UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT INVESTMENT COUNTRY PROFILES LITHUANIA. October 2011

Transcription

1 UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT INVESTMENT COUNTRY PROFILES LITHUANIA October 2011

2 i NOTE The Division on Investment and Enterprise of UNCTAD is a global centre of excellence, dealing with issues related to investment and enterprise development in the United Nations System. It builds on three and a half decades of experience and international expertise in research and policy analysis, intergovernmental consensus building, and provides technical assistance to developing countries. The terms country/economy as used in this investment country profile also refer, as appropriate, to territories or areas; the designations employed and the presentation of the material do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. In addition, the designations of country groups are intended solely for statistical or analytical convenience and do not necessarily express a judgment about the stage of development reached by a particular country or area in the development process. The major country groupings used in this investment country profile follow the classification of the United Nations Statistical Office. These are: Developed countries: the member countries of the OECD (other than Chile, Mexico, the Republic of Korea and Turkey), plus the new European Union member countries which are not OECD members (Bulgaria, Cyprus, Latvia,, Malta, and Romania), plus Andorra, Liechtenstein, Monaco and San Marino. Transition economies: South-East Europe and the Commonwealth of Independent States. Developing economies: in general all economies not specified above. For statistical purposes, the data for China do not include those for Hong Kong Special Administrative Region (Hong Kong SAR), Macao Special Administrative Region (Macao SAR) and Taiwan Province of China. Reference to companies and their activities should not be construed as an endorsement by UNCTAD of those companies or their activities. The boundaries and names shown and designations used on the maps presented in this publication do not imply official endorsement or acceptance by the United Nations. The following symbols have been used in the tables: Two dots (..) indicate that data are not available or are not separately reported. Rows in tables have been omitted in those cases where no data are available for any of the elements in the row; A dash ( ) indicates that the item is equal to zero or its value is negligible; A blank in a table indicates that the item is not applicable, unless otherwise indicated; A slash (/) between dates representing years, e.g., 1994/95, indicates a financial year; Use of an en dash ( ) between dates representing years, e.g., , signifies the full period involved, including the beginning and end years; Reference to dollars ($) means United States dollars, unless otherwise indicated; Annual rates of growth or change, unless otherwise stated, refer to annual compound rates; Details and percentages in tables do not necessarily add up to totals because of rounding. Only tables shaded in the Table of Contents are available in this investment country profile. The material contained in this study may be freely quoted with appropriate acknowledgement. Exchange rates, Litas per US dollar Period average End of period

