The decision by automotive industry supplier Aumovio (formerly Continental) to withdraw from Lithuania is a serious signal warning of the country’s declining competitiveness and challenges in the investment environment. This is how the association Investors’ Forum, which unites the largest and most active investors in Lithuania’s economy, evaluates the publicly reported information about the company’s plans. According to the association, if the state does not take consistent steps to improve the investment climate, the risk increases that other companies may make similar decisions.
“Today we learned about the decision to gradually close the Kaunas plant with around 800 employees by mid-2028. Undoubtedly, there were many reasons for this, but we must ask ourselves whether we did everything to ensure a different decision regarding the Lithuanian unit. It is important to acknowledge that we have received a clear warning – if Lithuania wants to retain investors and well-paid jobs, we must consistently strengthen our competitiveness. Investments increase not only people’s incomes but also the security of the entire state,” says Rolandas Valiūnas, Chairman of the Board of Investors’ Forum.
Decisions made in Lithuania also have an impact
He emphasizes that investors in Lithuania create high value-added jobs, pay competitive salaries, and contribute to the country’s economic growth. However, their decisions are primarily driven by the ability to operate profitably.
“Although challenges in the investment environment are often linked to geopolitical risks, decisions made in Lithuania also have a significant impact. Tax increases, the cancellation of the direct flight to London City, and pension, healthcare, and other reforms that have been critically assessed by the business community all contribute to a weakening overall investment climate. Understandably, each of these factors alone may not seem critical, but their combined effect can make operating in Lithuania less profitable or even unprofitable, encouraging companies to reassess their activities or make decisions to scale down or close operations,” emphasizes R. Valiūnas.
According to the association, one of the state’s key objectives should be to ensure a competitive and profitable business environment. Investors’ Forum stresses that the situation can be improved, but this requires consistent and clear decisions.
Calls for immediate action
First, it is necessary to restore trust between the state and business – decisions should be made by listening to the business community and assessing their impact on investments. It is equally important to increase the efficiency of the public sector – reducing bureaucracy, ensuring faster decision-making, and focusing on real results rather than processes.
It is also essential to address challenges in the education system. While Lithuania has strong potential in early education, it is not always maintained in later grades. Businesses need highly qualified specialists, so the education system must ensure real skills, not just formal outcomes.
Ensuring a stable and competitive tax environment is also crucial – clarity and predictability are among the key factors in investment decisions.
Finally, Lithuania must compete more actively for investments by leveraging its existing advantages and purposefully attracting new projects.
“Even a small increase in productivity has a significant impact on the economy – an additional 1% growth can generate around EUR 800 million in value. Meanwhile, the withdrawal of even a few large investors can mean hundreds of millions of euros in lost investment and lower budget revenues. Therefore, the goal of making Lithuania the most attractive country in Europe for investment should be a priority not only for business representatives but for the entire state,” emphasizes R. Valiūnas.
Investors’ Forum brings together the largest and most active investors in Lithuania. The organization’s goal is to improve the investment environment in Lithuania, aiming for greater competitiveness, economic growth, and overall prosperity.