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Advantage Lithuania

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    Advantage Lithuania Advantage Lithuania Presentation Transcript

    • ContentsSmall but Sound 3Northern Europe Service Hub 2015 9 Physical Infrastructure Energy Capacities ICT Framework Talent Business Operation Costs Business-supporting Environment Promising Business Sectors Culture of Trust Macroeconomic FiguresLife in Lithuania 43Invest Lithuania – Focusing on ForeignDirect Investment 47Enterprise Lithuania – Focusing onQuality Production 49Business Communication Tips, Dosand Donts 51Useful Links 54
    • Smallsound butLithuania...… is a Northeastern European country which combines what is regarded asScandinavian - progressive, orderly, clean, natural and attractive, as well as whatis regarded as Eastern European – new, rapidly developing, on the rise, and as yet ”Even the hardest of winters fears the spring.” – Lithuanian proverbundiscovered. Sometimes called a Northern, and sometimes an Eastern Europeancountry, Lithuania is an authentic combination of Northern and Eastern features.…is one of EU’s economic recovery leaders in 2010. Hit by the global economicrecession, Lithuania’s economy started again growing already in the 3rd quarter of2009, demonstrating the steepest quarterly increase across the European Union.The World Bank says that Lithuania leads the recovery in 2010 in one line with Air quality ranking inPoland, Slovakia, Romania and the Czech Republic among the EU-10 Member European Green City IndexStates. Also, 3 rating agencies upgraded the Lithuanian Government’s borrow- 2010:ing rating from negative to stable in the beginning of 2010. The InternationalMonetary Fund and the World Bank project that the Lithuanian economy will City Scoregrow 1.6% in 2010 and 3.2% in 2011. Vilnius 9.37 Stockholm 9.35…is the European Union’s prime transport centre. Helsinki 8.84The European Union has recognized Lithuania as the prime transport centre inthe region linking the EU with the East. Dublin 8.62 ”In the years ahead Lithuania’s Copenhagen 8.43 recovery should outpace…is a country with the capital city breathing Europe’s cleanest air and Tallinn 8.30 that of most members of the EUrecognized greenest among the new EU-members. In the European Green City Riga 8.28 because Lithuania isn’t wedded toIndex released by Siemens AG and the Economist Intelligence Unit in 2010, slow-growth policies, as are most Berlin 7.86Vilnius tops the category of the European major cities breathing the cleanest Western European states.” Zurich 7.70air. In the overall ranking category Vilnius, standing No. 13, is the greenest – Forbes, 26th May 2010capital among the new EU members. Vienna 7.59 Small but sound 3
    • Lithuania – Largest Country in Europe in the 15th Century … is ranked as having one of the highest qualities of life among more than Size 190 countries around the globe. In the International Living 2010 Quality of Life Index, Lithuania is ranked 22nd in the world by criteria which consist of nine Lithuania occupies a territory of 65,300 km2. categories: cost of living, culture and leisure, economy, environment, freedom, ”A home, so small it fits under health, infrastructure, safety, risk, and climate. The country shares common borders with Latvia in the north (588 km), Belarus in the south-east (653 km), Poland in the south-west (104 km), and the Ka- a blade of grass, is still a liningrad Region of the Russian Federation, also in the south-west (249 km). Lithuania is larger in size home.” …extended from the Baltic Sea to the Black Sea and was the largest country The length of Baltic Sea coastline with the Eastern Baltic northernmost ice-free – Lithuanian proverb than Belgium, Denmark, the in Europe in the 15th century. By the end of the 14th century the Grand Duchy seaport is 99 km. Netherlands, or Switzerland. of Lithuania occupied the territories of present-day Belarus, Ukraine, and parts With more than half a million people, of Poland and Russia, and not because of conquest but because of diplomacy Cities and inclusiveness. the capital of Lithuania Vilnius is larger than Tallinn, Ljubljana, The capital is Vilnius (population ~ 549,000). Kaunas (~349,000), Klaipėda … was the last pagan state in Europe to accept Christianity. Lithuania officially (~183,000), Šiauliai (~126,000), and Panevėžys (~112,000). Bratislava and some other European adopted Christianity in 1387. capitals. State Government …turned 1000 years old in 2009. Lithuania is an independent democratic republic. In Lithuania, the powers of Lithuania entered the European history when it was first mentioned in a medieval the state are exercised by the Seimas (Parliament), the President, the Govern- German manuscript, the Quedlinburg Chronicle, on 14 February 1009. ment, and the Judiciary. ...has unique nature with 22,000 rivers and rivulets, about 3,000 lakes, a clean seaside and 4 UNESCO World Heritage masterpieces. Lithuania is Currency sometimes called “the land of lakes” and attracts tourists looking for a vaca- Litas (LTL or Lt), which has been pegged to the Euro since 2002 at the rate of tion in the clean and calm countryside. Also, the country welcomes those who 3.4528 LTL/EUR. 100 cents = 1 LTL. Lithuania expects to join the Euro zone want to explore unique natural as well as urban treasures and the deeply rooted in 2014. Baltic culture and customs. Time …is known as a homeland of talented basketball players. For millions of Lithuania is in the Central European Time Zone: GMT+2 hours (+3 hours summer people all over the world, it was precisely basketball that put the name of Lithu- Expansion of Lithuania in the 13-15th centuries time). When it is noon in Vilnius, it is 11:00 am in Stockholm and Frankfurt, ania on the map together with its star players such as Arvydas Sabonis, Šarūnas Lithuanian and Samogitian lands in the Border of Grand Duchy of Lithuania in 10:00 am in London and 5:00 am in New York. 13th century Lands annexed by Mindaugas (until 1263) the 15th century Borders of other states in the 15th century Jasikevičius, Žydrūnas Ilgauskas and others. In the relatively short history of Lands, which temporary belonged to Lithuania, Capital cities Lithuanian basketball (the first basketball game took place in 1922), the men’s Codes during Mindaugas’ reign. Lands annexed by Vytenis (1295-1316) and Gediminas (1316-1341) Other cities Lands annexed by Algirdas (1345-1377) national team won three Olympic bronze medals, was three times the European Lands annexed by Vytautas the Great (1392-1430) champion, and once earned the European silver. To add, in 2010 the Lithuanian The international area code is 00 370 Disputed border regions with the Kingdom of Poland youth basketball team won the U-18 European Basketball Championship. The internet country code is .lt Small but sound 5
    • Key Milestones National Holidays Lithuanians… ... are a nation of 3.4 million who are sometimes called Northern Italians be- January 1 New Year’s Day cause of their emotional nature as well as open-mindedness and tolerance towards other nationalities and religions. Lithuanians are regarded as more emotional, ”There is anaturalness in the way Lithuanians Regained Schengen area Victory in EU February 16 Independence Day (1918) talk, and in the way we experience pain and love.” Independence membership European Presidency expressive and temperamental, comparing to their Northern neighbours. Also, Basketball Arūnas Matelis, Lithuanian documentary film director March 11 Restoration of Independence (1990) Lithuanians have always lived in peace with other nationalities and respected Championship their cultures. People of 115 different ethnic backgrounds live in Lithuania. 6.7% Easter (Sunday and the following Monday)1991 1992 1997 2000 2003 2004 2007 2009 2010 2011 2012 2013 2014 of the population are Polish, 6.3% Russian, 1.2% Belarusian, and 2.3% are of ENGLISH: God gave teeth, God will give bread. May 1 Labour Day other nationalities. Most of the population is Roman Catholic, but there are also duos duonos. LITHUANIAN: Dievas davė dantis, Dievas SANSKRIT: Devas adadat datas, Devas dat dhanas. WTO EU und NATO Maastricht Introduction 1st Sunday in May Mother’s Day Russian Orthodox, Evangelical Lutherans, Evangelical Reformers, Old Believers, membership membership criteria of Euro Jews, Sunni Muslims, and Karaites. currency June 24 Midsummer Festival Statehood Day (Coronation of Mindaugas, King of …speak the most archaic living Indo-European language, which is closely July 6 Lithuania (1253)) related to Sanskrit. It is possible to compare Lithuanian and Sanskrit in such a ”Whether it’s playing jazz or spearheading the Fluxus avant-garde art way that even those who have not studied linguistics may observe the similarities. movement, Lithuanians have a natural inclination for rearranging, August 15 Assumption Day for looking at things with fresh eyes , for November 1 All Saints’ Day …are one of the best-educated and multilingual people in Central and Eastern coming at reality from an unusual angle. So it should not come Europe. More than 90% of the Lithuanian population has secondary or higher as a surprise that Lithuanian bioscientists have invented a way December 25–26 Christmas of using enzymes to cut genes three times quicker than the best education. This is the highest level of education in the country in a decade and previously known methods.” one of the highest in the EU, the average in the EU-27 being around 70%. And even 40% of the 25 - 34 year olds have higher education, which is almost twice Wally Olins, Saffron Brand Consultants as high as the EU-15 average. 90% of Lithuanians speak a foreign language. Half of the population speaks two foreign languages. National Flag YELLOW: the fertile fields of Lithuania, golden with ripe rye, wheat, flax, and …have produced some globally significant achievements. Lithuanian phar- other crops macy specialists created a cheaper, but no less effective, version of an existing GREEN: the symbol of the nation’s vitality (as represented by nature) medicine for treating cancer. Also, Lithuanian laser companies were among the RED: the bloodshed in defending the homeland’s freedom first in the world to transfer fundamental research into manufacture. Small but sound 7
    • Northern Europe Service Hub 2015Lithuania is on the right track towardsits major market development goal –becoming the Northern Europe ServiceHub 2015, because it already now has: • 90% of population with secondary or higher education • 40% of population with higher education • 50% speak two foreign languages • 46 higher education institutions • 40% of talent in science and technology • 92% operations done via e-banking ”Expanding international businesses must seize • 88% declaring their income tax online the opportunity in Lithuania.” • 2000 transportation routes to 40 countries Premkumar Bhagwatsaran, CEO of Ideal Invent • Global leadership in mobile e-signature Technologies • World’s fastest upload Internet in 2009 • World’s 5th and Europe’s No. 1 fiber broadband penetration • Europe’s highest fiber optic density • EU’s 1st greatest GSM penetration ”Lithuania was selected as the geographically best place • World’s No. 1 in the number of mobile telephone subscribers per 100 for the expansion of the company business in the Baltic Sea Region. population Also, Lithuania was evaluated as the country maintaining very close and successful business relations with Northern Europe countries.” • Europe’s densest network of public Internet access points Computer Sciences Corporation (CSC) • Low costs - among Top 10 least expensive European countries • Great life quality - among the best locations for life in the EU Northern Europe Service Hub 2015 9
