Pumping up the industry sector
TRADE & INDUSTRY LIGHT INDUSTRY WAS GIVEN A BOOST WHEN COMPANIES STARTED TO LOOK WEST FOR NEW EXPORT MARKETS. NOW, WITH THE MARKET OPEN TO THE EAST, INVESTMENT IS NEEDED TO INCREASE PRODUCTION

Lithuania's industry and trade development has enjoyed the support of two important national organizations: the Confederation of Lithuanian Industrialists (CLI) and the Association of Light Industry Enterprises of Lithuania (ALIE). Since Lithuania's independence in 1991, CLI has worked side by side with the government and the country's political and economic organizations in order to ensure that Lithuania's industry development contributes to the prosperity and well-being of the country and its citizens, as well as fostering national culture and traditions. In order to achieve these aims, CLI carries out various activities, including the representation of members' interests before government and international institutions, assisting enterprises in finding new markets and helping to create favorable conditions for Lithuanian exports. Lithuania's primary exports are minerals, machinery, chemicals, wood products, and food products. The country also has a substantial oil refining and distribution industry.

ALIE includes members from the textile, clothing, leather and footwear sectors, and its main efforts involve lobbying, creating a higher level of interaction between businesses within the industry, and providing information for investors. The association has made progress in upgrading the quality, flexibility and reliability of the industry and has performed a crucial role as mediator between Lithuanian and foreign companies. General Director Vidmantas Viksraitis speaks about the history of the industry: "Light industry is well developed in Lithuania due to historical circumstances; it was developed under Soviet occupation and, due to Moscow's centralized planning at the time, we had to provide not only for the residents of Lithuania, but also for Uzbekistan, the Ukraine, and parts of Russia. After regaining independence, we attempted to reorient towards those markets but on account of various economic and political problems, they were closed to us. So then we changed our export strategy and turned to Central Europe and the Scandinavian countries, which turned out to be very beneficial for us as the cooperation with Western companies was a major stimulus for further development in the industry."

According to Mr. Viksraitis, Lithuania's competitive advantages in its light industry include production quality, company reliability, low labor costs, and its highly qualified management and workers. He elaborates, "The geographic location of Lithuania is very comfortable for us. plus I think we have attained much in improving the quality of our production and the flexibility of our companies. Before, factories were accustomed to manufacturing products in large quantities and over long periods of time. Now products can be produced rapidly and in whatever quantities are ordered. The support that companies are able to provide for each other through ALIE is another advantage that has greatly contributed towards improving product quality. Competition is crucial for growth, but it does not mean we cannot cooperate." Mr. Viksraitis believes that the greatest opportunities for U.S. investors at the moment are in Lithuania's textile industry, since the bulk of textile production is exported to the U.S. and it is the sector where the largest companies are found. He comments, "This sector lacks investments, while it has everything else: specialists, highly trained workers, the facilities, and the infrastructure. Still, cutting-edge technology in the textile industry is expensive, so we need more investors and more resources."