Transcript Veidekke 02.12.03 - Norwegian Embassy in Serbia

How to do business with Norway ?
Mr Bjørn O. Bjørnsen,
Director, Central Europe and the Baltic`s
Innovation Norway
Serbian Chamber of Commerce, 18 September 2007
Innovation Norway
Started its activities on 1 January 2004 by a merge of
some important specialized institutions
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Subordinated to the Ministry of Trade and Industry
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Activity: Business development through loans and
financial support , focus on innovation,
internationalization and tourism, programs and indiviual
support, main focus on development in the districts of
Norway and the SMEs
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750 employees in offices distributed throughout all of
Norway’s counties and in 30 countries. The Head Office is
located in Oslo.
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Objective
”Innovation Norway’s objective is to
promote private- and socio-economic
profitable business development
throughout the country and to release
the commercial opportunities of the
districts and regions by encouraging
innovation, internationalisation and
profile-building.”
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Effective and result-oriented
• Around NOK 4 billion- Euro 500 mill - for the reinforcement of
Norwegian industry
• Innovation Norway contributes to the establishment and
protection of 7,000-8,000 jobs each year
• Customer surveys indicate that at least 90% of Innovation
Norway’s funds is devoted to projects that are regarded as
important for companies’ survival and profitability
development
• 70% of the companies who were promised funding in 2000
think that the projects will lead to a high degree of skills
development in one or more professional fields
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An organisation close to its customers
Alta
Vadsø
Tromsø
Bodø
• Regional
differentiation of
Innovation Norway’s
products and
services
Steinkjer
Molde
Ålesund
Trondheim
Tynset
Førde
Hermansverk
Bergen
Stavanger
Kristiansand
Tinn
Drammen
Tønsberg
Skien
Arendal
Lillehammer
Hamar
Oslo og Akershus
Sarpsborg
District Offices
Local Offices
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• Regional knowledge
of business and the
community
An organisation close to its markets
Brazil
Bulgaria
Canada
China
Czech Rep.
Denmark
Estonia
Finland
France
Germany
Hungary
India
Italy
Japan
Korea
Latvia
Lithuania
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Malaysia
Poland
Portugal
Romania
Russia
Singapore
South Africa
Spain
Sweden
Thailand
The
Netherlands
Turkey
United
Kingdom
USA
Vietnam
Facts About Norway
Official name
Kingdom of Norway
System of government
Constitutional monarchy
Parliamentary democracy
The Royal House of Norway
Harald V, King of Norway, born 21 February 1937
Sonja, Queen of Norway, born 4 July 1937
Haakon, Crown Prince of Norway, born 20 July 1973
Mette-Marit, Crown Princess of Norway, born 19 August 1973
Ingrid Alexandra, Princess of Norway, born 21 January 2004
Sverre Magnus, Prince of Norway, born 3 December 2005
Population
4 681 134 inhabitants as of 1 January 2007
Norway has an indigenous Sami population as well as five national
minorities, defined as groups with long association with Norway.
Official languages
Norwegian (the two forms Bokmål and Nynorsk)
Sami (equal status with Norwegian in parts of Troms and Finnmark counties)
Religion
Protestant Christianity
Currency
Norwegian kroner, NOK
1 EUR = NOK 8.24 as of November 2006
1 USD = NOK 6.40 as of November 2006
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Some more facts about Norway of today
Export 2006
Of which export of oil and gas
Euro 107 bln
Euro 53 bln
Import 2006
Euro 67 bln
Unemployment
Consumer price index
2,7 %
0,4 %
GPD per capita (NOK 461.665)
Euro 57.708
GDP growth 2007
about 5 %
Norway is presently experiencing a very high economic
activity. Labour market capacity limits are being challenged in
both the private and public sector. As a result a need for
buying capacity outside Norway as well as import of workers
from abroad.
