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flag Finland Finland: Investing

In this page: FDI in Figures | Why You Should Choose to Invest in Finland | Procedures Relative to Foreign Investment | Investment Opportunities

 

FDI in Figures

After Finland joined the euro zone in 1995, FDI flows were increasing steadily. However, in the context of the international financial crisis of 2008 and the following euro zone crisis, FDI inflow to Finland decreased dramatically. Whether they will recover in 2014 remains to be seen.

The country’s strengths include: its reputation as having the least amount of corruption in the world, its competitiveness, its strategic position at the center of a dynamic zone formed by Russia, Scandinavia and the Baltic countries, and its economic orientation towards high technology, research and development.

For more information, refer to the Invest in Finland website.

 

Country Comparison For the Protection of Investors

  Finland OECD United States Germany
Index of Transaction Transparency* 6.0 6.0 7.0 5.0
Index of Manager’s Responsibility** 4.0 5.0 9.0 5.0
Index of Shareholders’ Power*** 7.0 9.0 5.0
Index of Investor Protection**** 5.7 6.1 8.3 5.0

Source: Doing Business - Last Available Data.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.

 
Foreign Direct Investment 201120122013
FDI Inward Flow (million USD) 2,5504,153-1,065
FDI Stock (million USD) 89,23296,646101,307
Performance Index*, Ranking on 181 Economies 122--
Potential Index**, Ranking on 177 Economies 44--
Number of Greenfield Investments*** 83110113
FDI Inwards (in % of GFCF****) 5.08.6-2.1
FDI Stock (in % of GDP) 34.039.139.4

Source: UNCTAD - Last Available Data.

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.

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Why You Should Choose to Invest in Finland

Strong Points
The country's strong points are:
- Political stability;
- A strategic geographic location between Scandinavia, Russia and the Northern European expanding markets;
- A multilingual population;
- One of the least corrupt countries in the world;
- The significant investment done in Research and Development expenses (ranked 3rd in the world);
- An extremely industrialized economy, based mainly on the free market and which showed a per capita return similar to the United Kingdom, France and Germany; and
- One of the most competitive economies in the world, according to WEF Global Competitiveness Report 2007-2008.
Weak Points
Finland's main weak points are:
- A limited domestic market; and
- High taxation rates.
Government Measures to Motivate or Restrict FDI
In the past years, Finland has made considerable progress in eliminating discriminatory regulations against foreign investors. The government's clear intention is to promote the country's integration into the European economic zone. Finland's strategic geographic location, situated between its European Community partners and the newly independent Eastern European states, gives it a definite advantage.
Bilateral Investment Conventions Signed By Finland
Finland is a signatory to 56 conventions.

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Procedures Relative to Foreign Investment

Freedom of Establishment
Guaranteed
Acquisition of Holdings
Possible
Obligation to Declare
Certain acquisitions of large Finnish companies may require follow-up clearance from the Ministry of Employment and the Economy in accordance with the act on the control of foreign acquisitions of Finnish companies. The purpose of the clearance is to protect essential national interests.
Competent Organization For the Declaration
Ministry of Employment and the Economy
Requests For Specific Authorizations
A non-EEA person or company operating in Finland must obtain a license or a notification when starting a business in the regulated forms of trade such as banking and insurance sector.

Learn more about Foreign Investment in Finland on Globaltrade.net, the Directory for International Trade Service Providers.

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Investment Opportunities

Investment Aid Agency
Finnvera
Finnish Funding Agency for Technology and Innovation
The Finnish Innovation Fund
Finnish Investment Promotion Agency
The representations of the Finnish Investment Promotion Agency abroad
Tenders, Projects and Public Procurement
Tenders Info, Tenders in Finland
Ted - Tenders Electronic daily, Business opportunities in EU 27
DgMarket, Tenders Worldwide
Other Useful Resources
Enterprise Finland
The EU website on SMEs and Entrepreneurship
 
 

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Learn more about Investing in Finland on Globaltrade.net, the Directory for International Trade Service Providers.

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Last Updates: February 2015