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THE VOICE OF INTERNATIONAL LITHUANIA

28 April 2017
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Section 12: BUSINESS, ECONOMY – INVESTMENTS

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An old hospital is being turned
into a Tech Park in Vilnius
By Monika Poškaitytė
Communication Coordinator
Vilnius Tech Park
 
Lithuania aims to become a hotspot for startups in the region. Therefore, the old hospital buildings in the historical park of Sapiegos in Vilnius are about to become a park for entrepreneurial spirit, creativity and innovation. In Antakalnis district in Vilnius, close proximity to the city centre.

Two private investors, together with their partners, offered to municipality to lease the buildings for 25 years and invest nearly 8 m euro to the renovation of the heavily rundown buildings. The agreement has been made. While keeping their original looks and historical value (there are some fragments of decorated floors, etc. left that will be kept), the buildings are about to be reborn as 8 000 sq meter space for startups and related infrastructure.

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Category : Business, economy, investments / Front page

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cell

   It’s the economy, stupid *

   THE LITHUANIAN ECONOMY: INNOVATE OR DIE

    By Valdas (Val) Samonis , PhD, CPC

   RRU and INET, http://www.about.me/val.samonis

* When Bill Clinton ran for President in 1992, Democratic strategist James Carville famously posted a large sign in the campaign’s “war room” that read: “It’s the economy, stupid!” Carville wanted to remind his candidate and those working for him to keep their focus where he felt it belonged: the economy.

“DEDICATED TO THOSE WHOSE BLOOD AND BRAINS MADE FREE LITHUANIA POSSIBLE”

ABSTRACT. This paper takes a comparative policy look at the Lithuanian (LT) economy during the intellectually and practically interesting period (2000-2015) of the coincidence of a middle-income growth trap, that LT found itself in alongside other transition economies, and a policy response to the Great Financial Crisis (GFC) that started in 2008. The paper argues that the LT policy response (a radical and classical austerity) was wrong and unenlightened because it coincided with strong and continuing deflationary forces in the EU and the global economy which forces were predictable, given the right policy guidance. Those forces were caused primarily by high debts of the EU countries and the mismanagement of both monetary and fiscal policies of the Eurozone during the misguided efforts to get out of GFC by the EU. Also, the paper makes a point that LT austerity, and the resulting sharp drop in GDP and employment in LT, stimulated emigration of young people (and the related worsening of other demographics) which processes took huge dimensions thereby undercutting even the future enlightened efforts to get out of the middle-income growth trap by LT.  Consequently, the country is now on the trajectory (development path) similar to that of a dog that chases its own tail. A strong effort by new generation of policymakers is badly needed to jolt the country out of that wrong trajectory and to offer the chance of escaping the middle-income growth trap via innovations. The paper points to some useful if debatable characteristics of this future effort.…

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Category : Business, economy, investments

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Closer bilateral ties

China – Lithuania

image015 (1)CHINESE VICE PREMIER ZHANG GAOLI AND 
LITHUANIAN PRIME MINISTER ALGIRDAS BUTKEVICIUS

Zhang urged the two countries to further enhance mutual trust, and step up pragmatic cooperation.

Zhang said both sides should strive for breakthroughs in cooperation on major projects in infrastructure development and other areas. He said China is willing to participate in the construction of the Rail Baltic project in an appropriate form in a bid to complement each other and achieve mutual benefit and win-win situation.

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Category : Business, economy, investments

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What’s wrong with Europe
and how to fix it?


Valdas Samonis

Lithuania will hold the Presidency of the Council of the European Union in the second half of 2013, starting from the 1st of July. VilNews has on this background asked readers to annotate and analyze factors that have to do with Europe, the EU, the euro and Lithuania. This is one of the posts we have received.

An article by Valdas Samonis, PhD, CPC
The Web Professor of Global Management(SM)

Cutting through the EU bureaucratic gobbledygook
Part 2


The more I am into my research on my forthcoming book
"INSIDER CRONY SOCIALISM", the more I see the parallels
between the Gorbachev's USSR and Barroso's EU!

Collapsing EUSSR under Reformer Barrosov?
Pray that God gives more wisdom to European Leaders!

I have to admit it.

The more I am into my research on my forthcoming book "INSIDER CRONY SOCIALISM", the more I see the parallels between the Gorbachev's USSR and Barroso's EU!

