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October
05
Country‘s exports in the wake of pandemic: what is the impact of EU investment?
Lithuania‘s exports decreased by 8.4% during the first half of 2020, year on year. How small and medium sized Lithuanian companies are coping? Lithuanian Business Support Agency (LVPA) reminds that those companies are mostly targeted by EU exports promotion investments.
Lithuania‘s decline of exports is among the lowest in EU. Marius Skuodis, vice minister of economics and innovation, notes that during the first half of 2020 according to review by Enterprise Lithuania exports went down by 8.4% and amounted to EUR 13.2 bn.
„During the first half of 2020 changes in exports were mainly caused by COVID-19 impact and related constraints, as well as fall of crude oil prices in the world markets. Looking deeper into trends we can see that three regions managed to avoid the fall – (discounting energy products) Vilnius, Tauragė and Telšiai regions recorded exports growth of 3.3, 1.9 and 0.1% respectively“ – claims Mr Skuodis.
We saw largest decline in Marijampolė (14.6%) and Kaunas (8.2%) regions. Sectorwise, furniture and wood production went down the most – by 8.5% or EUR 110 m.
According to LVPA during 2014–2020 EU financial perspective 814 exports promotion contracts have been signed in four projects - New Possibilities LT, Expo-certificate, Business Cluster LT and Inoconnect. Number of projects implemented is 377 with total investments of EUR 18.2 m.
LVPA director Aurimas Želvys says EU actively encourages growth of exports by member states, with most emphasis to small and medium enterprises. Also efforts are being made to help the leading companies in smaller regions, because experience shows that since those companies find exports promotion projects assisted by EU investment, they are inclined to apply for those projects again.
„No doubt, produce of small and medium Lithuanian companies is of interest in export markets, and it is demonstrated by number of export promotion projects we have implemented with the companies. Having said that, now travelling is complicated, supply chains are being broken because of COVID-19, so we let companies to postpone the activities for the future“, – emphasizes Mr Želvys.
Panevėžys based company Jutrix, the maker of stamped parts, exports 20-25% of produce to Denmark, Germany, Sweden, Poland and other markets. EU financed project New Possibilties LT helped company to take part in international events in the past and currently it is getting EU funding from the new project. During the implementation of two projects Jutrix participated in 9 international exhibitions. EU funds half of participation costs.
„ When situation changes and travelling resumes, we see new opportunities and are ready to use them. Currently our strategic task is to enter markets of France and England“ – says Valdas Genys, director of the company.
Jutrix produce is being used in furniture, electric appliances, food, railways and automotive industries. Its exports growth last year was 30% comparing with 2015.
Rūta, confectionary company from Panevėžys, even during pandemics does not stop looking for export possibilities. Its head of innovation Rūta Gilaitienė claims that until now exports made only 13% of sales, but company plans to increase it.
„At this point exports to our smaller markets like Azerbaijan, U.S.A., Spain or UK has decreased. In some markets the sales remained flat, and in some, say Ukraine, we saw the growth. We are constantly looking for new markets and ways to increase sales to foreign buyers. Usually we were getting most contacts from exhibitions. When pandemic struck, we found alternative ways like video conferencing or remote exhibitions“, – emphasizes Ms Gilaitienė.
This company is implementing second EU investment project from New Possibilities LT. Within the scope of the first project it took part in 6 exhibitions. With the second one the plan was to go to 5 exhibitions, 2 of them materialized, and remaining 3 were postponed for later because of the COVID-19. According to Ms Gilaitienė, negotiating changes to the project with LVPA was smooth and fast process.
Lithuania‘s exports decreased by 8.4% during the first half of 2020, year on year. How small and medium sized Lithuanian companies are coping? Lithuanian Business Support Agency (LVPA) reminds that those companies are mostly targeted by EU exports promotion investments.
Lithuania‘s decline of exports is among the lowest in EU. Marius Skuodis, vice minister of economics and innovation, notes that during the first half of 2020 according to review by Enterprise Lithuania exports went down by 8.4% and amounted to EUR 13.2 bn.
„During the first half of 2020 changes in exports were mainly caused by COVID-19 impact and related constraints, as well as fall of crude oil prices in the world markets. Looking deeper into trends we can see that three regions managed to avoid the fall – (discounting energy products) Vilnius, Tauragė and Telšiai regions recorded exports growth of 3.3, 1.9 and 0.1% respectively“ – claims Mr Skuodis.
We saw largest decline in Marijampolė (14.6%) and Kaunas (8.2%) regions. Sectorwise, furniture and wood production went down the most – by 8.5% or EUR 110 m.
