In the first six months of the year, investments attracted 371.5 million euros. With the direct participation of the Latvian Investment and Development Agency (LIAA), 20 investment projects have already been approved this year, which will create 1,160 jobs, and the investment volume will reach 371.5 million euros.
Minister of Economics Ilze Indriksone: “For the implementation of the transformation of the Latvian economy, it is essential to have a business environment focused on growth and a well-thought-out investment attraction strategy so that entrepreneurs find Latvia appealing as a country to invest in high value-added production, innovations, and human capital. Therefore, together with LIAA, which plays a significant role in attracting foreign investments, we continue to improve initiatives for attracting strategic investors, considering both the improvement of regulatory regulation, the elimination of bureaucratic obstacles, and the recognizability and competitiveness of the national image. Thus, we will achieve faster economic activity, investment volumes will increase, and the number of new, well-paid jobs in the regions will also increase.”
The initiated investment projects represent sectors such as bioeconomy, ICT, photonics and smart materials, smart energy and mobility, as well as biomedicine. 12 of the investment projects started this year will be implemented in Riga and its surroundings, six in Kurzeme, and two in Latgale.
"The good news is that, despite the threat of recession, investor interest has not diminished and projects are being implemented. To strengthen our positions in attracting investments, the so-called “Green Corridor” regulation will be crucial, which envisages removing administrative barriers and accelerating the implementation of investment projects. The large investment program also makes a significant contribution, where it is possible to attract up to 10 million euros for the implementation of new investment projects through capital discounts," emphasizes LIAA director Kaspars Rožkalns.
Examples of investment projects started this year include the Italian family business "Marcegaglia", which purchased assets in Latvia from the sanctioned Russian company "Severstal Distribution" and plans to create 300 jobs. One of the world's largest biotechnology companies, "Roche Services & Solutions" (Switzerland), has opened a business service center in Riga, where it plans to create 200 new jobs. Meanwhile, in Liepaja, the company "I-Cotton" (Kazakhstan) has started expanding its factory, installing two new production lines. The investment amount in this project will reach 2 million euros. The company is the largest manufacturer of cotton products, wet wipes, and personal hygiene products in the European Union and CIS countries. Several solar and wind energy projects are also being developed, which will strengthen Latvia's energy independence.
The main obstacles mentioned by the investors themselves for greater investment inflow into the Latvian economy are the still unclear situation with energy resource prices, the attraction of qualified specialists from abroad, labor wage taxes, and bank credit policies.
In 2022, with the support of LIAA, 40 investment projects were implemented, creating 2,398 jobs, and the attracted investment amount will reach at least 473 million euros.
The information was translated using the ChatGPT service.