Advantage Lithuania

Small but Sound 3

Northern Europe Service Hub 2015 9 Physical Infrastructure Energy Capacities ICT Framework Talent Business Operation Costs Business-supporting Environment Promising Business Sectors Culture of Trust Macroeconomic Figures

Life in Lithuania 43

Invest Lithuania – Focusing on Foreign Direct Investment 47

Enterprise Lithuania – Focusing on Quality Production 49

Business Communication Tips, Dosand Donts 51

Useful Links 54

Contents

3

”Even the hardest of winters fears the spring.”– Lithuanian proverb

Small but sound

City Score

Vilnius 9.37

Stockholm 9.35

Helsinki 8.84

Dublin 8.62

Copenhagen 8.43

Tallinn 8.30

Riga 8.28

Berlin 7.86

Zurich 7.70

Vienna 7.59

Small soundbut

”In the years ahead Lithuania’s

recovery should outpace that of most members of the EU because Lithuania isn’t wedded to slow-growth policies, as are most Western European states.”

– Forbes, 26th May 2010

Lithuania...… is a Northeastern European country which combines what is regarded as Scandinavian - progressive, orderly, clean, natural and attractive, as well as what is regarded as Eastern European – new, rapidly developing, on the rise, and as yet undiscovered. Sometimes called a Northern, and sometimes an Eastern European country, Lithuania is an authentic combination of Northern and Eastern features.

…is one of EU’s economic recovery leaders in 2010. Hit by the global economic recession, Lithuania’s economy started again growing already in the 3rd quarter of 2009, demonstrating the steepest quarterly increase across the European Union. The World Bank says that Lithuania leads the recovery in 2010 in one line with Poland, Slovakia, Romania and the Czech Republic among the EU-10 Member States. Also, 3 rating agencies upgraded the Lithuanian Government’s borrow-ing rating from negative to stable in the beginning of 2010. The International Monetary Fund and the World Bank project that the Lithuanian economy will grow 1.6% in 2010 and 3.2% in 2011.

…is the European Union’s prime transport centre. The European Union has recognized Lithuania as the prime transport centre in the region linking the EU with the East.

…is a country with the capital city breathing Europe’s cleanest air and recognized greenest among the new EU-members. In the European Green City Index released by Siemens AG and the Economist Intelligence Unit in 2010, Vilnius tops the category of the European major cities breathing the cleanest air. In the overall ranking category Vilnius, standing No. 13, is the greenest capital among the new EU members.

Air quality ranking in European Green City Index 2010:

Small but sound 5

”A home, so small it fits under

a blade of grass, is still a home.”

– Lithuanian proverb

SizeLithuania occupies a territory of 65,300 km2.

The country shares common borders with Latvia in the north (588 km), Belarus in the south-east (653 km), Poland in the south-west (104 km), and the Ka-liningrad Region of the Russian Federation, also in the south-west (249 km). The length of Baltic Sea coastline with the Eastern Baltic northernmost ice-free seaport is 99 km.

CitiesThe capital is Vilnius (population ~ 549,000). Kaunas (~349,000), Klaipėda (~183,000), Šiauliai (~126,000), and Panevėžys (~112,000).

State GovernmentLithuania is an independent democratic republic. In Lithuania, the powers of the state are exercised by the Seimas (Parliament), the President, the Govern-ment, and the Judiciary.

CurrencyLitas (LTL or Lt), which has been pegged to the Euro since 2002 at the rate of 3.4528 LTL/EUR. 100 cents = 1 LTL. Lithuania expects to join the Euro zone in 2014.

Time Lithuania is in the Central European Time Zone: GMT+2 hours (+3 hours summer time). When it is noon in Vilnius, it is 11:00 am in Stockholm and Frankfurt, 10:00 am in London and 5:00 am in New York.

CodesThe international area code is 00 370The internet country code is .lt

… is ranked as having one of the highest qualities of life among more than 190 countries around the globe. In the International Living 2010 Quality of

Life Index, Lithuania is ranked 22nd in the world by criteria which consist of nine

categories: cost of living, culture and leisure, economy, environment, freedom,

health, infrastructure, safety, risk, and climate.

…extended from the Baltic Sea to the Black Sea and was the largest country in Europe in the 15th century. By the end of the 14th century the Grand Duchy

of Lithuania occupied the territories of present-day Belarus, Ukraine, and parts

of Poland and Russia, and not because of conquest but because of diplomacy

and inclusiveness.

… was the last pagan state in Europe to accept Christianity. Lithuania officially

adopted Christianity in 1387.

…turned 1000 years old in 2009. Lithuania entered the European history when it was first mentioned in a medieval

German manuscript, the Quedlinburg Chronicle, on 14 February 1009.

...has unique nature with 22,000 rivers and rivulets, about 3,000 lakes, a clean seaside and 4 UNESCO World Heritage masterpieces. Lithuania is

sometimes called “the land of lakes” and attracts tourists looking for a vaca-

tion in the clean and calm countryside. Also, the country welcomes those who

want to explore unique natural as well as urban treasures and the deeply rooted

Baltic culture and customs.

…is known as a homeland of talented basketball players. For millions of

people all over the world, it was precisely basketball that put the name of Lithu-

ania on the map together with its star players such as Arvydas Sabonis, Šarūnas

Jasikevičius, Žydrūnas Ilgauskas and others. In the relatively short history of

Lithuanian basketball (the first basketball game took place in 1922), the men’s

national team won three Olympic bronze medals, was three times the European

champion, and once earned the European silver. To add, in 2010 the Lithuanian

youth basketball team won the U-18 European Basketball Championship.

Lithuania is larger in size than Belgium, Denmark, the Netherlands, or Switzerland.

With more than half a million people,

the capital of Lithuania Vilnius

is larger than Tallinn, Ljubljana, Bratislava and some other European capitals.

Lithuania – Largest Country in Europe in the 15th Century

Lithuanian and Samogitian lands in the13th centuryLands annexed by Mindaugas (until 1263)Lands, which temporary belonged to Lithuania, during Mindaugas’ reign.Lands annexed by Vytenis (1295-1316)and Gediminas (1316-1341)

Lands annexed by Algirdas (1345-1377)

Lands annexed by Vytautas the Great (1392-1430)

Disputed border regions with the Kingdom of Poland

Border of Grand Duchy of Lithuania in the 15th centuryBorders of other states in the 15th century

Capital cities

Other cities

Expansion of Lithuania in the 13-15th centuries

Small but sound 7

”There is a naturalness in the way Lithuanians talk, and in the way we experience pain and love.”

Arūnas Matelis, Lithuanian documentary film director

Lithuanians…... are a nation of 3.4 million who are sometimes called Northern Italians be-cause of their emotional nature as well as open-mindedness and tolerance towards other nationalities and religions. Lithuanians are regarded as more emotional, expressive and temperamental, comparing to their Northern neighbours. Also, Lithuanians have always lived in peace with other nationalities and respected their cultures. People of 115 different ethnic backgrounds live in Lithuania. 6.7% of the population are Polish, 6.3% Russian, 1.2% Belarusian, and 2.3% are of other nationalities. Most of the population is Roman Catholic, but there are also Russian Orthodox, Evangelical Lutherans, Evangelical Reformers, Old Believers, Jews, Sunni Muslims, and Karaites.

…speak the most archaic living Indo-European language, which is closely related to Sanskrit. It is possible to compare Lithuanian and Sanskrit in such a way that even those who have not studied linguistics may observe the similarities.

…are one of the best-educated and multilingual people in Central and Eastern Europe. More than 90% of the Lithuanian population has secondary or higher education. This is the highest level of education in the country in a decade and one of the highest in the EU, the average in the EU-27 being around 70%. And even 40% of the 25 - 34 year olds have higher education, which is almost twice as high as the EU-15 average. 90% of Lithuanians speak a foreign language. Half of the population speaks two foreign languages.

…have produced some globally significant achievements. Lithuanian phar-macy specialists created a cheaper, but no less effective, version of an existing medicine for treating cancer. Also, Lithuanian laser companies were among the first in the world to transfer fundamental research into manufacture.

National Holidays

January 1 New Year’s Day

February 16 Independence Day (1918)

March 11 Restoration of Independence (1990)

Easter (Sunday and the following Monday)

May 1 Labour Day

1st Sunday in May Mother’s Day

June 24 Midsummer Festival

July 6Statehood Day (Coronation of Mindaugas, King of Lithuania (1253))

August 15 Assumption Day

November 1 All Saints’ Day

December 25–26 Christmas

National FlagYELLOW: the fertile fields of Lithuania, golden with ripe rye, wheat, flax, and

other cropsGREEN: the symbol of the nation’s vitality (as represented by nature)RED: the bloodshed in defending the homeland’s freedom

”Whether it’s playing jazz or spearheading the Fluxus avant-garde art movement, Lithuanians have a natural inclination for rearranging,

for looking at things with fresh eyes, for coming at reality from an unusual angle. So it should not come as a surprise that Lithuanian bioscientists have invented a way of using enzymes to cut genes three times quicker than the best previously known methods.”

Wally Olins, Saffron Brand Consultants

1991 1992 1997 2000 2003 2004 2007 2009 2010 2011 2012 2013 2014

RegainedIndependence

Schengen areamembership

Victory in EuropeanBasketball

Championship

EUPresidency

WTOmembership

EU und NATOmembership

Maastrichtcriteria

Introductionof Eurocurrency

Key Milestones

ENGLISH: God gave teeth, God will give bread.

LITHUANIAN: Dievas davė dantis, Dievas duos duonos.

SANSKRIT: Devas adadat datas, Devas dat dhanas.

Northern Europe Service Hub 2015 9

Northern Europe

Service Hub2015

• 90% of population with secondary or higher education

• 40% of population with higher education

• 50% speak two foreign languages

• 46 higher education institutions

• 40% of talent in science and technology

• 92% operations done via e-banking

• 88% declaring their income tax online

• 2000 transportation routes to 40 countries

• Global leadership in mobile e-signature

• World’s fastest upload Internet in 2009

• World’s 5th and Europe’s No. 1 fiber broadband penetration

• Europe’s highest fiber optic density

• EU’s 1st greatest GSM penetration

• World’s No. 1 in the number of mobile telephone subscribers per 100

population

• Europe’s densest network of public Internet access points

• Low costs - among Top 10 least expensive European countries

• Great life quality - among the best locations for life in the EU

Lithuania is on the right track towards its major market development goal – becoming the Northern Europe Service Hub 2015, because it already now has:

”Expanding international businesses must seize

the opportunity in Lithuania.”

