DCC host BALTIC DEVELOPMENT FORUM
24. July 2010

May 31^st DCC, in co-operation with the Danish Embassy, hosted a welcome reception for BALTIC DEVELOPMENT FORUM in FORUM PALACE where all members of DCC was invited. The about 300 participants made this the biggest DCC event so far. The event was kindly sponsored by MAQS Law Firm, Kalnapilis, Danske Bank and Danish Culture Institute.

Our reception was attended by numerous Ambassadors, Top Civil servants and Top Business people from around the Baltic Sea as well as Prime Minister Andrius Kubilius and Chairman of BDF Uffe Ellemann Jensen, who both offered a speech.

This 12^th Baltic Development Forum Summit held in Vilnius gathered 600 participants for high-level networking under the title "European Challenges – Regional Solutions: An Agenda for Jobs, Investments and Sustainable Growth".

The Summit debated the unique opportunities to link national and European growth initiatives in a regional context provided by the EU Strategy for the Baltic Sea Region. In his intervention, the President of the European Commission José Barroso highlighted the Europe 2020 agenda and the EU Strategy for the region in terms of green growth, improved competitiveness and financing of projects. Barroso reiterated that the Baltic Sea Region could become a beacon to the rest of Europe by showing how to create sustainable, green and smart growth.

The outcome of the Summit will provide input to the implementation of the EU Strategy for the Region and to other regional cooperation settings (see here). The new topics that were raised during the Summit will form part of BDF’s own follow up and priorities which will ensure that the regional agenda reflects the views expressed by the different stakeholders representing governments and business organizations.

From Left: Lithuanian Prime Minister Andrius Kubilius, Chairman of Baltic Development Forum Uffe Ellemann Jensen and Bordmember of Danish Chamber of Commerce in Lithuania Kim Bartholdy

Crisis solutions and networking at Wavin Baltic
7. April 2010

31^st of March DCC visited Wavin Baltic and saw the factory, got a company introduction and had a very good discussion about crisis management.

Wavin Baltic realized the slowdown in the autumn of 2008 where they decided wisely and strategicly to make a 2 step reduction in the workforce. The first reduction was cutting staff in rough maners to make a proper adjustment, it was done by noticing who is key persons for the business.

The second round was very well defined with a specified and defined plan for where the company is in the market and where they want it to go.

They then implemented Total Production management and introduced new training and motivation system, looked at what new types of products and holes in the market to fill in, got a stronger position in Belarus and then have kept focus on the strategy of being a full range supplier supplying quality products.

This has worked and Wavin feels fit for the future growth, when it will appear – expected late 2010 and 2011.

An extremely good example of a Danish, but Lithuanian managed company with a clear strategy and a clear plan how to get through the crisis

Newsletter MAQS Law Firm
7. April 2010

Newsletter Company law - March 2010

Taxes in 2010 - by Deloitte
29. March 2010

2nd of March Deloitte made a very useful presentation about the taxes and recent changes.

Actually I believe few for example are aware of how to pay the taxes on company cars (which is being put into more concrete forms from now).

And what about the incomes not coming directly from the main work, but as dividends, in kind income etc.

Or the changes related to taxation between interrelated companies, for micro companies etc.

Vaida Balkeviciute

Vaida Balkeviciute, tax specialist from Deloitte made a very clear presentation of all this.

The event was not visisted by that many, app. 20, but everybody agreed this was a very concrete and usefull meeting.

We also agreed that the invitation has to be a little more provoking – as we are sure most of our members would have got usefull information with them home if having participated.

DCC therefore will arrange a similar meeting later on together with Deloitte again.

Best regards
Thomas Solupajev-Ronlev

SAS reopens flight between Vilnius and Copenhagen
19. November 2009

Scandinavian Airlines SAS has decided to reopen flight between Vilnius and Copenhagen from 11jan2010. SAS will operate 14 times per week – two time per day!
“SAS was the first international airline company which started regular flights from Vilnius Airport in 1992. Our seventeen year experience of carrying passengers from Lithuania to the Danish capital, lets us assert that this route had been very popular due to convenient connection with more than 30 countries of the world”,  Rūta Jucienė, Head of the SAS representing company says.  

According to R. Jucienė, schedule of the resumed flights Vilnius – Copenhagen – Vilnius shall be especially convenient for those who have business trips to Copenhagen: if departed at 6:30 in the morning from Vilnius airport   (local time), it shall be possible to return back in the evening of the same day, as the plane takes off at 20:55.  (vietos laiku). The flight times shall be also convenient for those who sel ect Copenhagen as a stop to reach destination in other Scandinavian, European countries or even further ones.

SAS shall carry out the flights from Vilnius Airport to Copenhagen with new, 88 seat „Bombardier” planes „CRJ900 NextGen“. The airline company shall offer passengers Economy,Economy extra and Business class services.  Registration for all SAS flights shall be free of charge, those selecting the Economic and Economy Extra class shall be able to take a 20 kg luggage, and 30 kg is the allowed weight for the Business class passengers.  Economy Extra and Business class passengers will be able to use many additional services.