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Exports of trad. Commodities - Share 2005
Asia
9,9 %
NorthAmerica
10,0 %
SouthAmerica
1,4 %
Oceania
0,6 %
Africa
1,4 %
Europe
76,7 %
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Norwegian exports 2005
NOK 840 billion (estimated)
Trad.commodities
27,6 %
Ships and Rigs
1,0 %
Oil and Gas
50,7 %
Services
20,7 %
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Serbia – Norway trade balance
Trade turnover January – December Mill EURO ( rate 1 EURO=8 NOK)
Exports from Norway
2005
2006
8,8
12,8
2005
200
5,1
6,9
Iron & steel products and
products of plastics =56 %
Imports to Norway
Products of metall = 40 %
Source: Statistisk Sentralbyrå
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Norwegian Business Activities in Serbia
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Telenor – largest single foreign investment ever in Serbia
Albartos – high tech shipping
Elopak – production line of liquid food packaging, drinking
cartons
Rapp Zastava – ship engines
Technor – hydro power projects in Srbska
Statkraft – energy projects
NTE – Nord Trøndelag Energi - energy projects
SINTEF – SME projects
SIVA/SINTEF – development of company incubators
Norwegian Airshuttle – low cost airline with direct flights to
Belgrade
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Business in Norway
Norway is a highly developed democratic society with a strong
and stable economy that offers attractive opportunities
for international business enterprises.
Foreign capital, knowledge and technology have traditionally
played an important role in the development of Norwegian
trade and industry, and international cooperation has become
even more important to Norway's growth in an increasingly
global economy.
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Business in Norway (2)
Though Norway has chosen not to become a member of the
European Union (EU), Norwegian and foreign owned
companies located in Norway have full access to the EU
market – including the new member states – through the
European Economic Area (EEA) agreement.
There is a stable and transparent political climate with a wellfunctioning public sector that makes it relatively simple and
straightforward to run a business enterprise.
Formal requirements to be met when establishing a business
in Norway are few, and costs are low.
Norway has a flat 28% corporate and capital gains tax rate
and a social security system that provides national health and
unemployment insurance.
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Norwegian Strategic Business Areas
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In – coming Tourism
Oil and Gas
Health and bio technology
Renewable Energy and Environment
ICT
Marine products
Maritime
Creative industries
In coming Tourism
Focus :
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Sweden
Germany
Denmark
UK
Netherlands
USA
France
Italy
Spain
Japan
New markets:
• Russia
• China
• Poland
Innovation Norway has offices with professional staff in all
these markets running tourist projects
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In coming Tourism (2)
2006 : Number of overnight guests in hotels in Norway was
3,94 million of which 3 million were tourists
Aim for 2010 : 1 million overnight guests per year
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Oil & Gas
Exploration of oil & gas at the Norwegian continental shelf
started in 1971.
Presently oil/gas exploration takes place at 51 different fields
About 40 % of the registered resources are not yet explored.
Oil & gas products is the larges single export ”product” from
Norway and represents 47 % of the total export – about NOK
510 bln or Euro 64 bln.
About 80.000 persons are employed in the oil & gas sector
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Oil & Gas (2)
Norway is today the world`s 3rd largest exporter of natural
gas , in 2006 total production was about 87 bln scm
(standard cubic meter).
Total oil production is now about 2,5 mill barrels/day (incl
NGL and condensate). By this Norway is the 8th largest
producer of oil in the world and the 3rd largest exporter of
oil.
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Oil & Gas Technology supply industry
The Norwegian oil & gas industry cluster is expanding its
international business activities and is now involved in the most
challenging global projects –mostly offshore – mainly in North Sea,
China, Russia, Middle East, Mexico gulf .
Estimated total turnover in 2005 was NOK 50 bln (Euro 6,2 bln) and
the aim for 2010 is NOK 80 bln , about Euro 10 bln.
The largest part of the foreign activities and turnover is handled by
the 20 largest companies.
The oil & gas supply industry comprises of about 3.000 companies.
