Exporting to NORWAY Going Global A guide for clients #GlobalAmbition The Covid-19 pandemic has created a new set of challenges for the Norwegian market. Enterprise Ireland is responding to the global Home crisis by working with Irish exporters to help them avail of business response supports announced by the Government. These supports Norway at a Glance are designed to help businesses stabilise and adapt to the evolving situation, in preparation for Why Export to Norway getting back on the road to recovery. Visit the Covid-19 business response Get Ready to Do Business in Norway Keystones of Norwegian Business Culture Key Opportunities in Norway Going Global Legal and Taxation Information Norway’s Cities Helping You Win in Norway Contact Us References 1 1 664,483 NOK Oslo 5,295,619 GDP Per Capita Capital Population Current PPPs (2019): 1.3%2 3.8%1 Going Global GDP Growth 2019 Unemployment 2019 -0.2% €116.7m3 +9% Norwegian exports Enterprise Ireland in 2019 client exports 2019 Why Export Reasons to include Norway to Norway in your export strategy The Kingdom of Norway is a Nordic in Norway when engaged in a business that is country known for its natural either conducted in or managed from Norway. attractions like fjords, mountains, This is set at 22%. With political stability, high midnight sun and aurora lights. The living standards, a modern market economy country has ranked No.1 as the best and a flexible labour market, Norway is well- equipped to quickly adapt in a rapidly changing country to live in for 15 consecutive Norway is 9th Norway is the 6th years by the United Nations world. best place to do most sustainably 4 Development Program (UNDP) . Norway has the 2nd highest GDP per capita in business in the competitive country 8 9 Norway has a constitutional monarchy Europe. Norway’s GDP was 27% above the EU world. in the world. and King Harald V is the current average, 8-16% higher in comparison to other 5 reigning monarch . Nordic countries7. Norway is a politically stable, modern and Norway is not a member of the European highly developed country with a very strong Union; however, the country is part of Going Global economy. The Norwegian economy is the internal market through the European characterised by being open and mixed, with a Economic Area agreement, giving Norwegian combination of private and public ownership. companies the same opportunities as those Norway has always been open to foreign with EU membership. Norway ranks Norway ranks 1st on investment and business. There are about 20th in the world macro-economic 9 6,000 foreign-owned limited companies in for innovation stability. 10 Norway with many additional branch offices. capability. Foreign companies represent about 25% of all value creation in Norway and about 20% of employment. Norway recorded strong growth in foreign investments over the last decade, compared to many other countries6. Non-resident companies are, as a starting point, liable for Corporation Income Tax (CIT) Norway ranks 6th in skills.9 Get Ready to Do Business in Norway Norway shares a common business culture with other Scandinavian countries, based on equality, efficiency and modesty. The Nordics are deal- Travelling and geography Language focused, solution-orientated, punctual and Norway is one of the most sparsely populated Many Norwegians are comfortable speaking in informal. Being punctual to business meetings and countries in the world. Many residents live English. However, companies with long-term online calls is imperative to a positive business in the southern half of the country. Oslo is plans in Norway should translate marketing relationship in the Nordics. the capital and the country’s commercial materials, presentations and business cards into centre with over 690,000 residents15. Other the local language. Norwegians view trust between business partners as the major cities include Bergen, Stavanger and key to sustaining a positive business relationship. They Trondheim. In the north of the country, about often disregard titles and symbols of power. There is little 70,000 people live in Tromsø16. hierarchy, flat structures and informal communication, creating a highly efficient business without building too Norway’s borders include 1,630km alongside Sweden, 736km at the top of Finland and a Going Global many structures11. 