Lietuvos užsienio investicijų strategija

Abstract

Country which is willing to attract large foreign invesments has to take into account following issues: 1. Political climate, licences and permissions. Company going into specific project is looking at the political situation for the region and for specific type of the project. Situation has to be stable and open. Government has to make easier procedures for obtaining different licences and permits in sectors, which need strong capital investment. 2. No danger of expropriation. Two forms are possible direct and indirect. Direct expropriation could be caused by political changes and aggression of neighbours. Indirect expropriation is used by politicians by imposing taxes for specific industry or project. This situation has to be severely monitored in Lithuania. 3. Risk of the country. Usually is associated with low hard currency reserves of the country. Later country can not executed guarantees given for big projects. 4. Risk with national currency and its exchange rates. This risk is high in Lithuania, because local currency is fixed to USD and all payments in Lithuania have to be down only in Litas. In case local currency is going to be devaluated, company operating mainly on Lithuanian market will have significant losses. 5. Influence of tax system onto the project. Objective of each investor is to have as less expenses as possible. State tax system should be flexible in order to attract potential investors. 6. Good telecommunication and information infrastructure. 7. Good supply of skilled labour. Skilled labour is needed for all type of industries. Lithuania has good background of technological education, but business, law and political education lags till far behind Western standards.