With a market of over 27 million people, the Nordic region – comprising Denmark, Finland, Iceland, Norway, Sweden – is a hub for technological innovation.
Hong Kong businesses keen to expand into Europe can tap into the next wave of tech advances and capture a wealth of opportunities.
With a presence in the region for 15 years, the Hong Kong Trade Development Council (HKTDC) has been helping businesses connect across the region, now from our office in Helsinki.
Coupling this with daily direct flights between Hong Kong and Helsinki and visa-free access for Hong Kong SAR passport holders to all five countries means that doing business with Nordic partners has never been easier.
Hong Kong Means Business caught up with Pertti Jalasvirta, HKTDC’s Nordics consultant based in Helsinki, to explore opportunities available to Hong Kong businesses in these tech-oriented economies.
Why should Hong Kong businesses be interested in the Nordic market?
Although not a large market by population, the Nordic countries punch far above their weight in terms of innovation and technological advancement.
Sweden, Finland and Denmark rank in the world’s top 10 most innovative nations, according to the World Intellectual Property Organisation’s 2024 Global Innovation Index, with Norway and Iceland not far behind.
However, the region is constrained by its size, and this is where Hong Kong comes in. Hong Kong businesses offer vital funding, expertise and access to China and wider Asia’s expansive markets.
What benefits does Hong Kong offer for Nordic businesses?
Hong Kong is Asia’s top financial centre and our stock exchange raised the most amount of funds globally for newly listed companies in the first half of this year.
Our deep capital markets are a major attraction for any business seeking funding and financial expertise.
Also crucial is the city’s role as a hub for business with Mainland China, whether that’s foreign enterprises seeking to tap into the vast mainland consumer market or mainland companies going global through Hong Kong.
Moreover, the city’s superb aviation and maritime connectivity, English-speaking environment and common law framework make it an ideal place for scaling up Nordic technology.
What are some of the industries relevant to Hong Kong?
Most people will know a few Nordic successes, such as Swedish car brand Volvo, Danish shipper Maersk and drug maker Novo Nordisk, and, of course, we can’t forget Sweden’s IKEA.
But there are a lot more Nordic companies strong in Hong Kong’s priority industries.
In the maritime sector, Norsepower leads in rotor sail technology research and development. The Finnish company’s chimney-shaped sails - which tower up to 35 metres above a ship’s deck - harness wind power to propel ships forward, achieving fuel savings and emission reductions of up to 25%.
The company has factories in China and announced a recent partnership with Chinese shipping giant COSCO to accelerate sail installation and servicing across the region. Locating its regional headquarters in Hong Kong has proved vital in driving the company’s success over the years.
Hong Kong’s role as a trading hub for intellectual property (IP) made it the perfect location for Scandinavian licensing agency Rights & Brands to set up a local venture in 2021.
The venture manages the licensing of IPs, such as the beloved Moomin characters, collectibles and toys brand Sho-Chan 燦子, homeware designs by Stig Lindberg and others.
The HKTDC’s International Licensing Show has been a valuable forum for showcasing their assets and deal-making. The venture recently announced it is poised to launch Moomin-inspired products in South Korea.
What about newer industries, such as sustainability and AI?
In cleantech, Norwegian company Cambi will debut its thermal hydrolysis solution at Hong Kong’s Shek Wu Hui sewage treatment plant later this year, racking up its seventh project in China.
Cambi’s technology recovers resources from sewage sludge, significantly reducing its volume and water content.
After displaying its solutions at Eco Expo Asia last October, the company is pursuing several potential new plants. They credit Hong Kong for strengthening their presence in the region and as a base from which to explore further growth opportunities.
AI solutions are also a Nordic specialty. Remoted, a Finnish autonomous mobility firm, provides a turnkey service for robot bus fleets. For them, Hong Kong is the best location to connect with Chinese autonomous vehicle leaders.
The HKTDC helped the company establish a Hong Kong subsidiary and raise their visibility.
The company received strong interest from family offices, investment banks and venture funds, when it pitched at our Asian Financial Forum in January this year, saying the event provided exposure that would have been difficult to achieve otherwise.
What’s your advice for Hong Kong businesses interested to explore partnerships?
Like Hong Kong, the Nordic region ranks highly in the World Bank’s ease of doing business index. Negotiating contracts and doing deals is generally transparent and efficient.
Nordic culture emphasises consensus and equality in decision-making, and government regulations can be quite stringent.
Stakeholders have high expectations for environmental sustainability reflected in EU laws on hazards, such as microplastics and PFAS chemicals.
My advice is to prepare thoroughly by making use of the HKTDC’s market analysis and business matching services.
Equally important is to enter the market with a long-term mindset and partner with representatives who know the local market.
Where should businesses start?
A great first step is to participate in HKTDC’s trade fairs and business events to explore growth and collaboration opportunities.
These provide direct access to a wide network of potential partners, investors and distributors from over 190 countries and regions.
HKTDC Research produces a comprehensive range of market profiles and guides to doing business overseas. Its alerts on EU commercial regulations are particularly useful for exporters.
Our Helsinki office provides introductions to business partners and legal, finance and marketing support services.
I would also suggest connecting with associations, such as the Finnish Chamber of Commerce and the Finland-Hong Kong Business Association, which both offer useful industry connections and insights.