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IAWP International Panel “ The World Marketplace - Working with Foreign Companies ”

IAWP International Panel “ The World Marketplace - Working with Foreign Companies ”. Latvia. Brief overview on Latvia’s key facts. Government type: Parliamentary Republic National language: Latvian Capital: Riga  National currency: Lats ( 1 L at = 2 .2 USD ) Population: 2 294 600

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IAWP International Panel “ The World Marketplace - Working with Foreign Companies ”

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  1. IAWP International Panel “The World Marketplace - Working with Foreign Companies” Latvia

  2. Brief overview on Latvia’s key facts. Government type: ParliamentaryRepublic National language: Latvian Capital: Riga  National currency: Lats (1 Lat = 2.2 USD) Population: 2 294 600 (Economically Active Population – 1 015 300) GDP: $ 25.6 billion in 2006 GDP per capita: $ 11 217 in 2006

  3. Riga – Metropolis of the Baltics • Large • Beautiful • Cultural • Ambitious • Educated • Hospitable

  4. Labor force administration. • State Employment Agency (established in 2003) • consists of: • the board, • 27 affiliated offices, • 25 sectors, and • 3 client service centers.

  5. Brief overview on Latvia’s key facts, labor administration and unemployment.State Employment Agency’s Services: Registration of jobs & unemployed Organizing paid temporary work Labor Market Analysis& Forecasts Staff selection Subsidized jobs for (long term unemployed, youth, ex-offenders, before retirement age and disabled individuals) Cooperate with Employers/Businesses Vocational counseling/ career guidance services Subsidizing jobs for school children (age: 14 – 18) during summer holidays Information exch. vis-à-vis European Union Vocational training at various professions

  6. Why Latvia? • Low and easily understandable taxes • Highly educated and motivated labor • Liberal employment legislation • Well connected by flights • Developed financial and IT sector • Easy to set up and manage a business

  7. Riga: well connected flights

  8. Latvia – Gateway between Europe and CIS

  9. 30 25 % 24.09 % 25 20 18 % % 15 % 15 9 % 10 5 0 CIT Income tax Employers social Employee social VAT (sales tax) tax tax Excellent Business Environment

  10. Corporate Income Tax

  11. Liberal labor legislation • Working time: 8 hours a day (40 hours a week) • Annual vacation: 20 working days • 25% residential income tax • 9% social tax (res.) • 24% social tax (empl.) • Termination of contract with employees: notification 1 month in advance

  12. Growth of Investment Among the Highest in EU Source: Bank of Latvia Cumulative FDI into Latvia (Accumulated stock in billion EUR)

  13. Passenger flow Growth at Riga International Airport Source: Riga International Airport

  14. Investors FDI share by country, 2007 Source: Bank of Latvia

  15. Major U.S. Investment Projects: Jeld Wen

  16. Major U.S. Investment Projects: GE Money • In 2004 GE Consumer Finance entered Latvia bought two local consumer finance companies, 210 employees • In 2005 GE Money Swedish subsidiary established shared services center in Riga for its Scandinavian operations: number of employees- 100 • In October 2006 GE Money entered retail banking sector: assets EUR 363 mio, loan portfolio EUR 157 mio, 550 employees

  17. Overview of Labor Costs, 2007 1 EUR = 1.7 $ Source: HR company CVO Technology People, 2007

  18. Perfect place for business - and leisure ! Thank you for attention!Nils Freivalds, IAWP Latvia Chapter

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