Premkumar Bhagwatsaran, CEO of Ideal Invent Technologies

”Lithuania was selected as the geographically best place for the expansion of the company business in the Baltic Sea Region. Also, Lithuania was evaluated as the country maintaining very close and successful business relations with Northern Europe countries.”

Computer Sciences Corporation (CSC)


EU’s Prime Transport Centre at the Crossroads of 3 Markets

Physical Infrastructure

Lithuania is located on the very crossroads of 3 huge markets. It’s a springboard to the EU markets (Western Europe and Scandinavian countries), and Eastern markets (Russia and the Commonwealth of Independent States (CIS)) are also just at Lithuania’s side.

Lithuania is located in the Baltic Sea Region (BSR), and has always been an active business partner with its neighbours – other BSR countries – the Scandinavian states and Germany, as well as Poland, Latvia and Estonia. Lithuania’s trade with BSR countries makes up almost 70% of all Lithuania’s foreign trade, and about 70% of FDI in Lithuania comes also from BSR countries.

Springboard to Markets Part of Baltic Sea Region

”One of the advantages of this country is being located on the border

between East and West and having transit routes. In our business we are focusing more on the transit routes, and Lithuania’s excellent geographical location has made Lithuania a transit country.”

Henrik Mųller, Hydro Texaco

”Lithuania has much to offer the foreign investor seek-ing to set up in the Baltic Region as a springboard to the East as well as to the wider European market.”

David Earp, UK Trade & Investment, Cambridgeshire

”We chose Lithuania as a production location because

of its closeness to our shops in Europe.”

Susanna Wengholt, H&M


”We found that the travel, infrastructure, communica-tions and people with whom we came into contact were

excellent and easy to deal with.”

Paul Stienlet, General Electric

Lithuania has 2000 different routes to 40 countries, and the EU’s Transporta-tion Commission designated two of them - the North-South highway and the rail route connecting Scandinavia with Central Europe as well as the East-West route linking the huge Eastern markets with the rest of Europe - as being among the ten most important in Europe.

Two Trans European Network (TEN) corridors crossing Lithuania:• North-South direction: I corridor (the VIA BALTICA highway and the RAIL

BALTICA railway), connecting Tallinn - Riga - Saločiai - Panevėžys - Kaunas - Kalvarija - Warsaw, and I A corridor (Tallinn - Riga - Šiauliai - Tauragė - Kaliningrad)

• East-West corridor: IX corridor, IX B corridor branch (Kiev - Minsk - Vilnius -Klaipėda) and IX D corridor (Kaunas - Kaliningrad)

”One main road is better than a

hundred paths.”– Lithuanian proverb

Lithuania has 2000 routes to 40 countries.

The country has 3 international airports located in Eastern (in the capital city Vilnius), Central (in the 2nd largest city Kaunas) and Western (in the seaside resort Palanga) Lithuania. They provide superb facilities to conduct passenger

or cargo traffic.

• Crossroads of North, East and West• 2000 routes to 40 countries • 2 Pan-European transport corridors • 3 international airports • Northernmost ice-free seaport on the eastern shore of the Baltic Sea • Regionally best network of roads and highways • 3 multimodal logistic centres: - Klaipėda (seaport–rail–highway) - Kaunas (rail–airport–highway) - Vilnius (rail–airport–highway)

Lithuanian trucks move more cargo than Latvian, Estonian and Russian carriers combined, according to figures by National Departments of Statistics.

Infrastructure Network


One of Central Europe’s largest refiners of crude oil the Polish PKN Orlen’s investment of more than 678 million EUR into the AB Orlen Lietuva refinery is the largest foreign direct investment in Lithuania.

The northernmost and only ice-free seaport on the eastern shore of the Baltic Sea is located in the western part of Lithuania. Klaipėda State Seaport is a re-gional transport hub connecting sea, land and railway routes from East to West. Klaipėda State Seaport handles roughly 7,000 ships and 30 million tonnes of cargo every year, and accepts large tonnage vessels: dry-cargo vessels up to 80,000 DWT, tankers up to 150,000 DWT and cruise ships up to 270 meters length. The ice-free seaport of Klaipėda is able to receive PANAMAX-type vessels.The draught of the entrance channel is 15 meters and the draught of the port navigation channel is 13-14,5 meters. Increasing the water depth in the northern part of the port to up to 17,5 meters is foreseen.

Though small in size, Lithuania has a 21,000 kilometres road system, 2/3 of which is paved with asphalt concrete. Roads in Lithuania are known to be the best in the region. Lithuania is committed to investing 145 million EUR into the Via Baltica international highway, and around 100 million EUR into three public logistic centers, which will make up a total area of nearly 970 hectares in Lithuania’s three largest cities.

Lithuania has a well-developed railway network running a total of 1,750 kilo-metres. The track is broad gauge, and provides direct connections to Latvia, Poland, Belarus, and Russia (the Kaliningrad Region) as well as a link to Poland. Lithuania is also connected to Asia and China via rail. Railways in Lithuania carry approximately 50 million tons of cargo and 7 million passengers per annum.

There are around 550,000 m² of logistics and warehousing facilities in Lithuania. The biggest supply of new, modern warehousing facilities is in the capital city Vilnius (around 300,000 m², growth – 7%), Kaunas is in the 2nd place (around 200,000 m², growth – 77%), and Klaipėda in the 3rd (85,000 m², growth – 49%). Lithuania’s northern, western, southeastern and northeastern regions are under-going further construction of logistic centres.

Energy CapacitiesLithuania has well-developed infrastructure and links to energy-rich countries. Lithuania is connected to the energy networks of Russia and the Commonwealth of Independent States (CIS) – the very same countries where the EU buys most of its energy.

A number of policies are applied to ensure country’s energy security and com-petitiveness. Lithuania pursues production diversification (new nuclear reactor, LNG terminal, renewable energy development), international energy market integration (electricity links to Sweden and Poland) and applies market principles (ownership unbundling in electricity and gas sectors in line with the Third EU Energy Package, electricity market trading) to ensure reliable, affordable and sustainable energy supply.

ElectricityThe electricity grid is part of the IPS/UPS electricity system, common to former Soviet countries. Lithuania, however, is progressing towards joining the European UCTE system. Lithuania is also taking steps to establish links to Scandinavia via Sweden, and Western Europe via Poland.

The Lithuanian Government is currently searching for investors to help build a new nuclear power plant in Lithuania, with an estimated opening date of around 2018. The cost is estimated at 3-5 billion EUR.

For business and industry, the price of electricity is largely unregulated, and electricity is available for purchase via the electricity market, which is based on the Scandinavian Nordpool model. Along with implementation of the Third Energy Package of the EU, the Government has also approved the reorganization plan of energy companies of Lithuania. It stipulates the establishment of four units of electricity companies for the activities of transmission, generation, distribution and maintenance.

According to the survey ”Getting Electricity”, which was conducted as a pilot for the Doing Business report, it takes only four steps for a new customer to connect to the electricity network in Lithuania. The only countries in Europe where it takes three steps include Germany, Switzerland, Denmark and Sweden. The cost of connection to the electricity is less than in neighbouring countries.

The European Office of Statistics estimates that electricity prices for a medium-sized Lithuanian household for 2009 were 8 Eurocents per kWh. The European average for 2009 was 12 Eurocents per kWh.

Compared to neighbouring Eastern Baltic seaports, the port of Klaipėda

has the widest shipping line network with other seaports.

Natural gasNearly all natural gas consumed in Lithuania comes from Russia. The Lithuanian Government is planning to invest in building a liquefied natural gas terminal with underground natural gas storage. The estimated cost of this project is 620-670 million EUR.Distribution of natural gas is performed with state-regulated prices. The Euro-pean Office of Statistics estimates that natural gas prices for a medium-sized household in Lithuania for 2009 were 9.9 EUR per GJ of energy. The European average for 2009 was 12.6 EUR per GJ of energy.

Only Refinery in the Baltic StatesThe only oil refinery in the Baltic States AB Orlen Lietuva owns and operates a system of pipelines with a total length of about 500 kilometres. The refinery not only satisfies the demands of the local market, but also exports to the neighbouring Latvia, Estonia, Poland and Belarus, as well as Ukraine and Western Europe.

Network of shipping lines


”Lithuania came up as one of the best cost/quality countries for ICT sourcing (specifically with regards to data entry, customer support specialists) amongst Estonia, Latvia, Lithuania, Poland, the Czech Republic, Hungary, Romania and Bulgaria, and it was, besides that, specifically relevant due to its closeness to Scandinavia and the knowledge of Scandinavian languages that can be found in the Baltics. ”

Tiina Link, Innovation Norway the Baltics

ICT FrameworkLithuania deserves to be named the home for the next NOKIA because some significant European and world-scale records belong to the country.

Lithuania maintains world’s leading ICT resources and infrastructure. Besides all most up-to-date ICT technologies (EDGE technology, 3G mobile communications infrastructure, mobile WiMAX 4G Internet etc.) fully implemented and functioning in the entire country, the following significant records belong to Lithuania:

• World’s speediest upload Internet in 2009• World’s 5th and Europe’s No. 1 fiber broadband penetration (18%)• Europe’s highest fiber optic density• EU’s 1st greatest mobile penetration of 147% • World’s No. 1 in the number of mobile telephone subscribers per 100

population - 3.4 million of Lithuanians use almost 5 million active SIM cards• Global leader in mobile e-signature• Europe’s densest network of public Internet access points (875)

World’s fastest upload Internet (2009), MB/s

EU’s 1st greatest mobile penetration (2009)

TalentAmong the Most Multilingual and Most Educated in the EUIn 2009 91.3% of the Lithuanian population aged 25 to 64 had a secondary or higher education. This is the highest level of education in the country in a decade and one of the highest in the EU, the average in the EU-27 being around 70%. Already in 2008, compared to 2005, Lithuania had 90.6% of the population having completed secondary or higher education and stood 2nd in the EU, outpacing Estonia, Norway and Slovakia.