According to LVPA during 2014–2020 EU financial perspective 814 exports promotion contracts have been signed in four projects - New Possibilities LT, Expo-certificate, Business Cluster LT and Inoconnect. Number of projects implemented is 377 with total investments of EUR 18.2 m.
LVPA director Aurimas Želvys says EU actively encourages growth of exports by member states, with most emphasis to small and medium enterprises. Also efforts are being made to help the leading companies in smaller regions, because experience shows that since those companies find exports promotion projects assisted by EU investment, they are inclined to apply for those projects again.
„No doubt, produce of small and medium Lithuanian companies is of interest in export markets, and it is demonstrated by number of export promotion projects we have implemented with the companies. Having said that, now travelling is complicated, supply chains are being broken because of COVID-19, so we let companies to postpone the activities for the future“, – emphasizes Mr Želvys.
Panevėžys based company Jutrix, the maker of stamped parts, exports 20-25% of produce to Denmark, Germany, Sweden, Poland and other markets. EU financed project New Possibilties LT helped company to take part in international events in the past and currently it is getting EU funding from the new project. During the implementation of two projects Jutrix participated in 9 international exhibitions. EU funds half of participation costs.
„ When situation changes and travelling resumes, we see new opportunities and are ready to use them. Currently our strategic task is to enter markets of France and England“ – says Valdas Genys, director of the company.
Jutrix produce is being used in furniture, electric appliances, food, railways and automotive industries. Its exports growth last year was 30% comparing with 2015.
Rūta, confectionary company from Panevėžys, even during pandemics does not stop looking for export possibilities. Its head of innovation Rūta Gilaitienė claims that until now exports made only 13% of sales, but company plans to increase it.
„At this point exports to our smaller markets like Azerbaijan, U.S.A., Spain or UK has decreased. In some markets the sales remained flat, and in some, say Ukraine, we saw the growth. We are constantly looking for new markets and ways to increase sales to foreign buyers. Usually we were getting most contacts from exhibitions. When pandemic struck, we found alternative ways like video conferencing or remote exhibitions“, – emphasizes Ms Gilaitienė.
This company is implementing second EU investment project from New Possibilities LT. Within the scope of the first project it took part in 6 exhibitions. With the second one the plan was to go to 5 exhibitions, 2 of them materialized, and remaining 3 were postponed for later because of the COVID-19. According to Ms Gilaitienė, negotiating changes to the project with LVPA was smooth and fast process.
Lithuania‘s decline of exports is among the lowest in EU. Marius Skuodis, vice minister of economics and innovation, notes that during the first half of 2020 according to review by Enterprise Lithuania exports went down by 8.4% and amounted to EUR 13.2 bn.
„During the first half of 2020 changes in exports were mainly caused by COVID-19 impact and related constraints, as well as fall of crude oil prices in the world markets. Looking deeper into trends we can see that three regions managed to avoid the fall – (discounting energy products) Vilnius, Tauragė and Telšiai regions recorded exports growth of 3.3, 1.9 and 0.1% respectively“ – claims Mr Skuodis.
We saw largest decline in Marijampolė (14.6%) and Kaunas (8.2%) regions. Sectorwise, furniture and wood production went down the most – by 8.5% or EUR 110 m.
According to LVPA during 2014–2020 EU financial perspective 814 exports promotion contracts have been signed in four projects - New Possibilities LT, Expo-certificate, Business Cluster LT and Inoconnect. Number of projects implemented is 377 with total investments of EUR 18.2 m.
LVPA director Aurimas Želvys says EU actively encourages growth of exports by member states, with most emphasis to small and medium enterprises. Also efforts are being made to help the leading companies in smaller regions, because experience shows that since those companies find exports promotion projects assisted by EU investment, they are inclined to apply for those projects again.
„No doubt, produce of small and medium Lithuanian companies is of interest in export markets, and it is demonstrated by number of export promotion projects we have implemented with the companies. Having said that, now travelling is complicated, supply chains are being broken because of COVID-19, so we let companies to postpone the activities for the future“, – emphasizes Mr Želvys.
Panevėžys based company Jutrix, the maker of stamped parts, exports 20-25% of produce to Denmark, Germany, Sweden, Poland and other markets. EU financed project New Possibilties LT helped company to take part in international events in the past and currently it is getting EU funding from the new project. During the implementation of two projects Jutrix participated in 9 international exhibitions. EU funds half of participation costs.
„ When situation changes and travelling resumes, we see new opportunities and are ready to use them. Currently our strategic task is to enter markets of France and England“ – says Valdas Genys, director of the company.
