2023-09-12
Development of Free Economic Zones is planned without a vision of what returns are expected at national level
Free Economic Zones (FEZs) are one of the tools to attract investment. When investing in these zones, the State has not foreseen the expected national return on investment, as shown by the assessment of the operation of the Free Economic Zones carried out by the National Audit Office.
Among the relevant objectives of establishing FEZs is the development of high technologies. The auditors found that none of the 7 currently operating FEZ management companies have performance indicators related to the development of high technology or the development of scientific progress, and 78% (71 out of 91) of the enterprises operating in the territory of the zones in 2023 were not engaged in high-tech activities.
"In order for FEZs to create greater added value, they need to set expectations for their performance, review each zone's performance indicators in the light of economic and geopolitical changes and technological progress, and place greater emphasis on high-tech development. These issues should be resolved before new FEZs are established", says Jolanta Indriulienė, Audit Team Leader.
Due to underdeveloped infrastructure and unsuitable sites, only 27% of the FEZ's statutory area (i.e. 382.8 ha out of 1 433 ha) is in operation. Almost half of the unused area of the FEZs (476 ha) cannot be used at all due to easements, protection zones and other factors.
