The opportunities for doing business in Vilnius, often referred to as the “Baltic Tiger,” are excellent, with even better future prospects. Vilnius is the economic hub of Lithuania and generates almost one-third of the country’s GDP. Lithuania has maintained stable growth over the past several years, and forecasts indicate continued positive trends. The labor cost in Lithuania remains one of the lowest in the EU, making it an attractive destination for businesses.
Since Vilnius was named European Capital of Culture in 2009, the city has gained increased international recognition. This designation spurred significant investments in cultural and leisure infrastructure, amounting to approximately €0.5 billion. Notable projects include the development of a large international conference center. These developments, combined with Vilnius’s robust economic environment, make the city a highly attractive location for starting and growing a business.
Business Etiquette
When approaching a meeting it’s common to welcome with a handshake. Initially address your business partner with his or her honorific title and surname. Wait until invited before moving to a first name basis.
The first contact should be with a high-ranking person who’s in a position to make decisions; this is mainly because the culture is still in many ways hierarchical so showing respect and regards to people of authority is recommended. Thus take notice to whom you addressing i.e. for more junior members of a team it’s not polite to address senior-ranking businesspersons directly, as this is seen as a violation of business-etiquette.
Main Companies
Because of the favorable business climate and the abundant opportunities for doing business in Lithuania, several companies have invested significant sums in Vilnius. Among the main foreign investors are Telia Company (formerly TeliaSonera) in the telecommunications sector with investments amounting to approximately €590 million, SEB in the banking sector with €250 million, and various other notable companies continuing to see Vilnius as a prime investment destination. Additionally, Vilnius has attracted significant investments from global technology companies, such as Google, Uber, and Nasdaq, further establishing the city as a dynamic and growing business hub in the Baltic region.
