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Lithuania go for business 2009
 

Lithuania go for business 2009

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    Lithuania go for business 2009 Lithuania go for business 2009 Presentation Transcript

    • Lithuaniago for international business2009 Slide
    • LITHUANIA IN THE WORLD• Territory: 65,300 km2• Common borders with: Latvia Belarus Poland Russia (Kaliningrad Region)• Population: 3,4 million (84% of Lithuanians, 7% Poles, 6.5% Russians )• Capital and biggest city: Vilnius (population: 542,000)• State language: Lithuanian• State Government: Democratic Republic• Religion: 80% of Roman Catholics, 5% Orthodox
    • LITHUANIA ATTRACTIVE FOR BUSINESS SET-UP AND EXPANSION • Convenient geographical location • Sustainable economic performance • Competitive business development costs • Ecxellent infrastructure • Industrial network and incentives for investors • Attractive business sectors • Quality human resources • Highest life quality among the Baltic States
    • PART OF THE BALTIC SEA REGION & CROSSROADS OF HUGE MARKETS
    • LITHUANIAN ECONOMY AT A GLANCE 2008 2009 2005 2006 2007 (forecast) (forecast)GDP, EUR bn 20,7 23,8 28,4 32,9 33,2GDP growth (annual), % 7.9 7.7 8.9 3.5 -4.8Annual inflation, % 3 4.5 8.1 9 4.1FDI, EUR bn 6,9 8,3 10 – –Exports, EUR bn 9,5 11,3 12,5 – –Exports growth, % 17.7 12.2 4.3 12.3 3.8Imports, EUR bn 12,4 15,4 17,8 – –Imports growth, % 17.2 13.8 11.6 12 -4.5Unemployment, % 8.3 5.6 4.3 5.6 7.8 Sources: Lithuanian Department of Statistics, www.stat.gov.lt, Ministry of Finance, www.finmin.lt, Bank of Lithuania, www.lb.lt
    • LITHUANIA AND MAASTRICHT CRITERIA Maastricht Criterion Lithuania’s (Convergence) figure performance Criteria in 2007 in 2007Price stability 2.8% 5.8(Inflation rate)State finances:- Government deficit 3% 0.9%- Government debt 60% 17.7%Currency exchange rate 3.4528±15% 3.4528Long-term interest rate 6.4% 4.5%Sources: Eurostat, European Central Bank, Bank of Lithuania, Ministry of Finance
    • GDP BY ECONOMIC SECTORS, 2007 Services 60.1% Industry 25.8% Construction 8.8% Agriculture 5.3% 0% 20% 40% 60% Source: Lithuanian Department of Statistics, www.stat.gov.lt
    • FDI IN LITHUANIA, EUR bn AS OF JULY 1, 2008 10 1010 8,48 6,96 4,7 4 3,84 3,1 2,720 2000 2001 2002 2003 2004 2005 2006 2007 2008 1H Source: Lithuanian Development Agency, www.stat.gov.lt
    • MAJOR COUNTRIES INVESTORS, AS OF JULY 1, 2008Sweden 14.1%Poland 12.9%Denmark 11.1%Russia 10.3% PAGRINDINĖS ŠALYSGermany INVESTUOTOJOS, 2007 8.7%Estonia 6.7%Latvia 5.1%Finland 5%Netherlands 4.5% 0 10% 15% Source: Lithuanian Department of Statistics, www.stat.gov.lt
    • FDI IN LITHUANIA BY SECTOR, AS OF JULY 1, 2008Manufacturing 33%Financial intermediation 16.6%Trade 11.9%Transportation, storage & communication 11.7%Real estate 9.7 %Electricity, gas & water supply 8%Construction 1.5%Hotels and restaurants 0.8Other 6.8% 0% 10% 20% 40% Source: Lithuanian Department of Statistics, www.stat.gov.lt
    • TOP INVESTORS IN LITHUANIA
    • LITHUANIA’S FOREIGN TRADE, EUR m 20 000 18 000 16 000 14 000 12 000 10 000 8 000 6 000 4 000 2 000 0 1999 2000 2001 2002 2003 2004 2005 2006 2007Exports 3483 4417 5314 5881 6158 7478 9490 11266 12512Imports 5605 6326 7366 8279 8526 9958 12498 15437 17667 Source: Lithuanian Department of Statistics, www.stat.gov.lt
    • LITHUANIA’S MAJOR EXPORTS PARTNERS, 2007EU 64.8%CIS 24.5%Russia 15%Latvia 12.9%Germany 10.5%Poland 6.3%Estonia 5.8%United Kingdom 4.6%Denmark 4.1% 0 20% 40% 60% Source: Lithuanian Department of Statistics, www.stat.gov.lt
    • LITHUANIA’S MAJOR IMPORT PARTNERS, 2007 68.1%EUCIS 21.9%Russia 18.2%Germany 14.9%Poland 10.6%Latvia 5.5%Netherlands 4.2%Italy 3.9%Sweden 3.8%Estonia 3.6% 0 20% 40% 60% Source: Lithuanian Department of Statistics, www.stat.gov.lt
    • LITHUANIA’S EXPORTS BY PRODUCTS, 2007 Mineral products 13.8% Machinery and equipment 12.9% Transport means 10.5% Chemical products 8% Textiles and textile articles 7.5% Plastics and articles thereof 7.5% Miscellaneous manufactured articles 6.8% Prepared foodstuffs; beverages; tobacco 6.1% Animal products 5.5% Other 21.4% 0 10% 20% Source: Lithuanian Department of Statistics, www.stat.gov.lt
