Return to: Index of "1996 Country Commercial Guides" ||
Index of "Economic and Business Issues" ||
Electronic Research Collections Index ||
ERC Homepage
U.S. Department of State
Finland Country Commercial Guide
Office of the Coordinator for Business Affairs
COUNTRY COMMERCIAL GUIDE, FINLAND, FY 1996
AMERICAN EMBASSY, HELSINKI
TABLE OF CONTENTS
I. EXECUTIVE SUMMARY
II. ECONOMIC TRENDS AND OUTLOOK
III. POLITICAL ENVIRONMENT
IV. MARKETING U.S. PRODUCTS AND SERVICES
V. LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT
VI. TRADE REGULATIONS AND STANDARDS
VII. INVESTMENT CLIMATE
VIII. TRADE AND PROJECT FINANCING
IX. BUSINESS TRAVEL
X. APPENDICES:
A. COUNTRY DATA
B. DOMESTIC ECONOMY
C. TRADE
D. INVESTMENT STATISTICS
E. U.S. AND COUNTRY CONTACTS
F. MARKET RESEARCH
G. TRADE EVENT SCHEDULE
This Country Commercial Guide (CCG) presents a comprehensive look at
Finland's commercial environment through economic, political and market
analyses.
The CCGs were established by recommendation of the Trade Promotion
Coordinating Committee (TPCC), a multi-agency task force, to consolidate
various reporting documents prepared for the U.S. business community.
Country Commercial Guides are prepared annually at U.S. Embassies
through the combined efforts of several U.S. government agencies.
I: EXECUTIVE SUMMARY
Finland joined the European Union on January 1, 1995. The Finnish
economy continued to show strong growth in 1994 and early 1995. Finnish
GDP grew by 4 percent in 1994, is forecasted to climb 4.5 percent in
1995 and 5 percent in 1996. These growth rates are among the highest in
the European Union.
High unemployment and a large government budget deficit remain the main
problems for the Finnish economy. Unemployment is declining but is
still about 17 percent and expected to remain high for some time. The
new five party coalition government has presented a deficit and
unemployment reduction program, which, for the time being, has satisfied
the markets.
Commercial Environment
Finland has an open market economy; about one-third of the GNP comes
from foreign trade. Its EU membership means that the Finnish market
will be further open to trade.
Besides holding a leading position in the wood-based industry, Finland
is a world leader in construction of paper machinery, mobile phones,
medical devices and instruments for environmental measurements.
Most Finnish enterprises are privately owned. Most state-controlled
companies operate on a commercial basis, according to free-market
principles. The government is implementing a plan to privatize many
Finnish state-controlled companies. Finland's business attitude towards
the United States is positive and business relations between Finnish and
U.S. companies are based on many years of experience. The primary
competition for American companies in the Finnish market are European
suppliers, especially German, Swedish, and British competitors.
Finland's Import/Export Markets
The recovery from the recent devastating recession was based on exports.
Exports outstripped imports by about $6 billion in 1994, although
imports also showed substantial growth. In 1994, Finnish exports were
$29.5 billion, an increase of 15 percent by value and 13 percent by
volume.
In 1994, imports totalled $23 billion. Imports grew at a slightly
faster rate than exports in 1994 as the economy continued to recover.
Total 1994 imports were up 17 percent by value and one-fifth higher by
volume than in 1993.
Finnish - U.S. Trade
U.S. exports to Finland in 1994 were up 22 percent compared to 1993. The
total export volume was $1.7 billion. Principal exports from the United
States to Finland were computers, peripherals and software, electronic
components, electric machinery, chemicals, aircraft and parts,
telecommunications equipment and services, medical equipment and some
agricultural products. This trend is expected to continue through 1995
and into 1996.
With a market share of 7.6 percent, the United States is Finland's fifth
largest supplier after Germany, Sweden, Russia and the United Kingdom.
The United States is also Finland's fourth largest customer after
Germany, Sweden and the United Kingdom. The U.S. share of 1994 Finnish
exports was 7.2 percent, or $2.1 billion. In 1994, Finland had a trade
surplus of $357 million with the United States.
The deal of the decade in U.S. - Finnish trade was the McDonnell
Douglas' fighter deal with the Finnish Ministry of Defence. McDonnell
Douglas will deliver a total of 64 F/A-18 Hornet fighter planes in 1995
- 2000. The total value of the purchase is estimated at $3.3 billion.
Trade Implications for the United States
Finnish membership in the EU is not expected to have major bilateral
trade implications for the United States, although the compensation and
settlement for losses in market access to Finland, Sweden and Austria
due to tariff increases associated with their EU accession is still
under discussion. The most critically affected industry sectors in
Finland are semiconductors, computer equipment, some chemicals and
plastics, measuring instruments and orthopedic equipment. A temporary
settlement between the EU and the United States was reached in December
1994, and will be effective through the end of 1995. Negotiations on a
final compensation package are ongoing.
Finnish EU membership has disadvantaged U.S.-origin agricultural
products. Certain products are subject to new import duties and/or fees
imposed in accordance with EU rules and regulations. Among the products
affected are cereals, flour, certain fats and oils, fishery products,
butter, cheese, meat, beef cattle and hogs. During a transitional
period (1995-1998), Finland will be allowed to maintain its stricter
(than EU) import regulations on certain agricultural products, primarily
in the meat and livestock areas.
Finland, a Springboard to Russia and the Baltic Countries
Finland's gateway position between East and West was also emphasized
when Finland became a member of the EU. The 800 mile-long Finnish-
Russian border is the European Union's only border with Russia.
Finland's trade with the former Soviet Union accounted for about 25
percent of Finnish exports. Finns know how to do business in Russia and
in the new Baltic States. Finland's excellent infrastructure and its
geographical proximity to Russia and the Baltic countries, especially
Estonia, give Finland an advantage as a gateway to the East. Many U.S.
companies have started to use Finland as a base when opening their
marketing and transportation activities to the former Soviet Union.
Please note:
Country Commercial Guides are available on the National Trade Data Bank
on CD-ROM or through the Internet. Please contact STAT-USA at 1-800-
STAT-USA for more information. To locate Country Commercial Guides via
the Internet, please use the following world wide WEB address: WWW.STAT-
USA.GOV. CCGs can also be ordered in hard copy or on diskette from the
National Technical Information Service (NTIS) at 1-800-553-NTIS.
II: ECONOMIC TRENDS AND OUTLOOK
Major Trends and Outlook
In 1993, the Finnish economy finally showed signs of recovery from the
devastating recession that began in 1990. The export-led recovery was
boosted by a depreciation of the Finnmark as a consequence of a 1991
devaluation and subsequent float of the currency in 1992. Since then,
the Finnmark has appreciated. In the spring of 1995 the trade-weighted
index was about the same level as before the Finnmark was floated.
Nevertheless, the currency's appreciation has not thus far hindered
export growth. In the next couple of years, however, imports are
expected to surpass exports. As the terms of trade for Finland improve,
a major impact on the trade balance is not expected; the surplus is
projected to account for almost seven percent of the GDP over the next
couple of years (in 1995 almost FIM 40 billion or $9 billion). In 1994,
the Finnish GDP grew for the first time since 1989, by four percent, to
FIM 511 billion ($98 billion). The move towards a better balance in the
economy was reflected in a recovery in the domestic sector.
In 1994, industrial output grew more than 11 percent. This trend is
expected to continue during the next few years, provided world market
factors remain unaltered, as much depends on favorable export
performance. In 1996, the volume of output is expected to exceed the
level of the previous boom years of the late 1980's. This growth is
based on higher profitability as the number of employees decreases, the
working environment allows more flexible employment contracts, and there
is more advanced production engineering and information technology in
operation.
Private investment activity picked up in spring of 1994 after a three
year standstill. The investment recovery was further stimulated by
Finland's decision to join the European Union (EU), effective as of
1995. Investment growth is expected to continue in 1995 and 1996 due to
favorable prospects for demand, high capacity utilization rates, a rise
in profitability and a decline in the debt burden on industry. The main
emphasis in investments will be on the purchase of machinery and
equipment by manufacturing industries and the construction of industrial
buildings. Furthermore, consumer confidence is improving as the fear of
further unemployment slowly disappears.
Finland's entry into the EU brought with it new goals for economic
policy. The new goals -- in particular, restoring balance to central
government finances -- are fully in harmony with the requirements which
Finland's own economic circumstances impose on it. Finland adheres to
the criteria laid down in the Maastricht Treaty on public debt,
inflation, exchange rates and long-term rates. Much in the Finnish
economy will depend on the trade unions' ability to agree upon moderate
increases in incomes and wages during fall 1995 negotiations. The Bank
of Finland has announced that it will not hesitate to use monetary
policy tools to prevent the inflation rate from accelerating.
Currently, Finland has the lowest consumer price growth among the EU
countries: in 1994, an annual increase of 1.1 percent, and in May 1995,
1.6 percent.
Principal Growth Sectors
Manufacturing: Output growth continues to be concentrated on export-
oriented manufacturing industries but recently the outlook of the
domestically-oriented sector also started to brighten. In 1994, metal
industry production increased by almost 20 percent, and in the subsector
fields of electricity and electrotechnical equipment, as well as in
vehicle manufacturing, the output growth was close to 25 percent. The
upward trend in metal sector manufacturing is expected to continue this
year, partly due to livelier demand at the domestic sector.
Forest industry output grew almost 10 percent last year but capacity
constraints may hamper further growth. Some metal industry fields also
lack capacity but in a few fields, like electricity and electrotechnical
manufacturing, investments in additional capacity are under way.
The Finnish textile and clothing industry faces lower duties on imported
goods over the next few years as harmonization with the EU systems and
implementation of the GATT agreement takes place. The sector is
optimistic after 1994's good export performance. Production costs have
fallen as more subcontracting is being done in the region, including the
Baltic States and Russian Karelia.
The food processing industry is in the midst of changes, including lower
prices caused by EU membership. Exports within the region, in
particular to St. Petersburg, may not compensate for the loss in the
domestic market as imports increase. The strain of keener competition
due to open borders will also be felt by agricultural sector producers.
Services: Demand for private sector services is expected to recover as
investment activity, business optimism and household demand improve
further. In 1994, wholesale demand for imported goods like raw
materials, capital goods, and automobiles picked up. Transportation
services, as well as telecommunication operations, continue to grow at a
brisk rate in 1995. The financing and insurance sector did not do as
well in 1994. The banking sector, in particular, continues to undergo
restructuring in the aftermath of the 1990 banking crisis.
Construction, after a period of big losses, is recovering very slowly;
construction of industrial facilities is increasing only slightly this
year.
Government Role in the Economy
During the severe recession of the early 1990s, the Finnish government's
financial position deteriorated rapidly. The government became deeply
indebted because, as tax revenues fell, transfer payments under the
country's extensive social welfare programs rose dramatically. At the
same time, the government was forced to bail out several major banks
whose failure would have prompted a collapse of the banking system.
Since then, the major aim of the government's fiscal policy has been to
curb the growth of indebtedness. At the end of 1994, the Finnish
government's debt was FIM 308 billion ($59 billion), or 60 percent of
GDP. Despite better economic performance, the debt is expected to rise
further: up to FIM 370 billion (67 percent of GDP) by the end of 1995.
The government intends to increase the domestic portion of debt
financing; now around half of the total debt is denominated in
Finnmarks.
The new SDP - Conservative government, which took power in March 1995,
will continue to work to improve the government's financial situation.
However, the new government has taken decisive action to improve
employment, hoping to reduce unemployment from 18.4 percent in 1994 to
nine percent by the year 2000. The government also seeks to ensure that
Finland meets the criteria for participation in Stage Three of Economic
and Monetary Union (EMU). This policy is aimed at maintaining
confidence in Finnish economic stability.
The Finnish government has traditionally played a large role in the
economy. To redress a perceived lack of domestic investment capital,
the government formed state-owned companies in various industrial
sectors, including energy, mining, paper, and steel; currently four of
the 10 largest companies in Finland are state-controlled.
The previous Center - Conservative government initiated a privatization
program aimed at privatizing as much of the state-owned companies as the
Finnish Parliament would permit, and the market could absorb. The
program's strategy is reducing the government's stake through stock
transactions rather than selling off companies to individual investors.
Also, the government has restructured some of its companies to make them
more attractive to investors. Extension of ownership in state-
controlled companies is a way for these companies to obtain capital
since the government, due to financial difficulties, cannot provide
additional financing. The current government has announced that it will
continue the privatization project.
The Finnish public sector provides a wide array of services, including
largely free medical care and education. The bulk of services is
supplied at the local, rather than national, level.
The government has a mixed set of corporate subsidies, in addition to EU
agricultural subsidies and ongoing capital support aimed at bailing out
the troubled Finnish banking sector. Several working groups have been
established to rationalize and reduce business subsidies. Under the
reforms, corporate subsidies would be allowed only for technological
development and other non-tangible investments, as well as for
innovative small and medium size companies. In addition, venture
capital and similar financing would be favored over less targeted public
subsidies. New subsidy policies must take the EU's Treaty of Rome rules
on corporate subsidies into account.
Balance of Payments Situation
The current account showed a surplus in 1994 of FIM 5.6 billion ($1
billion) or 1.1 percent of GDP. Only three years earlier, the current
account deficit had ballooned to FIM 26.7 billion ($6.6 billion).
Before 1994, the last current account surplus was in 1978. The
improvement was thanks to a record trade surplus of FIM 33.6 billion
($6.4 billion), as well as a lack of investment projects and
appreciation of the Finnmark.