Most of the companies that work on the international markets are
member of the INTSOK network:
www.intsok.no
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Health , medical - and bio technology
Norway has one of the worlds largest per capita investment in new hospitals.
In parallel to such projects Norwegian companies are developing new
products and solutions , incl focus on ICT solutions to secure safe and good
communication between the different levels in the health sector.
This incl tele medicin and standardization of electronic solutions. As well as
new operating methods.
Norway has around 110 companies within bio technology and about 200
companies within medical technology, mainly SMEs.
The companies are active within ICT health, electronics, sensor technlogy,
equipment for laboratories, rehabilitation, medical bio technology etc. Other
areas include gene technology, cell biology, micro/nano technology and bio
informatics
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Focus areas within Renewable energy and environment
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Renewable energy (wind and hydropower, wave and tidal,
bioenergy, solar energy , other incl geothermal
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Hydrogen and fuel cells
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CO2-clean gas power station
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Energy efficiency
Priority areas for the EU members,
Poland the Czech Republic and Hungary
Most promising opportunities have been identified in:
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Waste water treatment
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Solid waste management
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Upgrading and reconstruction of landfills, biodegradable waste treatment, environment-friendly
incineration technologies
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Packaging and packaging waste recycling
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Brownfield remediation
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Renewable energy
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Upgrading, reconstruction and construction of new WWTPs, nitrogen and phosphorus removal
technologies, sludge management
e.g. biomass use, small hydroelectric plants
Priority areas for Turkey and Russia
For Turkey the most promising opportunities have been identified in
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Alternative and renewable energy generation,
especially
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Upgrading and reconstruction of the existing hydroelectric power plants
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Construction of new H.E.P.P, especially smaller plants with installed capacity
MW
For Russia
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Energy conservation activities,
main focus on
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More efficient heat and electrical energy distribution and generation systems
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Less energy consuming technologies for various sectors of industry
up to 15
Marine food and Aquaculture
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Norway is the 2nd largest exporter of marine food after
China.
Total export was USD 4,2 bln in 2006.
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Farmed seafood about 52 % of total export.
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Norway is producing 46 % of the total world production of
atlantic salmon , that is about 600.000 ton in 2006
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Pelagic fish – herring and macrell – is primarily exported to
Russia, Ukraine, Japan and Poland
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Norwegian consumption of seafood is about 100.000 ton/year
or more than 25 kg/capita
Maritime Sector
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Ever since the days of sails, shipping has been one of
Norway`s most important industries.Foreign trade statistics
show that gross freight income from shipping reached almost
Euro 10 bln.
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Freight income accounted for about 12 % of total Norwegian
export of goods and services (incl oil and gas).
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1st January 2005 the Norwegian foreign going fleet
comprised of 1.614 ships – mostly very specialized carriers of
oil, gas and other specilized cargo.
