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

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LIAA - Investment and Development Agency of Latvia

DISCOVER LATVIA!

Your partner for cooperation

November 2013

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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

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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 Helsinki 583,350 Vilnius 554,400 Tallinn 409,342

#2

Largest North European city

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LIAA - Investment and Development Agency of Latvia

15% 24% 24.09% 11% 21%

CIT Personal Income tax Employee social tax Employers social tax VAT

Low tax system

2 million

EUR 21.1 billion

GDP

Population of

FACTS OF LATVIA

Germany

5%

Russia

5%

Sweden

24%

Netherlands

8%

Finland

4%

Estonia

5%

Norway

5%

Cumulative FDI – bln EUR (2012)

5.7 7.5 8.1 8.1 8.2 9.4 10.0

FDI Stock by Country 2012

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LIAA - Investment and Development Agency of Latvia

17 Lithuania 2 18 Thailand 1 19 Canada 20 Mauritius 3 21 Germany 22 Estonia 1 23 United Arab Emirates 3 24 Latvia

4

25 Macedonia, FYR 6 26 Saudi Arabi 27 Japan

EASE OF DOING BUSINESS 2014 – LATVIA RANKED NO. 24

The International Bank for Reconstruction and Development / The World Bank

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LIAA - Investment and Development Agency of Latvia

THE FASTER GROWING ECONOMY IN THE EU

11,2% 9,6%

3,3%
17,7%
0,3%

5,5% 5,6% 3,7% 4,0% 2006 2007 2008 2009 2010 2011 2012 2013 2014

Forecast

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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*

0.3%
4.1%
9.7%
8.1%
3.4%
2.1%
1.4%
0.6%

Maastricht criteria

€

*target number

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LIAA - Investment and Development Agency of Latvia

Transportation and storage 17% Real estate 13% Professional, scientific and administrative services 11% Public administration and defence 10% ITC 6% Education 6% Finance 5% Health care-4% Entertainment and recreation 2% Accommodation and food service 2% Wholesale and retail 23%

GROSS DOMESTIC PRODUCT

By kind of services, 2012 (%)

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LIAA - Investment and Development Agency of Latvia

Chemical industry and related industries 8.1% Production of other non-metallic mineral products 5.7% Other industries 4.2% Production of electrical and optical equipment 5.5% Light industry 4.2% Paper industry and publishing 3,9% Production of vehicles 3,8% Production of machinery and equipment 2.3% Food industry 22.9% Wood processing 23.9% Production of metals and metal articles 15.5%

*provisional data

STRUCTURE OF MANUFACTURING

By turnover, 2012(%)*

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LIAA - Investment and Development Agency of Latvia

THE ROLE OF EXPORT IN THE ECONOMY INCREASES

% of GDP

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LIAA - Investment and Development Agency of Latvia

e – estimation of Ministry of Economics

Wood and articles

f wood 15.2%

Base metals and articles of base metals 14.0% Machinery and mechanical appliances; electrical equipment 13.7% Mineral products 9.0% Prepared foodstuffs 8.6% Vegetable products 7.1% Products of the chemical and allied industries 6.3% Transport vehicles 5.3% Live animals and animal products 4.4% Textiles and textile articles 4.0% Plastics, rubber and articles thereof 3.0% Other 9.5%

EXPORTS OF GOODS IN 2012 (percentage)

* - provisional data

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LIAA - Investment and Development Agency of Latvia

Machinery and mechanical appliances; electrical equipment 18.1% Mineral products 18.0% Base metals and articles of base metals 10.5% Products of the chemical and allied industries 8.8% Transport vehicles 8.4% Prepared foodstuffs 6.9% Plastics, rubber and articles thereof 5.2% Textiles and textile articles 4.2% Vegetable products 4.1% Live animals and animal products 3.4% Other 12.4%

IMPORTS OF GOODS IN 2012 (percentage)

* - provisional data

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LIAA - Investment and Development Agency of Latvia

DIVERSIFIED EXPORT MARKETS

65 40 32 30 13 30 32 29 9 15 15 15 14 15 21 26 10 20 30 40 50 60 70 80 90 100 2000 2007 2011 2012 Other countries CIS Lithuania, Estonia EU-15

percentage

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LIAA - Investment and Development Agency of Latvia

TRADE IN GOODS BETWEEN LATVIA AND IRELAND

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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)

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LIAA - Investment and Development Agency of Latvia

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

INVESTMENT COORDINATION: HIGH COUNCIL

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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

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LIAA - Investment and Development Agency of Latvia

1. WOODWORKING
2. METALWORKING, MACHINERY AND ELECTRONICS
3. TRANSPORT AND LOGISTICS
4. INFORMATION TECHNOLOGY
5. LIFE SCIENCES
6. FOOD PROCESSING

MAIN SECTORS

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LIAA - Investment and Development Agency of Latvia

WOODWORKING

Accesible natural resource Traditions Processing Logistics

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LIAA - Investment and Development Agency of Latvia

METALWORKING, MACHINERY & ELECTRONICS

R&D
Competitive and skilful labour force
Wide industry span

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LIAA - Investment and Development Agency of Latvia

