DISCOVER LATVIA! Your partner for cooperation November 2013 LIAA - - PowerPoint PPT Presentation

DISCOVER LATVIA! Your partner for cooperation November 2013 LIAA - Investment and Development Agency of Latvia

COUNTRY PROFILE Territory 64.6 ths.sq.km Population 2.07 million Population growth -0.3% Language Latvian Highest point 311.6 m Lowest point Sea level Internet users 57 per 100 Retirement age 62 LIAA - Investment and Development Agency of Latvia

RIGA – METROPOLIS OF THE BALTICS Riga is the largest city in the Baltic States: 659,418 / 1,03 million (with suburbs) Stockholm 864,324 Riga 659,418 Oslo 599,230 Copenhagen 593,013 #2 Helsinki 583,350 Vilnius 554,400 Tallinn 409,342 Largest North European city LIAA - Investment and Development Agency of Latvia

FACTS OF LATVIA Sweden 24% Estonia Netherlands Norway 5% 24.09% 8% 5% 10.0 24% 9.4 21% 8.1 8.1 8.2 7.5 15% 5.7 11% Germany Russia Finland 5% 5% 4% Employee Employers Personal VAT CIT social tax social tax Income tax Low tax system FDI Stock by Country 2012 Cumulative FDI – bln EUR (2012) GDP Population of 2 million EUR 21.1 billion LIAA - Investment and Development Agency of Latvia

EASE OF DOING BUSINESS 2014 – LATVIA RANKED NO. 24 The International Bank for Reconstruction and Development / The World Bank 17 Lithuania 2 18 Thailand 1 19 Canada 0 20 Mauritius 3 21 Germany 0 22 Estonia 1 23 United Arab Emirates 3 24 Latvia 4 25 Macedonia, FYR 6 26 Saudi Arabi 0 27 Japan 0 LIAA - Investment and Development Agency of Latvia

THE FASTER GROWING ECONOMY IN THE EU 11,2% 9,6% 5,6% 5,5% 4,0% 3,7% 2006 2007 2008 2009 2010 2011 2012 2013 2014 -0,3% Forecast -3,3% -17,7% LIAA - Investment and Development Agency of Latvia

FISCAL STRATEGY TO PREVENT EXCESSIVE BUDGET DEFICIT General government deficit (% of GDP) 2007 2008 2009 2010 2011 2012* 2013* 2014* -0.6% -0.3% -1.4% -2.1% Maastricht criteria -3.4% -4.1% € -8.1% -9.7% *target number LIAA - Investment and Development Agency of Latvia

GROSS DOMESTIC PRODUCT By kind of services, 2012 (%) Wholesale and Transportation and retail storage 23% 17% Real estate Accommodation 13% and food service 2% Entertainment and recreation 2% Health care-4% Finance Professional, 5% scientific and administrative Education services 6% Public 11% ITC administration and 6% defence 10% LIAA - Investment and Development Agency of Latvia

STRUCTURE OF MANUFACTURING By turnover, 2012(%)* Chemical industry and Production of metals related industries and metal articles Production of other 8.1% 15.5% non-metallic mineral products 5.7% Other industries 4.2% Production of electrical and optical equipment 5.5% Light industry Wood processing 4.2% 23.9% Paper industry and publishing 3,9% Production of vehicles 3,8% Production of machinery and equipment 2.3% Food industry *provisional data 22.9% LIAA - Investment and Development Agency of Latvia

THE ROLE OF EXPORT IN THE ECONOMY INCREASES % of GDP LIAA - Investment and Development Agency of Latvia

EXPORTS OF GOODS IN 2012 (percentage) Other 9.5% Plastics, rubber and articles thereof Wood and articles 3.0% of wood 15.2% Textiles and textile articles 4.0% Live animals and animal products Base metals and 4.4% articles of base Transport vehicles metals 14.0% 5.3% Products of the chemical and allied industries 6.3% Machinery and mechanical Vegetable products appliances; 7.1% electrical Prepared foodstuffs equipment 13.7% Mineral products 8.6% 9.0% e – estimation of Ministry of Economics * - provisional data LIAA - Investment and Development Agency of Latvia

IMPORTS OF GOODS IN 2012 (percentage) Machinery and Other 12.4% mechanical Live animals and appliances; electrical animal products equipment 3.4% 18.1% Vegetable products 4.1% Textiles and textile articles 4.2% Plastics, rubber and Mineral products articles thereof 5.2% 18.0% Prepared foodstuffs 6.9% Base metals and Transport vehicles articles of base Products of the 8.4% metals chemical and allied 10.5% industries 8.8% * - provisional data LIAA - Investment and Development Agency of Latvia

DIVERSIFIED EXPORT MARKETS percentage 100 14 15 90 21 Other countries 26 9 80 15 15 13 70 15 CIS 60 30 50 32 29 40 Lithuania, Estonia 65 30 20 40 32 30 EU-15 10 0 2000 2007 2011 2012 LIAA - Investment and Development Agency of Latvia

TRADE IN GOODS BETWEEN LATVIA AND IRELAND LIAA - Investment and Development Agency of Latvia