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The Norwegian-controlled offshore fleet is the second largest
in the world after USA
Maritime Sector – shipbuilding and ship
equipment
Total turnover: NOK 31 mrd, 18.000 employees
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12 Shipyards.Turnover NOK 9,5 mrd, 4.000 employees
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Suppliers of ship equipment – 139 companies. Turnover NOK
12,3 mrd, 6.500 employees
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Ship consultants- 14 companies, turnover NOK 450 mill
Møre Region and the maritime sector:
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75 % off all large offshore ships are designed in the area
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50 % off all large offshore ships are outfitted in the area
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35 % off all large offshore ships are owned in the area
Norwegian ”clusters”
Sector
Region
R & D institutions
Aquaculture
technology
Bergen, Hordaland
Aas, Austvoll,
Feeding Syst.,
Proocean, NorMær,
Rabben
Aquaculture
technology
Trondheim
Aqua…., Frøytang,
Superior
Biotechnology, marin
Tromsø
Bergen
Fishery research
Institute
Biotechnology,
farmasy
Oslo
University of Oslo
Biotechnology,
agriculture
Hamar region
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Companies
University of Tromsø
University hospitals
NLH – Norwegian
University of Life
Sciences
Amersham, Dynal,
Axis, Photocure,
Genovision
Geno As, Norsvin
Norwegian ”clusters” (2)
Sector
Region
R & D institutions
Companies
Building technology
Oslo, Rogaland
NTNU- Norwegian
University of Science
and Technology
20 architechts and
engineering
consultants, incl
Snøhetta
Oslo School of
Architecture
Value added fish
products (white fish
and pelagic)
Båtsfjord, Finnmark,
Vestrålen, MåløyM&R, EgersundKarmøy
Melbu
Lerøy
Airport technology
Oslo region
Jotron, Ocas, Park Air
Renewable energy,
fuel cells
Oslo, Grenland,
Nordland
NTNU -Norwegian
University of Science
and Technology,
Kjeller
Scanwafer, Norcell
Renewable energy,
wind
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Trøndelag, regions
along side western
coast
NTNU Norwegian
University of Science
and Technology ,
Scanwind, UMOE
Mandal, Vestas
Kr.sand
Domstein,
Norwegian ”clusters” (3)
Sector
Region
R & D institutions
ICT
Oslo
Arendal
Halden
Steinkjer
University of Oslo
and a number of
regional colleges
Mechanical
engineering and
automatisation
Jæren
JÆRTEK
13 companies, 2600
employees. ABB
Autom.
Mikro- electronics
Trondheim, Leksvik
NTNU - Norwegian
University of Science
and Technology, SINTEF
Lyng, Navia, Oceanor,
Corrocean
Environmental
Technology
Counties in southern
Norway + Trøndelag
region
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Companies
Clusters of
companies in Green
Business Norway and
OREEC (Oslo Region
Renewable Energy
and Environment
Cluster
Norwegian ”clusters” (4)
Sector
Region
R & D institutions
Companies
Mobile
commiunication
solutions
Oslo
Opera, Birdstep,
Telenor
Furniture
Møre & Romsdal
Ekornes, Fora Form,
Furnes, Helland,
Hellegjerde, Pedro,
Stokke
Oil and Gas
technology
”Engineering valley”,
Asker, Bærum, Oslo
Aker-Kværner, ABB
Rogaland
Plastic and composits
Østfold
Shipbuilding
Sunnmøre
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SINTEF, Trondheim
14 shipyards + 80
subcontractors, 4200
employees
Norwegian ”clusters” (5)
Sector
Region
Pleasure
crafts/yachts
Agder
Space & satellitt
Oslo region
Nordland/Troms
R & D institutions
Fjord, Marex, NorSea,
Nordkapp, Skipsplast,
Draco, etc.
Norsk Romsenter
Nera
Kjeller
Kongsberg
Kongsberg Spactec,
Andøya
University in Tromsø
Narvik Regional
College
Technical medical
equipment
Mjøs region
Paper & Pulp
Østfold, Buskerud
and Nord-Trøndelag
Companies
Sintef Unimed
10 companies around
Mjøsa lake
Norske Skog
(Hønefoss,Halden, Tofte
Borregaard (Sarpsb.)
LM Petterson (Moss)
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Norwegian ”clusters” (6)
Sector
Region
R & D institutions
Companies
Wood industry
Hedmark and part of
Oppland
Fagernes, Norwegian
University of Life
Sciences, Ås
Moelven, Forestia,
Eidsskog-Stange
skogene
Trondheim R & D
Area
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NTNU- Norwegian
University of Science
and Technology,
SINTEF
Where to obtain market info ?
Oslo Chamber of Commerce can produce a MINI MARKET
REPORT showing the potential for your products on the
Norwegian market.
The report will include:
- general market trends in Norway for your type of products
- distribution channels
- competitors and other operators in the market
- some trade leads and relevant contacts, such as branch
organizations etc.