30% of the Lithuanian population hold higher education degrees, compared to the EU average of 24%. And even 40% of the 25 - 34 year olds have higher education, which is almost twice as high as the EU-15 average. 91.7% of Lithuanian women aged 25 to 64 have secondary or higher education, which is the highest figure in the whole EU.

In 2009-2010, more than 144,000 students were enrolled in 23 Lithuania’s universities, and about 57,000 students were enrolled in 23 colleges. Out of 241,000 of Lithuanian graduates in 2000-2009, 168,000 got their degrees in universities and 73,000 in colleges. The number of higher education graduates increased almost 50% or 180,000 during the last decade, and Lithuania continues to be a pool of well-educated professionals for local and international businesses.

Lithuanians are a multi-lingual nation, which makes Lithuanian employees even more attractive. According to the ”Europeans and Languages” survey, 90% of Lithuanians are able to participate in a conversation in a language other than their mother tongue. The EU-25 average is only 50%. The three most common languages in Lithuania are: Russian, English, and Polish.

”When we established our service production facility in Vilnius, the most

positive experience we had was the high quality of the staff which made it possible for us to reach the critical production level much faster than expected. They came highly educated and motivated and quickly adopted the company values. Which again made it possible for us to quickly build company loyalty and company pride.”

Per Andreas Vogt, General Manager Lindorff Support Services UAB, Vilnius

Source: Eurostat

90% of Lithuanians speak at least one foreign language.

LithuaniaItaly

LuxembourgAustria

GermanyNetherlands

DenmarkUK

Ireland

0% 50% 100% 150%

147% 146% 142% 134% 132% 129% 126% 126% 119%

1009080706050403020100

Netherl

ands

France

Lithuan

ia

Hungary

Poland

Slovak

ia

Estonia

Czech

Republic

EU 27 Avera

ge

Sloven

ia

Austr

ia

United Kingd

om

Finlan

d

German

y

Denmark

90,9 90,6 90 89 87 85 85 82 81 8186

Latvi

a

80 78 73 73 72

Sveden

Belgium

Italy

70 70

53

”Samsung is very excited to begin Lithuania’s first Mobile WiMAX service. We believe that Samsung’s field-proven Mobile WiMAX solutions will contribute to Lithuania with its leading wireless broadband service.”

Woonsub Kim, Executive Vice President and head of Telecom Systems Division in Samsung Electronics

Source:www.speedtest.net

Source: European

Commission

LithuaniaJapan

EuropeNorth America

Hong KongSwedenRussia

AsiaSouth Korea

South America0 2 4 6 8 10

9,0 7,2 6,7 6,2 5,0 4,7 4,7 4,4 3,22,0

% of population with secondary or higher education (2008)


Inventors and Innovators40% of Lithuanian talent is concentrated in science and technology with 50% of researchers below the age of 45. Lithuania has a pool of 18,000 R&D researchers and scientists in various fields. Lithuanians are authors of a cheaper, but no less effective, version of an existing medicine for treating cancer Tevagrastim® and of a 3 times quicker way to cut genes using enzymes than the best previously known methods. Also, Lithuanian laser companies were among the first in the world to transfer fundamental research into manufacture.

Business Operation Costs

WagesLabour costs in Lithuania are more than twice lower than those in other EU countries and the US. The minimum monthly wage in Lithuania is currently 232 EUR, and the minimum hourly wage is 1.4 EUR. The average gross monthly earnings have decreased due to the economic recession. After reaching a peak of 672 EUR in 2008 Q3, they decreased to 588 EUR in 2010 Q1.

2 universities in Lithuania have special curriculums of Scandanavian languages. Also, CSC, Lindorff Group, Unicall, Runway International, operating in Lithuania, have specially designed 3-5 month courses of Norwegian, Danish and Swedish, and the trained local employees successfully serve clients in Scandinavian languages.

Languages studied in 2009 Doctoral students

”No other country has got such a unique know-how

in Western European as well as eastern countries’ languages, different cultures and a variety of business habits, which naturally developed in Lithuania’s close historical relations with other nations.”

Martin Loeffler, CEO of Eastern Europe Operations,Computer Sciences Corporation (CSC)

Field of education University and college students, 2010Number of graduates (BA, MA and specialized professional programmes) at universities, 2009

Number of graduates at colleges, 2009

Humanities 5103 1717 117

Social sciences 8896 3401 -

Business and administration 31844 7056 5421

Computer sciences 3437 949 135

TOTAL: 118177 32072 12189

18,000 R&D researchers and scientists work in Lithuania.

”The Baltics offer lower costs than Western Europe but with the regula-tory certainty of the EU.”

Financial Times, June 14, 2010

Computing Business and administration

Training teachers and pedagogyLaw

Social sciencesEngineeringHumanities

ArtsArchitecture and construction

Other

0% 5% 10% 15% 20% 25% 30%

28% 25% 10% 7% 7% 9%3%3% 6 27%

Most popular higher education programmes, 2009-2010

Source: Lithuanian Department of Statistics, www.stat.gov.lt

Average monthly gross wage, EUR, 2010

Source: WageIndicator Foundation, www.wagebarometer.org,Lithuanian Department of Statistics www.stat.gov.lt

500045004000350030002500200015001000500

0

Bulgaria

Roman

ia

Lithuan

ia

Hungary

Poland

Slovak

ia

Estonia

Czech

Republic

Croatia

Sloven

iaUSA UK

Finlan

d

German

y

Denmark

268 401588 676 713 773 825 943 967

1207742

Latvi

a

260126263011

3532

4430

EnglishGermanFrenchRussianOther

74%

10%

4%

9%3%

Social sciencesBiomedicineTechnologiesHumanitiesPhysical

sciences

861

535535

285

382

”So far, our scientists are the only ones in Central and Eastern Europe to have pulled off such a high-level project.”

Algirdas Bumelis, Head of Sicor Biotech, inventor of TevaGrastim®

”Whether it’s playing jazz or spearheading the Fluxus avant-garde art movement, Lithuanians have a natural inclination for rearranging, for

looking at things with fresh eyes, for coming at reality from an unusual angle. So it should not come as a surprise that Lithuanian bioscientists have invented a way of using enzymes to cut genes three times quicker than the best previously known methods.”


”The same technological solutions for the Dutch industry can be offered by other Western European countries, but the advantages of Lithuanian companies are production prices

and flexibility.”

Pepjin Bosman, FME-CWM business development manager(the Netherlands)


Business Start-up CostsSteps to start a private limited liability company in Vilnius:

Major Business TaxesLithuania has an attractive tax system, characterized by low and flat taxes. Both private and corporate incomes are taxed at flat rates.

As of 2010, group taxation of corporate profit has been introduced. This allows groups to balance profits and losses within them, whereby losses can be transferred among different entities of a group if the controlling entity holds at least 2/3 of the shares of the controlled entity.

Among other favorable conditions of corporate profit taxation in Lithuania are the following: entities can reduce taxable profit if they are carrying out an investment project into new technologies; expenses incurred by companies carrying out R&D projects can be deducted thrice; 10% withholding tax on interest has been abolished for companies resident in the European Union.

Tax, % Lithuania Latvia Poland Sweden

Corporate profit tax 15 15 19 26.3

VAT 21 21 22 25

Dividends 0* to 15 10 19 30

Personal income tax15 (+ 6% health insurance contribution)

26 18/32Average - 31.56%(depends on municipality and county)

Social security tax paid by the employer

31(+employee’s contribution of 3%)

24.09 (+employee’s contribu-tion of 9%)

30-44 31.42

Real estate tax 0.3-1 1.5charged by local authorities on the value of property(2% for construction)

0.5/1.0/2.2

*0% tax on dividends applies when an investor controls at least 10% of voting shares in the enterprise for a period of at least 12 months

Source: „Taxes in Europe” database, European Commission’s Taxation and Customs Union

Directorate-General

Source: Doing Business

2010 by the International

Bank for Reconstruction and

Development and the World

Bank, www.doingbusiness.org

It takes 7 steps and 26 days to start a business in Lithuania.

”Lithuania is ranked 26 out of 183 world’s economies on the ease of doing business and outpaces Latvia, Slovakia, Slovenia, Poland and Russia. Lithuania’s strong advantages are the higher and professional education system, technological market base as well as infrastructure.”

Doing Business 2010: Reforming through Difficult Times by World Bank

StepPeriod in Days

Charge in EUR

Open a bank account with the minimum capital and get a bank certificate proving the availability of the funds; pay the registration fee and obtain the document evidencing the payment

1 ~6

Notarize the agreement /memorandum of incorpo-ration and bylaws; notarise the application for the registration of the private limited liability company

2 ~145

Register with the Companies Register, including registration with the State Tax Inspectorate (the Lithuanian Revenue Authority) for corporate tax, VAT, and the State Social Insurance Fund Board (SODRA)

6 ~57

Complete VAT registration 10-15no charge

Inform the State Labour Inspectorate of the estab-lishment of the company by letter or phone

1no charge

Open a settlement bank account (to handle normal commercial transactions)

1no charge

Obtain the official seal of the company 2 ~9-26

”When we established our service production facility in

Vilnius, we were pleasantly surprised by far less red-tape than we expected.”

Per Andreas Vogt, General Manager Lindorff Support Services UAB, Vilnius


Utility Costs

Rent Rates and Land Costs Rental prices for business space vary depending on the location and the quality of the building. The price of land also varies substantially depending on the loca-tion, planning level, as well as the type of potential development.

