Foreign Direct Investment in Finland

Overview by

FDI in Figures

In the context of the international financial crisis, FDI inflow to Finland decreased dramatically in 2009; since then it has been growing slowly, a trend which is expected to continue into 2010. With regard to domestic FDI stocks, the country is ranked 38th in the world.

The country’s strenghts 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 5.2 9.0 5.0
Index of Shareholders’ Power*** 7.0 6.8 9.0 5.0
Index of Investor Protection**** 5.7 6.0 8.3 5.0

Source: Doing Business

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 2007 2008 2009
FDI Inward Flow (million USD) 12,384 -1,974 2,551
FDI Stock (million USD) 91,631 83,137 88,441
Performance Index*, Ranking on 141 Economies 68 139 112
Potential Index**, Ranking on 141 Economies 14 14 -
Number of Greenfield Investments*** 38 38 24
FDI Inwards (in % of GFCF****) 23.6 -3.4 17.4
FDI Stock (in % of GDP) 37.3 30.8 37.2

Source: UNCTAD

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 3 rd in the world);
- An extremely industrialised 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. Finlands 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
Acquisition of Holdings
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.
Find Investment Service Providers in Finland on

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