    increased almost 10%, and imports leaped 17%.
   Exports growth was much influenced by the
    increase of exports of the following production:
    fertilizers, vehicles, articles of plastics, machinery
    and equipment
   Increasing imports of vehicles, chemical
    products, iron and steel had an influence upon
    the rapid growth of Lithuania’s imports during the
    first 7 months of 2007
       Lithuanian Economy at a Glance - III



            2002   2003       2004       2005       2006       2007

Inflation    -1%   -1.3%      2.9%        3%        4.5%        4.5*

Unemploy    13.8% 12.4% 11.4% 8.3%                  5.6%        n/a
ment rate



                   Source: Lithuanian Department of Statistics, DnB Nord
                   *Forecasts
   Lithuanian GDP
                                            Industry
           Agriculture                        26%
               6%




Services                                Construction
 61%                                        7%



                     Source: Lithuanian Department of Statistics
Cumulative FDI in Lithuania
                                                                     9200
        (€ mln)
                                                            8333
                                                    6921


                                           4690
                        3821      3968
         2707    3088
2392


 1999     2000   2001   2002       2003     2004    2005     2006   April 2007


                                    Source: Lithuanian Department of Statistics




                               Source: Lithuanian Department of Statistics
Major Countries Investors
                    as of January 1, 2007
           Poland
                                               Other
           22.6%                                              Sweden
                                               15.1%
                                                              10.6%




 USA
2.8%



                 Estonia                                  Germany
                  5.9%           Russia                    9.9%
       Denmark                                 Finland
        15.3%                    6.3%           6.7%


                               Source: Lithuanian Department of Statistics
Top Investors
MAJOR US INVESTORS IN
LITHUANIA (mln Euro)


  PHILIP MORRIS   87
  MARS INC.       44
  KRAFT FOODS     37
  COCA-COLA       36
  McDonald's      10
FDI in Lithuania by Sector
             as of January 1, 2007
                      Manufacturing                              Wholesale and
                         39.9%                                    Retail Trade
                                                                    10.7%




 Electricity, Gas,
  Water Supply
      10.6%


                                                                     Financial
                                            Transport, Storage    Intermediation
              Other                                and                 16%
              4.3%       Real Estate,         Communication
                         Renting and              10.9%
                      Business Activities
                            7.6%
Lithuania’s Foreign Trade
 20000                                              (€ mln)
 15000

 10000

  5000

     0
         1998   1999   2000   2001   2002   2003   2004   2005   2006
 Exports 4302   3483   4417   5314   5881   6158   7478   9490 11240
 Imports 6717   5605   6326   7366   8279   8526   9958 12498 15371

                                Source: Lithuanian Department of Statistics




                         Source: Lithuanian Department of Statistics
Lithuania’s Major Exports Destinations
                 2006
                           Germany
                            8.7%              Latvia
       Other
                                              11.1%
       32.6%
                                                       Russia
                                                       12.8%
   Poland
    6%                                                 Netherlands
                                                          4.9%
    Denmark
                                                  UK
     4.2%
               Estonia         USA        Sweden 4.3%
                6.5%          4.3%         4.6%




                               Source: Lithuanian Department of Statistics




                         Source: Lithuanian Department of Statistics
Lithuania’s Exports by Products, 2006


                                 Machinery
                 Mineral
                                    and
                products                                Textiles and
                                 equipment
                  24%                                      textile
                                   12.2%
                                                          articles
   Other                                                    8.3%
   17.1%                                                           Transport
                                                                    means
                                                                    10.1%
  Animal
                                                                   Chemical
 products
              Prepared                        Miscellaneous        Products
   4.6%                     Plastics and
            foodstuffs;be                     manufactured           6.5%
                               articles
            verages;toba                         articles
                               thereof
                 cco                              6.2%
                                5.2%
                5.8%
                                           Source: Lithuanian Department of Statistics
Lithuania’s Major Imports Partners, 2006
                                   Russia
                                   22.4%
                                                          Germany
       Other                                               14.8%
       26.8%



                                                                  Poland
  Estonia                                                         9.6%
   3.1%

                                                              Netherlands
                                                                 3.7%
        Italy
        3.4%                                         Latvia
                Sweden                               4.8%
                         Finland            France
                 3.3%                        3.2%
                          2.9%
                                      Source: Lithuanian Department of Statistics
Lithuania’s Imports by Products, 2006

                        Mineral
                                        Machinery
                       products
                                           and
                        23.6%                                  Transport
        Other                           equipment
        15.3%                             17.6%                 means
                                                                13.9%
   Prepared
  foodstuffs;
                                                                     C hemical
  beverages;
                                                                     Products
    tobacco
                                                                       8.3%
      4%
                                                      Base metals
                Plastics and      Textiles and        and articles
                  articles          textile             thereof
                  thereof           articles             7.1%
                   5.2%               5%