    • Physical InfrastructureEU’s Prime Transport Centre at the Crossroads of 3 Markets Springboard to Markets Part of Baltic Sea Region ”Lithuania has much to offer the foreign investor seek- ing to set up in the Baltic Region as a springboard to the East as well as to the wider European market.” David Earp, UK Trade & Investment, Cambridgeshire ”We chose Lithuania as a production location because of its closeness to our shops in Europe.” Susanna Wengholt, H&M”One of the advantages of this country is being located on the borderbetween East and West and having transit routes. In Lithuania is located in the Baltic Sea Region (BSR), and has always been an activeour business we are focusing more on the transit routes, and Lithuania’s Lithuania is located on the very crossroads of 3 huge markets. It’s a springboard business partner with its neighbours – other BSR countries – the Scandinavianexcellent geographical location has made Lithuania a transit country.” to the EU markets (Western Europe and Scandinavian countries), and Eastern states and Germany, as well as Poland, Latvia and Estonia. Lithuania’s trade with Henrik Mųller, Hydro Texaco markets (Russia and the Commonwealth of Independent States (CIS)) are also BSR countries makes up almost 70% of all Lithuania’s foreign trade, and about just at Lithuania’s side. 70% of FDI in Lithuania comes also from BSR countries. Northern Europe Service Hub 2015 11
    • Infrastructure Network Lithuania has 2000 different routes to 40 countries, and the EU’s Transporta- The country has 3 international airports located in Eastern (in the capital city tion Commission designated two of them - the North-South highway and the Vilnius), Central (in the 2nd largest city Kaunas) and Western (in the seaside rail route connecting Scandinavia with Central Europe as well as the East-West resort Palanga) Lithuania. They provide superb facilities to conduct passenger route linking the huge Eastern markets with the rest of Europe - as being among or cargo traffic. the ten most important in Europe. Two Trans European Network (TEN) corridors crossing Lithuania: • North-South direction: I corridor (the VIA BALTICA highway and the RAIL ”One main road is better than a hundred paths.” BALTICA railway), connecting Tallinn - Riga - Saločiai - Panevėžys - Kaunas – Lithuanian proverb - Kalvarija - Warsaw, and I A corridor (Tallinn - Riga - Šiauliai - Tauragė - Kaliningrad) • East-West corridor: IX corridor, IX B corridor branch (Kiev - Minsk - Vilnius 2000 -Klaipėda) and IX D corridor (Kaunas - Kaliningrad) Lithuania has routes to 40 countries. • Crossroads of North, East and West • 2000 routes to 40 countries”We found that the travel, infrastructure, communica- • 2 Pan-European transport corridorstions and people with whom we came into contact were • 3 international airportsexcellent and easy to deal with.” • Northernmost ice-free seaport on the eastern shore of the Baltic Sea Paul Stienlet, General Electric • Regionally best network of roads and highways • 3 multimodal logistic centres: - Klaipėda (seaport–rail–highway) Lithuanian trucks move more cargo than Latvian, Estonian and Russian carriers combined, according to figures by National - Kaunas (rail–airport–highway) Departments of Statistics. - Vilnius (rail–airport–highway) Northern Europe Service Hub 2015 13
    • Network of shipping lines Energy Capacities Natural gas The northernmost and only ice-free seaport on the eastern shore of the Baltic Lithuania has well-developed infrastructure and links to energy-rich countries. Nearly all natural gas consumed in Lithuania comes from Russia. The Lithuanian Sea is located in the western part of Lithuania. Klaipėda State Seaport is a re- Lithuania is connected to the energy networks of Russia and the Commonwealth Government is planning to invest in building a liquefied natural gas terminal gional transport hub connecting sea, land and railway routes from East to West. of Independent States (CIS) – the very same countries where the EU buys most with underground natural gas storage. The estimated cost of this project is of its energy. 620-670 million EUR. Klaipėda State Seaport handles roughly 7,000 ships and 30 million tonnes of cargo every year, and accepts large tonnage vessels: dry-cargo vessels up to 80,000 Distribution of natural gas is performed with state-regulated prices. The Euro- A number of policies are applied to ensure country’s energy security and com- pean Office of Statistics estimates that natural gas prices for a medium-sized DWT, tankers up to 150,000 DWT and cruise ships up to 270 meters length. The petitiveness. Lithuania pursues production diversification (new nuclear reactor, household in Lithuania for 2009 were 9.9 EUR per GJ of energy. The European ice-free seaport of Klaipėda is able to receive PANAMAX-type vessels. LNG terminal, renewable energy development), international energy market average for 2009 was 12.6 EUR per GJ of energy. The draught of the entrance channel is 15 meters and the draught of the port integration (electricity links to Sweden and Poland) and applies market principles navigation channel is 13-14,5 meters. Increasing the water depth in the northern part of the port to up to 17,5 meters is foreseen. (ownership unbundling in electricity and gas sectors in line with the Third EU Energy Package, electricity market trading) to ensure reliable, affordable and Only Refinery in the Baltic States sustainable energy supply. The only oil refinery in the Baltic States AB Orlen Lietuva owns and operates a Though small in size, Lithuania has a 21,000 kilometres road system, 2/3 of system of pipelines with a total length of about 500 kilometres. The refinery not which is paved with asphalt concrete. Roads in Lithuania are known to be the Electricity only satisfies the demands of the local market, but also exports to the neighbouring best in the region. Lithuania is committed to investing 145 million EUR into The electricity grid is part of the IPS/UPS electricity system, common to former Latvia, Estonia, Poland and Belarus, as well as Ukraine and Western Europe. the Via Baltica international highway, and around 100 million EUR into three Soviet countries. Lithuania, however, is progressing towards joining the European public logistic centers, which will make up a total area of nearly 970 hectares UCTE system. Lithuania is also taking steps to establish links to Scandinavia via in Lithuania’s three largest cities. Sweden, and Western Europe via Poland. One of Central Europe’s largest refiners of crude oil the Polish PKN The Lithuanian Government is currently searching for investors to help build a Orlen’s investment of more than 678 million EUR into the AB Orlen Lithuania has a well-developed railway network running a total of 1,750 kilo- metres. The track is broad gauge, and provides direct connections to Latvia, new nuclear power plant in Lithuania, with an estimated opening date of around Lietuva refinery is the largest foreign direct Poland, Belarus, and Russia (the Kaliningrad Region) as well as a link to Poland. 2018. The cost is estimated at 3-5 billion EUR. investment in Lithuania. Lithuania is also connected to Asia and China via rail. Railways in Lithuania carry For business and industry, the price of electricity is largely unregulated, and approximately 50 million tons of cargo and 7 million passengers per annum. electricity is available for purchase via the electricity market, which is based on the Scandinavian Nordpool model. Along with implementation of the Third There are around 550,000 m² of logistics and warehousing facilities in Lithuania. Energy Package of the EU, the Government has also approved the reorganization The biggest supply of new, modern warehousing facilities is in the capital city plan of energy companies of Lithuania. It stipulates the establishment of four Vilnius (around 300,000 m², growth – 7%), Kaunas is in the 2nd place (around units of electricity companies for the activities of transmission, generation, 200,000 m², growth – 77%), and Klaipėda in the 3rd (85,000 m², growth – 49%). distribution and maintenance. Lithuania’s northern, western, southeastern and northeastern regions are under- going further construction of logistic centres. According to the survey ”Getting Electricity”, which was conducted as a pilot for the Doing Business report, it takes only four steps for a new customer to connect to the electricity network in Lithuania. The only countries in Europe where it takes three steps include Germany, Switzerland, Denmark and Sweden. Compared to neighbouring Eastern Baltic seaports, the port of Klaipėda The cost of connection to the electricity is less than in neighbouring countries. has the widest shipping line network with other seaports. The European Office of Statistics estimates that electricity prices for a medium- sized Lithuanian household for 2009 were 8 Eurocents per kWh. The European average for 2009 was 12 Eurocents per kWh. Northern Europe Service Hub 2015 15
