New and innovative technological solutions and the development of high-value-added products remain at the core of Riga’s manufacturing sector. Building on strong engineering capabilities, export-oriented production and a competitive business environment, Riga continues to strengthen its position in advanced manufacturing through electronics, smart materials, photonics and defence technologies.
With more than 100 years of experience in delivering state-of-the-art industrial solutions and strong supply chains, Riga has developed internationally competitive expertise in engineering, electronics, smart materials and photonics. Today, manufacturing is increasingly focused on high-value-added products, advanced technologies and export-oriented production, while growing investment in defence and dual-use technologies is creating new opportunities for innovation and industrial development.
Why Riga?
- Export-Oriented Manufacturing
- Engineering & Industrial Excellence
- Smart Materials & Electronics
- Defence & Dual-Use Technologies
- Industrial Infrastructure & Connectivity
- Competitive Operating Costs
Riga offers superior connectivity by being a convenient logistics hub connected with rest of Europe by rail, air and sea. Riga has a large port that is located in the special economic zone area, the Riga central train station will soon be the largest in the Baltics, and already has the largest international airport in the Baltic region.
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Latvia is an EU country that boasts diversity, digital advancement, and cost-effectiveness. It is noteworthy for having the highest proportion of women in management positions among EU countries, as well as being ranked 19th globally in terms of ease of doing business. Additionally, Latvia ranks 4th among EU nations in terms of e-government services.
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Companies in Latvia can benefit from a variety of government incentives and support mechanisms to foster innovation, growth, R&D and export capacity. Furthermore, the Riga port special economic zone offers specific advantages, such as tax reliefs and co-financing. Foreign investors have all the same rights and opportunities as the local businesses.
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Latvia, compared to other EU countries, stands out with cost competetiveness in labour costs, favorable tax rates, and lower real estate and utilities’ costs make it an attractive destination for companies to establish their operations in.
Fastest growing sectors
- Electronics & Electronic Engineering
- Smart Materials & Photonics
- Defence & Dual-Use Technologies
- Food Manufacturing & Bioeconomy
Reflecting a strategic commitment to security, Latvia aims to increase its defence spending to 5% of GDP — nearly doubling from current levels (~€1.4 billion).This investment underpins the country’s ambition to build a resilient, innovation-oriented defence sector with strong ties to NATO, EU partners, and Ukraine.
Largest companies
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Numbers
- Manufacturing accounts for 34.7% of GDP turnover and 11.1% of value added, with 65.3% of output exported.
- Smart materials and photonics industry - 3632
- Employement in smart materials and photonics - 37 000
- Electronics and electrical engineering - 300 companies
- Defence budget in the coming years - 2 billion EUR
- 40+ drone-related firms; 5,000+ drones delivered to Ukraine.
- Latvia aims to increase its defence spending to 5% of GDP
- Chemical and pharmaceutical industry - 300 companies
- The number of employees in chemical and pharmaceutical companies - 8500
- Turnover in life-science industry - 1.3 billion EUR (2023)
Key Benefits
- Over a century of industrial and engineering expertise with internationally recognised manufacturing capabilities.
- Strong export-oriented manufacturing ecosystem, supporting companies competing successfully in global markets.
- Competitive operating costs, including labour, real estate and utilities, combined with an internationally competitive tax system.
- Highly skilled engineering and manufacturing workforce, supported by strong technical education and industry expertise.
- Excellent industrial infrastructure, providing efficient connectivity through the Port of Riga, Riga International Airport and the Rail Baltica corridor.
- Riga Freeport Special Economic Zone, offering tax incentives and advantages for eligible manufacturing and logistics investments.
- Green Channel support, helping strategic investment projects navigate administrative procedures more efficiently.
- Government support programmes promoting innovation, research and development, digitalisation and export growth.
- 0% corporate income tax on reinvested profits, encouraging long-term business growth and investment.
Useful links:
- The Association of the Latvian Chemical and Pharmaceutical Industry
- MATERIZE platform for industry collaboration and innovation for making scientific expertise beneficial to business
- Latvian Electrical Engineering and Electronics Industry Association
- Investment options in the Riga Freeport
Contacts
Rolando Huapaija-Delgado, phone. +371 29340979, e-mail: Rolando.Delgado@riga.lv