3 ii Table of Contents Page Highlights... A. Definitions and sources of data... B. Statistics on FDI and the operations of TNCs (shaded rows show available tables)... Table 1. Summary of FDI... 3 Table 2. Summary of international production... 3 Table 3. FDI flows, by type of investment... 4 Table 4. FDI stocks, by type of investment... 5 Table 5. FDI flows in the host economy, by industry... 6 Table 6. FDI flows in the host economy, by geographical origin... 7 Table 7. FDI flows in the host economy, by industry and geographical orign... Table 8. FDI flows abroad, by industry... 8 Table 9. FDI flows abroad, by geographical destination... 9 Table 10. FDI flows abroad, by industry and geographical destination... Table 11. FDI stocks in the host economy, by industry Table 12. FDI stocks in the host economy, by geographical origin Table 13. FDI stocks in the host economy, by industry and geographical orign... Table 14. FDI stocks abroad, by industry Table 15. FDI stocks abroad, by geographical destination Table 16. FDI stocks abroad, by industry and geographical destination... Table 19. The number of home-based TNCs, by industry in the home economy... Table 20. The number of foreign affiliates of home-based TNCs, by industry abroad Table 21. The number of foreign affiliates of home-based TNCs, by geographical location abroad Table 22. The number of affiliates of foreign TNCs in the host economy, by industry Table 23. The number of affiliates of foreign TNCs in the host economy, by geographical origin Table 26. Assets of home-based TNCs, by industry in the home economy... Table 27. Assets of foreign affiliates of home-based TNCs, by industry abroad... Table 28. Assets of foreign affiliates of home-based TNCs, by geographical location abroad... Table 29. Assets of affiliates of foreign TNCs in the host economy, by industry... Table 30. Assets of affiliates of foreign TNCs in the host economy, by geographical origin... Table 31. Employment of home-based TNCs, by industry in the home economy... Table 32. Employment of foreign affiliates of home-based TNCs, by industry abroad Table 33. Employment of foreign affiliates of home-based TNCs, by geographical location abroad Table 34. Employment of affiliates of foreign TNCs in the host economy, by industry Table 35. Employment of affiliates of foreign TNCs in the host economy, by geographical origin Table 36. Wages and salaries of home-based TNCs, by industry in the home economy... Table 37. Wages and salaries of foreign affiliates of home-based TNCs, by industry abroad... Table 38. Wages and salaries of foreign affiliates of home-based TNCs, by geographical location abroad... Table 39. Wages and salaries of affiliates of foreign TNCs in the host economy, by industry Table 40. Wages and salaries of affiliates of foreign TNCs in the host economy, by geographical origin Table 41. Sales of home-based TNCs, by industry in the home economy... Table 42. Sales of foreign affiliates of home-based TNCs, by industry abroad Table 43. Sales of foreign affiliates of home-based TNCs, by geographical location abroad Table 44. Sales of affiliates of foreign TNCs in the host economy, by industry Table 45. Sales of affiliates of foreign TNCs in the host economy, by geographical origin Table 46. Value added of home-based TNCs, by industry in the home economy... Table 47. Value added of foreign affiliates of home-based TNCs, by industry abroad... Table 48. Value added of foreign affiliates of home-based TNCs, by geographical location abroad... Table 49. Value added of affiliates of foreign TNCs in the host economy, by industry Table 50. Value added of affiliates of foreign TNCs in the host economy, by geographical origin Table 51. Profits of home-based TNCs, by industry in the home economy... Table 52. Profits of foreign affiliates of home-based TNCs, by industry abroad... Table 53. Profits of foreign affiliates of home-based TNCs, by geographical location abroad... Table 54. Profits of affiliates of foreign TNCs in the host economy, by industry... Table 55. Profits of affiliates of foreign TNCs in the host economy, by geographical origin... Table 56. Exports of home-based TNCs, by industry in the home economy... Table 57. Exports of foreign affiliates of home-based TNCs, by industry abroad

4 iii Table of Contents (continued) Page Table 58. Exports of foreign affiliates of home-based TNCs, by geographical location abroad... Table 59. Exports of affiliates of foreign TNCs in the host economy, by industry... Table 60. Exports of affiliates of foreign TNCs in the host economy, by geographical origin... Table 61. Imports of home-based TNCs, by industry in the home economy... Table 62. Imports of foreign affiliates of home-based TNCs, by industry abroad... Table 63. Imports of foreign affiliates of home-based TNCs, by geographical location abroad... Table 64. Imports of affiliates of foreign TNCs in the host economy, by industry... Table 65. Imports of affiliates of foreign TNCs in the host economy, by geographical origin... Table 66. R&D of home-based TNCs, by industry in the home economy... Table 67. R&D of foreign affiliates of home-based TNCs, by industry abroad... Table 68. R&D of foreign affiliates of home-based TNCs, by geographical location abroad... Table 69. R&D of affiliates of foreign TNCs in the host economy, by industry... Table 70. R&D of affiliates of foreign TNCs in the host economy, by geographical origin... Table 71. Employment in R&D of home-based TNCs, by industry in the home economy... Table 72. Employment in R&D of foreign affiliates of home-based TNCs, by industry abroad... Table 73. Employment in R&D of foreign affiliates of home-based TNCs, by geographical location abroad... Table 74. Employment in R&D of affiliates of foreign TNCs in the host economy, by industry... Table 75. Employment in R&D of affiliates of foreign TNCs in the host economy, by geographical origin... Table 76. Royalty receipts of home-based TNCs, by industry in the home economy... Table 77. Royalty receipts of foreign affiliates of home-based TNCs, by industry abroad... Table 78. Royalty receipts of foreign affiliates of home-based TNCs, by geographical location abroad... Table 79. Royalty receipts of affiliates of foreign TNCs in the host economy, by industry... Table 80. Royalty receipts of affiliates of foreign TNCs in the host economy, by geographical origin... Table 81. Royalty payments of home-based TNCs, by industry in the home economy... Table 82. Royalty payments of foreign affiliates of home-based TNCs, by industry abroad... Table 83. Royalty payments of foreign affiliates of home-based TNCs, by geographical location abroad... Table 84. Royalty payments of affiliates of foreign TNCs in the host economy, by industry... Table 85. Royalty payments of affiliates of foreign TNCs in the host economy, by geographical origin... Table 86. Largest home-based TNCs... Table 87. Largest foreign affiliates of homebased TNCs Table 88. Largest affiliates of foreign TNCs in the host economy... 31

