VILNIUS, Lithuania, Aug. 15, 2022 /PRNewswire/ -- Despite global economic challenges and the war in Ukraine, Lithuania has witnessed steady growth in FDI, proving that international companies continue to see the country as a stable partner for expansion.
During the first half of 2022, Invest Lithuania helped attract 40% more FDI projects than in H1 2021: 31 compared to 22. Fifteen new companies have announced plans to establish operations here, while 16 companies have confirmed expansion projects.
The Minister of the Economy and Innovation, Ausrine Armonaite, stresses this even split between new entrants and expansions is a healthy growth sign: "There has been no shortage of discussion about the war's possible impact on the region's economy, but Lithuania has retained the image of an attractive business partner. Lithuania's membership in NATO and the European Union, its developed infrastructure, tax incentives, and highly-qualified talents create a favorable business environment for international companies."
Tech remains the driving force
With 17 out of 31 FDI projects being tech, the sector asserts its dominance as the country becomes an increasingly active tech hub. The strongest player in the landscape is fintech – Lithuania has the most licensed fintech institutions (147) in the EU. This has led to the growing support ecosystem: tech-focused lawyers, HR, and communication professionals delivering substantial aid to all processes.
Amongst the tech newcomers, American in-location experience management leader Raydiant, establishing its largest office outside the US, and German IT services powerhouse GOD, opening offices in the two largest Lithuanian cities.
Manufacturing projects on the rise
Lithuania has also welcomed a significant number of manufacturing projects in 2022. New manufacturing facilities are one of the strongest indications of a healthy and stable investment environment. Global bicycle industry leader PON.Bike announced expanding to Lithuania, Ryanair group's FRC LT will grow an aircraft maintenance facility, and a veteran Dovista will further improve their Lithuanian factory.
The question of energy security is likely to become a pressing issue for manufacturing companies. The fact that Lithuania is the first EU country to have completely severed itself from a dependency on Russian gas may well act in its favor.
Lithuania has repeatedly proven that it is peculiarly suited to withstanding and proactively responding to geopolitical shocks. With its responsive governmental institutions, and robust, community-minded populace, Lithuania reacts to situations with the agility and creativity of a start-up.
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SOURCE Invest Lithuania