Monthly rental of office space (EUR m2) A-Class B-Class

Vilnius 9.30-12.20

19-26 in Warsaw, Poland

7-12 in Riga, Latvia

~33 in Stockholm, Sweden

8.30-16 in Tallinn, Estonia

5.80-8.10

11-16 in Warsaw, Poland

5-8 in Riga, Latvia


4-6 in Tallinn, Estonia

Kaunas 5.20-10.40 2.90-4.60

Klaipėda 5.20-10.40 2.90-5.20

Monthly rental of retail space (EUR m2) High street Shopping centres*

Vilnius 7-26

80-85 in Warsaw, Poland 8-35 in Riga, Latvia


6-13

70-85 in Warsaw, Poland 5-40 in Riga, Latvia


Kaunas 5-10 5.2-8.7

Klaipėda 4.3-7.2 4.3-11.6

Šiauliai 3-11.6 2.3-7.2

Panevėžys 6-10 3-6

*Average retail units of 200 m2

Monthly rental of newly constructed warehouse space (EUR m2)

Vilnius 2.6-4.3 2.5-6 in Warsaw, Poland

2.5-4 in Riga, Latvia

~7.8 in Stockholm, Sweden

Kaunas 2.6-4

Klaipėda 2.3-4

Land sales price (EUR m2)

Vilnius 250-750 (central areas) 60 - 170 (outskirts)

2250-675 (central areas) and 75-375 (outskirts) in Warsaw, Poland

400-1500 (central areas) and 200-400 (outskirts) in Riga, Latvia

There are no free land plots available in Stockholm, Sweden.

Kaunas 140 - 600 (central areas); 40 - 150 (outskirts)

Klaipėda 160 - 500 (central locations); 40 - 150 (outskirts)

Sources:COLLIERS INTERNATIONAL Global Office Real Estate Review 2009, www.colliers.comRE&SOLUTION Baltic property market report, 2010, www.resolution-group.euOBER-HAUS Lithuanian Commercial Real Estate Q1 2010, www.ober-haus.comJONES LANG LASALLE Key Market Indicators Q1 2010 /European Office Property Clock www.joneslanglasalle.eu

Sources:www.energy.eu;utility services companies

Utility Measurement Average rate in EUR

Electricity 1 kWh 0.069 - 0.078

Natural gas 1 kWh 0.020 - 0.021

Cold drinking water 1 m3 1.21 – 1.33

Cold water for technical purposes 1 m3 1.17 - 2.06

Hot water 1 m3 4.74 – 6.2


Corporate profit tax incentives for R&D:• Expenses incurred by companies carrying out R&D projects can be deducted

from taxable income three times;• Long-term assets used in the R&D activities can be depreciated within two

years.

Corporate profit tax incentives for investments into new technologies:• Companies carrying out investments into new technologies can reduce their

taxable profit by up to 50%. Investment expenses exceeding this sum can be postponed to later, consecutive tax periods (up to five years).

Investment guarantees and bank loan support are provided by INVEGA, a state-established company. Guarantees are provided on bank and credit union loans. The company also subsidizes loan interest for small and medium-sized enterprises that need business financing.

Business-supporting EnvironmentEU Structural Funds and State Support for BusinessesEU Structural Funds are available in Lithuania for business development. Al-together, 7.3 billion EUR have been allocated to Lithuania for the period of 2007-2013. 3.3 billion EUR have been designated for the Operational Program for Economic Growth.

The Operational Program for the Development of Human Resources is oriented at: • Employment and more flexible jobs;• Systems of lifelong learning;• Capacities of researchers and scientists;• Improvement of public administration.

The Operational Program for the Economic Growth is oriented at:• Direct assistance to R&D and innovations; • Favorable conditions for business and innovations;• Information society for everybody;• Transportation network;• Energy supply networks.

The Operational Program for the Cohesion Promotion is oriented at:• Urban infrastructure of municipalities; • Diversifying of activities in rural areas; • Heritage/tourism;• Health; • Labor market institutions;• Educational institutions;• Environment; • Energy efficiency.

State support for businesses consists of support for R&D projects, profit tax reduction for R&D, and investments into new technologies, tax relieves in Lithuania’s 2 free economic zones and 4 industrial parks (see page 26), subsidies for employment projects, possible land and property tax relieves by local municipalities, investment guarantees, as well as bank loan support.

”Lithuania is a perfect place to generate and realize new ideas: a peaceful and tension-free environment conducive to business, with engineering potential and vast possibilities for business and science collaboration, plus a good choice of skilled labour and managerial staff.”


Enterprises may apply for between 43,000

and 5.8 million EUR of support for developing their business projects.

Evaluation and approval(Ministry of Economy, Invest Lithuania)

Letter of Intent(Ministry of Economy)

Application for financial support(Lithuanian Business Support Agency)

Project Finance Agreement

Support forBusinesses:

InvestmentProject Cycle

• Financial incentives packages offered by the Government to cover wage and personnel training costs, purchase of equipment etc.

• Tax incentives for investments into new technologies and R&D

• Tax “holidays” in 2 free economic zones

• Land and real estate tax relieves

• Tailor-made information packages, guidance through all the investment process (contact building, arranging visits and meetings, dealing with authorities, investment site selection etc.) as well as investment aftercare by Invest Lithuania

• Special agreements and assistance by the Government


Free Economic Zones

Lithuania’s two free economic zones (FEZ) are located in the country’s economi-cally important centres and provide favourable conditions for developing busi-ness activities by offering prepared industrial sites with physical and/or legal infrastructure, support services, and tax incentives.

Free Economic Zone (FEZ)

Area in 2010

Planned total area

Distance to near-est international airports

Distance from Klaipėda State Seaport

Kaunas FEZ 58,5 ha 534 ha 4 km to Kaunas Airport 228 km

Klaipėda FEZ 62 ha 412 ha25 km to Palanga Airport

210 km to Kaunas Airport7 km

In 2010 Klaipėda Free Economic Zone (FEZ) has been ranked the 5th best Free Zone in the world in the category of ”Best Facilities”, and it is also listed among 25 Free Zones of the Future 2010/11 in the overall ranking, by the premier Foreign Direct Investment (fDi) Magazine of Financial Times Ltd.

In 2010 Klaipėda FEZ has welcomed its

21st investor Heidelbergce-ment - the global market leader in ag-gregates and one of the world’s largest manufacturers of building materials, which will be engaged in the cement logistics terminal operation in Lithuania.

”We chose Kaunas FEZ for our business expansion in Lithu-

ania because of its ideal connection with main transport routes, the availability of qualified specialists in the 2nd biggest city close to the FEZ, as well as special tax incentives.”

Henri Nieminen, Finnfoam

TaxRegular rate %

Taxes in 2 free economic zones

Corporate profit tax 15no corporate tax during the first 6 years and only 50% of corporate tax over the next 10 years

Dividends 0* to 15 no tax on dividends for foreign investors

Real estate tax 0.3-1 no real estate tax

Ready-for-business LocationsLithuania welcomes foreign investors and businesses to take advantage of the special ready-for-business locations:

• 2 free economic zones (FEZ)• 4 industrial parks (IP)• 5 integrated science, studies and business centres (valleys)

2 FEZes and 4 industrial parks focus on traditional industries, while 5 valleys give preference to high-tech companies.

*0% tax on dividends applies when an investor controls at least 10% of the voting shares

in the enterprise for the period of at least 12 months

With superb road, rail and sea access, Klaipėda FEZ forms part of the hub of a multi-modal transport network. It was identified in the European Union Transport Infrastructure Needs Assessment (TINA) programme as a site for the establishment of a logistic centre, forming part of a European-wide network of these centres.

Klaipėda FEZ occupies a strategic location that is ideal for companies looking to relocate or expand production, to establish packing and distribution centres, and minimise logistics problems.

For more information on Klaipėda FEZ please see www.fez.lt

Kaunas FEZ is located in Kaunas, the second biggest Lithuanian city with a population of about 349,000 and one of the major industrial cities in the Baltic area, and is planned to become one of the largest free economic zones in the Baltic Sea Region.

Kaunas FEZ is located on the intersection of the Via Baltica, a European priority transport corridor connecting Helsinki, Saint Petersburg and Warsaw and the East-West highway linking the port of Klaipėda to Russia and Ukraine.

For more information on the Kaunas FEZ please see www.ftz.lt

One of the world’s leading plastic products manufacturers, INDORAMA of Thailand, (the world’s largest manufacturer of wire harnesses), YAZAKI (Finland’s biggest construction company), YIT, and other companies have chosen Lithuania’s free economic zones as the best places for their business expansion.

Browse the Lithuanian Market Map at www.investlithuania.comfor more on ready-for-business locations and projects.


Industrial Parks (IP)

There are 4 industrial sites in Lithuania, half of which are already fully prepared for business use and have all the necessary physical infrastructure (electricity, gas, sewerage, roads, etc.). The land in Lithuania’s IP may be subdivided into smaller parcels corresponding to the investor’s requirements and is leased for long-term periods at favourable prices. Infrastructure is brought to the investor’s plot free of charge.

Industrial Park (IP) Area in 2010 Planned total area (till 2013) Distances to international airports Distance from Klaipėda State Seaport

Šiauliai IP 54 ha 219 ha214 km to Vilnius Airport140 km to Kaunas Airport190 km to Palanga Airport

161 km

Kėdainiai IP 57 ha 132 ha150 km to Vilnius Airport50 km to Kaunas Airport220 km to Palanga Airport

205 km

Panevėžys IP 58 ha 58 ha135 km to Vilnius Airport115 km to Kaunas Airport275 km to Palanga Airport

240 km

Alytus IP 49 ha 49 ha150 km to Vilnius Airport52 km to Kaunas Airport230 km to Palanga Airport

294 km

Integrated Science, Studies and Business Centres (Valleys)

5 integrated science, studies and business centres (valleys) are being developed and will be launched in Lithuania in the coming 3-4 years by investing into their development almost 300 million EUR of the EU Structural Funds support dedicated for Lithuania for the period of 2007-2013.The 5 valleys, which will specialize in different scientific research fields (laser and light technologies, nanotechnologies, semiconductor physics, electronics and organic electronics, civil engineering, biotechnology, bio pharmacy, molecular medicine, ecosystems and safe environment, sustainable chemistry and bio pharmacy, mechatronics and biomedical engineering, energy, information and communication technologies, agriculture, forestry, food scientific research, marine business, natural resources and environmental protection), will be developed in the capital city Vilnius, in Kaunas - the 2nd largest city and industrial centre, and the seaport Klaipėda.

Business LawCompany LawTypes of companies

The following types of legal entities are permitted to operate in the Republic of Lithuania: 1) individual enterprise (sole proprietorship) (PĮ); 2) general partnership (TUB); 3) limited partnership (KUB); 4) public limited liability company (AB); 5) private limited liability company (UAB); 6) non-profit organization; 7) state enterprise; 8) municipal enterprise; 9) agricultural company; 10) co-operative enterprise; 11) European company; 12) European Economic Interest Grouping.

