A member of Investors’ Forum – an association of the largest investors in Lithuanian economy – and a major investor in Lithuania, Philip Morris International has announced plans to implement a new EUR 40 million investment project in Klaipėda this year. Since 1994, the company has invested over 200 million euros in Lithuania. The Investors’ Forum is pleased with the consistent growth in foreign direct investment in the Lithuanian economy and urges the government to focus on improving the business climate in order to attract more investment of this kind.

“Investment projects of this scale show that Lithuania is an attractive country for international capital. A qualified workforce, a favourable geographical position, and developed infrastructure are among the advantages often mentioned by investors when referring to Lithuania. Still, in order to attract more of the largest foreign investors, we need to devote all our attention to improving the business climate by reducing red tape, increasing transparency, fighting the shadow economy, and improving the tax system and labour regulations, which could contribute to job creation. This must be one of the key national priorities for this year,” says Rolandas Valiūnas, the chairman of the board of the Investors’ Forum.

According to data from 2013, Lithuania has attracted around 12 720 billion euros in foreign direct investment since the restoration of independence. The volume of FDI has risen more than ten-fold since 1997 and has made a significant contribution to the general economic growth of the country.

“It is of utmost importance that we emphasize the importance of industrial development. The Government has clearly declared its determination to promote investment in production, especially in the sectors that create products with above-average added value. Lithuania needs new and well-paid jobs, oriented to a highly-skilled workforce,” commented Rūta Skyrienė, executive director of Investors’ Forum.

In her words, a number of goals and priorities aimed at boosting investment are clearly defined in the documents approved by the Government, including the Investment Promotion and Industrial Development Programme or the National Progress Programme 2014-2020; thus the next step is to move ahead with their implementation.

“The Investor Confidence Index for Lithuania (ICIL), compiled by the Investors’ Forum, reveals that the confidence of foreign companies in the Lithuanian economy is growing. At the end of 2014, more than half of investors were optimistic about increasing demand and as many as 39% mentioned plans to increase the number of their employees and capital investments. On the other hand, investors remain concerned about aspects such as the regulation of employment relations, the tax system, a lack of transparency and excessive business regulation.