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Business Profile
Economy: Lithuania has historically been the least developed of the Baltic republics, with a smaller industrial base and greater dependence on agriculture, prior to rapid industrialisation during the Soviet era. Sugar beet, cereals, potatoes and vegetables are the main crops. Electrical, electronic and optical goods and light machinery are the main industrial products. Food processing is also an important industry, with an ample supply of agricultural products from Lithuania’s own farming and fisheries sector and, more recently, from Russia. Timber production has expanded on the back of growing trade links with Scandanavia. Lithuania’s other major economic asset is the Baltic’s only naturally ice-free port (other than Kaliningrad) at Klaipeda. Lithuania is a founder member of the regional co-operation organisation for Baltic littoral states, the Council of Baltic Sea States. The Government has largely completed the dismantling of the old Soviet-style command economy, introducing a market system and liberalising foreign trade. Domestic political factors stalled some parts of the otherwise rapid privatisation programme, especially the key energy industries (which rely largely on raw materials from Russia) as well as the finance and banking sector. However, privatisation of the banking sector was completed in 2002 with the sale of the main agricultural bank; and the sale of most remaining state assets (mainly in the energy and transport sectors) scheduled for 2002. Lithuania’s trade patterns have gradually shifted during the 1990s towards the West, and the European Union now accounts for just under half of all Lithuanian trade. Some 30 per cent of import trade and 20 per cent of export trade is conducted with partners in the former Soviet Union, principally Russia and Latvia. Lithuania has recovered from the serious knock-on effects of the 1998 Russian financial crisis and is now experiencing steady growth of around six per cent annually. The country joined the IMF and World Bank in 1992, as well as the European Bank for Reconstruction and Development as a Country of Operation. A convertible currency, the Litas, was introduced in 1993. Lithuania is one of 13 countries in the queue to join the EU. Accession negotiations, which began in October 1999, have progressed well and Lithuania is one of ten (out of the 13) who may be able to join in 2004.
Business: Business is conducted in a fairly formal manner and a smart appearance is important. Appointments should be made in advance. English is used for international commerce. A knowledge of German, Russian or Polish may also be useful. Office hours: Mon-Fri 0900-1300 and 1400-1800.
Commercial Information: The following organisations can offer advice: Association of Lithuanian Chambers of Commerce and Industry, J Tumo-Vaizganto 9/1-63A, 2001 Vilnius (tel: (2) 612 102; fax: (2) 612 112; e-mail: info@chambers.lt; website: www.chambers.lt); or European Committee of the Government of the Republic of Lithuania, Gedimino 56, 2600 Vilnius (tel: (2) 661 700; fax: (2) 496 178; e-mail: mail@www.euro.lt; website: www.euro.lt).
Conferences/Conventions: A number of hotels in Vilnius have conference facilities and can organise conventions. Some rest homes in Palanga also provide facilities during the low season. For further information, contact the Lithuanian State Department of Tourism (see Contact Addresses section), the Lithuanian Hotel Association (see Accommodation section) or LITEXPO, Laisves pr 5, 2600 Vilnius (tel: (2) 454 500; fax: (2) 454 511; e-mail: info@litexpo.lt; website: www.litexpo.lt).
Copyright © 2003 Columbus Publishing Ltd.
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