The most common method of investment in the Republic of Lithuania is through the incorporation of a private or public limited liability company (UAB or AB) under the Law on Companies of the Republic of Lithuania, or through the acquisition of shares in existing Lithuanian companies. Still, the most popular form of doing business in Lithuania is through a UAB. A comparison of the main features of both types of companies is presented in the table on the right.

Company registration

Registration of a UAB requires taking the following five steps: (1) lodge an application for reservation of the UAB name in the State Enterprise Centre of Registers; (2) prepare the incorporation documents according model establishment documents; (3) open an accumulative bank account; (4) submit documents for certification by a notary public; (5) register the UAB with the State Enterprise Centre of Registers. The estimated time for incorporating a UAB is about 2 weeks after all the incorporation documents are duly executed.

Shareholders

The shareholders of an AB or UAB may be Lithuanian or foreign individuals or legal entities. There are no restrictions or special encumbrances set forth with respect to foreign shareholders under the Law on Companies of the Republic of Lithuania. Lithuanian laws do not restrict in any way the participation of foreigners in the management of Lithuanian companies. Foreign citizens may be freely elected either to the supervisory council or the board or the position of CEO. However, if foreign citizens are employed in the company (employment is mandatory only for the CEO), they must obtain temporary residence permits. These permits are normally valid for up to one year, but for EU citizens they may be issued for up to five years (permits are renewable).

Requirements for the formation of business

Private Limited Company - UAB

Public Limited Company - AB

Minimum authorized (share) capital

Approx. EUR 2,900 Approx. EUR 43,450

Maximum number of share-holders (if any)

249 Not established

Minimum number of share-holders (incorporators)

1 1

Liability of shareholders Limited Limited

Audit Not mandatory Mandatory

Public trading in securities Prohibited Allowed

Obtain the official seal of the company

2 ~9-26

For more information on the integrated science, studies and business centres - valleys in Lithuania please visit:

Sunrise Valley www.sunrisevalley.lt Santara Valley http://www.smm.lt/en/smt/valleys.htm Santaka Valley http://www.smm.lt/en/smt/valleys.htm Nemunas Valley http://www.smm.lt/en/smt/valleys.htm Baltic Valley www.balticvalley.lt


Employment LawConclusion of an employment contract

The employment contract must be in writing, and in accordance with the model form established by the law, and it must contain essential provisions, i.e. those on which parties must agree to validate the employment contract, and other provisions. The essential provisions are: the place of work and work functions. Separate types of employment contracts can also provide for other essential provisions (e.g. term of contract, seasonal work, etc.). It is forbidden to enter into a fixed-term employment contract, if the work is of a permanent nature. Exceptions may be applicable in accordance with the laws or collective agree-ments. The duration of the fixed-term employment contract may not exceed 5 years. There is also an option of a remote work contract which may lay down that a function or part of functions agreed in the contract will be performed by the employee at places acceptable to the employee other than the workplace.Besides the essential provisions, in every employment contract both parties are required to agree on the conditions of payment for the work.

Termination of an employment contract

The employment agreement may be terminated under the mutual agreement of the parties. In this case the procedure established in the Labour Code has to be complied with, i.e. one party is obliged to make a written proposal to another party to terminate the employment contract and the latter will have up to 7 days for consideration of the proposal. In case the parties agree on the

conditions, the written agreement regarding the termination of the employment contract has to be concluded. The employer may terminate the employment contract both when the employee is at fault and when he/she is not. In cases where the employee has offended his responsibilities, he/she can be dismissed without a prior notice. It must be noted that the laws establish certain limitations and guarantees when terminat-ing the employment contract even in cases where the employee is at fault. The employer may terminate the employment contract with the employee without the employee’s fault, upon a prior notice of termination as set forth in the Labour Code of the Republic of Lithuania, and if the employee cannot not be transferred to another work under his/her consent.

The non-term employment contract can only be terminated for valid reasons (employee’s qualifications, professional aptitude, his/her behaviour at work, economic or technological circumstances, restructuring of the workplace etc.), and must provide a prior notice of termination as set forth in the Labour Code of the Republic of Lithuania. Certain restrictions are in effect when terminating employment contracts with individuals of certain categories (under the age of 18, the handicapped etc.); also, individuals of certain categories must be given preference to remain at work when staff is being downsized. Additionally, ter-mination of the employment contract with a prior notice when the employee is not at fault is only permissible when it is not possible to transfer the employee to another work upon his/her consent.

In case it is planned to dismiss a group of employees, the employer is obliged to inform about it and to consult with the representatives of the employees before taking the following decision. Furthermore, it is obligatory to inform the Lithuanian Labour Exchange about the dismissal of the group of employees. The employer can terminate the fixed-term employment contract before the expiry thereof only in extraordinary cases when the employee cannot be transferred to another work with his/her consent or upon payment of an average wage to the employee for the remaining period of the employment contract.The employment contract with the employee can also be terminated without a prior notice on specific grounds stipulated in the law. The employer dismissing the employee at the employer’s initiative without fault on the part of employee

must give him a written notice at least 2 or 4 months before the termination date and provide a compensation. The employee is entitled to terminate the non-term employment contract as well as the fixed-term employment contract prior to its expiry by giving his employer a written notice thereof at least 14 days in advance. Collective agreements may set a different period of a notice up to one month. The Labour Code provides for the circumstances when the minimum period of a notice to terminate the employment contract by initiative of an employee may be 3 days.

Work hours, overtime work, and remuneration

The normal work hours for an employee may not exceed 40 hours per week. The daily period of work should not exceed eight working hours. A five-day working week is standard, but it may be extended to six days. Generally, overtime is prohibited. An employer may apply overtime hours only in exceptional cases, which are specified in the Labour Code of the Republic of Lithuania. In any case the employee’s overtime hours shall not exceed four hours in two consecutive days and 120 hours per year for each employee. A different annual duration may be established in the collective agreement for overtime hours, however, it may not exceed 180 hours per year. The pay for overtime and night work shall be at least one and a half times the hourly pay/monthly wages established for the employee. The average minimum monthly wage is 232 EUR.

Vacation

The minimum annual paid holiday is 28 calendar days, but is increased to 35 calendar days for employees: 1) under the age of 18, 2) a single parent raising a child under the age of 14 or a disabled child under the age of 18, 3) disabled employees. Normally, all employees are entitled to their annual paid vacation leave after they have worked in the company continuously for an initial period of six months.

Work permits for foreign citizens

Foreign citizens (except EU citizens) who are not permanent residents of Lithuania may work temporarily in Lithuania under an employment contract, provided they

have a work permit issued by the Lithuanian Labour Exchange at the Ministry of Social Security and Labour. EU citizens are released from the obligation to obtain a work permit, but those who intend to reside in Lithuania for more than three months within a half-year period must obtain a temporary residence permit. It is not possible to apply for a residence permit while staying in Lithuania on a short-term visit visa.

Promising Business SectorsLargest and most diversified industry in Northeastern Europe


• Lithuania ranks 21st best services location in A.T.Kearney Global Services Location Index 2009 (climbing up by 8 places, in comparison with 2008)

• Government has set a strategic goal: Lithuania will become the Northern Europe Service Hub by 2015 with the share of exports of services making approximately 1/3 of Lithuania’s total exports, and 1/3 of the total FDI in Lithuania settling down in the services sector

• 15 investment projects in business services in 2008-2010 from companies such as Barclays Bank of the UK, Computer Sciences Corporation (CSC) of the US, Mirror Accounting/Lindorff of Norway etc.

• More than 30,000 multilingual university and college graduates in 23 uni-versities and 23 colleges every year, and another 200,000 in the pipeline

• Labour pool in finance and insurance of 22,000 (2009)• 90% of Lithuanians speak at least one foreign language, 50% speak two

foreign languages, and 30% speak English

ICT• World’s speediest upload Internet in 2009• Global leader in mobile e-signature• World’s 5th and Europe’s No. 1 fiber broadband penetration (18%)• Europe’s highest fiber optic density• EU’s 1st greatest mobile penetration of 147% • World’s No. 1 in the number of mobile telephone subscribers per 100 popula-

tion - 3.4 million of Lithuanians use almost 5 million active SIM cards• Europe’s densest network of public Internet access points (875)• EDGE technology, 3G mobile communications infrastructure, mobile WiMAX

4G Internet• 92% of the Lithuanian population use e-banking and 88% declare their

income tax online• 13 out of the 20 largest IT companies in the Baltic States are based in

Lithuania• IT and communications labour pool of almost 25,000 (2009)• 15 higher education institutions with IT curriculums

Biotechnologies• Products that don’t have equivalents in the CEE: recombinant proteins for

medical use (interferon α-2b, human growth hormone, granulocyte colonies stimulating factor, erythropoietin), human recombinant interferon alpha-2b (Reaferon), the human growth hormone Somatogen-L, the modified granu-locyte colony stimulating factor (GCSF) product Grasalva, the human granu-locyte colony stimulating factor (G-CSF) product TevaGrastim, Nb.Bpu10I nicating endonuclease, Eco57MI restriction endonuclease, TrueStartTM Taq DNA Polymerase, cleanup of plasmid DNA, NoLimitsTM DNR marker, etc.

• World-class research and inventions, e.g. TevaGrastim® cancer treatment medicine, 30% less expensive but as effective as existing medicine; 3 times quicker way to cut genes using enzymes than the best previously known methods

• Pool of 18,000 R&D researchers and scientists• 15 biotech research centres carrying out research on protein, enzymes and

nucleic acid for pharmaceutical purposes, and executing molecular biology research on prokaryote and eukaryote cells

• 16 institutions (including 5 major universities) training biotech specialists in cooperation with both domestic and foreign biotech companies

• 1st Baltic medical and pharmaceutical valley in the Baltic countries • Sector sales growing 22% annually, in comparison with the average global

figure of 15%• 80% of biotech and pharma production exported to over 70 countries• Financial support and fiscal incentives for R&D projects

Lasers• Global leadership in applying fundamental research to manufacturing• Leading in global production of ultra-fast parametric light generators (80%

of the market) • More than half of the global market of pico-second laser spectrometers • 10% of the global market of lasers used for scientific research• 11 science centres and laser technology research centres carry out funda-

mental research• ~ 48,000 engineers• 37,000 students in engineering• 10,000 students of physical sciences • Every tenth laser professional holds a PhD• Largest share in value added created on the national market• Sector annual growth of ~20% • 86% of production exported to nearly 100 countries

Shared Services and Business Process Outsourcing (BPO)

69% of Lithuania’s GDP is created by services.


