Finland is a Scandinavian nation bordered by Russia, Sweden, and Norway, located north of the Balkan Countries. It has a steady and contemporary economic system as well as a top-notch investment climate. It belongs to the eurozone countries and is a component of the European Union. The working population of the nation is highly trained, talented, and bilingual, with great knowledge of new technology, shipyards, logging, and sustainable energy sources. It provides a good quality of living, security, efficiency, and advanced digital infrastructure.
Finland is placed first in the COVID Recovering Index Table, which is a result of its strong government and robust healthcare industry. The aging population and Finland’s reliance on exports make it vulnerable.
Foreign direct investment
Sweden accounts for 27% of all overseas direct capital in the country, followed by the Netherlands at 17%, Luxembourg at 15%, Norway at 7%, and China at 5%. The nation leads the other Scandinavian and Baltic nations as a location for foreign capital amidst being open to commerce and trade. 31 % of Finland’s GDP in 2019 was from Investment.
The Administration streamlined the resident card processes, lowered the industrial tax from 24.5 % to 20 %, and created Business Finland as a one-stop shop for international investors to entice investment.
The organization for trade development and the Financing Office for Technology Tekes combined in 2018 to form Business Finland, which encourages economic development and investment in the nation. 600 employees are employed by Organization Finland throughout 16 locations in Finland and 40 operations abroad.
In addition to having a thriving start-up environment that features high-growth businesses with ICT and eHealth services, the country provides chances for investment and cooperation in several industrial areas. For international businesses, the following sectors offer investment opportunities:
The electronics industry is one of Finland’s largest contributors to industrial output. The electronics industry has developed significantly over time. It is one of the business industries with the greatest degree of unpredictability, and Finland’s ability in developing and producing a wide range of electronics can be attributed to this unpredictability. Finland is one of the nations that invests the most in expansion, at about 3.2% of GDP, according to data from the UNESCO Institute.
A wide range of products made by the chemical industry is used in many different business domains, particularly in agriculture and forest management. The main participants in this industry include producers of polymers, acrylics, pharmaceuticals, petroleum, liquid fuels, chemicals, and biotechnology products. The country’s chemical sector provides about 25% of the country’s industrial output and exports. There are over 34,000 direct jobs in the chemical industry alone.
26% of Finland’s energy comes from nuclear power, and 16% from hydroelectricity. Energy requirements for manufacturing, heating, and transportation vary. Finland has always imported a considerable amount of energy because there aren’t many fossil fuel resources there. This is anticipated to change once the country’s fifth nuclear power facility is completed. The building permits for the sixth and seventh plants have also been acquired. This is a great opportunity for people looking to invest in a successful venture.
Currently, the forestry sector contributes around one-fifth of the country’s income. Products from the forest have long been a significant export for Finland. In the 1970s, Finland’s paper and pulp industry accounted for around 50% of all trade. Despite the drop in forest product exports, the pulp and paper industry still has more than 50 employees nationally.
Challenges in Finland
High tax rates, a tight labor market, clumsy bureaucracy, and complicated bank account creation procedures are some of the major obstacles faced by overseas investors. The two most significant demographic issues for economic growth are an aging population and a declining labor force.