Translated using ChatGPT.
In 2024, with the involvement of the Latvian Investment and Development Agency (LIAA), 45 investment projects were initiated, totaling €655.4 million, with a planned creation of 2,023 jobs. This year, the largest projects focused on the development of high-value-added manufacturing, ICT, energy, and aviation sectors.
"This year has been challenging, influenced by the geopolitical situation and the weak growth of our main external economic partners. However, even under these circumstances, the investment outcome is 6% better than the previous year. This year, we reorganized LIAA and tripled the number of people working on attracting investments. Therefore, we look to the future with optimism and aim to increase the volume of attracted investments to €1 billion annually within five years,” emphasizes LIAA Deputy Director Laura Strovalde. She adds that the total LIAA investment portfolio currently includes 166 projects with a combined investment value of €10.8 billion.
Due to climate change, more investors are focusing on environmentally friendly projects, including renewable energy, circular economy, and sustainable manufacturing initiatives. This aligns with LIAA's defined priorities in investment attraction, which focus on knowledge-intensive sectors with a broader economic impact. “We are ready to work with any significant investment project, but we will proactively focus on areas that contribute most to our economic development, such as energy. Regarding EU and global goals for emission reduction, the availability of green energy is one of the main prerequisites for the development of manufacturing and other sectors,” explains L. Strovalde.
Significant Investment Projects
Among the implemented investment projects, "Asns Ingredient" stands out, which has begun constructing a pea protein isolate production facility in Jelgava, planning to invest €114 million. Meanwhile, the company "Golden Fields Factory LV" opened a protein production facility in Liepāja this summer, investing €16 million and planning to process 50,000 tons of legumes annually. The business services sector continues to develop as well. A notable example is the technology company "Tech Mahindra," which has opened its office in Riga and plans to create 500 jobs. Additionally, "Norse Atlantic Airways," which operates flights from Europe to the USA and other destinations, has announced its entry into Latvia. The airline will open a business service center in Riga and is considering other development directions.
Role of LIAA Economic Representations in Investment Attraction
Some investment projects were realized with the involvement of LIAA's economic representations abroad. Overall, LIAA has economic representations in 20 countries, with a growing emphasis on investment outcomes. In the field of investment attraction, special focus will be placed on Norway, Germany, Sweden, and the USA, with two representatives working in each of these countries. New representations will be established in Spain and Indonesia in 2025. Decisions about new representations are made in consultation with business organizations and by analyzing data on Latvia's foreign trade trends.
The coming year highlights positive trends in investment attraction. As tariff wars between major powers continue, there are opportunities to approach manufacturers who, due to increasing risks, are reluctant to move to Asia. There are also broad opportunities in the USA, where companies, as they grow, are looking for their bases in Europe. Several municipalities are currently developing their industrial parks, which will facilitate the inflow of investments. Overall, 2025 is forecasted to bring moderate economic growth in Latvia, which is a positive signal for investors.
Focus on Strategically Important Projects
"This year, we have also started work on several large-scale projects, such as the development of the biorefinery plant 'Fibenol' in Valmiera. Other major projects include the offshore wind park 'Elwind,' the hydrogen-powered aircraft project 'Fokker Next Gen,' and others. Therefore, we plan to divide our work into two segments – part of the investment attraction specialists will work proactively to approach new clients, while the rest will focus on the projects already in our portfolio and companies already operating in Latvia, as up to 60-70% of investments are made in companies already established here,” says L. Strovalde.
Regional and Sectoral Distribution
Of the 45 projects implemented this year, 21 are located in Riga, three in the Riga region, 12 in Kurzeme, four in Latgale, three in Vidzeme, and two in Zemgale. The represented sectors include ICT (11 projects), bioeconomy (9), smart energy (7), photonics and smart materials (7), biomedicine (2), and other sectors (9).
LIAA's strategic goals for the period 2023–2025 are to attract investments amounting to €1 billion, ensuring the creation of 7,500 new jobs. In 2025, LIAA's target for foreign investment attraction is €790 million.