                                          Source: Lithuanian Department of Statistics
Excellent Infrastructure

   • The “Economist Intelligence Unit” (the
    research subdivision of “The Economist”
    magazine) evaluated Lithuania as a country
    maintaining a convenient infrastructure for
    business

   • Northernmost ice-free port on the eastern
    shore of the Baltic Sea

   • Best roads among the Baltic States
Excellent Infrastructure

• International airports (located in Central, Eastern
   and Western Lithuania) with direct routes to
   most European cities

• Convenient system of logistics & warehousing
   facilities in Lithuania’s major industrial hubs

• Plenty of well-equipped office premises
Lithuania’s “Gold and Oil”

• Best educated human resources in Central
  and Eastern Europe (CEE); proportion of
  graduates highest in CEE (4.3 per year per
  1000 inhabitants)
• Universities in all 5 major economic centres;
  largest technical university in the Baltic
  States

          Source: Eurostat; public opinion analysis „Europeans and Languages“
          by the European Commission
Lithuania’s “Gold and Oil”

• Kaunas University of Technology (KTU)
   www.ktu.lt – largest technical university in the
   Baltic States
• 90% of Lithuanians can speak at least one
   other language apart from their mother
   tongue, mostly Russian, English and Polish


            Source: Eurostat; public opinion analysis „Europeans and Languages“
            by the European Commission
One of the Most Business-friendly Tax
         Policies in the EU

      EU-25                           40,8
    Hungary                         38,6
 Czech Rep.                       36,3
     Poland                      34,2
     Ireland                   32,2
     Estonia                  31
      Latvia                 29,6
 Slovak Rep.                 29,5
   Lithuania                 29,2

               0   10   20   30    40        50
    Efficient Industry Base





       To start a business in Lithuania
             Lithuanian Development Agency (LDA)

            provides relevant business information
   services investors through the investment decision process
             identifies local suppliers and sourcing
               organizes site and company visits
        is represented in Germany, Italy and Belgium

             Lithuanian Embassy in Washington DC
  Two Lithuanian Consulates General – in New York and Chicago
      Fifthteen Lithuanian Honorary Consuls all over USA

             Lithuanian American Business Council
            Baltnet is a corporative member of LABC)

WWW.BUSINESSLITHUANIA.COM                       INFO@LDA.LT
 WWW.LABCNY.ORG                WWW.LTCONSNY.ORG
            Lithuania - Summary I
   Located at the crossroads of Scandinavian, East
    European and West European markets, offering
    knowledge-economy-oriented business
    environment, one of the most qualified human
    resources in the EU, a wide range of investment
    incentives (free economic zones with tax benefits
    and one-stop-shop services, industrial parks with
    developed infrastructure, access to EU Structural
    Funds support etc.) and the most diversified
    industry base among the Baltic States, Lithuania
    is a treasure to be discovered by foreign
    investors and businessmen looking for reliable
    business partnership and opportunities to expand
    their business activities.
           Lithuania - Summary II

   Lithuania invites foreign businesses to use
    the opportunity to expand their activities to
    the booming Lithuanian market and to join
    the conglomerate of many big corporate
    names, such as Microsoft, IBM, Philip Morris,
    HP, AON, Coca-Cola, Kraft Foods,
    Masterfoods, Siemens, Dalkia, Yazaki, SEB,
    TeliaSonera, Marzotto, Transcom Worldwide,
    DSV, Schenker, Indorama and many others,
    who are already at home in Lithuania.
    Refresh your investment portfolio and
    discover new opportunities in a prospering
    Lithuanian economy!
         Laser technology in Lithuania
   The French daily “Le Monde” has recently published an article
    about Lithuania’s world-leading laser manufacturers.
   According to “Le Monde”, Lithuania is the biggest exporter of
    femtosecond lasers in the world. The Lithuanian laser technologies
    producer UAB “Šviesos konversija” only holds 80% of the global
    market of femtosecond lasers.
   A country of 3.5 million people, Lithuania, has about 15 laser
    producers, employing about 300 laser specialists, half of which are
    engineers and doctors of sciences. Lithuania’s laser sector grows
    about 15-20 % annualy, which is twice faster than the whole
    economy of the country. The Lithuanian laser production is
    demanded by the best scientific laboratories in Europe and the US.
   In 2008 a laser innovation center is planned to be established in
    Lithuania. Also, Lithuania expects to receive about EUR 600 million
    for scientific research and technology developments from the EU
    Structural funds for the period till 2013.

				
DOCUMENT INFO