Lithuanian Development Agency Activity Report for 2007

The aim of the Lithuanian Development Agency (LDA) is to promote the development of Lithuanian businesses by ensuring their competitiveness in international markets, as well as to support the growth of the country’s economy by attracting foreign direct investments to Lithuania.

The Ministry of Economy of the Republic of Lithuania is the sole proprietor of LDA, and in its activities, LDA follows the goals, objectives and measures established under the Economic Development Programme as envisaged in the strategic plans of the Ministry of Economy.

While implementing the Economic Development Programme, in 2007 the main focus was given to the implementation of the following three objectives:

• to become the country’s economic image-maker and a key partner providing economic information to Lithuanian and foreign companies;
  
• to attract foreign direct investments (FDI) to Lithuania, encouraging their focus on high added value activities based on science, knowledge and high technologies in various industrial sectors, including the traditional ones, and on high added value services for business;
  
• to contribute to the strengthening of Lithuanian companies’ positions on international markets, encouraging their involvement in international trade and promoting their competitiveness.

The budgetary funding totalled LTL 5.73 million (EUR 1.6 million), including an LTL 215,000 (EUR 62,270) capital subsidy, the allocations of LTL 110,000 (EUR 31,860) from the EU Commission’s European Information Centre, LTL 402,100 (EUR 116,456) from the fund of national assistance through the Ministry of Economy of the Republic of Lithuania for the implementation of 2 projects ("One-stop shop – favourable conditions for trade", "Establishing instruments of investment environment benchmarking module and foreign direct investment marketing”).

The structure of LDA and the titles of staff functions were changed as of December 22, 2007. According to the new structure, the number of staff positions at the Agency went up from 38 to 62.

In 2007, LDA consisted of the International Trade Development, Investment, and Information and Administration Departments and the Euro Info Centre. LDA has 4 representative offices abroad: two in Germany (Hamburg and Offenbach am Main), one in Italy (Milan) and one in Belgium (Brussels).

Promotion of Foreign Investments

• The Agency realised 9 investment projects (chemical industry, plastics, pharmaceutical production, IT, wood, food, transport equipment (automotive), and services) of LTL 102 million (EUR 30 million), which created 339 work places; LDA is planning 17 new potential foreign investment projects with a calculated value of LTL 2.5 billion (EUR 724 million). 4800 work places are expected to be created.
  
• LDA organised 43 visits of potential foreign investors to Lithuania;
  
• 6 investment missions abroad were organised, 24 foreign companies were visited;
  
• LDA organised 14 investment seminars;
  
• 206 foreign companies were consulted on investment opportunities in Lithuania;
  
• A joint Lithuanian-Estonian-Finnish-Swedish-Danish marketing campaign titled “Scandinavian and Baltic Countries in India” was carried out; 3 missions were arranged, during which 9 individual meetings with potential investors from the ITT, biotechnology and pharmaceutical sectors took place; visits of 5 Indian periodicals and one public relations representative to Lithuania were arranged, meetings with 8 companies took place;
  
• 20 municipalities of Lithuania were visited and advised on issues related to attracting foreign direct investments; a workshop and a visiting round-table discussion for municipalities were organised;
  
• The project “Benchmarking module of investment environment and conditions in Lithuania and other European states. Implementation of the module in the Lithuanian Development Agency” was implemented; the generated benchmarking material will help present Lithuania to potential investors and distinguish it among other countries more attractively.

Presentation of Lithuanian Business Opportunities Abroad

• LDA prepared and published 11 publications on the economic environment of Lithuania in Lithuanian, English, German, French, Italian, Spanish and Russian (a total of 35,000 copies); the advertising material for Lithuania’s business environment presentation (presenting investment advantages of Vilnius, Kaunas, Klaipėda, Panevėžys, Elektrėnai) at the MIPIM 2007 exhibition was prepared (MIPIM 2007 in Cannes attracted approximately 26,000 visitors);
  
• 70 articles and reports for foreign media about Lithuanian business opportunities and business conditions were initiated and prepared;
  
• LDA presented business opportunities in Lithuania in 17 international events (including the XII conference of the World Association of Investment Promotion Agencies (WAIPA) in Geneva, a presentation of the Irish scientific research and experimental development and innovation financing model in Dublin, participation in the official delegation of the President of the Republic of Lithuanian during meetings with the President of Portugal and Portuguese business representatives, a presentation of Lithuanian business opportunities in Frankfurt-am-Main, a conference on investment organised by the Hungarian Investment and Trade Development Agency in Budapest, an exhibition presenting Lithuania in Milan, etc.);
  
• The Agency prepared 74 specialized presentations on Lithuanian business climate;
  
• In cooperation with the IMD World Competitiveness Centre in Switzerland, the World Competitiveness Yearbook (a printed edition, a CD and the website, the audience amounts to 90,000) was prepared. The Yearbook provides a deep analysis of the ability of 55 countries (Lithuania was ranked 31st) to create and maintain a competitive business environment for enterprises;
  
• Specialised information about the Lithuanian business and investment environment was provided to 78 foreign entities;
  
• LDA’s Internet website www.lda.lt was visited by 8100 unique users per month.

LDA publicity

Information on LDA’s activities was published on DELFI, AINA, ZEBRA, VTV, JT, BNS, BALSAS, ALFA, ELTA websites, in the Verslo Žinios, Kauno diena, Lietuvos Rytas, Veidas, Respublika, Lietuvos Žinios newspapers, in regional press media, andVerslo Banga electronic publications; TV reports were shown on the LTV and Channel 5, reports on Žinių Radijas and Lietuvos Radijas radios were broadcast (total of 200 articles, reports and commentaries).

• Participation in 19 international events in the countries of residence, presenting business opportunities in Lithuania (audience of 2250);
  
• Information and consulting services were provided to 82 Lithuanian companies and 230 companies in the countries of residence;
  
• 55 targeted companies of the country of residence were visited;
  
• 2 business missions were organised;
  
• 15 potential foreign investment projects with a calculated value of LTL 132 million (EUR 38 million) have been planned; 630 work places are expected to be created;
  
• 2 investment projects of LTL 15 million were directly implemented, and 110 new jobs were created (in food and medical instrument production sectors);
  
• 9 international trade development projects with a calculated value of LTL 12.25 million (EUR 3.5 million) are planed;
  
• 2 international trade development projects of LTL 1.25 million (EUR 0.4 million) were directly implemented (IT and metal sectors);
  
• 6 articles and reports about business opportunities in Lithuania were initiated and prepared (audience of 6.8 million).

Activity of LDA representative office in Belgium (LITBRE)

The office’s operations were performed in three strategic directions:

• Representation and protection of Lithuanian business interests on the EU level (Lithuanian business associations were represented in Pan-European organisations, a network of contacts in EU institutions was created, cooperation with representative offices of national business confederations of EU countries was conducted);
  
• Lithuanian businesses were encouraged to take an interest in EU matters (cooperation with national Lithuanian and industry branch associations in Lithuania was conducted, information to mass media was provided);
  
• Establishment of the efficient LITBRE structure (human resources increased, a management system created).

For more information about LDA projects and services, please contact LDA by telephone (+370 5) 262 7438 or by e-mail: info@lda.lt

To download Activity Report 2007 please click here (PDF).