Articles on enterpreneurship >> Perspective business sectors in Latvia
As Latvia is new country there are many possibilities to set up companies for different business types. Latvia is in EU, Schengen, soon there will be used euro in daily transactions as only currency, good geographical position, the smallest Corporate Income Tax in EU etc and many other reasons are motivation to start business in Latvia. On the basis of comparative advantages of Latvia, there are seven sectors with high-potential for foreign investments.
- Woodworking – woodworking is one of Latvia’s most important export sectors and plays a key role in generating rural and regional employment. The industry success is based on Latvia’s favorable combination of vast forest resources, strategic location and a cost- efficient labour force. Additionally, government policies aimed at achieving sustainable forestry development have supported the industry’s success.
- Metalworking and mechanical engineering – Metal processing and engineering has historically been one of the leading industrial sectors in Latvia, as the country was one of the high-tech manufacturing centers for Soviet military and aerospace industries.
Key advantages of the sector include its skilled and cost-efficient workforce, access to metal supplies from Russia and markets in the west.
- Transport and Storage – Latvia is located at the heart of Europe’s fastest growing area – the Baltic Sea region. The transport and storage sector’s success is based on Latvia’s favorable combination of advantageous geographic location, providing access to the Russian and western European markets, a competitive labour force and excellent infrastructure, with three ice-free ports, the best railway connection to Russia and a fast-growing air transport sector.
- Informative Technology (IT) – Latvia’s IT sector provides substantial competitive advantages to investors, mainly through the availability of highly skilled IT professionals, language skills and a combination of western-style working culture with proximity to and knowledge of the Russian market. A highly developed communications and logistics infrastructure and government support further contribute to the sector’s appeal.
- Environmental technology – Experienced in renewable energy generation, Latvia provides an excellent environment for green energy projects. Being the main exporter of environmental technology and resources in the EU, Latvia has the potential to expand this sector, equipped with skilled labour, long-standing experience and the necessary resources. Latvia’s efforts to improve energy efficiency and increasing enrolment in degree courses relevant to the sector further add to the industry’s potential.
- Health care – Latvia’s health-care sector has recently undergone restructuring and budget cuts aiming to increase efficiency and facilitating the introduction of additional private health care options. The potential of the sector is in the combination of highly qualified personnel, low costs and first-rate facilities. Medical tourism is an emerging sector, building on Latvia’s reputation as a spa destination, its convenient location and the availability of high-standard health services at a low cost.
- Life sciences – A very competitive work force and further investment in raising productivity levels and to foster R&D related activity, contribute to the potential and success of the industry.