2. 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
3. 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
4. PART OF THE BALTIC SEA REGION &
CROSSROADS OF HUGE MARKETS
7. LITHUANIA AND MAASTRICHT
CRITERIA
Maastricht Criterion Lithuania’s
(Convergence) figure performance
Criteria in 2007 in 2007
Price 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% 3.4528
Long-term interest rate 6.4% 4.5%
Sources: Eurostat, European Central Bank, Bank of Lithuania, Ministry of Finance
8. 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
9. FDI IN LITHUANIA, EUR bn
AS OF JULY 1, 2008
10 10
10 8,4
8 6,9
6
4,7
4
3,8
4 3,1
2,7
2
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 1H
Source: Lithuanian Development Agency, www.stat.gov.lt
10. MAJOR COUNTRIES INVESTORS,
AS OF JULY 1, 2008
Sweden 14.1%
Poland 12.9%
Denmark 11.1%
Russia 10.3%
PAGRINDINĖS ŠALYS
Germany 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
11. FDI IN LITHUANIA BY SECTOR,
AS OF JULY 1, 2008
Manufacturing 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 0.8
Other 6.8%
0% 10% 20% 40%
Source: Lithuanian Department of Statistics, www.stat.gov.lt
14. LITHUANIA’S MAJOR EXPORTS
PARTNERS, 2007
EU 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
15. LITHUANIA’S MAJOR IMPORT
PARTNERS, 2007
68.1%
EU
CIS 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
16. 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
17. 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
19. BUSINESS-FRIENDLY TAX POLICY
Ranking of total tax revenue by countries in 2006 as a percentage of GDP
Denmark 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
20. MAIN BUSINESS TAXES, 2009
Tax %
Corporate profit tax 20
VAT 19
Dividends 0* to 20
Personal income tax 21
Social security tax for employer
31
(employee’s contribution is 3% )
* 0% tax on dividends applies when an investor controls at least 10% of
voting shares in the enterprise for the period of at least 12 months.
21. WAGES
2008 III Q
Wages EUR
Minimal hourly wages 1.40
Minimal monthly wages 232
Average monthly wages 672
Source: Lithuanian Department of Statistics, www.stat.gov.lt
23. 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
24. PURCHASING POWER IN LITHUANIA (1)
Purchasing power index by UBS Investment Bank (Switzerland)
New York, USA 100
Berlin, Germany 99,7
London, Great Britain 86,8
Stockholm, Sweden 78,6
Praque, Czech Rep. 48
Ljubljana, Slovenia 44
Bratislava, Slovakia 37
Tallinn, Estonia 35,6
Budapest, Hungary 34,2
Vilnius, Lithuania 31,2
Riga, Latvia 29
Warsaw, Poland 28,8
0 20 40 60 80 100
Source: UBS Investment Bank (Switzerland), www.ubs.com
25. 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 hamburger
New York, USA 13
London, Great Britain 16
Berlin, Germany 17
Stockholm, Sweden 21
Riga, Latvia 28
Ljubljana, Slovenia 35
Prague, Czech Rep. 39
Tallinn, Estonia 39
Warsaw, Poland 43
Vilnius, Lithuania 43
Budapest, Hungary 48
Bratislava, Slovakia 55
0 10 20 30 40 50 60
Source: UBS Investment Bank (Switzerland), www.ubs.com
26. EXCELLENT INFRASTRUCTURE
• Crossroads of international
transport routes – two EU-priority
transport corridors
• International airports (located in
Central, Eastern and Western
Lithuania) with direct routes to most
European cities
• Northernmost and only ice-free
seaport on the eastern shore of the
Baltic Sea – Klaipėda State Seaport
28. KLAIPĖDA STATE SEAPORT:
MAJOR TRANSPORT HUB
• Transport hub, connecting sea, land and railway routes from East to West; main shipping
lines to the ports of Western Europe, South-East Asia and the continent of America pass
through the port
• Handling around 20% of all freight passing through the Eastern Baltic ports; container
handling capacity the greatest among the Baltic ports
• The draught of the entrance channel is 15 meters and the draught of the port navigation
channel is 13-14,5 meters. It is foreseen to increase the water depth in the northern part of
the port up to 17,5 meters
• Handling roughly 7,000 ships and 21 m tonnes of cargo every year, accepting large
tonnage vessels: dry-cargo vessels up to 70,000 DWT, tankers up to 100,000 DWT and
cruise ships up to 270 meters lenght
30. 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
31. DIVERSIFIED INDUSTRY
• Industry makes ~ 23% of country’s
GDP
• ~ 40% of total FDI settles down in
industry (EUR 3.7 bn in 2007)
32. 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
33. EU SUPPORT FOR LITHUANIA IN 2007-2013
approx. EUR 7 bn (approx. EUR 3 bn in 2004-2006)
Operational Programme 45.7%
for Economic Growth
Operational Programme for 39.1%
the Promotion of Cohesion
Operational Programme for the 13.8%
Development of Human Resources
Operationa Programme of 1.4%
Technical Assistance
0 10% 20% 40%
Source: Ministry of Finance, www.finmin.lt
34. 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
35. 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
36. 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 two
times higher than the EU-15 average and is also the highest in the
Baltic States (Source: Eurostat)
• 22 universities and 28 colleges with a total enrolment of 205,000
students; 35 science institutes
• Kaunas University of Technology – largest technical university in the
Baltic States
• One of the most multilingual peoples in the EU – among five EU
countries with the highest percentage of people speaking at least one
foreign language (mostly English, Russian and Polish)
37. MOST POPULAR PROFESSIONS
Most popular higher education programmes, 2006-2007
Business 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
38. 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
39. 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
40. 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
41. 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