Vidzeme, Latvia

GENERAL INFORMATION

Region name: VIDZEME

Region symbol 

 Population:

The region has 235 863 inhabitants (beginning of 2009), or about 11% of the total national population of Latvia; nearly 60% of them live in rural areas. The population has a tendency to decrease every year. Depopulation is caused both by natural decrease as well as migration on economic basis. By the number of inhabitants, Vidzeme planning region is the smallest in Latvia. Population density is around 12 people per sq.km (in the rural areas - 7 people per sq.km) - it is the lowest among the 51 second-level administrative territories in the Baltic States.

Size: The total area of region is 15 346 km2, which is almost 24% of the total area of Latvia

Map:

Source: The Development programme for 2007-2013 of Vidzeme Planning region

Vidzeme planning region lies in the North-East of Latvia. In the North it borders with the Republic of Estonia, in the East - with the Russian Federation. The neighbor in the West is the economically thriving Riga planning region. In the South and Southwest the Vidzeme borders with Latgale and Zemgale planning regions.

Employment:

Main sectors of employment in Vidzeme region are: forestry and wood processing, food and beverage production, manufacturing industry and tourism industry.

Administration:
Since July 1, 2009, when the administrative territorial reform was finished, there are 25 local municipalities called “novadi” and one municipality with the status of republican city – Valmiera city - functioning in the region. Till that time there were 127 local municipalities in the region. Novadi are amalgamated local governments that vary considerably by size, number of inhabitants (from 2316 inhabitants in Naukšēnu novads up to 28100 inhabitants in Madonas novads) and level of economic development.
Since January 2009 the Vidzeme planning region is functioning. It is a derived public entity which main functions are planning and co-ordination of regional development, and co-operation between local government and other state administrative institutions. Vidzeme planning region is also very actively cooperating with international partners in France, Russia, Finland and also other countries in order to elaborate and carry out the projects within the activity of regional development support.
Contacts of Vidzeme planning region administration:
Bērzaines iela 5, Cēsis, LV 4201, Latvia
Phone/ fax: +371  6 41 27 838
Web: http://www.vidzeme.lv/

General description of Vidzeme region:

Vidzeme region is one of five regions in Latvia. The other regions are: Kurzeme, Zemgale, Latgale and Rīga region (surrounding the capital of Latvia Riga). Vidzeme has always attracted a significant number of tourists with its famous nature, culture and history heritage. The ancient towns of the region, for ex., Cēsis, Madona, Alūksne also the industrial centre of Vidzeme – Valmiera city - each with its charm, its history and culture, keep significant heritage of culture and architecture. Vidzeme is rich in forests, which cover approx. 50% of its total, area and constitutes 27% of the total forest territory of the country. 35% of the region’s territory is farmland. In Vidzeme region you will also find the highest point in Latvia Gaiziņkalns (312 m over sea level).

Education:

55% of the region’s inhabitants have higher, professional and/or secondary education - in this field the region slightly differs from other regions, except for Riga. There are no significant disparities in the level of education among the districts, as it is in other regions. Vidzeme is the only region with only one permanent higher education institution for the whole region. Establishment of Vidzeme University of Applied Sciences (in Latvian: Vidzemes Augstskola) in 1996 was a significant step towards human resource development in the region. Vidzeme University of Applied Sciences provides higher education in business administration and economics, engineering (at present – IT), political science, communication and PR, tourism and hospitality management. It has also established a Language study and Examination centre and an Institute of Socio-technical System Ingeneering. All in all Vidzeme University of Applied Sciences offers 13 study programmes. University in year 2009 has 1423 students; among them 65 are full time students.
Primary, secondary and professional education system in Latvia is experiencing a severe reform recently, so the number of schools will vary. Also the current administrative reform has made an impact on the education system in region and in the whole country as well. Main reason for that is significant and constant decrease of number of pupils.

Companies:

Vidzeme planning region has approximately 3000 active companies or an average of 12 active companies per 1000 inhabitants. For many years the national average has been 17 companies per 1000 inhabitants, and in EU this figure varies from 40 to 60. Mainly there are SMEs. Main sectors of business are as follows:

Forestry and wood processing
In Vidzeme approximately 400 out of 3000 companies operate in the forestry and wood processing sectors. Mainly they are sawmills, and only small part of them process wood, mostly produce furniture. The wood processing companies of Vidzeme by specialisation can be divided in two basic categories: those producing industrial products and those producing goods for end consumers. Largest part of the production output is exported, however, the share of products made for the local market is growing.

Agriculture
Although the share agriculture and thereby its significance in the region’s GDP is dropping, agriculture is still an important economic activity. Farm structure is rather different and business development potential is limited. This tendency is specifically present in milk cattle-breeding sector, where many of the farms grow 1 to 5 cows with low productivity. Besides the traditional sub-sectors, farmers of the region do a number of non-traditional forms of agricultural activities like cranberry and mushroom growing, bee-keeping, goat-keeping and production of goat cheese, pheasant breeding, hunting, etc. Rural tourism is regarding as one of the options for economic diversification in rural districts. At the beginning of 2001 there were 25785 farms in Vidzeme. The average territory of these farms was 28 ha. Only 72 farms exceeded the area of 100 ha.

