Prezentacija Internetui En

Slide 1

Lithuania – go for international business

2008

WWW.LDA.LT

http://www.lda.lt/

Lithuania in the World• Territory: 65,300 km2

• Common borders with: Latvia Belarus Poland Russia (Kaliningrad Region)

• Population: 3,4 million (84% of Lithuanians, 7% Poles, 6.5% Russians )

• Capital and biggest city: Vilnius (population: 542,000)

• State Language: Lithuanian

• State Government: Democratic Republic

• Religion: 80% of Roman Catholics, 5% Orthodox

Lithuania Attractive for Business Establishment and Expansion

• Convienent geografical location

• Stable macroeconomic environment

• Competitive business development costs

• Ecxellent infrasctructure

• Industrial network and incentives for investors

• Attractive business sectors

• Quality human resources

• Highest life quality among the Baltic States

110 m Baltic Sea Region population

340 m WesternEuropean population

250 mCIS population

Part of the Baltic Sea Region & Crossroads of Huge Markets

Source: Lithuanian Department of Statistics, www.stat.gov.lt

Half of the Total Baltic GDP, 2007

Estonia 23%

Latvia 29%

Lithuania 48%

http://www.stat.gov.lt/

2005 2006 2007 2008 (forecast)

2009 (forecast)

GDP, EUR bn

20,7 23,8 28,1 31,9 35,1

GDP, % 7.9 7.7 8.8 5.3 4.5

Annual average inflation, %

3 4.5 8.1 9.2 5.1

FDI, EUR bn

6,9 8,3 10 - -

Exports, EUR bn 9,5 11,3 12,5 -

Exports growth, % 17.7 12.2 4.7 9.1 7

Import, EUR bn 12,4 15,4 17,7 - -

Imports growth, % 17.2 13.8 9.1 8.1 5.5

Unemployment, % 8.3 5.6 4.3 5.2 6

Lithuanian Economy at a Glance

Sources: Lithuanian Department of Statistics, www.stat.gov.lt, Ministry of Finance, www.finmin.lt