    • ICT Framework Talent Lithuania deserves to be named the home for the next NOKIA because some”Lithuania came up as one of the best cost/quality significant European and world-scale records belong to the country. Among the Most Multilingual and Most ”When we established our service production facility in Vilnius, the mostcountries for ICT sourcing (specifically with regardsto data entry, customer support specialists) amongst Lithuania maintains world’s leading ICT resources and infrastructure. Besides all Educated in the EU positive experience we had was the high quality of theEstonia, Latvia, Lithuania, Poland, the Czech Republic,Hungary, Romania and Bulgaria, and it was, besides most up-to-date ICT technologies (EDGE technology, 3G mobile communications infrastructure, mobile WiMAX 4G Internet etc.) fully implemented and functioning In 2009 91.3% of the Lithuanian population aged 25 to 64 had a secondary or higher education. This is the highest level of education in the country in staff which made it possible for us to reach the critical production in the entire country, the following significant records belong to Lithuania: level much faster than expected. They came highly educated and motivatedthat, specifically relevant due to its closeness a decade and one of the highest in the EU, the average in the EU-27 being and quickly adopted the company values. Which again made it possibleto Scandinavia and the knowledge of • World’s speediest upload Internet in 2009 around 70%. Already in 2008, compared to 2005, Lithuania had 90.6% of the for us to quickly build company loyalty and company pride.”Scandinavian languages that can be found in • World’s 5th and Europe’s No. 1 fiber broadband penetration (18%) population having completed secondary or higher education and stood 2nd in Per Andreas Vogt, General Manager Lindorff Support Services UAB, Vilniusthe Baltics. ” • Europe’s highest fiber optic density the EU, outpacing Estonia, Norway and Slovakia. Tiina Link, Innovation Norway the Baltics • EU’s 1st greatest mobile penetration of 147% • World’s No. 1 in the number of mobile telephone subscribers per 100 population - 3.4 million of Lithuanians use almost 5 million active SIM cards 30% of the Lithuanian population hold higher education degrees, compared % of population with secondary or higher education (2008) • Global leader in mobile e-signature to the EU average of 24%. And even 40% of the 25 - 34 year olds have higher ”Samsung is very excited to begin Lithuania’s first • Europe’s densest network of public Internet access points (875) education, which is almost twice as high as the EU-15 average. 100 90,9 90,6 90 89 Mobile WiMAX service. We believe that Samsung’s 90 87 86 85 85 82 81 81 80 78 field-proven Mobile WiMAX solutions will contribute 80 73 73 72 to Lithuania with its leading wireless World’s fastest upload Internet (2009), MB/s 91.7% of Lithuanian women aged 25 to 64 have secondary or higher education, 70 70 70 broadband service.” Lithuania 9,0 which is the highest figure in the whole EU. 60 50 53 Woonsub Kim, Executive Vice President and head of Telecom Japan 7,2 40 Europe 6,7 In 2009-2010, more than 144,000 students were enrolled in 23 Lithuania’s Systems Division in Samsung Electronics 30 North America 6,2 universities, and about 57,000 students were enrolled in 23 colleges. Out of 20 Hong Kong 5,0 241,000 of Lithuanian graduates in 2000-2009, 168,000 got their degrees in 10 Sweden 4,7 0 Russia 4,7 universities and 73,000 in colleges. The number of higher education graduates ic Sl ia ia a nd Ge ia Sv y en ia d ria De ary rk s Av m e ce m ly an nd ag ni an Ita bl increased almost 50% or 180,000 during the last decade, and Lithuania continues n ak tv en 27 do iu Ne ma an ed la st Asia 4,4 ua to ng pu rm La la er lg nl ov ov Po Au EU ing Fr Es n Un her Be Hu th Fi Re Sl K Li South Korea 3,2 t to be a pool of well-educated professionals for local and international businesses. h Source: d ec ite Cz South America 2,0 www.speedtest.net 0 2 4 6 8 10 Source: Eurostat Lithuanians are a multi-lingual nation, which makes Lithuanian employees even more attractive. According to the ”Europeans and Languages” survey, 90% of EU’s 1st greatest mobile penetration (2009) Lithuanians are able to participate in a conversation in a language other than their mother tongue. The EU-25 average is only 50%. The three most common Lithuania 147% languages in Lithuania are: Russian, English, and Polish. Italy 146% Luxembourg 142% Austria 134% Germany 132% Netherlands 129% Denmark UK 126% 126% 90% of Lithuanians speak at Ireland 119% Source: least one foreign language. European 0% 50% 100% 150% Commission Northern Europe Service Hub 2015 17
    • 2 universities in Lithuania have special curriculums of Scandanavian languages. Also, CSC, Lindorff Group, Unicall, Runway International, operating in Lithuania, Inventors and Innovators have specially designed 3-5 month courses of Norwegian, Danish and Swedish, and 40% of Lithuanian talent is concentrated in science and technology with 50% of the trained local employees successfully serve clients in Scandinavian languages. researchers below the age of 45. Lithuania has a pool of 18,000 R&D researchers and scientists in various fields. ”So far, our scientists are the only ones in Languages studied in 2009 Doctoral students Lithuanians are authors of a cheaper, but no less effective, version of an existing Central and Eastern Europe to have pulled off such a high- medicine for treating cancer Tevagrastim® and of a 3 times quicker way to cut level project.” 9% 285 unique know-how 3% genes using enzymes than the best previously known methods. Algirdas Bumelis, Head of Sicor Biotech, inventor of TevaGrastim® 861”No other country has got such a 4% 382 Also, Lithuanian laser companies were among the first in the world to transfer English Social sciencesin Western European as well as eastern countries’ languages, different German Biomedicine fundamental research into manufacture. 10%cultures and a variety of business habits, which naturally developed in French Technologies ”Whether it’s playing jazz or spearheading the Fluxus avant-garde artLithuania’s close historical relations with other nations.” Martin Loeffler, CEO of Eastern Europe Operations, Russian Other Humanities Physical Business Operation Costs movement, Lithuanians have a natural inclination for rearranging, for Computer Sciences Corporation (CSC) 74% 535 535 sciences looking at things with fresh eyes, for ”The Baltics offer lower costs than Western Europe but with the regula- coming at reality from an unusual angle. So it should not come as a surprise tory certainty of the EU.” that Lithuanian bioscientists have invented a way of using enzymes to Financial Times, June 14, 2010 cut genes three times quicker than the best previously known methods.” Most popular higher education programmes, 2009-2010 18,000 R&D researchers Wally Olins, Saffron Brand Consultants and scientists work in Lithuania. Computing Business and administration 28% 25% Wages Training teachers and pedagogy 10% ”The same technological solutions for the Dutch industry Law 7% Labour costs in Lithuania are more than twice lower than those in other EU Social sciences 7% can be offered by other Western European countries, but the countries and the US. The minimum monthly wage in Lithuania is currently Engineering 9% advantages of Lithuanian companies are production prices 232 EUR, and the minimum hourly wage is 1.4 EUR. The average gross monthly Humanities Arts Architecture and construction 3% 3% 6 earnings have decreased due to the economic recession. After reaching a peak and flexibility.” Other 27% of 672 EUR in 2008 Q3, they decreased to 588 EUR in 2010 Q1. Pepjin Bosman, FME-CWM business development manager (the Netherlands) 0% 5% 10% 15% 20% 25% 30% Average monthly gross wage, EUR, 2010 Source: Lithuanian Department of Statistics, www.stat.gov.lt 5000 4500 4430 4000 Number of graduates (BA, MA and 3500 3532 Field of education University and college students, 2010 specialized professional programmes) Number of graduates at colleges, 2009 3011 3000 2626 2601 at universities, 2009 2500 2000 Humanities 5103 1717 117 1500 1207 967 1000 588 676 713 742 773 825 943 Social sciences 8896 3401 - 500 268 401 0 Business and administration 31844 7056 5421 Ro a ia a ia y nd ia Re a Cr c tia ia A UK nd y k an ar i ar i ni ni US bl ar an tv ak en oa la a ua ng to nm pu rm La nl lg ov ov m Po Es Bu Hu th Fi Ge De Sl Sl Li Computer sciences 3437 949 135 h ec Cz Source: WageIndicator Foundation, www.wagebarometer.org, TOTAL: 118177 32072 12189 Lithuanian Department of Statistics www.stat.gov.lt Northern Europe Service Hub 2015 19
    • Major Business Taxes Business Start-up Costs Lithuania has an attractive tax system, characterized by low and flat taxes. Both Steps to start a private limited liability company in Vilnius: private and corporate incomes are taxed at flat rates. As of 2010, group taxation of corporate profit has been introduced. This allows groups to balance profits and losses within them, whereby losses can be transferred Step Period in Days Charge in EUR 7 steps It takes among different entities of a group if the controlling entity holds at least 2/3 and 26 days of the shares of the controlled entity. to start a business in Lithuania. Open a bank account with the minimum capital and Among other favorable conditions of corporate profit taxation in Lithuania are the get a bank certificate proving the availability of following: entities can reduce taxable profit if they are carrying out an investment 1 ~6 project into new technologies; expenses incurred by companies carrying out the funds; pay the registration fee and obtain the document evidencing the payment ”Lithuania is ranked 26 out of 183 R&D projects can be deducted thrice; 10% withholding tax on interest has been world’s economies on the ease of doing abolished for companies resident in the European Union. business and outpaces Latvia, Slovakia, Slovenia, Poland and Russia. Lithuania’s Notarize the agreement /memorandum of incorpo- strong advantages are the higher ration and bylaws; notarise the application for the 2 ~145 and professional education system, registration of the private limited liability company technological market base as well as Tax, % Lithuania Latvia Poland Sweden infrastructure.” Corporate profit tax 15 15 19 26.3 Doing Business 2010: Reforming through Register with the Companies Register, including Difficult Times by World Bank VAT 21 21 22 25 registration with the State Tax Inspectorate (the 6 ~57 Dividends 0* to 15 10 19 30 Lithuanian Revenue Authority) for corporate tax, VAT, and the State Social Insurance Fund Board (SODRA) ”When we established our service production facility in Average - 31.56% 15 (+ 6% health insurance Personal income tax contribution) 26 18/32 (depends on municipality and Vilnius, we were pleasantly surprised by county) no far less red-tape than we expected.” Complete VAT registration 10-15 charge 31 Per Andreas Vogt, General Manager Lindorff Support Services Social security tax paid by the 24.09 (+employee’s contribu- (+employee’s contribution of 30-44 31.42 UAB, Vilnius employer tion of 9%) Inform the State Labour Inspectorate of the estab- no 3%) 1 lishment of the company by letter or phone charge charged by local authorities on Real estate tax 0.3-1 1.5 the value of property 0.5/1.0/2.2 (2% for construction) Open a settlement bank account (to handle normal no 1 commercial transactions) charge Source: Doing Business*0% tax on dividends applies when an investor controls at least 10% of voting shares in the enterprise for a period of at least 12 months 2010 by the International Bank for Reconstruction and Source: „Taxes in Europe” database, European Commission’s Taxation and Customs Union Obtain the official seal of the company 2 ~9-26 Development and the World Directorate-General Bank, www.doingbusiness.org Northern Europe Service Hub 2015 21