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Category : Business, economy, investments

Over the past three years the share of EU citizens who want to be self-employed has fallen from 45% to 37%

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Brussels, Belgium — Over the past three years the share of European Union (EU) citizens who want to be self-employed has fallen from 45% to 37%, reports European Commission (EC). This year EC highlighted the need for more entrepreneurs in order to return the EU to economic growth and higher levels of employment.

However, historical, cultural and economic background of diverse European countries has significant effects on attitudes towards entrepreneurs in European countries. Lack of in-depth knowledge might determine future revival of entrepreneurship in Europe, reveals the study by Lithuanian Free Market Institute (LFMI) today presented in Brussels.

“It is a positive trend in Europe to turn to entrepreneurs and acknowledge their role in creating economic growth. Yet, without knowing the mistakes of the past, there is no future. This is especially important then considering New Member States, such as Lithuania or Bulgaria, which still carry a burden of post-communist past. Therefore, only full understanding of entrepreneurial situation per country can guarantee that necessary measures will be taken and they actually will give wanted results”, says Zilvinas Silenas, President of LFMI.

In line with the acknowledged need to revive entrepreneurial spirit of Europe, LFMI conducted an international in-depth study in two New EU Member States, Lithuania and Bulgaria, and for comparative reasons in two non-EU countries – Georgia and Kyrgyzstan. The aim of the current study was to determine attitudes towards entrepreneurs in countries sharing the same post-communist past and underlying historical, cultural and economic reasons of such attitudes.

How to get rid of the “exploiter” image of the entrepreneurs?

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Category : Business, economy, investments

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 American company opens agricultural plant in Vilnius district

Kinze Manufacturing Inc., the second largest planting and seeding equipment manufacturer in the United States, will open a production facility in Vilnius District along the highway to Druskininkai.  The facility will manufacture the company’s agricultural machinery product line, planters/seeders, to support its growing market in neighbouring countries including Russia, Ukraine, Czech Republic, Bulgaria and Hungary.  It will open in autumn 2013 and start with 10 employees. In a few years the manufacturer will eventually employ 250 welders, mechanics, CNC operators and other specialists in its Lithuanian operations. 

“This is our first plant abroad geared to increasing sales in Russia, Ukraine and the whole of the European Union,” commented Susanne Kinzenbaw Veatch, Vice President and Chief Marketing Officer of Kinze Manufacturing, Inc.  “We were looking to expand in Eastern Europe and were considering Slovakia, Poland or Lithuania. We chose Lithuania because the local workforce is undoubtedly productive and cost-effective. Also we were very impressed by the country’s long-standing manufacturing traditions and the degree to which public institutions were attentive to our business needs.”

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Category : Business, economy, investments

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Lithuania’s best future
lies in a Nordic union

“Russia can turn the lights out on Lithuania and the other two Baltic states any time it pleases. And they can't turn them back on without Russia’s permission. Not only does this small, central European nation, as well as its neighbors Latvia and Estonia, not have access to the Russian owned-switch, but, to a large extent, it also depends on energy supplies from Russia to power its electricity generating plants; power that is needed for energy and economic independence.  Lithuania as well as the other Baltic countries, being poor in energy resources, are facing a tough future and are seeking solutions.”

This was what Dr. Stan Backaitis wrote here in VilNews in 2011. We have also published articles stating that Lithuania’s dependence on Russia, to a certain degree also EU, should be reduced. We have stated that the neighbours to the north in many cases would be much more attractive partners.  

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Category : Business, economy, investments

New Lithuanian coins, of 1939-design, were bravely planned already in 1990

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Dear readers,

We are delighted and honored that Mr. Frank Passic of Michigan, USA, graciously continues to share with us his vast knowledge of Lithuanian numismatics. In this article he provides us with a very interesting look into how Lithuania already in April 1990 bravely started planning for the re-introduction of Litas as the nation’s currency.

Frank Passic of Albion, Michigan has collected, researched, and written about Lithuanian numismatics for many years. His educational displays of Lithuanian money have won numerous awards at state and national coin shows in the United States. Of Lithuanian heritage, his maternal grandparents emigrated from Lithuania to America just prior to World War I.

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Category : Business, economy, investments

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KAUNAS

IN FOCUS

24 NOV – 26 DEC 2012

 

Kaunas, Lithuania's second largest city and former capital, is receiving much attention in VilNews now as 2012 is coming to an end. We focus on history, business, culture, innovation, tourism and more. We would also like to hear from you who have your personal Kaunas story to tell...

