# Presentation: 615546

## Doing Business in Norway and the Nordic Region

**Vidar Keyn**
**Senior Commercial Specialist**
- Embassy of the United States of America
- Oslo - Norway

## GeographyThe Nordic Region

- Including:
- Iceland
- The Faeroe Islands (DK)
- Greenland (DK)

- Norway

- Denmark

- Sweden

- Finland

- Note: Not covered in this presentation.

**Notes:**
Denmark is part of larger region, the Nordic Region, consisting of Denmark, Sweden, Norway and Finland.  Iceland, the Faeroe Island and Greenland are also part of this region, but we will not focus on them today. The Nordic countries are in many ways similar and many foreign companies look at it as part of a region, not only a single market.

## Comparably Large EconomiesTotal GDP 2006 Est.

**The Nordics:**
- Sweden: 	$371 billion
- Norway: 	$261 billion
- Denmark: 	$256 billion
- Finland: 	$196 billion
**Compare to:**
- Spain:		$1,070 billion
- Canada 	$1,165 billion
- Mexico:	$1,134 billion
- India:		$796 billion

- Source: CIA World Fact Book, 2007

## The Nordic RegionStatistics

- Sources: OECD, World Bank, CIA World Factbook

- Sources: OECD, World Bank, CIA World Factbook

## Nordic Region Best prospect sectors

**Industry sectors for the entire Nordic Region:**
- Petroleum/Energy/Renewable Energy Technology
- Computer Hardware and Software
- Medical Equipment, Biotechnology, Drugs and Pharmaceuticals
- Telecommunication Equipment and Services
- Travel and Tourism
- Environmental Technologies
- Safety and Security
- Franchising

## Four countriesCustomized regional services

**Four countries****Customized regional services**

**One-stop solution:**
- One Specialist is designated as Regional Team Leader
- Coordinates for four countries:
-  Market Surveys – one report
-  Contact Lists – one report
-  International Partner Search – one report
-  Gold Key Appointments - one regional schedule
**One regional contact!**
** **
**One happy customer!**

## Did you know that Norway...

- Covers 1,100 miles from south to north – same distance as from Oslo to Rome or New York to Miami?

-  Encourages its citizens to submit income tax returns by cell phone?

-  Is the world’s 3rd largest exporter of both oil and gas?

-  Ranked 1st on UN’s index of best countries to live in for 5 years in a row?

-  Produces 99% of its electricity based on renewable hydropower?

-  Is extremely ICT savvy - that 85% of 10 year olds have cell phones?

-  Has the largest investment fund in Europe, valued at USD 300 billion  - same as GDP?

-  Has a GDP per capita higher than the United States?

-  Is currently building Europe’s first export terminal for LNG?

-  Was chosen by Google for location of its latest R&D facility?

## NorwayMajor Economic Sectors

**US - Norway Trade**
- USD 10.5 billion total
- USD 4.5 billion in petroleum from Norway
- USD 2 billion in machinery, ICT and transportation equipment  from the US

-  Energy - Oil/Gas/Renewables
-  ICT
-  Shipping/Marine Technology
-  Fisheries/Aquaculture
-  Metals
-  Pulp and Paper
-  Defense and Aerospace
-  Environmental Technologies
-  Travel and Tourism

## NorwayBusiness Climate

- World-class telecommunication infrastructure and very high ICT literacy
- Extensive transportation network by air, sea and roads  - roads in some rural areas can be a challenge!
- Modern logistics and distribution centers
- Predictability and stability
- High ethical focus
- Traditionally active state sector - strong labor movement
- High taxes – direct and indirect. Marginal rates of about 50%, Value Added Tax of 25%, high fuel and auto taxes, and high “sin” taxes
- Relatively low costs for highly skilled engineers/scientists
- Otherwise - high labor costs/short working hours/long vacations
- Norwegian companies are generally willing to pay for quality
- To Norwegians “New” is not necessarily better
- Hard selling techniques will get you nowhere in Norway
- Norwegians are typically not “tactical” negotiators.  If they say your product is too expensive, they probably mean it

## NorwayOil and Gas Sector

**Norway****Oil and Gas Sector**

**Major Annual Investments**
- Norway’s most significant industry
- Projected 2007 investments: **USD 17 billion**
- 3 million barrels produced every day
- Production only offshore
- Statoil and Hydro are major customers.     Will merge in 2007. Statoil places orders for USD 5-6 billion annually from local suppliers.
- U.S. holds strong position. Oil companies include ConocoPhillips, ExxonMobil, Chevron, Marathon, and Amerada Hess.

## Oil and Gas 

**Equipment and Services**

**Best Prospects – Technology in Demand**
- Advanced subsea and deepwater technology for extreme arctic waters
- CO2 handling - Carbon capture and storage
- LNG value chain technology
- E-field - technology facilitating remote/onshore, real-time operations
- Marginal field technology, enhanced recovery, tail-end production
- High - and growing focus on new and advanced environmental technologies
- Technology facilitating cost reductions of any kind
- Decommissioning/abandonment technology – alternative use of installations

## Renewable Energy

**Green Technologies**

**Best Prospects – Technology in Demand**
-  C02 capture and storage
-  Wind power
-  Hydropower
-  Solar power
-  District heating
-  Geothermal energy
-  Waste incineration technologies
-  Tidal power and wave energy
-  Electric vehicles – battery technology
-  Alternative fuel and fuel efficiency – vehicles/ships

## Innovative ICT Industry Seeks Sophisticated Solutions

**Large public ICT contracts:** new national pension reform, bank ID/biometric ID cards, citizen portals
**Applications for energy sector:** real-time remote operations for extreme conditions, advanced seismic data visualization software, security systems
**Applications for healthcare technologies:** telemedicine, electronic patient records, data handling/storage, logistics software
- IP technology, internet and wireless services and content,  non-voice services, advanced security measures
- Shipbuilding and offshore design, simulation and construction solutions, logistics software
- Enterprise Resource Planning software for SMEs

## Healthcare TechnologiesBiotechnology

- 85 state-owned hospitals managed by four regional health enterprises
- Current investment plans valued at **USD 3 billion**
- USD 250 million annually in medical equipment procurements
- Telemedicine/e-medicine growing in importance
- Reduction of occupancy rates - cutting overall costs

**Biotech **
- Cancer research,
- Marine biotech/Aquaculture
- Bioprospecting
- Biobanks
- Animal biotech

## Competitive Shipping and Offshore Cluster

- Norwegian fleet 5th largest in the world
- Fleet of mobile offshore rigs 2nd largest, after the US
- 15% of world fleet for offshore services
- Two of the three largest ship brokerages
- 10% of world’s maritime banking services
- Underwriters account for 20% of insurance
- Norwegian classification companies classify 15% of world tonnage
- Oslo Stock Exchange regarded as the world’s largest shipping exchange

## USA Pavilions at Trade Shows

- Nor-Shipping 2007
- 	Oslo - June 12-15, 2007
- 	(Shipping and Maritime)
- Reiseliv 2008
- 	Oslo - 	January 10-13, 2008
- 	(Travel and Tourism)
- Offshore Northern Seas 2008
- 	Stavanger - August 26-29, 2008
- 	(Oil and Gas)

- HM King Harald of Norway and former US
- Ambassador John Ong at the USA Pavilion,
- Offshore Northern Seas 2004

- Former Norwegian Minister of Trade Borge Brende visiting USA Pavilion at Nor-Shipping 2005

- HRH Crown Prince Haakon of Norway visiting
- USA Pavilion at Offshore Northern Seas 2006