Net outflow of investment income in 1994 fell from 1993 by around FIM 5
billion to FIM 22 billion ($4.2 billion). The private sector has been
repaying its foreign debt as part of its fiscal consolidation. The
government, on the other hand, continues to borrow to cover its
financing needs and increasing payments. At the end of 1994, public
debt, FIM 180 billion ($35 billion), accounted for around 70 percent of
Finland's net foreign debt. Ultimately, it is hoped that more of the
government's debt will be Finnmark-denominated.
The service account deficit narrowed by over FIM 2 billion ($0.3
billion) in 1994 as tourism showed a lower deficit and transport a
higher surplus in 1994 than in 1993. Finns are expected to increase
travel spending in 1995, although the transport account surplus will
continue to increase slowly. In all, the current account surplus is
expected to double and the trade account surplus to increase by a
quarter during 1995.
In 1994, net inflow of capital amounted to FIM 20 billion ($3.8
billion). Net capital imports, in the form of portfolio investments,
amounted to FIM 37.4 billion ($7 billion), slightly more than in 1993.
Finnish direct investments abroad were FIM 19.7 billion ($3.7 billion)
compared to foreign direct investments in Finland worth FIM 7.7 billion
($1.4 billion). Investment outflows continue to exceed direct
investment in Finland. Some tax changes, the promotion of Finland as a
gateway for Russian markets and Finnish membership in the EU may
encourage foreigners to invest more in Finland, but their main emphasis
will remain on share and bond investments.
Infrastructure Situation
Finland has a well-developed infrastructure. Finland's transport system
is based on an efficient rail and road network, supported by a wide
network of freight forwarders and trucking companies. Soon, high-speed
trains will go into service between major Finnish cities. Finland's
domestic distribution system for goods and services is efficient. Ports
are secure and automated and loading and unloading operations are
consequently quick and generally trouble-free.
The well-functioning transport system and the fact that Finland's rail
gauge is the same as Russia's make the country a good transshipment
point for Russian trade. Among other projects, Finland is developing
the "gateway" idea further by maintaining and extending a highway in
southern Finland that would reach the Russian border at the southern
Vaalimaa crossing point. The E18 road is part of the European Union
Trans European Road Network system, connecting EU-member Nordic capitals
with efficient roads.
Furthermore, Finland has an efficient and competitive telecommunication
system with cellular and fixed telephones. There are also a variety of
data-based tele services available. This technology is also used by
Finnish banks, among others, in their automated services.
III: POLITICAL ENVIRONMENT
U.S. - Finnish Relationship
Relations between the United States and Finland are excellent and free
from bilateral disputes except for the occasional minor trade dispute.
The U.S. cooperates constructively with Finland in various international
organizations such as the U.N., OSCE, and OECD. Finland's 1995
accession to the European Union adds a new facet to the relationship.
Both countries share an interest in the stable political and economic
development of Russia and the Baltic states and target bilateral and
multilateral cooperation accordingly.
Political Issues Affecting the Business Climate
Finland took the historic step of joining the European Union in January,
1995 and elected a new Parliament in March. EU accession was largely a
political/security issue, with Finland confirming its status as a
western, European state. While economic growth had already begun in
1994, budget deficits and historically high unemployment (18 percent)
dominated the parliamentary election campaign. The recession helped
lead to electoral victory by the opposition Social Democratic Party
(SDP), whose Chairman Paavo Lipponen became Prime Minister (PM) on April
13.
Lipponen heads a broad, five-party coalition government. The
Conservatives and the Leftist Alliance (includes former communists) are
serving in government together for the first time. This is also the
Green Party's first turn in government. Center Party Chairman Esko Aho
became the first politician since World War II to go directly from Prime
Minister to opposition leader. However, the new coalition is following
the same major domestic economic line as the previous government and has
retained the same Minister of Finance.
The Lipponen Government program stresses budget reductions and
employment promotion. Supplementary budget proposals already call for
cutbacks in popular child allowances, with more cuts expected during
budget deliberations in August. Supports to the opposition Center
Party's farm and rural constituency will be a major target. Government
and labor leaders seek a return to traditional broad, tripartite incomes
policy agreements, but pledge restraint in an effort to prevent
inflation. Employer organizations urge moderation. The Government
approved a small increase in capital gains taxes, but income tax
reductions are a strong possibility. Finding a consensus on how to meet
increased energy demand is a major challenge to the government, which
now includes a Green Party strongly opposed to expanding use of nuclear
energy.
The Finnish Political System
Finland is a parliamentary democracy with a strong presidency. The
president is head of state and elected for a six-year term, with primary
responsibility for foreign and security policy. The prime minister is
head of government with responsibility for domestic affairs. However,
EU accession has blurred the line between foreign and domestic policy.
The current president is Martti Ahtisaari, who took office in March
1994. Parliamentary elections must be held at least every four years;
the last election was in March 1995, and Paavo Lipponen became prime
minister in April 1995. Ten parties are currently represented in the
200-member unicameral legislature. The parties are the Social Democrats
(63 seats), Center (44), Conservatives (39), Leftist Alliance (22)
Swedish People's Party (12), Greens (9), Christian League (7), Young
Finns (2), Rural Party (1), Ecological Party (1). The governing
coalition includes the Social Democrats, Conservatives, Leftist
Alliance, Swedish People's Party, and the Greens, as well as an
independent minister of agriculture.
Principal Political Parties
Social Democratic Party: The SDP is an urban-based party with close
ties to labor unions. The party supported EU membership and party
chairman and prime minister Paavo Lipponen has a long interest in
foreign and security affairs. Fighting unemployment while both cutting
the budget deficit and retaining the core of the welfare state are
historic challenges facing the SDP-led government.
Center Party: The Center party has a rural base and is particularly
concerned with agricultural interests. The Center was strongly divided
over EU accession. The party with the widest geographic support in
sparsely-populated Finland, the Center's challenge is to appeal to urban
and suburban voters in southern Finland. Many consider the Center the
true "conservative" party, especially on social issues. Center party
chairman Esko Aho is among the most dynamic leaders in Finland.
Conservative Party: The largely urban-based Conservative party strongly
supported EU membership. It favors fiscal restraint and deregulation,
pushing moderately increased individualism but strongly supporting the
welfare state. The Conservatives draw support from business as well as
professionals and white color employees.
Leftist Alliance: A conglomeration of socialists, ex-communists, and
disenchanted Social Democrats, the Leftist Alliance has important
support among trade unions. Its moderate leadership recently expelled
members who refused to resign from the communist party. A strong
leftist tradition and fears by workers that the Social Democrats are too
centrist boost Leftist Alliance support. Remaining in a cost-cutting
government with both the Social Democrats and the Conservatives will
prove difficult.
Swedish People's Party: The party draws its main support from Finland's
small (six percent) Swedish-speaking minority. It is generally center-
right and supported EU membership. The party has been at home in both
socialist and non-socialist governments using its swing vote to protect
Swedish-speaking community interests.
Green League: The first green party to serve in government in Europe,
Finland's Greens stress social as well as environmental issues. They
couple opposition to nuclear energy with a moderate approach to key
issues such as forestry, taxation, and the welfare state. They have
strong appeal to young, urban voters and to women. Six of their nine
MPs are women.
IV: MARKETING U.S. PRODUCTS AND SERVICES
Distribution and Sales Channels
Distribution channels in Finland are similar to the United States
market. Goods may be sold through an agent, distributor, established
wholesaler, or by selling directly to retail organizations. The majority
of Finnish commission agents, about 200, are members of the Finnish
Foreign Trade Agents' Federation, which has 18 divisions for different
products. These commission agents are relatively small, private
companies, most of them operating in such sectors as imports of
textiles, apparel, furnishings, and raw materials.
Privately-owned wholesalers and trading houses are particularly strong
in certain specialized sectors, such as electronics, electrical
components and instruments, pharmaceutical and health care products,
technical products and machinery, raw materials and chemicals. Most of
these importers and wholesalers belong to the Federation of Finnish
Trade, which is a central organization for over 25 trade associations
covering the bulk of foreign goods sold to Finnish trade and industry.
Wholesale and retail of consumer goods are highly concentrated among
four large companies: K-Group (Kesko), T-Group (Tuko), Inex-Group and
Tradeka. These companies distribute and sell products ranging from food
and clothing to construction and agricultural machinery. The K- and T-
Groups are private corporations while the Inex Group is composed of
consumer-owned cooperatives.
Use of Agents and Distributors; Finding a Partner
One exclusive agent/distributor is usually appointed to cover the entire
country, mainly because of relatively small size of the Finnish market.
Finnish importers often represent several different product lines. In
selecting a representative, the exporter should check whether that
company handles competing products. Consumer goods and similar
merchandise requiring maintenance of stock are often imported through
wholesalers or trading houses. Such products may also be sold directly
to retail chains, department stores, and other retail outlets.
Contacting local trade associations for a list of importers is a good
way of finding a distributor in Finland. Finnish importers also attend
major trade fairs in Europe and in the United States in order to find
new products and ideas, but also to find new principals. The Commercial
Section of the American Embassy also seeks agents/distributors for U.S.
exporters through Agent/Distributor Search, Gold Key Service, etc.
Franchising
The total market for franchising in Finland was estimated at $1.2
billion in 1994. According to a survey made by the Finnish Franchise
Association (FFA), there are 68 franchise chains in Finland. In 1994,
the number of franchising companies increased by 46 percent, about 28
percent of which were foreign owned. Franchising has increased in
popularity during the past few
years. The increasing popularity is explained by expansion of
franchising as a business concept - franchising involves lower risks for
companies expanding their operations.
Many typical U.S. franchise operations are still unknown in Finland. In
the coming years, the following franchise operations are expected to
offer good possibilities in Finland: Print shops, all kinds of
automotive services; tires, mufflers etc., dry cleaning, interior
decorating, travel agencies, domestic and industrial cleaning, one hour
photo shops, packaging stores and child care services. For contact
information, please see appendix E.
Direct Marketing
Direct marketing is both a media and a way of selling. Direct marketing
as a media includes direct mail and direct response advertising (press,
radio, television). As a way of selling it covers mail order, direct
selling and telemarketing. Both direct sales and mail order sales are
showing a steady growth in Finland. Mail order sales totaled $540
million (+ 15 percent) in 1994 and direct sales $80 million (+ 24
percent). A total of $378 million was spent on direct marketing in 1994,
which accounted for 22 percent of all expenditure on advertising and
sales promotion in Finland.
Consumer Protection Law and Data Protection Law are the two most
important laws controlling direct marketing and sales in Finland. The
Finnish Direct Marketing Association (FDMA) has also adopted "the Rules
for Fair Play", a code for ethics, which all of its member companies
have to observe in Finland. FDMA also maintains a so called 'Robinson's
Register' consisting of people not wanting their contact information to
be used for direct marketing.
Joint Ventures/Licensing
Licensing agreements are quite common in Finland because of the good
quality of Finnish manufacturing, the small size of the market and the
relatively high cost of transporting goods to the country. Royalties
and licensing fees may be freely transferred out of Finland.
Finland is involved in many joint venture projects around the world,
particularly in developing countries in Asia and Africa. Finnish firms
specialize in construction of factories, and these projects often
include infrastructure and housing facilities. The wide range of
products and services required by these projects provides opportunities
for participation of U.S. companies.
Several U.S. companies have established themselves in the Finnish market
with subsidiaries or joint ventures. Of particular interest to U.S.
businesses are Finnish-Russian joint ventures. A number of Finnish
firms are interested in using their long-established contacts in the
former Soviet Union and the Baltic countries to market U.S. goods. The
Finns cite a number of selling points for using Finland as a gateway to
Russia and the Baltic countries including physical proximity, and
Finland's network of rail road and air connections with Russia. Finns
also stress that as a full member of the European Union, Finland has its
feet firmly planted in the west but possesses unique access to and
expertise about the Russian market.
Steps to Establishing an Office
Finland removed most restrictions on foreign investment and ownership
through a law which took effect in the beginning of 1993. The new law
abolished various restrictions placed on companies with foreign
ownership and eliminated distinctions between foreign and domestic
shareholders.
If a foreign organization intends to establish an office in Finland, the
following steps should be followed:
1) drafting the Memorandum of Association
2) drafting the Articles of Association
3) subscription of the shares
4) constituent meeting of the shareholders
5) adoption of the Articles of Association
6) payment of the capital share (minimum $2,950)
7) registration of the limited company
See appendix E for contact info.
Selling Factors/Techniques
Selling factors and techniques are very similar in Finland to those in
the United States. When selling to the Finnish market, it is
recommended for successful entry that a local agent/distributor who has
a sales network covering the whole of Finland be appointed. Only one
local distributor is needed to cover the whole country since Finland is
a small market population wise, but distances are great and therefore a
distributor with a country-wide network is most desirable. Consumer
goods and similar merchandise requiring maintenance of stock are often
imported through wholesalers or trading houses. These products can also
be sold directly to retail chains, department stores and other retail
outlets.
U.S. suppliers should provide the local distributor with English
language product literature and export prices. Strong promotion efforts
are very important to introduce new products into the Finnish market.
Terms generally applied to international trade with industrial countries
apply to selling in Finland. When selling through a local distributor
financing is covered in mutual agreements. It is common to request a
letter of credit at the beginning of a business relationship. When a
business relationship has been established, 30-60 days credit terms are
common.
