bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Tuesday 19.09.2017 | Name days: Verners, Muntis
LatviaLatvia

Investors: there are less and less reasons to invest in Latvia every year

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUIn spite of efforts by policy-makers to sort out the business environment and make it more favourable, there have no serious changes in the last twelve months, and Latvia’s overall attractiveness for investors has not improved.

Investors in Latvia are worried the most about the country’s unpredictable tax policy, as well as the lack of qualified labour force and precise state development strategy, as concluded in FICIL Sentimenta Index 2015-2016 compiled by Foreign Investors Council in Latvia and Stockholm School of Economics in Riga.

The study’s author, SSE Riga associated professor Arnis Sauka notes that «latest index covers three main problems: (1) do investors see improvements in Latvia’s business environment when compared with 2015; (2) what, according to investors, has been done and what remains to be done to improve Latvia’s business environment; (3) what are the main short-term objectives Latvia has to accomplish in order to improve its business environment.»

Sauka emphasizes – results of the study show that aside from the aforementioned factors, investors repeatedly point to other problematic matters that remain unresolved in Latvia and whose continued existence impedes the development of businesses in the country and its national economy. Among the problematic matters are the grey economy, corruption, unsorted social security and healthcare system, negative demographic growth and unresolved regional reform. In addition, investors believe the recent political initiatives have not improved the situation.

The study has also helped uncover another problematic tendency – only half of the largest foreign investors plan to continue investing in businesses in Latvia in the future. Unfortunately, some investors share this opinion. ‘Year after year there are less and less reasons to invest in Latvia – the government introduces new taxes without rhyme or reason, and often the only way to look for truth is to go to court. There is currently no strong motivation to invest in Latvia. Even more so if you compare investment environments in neighbouring Lithuania and Estonia,’ – a banking and finance investor mentioned in the study.

«Like last year, a large number of investors are worried about the situation in Latvia and avoid making important decisions in regards to investments. Uncertainty about the tax system reform, controversial changes in legislation and the inability to sort out the country’s healthcare system and find an exit from the demographic crisis – there are but some of the many reasons why many investors are cautious. It is likely that those reasons are to blame for the hesitation of investors to enter Latvia. If effective actions to improve Latvia’s overall competitiveness are not performed in the near future, not only will the country not see the creation of new businesses, but existing ones will likely decide to relocate to other countries,» – warns Marta Jaksona, CEO of Foreign Investors Council in Latvia.

Although foreign investors criticize Latvian policy makers’ accomplishments in 2016, there is still room for positive changes. Most respondents mentioned that communication with the government has improved this year. Latvia’s competitiveness in infrastructure has also improved.

To improve Latvia’s business environment and increase investments, foreign investors urge Latvian politicians to look for ways to improve labour force accessibility, resolve demographic problems, and improve the tax and court justice system.

Ref: 102.109.109.6798


Leave a reply

Judins says parliamentary committee «is going nowhere»

The work performed by Saeima’s investigative committee in charge of oligarch case does not fit the established goal to investigate and analyse possible state capture, says member of the committee and Unity’s Saeima faction Andrejs Judins.

Study: residents criticize development of Latvia general situation the most

With the coming of autumn, residents’ optimism has declined significantly, according to results of Baltic International Bank’s Latvian Barometer.

Number of occupied jobs in Latvia up 9.3 thousand

At the end of the first half of 2017, in Latvia there were 903.2 thousand occupied posts, and, compared to the end of the first half of 2016, the number has grown by 9.3 thousand or 1.0 %.

Latkovskis says sometimes questionable votes are lobbied in Saeima in secret

There have been cases sin which questionable votes were being lobbied in the parliament in secret. Compared with last year, this tendency is demonstrating growth, said Saeima deputy Ilmārs Latkovskis in an interview to Latvijas Avīze.

E-governance advocate Ilves comments on alleged Estonian ID card vulnerability

The ex-President of Estonia Toomas Hendrik Ilves, who has been an active advocate of e-governance has emphasised that a possible security risk with Estonian ID cards has not put that the country's reputation as an e-state at risk.

Delna invites Saeima to support initiative to liquidate option to abstain from votes

Society for openness Delna invites Saeima deputies to support public initiative and liquidate the option for deputies to abstain from votes.

82% of Estonian households use mobile internet at home

As to the choice of internet connection in Estonia, 82% of Estonian households use mobile internet at home, Estonian statisticians have estimated.