    • Rent Rates and Land Costs Monthly rental of newly constructed warehouse space (EUR m2) Rental prices for business space vary depending on the location and the quality Vilnius 2.6-4.3 2.5-6 in Warsaw, Poland of the building. The price of land also varies substantially depending on the loca- 2.5-4 in Riga, Latvia tion, planning level, as well as the type of potential development. ~7.8 in Stockholm, Sweden Kaunas 2.6-4Monthly rental of office space (EUR m2) A-Class B-Class Klaipėda 2.3-4Vilnius 9.30-12.20 5.80-8.10 19-26 in Warsaw, Poland 11-16 in Warsaw, Poland Land sales price (EUR m2) 7-12 in Riga, Latvia 5-8 in Riga, Latvia ~33 in Stockholm, Sweden Vilnius 250-750 (central areas) 60 - 170 (outskirts) ~16 in Stockholm, Sweden 8.30-16 in Tallinn, Estonia 2250-675 (central areas) and 75-375 (outskirts) in Warsaw, Poland 4-6 in Tallinn, Estonia 400-1500 (central areas) and 200-400 (outskirts) in Riga, LatviaKaunas 5.20-10.40 2.90-4.60 There are no free land plots available in Stockholm, Sweden.Klaipėda 5.20-10.40 2.90-5.20 Kaunas 140 - 600 (central areas); 40 - 150 (outskirts) Sources: COLLIERS INTERNATIONAL Global Office Real Estate Review 2009, www.colliers.com Klaipėda RE&SOLUTION Baltic property market report, 2010, www.resolution-group.eu 160 - 500 (central locations); 40 - 150 (outskirts) OBER-HAUS Lithuanian Commercial Real Estate Q1 2010, www.ober-haus.com JONES LANG LASALLE Key Market Indicators Q1 2010 / European Office Property Clock www.joneslanglasalle.eu Utility CostsMonthly rental of retail space (EUR m2) High street Shopping centres* Utility Measurement Average rate in EURVilnius 7-26 6-13 80-85 in Warsaw, Poland 70-85 in Warsaw, Poland Electricity 1 kWh 0.069 - 0.078 8-35 in Riga, Latvia 5-40 in Riga, Latvia ~110 in Stockholm, Sweden ~58 in Stockholm, Sweden Natural gas 1 kWh 0.020 - 0.021Kaunas 5-10 5.2-8.7 Cold drinking water 1 m3 1.21 – 1.33Klaipėda 4.3-7.2 4.3-11.6Šiauliai 3-11.6 2.3-7.2 Cold water for technical purposes 1 m3 1.17 - 2.06Panevėžys 6-10 3-6 Sources: Hot water 1 m3 4.74 – 6.2 www.energy.eu;*Average retail units of 200 m 2 utility services companies Northern Europe Service Hub 2015 23
    • Business-supporting Environment EU Structural Funds and State Support for Corporate profit tax incentives for R&D: ”Lithuania is a perfect place to Businesses • Expenses incurred by companies carrying out R&D projects can be deducted from taxable income three times; Investment Project Cycle generate and realize new ideas: a peaceful and • Long-term assets used in the R&D activities can be depreciated within two tension-free environment conducive to business, EU Structural Funds are available in Lithuania for business development. Al- Evaluation and approval years. with engineering potential and vast possibilities together, 7.3 billion EUR have been allocated to Lithuania for the period of (Ministry of Economy, Invest Lithuania) for business and science collaboration, plus a good 2007-2013. 3.3 billion EUR have been designated for the Operational Program choice of skilled labour and managerial staff.” Corporate profit tax incentives for investments into new technologies: for Economic Growth. • Companies carrying out investments into new technologies can reduce their Wally Olins, Saffron Brand Consultants taxable profit by up to 50%. Investment expenses exceeding this sum can Letter of Intent The Operational Program for the Development of Human Resources is oriented at: (Ministry of Economy) be postponed to later, consecutive tax periods (up to five years). • Employment and more flexible jobs;Enterprises may apply for between 43,000 • Systems of lifelong learning; Investment guarantees and bank loan support are provided by INVEGA, a state- • Capacities of researchers and scientists;and 5.8 million EUR of support for • Improvement of public administration. established company. Guarantees are provided on bank and credit union loans. The company also subsidizes loan interest for small and medium-sized enterprises Application for financial support (Lithuanian Business Support Agency)developing their business projects. that need business financing. The Operational Program for the Economic Growth is oriented at: • Direct assistance to R&D and innovations; Project Finance Agreement • Favorable conditions for business and innovations; • Information society for everybody; • Transportation network; Support for • Energy supply networks. Businesses: The Operational Program for the Cohesion Promotion is oriented at: • Financial incentives packages offered by the Government to cover wage and personnel • Urban infrastructure of municipalities; training costs, purchase of equipment etc. • Diversifying of activities in rural areas; • Tax incentives for investments into new • Heritage/tourism; technologies and R&D • Health; • Tax “holidays” in 2 free economic zones • Labor market institutions; • Land and real estate tax relieves • Educational institutions; • Tailor-made information packages, guidance • Environment; through all the investment process (contact • Energy efficiency. building, arranging visits and meetings, dealing with authorities, investment site State support for businesses consists of support for R&D projects, profit tax selection etc.) as well as investment aftercare reduction for R&D, and investments into new technologies, tax relieves in by Invest Lithuania Lithuania’s 2 free economic zones and 4 industrial parks (see page 26), subsidies • Special agreements and assistance by the for employment projects, possible land and property tax relieves by local Government municipalities, investment guarantees, as well as bank loan support. Northern Europe Service Hub 2015 25
    • Ready-for-business Locations Free Economic Zones Lithuania welcomes foreign investors and businesses to take advantage of the Lithuania’s two free economic zones (FEZ) are located in the country’s economi- special ready-for-business locations: cally important centres and provide favourable conditions for developing busi- In 2010 Klaipėda FEZ has welcomed its • 2 free economic zones (FEZ) • 4 industrial parks (IP) ness activities by offering prepared industrial sites with physical and/or legal infrastructure, support services, and tax incentives. 21st investor Heidelbergce- ment - the global market leader in ag- • 5 integrated science, studies and business centres (valleys) gregates and one of the world’s largest Distance to near- Distance from manufacturers of building materials, which Free Economic Area in Planned 2 FEZes and 4 industrial parks focus on traditional industries, while 5 valleys est international Klaipėda will be engaged in the cement logistics Zone (FEZ) 2010 total area give preference to high-tech companies. airports State Seaport terminal operation in Lithuania. Kaunas FEZ 58,5 ha 534 ha 4 km to Kaunas Airport 228 km Regular Tax Taxes in 2 free economic zones 25 km to Palanga Airport ”We chose Kaunas FEZ for our business expansion in Lithu- rate % Klaipėda FEZ 62 ha 412 ha 7 km no corporate tax during the first 6 years 210 km to Kaunas Airport ania because of its ideal connection with main transport routes, the availability of qualified specialists in Corporate profit tax 15 and only 50% of corporate tax over the With superb road, rail and sea access, Klaipėda FEZ forms part of the hub of a the 2nd biggest city close to the FEZ, as well as special tax next 10 years multi-modal transport network. It was identified in the European Union Transport incentives.” Dividends 0* to 15 no tax on dividends for foreign investors Infrastructure Needs Assessment (TINA) programme as a site for the establishment Henri Nieminen, Finnfoam of a logistic centre, forming part of a European-wide network of these centres. Real estate tax 0.3-1 no real estate tax Klaipėda FEZ occupies a strategic location that is ideal for companies looking *0% tax on dividends applies when an investor controls at least 10% of the voting shares to relocate or expand production, to establish packing and distribution centres, in the enterprise for the period of at least 12 months and minimise logistics problems. For more information on Klaipėda FEZ please see www.fez.lt Browse the Lithuanian Market Map at www.investlithuania.com for more on ready-for-business locations and projects. Kaunas FEZ is located in Kaunas, the second biggest Lithuanian city with a population of about 349,000 and one of the major industrial cities in the Baltic area, and is planned to become one of the largest free economic zones in the Baltic Sea Region. Kaunas FEZ is located on the intersection of the Via Baltica, a European priority transport corridor connecting Helsinki, Saint Petersburg and Warsaw and the East-West highway linking the port of Klaipėda to Russia and Ukraine.In 2010 Klaipėda Free Economic Zone (FEZ) has been ranked the 5thbest Free Zone in the world in the category of ”Best Facilities”, and it For more information on the Kaunas FEZ please see www.ftz.ltis also listed among 25 Free Zones of the Future 2010/11 in the overallranking, by the premier Foreign Direct Investment (fDi) Magazine of One of the world’s leading plastic products manufacturers, INDORAMA of Thailand,Financial Times Ltd. (the world’s largest manufacturer of wire harnesses), YAZAKI (Finland’s biggest construction company), YIT, and other companies have chosen Lithuania’s free economic zones as the best places for their business expansion. Northern Europe Service Hub 2015 27
    • Industrial Parks (IP) Business Law There are 4 industrial sites in Lithuania, half of which are already fully prepared for business use and have all the necessary physical infrastructure (electricity, Company Law gas, sewerage, roads, etc.). The land in Lithuania’s IP may be subdivided into Types of companies smaller parcels corresponding to the investor’s requirements and is leased for The following types of legal entities are permitted to operate in the Republic of long-term periods at favourable prices. Infrastructure is brought to the investor’s Lithuania: 1) individual enterprise (sole proprietorship) (PĮ); 2) general partnership plot free of charge. Requirements for the Private Limited Public Limited (TUB); 3) limited partnership (KUB); 4) public limited liability company (AB); formation of business Company - UAB Company - AB 5) private limited liability company (UAB); 6) non-profit organization; 7) state Distance from Klaipėda State enterprise; 8) municipal enterprise; 9) agricultural company; 10) co-operative Industrial Park (IP) Area in 2010 Planned total area (till 2013) Distances to international airports Minimum authorized (share) Seaport enterprise; 11) European company; 12) European Economic Interest Grouping. Approx. EUR 2,900 Approx. EUR 43,450 capital 214 km to Vilnius Airport Šiauliai IP 54 ha 219 ha 140 km to Kaunas Airport 161 km The most common method of investment in the Republic of Lithuania is through Maximum number of share- the incorporation of a private or public limited liability company (UAB or AB) under 249 Not established 190 km to Palanga Airport holders (if any) 150 km to Vilnius Airport the Law on Companies of the Republic of Lithuania, or through the acquisition of shares in existing Lithuanian companies. Still, the most popular form of doing Minimum number of share- Kėdainiai IP 57 ha 132 ha 50 km to Kaunas Airport 205 km 1 1 business in Lithuania is through a UAB. A comparison of the main features of holders (incorporators) 220 km to Palanga Airport 135 km to Vilnius Airport both types of companies is presented in the table on the right. Liability of shareholders Limited Limited Panevėžys IP 58 ha 58 ha 115 km to Kaunas Airport 240 km 275 km to Palanga Airport Company registration Audit Not mandatory Mandatory 150 km to Vilnius Airport Registration of a UAB requires taking the following five steps: (1) lodge an Public trading in securities Prohibited Allowed Alytus IP 49 ha 49 ha 52 km to Kaunas Airport 294 km application for reservation of the UAB name in the State Enterprise Centre of 230 km to Palanga Airport Obtain the official seal of Registers; (2) prepare the incorporation documents according model establishment 2 ~9-26 the company documents; (3) open an accumulative bank account; (4) submit documents for certification by a notary public; (5) register the UAB with the State Enterprise Centre of Registers. The estimated time for incorporating a UAB is about 2 weeks Integrated Science, Studies and Business Centres (Valleys) after all the incorporation documents are duly executed. 