Foreign direct investment

During ten years are invested 8 billion euros

Lithuania is a country that is an example of the successful foreign direct investment attraction according to the annual review Global FDI Outlook Report 2011 by the European Bank for Reconstruction and Development prepared in cooperation with the FDI Intelligence of The Financial Times.

* In the first nine months of 2011 the flow of foreign direct investment came to 2,7 billion litai (782 million euros) and accounted to 3,5 per cent of the country’s GDP. Capital (mainly loans received from direct investor) and reinvestment accounted for the largest part of capital flow (by 1,1 billion litai each), while investment into share capital made 510,8 million litai (147,9 million EUR).
* On 30th September 2011 the accumulated FDI in Lithuania totalled 37,06 billion litai (10,73 billion euros). During the third quarter of the year FDI increased by 29 million euros (0,3 per cent) FDI per capita on the average was 11,557 litai (3,347 euros), up from 10,958 litai on 31st December 2010.
* Based on provisional data, in 2011 the FDI flow in Lithuania amounted to LTL 3 billion (EUR 869 million) or 2,8% of GDP against 2010, up by 54 per cent. In 2011 FDI inflow in Lithuania was 1,5 times higher than in 2010. Last year FDI grew mostly due to increase in reinvestment flow, according to Statistics Lithuania and the Bank of Lithuania.

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Investment in sectors
At the end of the 3rd quarter the largest – 31,6 per cent share of FDI went to the manufacturing industry; wholesales and retail trade, repairs of transport vehicles and motorcycles accounted for 13,8 per cent, financial and insurance activities – 12,4 per cent, information and communications – 9,5 per cent of all FDI. Refined oil products and chemical products accounted for 52 per cent of all FDI in manufacturing industry.

According to the Ministry of Economy, in 2011 a total of 31 foreign investment projects were attracted, which resulted in creation of 3 400 work places. In 2010 there were 28 FDI projects with 5,000 work places created. Among the largest projects were the Indian IT company’s Ideal Invent Technologies Pvt Ltd decision to establish a banking software development centre in Lithuania with total investment of EUR 0,98 million within 3 years. Airline company Ryanair plans to move part of its operations from France to Lithuania’s Kaunas airport. Investments are to total EUR 104 million.

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More than 48 000 work places
According to FDiMarkets.com, starting from 2003 there were 358 FDI projects carried out in Lithuania, with investments totalling  27,9 billion litai (EUR 8 billion) and number of work places coming to over 48,300. Lithuania welcomes foreign investors and businesses to take advantage of the special ready-for-business locations: free economic zones, industrial parks, integrated science, studies and business centres (valleys) as well as a number of private industrial development territories, located throughout the country.

Lithuania’s two free economic zones (Kaunas FEZ and Klaipėda FEZ) are located in the country’s economically important centres and provide favourable conditions for developing business activities by offering prepared industrial sites with physical and/or legal infrastructure, support services, and tax incentives. In 2011 there were 4 Industrial Parks fully established and operating in Lithuania (Šiauliai IP, Kėdainiai IP, Panevėžys IP, Alytus IP).

Photo: Stock.XCHNG