Telecommunications & IT
Construction
Leisure & Tourism

Target sectors are IT and Telecommunications, Construction, Leisure & Tourism, Public Private Partnership (PPP), EU Funded Business, Railways

Telecommunications & IT

Latvia has been identified as a high priority market for the IT sector, which is developing very fast towards western forms and standards, in terms of both technical and business infrastructure. 

The most important target area for development of the IT sector is Latvia in the short to medium term is software development outsourcing. Software development has grown to include over 100 companies, employing around 4000 qualified staff. 

Other areas of particular interest include the development and hosting of e-commerce solutions, Web-design and Web-hosting.

Latvia is also an attractive hub for high-tech manufacturing because of its low cost, skilled workforce and a well developed transport infrastructure.  Opportunities for foreign participants should be enhanced as a result of a reduction in the Corporation Tax Rate for companies producing high-tech products, which came into effect in January 2001, and the liberalisation of the telecommunications market.

The government has been and continues to be the driving force behind IT development in Latvia through educational opportunities and the facilitation of networking and partnering opportunities for outside investors and technology businesses. One of the programs initiated by the government is designed to:

• Increase IT educational opportunities
• Increase deployment of data networks and transmission
• Promote competition among data communication providers.

Software design is the most significant segment of the IT sector in Latvia. Software maintenance, integration, consulting and training are other rapidly growing areas.

Outsourcing has become a core competence of Latvian software-development companies, which have gained significant experience from large-scale software-development projects undertaken for major international companies. 

As well as the demand from the banking industry for software development, many of the larger government and state institutions require IT development. The telecommunications, public, education and transportation sectors are the greatest consumers of computer equipment. The small office-home office (SOHO) market is also developing rapidly.

Construction

When Latvia regained its independence in 1991 the building sector had almost completely stopped as the sovereign country had no financial sources, there was no private capital, and foreign investors were not willing to make any investment due to the unstable political situation. 

As the economic situation improved, foreign capital and investments found their way into Latvia. From the fact that in recent years construction is one of the most dynamic sectors of the Latvian economy, it follows that building and construction companies are amongst the most organised and modern enterprises in Latvia. 

Latvia has good resources of gypsum, quartz, dolomite, clay sand and gravel that can be used to produce building materials.  Latvia also has the timber for locally made frame housing, windows and doors, with processed wood being one of the country's major exports.  Steel is imported from Russia but the supply can be unreliable.

Leisure & Tourism

Opportunities exist for consultants on the development of marketing strategies and development of public-private partnership models.  There are also opportunities in the area of training for hotel and restaurant sectors

Click here to go to the Latvia International Office