On the basis of „EuroBonus” client loyality program, all SAS passengers will be able to gather points that later may be used for additional tickets, also ordering hotel and car rent services.  „EuroBonus“ loyality program is used by more than 14 thousand of passengers in Lithuania, and 2,9 million people in the whole world.

After the Scandinavian company SAS resume the flights from Vilnius Airport, it shall continue with regular flights from Palanga to Copenhagen. Since 25 October of this year, 19 flights a week are be carried out fr om this airport to the capital of Denmark. 

Lunch with Kubilius
13. November 2009

Friday 13. November prime Minister Andrius Kubilius gave a short statement of Lithuanias current state of economics, as well as its prognosed development in the time to come. Host for the speach where the American Chamber of Commerce and consequently most people where from the American Chamber, with me being the only one to show the DCC colors. Among us where also a handful of angry hotel managers, who have not yet forgotten Kubilius for raising Hotel VAT from 5 to 21% and they did sure not forget to remind Kubilius about this!

I had the oppurtunity to attend a joint chambers of Commerce event in Januar, where Kubilius fresh in office gave his first assesment of the impact of crisis and the governments approch to it...  In this light I must unfortunately say, that not much new was said by Lithuanias Prime Minister last Friday. His assesment of the current situation more or less focussed on what comes down must go up, and that he thinks we now have the first few signs of things turning to the better.

Emphasis was on the big infra and energy structures, that are being planned, such as the new reactor at Ignalina, a deep sea harbour in Klaipeda, major upgrade and renovation of buildings. These projects could create many new jobs, but most projects are not yet fully agreed on, so the job effect of these projects would unfortunately not come in the near future.

Of course he as always also focussed on the need to use EU funds better, trim the bureacracy and focus on exports...
Among guests this was however mostly taken with a smile since we as business men have not yet see a single sign any of this being carried out so far...

Among guest questions, where a good question by an american investment broker, who asked if Lithuania do not run a big risk taking on so much new debt in foreign currency and if the government had decided to hedge the risk. This question was followed up by another guest asking about the possible devaluation of the Litas. Mr. Kubilius where not able to give an exact answer to the first question, the second about devaluation we as usual denied with the remark, that Lithuania is a special case and not like other countries in the past with a week economy who had to devaluate...

It then just makes you wonder why the markets then still keep pricing in a devaluation in local Vilibor rates, which are much higher than Euro rates, and also since a key and the only factor in avoinding a devaluation is by implementing a tough internal devaluation in Lithuania by forcing all prices down, is done only half hearted by focussing only on reducing the saleries and pensions of those who have less and is not being supported by the needed leadership and solidarity from the government.....

The conclusion is, that Lithuania hopes and puts its trust, that a recovery in other countries will be able to help pulling Lithuanian economy out of the crisis as well. Lets hope this will be the case... If not the business community will have to prepare themselves for an even more bumpy ride down the road as economic unstability will increase as the economic crisis will be fuelled even more by a lack of trust in government and authorities as well....

DCC meets with the President
1. November 2009

The chairman of Danish Chamber of Commerce, Thomas Solupajev-Ronlev, were invited for a meeting with HE President Dalia Grybauskaite the 21st of October together with the leaders of the other international chambers and networks in Lithuania.

From Danish side were mentioned various possible improvement possibilities for the traditional industries and under here in the farming industry as well.

Several concrete cases were discussed and the Danish Chamber of Commerce were given a contact person among the President staff which can be contacted with ideas for improvements in Lithuania for international investors - and preferably if to use concrete cases to illustrate these ideas.

The meeting was held in a very constructive tone and Danish Chamber of Commerce hereby have better opportunities to promote Danish ideas towards Lithuanian decission makers.

Article from the Presidents website

Introducing Baltic Institute of Corporate Governance
1. November 2009

In August 2009 Bonniers Business Press, Ernst & Young, Glimstedt, ISM University, NASDAQ OMX Baltic stock exchanges and The Swedish Chamber of Commerce announced a joint non-profit initiative and have established the Association “Baltic Institute of Corporate Governance”.

The Baltic Institute of Corporate Governance aims to improve awareness and application of good Corporate Governance in the Baltic region.

The Institute starts by introducing an Executive Education for Board members in co-operation with the Stockholm Chamber of Commerce and with the curriculum based on “Corporate Governance Board Leadership Training Resources” from the International Finance Corporation/Global Corporate Governance Forum.

Additionally the Baltic Institute of Corporate Governance appoints 3 national members each from Lithuania, Latvia and Estonia to the Baltic Corporate Governance Board. The Corporate Governance Board will like similar boards in countries like Sweden, Denmark and Finland work to establish good corporate governance in the region.

Arminta Saladžien: Chairman of the Executive Committee of the Baltic Institute of Corporate Governance has been honored with the Swedbank Baltic Sea Award 2009 for her work regarding good corporate governance in the Baltic States.

The Institute is open for co-operation with the governmental as well as nongovernmental institutions and private businesses.

www.corporategovernance.lt
www.corporategovernance.lv
www.corporategovernance.ee

For further details please contact:

Kristian Kaas Mortensen
km@4kkm.com
Mobile: +370 6111 33 44