News

The Latgale Special Economic Zone (Latgale SEZ) is the newest of Latvia’s special territories designed to support businesses, having been established only in 2017. While the combined annual turnover of companies operating within the zone initially amounted to approximately EUR 20 million, last year it exceeded EUR 500 million.

Latgale SEZ companies are breaking long-standing stereotypes about the region’s economic lagging. A high-tech cluster has emerged here, where white gloves have become an essential part of employees’ everyday workwear.

Latgale SEZ differs from other special economic zones in that it does not have a single, predefined territory. This model has been adopted from Poland. SEZ status may be granted to specific land plots or buildings anywhere in the region, provided that the total area does not exceed 5% of the territory of the Latgale Planning Region.

“This is a significant area. God willing, entrepreneurs will come and we will be able to support them,” emphasizes Aldis Adamovičs, Chairman of the Development Council of the Latgale Planning Region and Chairman of the Preiļi Municipality Council.

Plans to Include Alūksne Municipality

Amendments are currently being advanced in the Saeima to include Alūksne Municipality within the Latgale SEZ. Adamovičs explains that Alūksne has already been included in the Latgale Programme aimed at accelerating regional economic development, as well as in the Eastern Border Development Plan approved by the government earlier this year.

On 3 November 2025, foreign diplomats accredited in Latvia in the field of economic affairs, together with representatives and experts from the Ministry of Foreign Affairs, visited Daugavpils as part of a regional visit to Latgale. During a series of networking events, the delegation met with entrepreneurs, municipal leaders, representatives of economic zones, and other regional stakeholders.

The diplomats not only learned about investment and economic cooperation opportunities but also discovered the region’s diverse cultural and historical heritage and tourism potential.

The event brought together diplomats from 17 countries, representing EU, NATO, and OECD member states. The visit aimed to introduce foreign embassy representatives to Latgale’s entrepreneurs, business environment, investment opportunities, and overall economic potential.

“This is the first time that a targeted visit has been organised for foreign embassy diplomats in Latvia who work on economic affairs. This initiative has the potential to become a new tradition of economic diplomacy,”
emphasised Andžejs Viļumsons, State Secretary of the Ministry of Foreign Affairs.

On 3 November 2025, the Ministry of Foreign Affairs of the Republic of Latvia, in cooperation with the Latgale Planning Region, the Latgale Special Economic Zone, and the Latgale Business Centre, will host a visit of foreign diplomats responsible for economic affairs to the Latgale region. The delegation will include representatives from around 30 countries.

During the visit, participants will become acquainted with leading companies of the region and the opportunities offered by the Latgale Special Economic Zone (Latgale SEZ). The diplomats will also meet with local entrepreneurs and municipal representatives to discuss cooperation opportunities and regional development initiatives.

A key highlight of the visit will be the Latgale Business Opportunities Presentation and the networking event “Lunch with Entrepreneurs”, which will take place at the “Vārpa” Cultural Centre, Dobeles Street 30, Daugavpils. The session will provide participants with insights into current business trends, opportunities, and challenges in the region, as well as an opportunity to engage in informal discussions on potential partnerships and export market expansion.

The Daugavpils City Municipality is implementing the construction of the largest industrial park in Latgale – ALTOP (Eastern Latvia Smart Technology and Research Centre). Once completed, it will become one of the largest industrial parks in Latvia, focused on the development of smart technologies.

The Municipality of Daugavpils now invites entrepreneurs to apply for the auction of lease rights for industrial premises, which will take place on 22 October 2025. Three newly constructed production building sections with adjacent infrastructure and land plots at Lociki, Lidostas Street 4, will be offered for lease. These facilities form part of the emerging ALTOP Industrial Park – the Eastern Latvia Smart Technology and Research Centre.

The total building area exceeds 11,000 m², divided into three independent lease objects (blocks), each auctioned separately:

• Object 1 – 3,815.9 m²

• Object 2 – 3,469.6 m²

• Object 3 – 3,821.9 m²

All premises are designated for industrial production and will be leased for a term of 15 to 30 years.

