During a courtesy meeting with a delegation from Partit Laburista, Malta Chamber...
Lithuania, also officially known as the Republic of Lithuania is the southernmost of the three Baltic States and is a country in Northern Europe. It is surrounded by Belarus to Southeast, Poland to the Southwest and Latvia to north.
The strategic location of the country has provide valuable natural resources in abundant. Lithuania has good reserves of oil around the Baltic Sea shelf and western region. Apart from natural resources, the country of Lithuania boasts a state of the art infrastructure. It has a good network or rail-road-water and air transport which provide easy access to other parts of Europe. Just like its infrastructure, Lithuania also boasts of a highly qualified workforce. Lithuania has a highly educated and multi-lingual workforce which provides good business service which ultimately benefits the investors.
Lithuania had the fastest economic growth prior the 2008 recession. However, the effect of recession was less in Lithuania as compared to other EU countries as it managed to register the highest growth rate than other EU countries. This growth trend is going to continue in Lithuania and it is expected to grow at much faster rate than other countries of European Union.
Lithuania registered the highest economic growth in the second quarter of 2010 among the European Union nations. Lithuania joined the European Union in the year 2004 and ever since its economy is booming as it has became a major outsourcing destination in the entire European Union. According to the Economist Intelligence Unit Lithuania has the highest rating of Baltic states in terms of having quality of life index.
The Ministry of Finance of Lithuania has predicted a positive growth trend for Lithuania and has stated that the GDP of Lithuania is expected to grow at a rate of 2.8 per cent in 2011. This shows that there is an upward trend prevailing in the economy of Lithuania.
With a population of 3.28 million, Lithuania has lots in store for investors. Due to its strategic location and its excellent infrastructure investors can gain easy access to surrounding markets of Lithuania.
The Gross Domestic Product (GDP) of Lithuania was $32.8 billion in the year 2009. Even in the tough economic conditions, Lithuania managed to register a growth rate of 3.2 percent in the second quarter of 2010 which was the highest among all the European Union nations. As far as Foreign Direct investment (FDI) is concerned, Lithuania had an inward inflow of $12.1 billion.. As far as latest figures are concerned, FDI in Lithuania was worth EUR 9,482.4 million whereas FDI per capita was EUR 2,881 on average. Majority of its investment came from Sweden followed by Poland, Germany and Denmark.
Lithuania offers loads of investment opportunities in majority of its sectors. Its sophisticated infrastructure, well educated labor growth and a strategic geographical location really make it an attractive destination to locate manufacturing and production hub. It provides loads of opportunities to investors especially in the Baltic region. Some of the sectors worth investing in Lithuania include the Information and communication Technology (ICT), Biotech, Metal Processing, Machinery and Electrical Equipment, Plastics, Furniture, Wood Processing and paper industry, Textile and Clothing. Apart from these, the country of Lithuania also has tremendous opportunities for investors in sectors such as Real Estate and Construction and Business Process Outsourcing (BPO) and Shared Services and Biotech and Lasers.
There has been a remarkable economic transformation in terms of foreign investment in Lithuania. This transformation got even a major fillip after Lithuania became a member of the European Union in the year 2004. It was able to attract more foreign investment projects due to its liberal foreign investment policies. The Government of Lithuania has also set an agency to help and assist foreign investors with setting up businesses in the country. It is also granting lots of incentives to investors to encourage more foreign investment in the country. All these things show that the government of Lithuania is pro-investor and gives more importance to foreign investment. The tax policy of Lithuania is also business friendly. This is evident from the fact that the corporate tax of Lithuania is only 15% and its overall tax burden is also smaller in comparison with other EU nations.
The government of Lithuania provides numerous incentives to foreign investors who want to set up business in Lithuania. These mostly include granting tax benefits, investment guarantees and Bank Loan support, support for Research and Development Projects and structural funds. The government of Lithuania offers special incentives to investors investing in high value-added products and high-technology sectors.
The Ministry of Economy of the Republic of Lithuania has established a non-profit agency known as the invest Lithuania. The main objective of this agency is to promote foreign investment in the country as well as create an economically attractive image of Lithuania in the overseas market. It provides all the necessary information and assistance to investors who wish to invest in the country free of charge.
A growing economy, a positive growth trend, a business friendly government, attractive incentives and a vibrant infrastructure and workforce, all these features really make Lithuania one of the best countries to invest in the European Union.
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