Investing in Latvia should cross every investor’s mind when looking for investment opportunities in Europe.
Emmanuil Grinshpun, an experienced investor in various successful businesses, can provide a few reasons. This article discusses those reasons and some of the best investment sectors.
Latvia is one of the least populous countries in the European Union, with fewer than 2 million people.
Despite its small size, why does Latvia attract investors?
What Does Latvia Have to Offer Investors?
The country has made significant strides in several key areas, says Emmanuil Grisnhpun, making it an attractive investment destination.
- Among the most notable areas of progress has been renewable energy. As per statistics, Latvia is one of the leading European countries in renewable energy sources.
Besides hydropower, the country is utilizing both wind and biomass energy.
- Latvia’s economy is positively moving towards economic growth. According to one report, the economy will see an increase of 3.5% in 2022 and 1.6% in 2023.
- The woodworking and construction materials industries have significantly contributed to the country’s economic development.
These factors highlight Latvia’s potential as an investment destination.
Given the country’s impressive track record of progress, investing in Latvia is a smart move for any investor, concludes Grinshpun.
Emmanuil Grinshpun Considers these Key Latvian Sectors for Insvestments
As a seasoned investor, Emmanuil Grinshpun highlights the following sectors as the most promising in Latvia:
Bioeconomy
Latvia is the 5th most forested European country, with almost half of the area covered with forests. The forestry sector is essential to the Latvian economy, and the country has a long tradition of sustainable forest management.
Moreover, Latvia is already home to several successful bio-economy companies producing medicine, food, and pharmaceutical products. However, the country plans to capitalize on this natural resource by investing in the bioeconomy.
Biomedicine
Latvia is miles ahead of other Baltic states when it comes to biomedicine. So much so that the country has the second largest biobank among alliance members.
Moreover, Latvia features some of the most passionate and skilled medical experts in the biomedicine industry.
Also, in terms of revenue, the biomedical sector ranks 5th among other manufacturing industries in Latvia. The country exports pharmaceutical products to Canada, the USA, and Japan.
Green Technology
A leading country in green technology, Latvia has made great strides in this area, according to Emmanuil Grishpun. Latvia stands 3rd on the list of EU countries working on renewable energy consumption.
Some of the country’s leading companies are involved in green technology, and the sector is only expected to grow.
Information and Communications Technology
In Latvia, the information and communication technology (ICT) sector is one of the fastest-growing industries.
The country’s highly educated workforce is home to several leading ICT companies. And, as everyone knows, IT businesses are one of the most profitable assets with minor operational expenses, Grinshpun explains.
Intelligent cities
The purpose of smart cities is to improve the quality of life of their citizens using technology. In the Latvian capital Riga, smart city development has been planned and strategized since 2018.
However, other cities like Jelgava, Jurmala, and Valmiera quickly follow suit.
Smart Materials and Photonics
Smart materials can change their properties in response to external stimuli.
Research and development in smart materials have made Latvia the Silicon Valley of the north.
So, these are some of the best sectors to invest in Latvia, according to Emmanuil Grinshpun’s experience. He says the country is on the rise and expected to see significant economic growth in the years ahead.
Now let’s look at some of Latvia’s benefits for investors.
What Makes Latvia a Good Destination for Investments?
In addition to its excellent growth prospects and promising returns, Latvia offers investors like Emmanuil Grinshpun several other advantages.
Here are some of the key benefits:
Developed infrastructure for transportation
Transportation infrastructure is one of the first things investors look at before investing. As a crossroads between East and West, Latvia makes an ideal location for businesses that ship goods throughout the continent.
The country has a well-developed infrastructure for transportation, including an extensive network of roads, railways, and ports.
Qualified workforce
Businesses are as successful as the people behind them. Latvia has a highly educated and skilled workforce, making investors trust the country’s ability to provide qualified employees.
Free trade (Especially within the EU borders)
“Free trade” is one of the critical factors Emmanuil Grinshpun considers before investing in a country.
Due to Latvia’s membership in the European Union (EU), its businesses are free to trade with other EU nations.
Governmental incentives
The Latvian government offers fantastic incentives to new investors and businesspeople.
Low tax rates and right of residence are two of the most noteworthy incentives attracting investors worldwide.
They benefit from low tax rates and are entitled to a Schengen Visa to move freely across Europe. This has historically attracted many international investors, says Emmanuil Grinshpun.
On top of that, investors are eligible for citizenship after completing five years of residence.
International Regulatory Considerations
In its regulatory system, Latvia has incorporated European norms and standards.
Latvia is a member of the European Union and a signatory to the WTO Trade Facilitation Agreement.
As a WTO member, Latvia must notify the WTO Committee on Technical Barriers to Trade of all draft technical regulations.
Highly Developed Country in Terms Of Exports
Latvia’s exports significantly contribute to the overall economy; hence, the country is experienced in export policies. Foreign investors understand the profitability of the export business and thus find it safe to invest in Latvia.
Strong Start-up Ecosystem
The Latvian start-up ecosystem is increasing, making it an attractive destination for investors.
The country has several incubators, accelerators, and coworking spaces that provide the necessary support for start-ups.
International Security
Latvia is a safe and secure country, essential for businesses transporting goods across Europe.
The country is a member of the European Union and NATO, which adds to its security.
Despite its many benefits, Grinshpun concludes that Latvia is an attractive destination for investors.
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