Transcript Attracting foreign direct investments to Norway

Attracting foreign direct
investments to Norway
State Secretary Oluf Ulseth
Ministry of Trade and Industry
The American Chamber of Commerce
Wednesday, October 23rd, 2002
Foreign investments has played a central role in Norway
A small and open economy
Main export goods from Norway
Various
manufacturing
goods
Pulp and paper
Other
Fish
Machinery and
transport
Metals
Chemical products
Gas and Oil
A balanced development
Direct investments to and from Norway, flows
70 000
60 000
40 000
30 000
Sum transactions,
inflows
20 000
10 000
Sum transactions,
outflows
20
01
20
Fi
01
-J
rs
un
ts
e2
ix
m
00
on
2
th
s,
20
02
19
99
19
98
19
97
20
00
Ju
ly
-20 000
19
96
-10 000
19
95
0
19
94
Billion NOK
50 000
Central Bank, Norway
Total FDI in Norway, stocks
Total FDI in Norway
300,0
250,0
FDI as % of GDP
80
150,0
70
60
100,0
50
50,0
40
30
0,0
1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
20
10
en
Sw
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ga
l
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Po
rw
ay
No
s
Ne
the
r la
nd
an
d
Fi
nl
De
nm
ar
k
0
str
ia
Central Bank, Norway
Ministry of Finance
Economist Intelligence Unit
Au
Billion NOK
200,0
Business Policy Challenges
• Economic globalization
• Need for growth in non-petroleum industries to reduce
dependency on the petroleum sector
• Need for a comprehensive approach to innovation
• Modernising the large public sector
• Further reduction of state ownership in the Norwegian economy
A Sound Business Environment
•
Changes in taxes passed by the Norwegian Parliament
Responsible macro-economic
policy. Prudent use of oil
revenue in the economy
10
•
•
Reduction of taxes and charges
Simplifying rules and
regulations
•
Cooperation in Europe and
globally. Benchmarking
•
Integrating industry interests in
environment and energy
policies
Billion NOK
5
0
2000
-5
-10
-15
2001
2002
2003
Passed in 2001 with effect from
2000
Passed with effect from year of
budget
A Policy for Growth and Innovation
Scientific research
•
•
•
•
•
Applied research
Commercial project
A comprehensive approach to innovation
Research and development policy is crucial for innovation
Tax incentives for firms
A strengthening of industry related research
International R&D cooperation. Participation in EUs sixth
Framework Programme
State Ownership in the Norwegian Economy will
be Further Reduced
Ownership at the Oslo Stock Exchange..
The Norwegian
Government controls
large companies and
assets
•
Stricter corporate
governance guidelines for
commercial state owned
companies will be
introduced
•
State ownership in the
Norwegian economy will
be reduced
40 %
Government
28 %
Foreign investors
20 %
Financial institutions
Private investors
•
12 %
.. in addition to other key state assets
NPV Petroleum
Reserve
73
"Petroleum Fund"
financial assets
63
USD bn
-
70
140
Success stories from Norway
©
•
Amersham Health: expansion of
production facilities at Lindesnes.
•
Norwegian continental shelf:
Foreign capital important factor
during build up. To extract more
oil and gas, major investments
still needed.
•
ABB Offshore Systems: Head
office located in Norway
©
©
Invest in Norway
•
Norway ranked fourth in the
Potential Index in the World
Investment Report.
•
Structural changes underway
which will give investment
opportunities.
•
Reform of political instruments:
Proposal for an “Invest in Norway”
function.
• Inform about opportunities
• Rules and regulations
© Norsk Hydro AS and
Bergesen d.y. ASA
Norway – attractive economy and market
Wage level index, different positions
• GDP per capita close to
$30 000 at PPP
Index, Norway=100
• ”Cheap” experts,
managers and CEOs
300
250
200
150
100
50
• Stable government
0
Fi
nla
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ay
Fr
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ain
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rm
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lan
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• Skilled workforce
Hay Group and the Economist Intelligence Unit
Index, juniors
Index, management
Index, specialist
Index, CEOs