East Estonia consists of four very distinct counties: Ida-Viru, Lääne-Viru, Jõgeva, and Järva. The total area of this region is around 12,000 sq km, and the population in 2023 was about 250,000. East Estonia is an industry-orientated area with plenty of space available near logistical and natural resources. The timber industry, the manufacture of building materials, energy and the metal industry have an essential role to play in the region’s economy.
The region is characterized by low manufacturing setup costs, the presence of supporting industries, highly-developed infrastructure, and a smooth transportation system with inland transport, rail connections, and ports. It is an excellent logistical location with substantial opportunities for further efficient investments.
Eastern Estonia is a great location for European enterprises looking for a nearshoring relationship to bring manufacturing closer to their customers and make the supply chain more predictable and transparent.
Ida-Viru County is located in the northeastern part of Estonia. The region has a strong vision to lead the green transition and sustainability in Estonia. The region is experienced in metallurgy, chemical, and energy industries, which have relied on fossil fuels in the past. However, during the recent decade and in the future, it has a firm goal to shift the target from fossil fuels to be the leader in renewable energy and economic diversification.
The region has a long history of industrial development – the Kreenholm textile factory was opened in 1856. At one point, the company’s cotton spinning and manufacturing mills were the largest in the world.
The county’s capital is the town of Jõhvi; nevertheless, Narva is the largest town in the county in terms of population and, at the same time, the third-largest city in Estonia after Tallinn and Tartu.
Striving for climate neutrality can improve Estonia´s energy security, make Ida-Viru County’s economy more sustainable, encourage new regional investments, and increase companies’ competitiveness.
Estonia’s Just Transition Fund (JTF) plan focuses on two strands, “Economy and labor” with €273 million and “Environment and social inclusion” with €66.74 million of triggering measures.
The Just Transition Fund by the European Commission has allocated €354M to Ida-Viru County, from which Neo Performance Materials received the first-ever grant (up to €18,7M) for a planned sintered rare earth magnet manufacturing plant in Estonia. The Canadian company has another strategic company – NPM Silmet OÜ – as its subsidiary in the same region.
There are two university colleges, Tartu University Narva College and TalTech Virumaa College in Kohtla-Järve; and two major institutions of vocational education in the region. In 2021, several well-known entrepreneurs in Estonia opened a coding school in Jõhvi. The school helps to reduce the growing demand for software developers in Estonia while making the eastern region a desirable place to study and offering more opportunities for cooperation with academia.
Ida-Viru Investment Agency Foundation (IVIA) is a development organisation created by the public sector that is developing five industrial and business parks in Ida-Viru county, the property owner with supporting infrastructure. IVIA’s parks include the Baltic Chemical Park, which features the Plug & Play concept for chemical production. IVIA aims to attract and support new industrial and logistic companies and create new workplaces. Modern industrial parks, grants available – YouTube
The main port in the region – Port of Sillamäe – is located in the North-East of Estonia, 25 km from the border between the European Union and Russia and is open and navigable all year round. The most widely used option for cooperation is to transport all types of export, import or transit cargoes through the port, using the services of operating terminals and a railway station. Another option is to set up a factory in the industrial park located in the port for cargo processing (terminal, distribution center, etc.), development of on-site production (plant), or provision of services related to activities of the port and/or its partners.
Lääne-Viru is situated in Northern Estonia, on the southern coast of the Gulf of Finland. The capital of the county is Rakvere – a town of 15 000 people. The economy of Lääne-Viru is characterized by strong brands.
The largest enterprises of Lääne-Viru county operate in the Food and Timber industries, furniture, metals and building materials production. In addition to the county capital and regional business hub Rakvere, other major entrepreneurial regions include the cities of Kunda and Tapa, where several important industries can be found. Industry in these regional centers is supported by Port of Kunda and Tapa Army Base. Large infrastructure projects have a significant impact on the development of industry in the region – especially the Port of Kunda and the development of shipping routes there.
Rakvere, an administrative center of the county is constantly contributing to the economic and cultural development of the region. In the summer of 2020 a new open-air entertainment center with 4,200 seats, spreading on almost 7 hectares and including an amphitheatre, was completed and opened to the public. The unique center can be used for various cultural events, concerts, and leisure purposes and will attract both Estonians and visitors from all over the world.
Jõgeva County is situated in the Eastern part of the country, the county center being the town of Jõgeva. The region is home to large fields and forests, hence the key industries: Food and Timber. Most of Jõgeva’s businesses are SMEs, scattered all over the county. Although traditionally an agricultural region with efficient value chains, the strong tourism sector is also emerging in the area (leisure and sports centers, sporting and cultural events).
