HE, Dr. Violeta Motulaitė, Ambassador of the Republic of Lithuania in Romania encourages cooperation in the sectors of pharmacy, cosmetics, laser, engineering and IT, especially Govtech technoilogies.
Ambassador of the Republic of Lithuania in Romania Dr. Violeta Motulaitė
February 26, 2020
Diplomatic relations between the Republic of Lithuania and Romania were established in 1924, reestablished on September 13, 1991. Both Lithuania and Romania have Embassies in Bucharest and Vilnius.
Lithuania is situated on the Eastern coast of the Baltic Sea. Its area is 65,286 sq. km, it has 2, 8 million inhabitants, GDP (in PPP) per capita 24 800 EUR (2018), average monthly wage 1 296, 2 EUR (2019), currency –Euro. Lithuanian is a member of EU, NATO, WTO, Schengen, and OECD.
Since 2009, economic cooperation between Lithuania and Romania was growing. According to official statistics annual bilateral trade turnover in 2020 was 194, 62 mIlion EUR. Lithuanian direct investment in Romania was 16, 24 million EUR, Romanian direct investment in Lithuania consisted of 6, 14 million EUR (30 09 2020). There is a lot of room to expand business relations.
Lithuania is a good spot to start business. Lithuania was ranked No. 1 in the Ease of Doing Business Index, No. 1 by digital/technological skills availability Globally, No 1 globally in terms of access to public Wi-Fi, Vilnius is a capital No 6 in European Union in terms of the ease to starting business.
Top export goods in 2019 were: mineral products, furniture products, plastics and products thereof, wood and products thereof, Electronic machinery and equipment. Top export services were: transport services, travel services, business services, telecommunications and IT, construction services.
Traditional export industries are: food and beverage industry, furniture industry, engineering industry. Top groups of export products in food and beverage industry sector were: diary products, fish, meat, residues from food industry and animal feed, meat and fish products. In furniture industry sector: wooden furniture, parts of furniture, upholstered wooden seats, wooden bedroom furniture and wooden office furniture. In engineering industry: electronic machinery and equipment, plastic products, products of iron and steel, machinery and mechanical appliances, vehicles, trailers and semi-trailers.
Lithuanian export of most innovative industries consisted of: ICT services industry, Pharma-Biotech industry and Hi-Tech engineering industry. Top groups of the ICT services industry were: computer programming, consultancy and related activities, telecommunications services and information services. In Pharm-Biotech industry: antisera, immunological products, medicaments, articles impregnated/coated with pharma substances, salts, hydroxides, phosphoaminolipids, carboxyamides. In Hi-tech engineering industry top export groups were: High-tech measuring instruments, high-tech medical instruments, high-tech electrical equipment, high-tech optical instruments and high-tech communication equipment.
Why to do business in Lithuania?
It has fast connection infrastructure: rail links between East and West, North and South (Rail Baltica); 3 international airports; the port of Klaipėda is the northernmost non-freezing and the largest seaport in the Baltic States. Business friendly environment: 0-15% Corporate Profit Tax, 21% VAT; 0-15% dividends; 20% Personal Income Tax; 19,5% Social Security Tax paid by employee; 1,79% Social Security Tax paid by employer. There are 7 Free Economic Zones (FEZ) : 0% Corporate Profit Tax for the first 10 years (conditions apply), 50% discount on Corporate Profit Tax over the next 6 years (conditions apply), 0% Tax on Dividends (conditions apply), 0% Tax on Real Estate (conditions apply).
Lithuania is No 1 jurisdiction for electronic money institutions in the EU. The Bank of Lithuania licenses more than one-sixth of European electronic money institutions. Lithuania is ranked No 4 on the Global Fintech Index 2020. Key factors for Fintech growth are: quick company set-up, supportive regulator, world-class secure ICT infrastructure.
Lithuania has a constantly growing start-up ecosystem, various investments and funds opportunities for innovative businesses: venture capital funds, accelerators, angel investors support, grant programs.
On January 1, 2021 ”the Green Corridor” law came into force in Lithuania: both domestic and foreign investors that qualify as a large-scale project will gain the status of national significance, ensuring significant tax incentives, fast decision-making, simplified procedures and all-round cutting of red-tape. Conditions: the investors will have to establish at least 150 new full-time jobs and invest at least 20 million EUR of Capital Expenditures over 5 years.
Main areas of possible cooperation.
We would encourage cooperation of Lithuanian and Romanian business people in the sectors of pharmacy, cosmetics, laser, engineering and IT.
Lithuania could offer Govtech technologies. Today Lithuania is recognized as a hub for information and communications technologies (ICT) and further positioning itself as a center of excellence in cybersecurity, e-business and e-government solutions.
Lithuania is well known for its Digital Government services, the amount of them being electronic and the constant effort to improve their availability. This sector could be of interest to municipalities as well. Lithuania is a country where people conduct more than 90% of business with local authorities online. We have created unique e-government platform where people and businesses can access around 700 public services. Registration of a new business online in only 3 days. Tax declaration online in only 1 hour with few clicks. Instant notification to institutions and employer about a sick leave. Car registration online with only few clicks. In Lithuania you can register newborn child online in only 30 minutes. These are only some examples. We would be pleased for a possibility to share our digital experience with you.
And last but not least. Lithuania is an attractive country to visit.
Competitiveness of tourism sector is ensured by the safety, high hygiene standards, family friendliness, rich history and culture, fastest public available Wi-Fi in the world.
We can offer big variety of sites or events where everyone can find its favorite. It could be cultural tourism, culinary tourism, active tourism, or medical recreational tourism.
In Lithuania there are 4000 lakes, more than 700 rivers, woods cover a third of the country, 11 per cent of them are national parks.
Vilnius Old City, the Curonian Lagoon, and Kernavė (ancient capital of Lithuania) are included in the World Heritage Lists.
Vilnius Old City is the largest authentic old city in the Central and Eastern Europe (360 hectares) dating from the late Gothic period to Classicism. Vilnius is the most eastern Baroque city. Vilnius University was founded in 1579. In the 16th century, Vilnius University was the most eastern university in Europe.
The Curonian Lagoon is a natural wonder with sand dunes that are the highest in the northern Europe.
In Palanga, the Baltic Sea shore resort, Amber Museum is the biggest collection of inclusions in the world and the second biggest amber lump in the world (3,524 kg). There still exist tradition to collect amber at the beach.
In woods grow 382 species of edible mushrooms. Mushroom picking in the early autumn is very popular attraction in Lithuania. Lithuanians joke: it could be considered as the second national sport after the basketball.
Resort of Druskininkai, a paradise of pine forests and mineral springs, is famous for mineral water treatment, water Attraction Park and all year functioning indoor Alpine skiing rout.
There is an old proverb in Lithuania: it is better to see once then hear 10 times. We are looking forward to meet you in the Embassy or in Lithuania.