ADVANTAGES OF LITHUANIA
Being the biggest of the three Baltic Sates, Lithuania
has made a dramatic progress during the last 10 years. According
to the International Monetary Fund, it is "a rising
regional star". Some economic observers call it a Baltic
Tiger due to its spectacular GDP growth (9,4% during first
quarter of 2003!).
Having no natural resources, Lithuania has always been
oriented towards manufacturing industry and export of
high quality products. After regaining independence in
1990, Lithuanian economy managed to re-orientate from
Russian market towards Western European. On May 1, 2004,
Lithuania will become a member of EU, but already now
nearly 70% of Lithuanian exports go to EU and other Western
counties.
Lithuania's strong progress toward membership in the
European Union and NATO has won broad recognition, while
the process of EU accession has helped the country improve
its legal, tax and customs systems - all of which is great
for business. It's also a benefit for investment, as investing
in Lithuania becomes an integral part of EU-wide business
development strategies.
Many international firms have established themselves
in Lithuania over the last few years. Foreign direct investments
are rising sharply, with more and more reinvestment.
Why are so many companies coming here, and expanding?
There are several good reasons for that:
- Strategic Location Bridging the EU And
the CIS
Lithuania is strategically located as the gateway between
the EU and the CIS. Being on a sea and land route, Lithuania
is serving as an arterial road between the East and
the West, the North and the South.
- Availability of Well-trained, Competitive
Labour Force
The yearly number of university graduates per 1000
inhabitants is one of the highest in the region. The
cost of labour is among the lowest. The average monthly
wage in the manufacturing sector in Lithuania is EUR
320, one tenth that of industrialised countries, including
those in the EU. It is also 20% - 50% lower than that
in CEE.
- Very Attractive Operating and Living Costs
Utilities, rent, building, overhead, service and living
costs are among the lowest in Central and Eastern Europe.
Thus, Lithuania has significant cost advantages while
offering geographical proximity to the EU and Eastern
markets. Its modern European life style enriches its
long history and charming natural environment.
- Well-developed Transportation Networks
The EU's Transport Commission designated Lithuania as
the region's transport hub, with 2 out of the 10 priority
corridors in Europe intersecting in Lithuania. A network
of European-standard 4-lane highways links major industrial
centres. The country offers 4 international airports
and an ice-free port on the Eastern Baltic.
- World-Standard Export Production
Most foreign businesses invest in Lithuania for export
production purposes. Many local producers have already
achieved ISO 9000 status. Lithuania is exporting products
and components to the top quality demanding automotive
and medical equipment industries among others. Lithuanian
exports in 2002 were EUR 5.9 billion and growing.
- Strong FDI Growth
Foreign investment in Lithuania has been increasing
fastest in Central and Eastern Europe and reached EUR
4.1 billion as of July 1, 2003. Attractive «green-field»
and privatisation projects in infrastructure, transport
and energy.
- A Rapid Growth of E-Business and Development
of Knowledge Economy
Lithuania has adopted the Law on Electronic Signature
at the same time as the USA. Government policy helps
to boost e-commerce and a digital "business-to-business"
environment. One of the strategic priorities of the
Lithuanian government is the development of knowledge
economy.
- Social And Political Stability
With a pro-business government, excellent external relations
and harmonious minority relations internally, Lithuania
is an oasis of political and ethnic stability in the
region. It has a stable currency, strong banking sector,
and offers unrestricted movement of capital and dividends.
Lithuania is also a great place to live and work, as the
attributes of a modern European lifestyle have enriched
its long history and charming natural environment.
Landscape and Climate
Lithuania has common borders with Latvia, Belarus,
Poland, Russia, and is larger than the other two Baltic
States, Latvia and Estonia. At 65,300 sq. km (25,206 sq.
mi.), Lithuania is even bigger than Belgium, Denmark,
the Netherlands or Switzerland. 70% of its lowland plains
and hilly uplands are arable land and 27.6% - forested.
Lithuania's 722 rivers, more than 2,800 lakes and 99 km
(61.5 mi.) of Baltic Sea coastline are mostly devoted
to recreation and preservation of nature.
The climate is midway between maritime and continental,
with an average daytime temperature of -5°C in January
and +23°C in July. The growing season varies between
169 and 202 days.
Population and Language
The population is 3.5 million people - 83.5% Lithuanian,
6.3% Russian, 6.7% Polish, and 3.5% other. Major cities
are: Vilnius (542,300 inhabitants); Kaunas (378,900);
Klaipėda (192,900); Šiauliai (133,800) and Panevėžys
(119,700). The official state language is Lithuanian,
which is closely related to Sanskrit and belongs to the
Baltic family of Indo-European languages. Main religion
- Roman Catholic.
Recent History
1990 March 11 - Lithuania re-establishes its independence
1991 September 17 - Lithuania is admitted into the United
Nations.
1993 August 31 - The last Russian troops leave
1994 January 4 - Lithuania becomes the first Baltic State
to apply for NATO membership
1995 June 12 - Lithuania signs a Europe [Associate] Agreement
with the EU
1998 February 1 - Lithuania becomes an Associate Member
of the EU
1999 December - Lithuania is invited to start negotiations
for the accession to the EU
2001 May 31 - Lithuania becomes 141st member
of the World Trade Organisation
2002 October 9 - Lithuania recommended for EU membership
by the European Commission
2002 November 21 - Lithuania is invited to start membership
negotiations with NATO
2003 April 16 - Lithuania signs the EU Accession Treaty
2003 May 11 - 91% of Lithuanians back EU membership in
a referendum
Currency
Lithuania's currency is the Litas (LTL), equal to
100 Lithuanian cents. Litas is presently pegged to the
Euro at a rate of 3.4528:1.
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