http://www.finmin.lt/

Lithuania and Maastricht Criteria

Maastricht (Convergence) Criteria

Criterion figure in 2007

Lithuania’s performance in 2007

Price stability (Inflation rate) 2.8% 5.8%

State finances: - Government deficit - Government debt

3%60%

0.9%17.7%

Currency exchange rate 3,4528 ±15% 3,4528

Long-term interest rate 6.4% 4.5%

Sources: Eurostat, European Central Bank, Bank of Lithuania, Ministry of Finance

GDP by Economic Sectors, 2007

0% 10% 20% 30% 40% 50% 60% 70%

Agriculture

Construction

Industry

Services

5%

8%

23%

64%



FDI in Lithuania, EUR bn, %



0% 5% 10% 15% 20%

Netherlands

Latvia

Finland

Estonia

Germany

Russia

Sweden

Denmark

Poland

4.3%

4.4%

5.2%

5.9%

8.6%

9.6%

11.7%

12.9%

18%

Major Countries Investors, 2007



0% 5% 10% 15% 20% 25% 30% 35% 40%

Other

Hotels and restaurants

Construction

Real estate

Electricity,gas,water supply

Trade

Transport, storage and communication

Financial intermediation

Manufacturing

2.1%

0.8%

1.6%

8.4%

9.3%

11.5%

12.8%

17.2%

36.3%

FDI in Lithuania by Sector, 2007



Slide 12

Top Investors in Lithuania

1999 2000 2001 2002 2003 2004 2005 2006 2007

Exports 3483 4417 5314 5881 6158 7478 9490 11266 12512

Imports 5605 6326 7366 8279 8526 9958 12498 15437 17667

0

4000

8000

12000

16000

20000

Lithuania’s Foreign Trade, EUR m


0% 10% 20% 30% 40% 50% 60% 70%

Denmark

United Kingdom

Estonia

Poland

Germany

Latvia

Russia

CIS

EU

4.1%

4.6%

5.8%

6.3%

10.5%

12.9%

15%

10.7%

24.5%

Lithuania’s Major Exports Partners, 2007


0% 10% 20% 30% 40% 50% 60% 70%

EstoniaSweden

ItalyNetherlands

LatviaPoland

GermanyRussia

CISEU

3.6%3.7%4%4.3%5.5%

10.6%15%

18%9.8%

21.9%

Lithuania’s Major Imports Partners, 2007


0% 5% 10% 15% 20% 25%

Other

Animal products

Prepared foodstuffs;beverages;tobacco

Miscellaneous manufactured articles

Plastics and articles thereof

Textiles and textile articles

Chemical products

Transport means

Machinery and equipment

Mineral products

21.4%

5.5%

6.1%

6.8%

7.5%

7.5%

8%

10.5%

12.9%

13.8%

Lithuania’s Exports by Products, 2007


0% 5% 10% 15% 20%

Other

Prepared foodstuffs;beverages;tobacco

Plastics and articles thereof

Textiles and textile articles

Base metals and articles thereof

Chemical products

Transport means

Mineral products

Machinery and equipment

18.1%

4.2%

4.2%

4.8%

7.8%

9.7%

16.4%

17.3%

17.5%

Lithuania’s Imports by Products, 2007


1.1%

1.9%

3.8%4.9%

5.4% 6%

6.2%

8.8%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

2000 2001 2002 2003 2004 2005 2006 2007

Profitability of Businesses Constantly Increasing

Non-financial enterprises profitability growth


One of the Most Business-friendly Tax Policies in the EU

Ranking of total tax revenue by countries in 2006 as a percentage of GDP

Source: Eurostat

29.229.53030.431.1

41.241.8

46.146.8

49.750

0 10 20 30 40 50 60

ROSKLTLVEE

EU27EA13

FRBESEDK

Slide 20

Main Business Taxes, 2008

Tax %

Corporate profit tax 15

VAT 18

Dividends 15

Personal income tax 24

One of the Lowest Taxes in Central and Eastern Europe, 2008

5% for books, magazines, medicine, frozen and ecologic food products, passenger transportation etc.

9% for residential property construction and renovation

Corporate tax, %

Personal income tax, %

VAT, %

Lithuania 15 24 18

Latvia 15 25 18

Estonia 21 21 18

Poland 19 19, 30, 40 22

Czech Rep. 21 15 19

Slovakia 19 19 19

Hungary 16+4 18, 36 20

Bulgaria 10 10 20

Romania 16 16 19

Wages, 2008 IIQ

Wages EUR

Minimal hourly wages 1,40

Minimal monthly wages 232

Average monthly wages 648


0 1000 2000 3000 4000

LithuaniaLatvia

HungaryEstonia

Czech RepublicPoland

SloveniaIreland **

Germany **Norway *

594

635

721

784

852

919

1326

2330

3103

3784

Competitive WagesAverage monthly salary in EUR, 2007

* Sept 2007, ** in industry in 2006 Source: National Statistical Offices

Slide 24

• Opening a company:

up to EUR 600 (documentation preparation, notary public services, registration) and up to 15 days

• Minimum authorized capital for:

private companies - EUR 2,900

public companies - EUR 43,450

Business Establishment Costs

Purchasing Power in Lithuania (1)

Purchasing power index by UBS investment bank (Switzerland)

Source: UBS Investment bank (Switzerland), www.ubs.com

0 20 40 60 80 100

Warsaw, PolandRiga, Latvia

Vilnius, LithuaniaBudapest, Hungary

Tallinn, EstoniaBratislava, Slovak Rep.

Ljubljana, SloveniaPrague, Czech Rep.Stockholm, Sweden

London, Great BritainBerlin, GermanyNew York, USA

28.82931.234.235.637

4448

78.686.8

99.7100

Purchasing Power in Lithuania (2)

0 20 40 60

Bratislava, Slovak. Rep.Budapest, Hungary

Vilnius, LithuaniaWarsaw, PolandTallinn, Estonia

Prague, Czech Rep.Ljubljana, Slovenia

Riga, LatviaStockholm, Sweden

Berlin, GermanyLondon, Great Britain

New York, USA

5548

4343

3939

3528

211716

13

Purchasing power index by UBS investment bank (Switzerland)

Source: UBS Investment bank (Switzerland), www.ubs.com

Period of time (minutes) needed to earn for 1 McDonald’s Big Mac hamburger

Slide 27

• Crossroads of international transport routes - two EU-priority transport corridors

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

• Northernmost and only ice-free seaport on the eastern shore of the Baltic Sea – Klaipėda State Seaport

Excellent Infrastructure

Direct Routes to Most Cities

• Transport hub, connecting sea, land and railway routes from East to West; main shipping lines to the ports of Western Europe, South-East Asia and the continent of America pass through the port

• Handling around 20% of all freight passing through the Eastern Baltic ports; container handling capacity the greatest among the Baltic ports

• The draught of the entrance channel is 15 meters and the draught of the port navigation channel is 13-14,5 meters. It is foreseen to increase the water depth in the northern part of the port up to 17,5 meters

• Handling roughly 7,000 ships every year and 21 mn tonnes of cargo; accepting large-tonnage vessels: dry-cargo vessels up to 70,000 DWT, tankers up to 100,000 DWT and cruise ships up to 215 meters length