Send us your Kaunas story!
editor@VilNews.com

 

  

Thinking of business?
Think Kaunas!

http://www.flora-and-sam.com/assets/MAPS/Map%20pictures/m%20Kaunas%20and%20Vilnius%20(current).JPG

Kaunas is situated at the crossing of the main Lithuanian roads, where two European transport corridors intersect. Another important feature of Kaunas' transport infrastructure is its International Airport, located 15 kilometres northwards from the City. The Airport borders with Kaunas Free Economic Zone, forming excellent infrastructure for logistics.

Kaunas is a city with diversified industry, but the main industries are electronics, engineering, metal processing, construction materials, chemical, food processing and textile industries.

Kaunas City is home to Kaunas University of Technology Regional Business Incubator, and two science and technology parks. Another exceptional feature of the City is a large number of small and medium enterprises and high-tech businesses. In year 2005 Kaunas City created 2318,6 million EUR of Gross Domestic Product (11,2 % of Lithuanian GDP). Moreover, Kaunas attracted 1082,6 million EUR of Foreign Direct Investments in year 2005. Such companies as Marzotto Group, Kraft Jacobs Suchard, YIT (Finnish construction company), Kesko Agro (Finland) have chosen Kaunas City as the best location for their investment.

Having a strong education basis such as Kaunas University of Technology, Vytautas Magnus University, Kaunas University of Medicine, etc., a number of colleges, and vocational schools, Kaunas City plays a major role in the economic development of the whole Region and the Country.

 

  

Kitron to invest in Kaunas
instead of China, Norway

One of the leading electronics manufacturing services suppliers in Scandinavia – Kitron – will expand its manufacturing facility in Lithuanian city Kaunas, and invest almost six million euros into this project, the Invest in Lithuania reports.

121114_kitron.jpg

The expansion strategy of the Norwegian company in Lithuania encompasses an increase in its production capacity, the creation of 60 new job openings and an improvement to the company's revenue by 40%, writes LETA/ELTA.

In Kaunas, Kitron already produces electronic control systems for high-speed rail vehicles and electric grass mowers, electronic circuits for ultrasound devices, scientific equipment for seabed research, mobile blood test devices, smart grid/automatic meter reading systems and other electronic equipment.

"To win this expansion project, Lithuania competed with the US, Norway and China, all of which are well-known to Norwegian investors as countries where they have already established manufacturing facilities. Our country [Lithuania] was chosen because of its convenient location for logistics, the low costs of labor, and the resources to ensure production quality. Since the Norwegian company also supplies its goods to the defense and medical equipment industries, qualitative criteria were important to the decision on location," said the Managing Director of Kitron Lithuania, Mindaugas Sestokas.

Kitron is also looking to install a new production line and to set up a warehouse for Kitron group suppliers. Such a storage facility would be in line with LEAN system management principles, i.e., advancing the efficiency of the management of manufacturing processes.

Additional 290,000 euros will be dedicated to shared value investments, i.e., corporate practices that do not only enhance the company's competitiveness, but also contribute to the social welfare, such as cooperation with educational or other institutions. The development of innovative products and prototypes in the new production line would call for electronic engineering competencies that are still barely nurtured in Lithuania. Therefore, the company is ready to strengthen its ties with local universities, in particular with the Kaunas University of Technology. This cooperation foresees the reinforcement of study programs and the advancement of the university’s technological research facilities.

Under the scheme of the European Union's financial instrument Invest LT +, which promotes foreign investments in high value-added manufacturing and services, the company will receive 1.3 million euros in financial support.

Kitron delivers product solutions to some very well-known companies around the globe, including the Swedish vehicle manufacturer and supplier Volvo, the international Canadian aviation and transport company Bombardier, as well as the biggest supplier worldwide of forestry and horticulture equipment Husqvarna.

 

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Category : Business, economy, investments

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Kaunas FEZ – the ideal
place for new business

Kaunas FEZ (Free Economic Zone) is a 534 ha industrial
development area which offers tax incentives.

Key advantages include:
· Considerable tax incentives;
· Excellent geographic location, coupled with high quality road and railroad connections;
· Adjacent to Kaunas Airport (at present 17 flight directions to the Western European Countries) ;
· Close to ice-free Klaipeda Seaport;
· Stable and constantly growing Lithuanian economy;
· Highly skilled and inexpensive workforce;
· Well developed infrastructure;
· Inconsiderable cultural and linguistic barrier;
· Good investment climate;
· Safety of business in the FEZ.