• Former Soviet Union’s technological leader and present regional leader

• Baltic leaders in the sector operate in Lithuania

• Flexibility to satisfy small and non-standard orders

• Subcontracting for famous brands

• Quality management system ISO 9001:2000

• Biggest technical university in the Baltic countries Kaunas University of

Technology - 17,000 students

Furniture and Wood Processing• Highly forested country, deep traditions in the wood processing industry

• Among the most important suppliers for IKEA

• Highest quality requirements and design standards

• Competitive prices

• Good geographical location and short delivery terms

• Flexibility to fulfil non-standard orders

• Labour pool of over 50,000

Textile and Apparel• One of the most specialised EU countries in the textile and clothing sector

• 2,500 new specialists trained annually

• Flexibility and short delivery terms

• European and world-standard production

• Innovative research and development of new products in the Lithuanian

Textile Institute operating since 1960

Food• Eco-farming gaining lightning-fast popularity: almost 3000 eco-farms

• Deep manufacturing traditions

• Favourable climate for agriculture

• Well-developed transport infrastructure

• Modern technologies

• Lithuanian beer awarded at the ”European Beer Star Awards”, ”World Beer

Cup” and ”World Beer Championship”

Transport and Logistics• Crossroads of North, East and West

• 2000 routes to 40 countries

• 2 Pan-European transport corridors

• 3 international airports

• Northernmost ice-free seaport on the eastern shore of the Baltic Sea

• Regionally best network of roads and highways

• 3 multimodal logistic centres

Tourism• Lithuania’s capital city Vilnius breathes Europe’s cleanest air and is recog-

nized greenest among the new EU-Members

• Unique costal area of almost 100 km

• Rich natural resources (22,000 rivers and rivulets, about 3,000 lakes)

• 4 Lithuanian sights and 2 cultural traditions are on the UNESCO World

Heritage Lists

• 500 rural tourism homesteads all across the country

• Modern SPA resorts in an ecological environment

• Developed recreational infrastructure: 2 world-standard water amusement

parks, 5 ice rinks, a number of theatre and cinema halls, multifunctional

amusement centres

• Well-known cruise lines regularly visit Klaipėda State Seaport

Metal Processing, Machinery and Electric Equipment


Investor Country of Origin Industry Sector Investment in Lithuania (EUR M) Jobs created in Lithuania

Russia Fuel and power industry 380.41 2234

Poland Fuel and power industry 259.56 1672

Canada Molecular biology 202.7 22

Russia Financial services 167.2 452

Sweden Financial services 109.04 152

Barclays Bank UK Financial services 73.79 584

USA Financial services 8.7 264

Denmark Financial services 55.6 164

Norway Financial services 30.21 26

USA Information technologies 42.64 180

Culture of TrustTop Foreign Investors in Lithuania

”We chose LITHUANIA because of the high quality of education here, which has resulted in the development of world-class IT profes-sionals, many of whom are multilingual, and because of the quality of Lithuania’s technology and connectivity. We will show the world the talent that exists in Lithuania.”

Barclays Bank

”Lithuania (Vilnius) was selected as an attractive location because of its strong talent pool of highly-skilled, well- educated and multilingual professionals, its stable political and improving economic climate and world-class infrastructure as well as the Government’s policy in attracting foreign direct investments.”

Western Union

Investor Country of Origin Industry Sector Investment in Lithuania (EUR M) Jobs created in Lithuania



Norway Networking and communication devices 63.54 786

GermanyElectronics, technology and innovation

21.82 341

Norway Electronics 19.26 336

Finland Retail, food store chain 191.48 1600

Sweden Furniture 73.9 240

NorwaySheet metal manufacturing, automotive components

70.29 367

Germany Shipping and logistics 50.64 340

Sweden Textiles 8.24 40

Source: Invest Lithuania; fDi Markets database, www.fdimarkets.com, 2010


”The decision to move a part of the operations to Lithuania will help the SEB Group to increase efficiency and to reduce the costs of this division, which is particularly urgent in view of the growing requirements from clients and strengthening competition. We are happy that some of the functions are being moved to Lithuania where the SEB has experienced professionals and a strong position.”

”When we established our service production facility in Vilnius, the most positive experience we faced was the high quality of the staff which made it possible for us to reach the critical production level much faster than expected. They came highly educated and motivated and adopted quickly the company values. Which again made it possible for us to quickly build company loyalty and company proudness.”

Macroeconomic FiguresLithuanian economy. Key statistics

”Lithuania’s economy is recovering supported by a de-termined policy response and the global upturn. A size-

able fiscal adjustment − the right response to the crisis − was rewarded with renewed access to international capital markets. The Government’s efforts to facilitate FDI have already played a role in attracting leading international companies.”

International Monetary Fund, 2010

”28 foreign companies accomplished 35 new foreign direct

investment (FDI) projects and created 5300 new jobs

in Lithuania in 2009. During January − September of 2010 20 foreign investors carried out 21 new FDI projects and

created 2224 new jobs.” FDImarkets.com

investment monitor, 2010

2005 2006 2007 2008 2009 2010F 2011F

GDP growth, % 7.8 7.8 9.8 2.8 -14.8 1.6 2.8

GDP, EUR M 20 870 23 978 28 577 32 203 26 650 27 155 28 148

Harmonized consumer price index (average annual), % 2.7 3.8 5.8 11.1 4.2 -0.1 1.5

Average monthly gross earnings, EUR 369.6 433.2 522.0 623.2 594.4 563.2 566.8

Unemployment level, % 8.3 5.6 4.3 5.8 13.7 16.7 15.5

Foreign direct investment, stock, EUR M 4 690 6 921 8 377 10 283 9 149 - -

Exports, EUR M 9 490 11 263 12 509 16 077 11 795 9500 10200

Imports, EUR M 12 498 15 429 17 813 21 144 13 073 10300 11000

Exports as a share of GDP, % 57.5 59.1 54.1 60.2 44.3 34.9 36.2

Imports as a share of GDP, % 64.6 69.3 67.4 71.7 49.2 37.9 39.1

Source: Lithuanian Department of Statistics, www.stat.gov.lt; Ministry of Finance of the Republic of Lithuania, www.finmin.lt

”When estimating conditions for starting our business in Lithuania, we hardly found any obstacles. Instead, we discovered numerous advantages, which I am sure our enterprise will benefit a lot from. Conveniently located between East and West and with a pool of multilingual local specialists, our Lithuanian centre will serve clients both in the East and in the West, and even in the Middle Asia in the near future. Our competitors seeking to collaborate with us on the Lithuanian market just prove our selection to be very worth and really promising.”

”With Fermentas, we are better-positioned to meet the demands of molecular and cell biologists for complete workflows that can accelerate their research and improve results.”

”The joint research centre with a global high-tech giant undoubtedly marks a huge achievement for Lithuania. It is turning into a country creating innovations for the entire world.”

”CSC chose Lithuania to offshore from Denmark base because we found here very skilled IT specialists and Scandinavian languages speakers.”


Major countries investors, 2009

SwedenPolandDenmarkGermanyNetherlandsEstonia

RussiaFinlandLatviaNorwayOther

12%

11%

10%

10%

7%7%7%

5%

4%

4%

23%

Composition of the Lithuanian economy, 2010

Wholesale and retail trade ManufacturingReal estate, renting and business activitiesTransport, storage and communicationPublic administration and defenceConstructionEducationAgriculture, hunting and forestryHealth and social workElectricity, gas and water supplyOther

17%

16%

14%14%

8%

6%

6%

4%

AgricultureIndustryConstructionTrade, hotels and restaurants; transport, storage and communica-tionsFinancial intermediation; real estate, renting and business activitiesPublic administration; services for social sphere and community activities

Structure of gross value added by kind of economic activity at current prices, 2009

Services - 69%

4%

21%

6%

32%

21%

7%

Export by type of product, 2009

Major export destinations, 2009

Mineral productsMachinery and mechanical appliancesProducts of the chemical and allied industriesVehicles; aircraft; vessels and associa-ted transport equipmentPrepared foodstuffs; beverages and spirits; tobaccoTextiles and articles thereofBase metals and articles thereofPlastics, rubber and articles thereofVegetable productsOther

RussiaLatviaGermanyPolandEstoniaNetherlandsBelarusUK

DenmarkSwedenFranceUkraineUSNorwayItalyOther

RussiaGermanyPolandLatviaNetherlands ItalyBelgiumSweden

EstoniaFranceChinaDenmarkFinlandCzech Rep.UKOther

22% 29%

10%

13%9%

13%

10%

10%

7%5%4%

4%

4%3%

17%

12%7% 6%7%

6%

15%

16%

FDI in Lithuania, 1997-2009

Number of investors FDI, EUR bn

1997 1045 0.81

1998 1624 1.21

1999 1758 1.88

2000 1893 2.39

2001 1996 2.70

2002 2168 3.09

2003 2444 3.82

2004 2652 3.97

2005 2901 4.69

2006 3150 6.92

2007 3151 8.38

2008 3396 10.28

2009 3615 9.15

2010 3876 9.64

Import by type of product, 2009

Major importers to Lithuania, 2009

6%

5%

4%4%

7% Mineral productsMachinery and mechanical appliancesProducts of the chemical and allied industriesVehicles; aircraft; vessels and associa-ted transport equipmentPrepared foodstuffs; beverages and spirits; tobaccoPlastics, rubber and articles thereofVegetable productsTextiles and articles thereofMiscellaneous manufactured articlesLive animals; animal productsBase metals and articles thereofOther

7%

7%

7%

6%

5%7%

5%

5%

5%

4%

3%3%3%2%

30%

11%

10%4%

4%3%

3%

12%

6%

3%3%3%

2%2%

2%2%

Source: Lithuanian Department of Statistics, www.stat.gov.lt


”I love every minute of my time here.