EQUAL TREATMENT OF FOREIGN INVESTORS • By law, foreign investors have the same rights and duties as local investors • The foreign investor may be sole founder and owner of a company • Foreign companies registered in Latvia are entitled to buy land and property • Efficient start-up procedure (company registration in 1 day) • The foreign investor may request a temporary residence permit • Active dialogue between the Foreign Investors’ Council in Latvia (FICIL) LIAA - Investment and Development Agency of Latvia

INVESTMENT COORDINATION: HIGH COUNCIL CONSISTS OF - Prime Minister (Chairman) - Minister for Economics - Minister for Finance - Minister for Transportation - Minister for Foreign Affairs - Minister for Agriculture - Minister for Education and Science - Minister for Environment Protection and Regional Development MAIN DIRECTIONS - Governmental level support for investment projects - Establishment of support and incentive instruments - Elimination and prevention of administrative and regulatory barriers LIAA - Investment and Development Agency of Latvia

BUSINESS INCENTIVES IN LATVIA • Tax Incentives • Labour-Related Incentives • Financial Incentives • Support for Innovations and R&D • EU Structural Funds • Temporary Residence Permits LIAA - Investment and Development Agency of Latvia

MAIN SECTORS 1. WOODWORKING 2. METALWORKING, MACHINERY AND ELECTRONICS 3. TRANSPORT AND LOGISTICS 4. INFORMATION TECHNOLOGY 5. LIFE SCIENCES 6. FOOD PROCESSING LIAA - Investment and Development Agency of Latvia

WOODWORKING Logistics Accesible natural resource Processing Traditions LIAA - Investment and Development Agency of Latvia

METALWORKING, MACHINERY & ELECTRONICS • • • Competitive and skilful labour force R&D Wide industry span LIAA - Investment and Development Agency of Latvia

TRANSPORTATION & LOGISTICS • • • Gateway to East & West Efficient logistics EU border-country LIAA - Investment and Development Agency of Latvia

INFORMATION TECHNOLOGY • • • Developed infrastructure Competetive labour International recognition LIAA - Investment and Development Agency of Latvia

HIGHLY DEVELOPED COMMUNICATIONS INFRASTRUCTURE Q1 ’13 QoQ YoY Country/Region Latvia has strong positions in internet speed Avg. Mbps Change Change rankings. With 10.6 Mbps average connection - Global 3.3 5.2% 9.2% 1. South Korea 13.3 -6.3% -6.4% speed, 44.6 Mbps peak connection speed and 2. Japan 12.0 6.5% 11% with 33% from all connections with speed 3. Switzerland 11.0 9.1% 31% higher than 10 Mbps Latvia is in top 5 in the 4. Hong Kong 10.8 0.8% 21% 5. Latvia 10.6 12% 22% world and 2nd best in Europe. 6. Netherlands 10.1 6.2% 27% * Source : “State of the Internet” report Q2 2013 by Akamai 7. Czech Republic 9.8 8.7% 36% www.akamai.com 8. United State 8.7 3.4% 22% 9. Sweden 8.4 0.7% 44% 10. United Kingdom 8.4 11% 48% Average Measured Connection Speed by Country Q1 ’13 Q1 ’13 QoQ YoY QoQ YoY Country/Region Country/Region Peak. Mbps Change Change Avg. Mbps Change Change - Global 18.9 0.1% 17% - Global 14% 13% 38% 1. Hong Kong 65.1 -0.9% 32% 1. South Korea 45% -8.6% -6.5% 2. South Korea 53.3 19% 14% 2. Japan 43% 5.8% 18% 3. Japan 48.8 3.1% 21% 3. Switzerland 37% 21% 71% 4. Romania 47.5 -0.6% 23% 4. Latvia 33% 13% 29% 5. Réunion 5. Singapore 45.6 4.1% 61% 33% 35% - 6. Latvia 44.6 5.4% 33% 6. Hong Kong 32% -1.9% 23% 7. Netherlands 31% 8.5% 66% 7. Switzerland 41.4 3.9% 38% 8. Czech Republic 27% 24% 88% 8. Israel 40.1 6.4% 53% 9. Belgium 25% 23% 80% 9. Belgium 39.9 8.1% 35% 10. United States 24% 2.3% 43% 10. Taiwan 39.5 22% 61% Average Peak Connection Speed by Country High Broadband (>10 Mbps) Connectivity LIAA - Investment and Development Agency of Latvia

LIFE SCIENCES • Regional centre of Baltics • High R&D potential • Skilled labour LIAA - Investment and Development Agency of Latvia

FOOD PROCESSING • • • • Environmentally clean country Quality Recognition Traditions LIAA - Investment and Development Agency of Latvia

LIAA FUNCTIONS - ACTIVITIES Investment Agency Trade Structural Promotion Funds Agency Administrator Innovation Agency LIAA - Investment and Development Agency of Latvia

LIAA - Investment and Development Agency of Latvia

Mode City 2012 7-9, 2012, France LIAA - Investment and Development Agency of Latvia

Nacionālie stendi CeBIT 2013 March 5-9, 2013, Hannover, Germany LIAA - Investment and Development Agency of Latvia