Last year alone, about 1,400 new companies were established in Kaunas, the vast majority of which are small or medium-sized.
In total, about 25 thousand were operating in Kaunas county last year. companies. The activities of the majority of companies are related to wholesale and retail trade, vehicle repair, professional, scientific and technical activities. Aurelijus Šveikauskas, a member of the board of the European Merchant Bank (EMBank), says that the emergence of the latter companies is often associated with the Kaunas SEZ. Because when foreign businesses settle in this territory and attract new employees, the need for additional services arises, which becomes an incentive for the creation of new businesses.
“Kaunas LEZ attracts about 70 percent of direct foreign investments in Kaunas. This means that the free economic zone is one of the essential figures for business growth in Kaunas. Of course, in order to achieve even greater growth, favorable and quick state decisions are also needed, but no one will deny that the potential is enormous. According to the LEZ, specialists working here are not inferior to the average salaries of those working in Vilnius”, says A. Šveikauskas.
Just two years ago, the Kaunas SEZ reported the first billion in attracted investments, but in the last few years the amount of investments has increased by more than half and already amounts to 1.56 billion. Eur. Kaunas hopes to reach 2 billion in the near future. Investment amount of EUR. It is predicted that this could allow the creation of almost 10 thousand highly qualified jobs. A member of the board of EMBank says that Kaunas’ economy, which is growing at such a pace, allows not only to attract world-class players, but also represents the city as an attractive cradle of investments.
The population is increasing, the average salary is growing
A. Šveikauskas emphasizes that you confirmed the city’s potential and the fact that the population has been growing for the last 5 years. This is the case even after a gap of almost 30 years. Over the past year, the population in the city has increased by approximately 6 percent. and after a long break crossed 300 thousand. population cartel. Although many people do not live in Kaunas, they come here to work because of the convenient location, as the distance from other big Lithuanian cities such as Vilnius, Panevėžys, Marijampolė and others is from 50 to 110 km.
“Kaunas county is one of the leaders in the country in terms of gross salary growth. It is estimated that in the middle of this year the average gross growth reached almost 12 percent compared to the same period last year. Such growth is almost 2.5 percent. higher than in Vilnius county and almost 1 percent. higher than in Klaipėda. The trends show that the region can continue to record one of the highest growths in the country”, emphasizes A. Šveikauskas.
According to him, the average gross salary in Kaunas exceeds the national average and is gradually closing the gap with Vilnius. In addition, Kaunas collects a considerable tribute from cultural events, which are visited both by guests from other cities of the country and abroad. The largest indoor arena and reconstructed stadium in the country is one of the reasons for inviting the biggest events. The latter contribute to the popularization of the city and the growth of the service sector. This indicator is important for business growth, since almost 70 percent of the country’s population work in the service sector.
Connection with Western Europe
In a few years, Kaunas should become an even more important connection between the North and the West. Back in 2016 the railway network was filled with the Kaunas-Warsaw track, which facilitates the transportation of goods. This means that Kaunas has become a kind of railway gateway of the country to Western Europe. However, this is not the end, because by 2026 it is planned that “Rail Baltica” will connect Kaunas with Riga and Tallinn, and trains on this track will be able to move at almost 250 km/h. at speed Kaunas will become the place of perhaps the highest intensity in the region.
It should not be forgotten that during this time the Kaunas SEZ and the Kaunas intermodal terminal and the public logistics center will also expand, next to which until 2026 The public logistics center located on 12 ha will expand storage options. More space should also be created for the development of the SEZ.
Although Kaunas has been growing noticeably in recent years, this city in the middle of Lithuania may soon receive even more attention from foreign investors. The directional movement of the region and the benefits it provides to new businesses can provide enviable returns.
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#companies #established #Kaunas #growth #brings #benefits #Lithuania #Business
**Interview with Aurelijus Šveikauskas, Member of the Board of the European Merchant Bank (EMBank)**
**Interviewer:** Thank you for joining us, Aurelijus. The recent investment surge in the Kaunas Free Economic Zone (FEZ) is remarkable. With over €1.5 billion invested, primarily in the manufacturing sector, what does this mean for the local economy?
**Aurelijus Šveikauskas:** Thank you for having me. The investment figure, which now stands at €1.56 billion, indicates that Kaunas is positioning itself as a significant hub for high-value manufacturing. This is crucial as it not only creates high-skilled jobs but also attracts ancillary services and businesses due to the influx of foreign companies.
**Interviewer:** You mentioned the establishment of around 1,400 new companies last year. How does the growth of these businesses relate to the Kaunas FEZ?
**Aurelijus Šveikauskas:** Absolutely. The Kaunas FEZ plays a pivotal role in this growth. When foreign investments come in, they not only create jobs but also generate demand for various services, leading to the establishment of new companies in sectors like logistics, professional services, and retail. Ultimately, this creates a thriving ecosystem around the FEZ.
**Interviewer:** You noted that the FEZ attracts approximately 70 percent of the direct foreign investments in Kaunas. What are the implications of this trend for the region’s workforce and local economy?
**Aurelijus Šveikauskas:** It’s significant. The fact that we have a skilled workforce capable of matching salaries in Vilnius means Kaunas can attract quality talent. As companies grow, they offer better jobs and salaries, which draws more people to the region. Moreover, with the population increasing—up about 6% over the past year—this places additional strain on our service sectors and further incentivizes business growth.
**Interviewer:** The average gross salary in Kaunas is reportedly rising faster than in Vilnius. What factors are driving this growth?
**Aurelijus Šveikauskas:** The rapid economic development within Kaunas and the competitive environment fostered by the FEZ attract higher-paying jobs. As the area becomes a hotspot for investment, salaries improve, giving us a competitive edge. This dynamic is also supported by the numerous cultural events and improvements in infrastructure, further enhancing the region’s appeal.
**Interviewer:** Lastly, how do you see Kaunas evolving in terms of its role as a transport hub connecting North and West Europe?
**Aurelijus Šveikauskas:** Kaunas is set to become an increasingly vital node for connections between these regions. With ongoing developments in transportation infrastructure, including railway connections, the city will enhance its importance for international trade and logistics. This integration not only boosts the economy but also positions Kaunas as a central player in attracting further investments.
**Interviewer:** Thank you for your insights, Aurelijus. It’s encouraging to see such promising developments in Kaunas!
**Aurelijus Šveikauskas:** Thank you for having me. The future indeed looks bright for Kaunas!
