Analytics, Economics, EU – Baltic States, Forum, Investments, Latvia, Markets and Companies

Photo: amcham.lv

A recent study conducted by the Foreign Investors Council in Latvia found that foreign investors in Latvia are mostly concerned about insufficient stability and transparency, also about the shadow economy, said Krols.

As for the positive factors, foreign investors mentioned low labor costs.

"The Latvian economy has decent potential overall, as several foreign investors said that they would be prepared to invest in Latvia again. In addition, a few investors said that they were ready to invest more in Latvia, but would not do this at the moment due to shortage of qualified workforce and because of political risk," said Krols.

Foreign investors are mostly interested in transparent political and judicial environment. Next are market size and growth potential, labor costs and other factors.

On the other hand, Cemex board member and strategic planning director, Eric Michael Trusiewicz, said that his company considered Latvia a safe place to do business. Latvia is also an attractive country for investment, because companies operating here have easy access to the Russian, Scandinavian and Baltic markets.

Trusiewicz also praised Latvia as a European Union member state, as this allowed the company to use one currency in its business in Europe, and one legal framework.

As for negative aspects affecting investment, Trusiewicz mentioned high energy costs in Latvia, shortcomings in the tax system, shadow economy, slow-paced and non-transparent judicial system, qualifications of labor force, and education.

Trusiewicz also spoke about the unwillingness of the state to bring order to a road section, about 30 kilometers, connecting Cemex quarry with the production facility – which had continued for almost eight years already. This section of the road is in very poor shape. Cemex has talked about the problem with the Transport Ministry, yet nothing has been done during all these years, said Trusiewicz.

The discussion about the competitiveness and investment environment in Latvia was held in Riga yesterday, organized by the American Chamber of Commerce in Latvia, Norwegian and Swedish chambers of commerce in Latvia, Stockholm School of Economics in Riga, and Rietumu banka.