Jutrix produce is being used in furniture, electric appliances, food, railways and automotive industries. Its exports growth last year was 30% comparing with 2015.
Rūta, confectionary company from Panevėžys, even during pandemics does not stop looking for export possibilities. Its head of innovation Rūta Gilaitienė claims that until now exports made only 13% of sales, but company plans to increase it.
„At this point exports to our smaller markets like Azerbaijan, U.S.A., Spain or UK has decreased. In some markets the sales remained flat, and in some, say Ukraine, we saw the growth. We are constantly looking for new markets and ways to increase sales to foreign buyers. Usually we were getting most contacts from exhibitions. When pandemic struck, we found alternative ways like video conferencing or remote exhibitions“, – emphasizes Ms Gilaitienė.
This company is implementing second EU investment project from New Possibilities LT. Within the scope of the first project it took part in 6 exhibitions. With the second one the plan was to go to 5 exhibitions, 2 of them materialized, and remaining 3 were postponed for later because of the COVID-19. According to Ms Gilaitienė, negotiating changes to the project with LVPA was smooth and fast process.
Lithuania‘s exports decreased by 8.4% during the first half of 2020, year on year. How small and medium sized Lithuanian companies are coping? Lithuanian Business Support Agency (LVPA) reminds that those companies are mostly targeted by EU exports promotion investments.
Lithuania‘s decline of exports is among the lowest in EU. Marius Skuodis, vice minister of economics and innovation, notes that during the first half of 2020 according to review by Enterprise Lithuania exports went down by 8.4% and amounted to EUR 13.2 bn.
„During the first half of 2020 changes in exports were mainly caused by COVID-19 impact and related constraints, as well as fall of crude oil prices in the world markets. Looking deeper into trends we can see that three regions managed to avoid the fall – (discounting energy products) Vilnius, Tauragė and Telšiai regions recorded exports growth of 3.3, 1.9 and 0.1% respectively“ – claims Mr Skuodis.
We saw largest decline in Marijampolė (14.6%) and Kaunas (8.2%) regions. Sectorwise, furniture and wood production went down the most – by 8.5% or EUR 110 m.
According to LVPA during 2014–2020 EU financial perspective 814 exports promotion contracts have been signed in four projects - New Possibilities LT, Expo-certificate, Business Cluster LT and Inoconnect. Number of projects implemented is 377 with total investments of EUR 18.2 m.
LVPA director Aurimas Želvys says EU actively encourages growth of exports by member states, with most emphasis to small and medium enterprises. Also efforts are being made to help the leading companies in smaller regions, because experience shows that since those companies find exports promotion projects assisted by EU investment, they are inclined to apply for those projects again.
„No doubt, produce of small and medium Lithuanian companies is of interest in export markets, and it is demonstrated by number of export promotion projects we have implemented with the companies. Having said that, now travelling is complicated, supply chains are being broken because of COVID-19, so we let companies to postpone the activities for the future“, – emphasizes Mr Želvys.
Panevėžys based company Jutrix, the maker of stamped parts, exports 20-25% of produce to Denmark, Germany, Sweden, Poland and other markets. EU financed project New Possibilties LT helped company to take part in international events in the past and currently it is getting EU funding from the new project. During the implementation of two projects Jutrix participated in 9 international exhibitions. EU funds half of participation costs.
„ When situation changes and travelling resumes, we see new opportunities and are ready to use them. Currently our strategic task is to enter markets of France and England“ – says Valdas Genys, director of the company.
Jutrix produce is being used in furniture, electric appliances, food, railways and automotive industries. Its exports growth last year was 30% comparing with 2015.
Rūta, confectionary company from Panevėžys, even during pandemics does not stop looking for export possibilities. Its head of innovation Rūta Gilaitienė claims that until now exports made only 13% of sales, but company plans to increase it.
„At this point exports to our smaller markets like Azerbaijan, U.S.A., Spain or UK has decreased. In some markets the sales remained flat, and in some, say Ukraine, we saw the growth. We are constantly looking for new markets and ways to increase sales to foreign buyers. Usually we were getting most contacts from exhibitions. When pandemic struck, we found alternative ways like video conferencing or remote exhibitions“, – emphasizes Ms Gilaitienė.
This company is implementing second EU investment project from New Possibilities LT. Within the scope of the first project it took part in 6 exhibitions. With the second one the plan was to go to 5 exhibitions, 2 of them materialized, and remaining 3 were postponed for later because of the COVID-19. According to Ms Gilaitienė, negotiating changes to the project with LVPA was smooth and fast process.
