How to do business with Norway ? Mr Bj

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How to do business with Norway ?Mr Bjørn O.
Bjørnsen, Director, Central Europe and the
BalticsInnovation NorwaySerbian Chamber of
Commerce, 18 September 2007
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Innovation Norway

• Started its activities on 1 January 2004 by a
  merge of some important specialized institutions
• Subordinated to the Ministry of Trade and
  Industry
• 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
• 750 employees in offices distributed throughout
  all of Norways counties and in 30 countries. The
  Head Office is located in Oslo.

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Objective

• Innovation Norways 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 Norways 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
Regional knowledge of business and the
community Regional differentiation of
Innovation Norways products and services
Vadsø
Alta
Tromsø
Bodø
Steinkjer
Molde
Trondheim
Ålesund
Tynset
Førde
Lillehammer
Hermansverk
Hamar
Tinn
Bergen
Oslo og Akershus
Drammen
Tønsberg
Sarpsborg
Skien
Stavanger
Arendal
District Offices Local Offices
Kristiansand
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An organisation close to its markets
Brazil Bulgaria Canada China Czech
Rep. Denmark Estonia Finland France
Germany HungaryIndia Italy Japan Korea Latvia
Lithuania
Malaysia Poland Portugal Romania Russia
Singapore South Africa Spain Sweden
Thailand The Netherlands Turkey United
Kingdom USA Vietnam
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Some more facts about Norway of today
Export 2006 Euro 107 bln Of which export
of oil and gas Euro 53 bln Import 2006
Euro 67 bln Unemployment 2,7 Consumer
price index 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
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Norwegian exports 2005NOK 840 billion (estimated)
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Serbia Norway trade balance
Trade turnover January December Mill EURO ( rate 1 EURO8 NOK) Trade turnover January December Mill EURO ( rate 1 EURO8 NOK) Trade turnover January December Mill EURO ( rate 1 EURO8 NOK) Trade turnover January December Mill EURO ( rate 1 EURO8 NOK) Trade turnover January December Mill EURO ( rate 1 EURO8 NOK)

Exports from Norway Exports from Norway Exports from Norway 2005 2006
8,8 12,8
Iron steel products and products of plastics 56 Iron steel products and products of plastics 56

Imports to Norway Imports to Norway Imports to Norway 2005 200
5,1 6,9
Products of metall 40 Source Statistisk Sentralbyrå Products of metall 40 Source Statistisk Sentralbyrå
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Norwegian Business Activities in Serbia

• 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
well-functioning 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

• In coming Tourism
• Oil and Gas
• Health and bio technology
• Renewable Energy and Environment
• ICT
• Marine products
• Maritime
• Creative industries

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In coming Tourism

• Focus
• 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 worlds 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

• Renewable energy (wind and hydropower, wave and
  tidal, bioenergy, solar energy , other incl
  geothermal
• Hydrogen and fuel cells
• CO2-clean gas power station
• Energy efficiency

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Priority areas for the EU members, Poland the
Czech Republic and Hungary

• Most promising opportunities have been identified
  in
• Waste water treatment
• Upgrading, reconstruction and construction of new
  WWTPs, nitrogen and phosphorus removal
  technologies, sludge management
• Solid waste management
• Upgrading and reconstruction of landfills,
  biodegradable waste treatment, environment-friendl
  y incineration technologies
• Packaging and packaging waste recycling
• Brownfield remediation
• Renewable energy
• e.g. biomass use, small hydroelectric plants

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Priority areas for Turkey and Russia

• For Turkey the most promising opportunities have
  been identified in
• Alternative and renewable energy generation,
  especially
• Upgrading and reconstruction of the existing
  hydroelectric power plants
• Construction of new H.E.P.P, especially smaller
  plants with installed capacity up to
  15 MW
• For Russia
• Energy conservation activities, main focus on
• More efficient heat and electrical energy
  distribution and generation systems
• Less energy consuming technologies for various
  sectors of industry