I love it so much, and as I was one of the first to arrive, I hope to be the last to leave.”

David Telky, Pentland company

”Not only are there excellent business opportunities, there is

a welcoming social atmosphere too amongst these very genuine and friendly people.”

David Earp, UK Trade & Investment, Cambridgeshire

Lifein Lithuania

One reason Lithuania is such a nice place to do business is because it is a terribly nice place to be: to live in, to work in, to spend time in; it is pretty and enjoy-able; it has a strong and benign sense of national identity that is exciting and interesting; it’s full of people who are lively and healthy and diligent; and it has a culture that is familiar to you whether you’re Russian or American or Danish.

Lithuania offers a comfortable space for a family from abroad to enjoy life with easy access to all sorts of social services. For example, foreign families may apply to international schools specializing in the education of children from foreign families, as access to an international school is an important considera-tion of family life. Increasing enrolment at the Vilnius International School, the American International School of Vilnius and Vilnius French School (see Social Institutions on page 56) reflects the growing diplomatic and investor community. Also, Lithuanian universities welcome foreign students eager to enrich their knowledge. Furthermore, private healthcare services are available to Lithuania’s visitors in all cities and towns.

According to the International Living 2010 Quality of Life Index, the quality of life in Lithuania (consisting of the cost of living, leisure and culture, economy, environment, freedom, health, infrastructure, risk and safety, as well as climate) is one of the highest among EU members (higher than that of Sweden, Great Britain and Greece) as well as No. 22 in the world.

”Lithuania, Hong Kong and Malta are top-ranked for the quality of health and hygiene, with high levels of access to clean drinking water and sanitation. In addition, hospital beds and doctors are readily available for those who do fall ill. They are therefore able to cater very well to a major concern for tourists when considering where to travel abroad.”

Travel and Tourism Competitiveness Report 2009by World Economic Forum

Eurostat’s survey on price levels across Europe revealed that Lithuania is on the list of the Top 10 least expensive countries in Europe.


Competitive Living Costs

Vilnius, Lithuania, EUR Riga, Latvia, EUR Warsaw, Poland, EUR Stockholm, Sweden, EUR

Monthly apartment rent (a furnished 2-bedroom apartment) in the city centre

300 - 750 400 - 900 600 - 1500 620 - 1200

Monthly rental of 100 m² office space in the city centre

600 - 1200 600 - 1000 1500 - 2400 1200 - 2550

Hotel accommodation (4-star)/one weekend night

31 - 101 27-250 50 - 190 130 - 221

Annual tuition of a non-citizen child in an international school for foreigners

1225 - 17550 12400 - 14700 3500 - 12000 5883-17485

Kindergarten monthly fee (one child)90 - 150 (public) 150 - 450 (private)

35 - 43 (public) 270 - 423 (private)

~75 (public)200 - 380 (private)

54-95

Sports club monthly membership 30 - 150 30-71 40 - 200 40 - 120

Basic medical tests at a private clinic 10 - 30 5-24 30-50 23 - 145

Taxi 1 km ride 0.4 - 0.6 0.8 0.4 - 0.74 0.85 - 1.50

1 minute call from- mobile network- fixed network

0.05 - 0.060.06 - 0.10

0.03 - 0.130.03 - 0.27

0.10 - 0.210.02 - 0.08

0.05-0.180.02-0.06

Car rental for a weekend* 35 - 95 40 - 150 26 - 150 70 - 150

Theatre tickets for two people 6 - 55 5 - 50 4 - 40 18 - 65

Lunch for 2 in the city centre 10 - 60 10 - 80 6 - 50 64 - 218

* Rates include 24-hour rental period, VAT tax includedSource: Invest Lithuania

In 1940 the standard of living in Lithuania was higher than in Finland.

World-Recognized Heritage in LithuaniaLithuania has four sites included on the UNESCO World Heritage List. The first site is the Old Town of Vilnius, one of the most beautiful in Europe. Built in the Middle Ages, it has remained authentic until today.

The second site is the Curonian Spit, seen and enjoyed annually by many visitors from all over the world. It is a long and narrow piece of land, which is locked in the waters of the Baltic Sea from the west, and the Curonian Lagoon from the east. It is a beautiful creation of both nature, and man.

The third site is the Cultural Reserve of Kernavė – a historic settlement that represents a unique, no longer existent culture, and civilization.

The fourth site is the Struvė Geodesic Arc which crosses a part of Lithuania, and extends through nine other European countries. The Arc is one of the greatest scientific and technological achievements of the 19th century. It manifests a unique international connection of science and culture.

Two outstanding Lithuanian cultural traditions enrich the UNESCO Representative List of the Intangible Cultural Heritage of Humanity. Lithuanian cross-crafting and its symbolism has caught the world’s eye with its deep spirituality, and abundant varieties. Wooden and iron crosses, and their inspiring ornamentation, are still present in the traditional landscape.

Another living tradition is the Baltic Song and Dance Festival, which enchants both the visitors, and the participants. Over 20,000 singers, musicians, and dancers flood the city with an endless amount of music and joy every four years. Sutartinė, a unique style of traditional folk song, is waiting to be included in UNESCO Representative List of the Intangible Cultural Heritage of Humanity.

Unique nature5 national parks, and 30 regional parks filled with virgin forests and unspoilt marshlands, are found in Lithuania. They are inhabited by protected wild animals and rare birds.

Lithuania has 22,000 rivers and rivulets and over 3,000 beautiful lakes. There are plenty of opportunities to learn more about Lithuania and its lovely, unspoiled countryside. Relaxing in countryside tourism homesteads by a tranquil lake is one

of the options. Furthermore, there are routes and paths for walking, horseback-riding, cycling, bird watching, and water tourism. Many of these locations are easily accessible via the motorways.

SPA treatments Various SPA centers in Lithuania provide high quality beauty and medical treat-ments for a reasonable price. Ancient traditional methods of treatment are combined with modern technologies. For example, Druskininkai is one of Lithu-ania’s oldest resorts. Mineral water springs were discovered here in the 18th century, and some time later, some of the highest quality healing mud in Europe was also found there.These natural resources are now being used to rebalance and restore the harmony of the mind, body and soul. This type of relaxation is popular not only among Lithuanians, but also among foreign tourists – Russians, Poles, and Germans.

Cultural life A large variety of festivals take place during the year in major cities and resorts. These include classical and jazz music festivals, folk, theatre and film festivals. Music and theatre performances have always been world-class in Lithuania. Foreign theatre groups, opera and ballet companies, and popular music groups include Lithuania in their world touring schedules as well.

Vilnius, the capital of Lithuania, was selected as the European Capital of Culture for the year 2009. Hundreds of cultural projects and events took place in the Lithuanian capital. A large number of those successful cultural events have become a new tradition.

INVEST LITHUANIA – Focusing on Foreign Direct Investment 47

Invest Lithuania Focusing on Foreign

Direct Investment

”I have worked with a number of groups such as yours over the years and

I can safely say that the professionalism, flexibility and speed of execution was without doubt the best I have experienced. My team and I are looking forward to continuing to work with you in the coming months as we move into the implementation phases of this project. Once again my sincere thanks for all that you have done for us.” David Larkworthy, SVP Head of Operating Strategy, EMEA-APAC, Western Union

Financial Services

”When we started collaborating with the Ministry of Economy and Invest Lithuania, we received a very favourable standpoint and much interest as

well as support, and decided not to look elsewhere.”Premkumar Bhagwatsaran, CEO of Ideal Invent Technologies

INVEST LITHUANIA is a team of more than 30 professionals actively working to attract foreign investors to Lithuania, as well as to spread the word all around the globe about immense business opportunities on the biggest market among the Baltic countries.

INVEST LITHUANIA invites foreign businesses to join the club of foreign investors already feeling at home in Lithuania: WESTERN UNION (USA), COMPUTER SCIENCES CORPORATION (USA), BARCLAYS BANK (UK), RGE (UK), CITCO (Netherlands), MIR-ROR ACCOUNTING (Norway), FINNFOAM (Finland), STIGA GAMES (Sweden), METSO PAPER (Sweden), INVACARE HOGH (Denmark), TRANSCOM (Luxembourg), DEMATIC (Germany), PEEK&CLOPPENBURG (Germany), WINCOR NIXDORF (Germany), MAR-ZOTTO (Italy), CERUTTI (Italy), CIE AUTOMOTIVE (Spain), INDORAMA (Thailand), D.BOSS (South Korea), WAKO BUSSAN (Japan), and many others.

The team of INVEST LITHUANIA facilitates foreign investors in Lithuania by:

• Providing information and consultancy on investment opportunities in Lithuania

• Making analyses on local offerings and providing benchmarking services to investors

• Searching for matching local partners and building contact networks • Guiding through the investment location selection process and organising

company visits • Providing investment aftercare services

INVEST LITHUANIA is ready to take care of what you really care. Free of charge.

ContactsJogailos g. 4 LT-01116 Vilnius, LithuaniaTel. (+370 5) 262 7438Fax (+370 5) 212 0160E-mail: [email protected] www.investlithuania.com

Representative Office in Germany Poststraße 33, 20354 Hamburg, GermanyTel. (+49) 40 350 85 36 Fax (+49) 40 350 85 37 E-mail: [email protected]

Representative Office in Belgium Avenue de Cortenbergh, 1681000 Brussels, BelgiumTel. (+32) 22376675Fax (+32) 27338770E-mail: [email protected]

Invest Lithuania in Social Media:

ENTERPRISE LITHUANIA – Focusing on Quality Production 49

Enterprise LithuaniaFocusing on

Quality Production

ENTERPRISE LITHUANIA with more than 10 years experience is the main governmental institution responsible for the promotion of exports of Lithuanian goods and services.

ENTERPRISE LITHUANIA is trusted among business communities worldwide. Our expertise is gathered by our long-lasting relationship with Lithuanian exporters, international projects and local initiatives: Competitivenessw Center, Clusters Competence Network, Exporters’ Academy, which are giving an impact on knowledge, market intelligence and competences in each specific industry.

