FDI Promotion Practices
Enterprise Estonia, Kyiv office
IX Lviv International Economic Forum
Ostober 01-02, 2009
Estonia is home to a small nationality and a
slightly larger nation. On the world map it is
an almost imperceptible slice of Nordic sea.
(Map & location)
Why invest in Estonia?
• A unique location and culture combining Nordic
roots and Eastern influences.
• A highly progressive environment that offers an
efficient way of doing business.
• Highly developed infrastructure that supports
• Among the most successful countries in the
world in attracting inward investment.
and Trade Agency
At a glance
• EITA is organized as a division within
• Our responsibilities include imagebuilding,
investment promotion, trade development
and global network management.
• We participate in economic policy
History of EITA
1994-2003 investment promotion
agencies in different forms
2000 – merger with Enterprise Estonia
2003 – Enterprise division
2007 – Investment and Trade Development division
2009 – Estonian Investment and Trade Agency
• 2009 budget of about 4.5 MEUR
• 20 employees, 5 teams:
– Business development, Marketing,
Services, Export, Information and
• 11 offices, 10 countries
• A global network of partners and
Services • General information inquiries
• Investment tours of Estonia
• Detailed investment proposals
• Identifying suitable properties
• Organizing recruitment
• Advice on financing
• Negotiations with authorities
• Tallinn, Estonia • Kiev, Ukraine
• Helsinki, Finland • Tokyo, Japan
• Stockholm, Sweden • Shanghai, China
• London, UK • Moscow, Russia
• Hamburg, Germany • St. Petersburg, Russia
• Silicon Valley, USA
At a glance
• Established in 2000.
• One of the largest institutions within the
national support system.
• Provides assistance, advisory,
cooperation opportunities, and training
for entrepreneurs, research
establishments, public and third sector.
Formation of Foreign Investments
Agency Export Agency
and Trade Development
Estonian Innovation Fund
Enterprise Estonia today
• A total of about 300 employees.
• 2009 budget about 5 billion EEK
• (320 MEUR).
• Regional offices in Jõhvi and Tartu.
• A network in each Estonian county:
county development centers and tourist
Estonian business support system
• Enterprise Estonia
• Estonian Development Fund
• Environmental Investment Center
• Rural Development Foundation
• Agricultural Registers and Information Board
We are at the heart of the Baltic
Sea Region –the Europe’s fastest
• Ease of doing business
• Low cost of doing business
• Country of foreign investors
• Estonia has a very stable economic environment.
• Member of EU and NATO since 2004.
• One of the lowest government debts in Europe
• Rapid economic growth during the last 10 years.
• Considerable accumulated fiscal reserves.
• Estonia is both socially and logistically accessible.
• Communications technology makes distances insignificant.
• Front runner in applying modern IT solutions for everyday life.
• Within three hours flight of major European capitals.
Ease of doing business
• Estonia is 18th in the World Bank Group’s
Ease of Doing Business index.
• Business life is oriented to the west.
• Business regulation is less rigid than in the
• Culture has very strong work ethics.
• Estonian have good knowledge of English
Low cost of doing business
• Cost level in Estonia is still below EU average.
• Taxes are low and simple.
• No corporate tax on reinvested profits.
• Labor costs are a third of those in Sweden or Finland.
Country of foreign
• Estonia is one of the most successful countries in
Europe in attracting FDI.
• Foreign investors play a decisive role in the growing
• Attracting FDI is based on creating a favorable
business environment instead of creating special
• Transport and logistics
• Business and financial
• Industrial machinery and
• Standard & Poor: A
• Moody’s: A1
• Fitch IBCA: BBB+
(revised in 2009)
• 12th in Index of Economic Freedom 2007
(Wall Street Journal)
• 22nd in the Ease of Doing Business Report 2008
• 27th in Global Competitiveness Report 2007/8
(World Economic Forum)
• 27th in the Corruption Perceptions Index 2008
Cornerstones of economic success
• Monetary reform
Currency board arrangement since 1992.
Completed, with 4 infrastructure companies in
• Liberal foreign trade regime
Market is open for all competition.
• Modern tax system
Flat income tax with 0% on reinvested profits.
• ID card • e-Customs
• Citizen’s Portal • e-Health
• m-Parking • e-Police
• e-Elections • Paying by mobile
• e-Schools phone
• e-Tax board • Internet banking
• Estonian cabinet meetings have been changed to
paperless sessions using a web-based system.
• Government expenditures can be followed on the
internet in real time.
• The Estonian e-Governance Academy has trained
over 500 participants from 36 countries.
Estonian Investment and Trade Agency
Estonian Tourism Board