Advertising and Trade Promotion
About $800 million was used for advertising in the mass media, which was
0.93 percent of GDP and $180 per person in 1994. Newspapers account for
56 percent of all media advertising, television 20 percent, periodicals
13 percent, radio 4 percent, and others the remaining 7 percent. All
media in Finland is open for advertising.
Major Finnish newspapers and periodicals and their circulation in 1994
were: Helsingin Sanomat (480,000), Ilta-Sanomat (212,000), Aamulehti
(135,000), Turun Sanomat (127,000), Iltalehti (108,000), Suomen
Kuvalehti (104,000), Kaleva (87,000), Tekniikka & Talous (80,000),
Keskisuomalainen (80,000), and Kauppalehti (76,000).
There are two different acts concerning marketing, the Consumer
Protection Act and the Act on Unfair Business Practice. Advertising is
controlled by the Consumer Ombudsman and the Marketing Court. The
general rule is that advertisements may not contain claims which cannot
be substantiated or which are offensive to minorities (race, sex, etc.).
There are also restrictions concerning use of children in advertising,
and advertising of tobacco products and spirits is completely prohibited
in Finland's mass media. Advertising of beer, wines, and low-strength
beverages is allowed since the beginning of 1995.
Further information regarding advertising in Finland is available from
the Finnish Section of the International Chamber of Commerce (ICC), the
Association of Finnish Advertisers, and the Finnish Association of
Advertising Agencies. See section E. for a list of contacts.
Trade Promotion
There are seven fair centers in Finland with approximately one million
visitors in 1994. The Finnish Fair Corporation (Helsinki Fair Center)
dominates the market with 440,000 visitors (45 percent of total trade
show visitors) followed by the Jyväskylä and Turku Trade Fair Centers,
which together have a market share of about 25 percent of all visitors.
According to a survey of Scandinavian Trade Fair Council, companies use
an average of 25 percent of their marketing budgets on trade fairs.
Pricing Product
Products in Finland are priced using the following method:
CIF price + import duty + excise tax + value added tax (22 %) + profit
Imports from the EU (European Community) and EFTA (European Free Trade
Association) countries enter Finland duty free if the products have been
manufactured in one of these countries. Finland is a full member of the
EU and has a free trade agreement with EFTA but not with non-European
countries such as the United States, Australia, Japan or Canada. Import
duties for these countries depend on specific product lines.
Excise taxes are levied on fuel, electricity, alcohol, beer, tobacco,
candy, soft drinks, mineral water and motor vehicles. Finland replaced
its turnover tax with value added tax at the beginning of June 1994.
Introduction of VAT brought the Finnish practice of levying tax on goods
and services more in line with that in effect in most other European
countries.
Sales Service/Customer Support
Major suppliers normally establish sales offices in Finland that are
supported by dealers. There are also importer/distributors who use a
network of dealers to support their marketing efforts. As a rule, one
exclusive agent/distributor is appointed to cover the entire country.
Finnish importers often represent several different product lines.
Importers may serve large customers themselves while dealers work with
smaller customers and those located outside the Helsinki metropolitan
area. Dealers are often specialized in supplying a specific industry
area. Training, usually arranged and carried out by dealers, is an
important aspect.
Service points should cover the whole country and be located not only in
the southern part of Finland but also in the central and northern parts
of the country.
Selling to the Government
Public purchasing in Finland is mainly done by various boards, agencies,
centers and offices executing their special tasks under the central
government and in the fields of health care and general and vocational
education, by bodies under the municipal local or regional government.
The ministries purchase only supplies needed for their administrative
work, with the following exceptions:
- Ministry of Foreign Affairs purchases supplies for Finnish bilateral
development aid and catastrophe aid.
- Ministry of the Interior purchases supplies needed by the Police,
including police cars.
- Ministry of Defence purchases supplies needed for maintenance of
buildings of the Defence Force.
Local Government purchasing is mainly done by municipalities. About 20
percent of health services is done by 20 regional Health Care Districts.
New legislation of public procurement became effective in the beginning
of 1994. According to this law, EU directives apply for purchasing
supplies, services, work contracts and utilities. This legislation
applies to purchases above the EU thresholds and is binding both central
and local government bodies as well as government or municipality owned
private companies in the fields of energy, transport and
telecommunications.
Sources of Information - Announcements concerning purchasing above the
EU thresholds are published, besides the EU Official Journal, also in
the Official Gazette of Finland in a special issue called "Public
Procurement." Also announcements under the threshold values are quite
frequently published in the Official Gazette.
Protecting your product from IPR Infringement
The Finnish patent and trademark laws are in accordance with the TRIP
agreement (Agreement of Trade Related Aspects of Intellectual Property
Rights), which provides the highest possible protection on IPR
infringement. Trade secrets are protected by the Law of Inappropriate
Business Behavior, which enjoins various forms of corporate espionage.
In 1991, Finland passed a law granting specific rights to designers of
integrated circuit layouts.
Patents: Patents are granted for a 20-year, non-renewable period.
American nationals have a one-year period to file a patent application
in Finland to receive the benefit of an earlier U.S. filing date.
Process patent protection for pharmaceuticals and product patents are
currently offered in Finland.
Trademarks: Trademark registration is valid for 10 years and is
renewable for like periods. The use of the trademark is not a
prerequisite for its registration in Finland. However, the registration
may be forfeited after five years of non-use without a valid reason.
Americans have six months to file an application in Finland after filing
in the United States to receive the benefit of the earlier filing date.
Copyrights: The term of protection is the author's life, plus 50 years.
The government Copyright Information and Anti-piracy Center handles
general questions on copyrights and copyright infringement. For contact
information see appendix E.
Need for a Local Attorney
As a result of Finland's membership in the EU, many EU directives and
regulations have been incorporated into Finnish legislation. It is
advisable that U.S. companies planning to operate in Finland or entering
into contracts with Finnish companies contact an experienced Finnish
attorney for legal advice.
In selecting a Finnish attorney, emphasis should be given to the special
knowledge of the attorney in a particular field of law. Language skills
and experience in working with U.S. entities should be taken into
consideration. A list of Finnish attorneys can be obtained from the
American Embassy, Consular Section, Itäinen Puistotie 14 B, FIN-00140
Helsinki, Finland, tel: 358-0-171931 ext. 271, fax: 358-0-652 057.
V: LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT
Best Prospects for Non-agricultural Goods and Services
1. Computer Software
2. Aircraft and Parts
3. Electronic Components
4. Computers and Peripherals
5. Franchising
6. Telecommunications Equipment
7. Pollution Control Equipment
8. Travel and Tourism Services
9. Medical Equipment
Rank of sector: 1
Name of sector: COMPUTER SOFTWARE
ITA industry code: CSF
1994 1995 1996
(US $ millions)
A. Total market size 560 710 780
B. Total local production 155 197 217
C. Total exports 45 57 64
D. Total imports 450 570 627
E. Imports from the U.S. 405 515 565
F. Exchange rates used 5.2 4.5 4.5
Note: The above statistics are unofficial estimates
Narrative: The United States, with an import market share of 90 percent,
is the number one supplier of standard, non-customized application
software. Competition for new-to-market computer software companies is
strong and comes from already established U.S. companies, such as
Microsoft, Novell, Lotus, Borland etc. Locally produced software,
mainly tailor-made business software and "Team" office software
manufactured by ICL Data, account for about 10 percent of the total
Finnish computer software market.
Since the trend in the Finnish computer market, like everywhere else is
towards downsizing, an increasing number of companies are converting
from mainframes to smaller computers with network capabilities. For
this reason software for mainframes has declined. This development has
also increased the use of micro computer software. In 1995, the
computer software market is expected to increase by about 20-30 percent
in volume, but due to discounting, the dollar growth is estimated at
about 10 percent.
Finland's economy shows signs of improvement, and since exports are
booming, industry, especially the electronic industry, is expected to
increase investments in smaller, user friendly computers, thus
increasing market potential for computer software.
Special application software, such as group software for PCs (E-mail,
forms processing, common data basis, document management, etc.), and
specialized, high-tech software such as CAD/CAM products for PCs that
allow extensive information management, have excellent market potential
in Finland. Due to changes in recent years in Russia and the Baltic
countries, Finland also serves as an excellent gateway to these emerging
markets.
Rank of sector: 2
Name of sector: AIRCRAFT AND PARTS
ITA industry code: AIR
1994 1995 1996
(US $ millions)
A. Total market size 311 468 560
B. Total local production 55 32 80
C. Total exports 44 20 20
D. Total imports 300 456 500
E. Imports from the U.S. 160 356 400
F. Exchange rates used 5.2 4.5 4.5
Note: The above statistics are unofficial estimates.
Narrative: The United States is the most important supplier of aircraft
and parts in Finland with a market share of over 50 percent last year.
The U.S. share is mainly based on McDonnell Douglas' market position in
Finland both in civil and military aviation.
The civilian market for aircraft and parts is dominated by the Finnair
group, consisting of Finnair, the national airline and its wholly-owned
subsidiaries Finnaviation and Karair. Finnair dominates the market. The
Finnair fleet as of December 1994 consisted of 55 aircraft of which 42
were McDonnell Douglas planes. The average age of Finnair's aircraft is
10.2 years. Finnair has decided to replace its 17 DC-9 aircraft with
used McDonnell Douglas MD-80s. Since the DC-9s will be phased out by the
end of the decade, the replacement program gives Finnair flexibility in
the number, age, and timing of MD-80 acquisitions.
The cost of this replacement is estimated at about $354 million. A
combination of outright purchases and leases are expected. Opportunities
exist for American owners of used MD-80 equipment to sell or lease
aircraft to Finnair.
The decision regarding selection of an entirely new narrow body jet can
now be postponed for several years. At that time Finnair will examine
new equipment from McDonnell Douglas, Boeing, Fokker and Airbus
Industries.
The total market for aircraft and parts is estimated to increase
annually by about 25-50 percent. The increase is explained by the 64
F/A-18 fighter deal between the Finnish Air Force and McDonnell Douglas.
The value of the Hornet deal is estimated at about $3,3 billion during
1995 - 2000. The first four Hornet trainers of the seven ordered will be
delivered in November 1995. 57 fighters will be partly assembled in
Finland by Valmet Aviation Industries as a part of offsets.
In 1994, there were a total of 1,293 aircraft in Finland: 711 airplanes,
366 gliders, 78 helicopters, 40 balloons, and 98 other light airplanes.
Demand for small aircraft, such as air taxis, air ambulances and service
planes will continue in the future. The American companies Cessna and
Piper will most likely continue their dominance in Finland's small
aircraft market.
Rank of sector: 3
Name of sector: ELECTRONIC COMPONENTS
ITA industry code: ELC
1994 1995 1996
(US $ millions)
A. Total market size 950 1325 1520
B. Total local production 340 475 545
C. Total exports 250 350 400
D. Total imports 860 1200 1375
E. Imports from the U.S. 170 240 275
F. Exchange rates used 5.2 4.5 4.5
Note: The above statistics are unofficial estimates
Narrative: Market demand for electronic components is linked with the
success of the Finnish electrical and electronics industry. The total
Finnish market for electronic components is estimated at $950 million in
1994, which is 20 percent more than in 1993. A growth rate of 15-20
percent is predicted for the next few years, due to rapidly growing
output of electronics industry in Finland, especially in the field of
telecommunications. Electronic components represent about 22 percent of
Finland's total electronics market, which was estimated at $4.8 billion
in 1994.
Imports increased by 51 percent in 1994 and accounted for 90 percent of
the total market for electronic components. There are three major
external suppliers of electronic components into Finland, the United
States (21 percent import market share), Japan (18 percent), and Germany
(13 percent). U.S. suppliers are strong in the special components field,
which are viewed by Finns to be on the cutting edge of technology,
whereas Japanese are strong in bulk components, where price plays an
important role. Germany supplies mainly electro-mechanical components to
the Finnish market. Imports of electronic components are divided into
the following products by market share: integrated circuits (65
percent), semiconductors (17 percent), passive components (13 percent),
and electro mechanical components (2 percent).
There are few major end-users for electronic components in Finland.
Nokia Oy, the flagship of the Finnish electronics industry, buys alone
about half of all electronic components. The second largest category
consist of about 30 electrical and electronics companies, such as ICL
Personal Systems, that buy about one third of the imported components.
The remaining 15-20 percent of the market is divided between several
hundred smaller companies.
Upon Finland's EU accession in the beginning of 1995, Finland was
subject to adopt the EU import duties, which would have increased import
duties of electronic components up to 9-14 percent for imports outside
the EU countries. As this would affect imports of electronic components
from the United States, the EU and the United States are currently in a
process of negotiating a compensation package for U.S. imports. This
agreement is expected to become into effect in the beginning of 1996.
Meanwhile, import duties will remain unchanged for electronic components
up to certain quotas until the end of 1995.
Rank of sector: 4
Name of sector: COMPUTERS AND PERIPHERALS
ITA industry code: CPT
1994 1995 1996
(US $ millions)
A. Total market size 1100 1390 1540
B. Total local production 1080 1225 1350
C. Total exports 865 960 1045
D. Total imports 885 1125 1235
E. Imports from the U.S. 265 335 370
F. Exchange rates used 5.2 4.5 4.5
Note: The above statistics are unofficial estimates.
Narrative: With about a 30 percent import market share, the United
States is the leading external source of computers and peripherals.