5 integrated science, studies and business centres (valleys) are being developed Shareholders and will be launched in Lithuania in the coming 3-4 years by investing into their development almost 300 million EUR of the EU Structural Funds support dedicated The shareholders of an AB or UAB may be Lithuanian or foreign individuals orFor more information on the integrated science, studies and business for Lithuania for the period of 2007-2013. legal entities. There are no restrictions or special encumbrances set forth withcentres - valleys in Lithuania please visit: The 5 valleys, which will specialize in different scientific research fields (laser respect to foreign shareholders under the Law on Companies of the Republic and light technologies, nanotechnologies, semiconductor physics, electronics and of Lithuania. Lithuanian laws do not restrict in any way the participation ofSunrise Valley www.sunrisevalley.lt organic electronics, civil engineering, biotechnology, bio pharmacy, molecular foreigners in the management of Lithuanian companies. Foreign citizens maySantara Valley http://www.smm.lt/en/smt/valleys.htm medicine, ecosystems and safe environment, sustainable chemistry and bio pharmacy, be freely elected either to the supervisory council or the board or the positionSantaka Valley http://www.smm.lt/en/smt/valleys.htm mechatronics and biomedical engineering, energy, information and communication of CEO. However, if foreign citizens are employed in the company (employmentNemunas Valley http://www.smm.lt/en/smt/valleys.htm technologies, agriculture, forestry, food scientific research, marine business, natural is mandatory only for the CEO), they must obtain temporary residence permits.Baltic Valley www.balticvalley.lt resources and environmental protection), will be developed in the capital city Vilnius, These permits are normally valid for up to one year, but for EU citizens they may in Kaunas - the 2nd largest city and industrial centre, and the seaport Klaipėda. be issued for up to five years (permits are renewable). Northern Europe Service Hub 2015 29
    • Employment LawConclusion of an employment contractThe employment contract must be in writing, and in accordance with the model conditions, the written agreement regarding the termination of the employment must give him a written notice at least 2 or 4 months before the termination have a work permit issued by the Lithuanian Labour Exchange at the Ministry ofform established by the law, and it must contain essential provisions, i.e. those contract has to be concluded. date and provide a compensation. Social Security and Labour. EU citizens are released from the obligation to obtainon which parties must agree to validate the employment contract, and other The employer may terminate the employment contract both when the employee The employee is entitled to terminate the non-term employment contract as well a work permit, but those who intend to reside in Lithuania for more than threeprovisions. The essential provisions are: the place of work and work functions. is at fault and when he/she is not. In cases where the employee has offended as the fixed-term employment contract prior to its expiry by giving his employer months within a half-year period must obtain a temporary residence permit. ItSeparate types of employment contracts can also provide for other essential his responsibilities, he/she can be dismissed without a prior notice. It must be a written notice thereof at least 14 days in advance. Collective agreements may is not possible to apply for a residence permit while staying in Lithuania on aprovisions (e.g. term of contract, seasonal work, etc.). It is forbidden to enter noted that the laws establish certain limitations and guarantees when terminat- set a different period of a notice up to one month. The Labour Code provides short-term visit visa.into a fixed-term employment contract, if the work is of a permanent nature. ing the employment contract even in cases where the employee is at fault. The for the circumstances when the minimum period of a notice to terminate theExceptions may be applicable in accordance with the laws or collective agree- employer may terminate the employment contract with the employee without the employment contract by initiative of an employee may be 3 days.ments. The duration of the fixed-term employment contract may not exceed 5 employee’s fault, upon a prior notice of termination as set forth in the Labour Promising Business Sectorsyears. There is also an option of a remote work contract which may lay down Code of the Republic of Lithuania, and if the employee cannot not be transferred Work hours, overtime work, and remunerationthat a function or part of functions agreed in the contract will be performed by to another work under his/her consent. Largest and most diversified industry in Northeasternthe employee at places acceptable to the employee other than the workplace. The normal work hours for an employee may not exceed 40 hours per week. The EuropeBesides the essential provisions, in every employment contract both parties are The non-term employment contract can only be terminated for valid reasons daily period of work should not exceed eight working hours. A five-day workingrequired to agree on the conditions of payment for the work. (employee’s qualifications, professional aptitude, his/her behaviour at work, week is standard, but it may be extended to six days. Generally, overtime is economic or technological circumstances, restructuring of the workplace etc.), prohibited. An employer may apply overtime hours only in exceptional cases,Termination of an employment contract and must provide a prior notice of termination as set forth in the Labour Code which are specified in the Labour Code of the Republic of Lithuania. In any case of the Republic of Lithuania. Certain restrictions are in effect when terminating the employee’s overtime hours shall not exceed four hours in two consecutiveThe employment agreement may be terminated under the mutual agreement days and 120 hours per year for each employee. A different annual duration may employment contracts with individuals of certain categories (under the age ofof the parties. In this case the procedure established in the Labour Code has be established in the collective agreement for overtime hours, however, it may 18, the handicapped etc.); also, individuals of certain categories must be givento be complied with, i.e. one party is obliged to make a written proposal to not exceed 180 hours per year. The pay for overtime and night work shall be at preference to remain at work when staff is being downsized. Additionally, ter-another party to terminate the employment contract and the latter will have least one and a half times the hourly pay/monthly wages established for the mination of the employment contract with a prior notice when the employee isup to 7 days for consideration of the proposal. In case the parties agree on the employee. The average minimum monthly wage is 232 EUR. not at fault is only permissible when it is not possible to transfer the employee to another work upon his/her consent. Vacation In case it is planned to dismiss a group of employees, the employer is obliged The minimum annual paid holiday is 28 calendar days, but is increased to 35 to inform about it and to consult with the representatives of the employees calendar days for employees: 1) under the age of 18, 2) a single parent raising before taking the following decision. Furthermore, it is obligatory to inform the a child under the age of 14 or a disabled child under the age of 18, 3) disabled Lithuanian Labour Exchange about the dismissal of the group of employees. The employees. Normally, all employees are entitled to their annual paid vacation employer can terminate the fixed-term employment contract before the expiry leave after they have worked in the company continuously for an initial period thereof only in extraordinary cases when the employee cannot be transferred to of six months. another work with his/her consent or upon payment of an average wage to the employee for the remaining period of the employment contract. Work permits for foreign citizens The employment contract with the employee can also be terminated without a prior notice on specific grounds stipulated in the law. The employer dismissing Foreign citizens (except EU citizens) who are not permanent residents of Lithuania the employee at the employer’s initiative without fault on the part of employee may work temporarily in Lithuania under an employment contract, provided they Northern Europe Service Hub 2015 31
    • Shared Services and Business Process Outsourcing (BPO) Biotechnologies • Lithuania ranks 21st best services location in A.T.Kearney Global Services • Products that don’t have equivalents in the CEE: recombinant proteins for Location Index 2009 (climbing up by 8 places, in comparison with 2008) medical use (interferon α-2b, human growth hormone, granulocyte colonies • Government has set a strategic goal: Lithuania will become the Northern stimulating factor, erythropoietin), human recombinant interferon alpha-2b (Reaferon), the human growth hormone Somatogen-L, the modified granu- Europe Service Hub by 2015 with the share of exports of services making locyte colony stimulating factor (GCSF) product Grasalva, the human granu- approximately 1/3 of Lithuania’s total exports, and 1/3 of the total FDI in locyte colony stimulating factor (G-CSF) product TevaGrastim, Nb.Bpu10I Lithuania settling down in the services sector nicating endonuclease, Eco57MI restriction endonuclease, TrueStartTM Taq • 15 investment projects in business services in 2008-2010 from companies DNA Polymerase, cleanup of plasmid DNA, NoLimitsTM DNR marker, etc. such as Barclays Bank of the UK, Computer Sciences Corporation (CSC) of • World-class research and inventions, e.g. TevaGrastim® cancer treatment the US, Mirror Accounting/Lindorff of Norway etc. medicine, 30% less expensive but as effective as existing medicine; 3 times • More than 30,000 multilingual university and college graduates in 23 uni- quicker way to cut genes using enzymes than the best previously known versities and 23 colleges every year, and another 200,000 in the pipeline methods • Labour pool in finance and insurance of 22,000 (2009) • Pool of 18,000 R&D researchers and scientists • 90% of Lithuanians speak at least one foreign language, 50% speak two • 15 biotech research centres carrying out research on protein, enzymes and foreign languages, and 30% speak English nucleic acid for pharmaceutical