Woodworking is one of the most important sectors in Latvia. This sector, which is very successful to produce rural and regional employment, is one of the frontiers of the export industry at the same time. Extensive forestland located in Latvia is one of the main reasons for the development of this sector. Besides this, it is known that some factors such as being close to markets, affordable cost and qualified labor have an effect on the development of this sector. The sector, which is constantly developing, provides important opportunities to investors.
Development of woodworking sector is one of the great policies of Latvia. Different incentives are provided so that this sector can be a sustainable and developed one. It is also known that investors are provided with facilities on top of such incentives.
Why is woodworking sector advantageous to invest in Latvia? How does the sector make you earn money? All the details are in our article.
Advantages of Woodworking Sector in Latvia
Woodworking is highly developed in the countries located in the Baltic region. However, it would not be wrong to say that Latvia is clearly ahead of its competitors at this point. The main reasons for this can be listed as follows:
- >>> Easy access to raw materials
- >>> Being a traditional sector
- >>> Sustainable structure
- >>> High investments specific to R&D
- >>> Qualified labor
- >>> Geographical location
Latvia’s location is close to very large markets such as Russia and Europe. All of these advantages make it easier for the woodworking industry in Latvia to reach high export figures.[*]
When Latvian economy is examined, it will be seen that approximately 17% of the total export is made by this sector. Also, a large part, such as 71% of the total production of the sector, is exported. Considering the information here, investments to be made in the woodworking sector in Latvia will have very good returns.
The Proportion of Forestland in Latvia
According to the world average, 25% of the countries are covered with forests. However, this ratio is approximately 50% in Latvia. In other words, half of the country’s land consists of forests. Furthermore, while forest area in many countries has decreased in the last 80 years, forests in Latvia have doubled. The increase on the basis of volume was approximately 3.8 times and total volume of forests reached 668 million cubic meters. It is clear from the data here that woodworking sector will not have a shortage of raw materials for a long time.
Half of the huge forests in the country belong to the treasury. Its management is undertaken by the initiative called as Latvia’s State Forests. Latvia’s forest zones are much healthier than the world average, thanks to this institution and other official and civil institutions which spend time and effort. This issue clearly contributes to the sustainability of the relevant sector.
The number of product types that are coming out of the woodworking sector in Latvia is very high. These products, which have wide range, are furniture, toys and similar. It is also known that there are products with a high value-added among them.
Wide variety of products, the fact that most products are exported, no of raw material problems and similar advantages made this sector attractive for foreign investors. Individual and institutional investors who came from different countries have made different investments in this field and still continue to do so. If you want to invest in this field, contact us for more information about the woodworking sector in Latvia.