Lithuania – where you find new supply chain partners
The German-Baltic Chamber of Commerce (AHK), the German Association of the Automotive Industry (VDA), the Baltic Automotive Components Cluster (BACC) and the Embassy of the Republic of Lithuania to Germany organised an online event for potential investors, Lithuania – where you find new supply chain partners. Success stories and the latest achievements in engineering and technology. Presentations were made in the online event by Florian Schröder (Managing Director of the German-Baltic Chamber of Commerce), Dr Kurt-Christian Scheel (Managing Director of the German Association of the Automotive Industry), Giedrius Valuckas (President of LAFEZ, the Lithuanian Association of Free Economic Zones) and others.
Speakers at the event presented Lithuania‘s advantages to those seeking opportunities for cooperation and investment as well as new supply chain partners.
According to LAFEZ President Valuckas, Lithuania is attractive for its significant logistic advantages in serving Northern Europe with its population of 110 million, Western Europe with its population of 340 million, and the CIS with its population of 250 million. Lithuania has 3 international airports, the ice-free Klaipėda seaport and a well-developed railway infrastructure, all of which are especially important to potential investors.
Valuckas presented encouraging statistical data. Lithuania is one of the countries least impacted by the pandemic, remaining focused on sustainable economic growth. Comparing Q3 2020 with Q3 2019, the change in Lithuania‘s GDP was only -1.7%. During the same period, Spain, for example, suffered the largest decrease in GDP, -8.7% (see Figure 1).
Considering the situation of industrial companies operating in Lithuania, we observe that the country‘s industrial sector remained quite resilient in the face of the pandemic and from January to September 2020 even managed to grow by 0.62%.
Lithuania offers investors the employees they need, with the right skills, in various regions, including in the Free Economic Zones. The country offers a multicultural environment, where 85% of young specialists speak English, and 52% of the population speaks two foreign languages. A high percentage of the population, 56%, have attained higher education, and 69% of young specialists (up to age 35) would choose to work in international companies. Compared with other EU member-states, labour expenses are relatively low; for example, in the industrial sector, about 1,400-1,450 euro (gross).
LAFEZ President Valuckas also emphasised to representatives of German companies the most valuable legal and tax benefits of Lithuania’s Free Economic Zones and invited the representatives to join a productive discussion.
From 2010 to 2020, Germany has been one of the leading European Union member-states to invest in Lithuania. In addition to its attractive geographical location, Lithuania is also one of the EU’s industrial hubs. Industry generates 20% of Lithuania’s GDP, and nearly 80% of production is exported. Despite the uncertain world business climate, German and Lithuanian companies continue to actively seek out opportunities to cooperate, invest and create more effective supply chains. In the near future, new projects of mutual benefit to German and Lithuanian companies are expected.Back to news