purposes, and executing molecular biology research on prokaryote and eukaryote cells • 16 institutions (including 5 major universities) training biotech specialists in cooperation with both domestic and foreign biotech companies • 1st Baltic medical and pharmaceutical valley in the Baltic countries • Sector sales growing 22% annually, in comparison with the average global ICT figure of 15% • 80% of biotech and pharma production exported to over 70 countries • World’s speediest upload Internet in 2009 • Financial support and fiscal incentives for R&D projects • Global leader in mobile e-signature • World’s 5th and Europe’s No. 1 fiber broadband penetration (18%) Lasers • Europe’s highest fiber optic density • Global leadership in applying fundamental research to manufacturing • EU’s 1st greatest mobile penetration of 147% • Leading in global production of ultra-fast parametric light generators (80% • World’s No. 1 in the number of mobile telephone subscribers per 100 popula- of the market) tion - 3.4 million of Lithuanians use almost 5 million active SIM cards • More than half of the global market of pico-second laser spectrometers • Europe’s densest network of public Internet access points (875) • 10% of the global market of lasers used for scientific research • EDGE technology, 3G mobile communications infrastructure, mobile WiMAX • 11 science centres and laser technology research centres carry out funda- 4G Internet mental research • ~ 48,000 engineers • 92% of the Lithuanian population use e-banking and 88% declare their • 37,000 students in engineering income tax online69% of Lithuania’s GDP is created by services. • 13 out of the 20 largest IT companies in the Baltic States are based in Lithuania • 10,000 students of physical sciences • Every tenth laser professional holds a PhD • Largest share in value added created on the national market • IT and communications labour pool of almost 25,000 (2009) • Sector annual growth of ~20% • 15 higher education institutions with IT curriculums • 86% of production exported to nearly 100 countries Northern Europe Service Hub 2015 33
    • Metal Processing, Machinery and Electric Equipment Food • Eco-farming gaining lightning-fast popularity: almost 3000 eco-farms • Former Soviet Union’s technological leader and present regional leader • Deep manufacturing traditions • Baltic leaders in the sector operate in Lithuania • Favourable climate for agriculture • Flexibility to satisfy small and non-standard orders • Well-developed transport infrastructure • Subcontracting for famous brands • Modern technologies • Quality management system ISO 9001:2000 • Lithuanian beer awarded at the ”European Beer Star Awards”, ”World Beer • Biggest technical university in the Baltic countries Kaunas University of Cup” and ”World Beer Championship” Technology - 17,000 students Transport and Logistics • Crossroads of North, East and West • 2000 routes to 40 countries Furniture and Wood Processing • 2 Pan-European transport corridors • 3 international airports • Highly forested country, deep traditions in the wood processing industry • Northernmost ice-free seaport on the eastern shore of the Baltic Sea • Among the most important suppliers for IKEA • Regionally best network of roads and highways • Highest quality requirements and design standards • 3 multimodal logistic centres • Competitive prices • Good geographical location and short delivery terms Tourism • Flexibility to fulfil non-standard orders • Lithuania’s capital city Vilnius breathes Europe’s cleanest air and is recog- • Labour pool of over 50,000 nized greenest among the new EU-Members • Unique costal area of almost 100 km • Rich natural resources (22,000 rivers and rivulets, about 3,000 lakes) Textile and Apparel • 4 Lithuanian sights and 2 cultural traditions are on the UNESCO World Heritage Lists • One of the most specialised EU countries in the textile and clothing sector • 500 rural tourism homesteads all across the country • 2,500 new specialists trained annually • Modern SPA resorts in an ecological environment • Flexibility and short delivery terms • Developed recreational infrastructure: 2 world-standard water amusement • European and world-standard production parks, 5 ice rinks, a number of theatre and cinema halls, multifunctional • Innovative research and development of new products in the Lithuanian amusement centres Textile Institute operating since 1960 • Well-known cruise lines regularly visit Klaipėda State Seaport Northern Europe Service Hub 2015 35
    • Culture of Trust Top Foreign Investors in LithuaniaInvestor Country of Origin Industry Sector Investment in Lithuania (EUR M) Jobs created in Lithuania Investor Country of Origin Industry Sector Investment in Lithuania (EUR M) Jobs created in Lithuania Russia Fuel and power industry 380.41 2234 USA Information technologies 17.24 104 USA Information technologies 12.28 50 Poland Fuel and power industry 259.56 1672 Networking and communication Norway 63.54 786 Canada Molecular biology 202.7 22 devices Electronics, technology and Russia Financial services 167.2 452 Germany 21.82 341 innovation Sweden Financial services 109.04 152 Norway Electronics 19.26 336Barclays Bank UK Financial services 73.79 584 Finland Retail, food store chain 191.48 1600 USA Financial services 8.7 264 Sweden Furniture 73.9 240 Denmark Financial services 55.6 164 Sheet metal manufacturing, Norway 70.29 367 automotive components Norway Financial services 30.21 26 Germany Shipping and logistics 50.64 340 USA Information technologies 42.64 180 Sweden Textiles 8.24 40 Source: Invest Lithuania; fDi Markets database, www.fdimarkets.com, 2010 ”We chose LITHUANIA because of the high quality of education ”Lithuania (Vilnius) was selected as an attractive location here, which has resulted in the development of world-class IT profes- because of its strong talent pool of highly-skilled, well- sionals, many of whom are multilingual, and because of the quality of educated and multilingual professionals, its stable political Lithuania’s technology and connectivity. We will show the world the and improving economic climate and world-class infrastructure talent that exists in Lithuania.” as well as the Government’s policy in attracting foreign direct Barclays Bank investments.” Western Union Northern Europe Service Hub 2015 37
    • ”When estimating conditions for starting our business in Lithuania, we hardly found any obstacles. ”The joint research centre Macroeconomic FiguresInstead, we discovered numerous advantages, which I am sure our enterprise will benefit with a global high-tech gianta lot from. Conveniently located between East and West and with a pool of multilingual local undoubtedly marks a huge Lithuanian economy. Key statisticsspecialists, our Lithuanian centre will serve clients both in the East and in the West, and even achievement for Lithuania. It isin the Middle Asia in the near future. Our competitors seeking to collaborate with us on the turning into a country creatingLithuanian market just prove our selection to be very worth and really promising.” innovations for the entire 2005 2006 2007 2008 2009 2010F 2011F world.” GDP growth, % 7.8 7.8 9.8 2.8 -14.8 1.6 2.8 GDP, EUR M 20 870 23 978 28 577 32 203 26 650 27 155 28 148 Harmonized consumer price index (average annual), % 2.7 3.8 5.8 11.1 4.2 -0.1 1.5”With Fermentas, we are better-positioned to meet the ”The decision to move a part of the operations to Lithuania will help Average monthly gross earnings, EUR 369.6 433.2 522.0 623.2 594.4 563.2 566.8demands of molecular and cell biologists for complete the SEB Group to increase efficiency and to reduce the costs of this Unemployment level, % 8.3 5.6 4.3 5.8 13.7 16.7 15.5workflows that can accelerate their research and improve division, which is particularly urgent in view of the growing requirementsresults.” from clients and strengthening competition. We are happy that Foreign direct investment, stock, EUR M 4 690 6 921 8 377 10 283 9 149 - - some of the functions are being moved to Lithuania where the SEB has experienced professionals and a strong position.” Exports, EUR M 9 490 11 263 12 509 16 077 11 795 9500 10200 Imports, EUR M 12 498 15 429 17 813 21 144 13 073 10300 11000 Exports as a share of GDP, % 57.5 59.1 54.1 60.2 44.3 34.9 36.2”When we established our service production facility in Imports as a share of GDP, % 64.6 69.3 67.4 71.7 49.2 37.9 39.1Vilnius, the most positive experience we faced was the Source: Lithuanian Department of Statistics, www.stat.gov.lt; Ministry of Finance of the Republic of Lithuania, www.finmin.lthigh quality of the staff which made it possiblefor us to reach the critical production level much fasterthan expected. They came highly educated and motivatedand adopted quickly the company values. Which againmade it possible for us to quickly build company loyaltyand company proudness.” ”28 foreign companies accomplished 35 new foreign direct ”Lithuania’s economy is recovering supported by a de- investment (FDI) projects and created 5300 new jobs termined policy response and the global upturn. A size- in Lithuania in 2009. During January − September of 2010 able fiscal adjustment − the right response to the crisis − was rewarded with renewed access to 20 foreign investors carried out 21 new FDI projects and ”CSC chose Lithuania to offshore international capital markets. The Government’s efforts from Denmark base because we created 2224 new jobs.” to facilitate FDI have already played a role in attracting leading international companies.” found here very skilled IT FDImarkets.com investment monitor, 2010 specialists and Scandinavian International Monetary Fund, 2010 languages speakers.” Northern Europe Service Hub 2015 39
    • Composition of the Lithuanian economy, 2010 Structure of gross value added by kind of economic activity Export by type of product, 2009 Import by type of product, 2009 at current prices, 2009 7% 4% Wholesale and retail trade Agriculture 7% Mineral products 15% Mineral products 4% 17% 5% 4% Manufacturing Industry 22% Machinery and mechanical appliances 29% Machinery and mechanical appliances 4% 6% 4% Real estate, renting and business 21% Construction Products of the chemical and allied Products of the chemical and allied 6% activities Trade, hotels and restaurants; 6% industries 5% industries 21% 6% Transport, storage and communication transport, storage and communica- Vehicles; aircraft; vessels and associa- Vehicles; aircraft; vessels and associa- 16% 5% Public administration and defence tions 7% 10% ted transport equipment ted transport equipment Construction Financial intermediation; real estate, Prepared foodstuffs; beverages and 5% Prepared foodstuffs; beverages and 8% 16% 13% 7% Education 6% renting and business activities 9% spirits; tobacco 6% spirits; tobacco 14% Agriculture, hunting and forestry Public administration; services for 7% Plastics, rubber and articles thereof 6% 12% Textiles and articles thereof 14% 7% 7% Health and social work social sphere and community activities Vegetable products Base metals and articles thereof Electricity, gas and water supply 32% Textiles and articles thereof Plastics, rubber and articles thereof Services - 69% Other Miscellaneous manufactured articles Vegetable products Live animals; animal products Other Base metals and articles thereof OtherFDI in Lithuania, 1997-2009 Major countries investors, 2009 Major export destinations, 2009 Major importers to Lithuania, 2009 Number of investors FDI, EUR bn 12% Sweden Russia 17% 13% Russia Denmark 12% Russia Estonia 23% Poland Finland Latvia Sweden 2% Germany France 2% 30%1997 1045 0.81 11% Denmark Latvia 2% 10% Germany France 2% Poland China 2% Germany Norway 3% Poland Ukraine 3% Latvia Denmark1998 1624 1.21 3% 4% Netherlands Other Estonia US 3% Netherlands Finland 3% 3%1999 1758 1.88 4% 10% Estonia 3% 10% Netherlands Norway Italy Czech Rep. 3%2000 1893 2.39 5% 4% Belarus Italy 3% Belgium UK 7% 11% 10% 4% UK Other 4% Sweden Other 7% 4% 4%2001 1996 2.70 7% 5% 7% 6% 10% 7% 5%2002 2168 3.09 Source: Lithuanian Department of Statistics, www.stat.gov.lt2003 2444 3.822004 2652 3.972005 2901 4.692006 3150 6.922007 3151 8.382008 3396 10.282009 3615 9.152010 3876 9.64 Northern Europe Service Hub 2015 41