Watch presentation of the Kaunas FEZ:

http://www.ftz.lt/index.php/presentation/183?vid=60

For more information, see: www.ftz.lt

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Category : Business, economy, investments

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Electric cars made in Lithuania!


Kaunas electronics manufacturer ELINTA has come a long way in developing a new electric car here in Kaunas. These three gentlemen are behind the success: Dr. Vytautas Jokužis, Laurynas Jokužis and Dr. Vladas Lašas.

Since 1994 Elinta has also been selling products from some of the most advanced European companies. They were the first to bring the products of SIEMENS, PHOENIX CONTACT, and RITTAL to Lithuania.

With time Elinta gained significance in the field of Lithuanian industry automation. With the aim to optimise its performance ELINTA modernised its organisation by relocating different types of activities to secondary companies: UAB Elinvision, UAB Elintos matavimo sistemos, UAB Elinta VS.

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Category : Business, economy, investments

OPINIONS

Have your say. Send to:
editor@VilNews.com


    • Greeks won, Lithuanians lost!
      By Val Samonis

      Before they realized what is going on and who was robbing them, the Lithuanian people got clubbered by PM Kubilius’ ambitious austerity policy and the younger ones started emigrating in catastrophic numbers, seeing no future in the country whose GDP was reduced (from a low post-Soviet level) by some 20% by the combination of the old nomenklatura rent-seeking policies and the global Great Recession. Lithuania is hollowing out, unfortunately.

      Read more…
      Read more...

    • A far too bright picture of the present reality
      By Aage Myhre, Editor-in-Chief

      The above post from Val Samonis, where he compares “crisis-hit” Greece and a Lithuania supposed to be quickly recovering from the 2008 crisis, internationally praised for its austerity measures, calls for reflection.

      The difference is that while the people of Greece protest and angrily demonstrate in the streets of Athens, people here only become more and more bitter, emigrate, begets crime in other countries, etc. 

      Lithuania's elderly and disadvantaged people who have seen their minimum pensions drastically cut, and mothers seeing that the child benefits are completely removed as concept, they bow their necks and become even more active in growing potatoes on their garden spots outside the city instead of standing up against the government’s unfair measures against them... 

      This country's politicians claim they have been the smartest in ...
      Read more...

    • What is this country going to live on 20 years from now?

      Palle Gravesen Jensen.
      A Danish expat to Lithuania, owner of two manufacturing companies, Electronic House and Metalco Baltic. Member of the board of the Danish Chamber of Commerce (DCC) in Lithuania. His family was one of the three families founding the Vilnius International School.

      There are a number of issues to discuss with regards to Lithuania of today, the country I made my own 16 years ago, moving from my homeland Denmark.

      One particular question, however, comes to my mind again and again: What is this country going to live on 20 years from now. It is a big question. My concern is there will not be much at all if nothing is done immediately.
      Read more...

    • New Chairman of the Bank of Lithuania

      Vitas Vasiliauskas

      Friday the Seimas of the Republic of Lithuania decided to appoint Vitas Vasiliauskas as the Chairman of the Board of the Bank of Lithuania. The decision comes into force as of 16 April 2011.
      The current Chairman of the Board of the Bank of Lithuania Reinoldijus Šarkinas congratulated Vitas Vasiliauskas on this occasion.
      "I wished the new Chairman of the Board of the Bank of Lithuania all the best", said Reinoldijus Šarkinas.
      The Chairman of the Board of the Bank of Lithuania is appointed for a term of five years by the Seimas of the Republic of Lithuania upon nomination by the President. The number of the terms of office is not limited.
      Reinoldijus Šarkinas has been holding the position of the Chairman of the Board of the Bank of Lithuania since 15 February 1996. After the end of his term of office, the Seimas has authorised Reinoldijus Šarkinas to continue working as the Chairman of the Board of the Bank of Lithuania until 15 April 2011.
      Read more...

    • Independence day commemoration
      In connection to this year’s Lithuanian Independence Day, it might be of your interest to know that in 1938 there was printed an unissued ten litu banknote commemorating the 20th anniversary of Lithuanian independence 1918-1938.

      President Smetona and the Declaration of Independence is on the note’s face, and the Council of Lithuania is on the back. Smetona is interred in a mausoleum in Ohio.

      Submitted by Frank Passic, Albion, Michigan.
      Read more...



VilNews e-magazine is published in Vilnius, Lithuania. Editor-in-Chief: Mr. Aage Myhre. Inquires to the editorseditor@VilNews.com.
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