We speak
fluent business
JULY | 2018
2
Population
22.8 million Labour Pool
21.5 million Unemployment
27.1%
Facts & figures
Source 1: Eurostat, 2017
Source 2: Statistics Lithuania, 2018
Source 3: European Economic Forecast, Spring 2018
in EU for GDP per capita growth since 2000
11st
GDP growth:
− in 2016
2: 2.3%
− in 2017
2: 3.9%
− In 2018
3: 3.1%
3
Globally ranked player
Source 1: World Bank, 2017
Source 2: World Economic Forum, 2017 Source 3: Fraser Institute, 2017
Source 4: Yale University, 2016
Source 5: Transparency International, 2018 Source 6: PWC, 2017
Ease of Doing Business
1out of 190 countries evaluated
16
Global Competitiveness Index
2out of 137 countries evaluated
41
Environmental
Performance Index
4out of 180 countries evaluated
23
Corruption
Perception Index
5out of 180 countries evaluated
38
Paying Taxes Ranking
6out of 190 countries evaluated
18
Economic Freedom of the World
3out of 159 countries evaluated
13
4
Performance in FDI
Source: Invest Lithuania, 2018
37%
34%
13%
4%
4%
3%
Shared Services Centres
Manufacturing IT Design, Development &
Testing
Business Services
Logistics
Sales, Marketing & Support
Top business activities according to jobs planned | 2010-2017
Top investing countries by share of total projects | 2010-2017
15% United States
8% Germany
8% Denmark
10% Sweden
8% Norway
9% UK 6% Finland
5
Young & talented labour
1
World-class infrastructure
2
Great quality to cost ratio
3
Business friendly environment
4
Perfect living pace
5
What gives Lithuania the edge?
6
Young & talented labour
Young highly qualified talent
Source 1: Eurostat, 2017 (age group 25-34)
Source 2: Invest Lithuania’s estimation based on Population Census (2011) Source 3: Europeans and their languages, 2012
Source 4: Ministry of Education and Science, 2018
of population with higher education
156%
84% proficiency in English
among young professionals
250% speak at least two foreign languages
327%
19%
16%
9%
9%
5%
5%
4%
6%
Business, administration and law Engineering, manufacturing and
construction
Health and welfare Social sciences, journalism and
information
Arts and humanities Information and communication
technologies
Education Natural sciences, mathematics and
statistics
Other programmes
Students by study fields in higher
education institutions | 2017-2018
4World-class infrastructure
7
Digital infrastructure: fast, reliable and affordable
Source 1: IMD World Competitiveness Yearbook, 2017 Source 2: OpenSignal, 2017
Source 3: European Commission Digital Agenda Scoreboard, 2015
EU and global leader in connectivity and communication technology
globally in fulfilling business needs for ICT
11st
2nd in Europe for mobile 4G coverage
2for fixed
broadband price
31st in EU
2,73%
2,19%
1,85%
1,57%
1,25% 1,12% 1,06%
0,87%
0,71%
% of disposable income | Advertised download speed above 12 and up to 30 Mbps | 2015
World-class infrastructure
8
Logistics: fast connection infrastructure
Source 1: World Economic Forum, Global Competitiveness Report, 2017-2018 Source 2: www.portofklaipeda.lt
Source 3: Girteka Logistics, 2014. Estimates based on two-driver shared shift model
Road & Rail
Air
Sea
− 1
stin CEE for quality of roads
1− Rail cargo services direct to Russia, Belarus, Latvia, Poland, Germany, Ukraine and Asia (incl. China)
− 3 International Airports, access to major European cities within 2-3 hours flight
− Klaipėda State ice-free Seaport
− 14.5 m deep port, handling up to 65 million tons of cargo annually, the largest port in the Baltic States
23
9
Great quality to cost ratio
Cost & quality combined
Source 1: Eurostat, 2017 (wages in industry, construction and services, except public administration, defense, compulsory social security) Source 2: European Office Market. Edition 2017, BNP Paribas Real Estate
41,8
26,7
21,3
8,7 7,6
5,7 4,1
Average gross hourly wages (Eur), 2017
1Ranked alongside Ireland, Germany, Switzerland for its business environment, Lithuania can also
guarantee a fantastic cost to quality ratio.
One of the lowest office rental
prices in the region
210
Business friendly environment
Business friendly environment
6 Free Economic Zones (FEZ):
− 0% corporate tax for the first 10 years*
− 50% discount on corporate tax over the next 6 years*
− 0% tax on dividends*
− 0% tax on real estate*
Industrial Parks (IP)
6-12 months delivery of build-to-suit manufacturing facilities
* Conditions apply
corporate profit tax
0-15%
21% VAT 0-15%
15%
9%
31.18%
dividends
personal income tax
social security tax paid by employee
social security tax paid by employer
11
Perfect living pace
Perfect living pace
Source 1: Expert Market, 2016
Source 2: European Commission, 2016 Source 3: Mercer's 2017 Cost of Living Ranking Source 4: Ooma tests, 2017
− According to the Mercer Cost of Living Index 2016, Vilnius is one of the five least expensive EU capitals to live in for expatriates
3Cost of living
Lifestyle
− Vilnius – among TOP 10 cities globally with the best work life balance
1− 98% of Vilnius inhabitants are satisfied with living here (highest percentage among EU capitals)
2Keeping you connected with the fastest
public Wi-Fi
globally 4
12
Sectors
Global Business Services Manufacturing
Technology
LITHUANIA – YOUR TOP OPTION FOR:
13
Sectors
#1 Global Business Services
Source 1: Invest Lithuania, 2018
Source 2: Lithuania’s business services report, 2017
Source 3: Central and Eastern Europe Shared Services and Outsourcing Awards, 2018 Source 4: cvmarket.lt, 2017
professionals employed in the sector
1~15,000
34 the largest number of languages used in a single center
2yearly growth of SSC sector
215%
Top 3 most desired
employers are SSCs
4The best
destination
for shared
services and
outsourcing
in CEE 3
14
Sectors
Arminta Saladžienė, Head of Nasdaq Baltic
For companies like us that develop advanced solutions, Lithuania provides the perfect mix of exceptional infrastructure and exceptional talent.