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Marine food and Aquaculture

• Norway is the 2nd largest exporter of marine food
  after China.
• Total export was USD 4,2 bln in 2006.
• Farmed seafood about 52 of total export.
• Norway is producing 46 of the total world
  production of atlantic salmon , that is about
  600.000 ton in 2006
• Pelagic fish herring and macrell is primarily
  exported to Russia, Ukraine, Japan and Poland
• Norwegian consumption of seafood is about 100.000
  ton/year or more than 25 kg/capita

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Maritime Sector

• Ever since the days of sails, shipping has been
  one of Norways most important industries.Foreign
  trade statistics show that gross freight income
  from shipping reached almost Euro 10 bln.
• Freight income accounted for about 12 of total
  Norwegian export of goods and services (incl oil
  and gas).
• 1st January 2005 the Norwegian foreign going
  fleet comprised of 1.614 ships mostly very
  specialized carriers of oil, gas and other
  specilized cargo.
• The Norwegian-controlled offshore fleet is the
  second largest in the world after USA

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Maritime Sector shipbuilding and ship equipment

• Total turnover NOK 31 mrd, 18.000 employees
• 12 Shipyards.Turnover NOK 9,5 mrd, 4.000
  employees
• Suppliers of ship equipment 139 companies.
  Turnover NOK 12,3 mrd, 6.500 employees
• Ship consultants- 14 companies, turnover NOK 450
  mill
• Møre Region and the maritime sector
• 75 off all large offshore ships are designed in
  the area
• 50 off all large offshore ships are outfitted
  in the area
• 35 off all large offshore ships are owned in
  the area

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Norwegian clusters
Sector Region R D institutions Companies
Aquaculture technology Bergen, Hordaland Aas, Austvoll, Feeding Syst., Proocean, NorMær, Rabben
Aquaculture technology Trondheim Aqua., Frøytang, Superior
Biotechnology, marin Tromsø Bergen Fishery research Institute University of Tromsø
Biotechnology, farmasy Oslo University of Oslo University hospitals Amersham, Dynal, Axis, Photocure, Genovision
Biotechnology, agriculture Hamar region NLH Norwegian University of Life Sciences Geno As, Norsvin
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Norwegian clusters (2)
Sector Region R D institutions Companies
Building technology Oslo, Rogaland NTNU- Norwegian University of Science and Technology Oslo School of Architecture 20 architechts and engineering consultants, incl Snøhetta
Value added fish products (white fish and pelagic) Båtsfjord, Finnmark, Vestrålen, Måløy-MR, Egersund-Karmøy Melbu Domstein, 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 Trøndelag, regions along side western coast NTNU Norwegian University of Science and Technology , Kjeller Scanwind, UMOE Mandal, Vestas Kr.sand
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Norwegian clusters (3)
Sector Region R D institutions Companies
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 Clusters of companies in Green Business Norway and OREEC (Oslo Region Renewable Energy and Environment Cluster
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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 Rogaland Aker-Kværner, ABB
Plastic and composits Østfold
Shipbuilding Sunnmøre SINTEF, Trondheim 14 shipyards 80 subcontractors, 4200 employees
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Norwegian clusters (5)
Sector Region R D institutions Companies
Pleasure crafts/yachts Agder Fjord, Marex, NorSea, Nordkapp, Skipsplast, Draco, etc.
Space satellitt Oslo region Nordland/Troms Norsk Romsenter Kjeller University in Tromsø Narvik Regional College Nera Kongsberg Kongsberg Spactec, Andøya
Technical medical equipment Mjøs region Sintef Unimed 10 companies around Mjøsa lake
Paper Pulp Østfold, Buskerud and Nord-Trøndelag 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 NTNU- Norwegian University of Science and Technology, SINTEF

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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.n
o
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Starting business in Norway
Info available on the following items on
http//www.bedin.no/CWObjekter/Guide_starting-eng
elsk-TOC.shtml Register your business Type of
business entity Value added tax Accounting Employm
ent Taxation Import and export of goods Business
plan Who can tell
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Successfully doing business in NorwayBusiness
meetings and negotiationsSome 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 NorwayBusiness
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 NorwayBusiness
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 NorwayBusiness
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.
• 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.

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Successfully doing business in NorwayBusiness
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 !
• bjorn.bjornsen_at_invanor.no