Investment Environment in Latvia

Investment Environment in Latvia POSITIVE FOREIGN DIRECT INVESTMENT (FDI) TRENDS FDI stock by country (TOP 5) 1. SWEDEN 24% FDI 2. NETHERLANDS 8% 3. CYPRUS 6% 4. ESTONIA 6% Cumulative FDI into Latvia (Billions of Euro) 5. NORWAY 5% Cumulative FDI structure (TOP 5) 14% 8.25 billion 9.37 billion (2011) 10.01 billion Wholesale and retail trade 27% 13% (2010) (2012) 12% Financial services 5% Real estate Construction - Manufacturing FDI PROJECTS: Investment and Development Agency of Latvia (LIAA) services Initial inquiries Completed projects OLIAA 348 381 17 15 132 158 2009 2010 2011 2012 2009 2010 2011 2012 LIAA projects by sectors (TOP 5) 14% 8% 17% Other Manufacturing 11% IT 18% Electronics Shared Service Centers, Business Process Outsourcing Metalworking, Machinery Tendencies of FDI I Metalworking and automo- tive sectors (e.g., UralVagonZavod, and IT development centres panies from Russia (12% of Bucher Schoerling) Shared Services Centres Increasing interest of com- (e.g., Atea, DNB Bank) total FDI in 2012) EQUAL TREATMENT OF FOREIGN INVESTORS By law, foreign inves- tors have the same FOREIGN INVESTOR Foreign companies registered in Latvia are entitled to buy land and property rights and duties as local investors 1 DÃY OWNER A foreign investor may request a tempo- rary residence permit Efficient start-up procedure (company registration in 1 day) A foreign investor may be the sole founder and owner of a company POTENTIAL BUSINESS LOCATIONS IN LATVIA Major cities in Latvia LIEPAJA Population 75 372 RIGA VALMIERA Population 24 722 VENTSPILS Population 38 068 Population (with suburbs) 1.2 million JEKABPILS Population 24 017 ESTONIA LITHUANIA BELARUS JURMALA Population 50 616 JELGAVA Population 58 280 REZEKNE Population 31 559 DAUGAVPILS Population 91 478 Liepaja, Ventspils, Riga and Rezekne have excellent logistics infrastructure and Special Economic Zones which provide a favourable tax regime INTERNATIONAL RECOGNITION LATVIA RANKED NO. 5 Average measured INTERNET CONNECTION SPEED (7.8Mbps) "State of the Internet" report Q3 2012 by Akamai LIAA awarded BEST by UNCTADPRACTICE for excellenceww in promoting export-oriented FDI LATVIA RANKED UNCTAD NO. 25 EASE OF DOING BUSINESS 2013 2013 The World Bank POLARIS process USSIA