Jõgeva, located in a valley with flat slopes, is known as the cold capital of Estonia. On 17 January 1940, the temperature of 43.5 degrees below zero was measured at the Jõgeva weather station, which marks the Estonian frost record.
Jõgeva county is the location of the Estonian Crop Research Institute, which continues the long-established traditions of field crop breeding and agrotechnical research on the environmental-friendly and effective agrotechnology of field crops, but also on plant protection, plant health and fertilization.
In geographical terms, Järva county is situated in the middle of Estonia with two major national highways crossing each other at Mäo – excellent accessibility to all directions of Estonia. There are several industrial parks along these highways. The center of the county is the town of Paide.
Järva county has a large amount of grain and feed fields, and thick forests. The county is known for enterprises engaged in Timber processing and engineering, and timber companies here are prone to innovation and hi-tech/clean-tech production. Thanks to fertile soils, there are also several agricultural enterprises and Food industries in the region. The manufacture of building materials and the metal industry are well-developed as well.
Järva County is located in the very heart of Estonia, so it is no wonder that even the crossroads of Estonian medieval roads is located here. This meaningful place is also home to the Estonian Bicycle Museum in Väätsa with one of the largest bicycle collections in Northern Europe.
The map of East Estonia shows major strategic assets such as transportation hubs, industrial parks and educational institutions of the region. To go into more detail, these websites can be useful when interested in East Estonia:
You are also welcome to send us a request for personal e-consulting to obtain more specific information.
Estonia is a cashless society with over 99% of financial transactions occurring digitally. Electronic ID and Blockchain are widely used in FinTech applications. 80+ FinTechs ranging from innovative startups such as Wise to Blockchain leader Guardtime make Estonia a global centre of excellence for FinTech.
Estonia is the world’s most digitally enabled nation, offering a unique combination of talent, environment, and innovation. Our IT R&D ecosystem enjoys global proof of concept, being trusted by global organisations such as Kuehne+Nagel and NATO and producing unicorn startups like Wise and Bolt.
Estonia has a sizeable food industry which benefits from ecological raw materials, skilled workers and modern production facilities. With an established export capability and growing application of food science and technology, Estonia is the ideal location for export and R&D oriented investment.
Estonia is not only a pioneering digital society, which has found convincing answers to the challenges of digitalization, but it also is a very green country. There is a strong societal and political will to utilize the capabilities and ecosystems. These have been developed to tackle the challenges of decarbonization of the economy and to become once again a leading player – in CleanTech and GreenTech.
Defence systems have always been a focal point for Estonia. The country has built very capable defence army consisting of a professional army, reserve forces, and national defence league, complimented by NATO allied forces. Over the years technology entrepreneurs and engineers have teamed up with the army to develop world-class solutions for the global defence industry. When we mean defence, we mean business.
Metaverse is the parallel universe or a unified universal virtual world, facilitated by the use of virtual and augmented reality headsets. In addition to the fact that existing products and services can be transferred to the Metaverse, it achieves a completely new economic environment and opportunities to create and market products and services that are unique to the Metaverse. Simply said, Metaverse has no limits in Estonia.
Estonia developed X-Road, its proprietary decentralised, distributed system in 2001 and has utilised Blockchain since 2008. World-class technical skills supported by practical experience implementing public and permissioned Blockchain’s place Estonia at the forefront of the emerging Blockchain economy.
Patient records in Estonia are digitised and secured by the Blockchain, providing a single immutable data source for healthcare professionals. With a unique digital platform and collaborative ecosystem, Estonia is positioned to lead on preventative medicine, patient self-treatment and industry efficiency.
Estonia has a diversified energy sector which comprises long-standing expertise in oil shale, a sizeable renewables sector and growing CleanTech capability. World-class expertise within a highly digital, pro-business environment will see Estonia play a leading role in the energy revolution
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Estonia’s marine sector specialises in the design and build of small and medium-sized commercial and leisure vessels. Centuries long expertise, cutting-edge application of IT and a flexible approach make Estonia a competitive location for innovation and export-oriented production.
What is it like to run a business in Estonia? How to benefit from the e-solutions and the efficiency of our business culture? What are the opportunities in specific sectors? Who to partner up with?
The Estonian Investment Agency’s team is happy to help you via its complimentary e-Consulting service, organize online or offline follow-up events such as virtual investment visits and guide you through the fairly simple process of investing in Estonia.