Local sources forecast an average annual growth rate of about ten
percent over the next three years. With about 55 percent of the total
import market, U.S. microcomputer manufacturers are in a very strong
position in Finland. Competition in this sector comes mainly from the
already established American suppliers in the local market.
Like everywhere else in the world, Finland's computer industry is
converting from mainframes to smaller, user friendly computers with
network capabilities. There is already pressure in different industry
sectors to invest in new computers. While Finnish industry has held back
on its investments, the focus on the market has been the current boom to
buy micro computers for home use. Due to signs of improvement in the
Finnish economy, private consumers and businesses have increased their
purchases of new computer equipment and the tendency to upgrade existing
systems is strongly on the rise.
In 1992, for the first time ever, Finland's exports of micro computers
were larger than imports. ICL Personal Systems (owned by British ICL)
desk top micro computers are manufactured in Finland. ICL enjoys a 16
percent market share of Finland's total micro computer market. Only
about 10 percent of local production stays in Finland. Other companies
which are represented in domestic production and/or assembly include
Mikrolog and several very small operations primarily assembling Asian
clones.
Mobile computing (PCs + cellular phones) are considered to be the future
trends in Finland's computer industry. Also decline in the price level
of computer peripherals has resulted in increased sales of high-end
products as well as standard products. For example, sales of top end
color laser printers are booming in Finland.
Demand for computers and peripherals in Russia and the Baltic countries
has began to grow, providing distributors in Finland with excellent
future market potential.
Rank of sector: 5
Name of sector: FRANCHISING
ITA industry code: FRA
1994 1995 1996
(US $ millions)
A. Total sales 988 1255 1380
B. Total sales by local firms 840 1067 1173
C. Foreign sales by local firms 0 0 0
D. Sales by foreign owned
firms 148 188 207
E. Sales by U.S. owned firms 75 90 100
F. Exchange rates used 5.2 4.5 4.5
Note: The above statistics are unofficial estimates.
Narrative: The total market for franchising in Finland was estimated at
about $1.0 billion in 1994. According to a survey made by the Finnish
Franchise Association, the number of franchise chains increased by 46
percent in 1994. As a result, there are 68 chains presently in Finland.
Local trade sources predict that the number of franchise outlets as well
as sales volume will increase at a rate of 10 percent during the next 2
- 3 years. The increase is explained by expansion of franchising as a
business concept - franchising involves lower risks for companies
expanding their operations. The highest number of chains are in services
(30 chains) and in retailing (21 chains). However, the largest increase
in sales volume is predicted for food and beverage franchising, which
has expanded rapidly in Finland over the past few years. The fast food
hamburger market in Finland is divided by three large operators,
McDonald's, Carrols and Hesburger. McDonald's market share is 46
percent. Carrols and Hesburger are domestic franchise chains. The
Hamburger restaurants have been in Finland for about 20 years. Besides
the traditional hamburger (McDonald's) and pizza (Pizza Hut), there is
market opportunity for U.S. fast food restaurants such as salad bars,
tex-mex food, baked potatoes and coffee bars in food marketing.
At present there are seven U.S. franchise chains operating in Finland:
Avis, Budget, Glass-Tech, Hertz, Novus (car windows), McDonald's and
Pizza Hut. Many typical U.S. franchise operations are still unknown in
Finland. In the coming years, the following franchise operations are
expected to offer good possibilities in Finland: Print shops, all kinds
of automotive services; tires, mufflers etc., dry cleaning, interior
decorating, travel agencies, domestic and industrial cleaning, one hour
photo shops and packaging stores.
The future for franchising in Finland looks promising. It is evident
that franchising as a whole will increase during the latter part of the
1990's in Finland. Not only do the statistics indicate this but also
recent positive development in the Finnish economy.
Rank of sector: 6
Name of sector: TELECOMMUNICATIONS EQUIPMENT
ITA industry code: TEL
1994 1995 1996
(US $ millions)
A. Total market size 1990 2530 2780
B. Total local production 2560 3395 3810
C. Total exports 1235 1710 1960
D. Total imports 665 845 930
E. Imports from the U.S. 66 84 93
F. Exchange rates used 5.2 4.5 4.5
Note: The above statistics are unofficial estimates.
Narrative: Finland is one of the comprehensively deregulated and open
telecommunications markets in the world. Both the volume of phone lines
and telephones is among the densest in the world. Finland has also
taken over the position of second largest user of mobile telephones in
the world. Telecommunications technology in Finland is highly advanced.
A major factor behind this has been competition between Finland's
service providers. There are two major players in Finland's telecom
services: state-owned Telecom Finland and 46 user-owned local telephone
companies as well as Telivo, a state-owned power company, which has
entered into the Finnish market to provide telecom services.
At present the United States has about 10 percent import share of
telecommunications equipment. The strongest competitors are Sweden (20
percent), Japan (18 percent) and Germany (14 percent). The total market
for telecommunications equipment is expected to increase by 10-15
percent in volume within the next three years. The growth in dollars is
considerably less over the same period due to price discounting. Major
opportunities for American companies are in the fields of: network
connections, voice processing, LAN connections, data communication
equipment, video conference systems, multimedia, etc. The new Video-on-
demand service (VOD) offers U.S. companies potential in the Finnish
market to provide subscriber equipment and central stations for VOD.
Rank of sector: 7
Name of sector: POLLUTION CONTROL EQUIPMENT
ITA industry code: POL
1994 1995 1996
(US $ millions)
A. Total market size 550 700 770
B. Total local production 610 770 845
C. Total exports 330 420 460
D. Total imports 270 350 385
E. Imports from the U.S. 28 36 39
F. Exchange rates used 5.2 4.5 4.5
Note: The above statistics are unofficial estimates.
Narrative: The total Finnish market for environmental protection and
control equipment, which includes air pollution control equipment, water
and waste water treatment and waste management, is estimated at $700
million in 1995, with the United States import market share at 10
percent. Due to easing of recession, this market sector is expected to
increase by 10 percent during the next three years.
Exports of Finnish environmental products, mainly boilers, diesel
engines and waste water equipment, account for about 55 percent of total
production and are expected to grow at an annual rate of 12 percent due
to increased exports of the Finnish companies Ahlstrom (circulation
fluidized bed - CFB - and pyroflow boilers) and Tampella Oy (circulation
fluidized bed - CFB - boilers). Besides these companies, one of the
biggest local producer is Wartsila Diesel Oy (speed diesel engines for
shipbuilding and power plants). Finnish companies have also expertise
in waste water treatment and are considered one of the world leaders in
this field. Other areas of local expertise are oil spill control.
Imports cover about 50 percent of the total environmental protection and
control equipment market with an expected growth rate of 10 percent
during the next three years. Imports from the U.S. are expected to be
slightly higher, 12 percent, due to accelerating demand for air
pollution control and waste management equipment. Waste management,
waste treatment and recycling are booming due to a new waste law, which
became effective January 1, 1994. The new waste law is stricter than the
previous, especially in the introduction of regulations on hazardous
waste. This in turn is expected to help U.S. companies, since they
already have a considerable share of the Finnish waste management
market. Another area for U.S. companies to look for is that of emerging
markets of the Baltic countries and Russia through Finland.
Rank of sector: 8
Name of sector: TRAVEL AND TOURISM SERVICES
ITA industry code: TRA
1994 1995 1996
(US $ millions)
A. Total travel 2800 3230 3320
B. Domestic travel 2500 2900 2980
C. Incoming travel 1300 1530 1560
D. Foreign travel 1600 1860 1900
E. Travel to the U.S. 127 149 152
F. Exchange rates used 5.2 4.5 4.5
Note: The above statistics are unofficial estimates
Narrative: The United States continues to be the main long-haul
destination for Finns. A total of 66,000 people visit America annually,
which is 4.7 percent less than in 1993. This represents eight percent of
the total expenditure on foreign travel, which is estimated at $1.6
billion in 1994. A turning point is expected in 1995, and an average
increase of 2-3 percent is predicted for U.S. destination sales during
the next three years. This is due to recovering Finnish economy and
general increase in foreign travel, which is expected to favor long-haul
travel and travel to Mediterranean destinations.
New York, Florida and California continue to be the best prospects for
U.S. travel industry, but increasing business travel and interest in
activity holidays offers potential also to other destinations. First
time travelers, families with children and senior citizens favor
Florida, whereas younger people and experienced travelers favor the West
Coast. New York, Chicago, Boston, Los Angeles and Atlanta are the most
important destinations for Finnish business people.
The United States competes mainly with Southeastern Asia. Thailand, the
second most popular long-haul destination, had a total of about 19,000
(+ 1.9 percent) visitors in 1994. China, India, Australia, Hong Kong,
and the Near East (Bahrain, Arab Emirates) have gained popularity in
1994, due to competitive package tours organized to the above
destinations.
There are no restrictions on the Finnish foreign travel. From October 1,
1991, Finland was included in the visa waiver pilot program for visits
up to 90 days in length. This has made it considerably easier for Finns
to travel to the U.S. There are direct flights from Helsinki to New
York, Miami and San Francisco.
Rank of sector: 9
Name of sector: MEDICAL EQUIPMENT
ITA industry code: MED
1994 1995 1996
(US $ millions)
A. Total market size 230 280 290
B. Total local production 300 365 380
C. Total exports 285 345 360
D. Total imports 215 260 270
E. Imports from the U.S. 48 58 60
F. Exchange rates used 5.2 4.5 4.5
Note: The above statistics are unofficial estimates
Narrative: The Finnish market for medical equipment began to recover
from the recession in 1994, when a growth rate of six percent was
reached compared to 1993. The fastest growing subsector is medical
electronics market, which increased by about 12 percent in 1994. During
the next three years, the total market for medical equipment is
estimated to grow annually by about 5-10 percent. The main reason for
increasing market demand is replacement investments of old equipment,
which can no longer be postponed. These investments were postponed
during the years of recession in 1991-93, which has created a need for
updating old equipment. The market of medical supplies is expected to
remain stable in the future.
High-quality and technically sophisticated medical equipment have
the biggest market potential in Finland, especially those equipment
which increase efficiency and reduce occupancy rates in hospitals. Due
to cost awareness and budget cuts in hospitals, the operating costs of
Finnish hospitals have declined by 15 percent in the 1990's. Of
individual product lines, patient monitoring systems, mini invasive
surgery (MIS), magnetic resonance imagery (MRI) equipment, digital image
processing, and picture archiving have the best sales potential in
Finland in the future.
The United States is the most important external supplier of medical
equipment in Finland with an import market share of about 22 percent,
followed by Germany, Sweden, Great Britain and Japan. U.S. equipment
manufacturers currently have a competitive advantage over Japanese and
German suppliers because of the weak U.S. dollar compared with Japanese
Yen and German Mark.
Local production was estimated at about $300 million in 1994, consisting
mainly of dental equipment, anesthesia monitors, specialized x-ray
equipment, and chemical analyzers. Local production and imports do not
overlap, as they do not compete with each other. Over 90 percent of
local production was exported because of the small domestic market size.
Best prospects for agricultural products
High Priority - beverages: wine, spirits, micro-brewery beer; snack
foods: health snacks, nuts, corn chips; convenience foods: frozen orange
juice, TexMex items; pet food for dogs and cats
Medium Priority - fresh fruits/vegetables: apples, pears, grapes,
avocadoes; preserved - canned fruits; food grains: rice; convenience
foods - microwavable items like popcorn; seafood: salmon, frozen
crayfish (Swedish style), white fish roe.
AGRICULTURAL PRODUCT TRADE SUMMARY - 1994
IMPORTS
Total From U.S. U.S.
(US $ millions) (percent)
Coffee 231 - -
Bananas 94 - -
Dog & Cat food, can. 51 3 6
Tobacco 44 29 66
Soybeans 32 21 66
Table wines 38 1 3
Apples 49 4 8
Chocolate candy 36 - -
Raw sugar 28 - -
Oranges 29 0 0
Orange juice 34 1 3
Tomatoes, fresh 27 0 0
Wheat 13 9 69
Cheese 20 - -
Fishmeal 21 0 0
Flower bulbs 15 - -
Corn Flakes & sim. 16 - -
Furskins, raw 15 1 7
Rice 19 10 53
Grapes 13 1 8
Cocoa paste 8 0 0
Prunes 8 6 75
Raisins 6 5 83
Almonds 7 7 99
Pears 7 1 14
Seafood 5 1 20
Cotton, raw 3 1 33
Beef 7 - -
Others 768 29 4
Total 1,644 130 8
EXPORTS
Total To U.S. U.S.
(US $ millions) (percent)
Furskins, raw 207 9 9
Chocolate candy 101 - -
Cheese 84 16 19
Oats 46 45 97
Vodka 37 6 16
Butter 29 - -
Pure fructose 24 0 0
Pork 27 3 11
Biscuits 22 - -
Barley 23 2 8
Malt 12 0 0
Beef 18 2 11
Sugar, refined 4 0 0
Whey 12 0 0
Wheat 5 0 0
Eggs, in shell 10 0 0
Berries, frozen/fresh 25 0 0
Non-fat dry milk 4 0 0
Sausages 13 0 0
Rapeseed oil 2 0 0
Margarine 19 0 0
Bananas 62 0 0
Coffee 42 0 0
Tomatoes 9 0 0
Others 408 6 2
Total 1,245 89 7
VI: TRADE REGULATIONS AND STANDARDS
Trade Barriers, including Tariffs, Non-Tariff Barriers and Import Taxes
Along with the entry in the European Union (EU), Finland fully adopted
the EU internal market praxis. This determines Finland's trade
relations both inside the EU area and to third countries.