5 1 Highlights has attracted relatively modest foreign direct investment (FDI) flows, despite its membership in the European Union (EU). At the end of 2010, its inward FDI stock totalled 35 billion Litas (LTL) ($13.4 billion). Similarly to Latvia, but unlike Estonia, the outward FDI stock was very small (LTL 5.5 billion i.e. $2.1 billion). Before surging in 2006 as a result of the sale of the Mazeikiu Nafta refinery to PKN Orlen (Poland), FDI inflows were fluctuating in the 2000s, reflecting privatization trends. While the rise in greenfield projects and reinvested earnings kept FDI inflows above $2 billion in , they declined significantly (by 91 per cent) in 2009, as the country suffered from the global crisis. In 2010, FDI recovered slightly reaching LTL 1.6 billion ($629 million). Outward FDI flows have been modest and in 2010 followed a downward trend, declining to LTL 334 million ($128 million). The EU countries of Poland, Sweden, Denmark and Germany, in that order, account for the bulk of the inward FDI stock in. Investment from the two other Baltic States, Latvia and Estonia has recently grown rapidly. The lion's share of FDI outward stock is directed to EU countries, while close to one quarter is in the CIS (the Russian Federation, Ukraine and Belarus, in that order). In 2010 the services sector, including telecommunications, real estate and finance, accounted for almost 70 per cent of the inward FDI stock of. In variation from the two other Baltic States, 29 per cent of the inward FDI stock was in manufacturing, although down from 40 per cent in The outward FDI stock is mainly in the services sector, which accounted for 85 per cent of the total in In 2009, more than 126,000 people were employed in the 2,685 foreign affiliates registered in the country; their sales reached LTL 72 billion ($28 billion) and their value added almost LTL 10 billion ($4.1). n TNCs had only 438 affiliates abroad, employing 24,614 people. A. Definitions and sources of data Data on FDI in are reported by the Bank of and the Department of Statistics of the Government of. Since regained its independence in 1990, market-oriented reforms were implemented to encourage foreign investment. The introduction of a new currency (the litas) in 1994, (which was pegged to the United States dollar and from 2002 to the euro) and the restructuring of the banking system created a stable and favourable business climate since The country joined the European Union in The n Development Agency, a non-governmental body, acts as a one-stop shop to foreign investors that provides information on investment opportunities, procedures and conditions, business and legal environment, and helps them to identify joint venture partners for project implementation. According to the Law on Investment, there is no special permit required from the authorities to invest foreign capital and there are no limitations to foreign ownership. Protection against expropriation is available, and guarantee of unrestricted transfer of invested capital and profits is provided. Foreign nationals have the right to open foreign currency accounts in any local bank. The investment of foreign-origin capital, movable or immovable assets, and intellectual or industrial property is considered as FDI. Foreign investors may be foreign persons or entities, persons without citizenship permanently living abroad, foreign states and international organizations. They must set up subsidiaries, or engage in any of the following forms of business: sole trader, partnership, public private stock company,

6 2 cooperative society and company. Prior to operating a business, registration has to be made with the Ministry of Economy and the business name recorded at the State Patent Bureau. The Bank of is, however, responsible for the registration of foreign banks or branches. Corporate income tax and personal income tax are at a flat rate of 15 per cent while the VAT rate is currently set at 21 per cent. Data reported by the Bank of are in accordance with the methodology set out in the Balance of Payments Manual, 5th edition, of the International Monetary Fund, and FDI definitions used by the OECD Benchmark Definition of Foreign Direct Investment. They reflect an ownership of 10 per cent or more of a foreign investor in ordinary shares, or voting rights, of an incorporated or unincorporated company. FDI comprises not only the primary investment, but also all subsequent transactions between the direct investor and the direct investment company. The components of FDI capital are equity capital (shares valued at market prices), reinvested earnings and other capital (intra-company loans). Breakdown of flow and stock data, by components, are available. Inward and outward investment data, both by geographical and industrial sector breakdown, are also available and presented in this country profile.