    • Life in LithuaniaOne reason Lithuania is such a nice place to do business is because it is a terriblynice place to be: to live in, to work in, to spend time in; it is pretty and enjoy- ”Not only are there excellent business opportunities, there isable; it has a strong and benign sense of national identity that is exciting and awelcoming social atmosphere too amongst these very genuineinteresting; it’s full of people who are lively and healthy and diligent; and it has and friendly people.”a culture that is familiar to you whether you’re Russian or American or Danish. David Earp, UK Trade & Investment, CambridgeshireLithuania offers a comfortable space for a family from abroad to enjoy life witheasy access to all sorts of social services. For example, foreign families mayapply to international schools specializing in the education of children fromforeign families, as access to an international school is an important considera-tion of family life. Increasing enrolment at the Vilnius International School, theAmerican International School of Vilnius and Vilnius French School (see Social ”I love every minute of my time here.Institutions on page 56) reflects the growing diplomatic and investor community. I love it so much, and as I wasAlso, Lithuanian universities welcome foreign students eager to enrich their one of the first to arrive, I hope toknowledge. Furthermore, private healthcare services are available to Lithuania’s be the last to leave.”visitors in all cities and towns. David Telky, Pentland company According to the International Living 2010 Quality of Life Index, the quality of life in Lithuania (consisting of the cost ”Lithuania, Hong Kong and Malta are top- of living, leisure and culture, economy, environment, freedom, health, ranked for the quality of health and hygiene, with high levels of access to clean drinking water infrastructure, risk and safety, as well as climate) is one of the and sanitation. In addition, hospital beds and highest among EU members (higher than that of Sweden, Great doctors are readily available for those who do Britain and Greece) as well as No. 22 in the world. fall ill. They are therefore able to cater very well to a major concern for tourists when considering where to travel abroad.” Eurostat’s survey on price levels across Europe Travel and Tourism Competitiveness Report 2009 revealed that Lithuania is on the list of the by World Economic Forum Top 10 least expensive countries in Europe. Life in Lithuania 43
    • Competitive Living Costs World-Recognized Heritage in of the options. Furthermore, there are routes and paths for walking, horseback- riding, cycling, bird watching, and water tourism. Many of these locations are Lithuania easily accessible via the motorways. Vilnius, Lithuania, EUR Riga, Latvia, EUR Warsaw, Poland, EUR Stockholm, Sweden, EUR Lithuania has four sites included on the UNESCO World Heritage List. The first site is the Old Town of Vilnius, one of the most beautiful in Europe. Built in the SPA treatments Monthly apartment rent (a furnished 300 - 750 400 - 900 600 - 1500 620 - 1200 Middle Ages, it has remained authentic until today. Various SPA centers in Lithuania provide high quality beauty and medical treat- 2-bedroom apartment) in the city centre ments for a reasonable price. Ancient traditional methods of treatment are Monthly rental of 100 m² office space in The second site is the Curonian Spit, seen and enjoyed annually by many visitors combined with modern technologies. For example, Druskininkai is one of Lithu- 600 - 1200 600 - 1000 1500 - 2400 1200 - 2550 the city centre from all over the world. It is a long and narrow piece of land, which is locked in ania’s oldest resorts. Mineral water springs were discovered here in the 18th Hotel accommodation (4-star)/one the waters of the Baltic Sea from the west, and the Curonian Lagoon from the century, and some time later, some of the highest quality healing mud in Europe 31 - 101 27-250 50 - 190 130 - 221 east. It is a beautiful creation of both nature, and man. was also found there. weekend night These natural resources are now being used to rebalance and restore the harmony Annual tuition of a non-citizen child in an The third site is the Cultural Reserve of Kernavė – a historic settlement that of the mind, body and soul. This type of relaxation is popular not only among 1225 - 17550 12400 - 14700 3500 - 12000 5883-17485 international school for foreigners represents a unique, no longer existent culture, and civilization. Lithuanians, but also among foreign tourists – Russians, Poles, and Germans. 90 - 150 (public) 35 - 43 (public) ~75 (public) Cultural life Kindergarten monthly fee (one child) 54-95 The fourth site is the Struvė Geodesic Arc which crosses a part of Lithuania, and 150 - 450 (private) 270 - 423 (private) 200 - 380 (private) extends through nine other European countries. The Arc is one of the greatest Sports club monthly membership 30 - 150 30-71 40 - 200 40 - 120 scientific and technological achievements of the 19th century. It manifests a A large variety of festivals take place during the year in major cities and resorts. unique international connection of science and culture. These include classical and jazz music festivals, folk, theatre and film festivals. Basic medical tests at a private clinic 10 - 30 5-24 30-50 23 - 145 Music and theatre performances have always been world-class in Lithuania. Taxi 1 km ride 0.4 - 0.6 0.8 0.4 - 0.74 0.85 - 1.50 Two outstanding Lithuanian cultural traditions enrich the UNESCO Representative Foreign theatre groups, opera and ballet companies, and popular music groups List of the Intangible Cultural Heritage of Humanity. Lithuanian cross-crafting include Lithuania in their world touring schedules as well. 1 minute call from and its symbolism has caught the world’s eye with its deep spirituality, and - mobile network 0.05 - 0.06 0.03 - 0.13 0.10 - 0.21 0.05-0.18 abundant varieties. Wooden and iron crosses, and their inspiring ornamentation, Vilnius, the capital of Lithuania, was selected as the European Capital of Culture - fixed network 0.06 - 0.10 0.03 - 0.27 0.02 - 0.08 0.02-0.06 are still present in the traditional landscape. for the year 2009. Hundreds of cultural projects and events took place in the Car rental for a weekend* 35 - 95 40 - 150 26 - 150 70 - 150 Lithuanian capital. A large number of those successful cultural events have Another living tradition is the Baltic Song and Dance Festival, which enchants become a new tradition. Theatre tickets for two people 6 - 55 5 - 50 4 - 40 18 - 65 both the visitors, and the participants. Over 20,000 singers, musicians, and dancers flood the city with an endless amount of music and joy every four years. Lunch for 2 in the city centre 10 - 60 10 - 80 6 - 50 64 - 218 Sutartinė, a unique style of traditional folk song, is waiting to be included in* Rates include 24-hour rental period, VAT tax included UNESCO Representative List of the Intangible Cultural Heritage of Humanity.Source: Invest Lithuania Unique nature 5 national parks, and 30 regional parks filled with virgin forests and unspoilt marshlands, are found in Lithuania. They are inhabited by protected wild animals and rare birds.In 1940 the standard of living in Lithuania was higher thanin Finland. Lithuania has 22,000 rivers and rivulets and over 3,000 beautiful lakes. There are plenty of opportunities to learn more about Lithuania and its lovely, unspoiled countryside. Relaxing in countryside tourism homesteads by a tranquil lake is one Life in Lithuania 45
    • Invest Lithuania Focusing on Foreign Direct InvestmentINVEST LITHUANIA is a team of more than 30 professionals actively working toattract foreign investors to Lithuania, as well as to spread the word all around ”I have worked with a number of groups such as yours over the years andthe globe about immense business opportunities on the biggest market among I can safely say that the professionalism, flexibility and speed ofthe Baltic countries. execution was without doubt the best I have experienced. My team and I are looking forward to continuing to work with you in the comingINVEST LITHUANIA invites foreign businesses to join the club of foreign investors months as we move into the implementation phases of this project. Oncealready feeling at home in Lithuania: WESTERN UNION (USA), COMPUTER SCIENCES again my sincere thanks for all that you have done for us.”CORPORATION (USA), BARCLAYS BANK (UK), RGE (UK), CITCO (Netherlands), MIR- David Larkworthy, SVP Head of Operating Strategy, EMEA-APAC, Western UnionROR ACCOUNTING (Norway), FINNFOAM (Finland), STIGA GAMES (Sweden), METSO Financial ServicesPAPER (Sweden), INVACARE HOGH (Denmark), TRANSCOM (Luxembourg), DEMATIC(Germany), PEEK&CLOPPENBURG (Germany), WINCOR NIXDORF (Germany), MAR- ”When we started collaborating with the Ministry of Economy and InvestZOTTO (Italy), CERUTTI (Italy), CIE AUTOMOTIVE (Spain), INDORAMA (Thailand), Lithuania, we received a very favourable standpoint and much interest asD.BOSS (South Korea), WAKO BUSSAN (Japan), and many others. well as support, and decided not to look elsewhere.” Premkumar Bhagwatsaran, CEO of Ideal Invent TechnologiesThe team of INVEST LITHUANIA facilitatesforeign investors in Lithuania by: Contacts Representative Office in Germany Jogailos g. 4 Poststraße 33, • Providing information and consultancy on investment opportunities in LT-01116 Vilnius, Lithuania 20354 Hamburg, Germany Tel. (+370 5) 262 7438 Tel. (+49) 40 350 85 36 Lithuania Fax (+370 5) 212 0160 Fax (+49) 40 350 85 37 • Making analyses on local offerings and providing benchmarking services to E-mail: info@investlithuania.com E-mail: litauen@investlithuania.com investors www.investlithuania.com Representative Office in Belgium Avenue de Cortenbergh, 168 • Searching for matching local partners and building contact networks 1000 Brussels, Belgium • Guiding through the investment location selection process and organising Tel. (+32) 22376675 Fax (+32) 27338770 company visits E-mail: tomas.vasilevskis@litbre.eu • Providing investment aftercare services Invest Lithuania in Social Media:INVEST LITHUANIA is ready to take care of what you really care. Free of charge. INVEST LITHUANIA – Focusing on Foreign Direct Investment 47