Finland's import trade did not change much in consequence of the EU
membership. The major alterations concern border protection procedure
towards non-EU countries. Most of these restrictions concern import of
textiles, certain steel qualities, in particular if from the CIS
territories, as well as import of certain articles from China. The
restrictions are in the form of quotas, licensing and some other control
measures. The quotas are EU-wide. Access to quotas may depend on
whether the importer is an old, traditional one or a new-comer.
Finland now belongs to the antidumping legislation of the EU, which is
the principal and most comprehensive import protection mechanism used by
the EU. Finland has also adopted the Generalized System of Preferences
(GSP) of the EU.
Furthermore, Finland applies import taxes that are imposed by the EU.
Some taxes with effect on imported products like excise tax, value-
added-tax (VAT) and car and motorcycle tax are applied on national
basis. The excise tax is imposed on goods like tobacco, alcoholic
beverages and motor fuels. The car and motorcycle tax is imposed as the
vehicle is registered or taken into use. General VAT level is in
Finland 22 percent with certain exceptions.
Finland has also introduced the EU praxis on imports of agricultural
products. Accordingly, some agricultural goods are subject to standard
import licensing system, EU-wide quotas, import taxes or some other
provisions like on hygiene of foodstuffs. Also, Finland along with the
other new member states is permitted to take measures, accepted by the
EU, to shelter its agriculture or foodstuff sector during a couple of
years transition period.
As an exception to the general EU praxis, Finland is able to impose
higher tariffs than is the EU level on a group of items. This is to
shelter the Finnish industry from too radical a change of business
environment. Around 90 percent of the items are textiles and clothing
but also footwear, rubber, plastic and metals are included. The
exception is for a period of transition that ends at the beginning of
1998, by which time Finland's higher customs tariffs are gradually
decreased to the EU tariff level.
On the other hand, as a consequence of GATT suspension arrangements,
Finland has been able to maintain lower duty level than is in the EU for
certain industry products, the most important group of which is
electronic components. The arrangement was introduced to concern the
first half of 1995, but it was extended to the end of the year.
Customs Valuation
At importation, duties and other import taxes are levied on the customs
value of the goods. The customs value is primarily determined as the
transaction value of the goods imported, based on the total price
actually paid or payable for the goods.
In practice, the individual item most frequently to be added to the
sales price consists of delivery expenses, such as freight and insurance
costs. In other words, the C.I.F. value is commonly used as the customs
value. To assess customs value, the place of importation must be
indicated. In transportation by ship and aircraft, the place of
importation is the unloading location and, in surface transportation,
the Customs Office at the frontier.
If imports are not based on a sale (gift, rented or leased goods, barter
or compensation deals), the customs value will be determined by using
secondary methods. Secondary methods will also be used if the sales
price cannot be accepted as a basis for the transaction value, for
instance in the case where the parent-subsidiary relationship has
influenced the price. Secondary methods of valuation include the
transaction value of identical or similar goods imported.
The customs value is determined according to the GATT Valuation
Agreement and the Community Customs Code (Council regulation 2913/92)
and the Regulation Laying down Provisions for Implementation of the
Customs Code (Commission regulation 2454/93).
Import Licenses
Finland follows import licensing procedures of the EU. Licenses can be
applied from the National Board of Customs.
Certain agricultural products are subject to import duties and/or fees
which are imposed in accordance with E.U. rules and regulations. Among
the products subject to these duties and fees are cereals, flour,
certain fats and oils, fishery products, butter, cheese, eggs, poultry,
meat, cattle and hogs. During a transitional period (1995-1998),
Finland will be allowed to maintain its stricter (than EU) import
regulations on certain agricultural products, primarily in the meat and
livestock areas. Finland will retain its bilateral agreement with the
United States allowing it access for 10,500 tons of Finnish cheese into
the U.S. market for at least the next three years.
Export Controls
Present situation:
Finnish national export controls on dual-use products is mainly based on
three acts: the Act on Safeguarding the Foreign Trade and Economic
Growth of Finland, the Nuclear Energy Act and the Act of Export and
Transit of Defence Material. The present licensing authority for COCOM,
AG, NSG and most of MTCR-related dual-use goods is the Ministry of Trade
and Industry. The Ministry of Defence is responsible for MTCR-items
1,2,4, 19 and 20.
Future situation:
As a member of the European Union, Finland applies (from July 1, 1995)
the EU Council Regulation (EC) N:o 3381/94 and Council Decision on a
Joint Action N:o 94/942/PESC. The decrees and ministerial decisions
subject to these three acts are presently under amendment process.
A major reform in the Finnish national dual-use export control
legislation will be implemented in the near future. A bill on this
legislation is expected to be brought to the Parliament in the fall of
1995 and become effective in the beginning of 1996.
Import/Export Documentation
Imports must be cleared in writing, using forms endorsed by the National
Board of Customs in Finland. The customs declaration form must be filled
out by the holder of the goods or by an authorized agent. A valuation
declaration for imports must be attached to the customs declaration for
imports exceeding the value of FIM 30,000 (about $6,900). Also, a copy
of the commercial invoice must be attached to the customs declaration,
including the following information:
- Exporter's/buyer's name and address
- Date of the invoice
- Identifying marks, the numbers, quantities, types and the gross weight
of the packages, including unit of measure
- Description and the quantity of the goods
- Value of each item, with eventual reductions and the ground for them
- Terms of delivery and payment
Some items can only be imported to Finland under certain conditions
regulated by the European Union. Also, sanitary certificates are
required for goods that may carry contagious animal or vegetable
diseases. All products imported for sale without further processing
should clearly show their country of origin. See appendix E for contact
information.
Temporary Entry
Temporary exemption from duty can be granted, for instance, to the
following:
- Goods intended for public displays at exhibitions and fairs
- Commercial samples
- Professional tools and equipment
If the goods are put in any unauthorized use or are not exported within
the prescribed time (maximum one year) they must go through normal
customs clearance and become liable for relevant duties and taxes.
In Finland, the ATA-Carnets, the international customs documentation for
temporary duty-free admission, is issued by the Chamber of Commerce. The
ATA-Carnets are frequently used for temporary imports e.g. samples,
exhibition goods, and professional equipment, and are valid for one
year.
Labeling, Marking Requirements
Labeling and marking requirements in Finland are based on the Act on
Product Safety, which follows guidelines of EU Directive on general
product safety. The following information should be included in retail
packaging, or otherwise marked on the product (a sticker, label, etc.):
- Name of the product (indicating clearly the contents of the package)
- Name of the manufacturer or the name of the company that had the
product manufactured
- Amount of contents (weight or volume of the contents to be specified,
measures in metric system).
If warranted by safety considerations or economic security of the
consumer, the following information should also be included on the
retail packaging or otherwise clearly identified on the product:
contents of the product, care instructions, operating instructions, and
a warning of possible danger related to the use or disposal of the
product.
Finland has exact labelling requirements for foods. A retail-size food
package must show the name of the manufacturer, packer or importer,
commercial name of the product, net metric weight or volume, ingredients
in descending order of weight, last recommended date of sale, and
storage instructions if perishable or intended for infants. Mandatory
information described above must be labelled in Finnish and Swedish.
Prohibited Imports
It is prohibited to import the following products into Finland:
- Halogenated derivatives of acyclic hydrocarbons containing two
or more different halogens
- PCB and PCT chemicals used in transformers and condensers causing
problem wastes
- Alcohol beverages which contain 60 percent or more alcohol
- Certain kinds of home brew wine kits
- Whale meat
Standards (e.g. ISO 9000 usage)
Certification is the indication of conformance with standards with a
mark or certification. It is highly recommended that U.S. products
imported into Finland meet international or European standards.
Examples of products where reference to standards is mandatory are
electrical equipment, machines, toys, pressure vessels and oil
containers, and personal protective equipment (e.g. crash helmets).
The central body for standardization in Finland is the Finnish Standards
Association (SFS). It is a member of the ISO (International Organization
for Standardization) and CEN (Comite Europeen de Normalisation). All
European and a part of international standards are compatible with
national SFS standards. There are about 6,000 SFS standards in Finland,
of which 60 percent are identical to European (e.g. CE-marking) or
international standards.
SFS marks are used to indicate that products or services meet the
requirement of SFS standards, and CE-marking to indicate that products
meet the requirements of EU directives. CE-marking acquired in any of
the EU/EEA countries is also valid in Finland. There are seven Notified
Bodies in Finland granting the CE-marking.
SFS also certifies quality systems at companies, on the basis of
standards ISO 9000 (identified with EN ISO 9000 and published in Finland
as SFS-EN ISO 9000). Certification can be granted to a company if the
quality system meets the requirements of SFS-EN ISO 9001, SFS-EN ISO
9002 or SFS-EN ISO 9003 standard.
SFS is also in charge of the Nordic Environmental Label and the EU eco-
label.
Free Trade Zones/Warehouses
See page 31.
Special Import Provisions
The EU customs union system is applied in Finland. Special import
provisions concern import of certain articles that might damage health,
welfare or country's economy, or result in spreading of animal and plant
diseases. The provisions are either EU-wide or set according to
national standards.
Subject to restrictions are, among others, the following:
- foodstuffs,
- fodder and fertilizers,
- alcoholic beverages and other products containing alcohol,
- medicines,
- narcotics and dangerous drugs,
- some chemicals,
- nuclear and radioactive substances,
- explosives,
- blade knives, firearms and ammunition,
- obscene publications,
- pressure vessels.
Membership in Free Trade Arrangements
Finland became a member in the European Union (EU) along with some other
countries of the European Free Trade Association (EFTA), on January
first, 1995. The customs union membership, among other harmonization,
means that Finland complies with the variety of trade agreements that
the EU has made with third countries.
VII: INVESTMENT CLIMATE
Openness to Foreign Investment
The Finnish Government maintains a favorable attitude toward direct
foreign investment in Finnish business. In 1993, laws restricting
foreign ownership were abolished (by Decree no. 1612/92) to confirm the
already commonly accepted liberal treatment of foreign investments in
Finland. The "Invest in Finland Bureau" operates within the government-
sponsored Finnish Foreign Trade Association. Its purpose is to provide
potential investors with detailed information on investing in Finland.
Thanks to this liberalization, as well as Finland's entry into the
European Union, the opening of ex-Soviet markets -- ensuring Finland a
way to act as a gateway country -- and Finland's economic recovery,
foreign investments in Finnish companies have increased dramatically
during the past few years.
In most fields of business activity there are no bars to participation
by foreign companies or individuals. Sectors that are open only to
Finnish nationals are related to national order and security.
The government has monitored procedures for foreign acquisitions
involving a third or more of the stock of large Finnish companies since
1992, but will stop this practice at the end of 1995. Just over 100
companies having 1000 or more employees or an annual turnover or year-
end assets of at least FIM one billion ($200 million) are affected by
this provision. To comply, companies must notify the Ministry of Trade
and Industry before the acquisition. The Ministry then weighs whether
the acquisition jeopardizes "essential national interests" or not. The
Ministry has claimed that evaluations are conducted in a liberal spirit.
There are some requirements that do not restrict foreign ownership but
are necessary on legal responsibility grounds. Thus, a non-European
Economic Area resident (person or company) needs in Finland to refer to
the authorities for the sake of a license or a notification when
starting a business in a few "regulated" forms of trade such as:
banking and insurance, nuclear energy related activities, mining,
manufacturing and sale of medicinal substances, dangerous chemicals and
explosives, private security services, travel agencies, transportation,
fisheries, restaurant and catering services as well as real estate
brokerage. Supply of mandatory labor pension insurance and workers'
compensation is possible only through a company established in Finland.
This provision safeguards compliance with the Finnish social security
legislation.
The Aland Islands are an exception to the common Finnish usage: based
on international agreements dating from 1921, property ownership and the
right to conduct business is limited to only those individuals with
particular right of domicile in the Aland Islands.
Conversion and Transfer Policies
Finland does not apply any exchange controls. There are no restrictions
on transferring investment capital or profits abroad in freely
convertible currencies at a legal market rate. There is no limit on
dividend distributions, as long as they correspond to a company's
official earnings records. Investors, from countries like the United
States, with which Finland has a bilateral agreement to avoid double
taxation, are exempted from withholding tax on investment earnings. If
a foreign company ceases operations in Finland, all of its assets may be
repatriated without restriction.
The Bank of Finland compiles the country's balance of payments data. To
this end, the main details of all single payment items exceeding FIM
50,000 ($11,630) are to be submitted on a form either to the Finnish
bank effecting the payment or directly to the Bank of Finland.
Expropriation and Compensation
Private property rights are well protected in Finland. There have been
no cases of expropriation or nationalization since the Second World War.
Dispute Settlement
In 1969, Finland became a member of the International Center for the
Settlement of Investment Disputes (ICSID). There is no record of any
significant investment dispute in the last three decades.
Political Violence
There have been no instances of political violence since the struggle
for independence in 1918.
Performance Requirements/Incentives
There are no performance requirements or commitments imposed on foreign
investment in Finland. However, in order to do business in Finland,
some residency requirements should be met to ensure that persons liable
for the company's acts can be brought to courts if necessary.
Consequently, for a company to be located in Finland, the key personnel
(half of the members in a company's board of directors and the managing
director) must be residents in the European Economic Area (EEA). Also,
at least half of the founders (natural or legal persons) of a company to
be established in Finland must reside within the EEA. Otherwise, a
special permit issued by the Ministry of Trade and Industry is needed.