Baltic Express attracts railway cargoes; decline noted for other carriers

Railway cargo carrier Baltic Express more than doubled its cargo volumes in the first seven months of 2017. Meanwhile, other two cargo carriers – LDz Cargo and Baltic Transit Service – have suffered cargo declines. Baltic Association – Transport and Logistics notes that it is ringing the alarm over the situation in the industry, not over the interests of its members.

Survey: more than half of Latvian residents are half-serious about their health

44% of Latvian residents use all medicine prescribed by their doctor when they get sick, according to data from Mana Aptieka&Apotheka health index.

In pictures: Zapad drill in full swing

BNN offers you an insight into the quadrennial join military training of Belarus and Russia, which have been inspected in person by Russian President Vladimir Putin and Russian Defence Minister Sergey Shoygu.

Rinkēvičs invites India to open an embassy in Latvia

During the 72nd session of the UN General Assembly in New York on Monday, 18 September, Latvian Foreign Affairs Minister Edgars Rinkēvičs met with his Indian counterpart Sushma Swaraj. The two discussed political and economic cooperation between the two countries.

Norwegian top policeman sentenced to 21 years in prison for aiding hashish contraband

A court in Norway, a country often recognised as one of the least corrupt globally, has convicted a senior Norwegian police officer to 21 years in prison after finding him guilty of taking bribes and helping drugs contraband.

Road Transport Administration: transport planning in Riga does not reflect region’s scale

Road Transport Administration plans to speak with Riga and Pierīga administrations about the fractured public transport system in the region, says the administration’s chairman Kristiāns Godiņš.

Mass Ryanair cancellations expected

Irish airline Ryanair has warned that due to an internal planning problem up to 400 000 flights could be cancelled in the European Union.

Legislative draft proposed to simplify referendum procedure

The Central Election Commission has registered Open Management Partnership in Latvia signature collection association’s legislative draft submitted for the fourth time. This legislative draft proposes cancelling amendments of 8 November 2012 to the Law on National Referendum, Legislative Initiative and European Citizens’ Initiative, as reported by the commission.

Greece to lift wine tax due to low revenue

The government of Greece plans to submit draft amendments to lift the country’s year-old excise tax on wine, Greek Minister for Agricultural Development and Food has stated.

Reirs: pension budget will increase by EUR 160 million next year

Next year, pension budget will increase by more than EUR 160 million, says Latvian Welfare Minister Jānis Reirs. He explains that the total pension budget will be EUR 1.93 billion, which means funding for next year’s pensions will be 9.19% higher.

Oligarch case’s parliamentary committee settles disputes with shouting

During a meeting of Saeima’s committee entrusted with investigating Oligarch case, a loud argument broke out between Unity faction member Andrejs Judins and publicist Imants Liepiņš.

IDB: it is too soon to expect corruption to go down in traffic monitoring field

Society’s condemnation of bribery is positive, but it is currently too soon to expect the problem of bribery in road traffic monitoring field to go down, admits Internal Security Bureau chief Valters Mūrnieks.

Apinis: Latvia’s Healthcare Ministry is intellectually weak

Pēteris Apinis, head of Latvian Association of Doctors, criticizing the reform plan, saying: «Just like the Napoleon cake has no Napoleon, the reform plan has no reforms.» He believes Healthcare Ministry’s intellectual potential declined in the past three to four years and that the institution in its current state is intellectually weak.

airBaltic performed 14,324 flights in summer

In August 2017, Latvian airline airBaltic carried 386,597 passengers or 21% more than it did in the same period in 2016, as BNN was informed by the airline.

Sudraba: deputy quotas matter will be resolved in officials’ offices this year

The matter of the so-called deputy quotas will be resolved in officials’ offices this time, deputy Inguna Sudraba of To Latvia from the Heart told Latvijas Radio.

Estonia should invest in long-term productivity, environmental protection – evaluates OECD

As Estonia’s economic recovery gathers pace, it is time to work for sustainable development by protecting the environment and looking for ways to increase productivity, the Organisation for Economic Co-operation and Development has recommended.

Option to abstain from vote proposed to be liquidated to reduce possibility of hiding opinions

On Monday 18 September, a citizens’ initiative will be submitted to the Saeima to liquidate the option to abstain from votes in the parliament.

KNAB commences criminal process in state institution’s service

Corruption Prevention and Combating Bureau has commenced a criminal process for, possibly, illegal activities in a state institution service.