7 3 B. Statistics on FDI and the operations of TNCs Table 1. Summary of FDI (Millions of Litas and percentage) Variable Inward Outward 1. FDI flows, (annual average) FDI flows as a percentage of GFCF, (annual average) FDI stocks, FDI stocks as a percentage of GDP, Source : Based on tables 3, 4 and UNCTAD, FDI/TNC database. Variable Table 2. Summary of international production, 2009 (Millions of Litas and number) Homebased TNCs (Parent) Affiliates of foreign TNCs in a Foreign affiliates of home-based TNCs abroad Number Assets Employees (thousands) Wages and salaries Sales Value added Exports Imports R&D expenditures Based on tables 21,23,33,35,40,43,45 and 50. a Data on foreign affilitates in refer to 2008.

8 4 Table 3. FDI flows, by type of investment Inward investment Outward investment Reinvested Reinvested Year Equity earnings Other Total Equity earnings Other Total Source : UNCTAD FDI/TNC database, based on data from the Bank of. Note : Data are shown in millions of dollars prior to 1997.

9 5 Table 4. FDI stocks, by type of investment Inward investment Outward investment Equity & Equity & Reinvested Reinvested Year earnings Other Total earnings Other Total Source : UNCTAD FDI/TNC database, based on data from the Bank of. Note : Data are shown in millions of dollars prior to 1997.

10 6 Table 5. FDI flows in the host economy, by industry, Sector / industry Total Primary Agriculture, hunting, forestry and fishing Mining, quarrying and petroleum Mining and quarrying Extraction of crude petroleum and natural gas Secondary Food, beverages and tobacco Textiles, clothing and leather Wood and wood products Coke, petroleum products and nuclear fuel Chemicals and chemical products Rubber and plastic products Metal and metal products Machinery and equipment Electrical and electronic equipment Office, accounting and computing machinery Radio, television and communication apparatus Precision instruments Motor vehicles and other transport equipment Motor vehicles, trailers and semi-trailers Other transport equipment Other manufacturing Tertiary Electricity, gas and water Construction Trade Hotels and restaurants Transport, storage and communications Transport and storage Land transport Water transport Air transport Supporting and auxilary transport activities Post and communications Post and courier activities Telecommunications Finance Financial Intermediation Monetary intermediation Other financial intermediation Insurance and Pension Funding Activities Auxiliary to Financial Intermediation Business activities Real estate Rental Activities Computer and related activities Research and development Other business activities Other services Private buying and selling of property Unspecified Source : UNCTAD FDI/TNC database, based on data from the Bank of.

11 7 Table 6. FDI flows in the host economy, by geographical origin, Region / economy Total world Developed countries Europe European Union Austria Belgium Bulgaria Cyprus Czech Republic Denmark Estonia Finland France Germany Hungary Ireland Italy Latvia Luxembourg Malta Netherlands Poland Slovakia Spain Sweden United Kingdom Other developed Europe Iceland Norway Switzerland North America Canada United States Other developed countries Australia Bermuda Israel Japan Developing economies Africa Latin America and the Caribbean South and Central America Brazil Mexico Panama Caribbean British Virgin Islands Cayman Islands Asia West Asia Saudi Arabia Turkey South, East and South-East Asia China India Oceania South-East Europe and CIS South-East Europe Bosnia and Herzegovina CIS Russian Federation Unspecified Source : UNCTAD FDI/TNC database, based on data from the Bank of.

12 8 Table 8. FDI flows abroad, by industry, Sector / industry Total Primary Agriculture, hunting, forestry and fishing Secondary Food, beverages and tobacco Textiles, clothing and leather Wood and wood products Coke, petroleum products and nuclear fuel Chemicals and chemical products Rubber and plastic products Metal and metal products Machinery and equipment Electrical and electronic equipment Precision instruments Other manufacturing Tertiary Electricity, gas and water Construction Trade Hotels and restaurants Transport, storage and communications Transport and storage Land transport Water transport Supporting and auxilary transport activities Post and communications Telecommunications Finance Financial Intermediation Monetary intermediation Other financial intermediation Activities Auxiliary to Financial Intermediation Business activities Real estate Rental Activities Computer and related activities Other business activities Other services Private buying and selling of property Unspecified Source : UNCTAD FDI/TNC database, based on data from the Bank of.