The residence requirement can, in most cases, be fulfilled also by
appointing a legal representative with residence in Finland to be in
charge of the business.
There are no specific incentives available for direct foreign
investment. However, to make Finland more attractive for company
activities, the corporate income tax was recently lowered from 60
percent down to 25 percent, one of the lowest among the Western
industrial countries.
All companies registered in Finland have access to government assistance
under special development programs. Assistance and subsidies are
granted by the Ministry of Trade and Industry or other ministries
depending on the field of business activity, the Ministry of Trade and
Industry related Regional Development Fund (KERA) and Technology
Development Center (TEKES), as well as Parliament managed venture
capital fund, the Finnish National Fund for Research and Development
(SITRA). Due to Finland's membership in the European Union (EU),
companies operating in Finland have access to EU structural funds
through nationally outlined programs. EU funding may cover half of
total costs of a program provided that the other half comes from
national private or/and public sources.
Indirect and direct subsidies are provided in the form of tax relief,
low-interest loans, guarantees, and grants, as well as in supply of
expertise and training. Subsidies may be given for development of
technology, new products and production methods, more efficient energy
supply, employment creation, start-up of business activity (in
particular among small and medium size industry and in case of an
unemployed person) diversification of industrial structure, balancing of
regional economic differences, export promotion etc.
As a consequence of the deep economic recession and its impact on public
expenditures, the government is revising its subsidy policy. Also,
Finland's EU membership requires compliance with the Treaty of Rome, and
has necessitated some changes in the Finnish subsidy system.
Right to Private Ownership and Establishment
Private ownership and entrepreneurship are well respected in Finland.
In most fields of business activity, participation by foreign companies
or individuals is unrestricted. Forms of business related to national
order and security are reserved for Finnish nationals.
As the government pursues privatization of state-owned companies,
foreigners' participation is welcome except in some enterprises
operating, again, in sectors related to national security where the
government wants to keep a major interest.
Competitive equality is the official standard applied to private
enterprises in competition with public enterprises. Private companies
do not face discrimination.
In any real estate purchase of leisure or recreation property by a
person without residence status in Finland, a permission from provincial
government of location of the land is needed. Permission may be denied
if use of this property hampers environmental protection or the domestic
population's chances to purchase a vacation site. The law defining the
permission procedure is in force up to the end of 1999. Frontier zone
property acquisitions at the Russian border area may be restricted for
reasons of security.
Protection of Property Rights
The Finnish legal system protects property rights, including
intellectual property, and Finland adheres to numerous international
agreements concerning intellectual property: Finland has joined the
most important copyright agreements, and patent rights are well
harmonized according to the international standards. Finland is joining
the European Patent Convention (EPC) within one year.
The Finnish Copyright Act, which traditionally also grants protection to
authors, performing artists, record producers, broadcasting
organizations and catalog producers, is to be adjusted to comply with EU
directives. As part of this harmonization, the period of copyright
protection will be extended from the current 50 years to 70 years.
Protection for data base producers (currently a part of catalog producer
rights) will be defined consistent with EU practice. National
transition period procedures are defined in Parliament.
The Finnish Copyright Act provides for sanctions ranging from fines to
imprisonment for up to two years. Search and seizure are authorized in
the case of criminal piracy, as is the forfeiture of financial gains.
Computer software is covered by the Copyright Act since January 1991.
Information on copying and copyright infringement is dealt with several
copyright holder interest organizations such as the Copyright
Information and Anti-Piracy Center, as well as the Business Software
Alliance, whose recent survey shows that in Finland, the rate of
software piracy is one of the lowest in Europe.
Regulatory System: Laws and Procedures
The Trade Act, as well as specific legislation referred to in it,
provides for more detailed information on trade practices in Finland.
The section three of the Trade Act names the "regulated forms of trade"
in which a non-EEA resident needs a permission from the Ministry of
Trade and Industry or a notification submitted to the authorities (see
section Openness to Foreign Investments). Also, according to the Trade
Act, everyone launching a business in Finland is obliged to submit a
notice to the Trade Register, which is maintained by the National Board
of Patents and Registration.
Every major shareholder is due to follow the 'flagging rule' of the
Securities Market Act, which requires that the enterprise in question
and the supervisory authority must be reported whenever shareholding
stake exceeds certain percentage of total shares of the company.
Individuals purchasing a 10 percent or a large holding are required to
report their purchase. Individuals owning more than two thirds of the
voting shares may be required to purchase the remaining voting shares if
minority shareholders want to divest.
Competition policy in Finland is set by the Act on Restriction on
Competition (the recent amendment was introduced in fall of 1992). This
law is in harmony with the EU competition policy. The principal
difference is that Finland does not screen proposed large mergers and
acquisitions before the fact, but Finnish authorities will act to break
up such arrangements if it is determined that the new entity is
restricting competition.
Finnish tax, labor, health and safety, and related laws and policies are
largely neutral towards the efficient mobilization and allocation of
investment. Finnish legislation does not normally influence the
regional distribution of investments except when specifically designed
to do so, such as through regional incentive programs.
Bilateral Investment Agreements
Finland has concluded bilateral investment agreements with the following
countries: Belarus, Bulgaria, China, the Czech Republic, Egypt,
Estonia, Hungary, Latvia, Lithuania, Malaysia, Poland, Romania, Russia,
Sri Lanka, Turkey, Ukraine and Uzbekistan.
OPIC and Other Investment Insurance Programs
In August 1992, OPIC and the Finnish Fund for Industrial Cooperation
(Finnfund) signed a Principles of Cooperation Agreement. The two
organizations agreed to share information concerning opportunities for
private investment, exchange knowledge of techniques for the
encouragement and sustenance of investment, including approaches to risk
mitigation and
management, and encourage cooperative enterprises among their nationals
to finance private investment in developing economies. The former
Soviet Union and Eastern Europe are particular points of emphasis.
Finland has been a member of the Multilateral Investment Guarantee
Agency (MIGA) since 1988.
Labor
The Finnish labor force is highly skilled and well-educated. Less than
nine percent is employed in primary sector, around a quarter in
secondary sector and two-thirds in tertiary sector occupations. The
percentage of women in the 2.5 million member work force is high, around
48 percent. About 80 percent of the work force is organized.
Finland has suffered from high unemployment through the 1990's:
unemployment during the recession peaked in early 1994 at around 20
percent. Unemployed are granted a compensation which if linked to
earnings, as has been the case among around 60 percent of unemployed,
guarantees moderate incomes for a period up to 500 working days.
Simultaneously with unemployment there has been a shortage of skilled
labor in some specialty sectors like telecommunication.
Although Finnish labor is relatively less expensive than during the
eighties boom years, labor costs are still high. Indirect labor costs
are over 80 percent of direct costs. High costs have led much of
Finnish industry to use labor-saving high technology whenever possible.
Labor relations in Finland have been conducted within the framework of a
highly centralized system of national negotiations on wages and working
conditions for the past several decades. However, no centralized
agreements were made in 1993. The next test on durability of the
traditional system will be faced in the fall of 1995 in a situation
where export industry is deriving high yields whereas the domestic
sector is just beginning to recover. High unemployment has made trade
unions inclined to discuss introduction of greater flexibilities in
terms of hours and wages. Finland adheres to most ILO conventions;
enforcement of worker rights is effective.
Foreign Trade Zones/Free Ports
Finland's only free port is Hanko, located at the southernmost tip of
the country from where there is an all-year round railway-ferry link
with Travemunde in Germany. In addition, there are almost twenty free
storage areas in other locations in the country. The free storage
areas, which are usually run by municipal corporations, are available to
all companies, both domestic and foreign-owned. Warehousing, assembly
and manufacturing are allowed in these areas, with government permission
obtained through the Board of Customs (see appendix E for contact info).
Capital Outflow Policy
No policies exist governing the export of capital and outward direct
investment. Holders of capital, Finnish and foreign, can move funds at
will. Finnfund, the Finnish counterpart of OPIC, provides insurance and
financing for investment in developing countries and the ex-Soviet Union
regions.
Major Foreign Investors
The six largest foreign companies in Finland in terms of turnover (1994)
were:
- ABB Strömberg, FIM 6.3 billion (USD 1.2 billion)
Country of origin: Sweden/Switzerland
Sector of operation: Electronics
- ICL Data, FIM 3.9 billion (USD 0.7 billion)
Country of origin: United Kingdom
Sector of operation: Data processing
- Teboil, FIM 3.8 billion (USD 0.7 billion)
Country of origin: Russia
Sector of operation: Oil trade
- Shell, FIM 2.5 billion (USD 0.4 billion)
Country of origin: Netherlands
Sector of operation: Oil trade
- Kvaerner Masa-Yards, FIM 2.1 billion (USD 0.4 billion)
Country of origin: Norway
Sector of operation: Shipbuilding
- Urals Finland, FIM 1.8 billion (USD 0.3 billion)
Country of origin: Russia
Sector of operation: Wholesale
There are over a hundred U.S. subsidiaries in Finland. Esso and IBM were
the largest U.S. companies in terms of turnover in 1994 (Esso: FIM 1.4
billion, or $0.2 billion, and IBM: FIM 1.2 billion, or $0.2 billion).
VIII: TRADE AND PROJECT FINANCING
The Finnish Banking System
In the last few years, the Finnish banking system has undergone a rapid
change. The initial impetus for this process was the step-by-step
deregulation of financial markets and capital movements in the 1980s as
part of the overall financial integration in Europe. Then, the
recession in the early 1990s and financial crisis, aggravated by bad
lending practices in the boom years of the late 1980s, started the
process of dismantling the excess banking capacity. Tighter competition
ensued from Finland's entry into the European Union, accelerating cost
cutting in the sector. Financial consolidation has been accomplished by
reducing personnel, closing branch offices and introducing modern
banking technology.
Public support has been provided for some problem banks, in particular
SKOP Bank and the savings bank group, to maintain stability in Finland's
banking system. A rough calculation indicates that public support, in
the form of loans, guarantees, share investments and other equity-rated
investments released through the Bank of Finland and the Government
Guarantee Fund, will amount to FIM 40 to 50 billion ($10 billion), not
including interest, before the last payment is effected in 1995 or 1996.
The amount of money equals one-fourth of 1994 government budget
expenditures. An asset management bank, Arsenal, has been established
to liquidate nonperforming assets of the problem banks.
The Finnish banking system is dominated by three banking groups: Merita
Bank, the result of the recent merger of Kansallis-Osake-Pankki (KOP
Bank) and the Union Bank of Finland (Unitas Group), as well as Okobank
(the Cooperative Bank Group) and Postipankki. In all, there are
fourteen commercial banks in Finland. Four are foreign-owned and one is
a branch of Citibank. The commercial banks are limited companies.
The major Finnish commercial banks service the whole country through
their branch networks. They also manage individual subsidiaries that
engage in mortgage banking, finance company activities, credit card
business, investment operations etc. Commercial banks have extensive
foreign networks of branch offices, subsidiaries, consortium banks and
representative offices through which foreign trade payments are
effected. The largest local banks are cooperative banks and savings
banks whose nationwide and international operations are run by their
individual umbrella banks.
Foreign Exchange Controls Affecting Trading
All Finnish foreign exchange controls have been abolished.
General Financing Availability
The Finnish financial market is a typically European environment where
banks and financing institutions have the dominant role, although
insurance institutions play a major role in credit supply. Insurance
companies, through their management of compulsory insurance schemes of
the public social security system, lend a substantial part of the money
back to the companies that pay the compulsory premiums. Financing is
also available through stock exchange and the government's financing
systems. There are only a few risk venture agencies in Finland.
How to Finance Exports/Methods of Payment
Financing and guarantees for exports are provided for by the government-
owned Finnish Export Credit Agency and the Finnish Guarantee Board.
Depending on the nature of the goods exported and on the risks connected
to trading partners, a portion of the export costs must be provided by
the company in question. Finland prefers that, in subsidized export
financing, (where Finland adheres to OECD principles), international
arrangements be made with a minimum of government involvement. In
addition to government activities, commercial banks provide financing,
with guarantees when possible, for exports. The banks advise their
customers on bank loans as well as on loans granted by other credit
institutions.
Types of Available Export Financing and Insurance
Major Finnish government and other programs are detailed below.
Finnish Export Credit Agency: Finland's leading export financing
institution, it provides financing to Finnish exporters of capital
goods, mostly on market terms. It is 100 percent owned by the Finnish
government.
Finnish Guarantee Board: Its main function is to provide small and
medium-sized enterprises (SME's) with export credit guarantees. The
guarantees cover commercial and political risk. Specific export
financing packages can be formed by a combination of support from the
Finnish Export Credit Agency and the Finnish Guarantee Board.
Finnfund - The Finnish Fund for Industrial Cooperation: Similar to the
U.S. Government sponsored OPIC, Finnfund promotes investments in
developing countries. It has recently become very active in the former
Soviet Union, particularly Russia and the Baltic countries. The
investment must have a Finnish component, but third country partners can
participate as well. Finnfund provides equity capital as well as loans
and also participates in guarantee arrangements.
NIB - Nordic Investment Bank: NIB is jointly owned by the five Nordic
countries. Its head office is located in Helsinki. NIB extend loans
and provide guarantees on normal banking terms for export and investment
projects that are in line with Nordic interest. It also grants long-
term collateralized loans.
Kera - The Regional Development Fund: Kera provides financing to
promote the development of SME's in "development areas" of Finland.