Food and beverage production
In 2000 dairy plant “Vidzemes piens“, located in Valmiera, was the fourth largest dairy in Latvia and was number 179 in the TOP 300 list of Latvia’s largest companies by net turnover in 2000. Today the joint-stock company “Valmieras piens” is the biggest milk processing company outside the capital Riga and the only in Latvia that produces full dairy product choice: milk, kefir, butter, cream, curds, cheese, yogurt, ice-cream, as well as dry milk powder. (more information: http://www.vpg.lv/)

Other manufacturing industry
Textile production in Vidzeme region is represented by “Valmieras stikla šķiedra”, which the only company in this field of activity in the region. This company nowadays is the largest producer and taxpayer in Vidzeme and also one of the largest enterprises of the chemical and textile industries within the Baltic States. “Valmieras stikla šķiedra” has been specializing in the production and processing of glass fibre for five decades. The company exports more than 95% of its products. (more information: http://www.vss.lv/)
Another significant manufacturer in Vidzeme region is “Valpro Corp”, Ltd, that is one of the major manufacturing companies not only in Latvia, but also in the world market. “Valpro Corp”, Ltd, is among the world’s leading manufacturers in producing fuel metal cans, fire-extinguisher shells and fire-extinguishers. Only 5% of the produced fire extinguishers are sold on the local market. (more information: http://www.valpro.lv/)
Company “Lode” is the largest brick producer in the Baltic countries. It produces a wide variety of clay ceramics products like bricks, windowsills, tiles, floor-tiles, etc. The products are sold throughout the Baltic Sea region to Poland, Russia, Lithuania, Estonia, and other countries.   (more information: http://www.lode.lv/)
The joint-stock company “Seda” is the largest peat processing and export company in Latvia. It was established in 1954, but in 1993 was reorganized and became a joint-stock company. The total area of peat milling and extracting is 2`000 ha. For the purposes of sale, the peat is transported by sea, by land, in containers and trucks, as well as a deck-cargo. (http://www.seda.lv/)
The first raps bio fuel plant in Latvia was established near Valmiera city. This plant is run by “Delta Rīga” company, that was first on post soviet union space, who built and started biodiesel production factory in year 2001. At this moment factory produces 12000 tonns of biodiesel fuel per year.

Other sectors:
Tourism has notable impact on Vidzeme economic growth. To support the development of this sector there is established Vidzeme Tourism Association, as well as an impressive number of tourism information centres. The most popular tourism resources in Vidzeme region are historical and cultural monuments - 38% of respondents include them in the route of a one-day visit. Vidzeme offers opportunities to experience different kind of tourism activities: open-air sports activities (walking, cycling, rafting, camping tourism and fishing in summer, skiing in winter), rural tourism, eco-tourism, adventure tourism etc. Vidzeme region is rich also with castles and churches. Also the ancient towns and parishes of region, each with its charm, its history and culture, keep significant heritage of culture and architecture.

Innovative companies:

LLC “ForestOwnersConsultingCenter” (FOCC) is one of the largest forest management companies in Latvia, with more than 11 years of work experience. Their tasks are providing consultations both for existing and emerging forest owners, as well as helping to find solutions for all questions related to forest management.
The range of services offered by FOCC includes forest inventory by laser scanning. Company offers high-precision forest inventory where data are obtained by aerial platform using specially equipped aircraft and laser scanner. Company also offers aerial photographing and making orthophoto images/maps they do digital terrain models and 3D models. More info: http://www.mikc.lv/

VARIS Toys was founded in 1988 and the company has been producing a variety of wood products, such as finished wood panels, furniture parts and complete solid wood furniture pieces, mostly for export to Denmark, Germany and Finland. Since the year 2001 VARIS Toys has also been producing children wooden construction sets. All sets, which are being sold in the EU market under the brand name of VARIS, meet all the safety EU requirements. Their business is manufacturing high quality wood toy products. Each wood toy product is designed to use the joy of play to contribute to the educational and physical development of children. It is very important to develop children mind and learning capability through play.
More info: http://www.varis.lv/

Tīrības nams – a innovative and fast developing company providing laundry services, dry cleaning and cleaning of premises all over Latvia, was established in 1996, now employ 150 workers. A Finnish partner invested in the company, and at the beginning it developed as a family enterprise. It has paid a great attention to specialization – white, black, hygienic line, offering also for the first time in Latvia termo repair, boot service. It is the market leader in full textile service. The company pays a great attention to ecology aspects by water recycling, hot air saving etc.

Small and developing innovative companies or companies with innovation potential are operating in the business incubators that are located in region. For ex., 20 micro enterprises operate in Valmiera business and innovation incubator, web: http://www.vbii.lv/

Cesis Medieval castle in Vidzeme region

Gauja River

Winter time in Vidzeme region