13 9 Table 9. FDI flows abroad, by geographical destination, Region / economy Total world Developed countries Europe European Union Austria Belgium Bulgaria Cyprus Czech Republic Denmark Estonia Finland France Germany Hungary Ireland Italy Latvia Netherlands Poland Portugal Romania Slovakia Slovenia Spain Sweden United Kingdom Other developed Europe Iceland Norway Switzerland North America Canada Developing economies Latin America and the Caribbean South America Argentina Central America Panama Asia South, East and South-East Asia China South-East Europe and CIS South-East Europe Bosnia and Herzegovina Croatia Serbia CIS Belarus Kazakhstan Kyrgyzstan Moldova, Republic of Russian Federation Tajikistan Turkmenistan Ukraine Uzbekistan Source : UNCTAD FDI/TNC database, based on data from the Bank of.

14 10 Table 11. FDI stocks in the host economy, by industry, Sector / industry Total Primary Agriculture, hunting, forestry and fishing Mining, quarrying and petroleum Mining and quarrying Extraction of crude petroleum and natural gas Secondary Food, beverages and tobacco Textiles, clothing and leather Wood and wood products Coke, petroleum products and nuclear fuel Chemicals and chemical products Rubber and plastic products Metal and metal products Machinery and equipment Electrical and electronic equipment Office, accounting and computing machinery Radio, television and communication apparatus Precision instruments Motor vehicles and other transport equipment Motor vehicles, trailers and semi-trailers Other transport equipment Other manufacturing Tertiary Electricity, gas and water Construction Trade Hotels and restaurants Transport, storage and communications Transport and storage Land transport Water transport Air transport Supporting and auxilary transport activities Post and communications Post and courier activities Telecommunications Finance Financial Intermediation Monetary intermediation Other financial intermediation Insurance and Pension Funding Activities Auxiliary to Financial Intermediation Business activities Real estate Rental Activities Computer and related activities Research and development Other business activities Other services Private buying and selling of property Unspecified Source : UNCTAD FDI/TNC database, based on data from the Bank of.

15 11 Table 12. FDI stocks in the host economy, by geographical origin, Region / economy Total world Developed countries Europe European Union Austria Belgium Cyprus Czech Republic Denmark Estonia Finland France Germany Hungary Ireland Italy Latvia Luxembourg Malta Netherlands Poland Slovakia Sweden United Kingdom Other developed Europe Iceland Norway Switzerland North America Canada United States Other developed countries Israel Japan New Zealand Developing economies Africa Latin America and the Caribbean South and Central America Belize Mexico Panama Caribbean British Virgin Islands Asia and Oceania Asia West Asia Saudi Arabia Turkey United Arab Emirates South, East and South-East Asia China India Korea, Republic of Thailand Oceania South-East Europe and CIS South-East Europe CIS Belarus Russian Federation Ukraine Unspecified Source : UNCTAD FDI/TNC database, based on data from the Bank of.

16 12 Table 14. FDI stocks abroad, by industry, Sector / industry Total Primary Agriculture, hunting, forestry and fishing Mining, quarrying and petroleum Secondary Food, beverages and tobacco Textiles, clothing and leather Wood and wood products Publishing and printing Coke, petroleum products and nuclear fuel Chemicals and chemical products Rubber and plastic products Non-metallic mineral products Metal and metal products Machinery and equipment Electrical and electronic equipment Office, accounting and computing machinery Radio, television and communication apparatus Precision instruments Motor vehicles and other transport equipment Other transport equipment Other manufacturing Tertiary Electricity, gas and water Construction Trade Hotels and restaurants Transport, storage and communications Transport and storage Post and communications Finance Financial Intermediation Insurance and Pension Funding Activities Auxiliary to Financial Intermediation Business activities Real estate Rental Activities Computer and related activities Research and development Other business activities Public administration and defence Education Health and social services Community, social and personal service activities Other services Unspecified Private buying and selling of property Source : UNCTAD FDI/TNC database, based on data from the Bank of.

17 13 Table 15. FDI stocks abroad, by geographical destination, Region / economy Total world Developed countries Europe European Union Austria Belgium Bulgaria Cyprus Czech Republic Denmark Estonia Finland France Germany Hungary Ireland Italy Latvia Netherlands Poland Portugal Romania Slovakia Spain Sweden United Kingdom Other developed Europe Iceland Norway Switzerland North America Canada Other developed countries Developing economies Latin America and the Caribbean South and Central America Argentina Mexico Panama Asia South, East and South-East Asia China South-East Europe and CIS South-East Europe Bosnia and Herzegovina Croatia Serbia CIS Belarus Kazakhstan Kyrgyzstan Russian Federation Turkmenistan Ukraine Uzbekistan Source : UNCTAD FDI/TNC database, based on data from the Bank of.