Three-fourths of the financing is for manufacturing, the remainder for
tourism and other services.
SITRA, The Finnish National Fund for Research and Development, and
TEKES, The Technology Development Center: SITRA and TEKES are public
financing institutions with the purpose of strengthening the role of
research in economic life and promoting new products with the aim of
introducing internationally competitive high-technology products and
production methods.
Ministry of Trade and Industry: The ministry provides funds for the
"internationalization" of firms, primarily SME's. The funding can be
used for a wide range of services to increase a firm's ability to
export.
Project Financing Available
Multilateral lending institutions do not make loans for projects in
Finland. The Finnish Export Credit Agency and Finnfund provide
financing for overseas projects. Participation of third country firms
in projects is possible. Nordic Investment Bank grants investment loans
for Nordic projects and also finances third countries.
Banks with Correspondent U.S. Banking Arrangements
All principal Finnish banks have an extensive correspondent
relationships with U.S. banks, maintaining relationships with banks in
every state as well as with all of the larger financial center banks.
Further information on correspondent relationships can be obtained from
the Finnish Bankers' Association, P.O. Box 1009, 00101 Helsinki; tel:
358-0-4056 120, fax: 358-0-40561-291.
IX: BUSINESS TRAVEL
Business Customs
Finland is a modern, post industrial country having close relations with
other Nordic countries. Social and business protocol is similar to that
in the United States and requires no special mentions of taboos. It is
worth knowing that relationships are important within the society and
business as Finns prefer to deal with people they know and trust.
Travel Advisory and Visas
With the exception of Nordic (Sweden, Norway, Denmark, Iceland)
citizens, foreigners entering Finland must have a valid passport. A
tourist or business visa is not required for stays of up to three
months. Note: the 90-day period begins when entering any of the Nordic
countries. Also, during any 6-month period, the maximum total time a
foreigner can stay in the Nordic area is this 90 days. If a foreigner
uses less than 90 days, he may return to the Nordic area for only the
balance of the 90-day period unless he has been out of the Nordic area
for more than 6 months. For non-EU citizens a visa is needed for stays
exceeding 90 days.
To work in Finland, a foreigner also needs a work permit. These
documents must be obtained from a Finnish consulate in the applicants
home country before arriving in Finland. Nationals of other Nordic
countries do not need residence or work permits. EU citizens outside
the Nordic countries need to apply for ETA-card from local police for
stays exceeding 90 days. ETA-card is a combined work and residence
permit.
Holidays
The national holidays in Finland for 1996 are:
New Year's Day January 1
Epiphany January 6
Good Friday April 5
Easter April 7
Easter Monday April 8
May Day May 1
Ascension Day May 16
Mid-Summer June 22
Independence Day December 6
Christmas December 25-26
Business Infrastructure
Transportation
Finland has an effective transportation network of trains, roads and air
links. Public transportation is abundant and efficient, especially in
major cities. There are more than 20 domestic airports in Finland, so
inland destinations are easily reached. Frequent flights are scheduled
from Helsinki to all major cities abroad.
Communications
Finland is in the forefront of development and usage of
telecommunications. Telephone calls can be made from Finland to almost
200 countries, and Finland has one of the most extensive mobile phone
networks in the world.
Language
There are two official languages in Finland, Finnish and Swedish. About
94 percent of the population of 5 million is Finnish speaking and 6
percent Swedish speaking. Both languages are compulsory at school.
English is widely spoken in Finland, especially among younger people and
in major cities.
Education
Children attend comprehensive schools for nine years, beginning at the
age of seven. Municipalities pay for teachers' salaries, books, health
care, and school meals. After completing comprehensive school, students
may attend high school for three years or receive an occupational
education. High school prepares students for university studies.
Tuitions at universities are minimal. University students can finance
their living expenses with scholarships or guaranteed student loans from
banks.
Helsinki has international, English, German, Russian, French and Jewish
schools in which classes are taught partly in foreign languages and
partly in Finnish. The International, English, German and Jewish schools
are private and charge tuition. University level education is mainly in
Finnish, with the exception of English language B.B.A and M.B.A programs
in certain universities.
Medical Services
Medical facilities are widely available. The public hospital system will
not honor foreign credit cards and/or U.S. insurance coverage. However,
private hospitals and clinics which accept major credit cards are widely
available. U.S. medical insurance is not always valid outside the United
States. Travelers have found that in some cases, a letter from their
carrier describing supplemental medical insurance with specific overseas
coverage has proved useful.
A foreigner is usually covered by the Finnish social security after
moving to Finland. Most health care is provided as a public service.
Inhabitants of each municipality use the services offered by the health
center for the area in which they reside permanently. The quality of
public health care is equivalent to care given by private doctors.
Occupational health care is organized by employers at no expense to
employees. It is based on a special law intended to protect health of
employees from being harmed by the nature of their work.
Housing
Most people in Finland own their own housing. Over 20 percent of the
population lives in rental housing. The cost to rent an apartment varies
depending on the size, age, condition and location. Rents are quite high
and prices for apartments and houses are also high. Apartments are
usually rented unfurnished.
X: APPENDICES
A: COUNTRY DATA
1. Profile:
- Population: 5,098,800
- Population growth rate (percent): 0.5
- Religion(s): Lutheran 86.2, Orthodox 1.0, no denomination 11.7, other
1.1
- Government system: Republic
- Language(s): Finnish, Swedish
- Work week: 38.2 (employed full time); 18.7 (part time employees).
B: DOMESTIC ECONOMY
Domestic Economy (USD millions, except as noted):
1994 1995 1996
- GDP 98,045 123,560 132,400
- GDP growth rate 1996
(percent) 4.5 %
- GDP per capital 19,266 24,180 25,800
- Government spending as
percent of GDP 60.2 58.5 56.5
- Inflation (percent) 1.1 1.5 2.5
- Unemployment (percent) 18.4 17.0 15.0
- Foreign exchange reserves 10,108 11,780 11,500
- Average exchange rate for $1.00 5.218 4.500 4.500
- Foreign debt (net) 49,216 52,200 50,700
- Debt service ratio (ratio of
interest payments on foreign
debt to foreign income,
principal excluded) 11.9 9.5 8.4
- U.S. economic/military
assistance (if applicable) N/A
Note: Exchange rates used:
- 1994 - 1US$ = FIM 5.218
- 1995 - 1US$ = FIM 4.5 (estimate)
- 1996 - 1US$ = FIM 4.5 (estimate)
Sources: Statistics Finland, the Ministry of Finance, and the Bank of
Finland.
C: TRADE
USD millions 1994 1995(e) 1996(e)
Total country exports 29,484 36,759 38,413
Total country imports 23,034 29,649 32,762
U.S. exports 2,114 2,635 2,754
U.S. imports 1,757 2,445 2,812
U.S. share of host-country 7.6 8.2 8.5 imports
(percent)
Imports of manufactured goods
- Total (from world) 17,255 22,211 24,543
- From the U.S. 1,500 2,087 2,400
- U.S. share of manufactured
imports 8.7 9.3 9.8
- Manufactured goods trade balance
with U.S. +467 +363 +160
- Projected average annual growth
rate from world through 1996 10.5
- Projected average annual growth
rate from U.S. through 1996
(percent) 17.5
Imports of agricultural goods
- Total (from world) 1,229 1,664 1,900
- From the U.S. 98 130 160
- U.S. share of agricultural imports
(percent) 8.0 8.0 8.0
- Agricultural goods trade balance
with U.S. +17 +41 +50
- Trade balance with three leading partners in 1994 (USD millions):
Germany: +565.9; Sweden: +825.2; United Kingdom: +1,134;
* Please note the following fluctuations in the average U.S. dollar
exchange rates:
- 1994 - 1US$ = FIM 5.218
- 1995 - 1US$ = FIM 4.5 (estimate)
- 1996 - 1US$ = FIM 4.5 (estimate)
- Principal U.S. exports (1994):
HS
84.71 - Automatic data processing machines and units thereof
(includes computers, peripherals and software)
85.00 - Electric machinery and equipment and parts thereof
90.00 - Optical, photographic, cinematographic, measuring,
checking, precision, medical or surgical instruments and
apparatus
29.00 - Organic chemicals
88.02-03 - Aircraft and parts
- Principal U.S. imports (1994):
HS
48.00 - Paper and paperboard
72.08 - Ferrous and non-ferrous metals
84.39 - Paper industry machinery
85.00 - Electrical machinery
89.00 - Ships and boats
Sources: Board of Customs, Bureau of Statistics, Confederation of
Finnish Industry and Employers (TT), Ministry of Finance.
D: INVESTMENT STATISTICS
STOCK OF FOREIGN DIRECT INVESTMENT IN FINLAND
BY REGION OF DESTINATION, 1992 AND 1993, (FIM BILLION)
(1) Preliminary information
(2) Estimate
Region of Direct Investor 1992 1993 (1)
------------------------- ---- --------
EFTA 9.759 12.101
EU 5.847 8.025
North America 2.597 3.290
- United States (2.546) (3.137)
Other 0.103 0.065
------ ------
- Total 19.348 24.391
STOCK OF FOREIGN DIRECT INVESTMENT IN FINLAND
BY INDUSTRY SECTOR DESTINATION, 1992 AND 1993, (FIM BILLION)
Sector 1992 1993 (1)
------ ---- --------
Manufacturing 10.125 13.499
- Metal & Engineering (6.011) (7.913)
- Chemical (1.491) (1.799)
Other (2.623) (3.787)
Services 9.140 10.780
- Trade (6.419) (6.807)
- Finance and Insurance (0.793) (0.809)
Other (1.928) (3.164)
Other 0.083 0.112
------ ------
- Total 19.348 24.391
STOCK OF FINNISH DIRECT INVESTMENT ABROAD
BY REGION OF DESTINATION, 1992 AND 1993, (FIM BILLION)
Region 1992 1993 (1)
------ ---- --------
EFTA 12.054 16.614
EU 16.411 20.388
Other Europe 0.507 0.229
North America 9.973 11.693
- United States (8.453) (10.895)
- Canada (1.520) (0.798)
Other countries 2.716 2.720
Not classified 3.260 2.933
------ ------
- Total 44.921 54.557
STOCK OF FINNISH DIRECT INVESTMENT ABROAD
BY INDUSTRY SECTOR DESTINATION, 1992 AND 1993, (FIM BILLION)
Sector 1992 1993 (1)
------ ---- --------
Manufacturing 36.096 44.614
- Forest (2.986) (4.603)
- Metal & Engineering (17.081) (17.940)
- Chemical (9.644) (10.804)
Other (6.385) (11.267)
Services 5.323 7.163
- Trade -3.730 -3.754
- Finance and Insurance 7.962 8.549
Other 1.091 2.368
Other 0.242 -0.133
Households' Investments in Real
Estate and Dwellings 3.260 2.933
------ ------
- Total 44.921 54.577
NET FOREIGN DIRECT INVESTMENT INFLOW TO FINLAND
BY COUNTRY OF ORIGIN, 1992-1994, (FIM MILLION)
Country 1992 1993(1) 1994(1)
------- ---- ------- -------
Austria 9 0 8
Norway 162 155 1352
Sweden 387 1528 1550
Switzerland 205 42 -602
- Total EFTA 763 1725 2308
Belgium 39 -12 424
Denmark 52 141 2530
France 42 267 11
Germany 197 445 80
Ireland 9 51 36
Italy 14 -4 0
Luxembourg -15 66 122
Netherlands 533 183 -169
United Kingdom 17 936 417
Others 0 0 -7
- Total EU 888 2073 3444
Other Europe 23 -148 346
United States 771 1080 615
