During the period that Lithuania has been an independent country, about twenty industrial and logistics parks have been completed or are under development. The primary goal of these parks have been to attract green-field investments to the Lithuanian market, to simplify the entry of new industrial companies into the Lithuanian market, to create new jobs and to develop new high-tech industries. It has been vital to understand that attractiveness to foreign investment highly depends on:
- Land plots with infrastructure
- Favorable conditions for business development, such as low entrance fees
- Highly qualified labor
- A favorable tax system
- A government strategy on how to attract investments
Engines of Lithuania‘s attractiveness are competitive business costs, excellent infrastructure for industry, qualified labor.
There are a couple of successfully operating industrial sectors in Lithuania, for instance the energy industry, where new projects attract the attention of private investors. The wood and furniture industry is one of the most active in foreign markets and uses maximum of the Lithuanian business advantages. The food industry, having local resources and very good renovated facilities, represents a significant share of Lithuania's exports.
It is obvious that all the conditions for the development of industrial sector are positive, however existing industrial parks attract a relatively low number of new clients. Foreign investors demand more premises for lease, but unfortunatelly such space is not completed. Lithuanian companies tend to have their own premises, and manufacturers with specific requirements for premises are investing themselves and often with EU support. Recently opened new factories are mainly located outside industrial parks area. Are there any reasons for such decisions? Well, manufacturing companies already have land plots for construction of new facilities. Also, due to expansion/renovation of existing factories new territories remain undeveloped.
One of the good idea on how to facilitate the search for investors would be to grant free economic zone status for the currently municipal-owned industrial parks. Hereby, the regions would become more attractive for investments. Prolonged favorable business conditions, a more aggressive presentation of Lithuania on international markets and a search of new niches would definitely grant a success.