lithuania‘s investment environment and international ... · unemployment rate1 10.7% source 3:...
TRANSCRIPT
LET’S TALK LITHUANIA.
Rugilė Andziukevičiūtė
November 26| 2015
Lithuania‘s Investment
Environment and International
Competitiveness
#1 For GDP/Capita growth in EU2
Population1 2.9 million
Labour Pool1 1.5 million
Capital Vilnius
Official language Lithuanian
Dominant foreign languages
English, Russian, German, Polish
Real GDP growth1 1.9% (2015)* 2.9% (2014) 3.3% (2013)
Unemployment rate1 10.7%
Source 3: Heritage Foundation, Economic Freedom Index, 2015 Source 4: World Bank Doing Business Report, 2015 Source 5: World Economic Forum, Global Competitiveness Index, 2015
* Forecast (Ministry of Finance) Source 1: Statistics Lithuania, 2015 Source 2: Eurostat, 2004-2013
Lithuania – perfect position for operations in Europe
#15
Freest economy in the world3
#11 For ease of starting business4
2
Facts & Figures
For global competitiveness (5 positions up)5 #36
Good track record
3 2 Infrastructure and logistics
Young competence & talent
Lithuania – attractive location
for foreign companies
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Lithuania‘s qualities for investment
#1 Young competence & talent
Source 1: Eurostat, 2013 Source 2: Eurostat, 2013 (age group 25-64) Source 3: Eurostat, 2012 (age group 20-29) Source 4: Eurostat, 2012 (age group 25-29) 4
Lithuania’s qualities
Top 5 in the EU with the highest ratio of young people1
Ambitious young professionals
#1 in the EU or 93% of our population have higher or secondary education2
#1 in the EU for mathematics, science and technology graduates per capita3
16% of Lithuania’s young professionals specializes
in engineering, manufacturing and construction (x2 EU average)4
69% of population aged 18-35 would like to work for an international company2
3-4% attrition rate at manufacturing companies3
~7 000 engineering graduates annually4
Language
80% proficiency in English among young professionals5
50% speak at least 2 foreign languages6
#1 Young competence & talent
Source 1: Ministry of Education and Science, 2014-2015 Source 2: If annual survey, 2012 Source 3: Alliance for Recruitment, HR Agency, 2013 Source 4: Eurostat, 2008-2012
Source 5: National Census, 2011 Source 6: Europeans and their languages, 2012 5
Lithuania’s qualities
34%
21% 13%
12%
12%
8%
ENGINEERING STUDENTS’ STRUCTURE BY MAJOR FIELDS1
Transport Engineering
Electronics &Automatics
Civil Engineering
Mechanics & MetalWorks
Energy & Electricity
Other
Products: Thermo-insulating panels Isothermal transportation
equipment: insulated trucks, trailers and semi-trailers
Employees: 330+
Est.: 1999, Panevezys
Lithuania: Schmitz Cargobull
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#2 Impressive track record
Source 1: Statistics Lithuania, 2014 Source 2: The Financial Times FDI monitoring database, 2014 and Invest Lithuania data
Source 3: Statistics Lithuania; structure by value of industrial production; excluding manufacture of coke and petroleum products Source 4: Statistics Lithuania, 2014; production of Lithuanian origin; excluding manufacture of coke and petroleum products
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Let’s talk Lithuania
Turnover of foreign controlled manufacturing companies doubled since 20091
20% of Lithuania’s GDP is generated by
manufacturing sector1
>67% of all manufacturing production is exported mainly to4:
#1 Germany
#2 Sweden
#3 Poland
#4 Latvia
#5 United Kingdom
30%
20% 18%
16%
7% 9%
MANUFACTURING STRUCTURE | 20133
Food, Beverages & Tobacco
Engineering Goods
Furniture, Wood & Paper
Chmicals & Pharmaceuticals
Textiles and Leather
Other
16%
13%
10% 10% 8%
43%
TOP COUNTRIES INVESTING IN MANUFACTURING 2010-20142
Sweden
Norway
Finland
Germany
United States
Other
International Manufacturing Presence in Lithuania
Manufacturing plant
Products: pet food Headcount: 800 Established: 1993 / Klaipeda region
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Let’s talk Lithuania
Products: industrial woodworking equipment Headcount: 40+ Established: 2015/ Vilnius
Products: electrical distribution systems Headcount: 1,100 Established: 2014 / Panevezys
Products: iso-thermal trucks, trailers and semi-trailers Headcount: 330+ Established: 1999 / Panevezys
Products: electronic circuit boards Headcount: 400 Established: 1993 / Kaunas
Products: Tobacco Headcount: 430 Established: 1993 / Klaipeda
Manufacturing plant
Manufacturing plant
Manufacturing plant
Manufacturing plant
Manufacturing plant
#3 Business friendly environment – tax free zones
* Conditions apply