Canada 67 68 -28
- Total N. America 838 1148 587
Other Countries 69 6 25
Not classified 1 10 93
---- ---- ----
- Total 2582 4814 6803
Reinvested Earnings -760 131 900 (2)
---- ---- ----
- Grand Total 1822 4945 7703
NET FOREIGN DIRECT INVESTMENT INFLOWS IN FINLAND
BY INDUSTRY SECTOR DESTINATION, 1992-1994,(FIM MILLION)
Sector 1992 1993(1) 1994(1)
------ ---- ------- -------
Manufacturing 1800 2520 5175
- Metals (1229) (1120) (723)
- Chemicals (227) (337) (2493)
Other (344) (1063) (1959)
Services 740 2223 984
- Trade (383) (877) (665)
- Finance & Insurance (251) (70) (12)
Other (106) (1276) (307)
Other sectors 42 71 167
---- ---- ----
- Total 2582 4814 6803
Not classified .. .. 278
Reinvested Earnings -760 131 900 (2)
---- ---- ----
- Grand Total 1822 4945 7703
NET FINNISH DIRECT INVESTMENT OUTFLOWS BY COUNTRY
OF DESTINATION, 1992-1994,(FIM MILLION)
Country 1992 1993(1) 1994(1)
------- ---- ------- -------
Austria 0 20 523
Norway -272 244 128
Sweden 965 3765 1002
Switzerland 612 -290 -630
- Total EFTA 1305 3739 1023
Belgium 1059 1889 837
Denmark -128 47 4769
France 1046 812 531
Germany 581 3294 257
Greece 2 -1 1
Ireland 55 97 66
Italy 315 330 85
Luxembourg 126 -57 -87
Netherlands -5175 - 325 6983
Portugal 117 1068 -161
Spain 652 824 425
United Kingdom 893 1518 3345
- Total EU -457 9496 17051
Other Europe 173 299 458
Canada -58 -672 256
United States 452 1382 2538
- Total N. America 394 710 2794
Other countries 776 232 292
Not classified 187 -11 -431
---- ----- -----
- Total 2378 14465 21187
Reinvested Earnings -5750 -4928 -1500 (2)
----- ----- -----
- Grand Total -3372 9537 19687
NET FINNISH DIRECT INVESTMENT OUTFLOWS BY INDUSTRY
SECTOR DESTINATION, 1992-1994, (FIM MILLION)
Sector 1992 1993 (1) 1994 (1)
----- ---- -------- --------
Manufacturing 1659 12486 16715
- Forest (-180) (1859) (2058)
- Metal (1438) (4839) (7706)
- Chemical (-694) (2119) (4977)
Other (1095) (3669) (1974)
Services 117 1798 4712
- Trade (-808) (163) (4224)
- Finance & Insurance (771) (597) (-320)
Other (154) (1038) (808)
Other Sectors 419 165 176
Households' Investment in
Real Estate and Dwellings 183 16 97
Not classified .. .. -513
---- ----- -----
- Total 2378 14465 21187
Reinvested Earnings -5750 -4928 -1500 (2)
----- ----- -----
- Grand Total -3372 9537 19687
E: U.S. AND COUNTRY CONTACTS
U.S. EMBASSY TRADE PERSONNEL
Commercial Service of the United States
It. Puistotie 14 B
FIN-00140 Helsinki
Finland
or
PSC 78, Box H
APO AE 09723
Helsinki, Finland
Tel: 358-0-171 931
Fax: 358-0-635 332
Ms. Barbara Slawecki, SCO (Stockholm)
Mr. Harri Mäkinen, Senior Commercial Specialist
Ms. Tarja Kunnas, Commercial Specialist
Mr. Juha Ottman, Commercial Specialist
Ms. Heidi Day, Commercial Assistant
Economic Section
It. Puistotie 14 B
FIN-00140 Helsinki
Finland
or
PSC 78, Box H
APO AE 09723
Helsinki, Finland
Tel: 358-0-171 931
Fax: 358-0-174 681
Mr. Michael Delaney, Economic Counselor
Ms. Catherine Hill-Herndon, Economic Officer
Mr. William Pennington, Economic Officer
Foreign Agricultural Service
Strandvägen 101
115 89 Stockholm, Sweden
Tel: 46-8-783 5389
Fax: 46-8-662 8495
Mr. Thomas Hamby, Agricultural Counselor
Ms. Gunilla Törnqvist, Agricultural Specialist
Ms. Inger Gozalbez, Agricultural Assistant
Ms. Bettina Dahlbacka, Secretary
CHAMBERS OF COMMERCE
Mr. Matti Aura
Managing Director
Central Chamber of Commerce
WTC Helsinki,Aleksanterinkatu 17
FIN-00100 Helsinki
Finland
Tel: 358-0-696 969
Fax: 358-0-650 303
Mr. Lauri Railas
Secretary General
Finnish Section of the International Chamber of Commerce
WTC Helsinki, Aleksanterinkatu 17
FIN-00100 Helsinki
Finland
Tel: 358-0-696 969
Fax: 358-0-650 303
Mr. Heikki Heliö
Managing Director
Helsinki Chamber of Commerce
Kalevankatu 12
FIN-00100 Helsinki
Finland
Tel: 358-0-228 601
Fax: 358-0-604 228
Chairman (to be elected)
Finnish-American Chamber of Commerce
Arkadiankatu 2
FIN-00100 Helsinki
Finland
Tel: 358-0-695 91
Fax: 358-0-694 0028
Ms. Sirpa Rissa-Anttilainen
Managing Director
World Trade Center Helsinki
Aleksanterinkatu 17
FIN-00100 Helsinki
Finland
Tel: 358-0-634 028
Fax: 358-0-627 815
COUNTRY TRADE ASSOCIATIONS
Mr. Guy Wires
Managing Director
Federation of Finnish Commerce and Trade
Mannerheimintie 76 A
FIN-00250 Helsinki
Finland
Tel: 358-0-441 651
Fax: 358-0-496 142
- Central Organization for 25 Trade Associations
Mr. Peter Nyman
President
Finnish Foreign Trade Agents' Federation
Museokatu 9 B 21
FIN-00100 Helsinki
Finland
Tel: 358-0-446 768
Fax: 358-0-408 807
- Organization for Finnish commission agents
Ms. Taru Eborem
Association of Finnish Advertisers
Meritullinkatu 3 D
FIN-00170 Helsinki
Finland
Tel: 358-0-662 622
Fax: 358-0-665 030
Ms. Leena Karhunen
Finnish Direct Marketing Association
Vuorikatu 4 A 6
FIN-00100 Helsinki
Finland
Tel: 358-0-663 744
Fax: 358-0-663 772
Mr. Johannes Koroma
Director General
Confederation of Finnish Industry and Employers
Eteläranta 10
FIN-00130 Helsinki
Finland
Tel: 358-0-686 81
Fax: 358-0-6868 2316
- Has 29 Finnish industry branch organizations representing about 7,000
member companies.
Mr. Harri Malmberg
Director General
Federation of Finnish Metal, Engineering and
Electrotechnical Industries (FIMET)
Eteläranta 10
FIN-00130 Helsinki
Finland
Tel: 358-0-192 31
Fax: 358-0-124 997
Mr. Jarl Köhler
Managing Director
Finnish Forest Industries' Federation
Eteläesplanadi 2
FIN-00130 Helsinki
Finland
Tel: 358-0-132 61
Fax: 358-0-174 479
Mr. Pertti Huitu
Managing Director
Finnish Foreign Trade Association
Arkadiankatu 2
FIN-00100 Helsinki
Finland
Tel: 358-0-695 91
Fax: 358-0-694 0028
Mr. Nils-Christian Berg
Chief Executive
Invest in Finland Bureau
Aleksanterinkatu 17
FIN-00100 Helsinki
Finland
Tel: 358-0-6969 125
Fax: 358-0-6969 2530
COUNTRY GOVERNMENT OFFICES
Dr. Saara Reinius
Veterinary Department
Ministry of Agriculture and Forestry
Vuorikatu 16 A
FIN-00100 Helsinki
Finland
Tel: 358-0-160 3385
Fax: 358-0-160 3338
Dr. Osmo Mäki-Petäys
Head of Meat Hygiene Unit
National Veterinary and Food Research Institute
P.O. Box 368
FIN-00231 Helsinki
Finland
Tel: 358-0-393 1899
Fax: 358-0-393 1960
Mr. Kai Alvesalo
Senior Customs Inspector
The Board of Customs
Ratakatu 1b A
FIN-00120 Helsinki
Finland
Tel: 358-0-1641
Fax: 358-0-614 2256
Mr. Timo Relander
Director General
Statistics Finland
Työpajankatu 13
FIN-00580 Helsinki
Finland
Tel: 358-0-173 41
Fax: 358-0-1734 2442
Mr. Heikki Partanen
Chief Inspector
Bureau of Data Protection Ombudsman
Kauppakartanonkatu 7 A 41
FIN-00930 Helsinki (will be changed Sep 15)
Finland
Tel: 358-0-3432 455
Fax: 358-0-3431 247
Mr. Jyrki Alanko
Manager, Information Services
Finnish Standardization Association (SFS)
Maistraatinportti 2
FIN-00240 Helsinki
Finland
Tel: 358-0-149 9331
Fax: 358-0-146 4925
Mr. Tuomo Ilomäki
Managing Director
Finnish Electrotechnical Standard Association (SESKO)
P.O. Box 134
FIN-00211 Helsinki
Finland
Tel: 358-0-69 631
Fax: 358-0-677 059
Mr. Matti Enäjärvi
Director General
National Board of Patents and Registration
Albertinkatu 25 A
FIN-00180 Helsinki
Finland
Tel: 358-0-6939 500
Fax: 358-0-6939 5322
Ms. Eeva Kelloniemi
Engineer - Product Safety
National Consumer Administration
P.O. Box 5
FIN-00531 Helsinki
Finland
Tel: 358-0-77 261
Fax: 358-0-7726 7557
Mr. Eero Aho
Senior Advisor
Ministry of Trade and Industry
Export Control Unit
Lastenkodinkatu 5
FIN-00180 Helsinki
Finland
Tel: 358-0-160 5850
Fax: 358-0-160 5866
COUNTRY MARKET RESEARCH FIRMS
Mr. Ari Heino
Managing Director
Research International
Itälahdenkatu 18 A
FIN-00210 Helsinki
Finland
Tel: 358-0-348 6112
Fax: 358-0-348 61312
- Associate Member of Research International Group Ltd.
Mr. Risto Seppälä
Managing Director
A.C. Nielsen Finland Oy
Tietäjäntie 14
FIN-02130 Espoo
Finland
Tel: 358-0-455 4422
Fax: 358-0-463 628
- Specialized in retail trade.
COUNTRY COMMERCIAL BANKS
Mr. Vesa Vainio
CEO
Merita Pankki Oy (Merita Bank Ltd.)
FIN-00020 Merita
Finland
Tel: 358-0-1651
Fax: 358-0-661 051
Mr. Pauli Komi
CEO
Osuuspankkien Keskuspankki (Okobank)
Arkadiankatu 23
FIN-00100 Helsinki
Finland
Tel: 358-0-4041
Fax: 358-0-404 2219
Mr. Seppo Lindblom
CEO
Postipankki (Postal Bank)
Unioninkatu 22
FIN-00007 Helsinki
Finland
Tel: 358-0-1641
Fax: 358-0-164 2608
Mr. Stephen McClintock
Managing Director
Citibank International Plc.
Finland Branch
Aleksanterinkatu 48 A
FIN-00100 Helsinki
Finland
Tel: 358-0-173 381
Fax: 358-0-651 194
WASHINGTON-BASED USG COUNTRY CONTACTS
Mr. James Devlin
Finland Desk Officer
U.S. Department of Commerce
OWE/NED, Room 3043
Washington, D.C. 20230
Tel: (202) 482-4414
Fax: (202) 482-2897
Mr. Gordon Nicks
Northern European Area Officer
U.S. Department of Agriculture
Foreign Agricultural Service
Washington D.C. 20250
Tel: (202) 720-2144
Fax: (202) 690-2909
F: MARKET RESEARCH
List of Industry Sector Analysis (ISA) reports and
Special Topic (STR) reports in FY '96:
STRs
- Environmental Technologies (a joint effort with Sweden)
- Retailing in Finland
ISAs
- Airport Construction
- Controls and Instrumentation for the Power Sector
- Computer Software
- Air Pollution Control Equipment
- Electronic Components
- Travel and Tourism to the United States
USDA/FAS/Commodity reports and market briefs
Date of Next Report Subject Report Code
11/30/95 Dairy Annual FI9551A
04/10/96 Sugar Annual FI9619A
06/01/96 Grain & Feed Annual FI9611A
06/01/96 Tobacco Annual FI9621A
07/15/96 Forest Products Annual FI9655A
09/30/96 Agricultural Situation FI9624A
The above reports are available on the Department of Commerce's National
Trade Data Bank. These and additional reports are available from the
Reports Officer, FAS, U.S. Department of Agriculture, Room 6078 South
Building, Washington, D.C. 20250-1000. Fax: (202) 720-7729.
Exporters/marketers interested in access to other marketing related
information and reports may also wish to contact AgExport Connections
Tel: (202) 720-7103 Fax: 690-4374.
G: TRADE EVENT SCHEDULE
List of major exhibitions in Finland in 1996:
MEDICINE '96
Helsinki Fair Center, The Finnish Fair Corporation
January 7-11, 1996
- Exhibition of Medicine, Nursing and Health Care
MATKA '96
Helsinki Fair Center
January 18-21, 1996
- Finland's International Travel Fair.
- The Commercial Section in Helsinki organizes a USA Pavilion in
connection with Matka'96.
HELSINKI INTERNATIONAL FASHION FAIR I/96
Helsinki Fair Center
January 28-30, 1996
HELSINKI INTERNATIONAL BOAT SHOW '96
Helsinki Fair Center
February 9-18, 1996
SPORTEXPO '96
Helsinki Fair Center
March 22-24, 1996
GASTRO '96
Helsinki Fair Center
March 27-29, 1996
- Catering, restaurants and hotels
POLARSTOFF '96
Helsinki Fair Center
April 1-3, 1996
- Sales Exhibition for Clothing and Home Textiles and Accessories
Finnbuild '96
Helsinki Fair Center
April 17-21, 1996
- Helsinki International Building Fair
SECURITY '96
Tampere
May 8-11, 1996
- Fire Control, labor protection, civil defense and property
protection
TIWC '96
Tampere Hall
May 21-24, 1996
- 77th Textile Institute World Conference
10th Nordic-Baltic Conference on Biomedical Engineering
Tampere Hall and Tampere University of Technology
June 9-13, 1996
First Science Center World Congress
Heureka, Vantaa
June 14-18, 1996
Kt-DATA '96
Helsinki Fair Center
September 9-13, 1996
- Computers, peripherals and office equipment.
FinnTec '96
Helsinki Fair Center
October 1-4, 1996
- Helsinki International Technical Fair, Machine Tools and Tools
ENTEC '96
Tampere Trade Fairs Ltd
October 8-9, 1996
- Environmental technology
FinnSec '96
Helsinki Fair Center
October 23-26, 1996
- Helsinki International Security Fair
SPORT AND SKIEXPO '96
Helsinki Fair Center
November 1-3, 1996
To the top of this page