Nasdaq Technology and Business Support Competence Center
FTE 280
Languages English, French, German, Spanish, Russian Established 2015, Vilnius
Functions Development and QA Verification of Trading, Clearing, CSD and Governance IT Platforms
System Operations, IT Operations Analytics Solutions Accounts Payable and Receivable, Payroll, Financial Control, Business Control, etc.
15
Sectors
Functions: F&A, IT, HR Languages: English
Headcount: 680 Established: 2014, Kaunas
Functions: F&A, HR, Customer operations, IT, Analytics Languages: 10 languages
Headcount: 280 Established: 2015, Vilnius Functions: F&A, HR, IT, Legal
Languages: English, Danish, Norwegian, Swedish, Finnish Headcount: 2760 Established: 2012, Vilnius
Functions: IT, Customer operations
Languages: English, Swedish, Danish, Norwegian
Headcount: 650 Established: 2007, Vilnius
#1 Global Business Services Presence in Lithuania
Technology & HR Centre Global Operations Center
Shared Service Center BPO
Excellence Center Shared Service Center
Functions: IT, HR
Languages: English, French, German, Italian, Spanish
Headcount: 1110 Established: 2009, Vilnius
Functions: F&A, HR, IT, Customer operations, Procurement, other Languages: 34 languages
Headcount: 1950 Established: 2010, Vilnius
16
Sectors
#2 Manufacturing
Source 1: Statistics Lithuania, 2017
of Lithuania’s GDP is generated by its manufacturing sector
119%
65% of all manufacturing production is exported
1DE, PL, US, LV, SE
main export
destinations
117
Sectors
Raimundas Petrauskas, Managing Director at Schmitz Cargobull Baltic
Our efficiency rates in Lithuania are outstanding.
The local team of innovative engineers and the flexible production line we’ve put in place have
allowed us to exceed the demands of the constantly shifting market needs.
Schmitz Cargobull Baltic
FTE 540
Established 1999, Panevėžys
Products Thermo-insulating panels
Isothermal transportation equipment: insulated trucks, trailers and semi-trailers
18
Sectors
#2 International Manufacturing Presence in Lithuania
Manufacturing plant / R&D Manufacturing plant
Manufacturing plant Manufacturing plant
Manufacturing plant Manufacturing plant
Products: Iso-thermal trucks, trailers and semi-trailers Headcount: 540
Established: 1999, Panevėžys
Products: Respiratory care products Headcount: 2410
Established: 1996, Pabradė
Products: Electronic circuit boards Headcount: 770
Established: 1993, Kaunas
Products: Electrical distribution systems Headcount: 1700
Established: 2014, Panevėžys
Products: Tobacco Headcount: 540
Established: 1993, Klaipėda Products: Reagents
Headcount: 810
Established: 2010, Vilnius
19
Sectors
#3 Technology
Source 1: MOSTA, 2017
Source 2: Ministry of Education and Science, 2016
Lithuania’s consistent focus on tech education helps to further secure its reputation as a highly attractive location for global tech business players, such as UBER, WIX, UNITY and many others.
31,500 IT specialists in Lithuania
12x increase in IT study funding in 2017
120% increase in IT student
pipeline over 2013-2016
220
Sectors
Boaz Inbal, Manager of External Dev. Centres at Wix.com
As advocates of the ‘can-do’ attitude, when we first visited Lithuania we were thoroughly impressed by the creativity, energy and entrepreneurial spirit of the people we met. That’s the Wix way, and so
Lithuania seemed like a natural fit for our company.
Wix.com
FTE 100
Established 2013, Vilnius
Products Wix.com applications and strategic Wix projects, IT and R&D projects
21
Sectors
#3 Top Global Tech and Start-up Businesses in Lithuania
Technical office Technical office
Development unit
Head office Development office
Activity: Software development, QA, Product Design for Wix.Com web development platform
Headcount: 100
Established: 2013, Vilnius
Activity: Adtech solution development, product management Headcount: 480
Established: 2006 in Vilnius and 2013 in Kaunas
Activity: Critical infrastructure support, DevOps, software development
Headcount: 35
Established: 2015, Vilnius
Development unit
Activity: R&D and QA for Unity engine Headcount: 85
Established: 2007, Vilnius
Activity: Development of public transport app designed to plan journeys using real-time data
Headcount: 35
Established: 2007, Vilnius
Activity: Software development, advanced analytics, product strategy
Headcount: 140
Established: 2012, Vilnius
22
Invest Lithuania is the official agency for Foreign Direct Investment and Business Development.
We’ll partner with you to get your business set up and off to the best start possible:
All of our services are free of charge
Interested? Here’s how Invest Lithuania can help
Decision-making
We’ll help you make the most informed decisions for your new operations:
− Tailored in-depth market and industry insights,
− Advice on business costs,
− Information concerning the local labour and legal framework.
Business Establishment
We’ll connect you with everyone you need to know to guarantee a soft landing for your set up:
− Intros and meetings with key market players and relevant governmental institutions,
− Sourcing of governmental financial support.
Business Development
Once you are up and running we’ll be there with aftercare and support:
− Assistance with one-off problems,
− Lobbying for greater governmental support.