Klaipėda State Seaport – Major Transport Hub

Ro-ro lines

General cargo lines

Container lines

Shipping Lines

Slide 31

Convenient Industrial Network

Klaipėda FEZ:412 ha greenfield territory

Kaunas FEZ: 534 ha greenfield territory

8 industrials parks:greenfield territory from 15 to 219 ha

Diversified Industry

• Industry - N 23% of country’s GDP

• N 40% of total FDI settles down in industry (EUR 3.7 bn in 2007)


• At least a EUR 5.8 m or, in the case of investment into the development of a R&D centre, at least a EUR 1.4 m investment in the territory of Lithuania will become eligible for the Programme support

• Priority will be given to the direct investment associated with development of sectors of high and medium-high technologies, also increasing number of companies generating high value-added products, solution of employment problems, and creation of quality jobs that are particularly attractive to highly qualified specialists

New Investment Promotion Programme for the Years 2008-2013

EU Support for Lithuania in 2007-2013

Approx. EUR 7 bn (approx. EUR 3 bn in 2004-2006)

0% 10% 20% 30% 40% 50%

Operational Programme of Technical Assistance

Operational Programme for the Development of Human Resources

Operational Programme for the Promotion of Cohesion

Operational Programme for Economic Growth

1.4%

13.8%

39.1%

45.7%

Source: Ministry of Finance, www.finmin.lt

Slide 35

Promising Economic Sectors (1)

• Transport & logistics – excellent geografical location and infrastructure

• Energy – promising international energy projects

• Business services – huge demand not only in Lithuania, but also in the whole Baltic Sea Region

• ICT – companies leading among the Baltic States

• Biotech – production does not have equivalents in Central and Eastern Europe

• Plastics – with three huge plants leading in the region; greatest scope of FDI in Lithuania

• Lasers – global leader in production and exports of certain products

Slide 36

Promising Economic Sectors (2)

• Machinery & electrical equipment – widely-acknowledged high-tech products

• Furniture & wood processing – one of the largest factories in Eastern Europe; among most important suppliers for IKEA

• Textile & apparel – 20% of labour force in manufacturing industry, innovative production

• Food – widely demanded, 1/3 exported

• Real estate – largest market among the Baltic States with the biggest development potential

• Tourism – well-preserved nature; developed business network of rural tourism; world-class entertainment and leisure services; forthcoming Lithuanian events of international importance

Slide 37

• One of the best-educated people in Central and Eastern Europe; the percentage of Lithuanian population with higher education is two times higher than the EU-15 average and is also the highest in the Baltic States (source: Eurostat)

• 22 universities and 28 colleges with a total enrolment of 200,000 students

• Kaunas University of Technology (www.ktu.lt) - largest technical university in the Baltic States

• One of the most multilingual peoples in the EU - among five EU countries with the highest percentage of people speaking at least one foreign language (mostly English, Russian and Polish)

Lithuania’s “Gold and Oil”

Source: Lithuanian Department ofStatistics, www.stat.gov.lt

0% 10% 20% 30%

OtherComputing

Architecture and buildingArts

HumanitiesEngineering

Social scienceLaw

Teacher training adn education scienceBusiness and administration

17%4%4%4%5%

8%

8%

9%18%

23%

Most Popular Professions

Most popular higher education progammes, 2006-2007

High Quality of Life

• 22 universities and 28 colleges (in all 5 biggest cities), more than 60,5 thous. education specialists

• More than 3700 medical institutions, approx. 14 thous. doctors, 400 doctors for 100 thous. inhabitants

• 3700 wireless Internet zones, mobile communication penetration of 147% in 2008 IQ, almost 5 million active SIM cards

• 25,7 thous. new cars registered in 2007, which is by 41% more than in 2006, and the most among the Baltic States

• 4 UNESCO World heritage sites

• Well-preserved nature, ecological tourism

• World-class entertainment and leisure services, international cultural festivals

• Prices are approximately 65% lower than the EU average

Perfect Place for Vacation

WWW.LDA.LT

Lithuanian Development Agency (LDA)

• A-to-Z information on the Lithuanian market

• Guidance through the entire investment process • Search for matching Lithuanian partners, building contact networks

• Panning and implementing international projects

• Millenium of Lithuania in 2009

• Vilnius – European Capital of Culture 2009

• The World Forum for Direct Investment 2009

• Presidency over Organisation for Security and Co-opration in Europe (OSCE) in 2011

• European Men’s Basketball Championship in 2011

• EU presidency during the 2nd half of 2013

Forthcoming Lithuanian Events of International Importance

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