    • LITHUANIA’S IMPORTS BY PRODUCTS, 2007 Machinery and equipment 17.5% Mineral products 17.3% Transport means 16.4% Chemical products 9.7% Base metals and articles thereof 7.8% Textiles and textile articles 4.8% Plastics and articles thereof 4.2% Prepared foodstuffs; beverages; tobacco 4.2% Other 18.1% 0 10% 20% Source: Lithuanian Department of Statistics, www.stat.gov.lt
    • PROFITABILITY OF BUSINESSES Non-financial enterprises’ profitability growth9% 8.8%8%7% 6.2% 6%6% 5.4% 4.9%5% 3.8%4%3% 1.9%2% 1.1%1%0% 2000 2001 2002 2003 2004 2005 2006 2007 Source: Lithuanian Department of Statistics, www.stat.gov.lt
    • BUSINESS-FRIENDLY TAX POLICY Ranking of total tax revenue by countries in 2006 as a percentage of GDPDenmark 50%Sweden 49.7%Belgium 46.8%France 46.1%Euro Area 41.8%EU 41.2%Estonia 31.1%Latvia 30.4%Lithuania 30%Slovakia 29.5%Romania 29.2% 0 20% 40% 60% Source: Eurostat, 2008
    • MAIN BUSINESS TAXES, 2009 Tax %Corporate profit tax 20VAT 19Dividends 0* to 20Personal income tax 21Social security tax for employer 31(employee’s contribution is 3% )* 0% tax on dividends applies when an investor controls at least 10% ofvoting shares in the enterprise for the period of at least 12 months.
    • WAGES 2008 III Q Wages EURMinimal hourly wages 1.40Minimal monthly wages 232Average monthly wages 672 Source: Lithuanian Department of Statistics, www.stat.gov.lt
    • COMPETITIVE WAGES Average monthly salary in EUR, 2007Norway 3 784Germany 3 103Ireland 2 330Slovenia 1 326Poland 919Czech Rep. 852Estonia 784Hungary 721Latvia 635Lithuania 594 0 1000 2000 3000 4000 Source: Eurostat, 2008
    • BUSINESS SET-UP COSTS• Opening a company: up to EUR 600 (documentation preparation, notary public services, registration) and up to 15 days• Minimum authorized capital for: private companies – EUR 2,900 public companies – EUR 43,450
    • PURCHASING POWER IN LITHUANIA (1) Purchasing power index by UBS Investment Bank (Switzerland)New York, USA 100Berlin, Germany 99,7London, Great Britain 86,8Stockholm, Sweden 78,6Praque, Czech Rep. 48Ljubljana, Slovenia 44Bratislava, Slovakia 37Tallinn, Estonia 35,6Budapest, Hungary 34,2Vilnius, Lithuania 31,2Riga, Latvia 29Warsaw, Poland 28,8 0 20 40 60 80 100 Source: UBS Investment Bank (Switzerland), www.ubs.com
    • PURCHASING POWER IN LITHUANIA (2) Purchasing power index by UBS Investment Bank (Switzerland) Period of time (minutes) needed to earn for 1 McDonald’s Big Mac hamburgerNew York, USA 13London, Great Britain 16Berlin, Germany 17Stockholm, Sweden 21Riga, Latvia 28Ljubljana, Slovenia 35Prague, Czech Rep. 39Tallinn, Estonia 39Warsaw, Poland 43Vilnius, Lithuania 43Budapest, Hungary 48Bratislava, Slovakia 55 0 10 20 30 40 50 60 Source: UBS Investment Bank (Switzerland), www.ubs.com
    • EXCELLENT INFRASTRUCTURE• Crossroads of internationaltransport routes – two EU-prioritytransport corridors• International airports (located inCentral, Eastern and WesternLithuania) with direct routes to mostEuropean cities• Northernmost and only ice-freeseaport on the eastern shore of theBaltic Sea – Klaipėda State Seaport
    • DIRECT ROUTES TO MOST CITIES
    • KLAIPĖDA STATE SEAPORT: MAJOR TRANSPORT HUB• Transport hub, connecting sea, land and railway routes from East to West; main shippinglines to the ports of Western Europe, South-East Asia and the continent of America passthrough the port• Handling around 20% of all freight passing through the Eastern Baltic ports; containerhandling capacity the greatest among the Baltic ports• The draught of the entrance channel is 15 meters and the draught of the port navigationchannel is 13-14,5 meters. It is foreseen to increase the water depth in the northern part ofthe port up to 17,5 meters• Handling roughly 7,000 ships and 21 m tonnes of cargo every year, accepting largetonnage vessels: dry-cargo vessels up to 70,000 DWT, tankers up to 100,000 DWT andcruise ships up to 270 meters lenght
    • SHIPPING LINES
    • CONVENIENT INDUSTRIAL NETWORK• Klaipėda FEZ: 412 ha greenfield territory• Kaunas FEZ: 534 ha greenfield territory• 9 industrial parks: greenfield territory from 15 to 219 ha
    • DIVERSIFIED INDUSTRY• Industry makes ~ 23% of country’sGDP• ~ 40% of total FDI settles down inindustry (EUR 3.7 bn in 2007)