Total price for the report is EUR 700.-.
http://www.chamber.no/
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Where to obtain market info ? (2)
The official Norwegian Trade Portal:
www.nortrade.com
Here you can also by a click find the official Norwegian Trade
Directory as well as a lot of relevant and detailed info about
companies as well as how to do business with Norway
The website of the Norwegian Embassy in Belgrade:
www.norveska.org.yu
The website of the Serbian Embassy in Oslo:
www.serbianembassy.no
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Starting business in Norway
Info available on the following items on :
http://www.bedin.no/CWObjekter/Guide_starting-engelskTOC.shtml
Register your business
Type of business entity
Value added tax
Accounting
Employment
Taxation
Import and export of goods
Business plan
Who can tell
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Successfully doing business in Norway
Business meetings and negotiations
Some hints….
Pre-meeting preperations
Appointments should be set up well in advance.
Intermediaries are less important to set up initial contacts and
securing the deal than in many other cultures.
Dress conservatively – at least until the host opens up for an
open-shirt dress code.
Be punctual. If you are only a few minutes late for a business
meeting, call your counterpart and explain the delay
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Successfully doing business in Norway
Business meetings and negotiations
Start of meeting
Exchange of business cards follows after an initial small talk.
Business people are not addressed by their titles. Norwegians and
Danes are generally less formal than Germans and Swedes and
address each other rather informally. First names are used less than in
the US, so let your counterpart set the stage for how to address each
other.
Norwegians are direct and do not focus on rituals and social
environments for the negotiations. In the initial meeting Norwegians
are ready to talk business after only a few minutes of small talk.
During business meetings Norwegians are straightforward and direct.
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Successfully doing business in Norway
Business meetings and negotiations
Presentation and negotiation tactics
Norwegian companies are generally willing to pay for quality. They are also willing to
switch suppliers to get better terms or better quality.
You need to build trust. Bring a good business presentation. Emphasise facts, benefits
and profitability during your presentation. It may be wise to give an honest impression
by even pointing out certain weaknesses/disadvantages. Your personality and social
skills are of some initial importance but of little importance when decisions are made.
Negotiators will be oriented towards facts and figures rather than the broad corporate
view.
Do not over promise, and make sure that you keep your deadline/schedule promises.
Otherwise Norwegians quickly lose interest.
To Norwegians “New” is not necessarily better. You need to present a convincing case –
not based on emotions but on usefulness and technical quality. New concepts have to
be proven as high quality, practical and already well tested.
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Successfully doing business in Norway
Business meetings and negotiations
Presenting a proposal
If you have made a proposal you will need to stick to it. To your
Norwegian counterpart trust is important. Turning around and changing
or adding surprising new elements is generally not popular. It is also
hard to renegotiate terms after an agreement has been made, even if
circumstances have changed.
Norwegians are normally not tactical negotiators. If they say your
product is too expensive they probably mean it.
Present a firm, realistic and competitive initial offer and expect some
bargaining. Yield something for psychological reasons but do not drop
your initial offer so much that the initial offer appears as a bargaining
technique. The counterpart could perceive that as dishonesty.
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In Norwegian corporations there may be a low level of individual risk
taking – making it difficult to get the final signature even when you
have convinced the negotiator. To press for greater speed can easily
backfire.
Successfully doing business in Norway
Business meetings and negotiations
Dos and don'ts. In general
Avoid excessive gift giving or any other action that can be perceived as a bribe.
Scandinavia probably ranks as the most corruption free area in the world.
Hard selling techniques will get you nowhere in Norway. Avoid bragging and
exaggerations and make a well-documented presentation that gets your counterpart
involved and lets him/her buy from you rather than you selling through one-way
communication.
Norwegian body language and tone of voice is less expressive than in North America
and southern countries. Do not misinterpret this as lack of interest.
Southern Europeans and South Americans should be aware that interrupting a
Scandinavian speaker is considered rude.
More and also other relevant hints at: www.norway.com/businesslinks
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Visit our website at: innovationnorway.no
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Thank you very much for your attention !
[email protected]
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