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Lithuania's ICT Potential
GENERAL INFORMATION ABOUT LITHUANIA
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Population: 3.5 mln.
Area: 65,300 sq. km
Language:
Lithuanian
Neighbours:
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Latvia
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Poland
Belarus
Russia
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WHY SHOULD YOU CHOOSE LITHUANIA AS A TRUSTED
PARTNER?
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One of the fastest growing economy in Europe
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One of the lowest corporate tax rates in Europe
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European Union oriented export
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High level of education
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Excellent infrastructures
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Stable legislative system
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Modern project management
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European business culture
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LITHUANIAN ICT SECTOR
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ICT sector compounds 8% of the Lithuanian GDP (2004)
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About 500 of ICT and electronics companies
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15 000 high qualification specialists employed in the sphere
of the information technologies alone.
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International recognition – in 2004 more than 40 Lithuanian
ICT companies exported their products and solutions to the
EU, USA, Asian and CIS countries.
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LITHUANIA’S ICT MARKET TRENDS
2004 year Lithuanian ICT market size
Total – appr. 1 237 million Eur.
Note: Data on communication equipment and complex IT
solutions market are tentative and approximate.
IT – appr.
Million Euro
300
327
610
Communications – appr.
Communication equipment,
other IT services and
complex solutions – appr.
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LITHUANIA’S ICT MARKET SIZE (2004)
In 2004, the ICT sector compounded 8 % of the Lithuanian GDP
17,50%
7,70%
6,60%
Services
Production
1,40%
2004
2015
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LITHUANIA’S ICT STRENGTHS
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The strongest ICT association
Infobalt in the region
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Baltic IS Cluster initiative
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Bridge between East and West
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Knowledge Economy Forum, the
cooperation between science and
High-tech industry
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Copyright agencies to protect IPR
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TAXES IN LITHUANIA
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Profit tax
15%
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Dividends
15%
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VAT
18%
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Loss Carry-Forward
up to 5 years
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CORPORATE TAX COMPARISON (%, 2004)
35
31
30
23,5
25
20
15
18
25
25
25
26
27
19
15
10
5
0
Lithuania
Hungary
Latvia
Bulgaria
Romania
Slovakia
Slovenia
Estonia
Poland
Czech
Rebublic
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LITHUANIA IS BECOMING AN EXPORT ECONOMY (2004)
General
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Exports to the EU & other countries – 81%
Exports to Russia & CIS – 19%
Exports increased by 10.7%
Exports as % of GDP – 40%
ICT
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Lithuanian TOP 10 IT companies exports increased from 40
to 80 percent in 2004
Export of IT services in 2003 – about 45 million Euros
The main Lithuanian ITT export markets: Germany, Russia,
Belarus, Finland, Denmark, USA, and Latvia
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GOVERNMENT SUPPORT
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National agreement: all political parties have reached
consensus on knowledge economy as priority for country
development
Long term strategy for economy development: knowledge
economy priority(government declared knowledge economy
as priority for country development)
LITHUANIA R&D
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About 500 ICT specialists are employed in Lithuanian or
foreign ICT companies every year
Lithuania’s ICT businesses and the Government have
initiated a program of investment into R&D seeking to
achieve that by 2008 up to 2.5-3 percent of State budget
funds are allocated for R&D projects and enlargement of the
related scope of work
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LITHUANIA ICT INFRASTRUCTURE
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Location between the EU, Nordics, Belarus & Russia
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Modern telecom infrastructure with a digitalisation ratio of
100%
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In 2004, the penetration of mobile telecommunications
reached 95% of Lithuanian population
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National broadband program 2004 - 2007
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Internet penetration growth >100% in 2002 - 2003
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The biggest ICT Exhibition in Baltic states (>215 exhibitors
from >20 countries, >65000 visitors)
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LEGAL INFORMATION
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Law on Electronic Signatures
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Law on Copyright and Related Rights
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Law on Personal Data Protection
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Law on electronic communications
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Telecommunication market de-monopolised since 2003
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CULTURAL COMPATIBILITY AND LANGUAGES
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Northern Europe culture
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European business ethics
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Very quality conscious
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Versatile in English, Russian, German and Polish
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Good understanding of eastern neighbors culture
mentality(Russia, Ukraine, Belarus)
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INFOBALT MISSION:
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To achieve that the Lithuanian ICT business corporations take
the leading position among the providers of ICT service in
Europe
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To unite Lithuanian export-oriented ICT companies and to act
as a single representative
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To populate Lithuanian ICT industry and name
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To increase part of information technologies in Lithuania’s
export and GNP
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To propagate international collaboration, implementation of
modern standards and technologies
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THANK YOU FOR ATTENTION!
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More information:
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www.outsource2lithuania.com
www.infobalt.lt
Office:
Vokiecių g. 28/17-16,
Vilnius 01130, Lithuania
Tel: +370 5 2622623
[email protected]
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Contact person:
Nikolaj Goranin
Mob: +370 6 9817036
[email protected]
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