In 2023, with the involvement of the Investment and Development Agency of Latvia (LIAA), 46 investment projects were completed with a total value of 618.9 million euros and the creation of 2,513 planned jobs. In attracting investment, LIAA focuses on high value-added sectors so that incoming foreign capital stimulates more rapid changes in the economy.
“Interest from foreign companies in entering Latvia remains sufficiently high, and overall we worked on 182 projects this year with a potential reaching 5 billion euros. Not all of these projects will reach fruition, but some will certainly become investment success stories. We see significant interest in energy and ICT projects; manufacturing is also developing, with existing plants expanding and new ones being built. The volume of attracted investment has increased by approximately 30% this year compared to 2022,” emphasises Laura Štrovalde, LIAA Deputy Director for Investment and Energy.
Investment attraction was facilitated by global trends in the growth of the smart energy sector. The sector is developing, and this is also influencing investor interest in Latvia. The state’s policy in the field of renewable energy stimulates the arrival of new investments. Several projects initiated in the smart energy sector are complementary and will in the future create a value chain that will foster both Latvia's energy independence and provide an opportunity to become a country that exports electricity. Economically significant projects like the Latvian-Estonian offshore wind farm ELWIND also play a role. It creates the prerequisites for the development of hydrogen and other energy-intensive technologies. Currently, companies such as Stena Line are working in this direction, while the company Fokker Next Gen intends to work in Latvia on the development of passenger aircraft with hydrogen engines.
“Of the completed investment projects, one of the leading European metalworking companies, Marcegaglia from Italy, should be noted. This was one of the first cases in the EU where, through cooperation between the public administration, the European Commission, and other institutions, it was possible to take over the subsidiary of the Russian-owned company Severstaļ in Latvia in a legally correct manner. The Swiss pharmaceutical company Roche opened its business service centre in Riga in 2023, while the Finnish company Crimppi, which produces various installation materials, entered Liepāja,” said L. Štrovalde, adding that this year has been particularly productive for Liepāja in terms of attracting investment, as other projects have also been completed and companies such as Yokohama TWS, which produces industrial equipment, and personal hygiene product manufacturer iCotton have increased their production capacities.
The bioeconomy sector played a positive role in attracting investment and creating new jobs in 2023, which can be explained by the expansion of the operations of several companies already represented in Latvia – both by investing in equipment and by creating new jobs. A similar trend is observed in the ICT sector, where several companies continue to expand.
“In the field of investment attraction, we have been able to ensure high service quality for our clients, including by cooperating with state institutions, municipalities, universities, and other partners in the private sector. A significant factor in attracting foreign investment is the desire of municipalities to actively participate in this process. It is important for every investor to be aware that the company is welcome and will receive the necessary support not only from LIAA but also from the local municipality,” explains L. Štrovalde.
Several significant projects have been identified with the help of LIAA’s economic representations abroad. In total, LIAA has economic representations in 20 countries that provide support to Latvian exporters and work in the field of investment attraction. In order to increase the capacity of the representations in the field of investment attraction, additional human resources were recruited in 2023 for representations in Germany, Norway, and Sweden.
Of the 46 completed projects, twenty-four are located in Riga and the Pierīga region, twelve in Kurzeme, four in Vidzeme, and three projects each were completed in Latgale and Zemgale. The sectors represented include bioeconomy (12 projects), ICT (10), smart energy (7), photonics and smart materials (6), biomedicine (3), and other sectors.
The goals set in the LIAA strategy for 2023–2025 are to attract 2 billion euros in investment, ensuring the creation of 7,500 new jobs. In 2024, LIAA’s set target for attracting foreign investment is 660 million euros.
https://www.liaa.gov.lv/lv/jaunums/sogad-realizeti-46-investiciju-projekti