    • Enterprise Lithuania Focusing on Quality ProductionENTERPRISE LITHUANIA with more than 10 years experience is the maingovernmental institution responsible for the promotion of exports of Lithuaniangoods and services.ENTERPRISE LITHUANIA is trusted among business communities worldwide. Ourexpertise is gathered by our long-lasting relationship with Lithuanian exporters,international projects and local initiatives: Competitivenessw Center, ClustersCompetence Network, Exporters’ Academy, which are giving an impact on knowledge,market intelligence and competences in each specific industry.ENTERPRISE LITHUANIA assists foreignbusinesses interested in Lithuanianproducts and services by: • Providing information about Lithuanian products and manufacturers • Developing international business promotion projects Our sector consultants answer direct inquiries for specific information free- We are active in cooperation with international business community and always of-charge. follow latest business development trends. ENTERPRISE LITHUANIA is always • Searching for matching local partners open for proposals to enhance import promotion from and partnerships with On request individual visits to Lithuanian producers, exporters are organized foreign organizations. free-of-charge. Note that Enterprise Lithuania does not provide matchmaking with agents and distributors for the Lithuanian market. • Organizing trade missions, seminars, b2b matchmaking events and participation in business exhibitions Contacts Incoming and outgoing trade missions are organized often in cooperation with A.Goštauto 40 A partner organizations abroad. In general, these services require a modest fee, LT-01112 Vilnius, Lithuania but occasionally b2b matchmaking events (in Lithuania) are free-of-charge. Tel. (+370 5) 249 9083 Fax (+370 5) 204 5808 Enterprise Lithuania followed by leading Lithuanian manufacturers participates E-mail: info@enterpriselithuania.com in a number of main business exhibitions and events. You can find our national www.enterpriselithuania.com stand in Hannover, Birmingham, Paris, Baku ant other exhibition centers, where our experts are eager to answer your questions. Enterprise Lithuania in Social Media: ENTERPRISE LITHUANIA – Focusing on Quality Production 49
    • Business Communication Tips, Dos and DontsBusiness etiquette in LithuaniaCommunicationLithuanian is the official national language, but most businessmen speak Englishand Russian.Meetings are arranged in advance and confirmed by a telephone call or e-mail.The agenda of the meeting is also arranged in advance.There is a tradition of exchanging business cards during the first meeting.Lithuanians are very punctual. You will definitely receive a phone call from avisitor a couple of minutes before meeting, if he feels he will be more than fiveminutes late. Visitors are also expected to arrive on time for every appointment.Decision-making AppearanceThe decision-making process in Lithuania is relatively quick. You simply have Business dress in Lithuania is conservative. Businessmen usually wear dark suitsto agree on a specific date with your partner, and a decision will be ready by in the autumn and winter seasons. Light suits are worn in the summertime.that date. Businesswomen also dress conservatively, usually in dark suits and white blouses.Deadlines are expected to be respected. The planning process may be a little long Behaviourand detailed, but once the planning is over, the project will move very quickly. A handshake is customary at both the beginning and the end of a meeting, and when visiting a home. People that have worked together for years still shake hands each morning, as if it were the first time they were meeting. Be sure to look directly into the person’s eyes while shaking hands. Lithuanians like to keep a larger personal space around them. The acceptable distance is the length of an outstretched arm. If attending dinner at a family residence, it is appropriate to bring a gift, such as a bottle of wine, dessert, or a bouquet of flowers for a female host. Business Communication Tips, Dos and Donts 51
    • Dos and DontsDO arrive on time. Lateness might indicate that you don’t respect your hosts. DON’T make jokes about Lithuanian culture. Lithuanians are very proud of theirDO exchange business cards after introductions. culture, so to make a joke about it would be in poor taste. Some basic phrasesDO wait for a woman to extend her hand first. DON’T confuse a Lithuanian with being Russian. Lithuanians hate it when foreign-DO be aware that you might have to remove your shoes before entering a ers, unaware of the troublesome history of their country, confuse them English Lithuanian Lithuanian home. with Russians. Praising Communism and the Soviet times would also be Hello SveikiDO bring a gift for your hosts, such as chocolates, liquor, flowers, or fruit. a major mistake in this country. Good morning Labas rytasDO give flowers in odd numbers, not even. Even numbers of flowers are for funeral. DON’T mix Baltic capitals – each country is very proud to be independent, and Good afternoon Laba diena Good evening Labas vakarasDO expect a Lithuanian to try to protest if you give them a gift. Explain that apart of that, Lithuanians are extremely proud to have 1000-year history. Good-bye Viso gero it’s just a little something and offer it again until they accept. DON’T shake hands or greet someone over a threshold; it’s bad luck. Go into the Please PrašomDO compliment the host. room first, and then exchange handshakes. Thank you AčiūDO tip about 10% of the bill. That is customary, but not obligatory. DON’T remain seated while greeting someone. Stand up! Yes/No Taip/ neDO open your gift upon receipt. DON’T move to a first name basis until invited to do so. Excuse me Atsiprašau DON’T wear t-shirts, shorts, sneakers, or sweats during business meetings. DON’T give yellow flowers, as they mean separation or splitting. DON’T sit at the sharp corner of a dinner table if you are single, as it means that you will stay single forever. :) DON’T put your hands in your pockets or sit with an ankle resting on the other knee. Both are considered poor etiquette. DON’T try to schedule meetings in July and August, which are common vaca- tion months. DON’T try to bring personal relationships into business. They are kept separate. DON’T ask personal questions. It may seem intrusive. DON’T give a baby gift before a baby is born; it’s bad luck. DON’T smile unless you mean it. In Lithuania, smiling a lot can be seen as insincere. DON’T drop litter. Business Communication Tips, Dos and Donts 53
    • Useful LinksGovernmental Institutions Other Governmental Institutions Lithuanian Business Organizations Foreign Business Associations andGovernment of the Republic of Lithuania www.lrv.lt Lithuanian State Property Fund www.vtf.lt Investors’ Forum www.investorsforum.lt MissionsMinistry of Economy www.ukmin.lt Department of Statistics www.stat.gov.lt Confederation of Lithuanian Industrialists www.lpk.lt American Chamber of Commerce www.acc.ltMinistry of Agriculture www.zum.lt Lithuanian Business Employers’ Confederation www.lvdk.eu Advantage Austrian Commercial Office www.advantageaustria.org/lt State Patent Bureau www.vpb.ltMinistry of the Environment www.am.lt Lithuanian Business Confederation | British Chamber of Commerce www.bccl.ltMinistry of Culture www.muza.lt Tourism Department www.tourism.lt ICC Lithuania www.icclietuva.lt Finland Trade Centre Finpro Lithuenia www.finpro.fi/lithuaniaMinistry of National Defence www.kam.lt Bank of Lithuania www.lb.lt Flemish Trade Baltic States vilnius@flanderstrade.com Lithuanian Business Support Agency www.lvpa.ltMinistry of Education and Science www.smm.lt Customs Department www.cust.lt French-Lithuanian Chamber of Commerce www.cci-fr.lt Association of Lithuanian ChambersMinistry of Finance www.finmin.lt Central Mortgage Office ww.hipotekosistaiga.lt Italian Trade Commission www.italtrade.com of Commerce, Industry, and Crafts www.chambers.ltMinistry of Foreign Affairs www.urm.lt Information Society Development Committee www.ivpk.lt Italian Chamber of Commerce for Lithuania www.italchamber.ltMinister of Health Care www.sam.lt Vilnius www.cci.lt Innovation Norway vilnius@innovasjonnorge.no Lithuanian Agricultural and Kaunas www.chamber.ltMinistry of the Interior www.vrm.lt Russian Trade Office www.rustrade.ltMinistry of Justice www.tm.lt Food Market Regulation Agency www.litfood.lt Šiauliai www.rumai.lt Swedish Trade Council litauen@swedishtrade.seMinistry of Social Security and Labour www.socmin.lt State Enterprise Centre of Registers www.registrucentras.lt Klaipėda www.kcci.lt German Baltic Chamber of Commerce www.ahk-balt.orgMinistry of Transport www.transp.lt Lithuanian Business Support Agency www.lvpa.lt Panevėžys www.ccic.lt Swiss and Baltic Chamber of Commerce www.sbcc-chamber.com Useful Links 55
    • Foreign Representations - Social Institutions,Diplomatic Missions Foreign Culture CentresAustria www.aussenministerium.at/wilna Vilnius International School www.vischool.ltAzerbaijan info azembassy.lt The American International School ofBelarus www.lithuania.belembassy.org Vilnius (AISV) www.aisv.ltBelgium www.diplomatie.be/vilnius Vilnius French School www.efv.ltBulgaria vilnius bgembassy.lt Medical Diagnostic Centre www.medcentras.ltCanada www.canada.lt Baltic-American Medical and Surgical Clinic www.bak.ltChina www.chinaembassy.lt French Culture Centre www.centrefrancais.ltCzech Republic www.mzv.cz/vilnius Institute of Italian Culture www.iicvilnius.esteri.itDenmark www.ambvilnius.um.dk Lithuanian National Culture Centre www.llkc.ltEstonia www.estemb.lt Polish Culture Centre www.polskidom.ltFinland www.finland.lt Russian Culture Centre www.rkc.ltFrance www.ambafrance-lt.org Swedish Culture Centre skc.su.ltGeorgia http://lithuania.mfa.gov.ge Swiss Culture Centre www.sveicarija.su.ltGermany www.wilna.diplo.deGreece embassy@grembvil.w3.ltHungary mission.vno kum.hu Links for TravellersIreland www.embassyofireland.lt Lithuanian Internet gates www.lietuva.ltItaly www.ambvilnius.esteri.it Official travel and tourism guide www.travel.ltJapan www.lt.emb-japan.go.jp Lithuanian Yellow Pages www.yellowpages.lt orKazakhstan http://kazakhstan.embassy.lt www.visalietuva.lt/enLatvia www.am.gov.lv/en/vilnius/ Vilnius International Airport www.vilnius-airport.ltMoldova www.lituania.mfa.md Kaunas Airport www.kaunasair.ltNetherlands www.netherlandsembassy.lt Palanga Airport www.palanga-airport.ltNorway www.norvegija.lt Lithuanian Railways www.litrail.ltPoland www.wilno.polemb.net Klaipėda State Seaport www.portofklaipeda.ltPortugal vilnius@embportugal.ltRomania www.romania.ltRussia www.lithuania.mid.ruSpain emb.vilnius@mae.es , vilnius mcx.esSweden www.swedenabroad.com/vilniusThe Holy See nuntiusbalt@aiva.lt For more useful addresses please seeTurkey turkemb.vilnius mfa.gov.tr www.businesslithuania.comUkraine www.mfa.gov.ua/lithuaniaUnited Kingdom www.britain.ltU.S.A. http://vilnius.usembassy.gov Useful Links 57