The Latvian government has been listening to the foreign investors' concerns for the past ten years and been able to adapt to their conditions for successful business in the country.
The Honorary Chairman of FICIL is Hans Enocson, group manager at General Electric for the Nordic and Baltic regions (Estonia and Latvia). He describes the cooperation within the investing council as very positive.
Picture - The Honorary Chairman of FICIL Hans Enocson
- It is a constructive dialogue, a large percentage of our proposals go through and it is a work of high quality.
There is one formal meeting each year where the council's senior management and government are present. On the next level, there are three meetings each year, plus the ongoing work in the working party the council appoints.
Right now, three areas are of interest; education, taxes and bankruptcy management - or the relationships between banks and the companies that have reached insolvency. Regarding education, the council has proposed an apprenticeship system that ties together the theoretical training with practical training for the students to see how knowledge should be applied.
The council's view on the tax system is not at all about - as you might think - that foreign investors are working to get as much reduction as possible.
- When one writes about laws, it happens that there are uncertainties in the legislation, uncertainties that not at all are advantageous for the state, says Hans Enocson and argues that FICIL has been able to show how different taxes will affect, and what the consequences of one or the other would be.
The Latvian government has now identified a number of industries that they believe will form the basis for future sustainable economic development. There are three - the forest industry, engineering industry, transportation and logistics. Asked whether this is the right choice, Hans Enocson says:
- A country needs to have clear visions in order to attract investors, it is the most important. I cannot say that you have done the right thing by choosing these three investment areas, but to develop the forestry industry is of course a natural step.
The Honorary Chairman of FICIL sees the near future as a major challenge for Latvia, but is full of confidence:
- We will continue to have an open dialogue and to jointly figure out how to get it better. Countries that are closely located naturally trade with one another, but for businesses it is also about strategic relationships. It comes down to finding new ways and logistics are of great importance.
What are the advices a Swedish business leader and investors can give Latvia right now?
- It is important to develop a working relationship and to have a well-trained workforce. Also, how to best combine politics with industry and education - research and development as well, says the Honorary President of Latvia's Council to foreign investors, FICIL.
Hans Enocson will be one of the speakers at the investment forum in Latvia on October 6th.
Astra Kreslina