ENTERPRISE LITHUANIA assists foreign businesses interested in Lithuanian products and services by:

• Providing information about Lithuanian products and manufacturers Our sector consultants answer direct inquiries for specific information free-

of-charge.• Searching for matching local partners On request individual visits to Lithuanian producers, exporters are organized

free-of-charge. Note that Enterprise Lithuania does not provide matchmaking with agents and distributors for the Lithuanian market.

• Organizing trade missions, seminars, b2b matchmaking events and participation in business exhibitions

Incoming and outgoing trade missions are organized often in cooperation with partner organizations abroad. In general, these services require a modest fee, but occasionally b2b matchmaking events (in Lithuania) are free-of-charge.

Enterprise Lithuania followed by leading Lithuanian manufacturers participates in a number of main business exhibitions and events. You can find our national stand in Hannover, Birmingham, Paris, Baku ant other exhibition centers, where our experts are eager to answer your questions.

ContactsA.Goštauto 40 ALT-01112 Vilnius, Lithuania Tel. (+370 5) 249 9083 Fax (+370 5) 204 5808 E-mail: [email protected] www.enterpriselithuania.com

Enterprise Lithuania in Social Media:

• Developing international business promotion projects We are active in cooperation with international business community and always

follow latest business development trends. ENTERPRISE LITHUANIA is always open for proposals to enhance import promotion from and partnerships with foreign organizations.

Business Communication Tips, Dos and Donts 51

Business

Business etiquette in Lithuania CommunicationLithuanian is the official national language, but most businessmen speak English and Russian.Meetings are arranged in advance and confirmed by a telephone call or e-mail. The agenda of the meeting is also arranged in advance.There is a tradition of exchanging business cards during the first meeting.Lithuanians are very punctual. You will definitely receive a phone call from a visitor a couple of minutes before meeting, if he feels he will be more than five minutes late. Visitors are also expected to arrive on time for every appointment.

Decision-makingThe decision-making process in Lithuania is relatively quick. You simply have to agree on a specific date with your partner, and a decision will be ready by that date.

Deadlines are expected to be respected. The planning process may be a little long and detailed, but once the planning is over, the project will move very quickly.

Dos and DontsCommunication Tips,

AppearanceBusiness dress in Lithuania is conservative. Businessmen usually wear dark suits in the autumn and winter seasons. Light suits are worn in the summertime.Businesswomen also dress conservatively, usually in dark suits and white blouses.

BehaviourA handshake is customary at both the beginning and the end of a meeting, and when visiting a home. People that have worked together for years still shake hands each morning, as if it were the first time they were meeting. Be sure to look directly into the person’s eyes while shaking hands.Lithuanians like to keep a larger personal space around them. The acceptable distance is the length of an outstretched arm.If attending dinner at a family residence, it is appropriate to bring a gift, such as a bottle of wine, dessert, or a bouquet of flowers for a female host.

Business Communication Tips, Dos and Donts 53

Dos and DontsDO arrive on time. Lateness might indicate that you don’t respect your hosts.DO exchange business cards after introductions.DO wait for a woman to extend her hand first.DO be aware that you might have to remove your shoes before entering a

Lithuanian home.DO bring a gift for your hosts, such as chocolates, liquor, flowers, or fruit.DO give flowers in odd numbers, not even. Even numbers of flowers are for funeral.DO expect a Lithuanian to try to protest if you give them a gift. Explain that

it’s just a little something and offer it again until they accept.DO compliment the host.DO tip about 10% of the bill. That is customary, but not obligatory.DO open your gift upon receipt.

DON’T make jokes about Lithuanian culture. Lithuanians are very proud of their culture, so to make a joke about it would be in poor taste.

DON’T confuse a Lithuanian with being Russian. Lithuanians hate it when foreign-ers, unaware of the troublesome history of their country, confuse them with Russians. Praising Communism and the Soviet times would also be a major mistake in this country.

DON’T mix Baltic capitals – each country is very proud to be independent, and apart of that, Lithuanians are extremely proud to have 1000-year history.

DON’T shake hands or greet someone over a threshold; it’s bad luck. Go into the room first, and then exchange handshakes.

DON’T remain seated while greeting someone. Stand up!DON’T move to a first name basis until invited to do so.DON’T wear t-shirts, shorts, sneakers, or sweats during business meetings.DON’T give yellow flowers, as they mean separation or splitting. DON’T sit at the sharp corner of a dinner table if you are single, as it means

that you will stay single forever. :)DON’T put your hands in your pockets or sit with an ankle resting on the other

knee. Both are considered poor etiquette.DON’T try to schedule meetings in July and August, which are common vaca-

tion months.DON’T try to bring personal relationships into business. They are kept separate.DON’T ask personal questions. It may seem intrusive.DON’T give a baby gift before a baby is born; it’s bad luck.DON’T smile unless you mean it. In Lithuania, smiling a lot can be seen as

insincere.DON’T drop litter.

Some basic phrases

English LithuanianHello SveikiGood morning Labas rytasGood afternoon Laba dienaGood evening Labas vakarasGood-bye Viso geroPlease PrašomThank you AčiūYes/No Taip/ neExcuse me Atsiprašau

Useful Links 55

Useful Links

Governmental InstitutionsGovernment of the Republic of Lithuania www.lrv.ltMinistry of Economy www.ukmin.ltMinistry of Agriculture www.zum.lt Ministry of the Environment www.am.ltMinistry of Culture www.muza.ltMinistry of National Defence www.kam.ltMinistry of Education and Science www.smm.ltMinistry of Finance www.finmin.ltMinistry of Foreign Affairs www.urm.ltMinister of Health Care www.sam.ltMinistry of the Interior www.vrm.ltMinistry of Justice www.tm.ltMinistry of Social Security and Labour www.socmin.lt Ministry of Transport www.transp.lt

Other Governmental InstitutionsLithuanian State Property Fund www.vtf.lt

Department of Statistics www.stat.gov.lt

State Patent Bureau www.vpb.lt

Tourism Department www.tourism.lt

Bank of Lithuania www.lb.lt

Customs Department www.cust.lt

Central Mortgage Office ww.hipotekosistaiga.lt

Information Society Development Committee www.ivpk.lt

Lithuanian Agricultural and

Food Market Regulation Agency www.litfood.lt

State Enterprise Centre of Registers www.registrucentras.lt

Lithuanian Business Support Agency www.lvpa.lt

Lithuanian Business OrganizationsInvestors’ Forum www.investorsforum.lt

Confederation of Lithuanian Industrialists www.lpk.lt

Lithuanian Business Employers’ Confederation www.lvdk.eu

Lithuanian Business Confederation |

ICC Lithuania www.icclietuva.lt

Lithuanian Business Support Agency www.lvpa.lt

Association of Lithuanian Chambers

of Commerce, Industry, and Crafts www.chambers.lt

Vilnius www.cci.lt

Kaunas www.chamber.lt

Šiauliai www.rumai.lt

Klaipėda www.kcci.lt

Panevėžys www.ccic.lt

Foreign Business Associations and MissionsAmerican Chamber of Commerce www.acc.lt Advantage Austrian Commercial Office www.advantageaustria.org/lt British Chamber of Commerce www.bccl.lt Finland Trade Centre Finpro Lithuenia www.finpro.fi/lithuania Flemish Trade Baltic States [email protected] Chamber of Commerce www.cci-fr.ltItalian Trade Commission www.italtrade.comItalian Chamber of Commerce for Lithuania www.italchamber.ltInnovation Norway [email protected] Russian Trade Office www.rustrade.ltSwedish Trade Council [email protected] German Baltic Chamber of Commerce www.ahk-balt.orgSwiss and Baltic Chamber of Commerce www.sbcc-chamber.com

Useful Links 57

For more useful addresses please seewww.businesslithuania.com

Foreign Representations -Diplomatic MissionsAustria www.aussenministerium.at/wilna Azerbaijan info azembassy.ltBelarus www.lithuania.belembassy.org Belgium www.diplomatie.be/vilniusBulgaria vilnius bgembassy.ltCanada www.canada.lt China www.chinaembassy.ltCzech Republic www.mzv.cz/vilniusDenmark www.ambvilnius.um.dkEstonia www.estemb.ltFinland www.finland.ltFrance www.ambafrance-lt.orgGeorgia http://lithuania.mfa.gov.geGermany www.wilna.diplo.deGreece [email protected] mission.vno kum.huIreland www.embassyofireland.lt Italy www.ambvilnius.esteri.itJapan www.lt.emb-japan.go.jpKazakhstan http://kazakhstan.embassy.lt Latvia www.am.gov.lv/en/vilnius/Moldova www.lituania.mfa.mdNetherlands www.netherlandsembassy.ltNorway www.norvegija.ltPoland www.wilno.polemb.netPortugal [email protected] www.romania.ltRussia www.lithuania.mid.ruSpain [email protected] , vilnius mcx.es Sweden www.swedenabroad.com/vilniusThe Holy See [email protected] turkemb.vilnius mfa.gov.trUkraine www.mfa.gov.ua/lithuania United Kingdom www.britain.ltU.S.A. http://vilnius.usembassy.gov

Social Institutions,Foreign Culture CentresVilnius International School www.vischool.ltThe American International School ofVilnius (AISV) www.aisv.ltVilnius French School www.efv.ltMedical Diagnostic Centre www.medcentras.ltBaltic-American Medical and Surgical Clinic www.bak.ltFrench Culture Centre www.centrefrancais.ltInstitute of Italian Culture www.iicvilnius.esteri.itLithuanian National Culture Centre www.llkc.ltPolish Culture Centre www.polskidom.ltRussian Culture Centre www.rkc.ltSwedish Culture Centre skc.su.ltSwiss Culture Centre www.sveicarija.su.lt

Links for Travellers Lithuanian Internet gates www.lietuva.lt Official travel and tourism guide www.travel.lt Lithuanian Yellow Pages www.yellowpages.lt or www.visalietuva.lt/en Vilnius International Airport www.vilnius-airport.lt Kaunas Airport www.kaunasair.ltPalanga Airport www.palanga-airport.ltLithuanian Railways www.litrail.ltKlaipėda State Seaport www.portofklaipeda.lt

Career

Advantage Lithuania