Nineteen parties are fielding some 1,024 candidates for 100 seats in the single-chamber parliament, with surveys showing the conservative, business-friendly People's Party, led by current Defence Minister Atis Slakteris, is likely to do best – but not win a majority.
The election, only the fifth since independence from the Soviet Union in 1991, is the first since Latvia joined the European Union two years ago.
Since then, the Baltic state of 2.3 million has seen the most rapid growth in the EU as it catches up economically to older member states.
Last year, gross domestic product per capita (GDP) was at around 47 percent of the EU average, compared with 39 percent when the last parliamentary elections were held in 2002.
But the average monthly wage was just 350 euros last year, while pensioners received on average 115 euros a month.
Many parties have focussed on social issues in their campaign, and a poll released on the eve of the election showed that strategy has touched many people, in the country where many citizens, especially those living outside the capital, Riga, complain the economic boom has left them behind.
The poll showed the ruling, conservative People's Party leading the race for seats in the legislature, with 13.7 percent of the vote, followed by their current coalition partners, the Union for Greens and Farmers, with 12.4 percent.
Five other parties were expected to garner more than the five percent of votes cast required to get into parliament, the poll showed.
The 952 polling stations around the Baltic state open at 7:00 am local time (0400 GMT) and close 15 hours later at 10:00 pm.
While turnout in the last general election in 2002 exceeded 71 percent, fewer of the 1.45 million eligible voters are expected to cast their ballots this time.