196km border with Russia (plus a 23km marine In light of global travel restrictions There are equal opportunities in the workplace, and many border). The south can be accessed through in 2020, we are advising all women occupy senior business positions. Managers are Oslo Airport (OSL). Airlines include Norwegian clients to regularly review the expected to act more as coaches and facilitators than as Air Shuttle and SAS. Direct flights from Dublin Government of Ireland advice at paternalistic, authoritarian figures12. to Oslo are seasonal. A six-hour train journey www.gov.ie/, travel advice from will take you from Stockholm to Oslo, or a the Department of Foreign Affairs, Across all industries, Norway shuts down for the month of night train from 11pm to 12pm the following business continuity advice from the 13 July to take a communal summer holiday . day. Bergen International Airport (BGO) is the Department of Enterprise, Trade second largest airport and carries over 6 million Family comes first in Norway, and even senior managers and Employment and the World passengers a year. There are 36 direct routes will leave the office at around 4pm to be home for dinner Health Organisation website. from the airport, including Amsterdam, London with their family. Don’t expect to start meetings late in the and Copenhagen17. afternoon or take any meetings at all on a Friday afternoon, as Norwegians like to travel up to the mountains for the weekend14. Get Ready to Do Business in Norway (continued) ROUTES TO MARKET Direct sales Pathfinders/market experts/consultants Direct sales are possible, but you must Pathfinders can play an important role understand the Scandinavian way of doing given the scale of the market and the depth business, eg sales cycles, consensus-driven of knowledge and contacts required to approach, flat management structure and penetrate niche areas of interest. punctuality. Partnerships Distributors/agents A variety of partnership options are possible, There are a number of distributors/agents including joint ventures, licensing and R&D located throughout Norway that support collaboration. Managed by Innovation Going Global businesses wanting to export to Norway. Norway, The Explorer matches International Keep in mind that a distributor or agent can companies with Norwegian business represent several companies. partners. See www.theexplorer.no for information. Keystones of Norwegian Business Culture Oslo, home to the world’s Gender marketplaces) must now take steps to register, first climate budget equality charge and pay VAT to Norway. A simplified registration scheme, called VOEC (VAT on In 2017, Norway’s capital city, Oslo, became the first According to the 2020 Global Gender Gap Index E-Commerce), has been introduced for foreign city in the world to implement a climate budget. Rating Report, Norway is performing well, and is sellers. This scheme has similarities with the EU VAT The climate budget shows measures implemented currently ranked second in the gender parity chart. e-commerce package that enters into force on 1st or planned for Oslo to reach its climate targets and The index is in its 14th year. It measures economic January 2021 but is not identical22. become a low-carbon city. participation and opportunity, educational attainment, health and survival and political Other countries are developing climate budgets empowerment19. In 2003, a legal requirement of based on Oslo’s model, including New York City, Smart cities and at least 40% representation of each gender on Rio de Janeiro, Toronto, Vancouver, San Francisco, digitally savvy population company boards was passed in Norway18. Stockholm, Amsterdam, Paris, Copenhagen, Businesses benefit in numerous ways from the 18 Helsinki, Sydney and Portland . Smart City framework. The high level of digital connectivity afforded by the framework allows Cashless Going Global society for greater efficiency in business operations, Sustainable protection of investments and a better service for Statistics from Visa show that Norway is among reporting customers23. Bergen, Oslo, Stavanger, Kristiansand the “world leaders” when it comes to cashless Regulation on sustainability reporting came into and Trondheim are all members of the Nordic Smart payments, with residents regularly using them force in Norway in 2013. The legislation requires City Network. even for small amounts. Openness to new forms of large companies to provide information on how payments has seen the growth of mobile payment they integrate social responsibility into their apps. Together, Swish, Vipps and Mobile Pay have business strategies. Norway places strong emphasis gathered more than 13 million users across Sweden, on public policy and regulation involvement in the 5G network Norway, Denmark and Finland20. field of sustainability reporting. Today the emphasis March 2020 saw Telenor become the first mobile leans more and more towards the SME sector. operator to launch a commercial 5G network The Norwegian government sees transparency in Norway. Fifth-generation wireless (5G) is the E-commerce and sustainability disclosure as instrumental in latest iteration of cellular technology, engineered building and increasing trust between