    • INVESTMENT PROMOTION PROGRAMME FOR THE YEARS 2008-2013 • At least a EUR 5.8 m or, in the case of investment into the development of a R&D centre, at least a EUR 1.4 m investment in the territory of Lithuania will become eligible for the Programme support • Priority will be given to the direct investment associated with development of sectors of high and medium-high technologies, also increasing number of companies generating high value-added products, solution of employment problems, and creation of quality jobs that are particularly attractive to highly qualified specialists
    • EU SUPPORT FOR LITHUANIA IN 2007-2013 approx. EUR 7 bn (approx. EUR 3 bn in 2004-2006)Operational Programme 45.7%for Economic GrowthOperational Programme for 39.1%the Promotion of CohesionOperational Programme for the 13.8%Development of Human ResourcesOperationa Programme of 1.4%Technical Assistance 0 10% 20% 40% Source: Ministry of Finance, www.finmin.lt
    • PROMISING ECONOMIC SECTORS (1)• Transport & logistics – excellent geografical location and infrastructure• Energy – international energy projects• Business services –demand not only in Lithuania, but also in the whole Baltic Sea Region• ICT – companies leading among the Baltic States• Biotech – production does not have equivalents in Central and Eastern Europe• Plastics – with three huge plants leading in the region; greatest scope of FDI in Lithuania• Lasers – global leader in production and exports of certain products
    • PROMISING ECONOMIC SECTORS (2)• Machinery & electrical equipment – widely-acknowledged high-tech products• Furniture & wood processing – one of the largest factories in Eastern Europe; among most important suppliers for IKEA• Textile & apparel – 20% of labour force in manufacturing industry, innovative production• Food – widely demanded, 1/3 exported• Real estate – largest market among the Baltic States with the biggest development potential• Tourism – well-preserved nature; developed business network of rural tourism; world-class entertainment and leisure services; forthcoming Lithuanian events of international importance
    • LITHUANIA’S “GOLD AND OIL”• One of the best-educated people in Central and Eastern Europe;the percentage of Lithuanian population with higher education is twotimes higher than the EU-15 average and is also the highest in theBaltic States (Source: Eurostat)• 22 universities and 28 colleges with a total enrolment of 205,000students; 35 science institutes• Kaunas University of Technology – largest technical university in theBaltic States• One of the most multilingual peoples in the EU – among five EUcountries with the highest percentage of people speaking at least oneforeign language (mostly English, Russian and Polish)
    • MOST POPULAR PROFESSIONS Most popular higher education programmes, 2006-2007Business and administration 23%Teacher training and education science 18%Law 9%Social science 8%Engineering 8%Humanities 5%Arts 4%Architecture and building 4%Computing 4%Other 17% 0 10% 20% Source: Lithuanian Department of Statistics, www.stat.gov.lt
    • HIGH QUALITY OF LIFE• 22 universities and 28 colleges (in all 5 biggest cities), more than 60,5 thous. education specialists• More than 3700 medical institutions, approx. 14 thous. doctors, 400 doctors for 100 thous. inhabitants• 3700 wireless Internet zones, mobile communication penetration of 147% in 2008 IQ, almost 5 million active SIM cards• 25,7 thous. new cars registered in 2007, which is by 41% more than in 2006, and the most among the Baltic States
    • PERFECT PLACE FOR VACATION • 4 UNESCO World Heritage sites • Well-preserved nature, ecological tourism • World-class entertainment and leisure services, international cultural festivals • Prices are approximately 65% lower than the EU average
    • LITHUANIAN DEVELOPMENT AGENCY (LDA) • A-to-Z information on the Lithuanian market • Guidance through the entire investment process and aftercare • Search for matching Lithuanian partners, building contact network • Planning and implementing international projects WWW.LDA.LT
    • FORTHCOMING LITHUANIAN EVENTS OF INTERNATIONAL IMPORTANCE• Millenium of Lithuania 2009• Vilnius – European Capital of Culture 2009• The World Forum for Direct Investment 2009• 5th Anniversary of EU Membership in 2009• Presidency over Organisation for Security and Co-operation in Europe (OSCE) in 2011• European Men’s Basketball Championship in 2011• EU Presidency during the 2nd half of 2013