From July 1 to 4, representatives of the European Commission's Directorate-General for Regional and Urban Policy (DG REGIO) visited Latvia to discuss the development needs and future opportunities of Latvia's border regions together with The Ministry of Smart Administration and Regional Development of the Republic of Latvia, the Latgale Planning Region (LPR), and local governments in Latgale.

Meeting at the Ministry of Finance: EU Funds and Security Priorities

The visit began with a meeting at the Ministry of Finance of the Republic of Latvia, where the following key topics were discussed: Progress in the implementation of EU funds, emphasizing the stable pace of investment expected to continue through 2025; Mid-term revisions, with significant reallocations focusing on national security—including cybersecurity, military mobility, energy independence, civil protection, and regional resilience; Framework for the next EU programming period, outlining national investment priorities and the most effective support mechanisms.

Field Visit to Latgale: Understanding Local Challenges First-Hand

The EC delegation traveled to Latgale to gain on-the-ground insight into the challenges faced by border municipalities, entrepreneurs, NGOs, and education sector representatives.

On 23 May 2025, the Latgale Planning Region (LPR) office had the honour of welcoming representatives from the Nordic Committee for Co-operation (NSK). Comprising senior public officials from all Nordic countries, NSK is responsible for the day-to-day operations of Nordic intergovernmental cooperation, including international collaboration.

Earlier, on 21–22 May, NSK held meetings in Riga at the Nordic Council of Ministers' Office. This marked the first time the Committee convened not only in Latvia, but in the Baltic States — a significant milestone that highlights the growing strength of Baltic-Nordic relations and the Nordic region’s continued commitment to deepening its presence and engagement in the area.

The three-day programme concluded with a visit to the Latgale region. During the visit, LPR had the opportunity to showcase cross-border cooperation projects developed in the region and its municipalities, many of which draw inspiration from Nordic practices. The visit offered NSK representatives valuable insights into the realities and issues of Latvia’s eastern border region.

On 16 April, we had the honour of welcoming a delegation from the Embassy of Hungary - H.E. Mr. György Urkuti, Ambassador of Hungary to the Republic of Latvia; Dr. Zsolt Páva, First Counsellor, Consul, and Head of Cultural Affairs; and Mr. Péter Soltész, Economic Attaché.

The delegation visited Latgales planning region, where Deputy Manager of the Latgale special economic zone Vladislavs Stankevičs, presented the work of the Latgale SEZ and highlighted its key benefits for both foreign investors and local businesses.

The Hungarian representatives also toured two prominent companies from Daugavpils – Latgale SEZ capital company Ziegler mašīnbūve SIA and Daugavpils lokomotīvju remonta rūpnīca AS – gaining insight into the region's industrial capabilities and investment potential.

As part of the events marking the 105th anniversary of the Patent Office, the Intellectual Property Award “Visionary” was presented on 8 September 2025 during a formal ceremony. This year’s recipient is “Light Guide Optics International” Ltd., a company operating within the Latgale Special Economic Zone (Latgale SEZ) and based in Līvāni.

Specialising in the development and production of optical fibres, fibre bundles, cables, and laser delivery systems, the company was recognised for its significant contribution to the advancement of intellectual property both nationally and internationally, as well as for its role in fostering economic growth in Latvia.

The “Visionary” award was established in 2023, with Aerones Engineering Ltd., a robotics firm serving the wind energy sector, being the inaugural recipient. Light Guide Optics International is only the second company in Latvia to receive this distinguished recognition, underscoring its leadership in innovation and intellectual property excellence.

Over the course of two days, experts, policymakers, and stakeholders gathered in Daugavpils to explore strategic development opportunities and address persistent challenges faced by Europe’s border regions, with a particular focus on Latgale. The Forum centred on enhancing cross-border cooperation, identifying growth drivers, and leveraging the region’s unique assets.

The first day of discussions focused on integrated regional planning, examining both horizontal and vertical governance frameworks. Participants analysed the role of functional zones as catalysts for regional growth and discussed service provision across administrative boundaries. Best practices and practical case studies from Latvia, Lithuania, and Estonia were shared, complemented by a collaborative workshop aimed at generating actionable ideas and strategies.