TRANSPORTATION & LOGISTICS

EU border-country
Gateway to East & West
Efficient logistics

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LIAA - Investment and Development Agency of Latvia

INFORMATION TECHNOLOGY

Competetive labour
Developed infrastructure
International recognition

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LIAA - Investment and Development Agency of Latvia

HIGHLY DEVELOPED COMMUNICATIONS INFRASTRUCTURE

* Source: “State of the Internet” report Q2 2013 by Akamai www.akamai.com Average Measured Connection Speed by Country

Country/Region Q1 ’13

Avg. Mbps

QoQ Change YoY Change

Global

3.3 5.2% 9.2%

1. South Korea

13.3

6.3%
6.4%
2. Japan

12.0 6.5% 11%

3. Switzerland

11.0 9.1% 31%

4. Hong Kong

10.8 0.8% 21%

5. Latvia

10.6 12% 22%

6. Netherlands

10.1 6.2% 27%

7. Czech Republic

9.8 8.7% 36%

8. United State

8.7 3.4% 22%

9. Sweden

8.4 0.7% 44%

10. United Kingdom

8.4 11% 48% Country/Region Q1 ’13

Avg. Mbps

QoQ Change YoY Change

Global

14% 13% 38%

1. South Korea

45%

8.6%
6.5%
2. Japan

43% 5.8% 18%

3. Switzerland

37% 21% 71%

4. Latvia

33% 13% 29%

5. Réunion

33% 35%

6. Hong Kong

32%

1.9%

23%

7. Netherlands

31% 8.5% 66%

8. Czech Republic

27% 24% 88%

9. Belgium

25% 23% 80%

10. United States

24% 2.3% 43% Country/Region Q1 ’13

Peak. Mbps

QoQ Change YoY Change

Global

18.9 0.1% 17%

1. Hong Kong

65.1

0.9%

32%

2. South Korea

53.3 19% 14%

3. Japan

48.8 3.1% 21%

4. Romania

47.5

0.6%

23%

5. Singapore

45.6 4.1% 61%

6. Latvia

44.6 5.4% 33%

7. Switzerland

41.4 3.9% 38%

8. Israel

40.1 6.4% 53%

9. Belgium

39.9 8.1% 35%

10. Taiwan

39.5 22% 61%

Average Peak Connection Speed by Country High Broadband (>10 Mbps) Connectivity

Latvia has strong positions in internet speed

rankings. With 10.6 Mbps average connection

speed, 44.6 Mbps peak connection speed and with 33% from all connections with speed higher than 10 Mbps Latvia is in top 5 in the world and 2nd best in Europe.

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LIAA - Investment and Development Agency of Latvia

LIFE SCIENCES

Regional centre of Baltics
High R&D potential
Skilled labour

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LIAA - Investment and Development Agency of Latvia

FOOD PROCESSING

Traditions
Quality
Environmentally clean country
Recognition

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LIAA - Investment and Development Agency of Latvia

LIAA FUNCTIONS - ACTIVITIES

Investment Agency Trade Promotion Agency Innovation Agency Structural Funds Administrator

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LIAA - Investment and Development Agency of Latvia

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LIAA - Investment and Development Agency of Latvia

Mode City 2012 7-9, 2012, France

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LIAA - Investment and Development Agency of Latvia

CeBIT 2013 March 5-9, 2013, Hannover, Germany

Nacionālie stendi

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LIAA - Investment and Development Agency of Latvia

Tirdzniecības misijas

Koksnes kurināmā uzņēmumu kontaktbirža Nīderlandē un Beļģijā 2013.gada 5.-6.jūnijs Latvijas dienas Maskavā «Оцени Латвию» 2013.gada aprīlis, Maskava «Оцени Латвию» 4-30 April, 2013, Moscow, Russia

Trade mission / event Latvia’s days in Moscow „Taste Latvia”

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LIAA - Investment and Development Agency of Latvia

Mission to Silicon Valley January 29-February 13, 2013, San Francisco, USA

Trade missions

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LIAA - Investment and Development Agency of Latvia

Largest business forum “LIAA Biznesa forums” December 2012

Business forums

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LIAA - Investment and Development Agency of Latvia

Annual prize for best exporters December 19, 2012

Competitions

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LIAA - Investment and Development Agency of Latvia

LIAA INTERNATIONAL PRESENCE

Representative offices in 14 countries + Latvia

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LIAA - Investment and Development Agency of Latvia

RIGA – PERFECT PLACE FOR BUSINESS AND LEISURE !

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LIAA - Investment and Development Agency of Latvia

RIGA – CAPITAL OF CULTURE

Historic Centre of Riga is included in the UNESCO World Heritage List

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LIAA - Investment and Development Agency of Latvia

Welcome to Latvia!

Investment and Development Agency of Latvia (LIAA) 2 Perses iela, Riga, Latvia LV-1442 T: +371 67039400 F: +371 67039401 E-mail: liaa@liaa.gov.lv http://www.liaa.gov.lv http://www.polarisprocess.com