Business Profile
Economy: Lithuania has historically been the least developed of the Baltic republics, with a smaller industrial base and greater dependence on agriculture, prior to rapid industrialisation during the Soviet era. Sugar beet, cereals, potatoes and vegetables are the main crops. Electrical, electronic and optical goods and light machinery are the main industrial products. Food-processing is also an important industry, with an ample supply of agricultural products from Lithuania's own farming and fisheries sector and, more recently, from Russia. Lacking other raw materials, Lithuania relies heavily on supplies from Russia. Lithuania's other major economic asset is the Baltic's only naturally ice-free port (other than Kaliningrad) at Klaipeda. Lithuania is a founder member of the regional co-operation organisation for Baltic littoral states, to establish the Council of Baltic Sea States. The Government has largely completed the dismantling of the old Soviet-style command economy, introducing a market system and liberalising foreign trade. But domestic political factors have hindered the previously rapid privatisation programme, especially the key energy industries which rely heavily on raw materials from Russia, as well as the finance and banking sector. The Russian financial crisis of 1998 had a serious knock-on effect in Lithuania, with a sharp decline in output recorded that following year. Lithuania's trade patterns have gradually shifted during the 1990s towards the West, especially Germany, but traditional partners including Russia, Belarus and the Ukraine remain important. The country joined the IMF and World Bank in 1992, as well as the European Bank for Reconstruction and Development as a Country of Operation. A convertible currency, the Litas, was introduced in 1993. Lithuania has signed an Association Agreement with the European Union, as the first stage on the path towards joining the EU: the country is currently in the 'second wave'of aspirant members, who may expect to achieve full membership around 2010.
Business: Business is conducted in a fairly formal manner and a smart appearance is important. Appointments should be made in advance. English is used for international commerce. A knowledge of German, Russian or Polish may also be useful. Office hours: Mon-Fri 0900-1300 and 1400-1800.
Commercial Information: The following organisations can offer advice: Association of Lithuanian Chambers of Commerce and Industry, J. Tumo-Vaizganto 9/1-63a, 2001 Vilnius (tel: (2) 612 102; fax: (2) 612 112; e-mail: info@chambers.lt; website: www.chambers.lt); or European Committee of the Government of the Republic of Lithuania, Gedimino 56, 2685 Vilnius (tel: (2) 661 700; fax: (2) 612 178; e-mail: mail@.euro.lt; website: www.euro.lt).
Conferences/Conventions: A number of hotels in Vilnius have conference facilities and can organise conventions. Some rest homes in Palanga also provide facilities during the low season. For further information, contact the Lithuanian Tourist Board (see address section), the Lithuanian Hotel Association (see Accommodation section) or LITEXPO, Laisves pr. 5, 2600 Vilnius (tel: (2) 454 500; fax: (2) 454 511; e-mail: info@litexpo.lt; website: www.litexpo.lt).
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