7 Free Economic Zones (FEZ):
0% corporate tax for the first 6 years*
50% discount on corporate tax over the next 10 years*
0% tax on dividends*
0% tax on real estate*
Industrial Parks (IP)
6-12 months delivery of build-to-suit manufacturing facilities
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Lithuania’s qualities
#3 Fast to connect infrastructure - logistics
Source 1: European commission, 2012 Source 2: www.portofklaipeda.lt Source 3: Girteka Logistics, 2014. Estimates based on two-driver shared shift model
Road & Rail:
25,800 truck fleet in Lithuania in comparison with Germany: 308,078, Denmark: 21,038, Sweden: 15,2481
Rail cargo services direct to Russia, Belarus, Latvia, Poland, Germany, Ukraine and Asia (incl. China)
Air:
4 International Airports, access to major European cities and Moscow within 2-3 hours flight
Sea:
Klaipeda State ice-free Seaport
14.5 m deep port, handling up to 60 million tons of cargo annually, the largest port in the Baltic States2
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Lithuania’s qualities
3
• Current status
• Where do we go
from here
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Competition is increasing across the CEE; as a result, Lithuania has to strengthen its competitive advantage
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Current status
Source: fDi Markets, number of greenfield projects, 2015
The number of projects is decreasing in the CEE; as a result, competition is increasing.
Lithuania is Baltic leader in terms of project volume.
933
917
719
648
599
2010 2011 2012 2013 2014
42
36 39
39
44
14
18
10 12
13
25
26
27
14
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2010 2011 2012 2013 2014
Lithuania Latvia Estonia
Number of services projects in Lithuania is higher than regional average, while our manufacturing share is slightly lower
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FDI PROJECTS PER MILLION OF POPULATION, 2010-2014
FDI PROJECTS’ ACTIVITIES IN CEE AND
LITHUANIA, 2010-2014
17
46
5
13
20
6
Manufacturing Services Other (construction,energy,
infrastructure, etc.)Lithuania CEE
33%
39%
28%
25%
54%
21%
Manufacturing
Services
Other (construction, energy, infrastructure, etc.)
Current competition for FDI within the CEE and other countries
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Current Status
Norway Portugal Ukraine
Poland
Czech Republic
Romania Bulgaria
Latvia Estonia
India Finland Sweden
Ireland
Serbia
MAIN COMPETITORS:
OTHER COMPETITORS:
Invest Lithuania priority sectors – for the targeted attraction of investments
Source: Invest Lithuania
Electronic products
Metal products
Industrial machinery and equipment
Consumer goods
Life sciences
Service centres
Technical support centres
Design, development and testing
Data centres
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Target Sectors and Countries M
AN
UFA
CT
UR
ING
S
ER
VIC
ES
Globally, countries and cities promote themselves in similar ways, but there are areas in which we can distinguish ourselves
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Current status
LOCATION SELECTION CRITERIA[1] LITHUANIA’S STRENGTHS AND OPPORTUNITIES
THAT CAN BE USED TO MAKE US A UNIQUE VALUE PROPOSITION
Work force and working atmosphere
Business establishment and tax regulations
Real estate
Business services and infrastructure
Capital investments and related regulations
Government support and incentives
Market potential
Risk assessment
Supply chain and logistics
Work force and working atmosphere
Political support and flexibility
Business establishment, regulations, various incentives
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Future Development
MANUFACTURING
Future Lithuania – a hub for high value added manufacturing and knowledge intensive services
SERVICES
Call centres
Business services centres
Outsourcing
Design and development
Parts’
manufacturing
Components’
manufacturing
Product assembly
New products’
testing, R&D
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Education: Talent pool that meets labour market demand
Quality of specialists‘ preparation
Immigration: Attraction of qualified specialists
Attractive conditions
R&D infrastructure and business collaboration: Universities
Exploitation of open access centres
What do we need in order to reach this? Future Development
Business regulation: Reduction of administrative burden
The main competitive advantage
Rugilė Andziukevičiūtė
A: Jogailos St. 4 / LT-01116
T: +370 5 262 7438 E: [email protected]
www.investlithuania.com
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Let’s talk Lithuania