Latvia’s main advantages in investment attraction are history, geography and potential, Economy Minister Daniels Pavluts and investment banker Girts Rungainis admit in an interview to the Kapitals business magazine.
Pavluts notes that, compared to other countries, «we are rather small and barely noticeable, unknown to the world’s largest part». «However, Latvia definitely has something to offer,» says the minister.
«Most likely, we cannot compete with Brazil, China or South Asia. We cannot compete with those places that are currently considered as the ones where one must definitely invest, since everything is large there with a clearly distinguishable future potential, power, resources, etc. However, within the context of diversification strategies, I believe that Latvia is among those wonderful small countries where it would be certainly worth investing,» emphasizes Pavluts.
The minister mentions the location. The most significant economic development in the world still takes place on a 100km long zone across seas, oceans and other bodies of water. Almost all of Latvia’s territory fits under this criterion.
«The other aspect is our close proximity to large target markets – regardless of our small size. Being a part of the large, united European market that we are, Latvia is located on the border between Europe and the CIS, and we should be proud of our location, which allow us to become a part of the large logistical chains», – explains the Minister of Economy.
One other thing, which is not often mentioned, but is significant nonetheless – Latvia’s advantages formed during the course of history.
Latvia has historically formed ports, a good, functional railway system, road system – which should be carefully maintained as well as an industrial development network. «If we look at the railway, energy connections and the historically maintained industrial development structure, then we automatically see a unique road map or blueprints that we can develop nowadays, and thereby conclude that we can further go towards developing the whole of our manufacturing industries», says Pavluts.
Rungainis adds that Latvia is the closest point of the large part of South-Eat Asia to the European Union. «We have ports, Riga airport, and the potential of airBaltic of being involved in far flights to China, India and other part of South-East Asia», – investment banker notes.
Latvia is closely linked to Russia, Germany and Sweden. «It means that there are people, businessmen and people in a thousand kilometre radius who are interested in our history, geography and potential – despite the fact that there is a number of problems linked to working in Latvia. But a problem always has two sides – it can become an opportunity», – Rungainis explains.