Nordic Business Alliance in Serbia

FDI

Nordic Business Alliance in Serbia

Foreign Direct Investment

September 2010

2010 - Nordic - Serbian Business Synergy / 1

The Nordic countries are composed of an official group known as the Nordic Council. The Nordic Council includes the three Scandinavian countries (Sweden, Norway and Denmark), in addition to Iceland and Finland, and three autonomous regions (Faroe Islands, Greenland and Ă…land Islands).

The Scandinavian Peninsula includes mainland Sweden and mainland Norway, and also a part of Finland. The Jutland Peninsula includes mainland Denmark and a small part of Germany. Denmark proper however does not have any territory in Scandinavia The total population of the Nordic region is 25 million.

2010 - Nordic - Serbian Business Synergy / 3

The LOW PRICE IKEA way: but not at any price The IKEA vision is to create a better everyday life for people by offering a wide range of home furnishing products with good design and function at prices so low that as many people as possible can afford them. But low prices at IKEA must not be achieved at the expense of people or the environment

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he IKEA vision is to create a better everyday life for people by offering a wide range of home furnishing products with good design and function at prices so low that as many people as possible can afford them. These people include customers, IKEA co-workers and all the people who produce IKEA products. Therefore the IKEA vision includes a lot more than just great home furnishings.

It’s also about taking social and environmental responsibility. Consequently, the low prices at IKEA must not be achieved at the expense of people or the environment. That is a condition at IKEA for doing good business.

A NEVER ENDING JOB IKEA decided to play its part in creating a world where they take better care of the environment, the Earth’s resources and one another. They are aware that they are also part of the problem. That’s why IKEA started working hard to be part of the solution, as well as by weighing up the pros and cons of their actions, and constantly making changes. They believe that taking steps – even little ones – add up to making a big difference.

This is a job that never ends. In dayto-day terms, environmental responsibility can be more or less summed up as not squandering resources. That suits IKEA just fine. They’ve always bent over backwards not to waste anything, scrimping and saving ever since they started, long before anyone had even heard of sustainable development.

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NO COMPROMISES IKEA products must be safe, both for the environment and for human health.

Customers should always feel confident when buying and using IKEA products. That’s why, whenever IKEA develops a new product, IKEA designers, product developers and technicians factor safety, quality and the environmental impact into the equation right from the drawing board. There are no shortcuts to safety or environmental adaptation. New materials are subjected to extensive risk analysis and tests before being used in a product and the product itself is tested continuously. External laboratories and institutes complement the work done in the IKEA test lab.

It goes without saying that the IKEA range must comply with the strictest applicable laws and safety standards as well as regulations on the use of chemicals and other substances in the manufacturing process. IKEA’ policy is that if one country tightens its rules, they introduce these new regulations on all IKEA markets, whenever possible.

ECONOMISING IS PART OF THE IKEA NATURE Economising on resources is part and parcel of the IKEA approach to product development and production. It helps to save not only money, but the environment, too. During production no more material is used than is necessary, while using as much renewable and recyclable material as possible.

IKEA’s flat-pack concept strives to minimise the impact on the environment. By saving space, flat-packs make better use of transport capacity, and they also make it easier to recycle all sorts of materials – plastic, metal, glass, wood and so on – because all their easy-to-assemble products are easy to take apart too.

Supporting reSponSible and efficient production IKEA products must be produced under acceptable working conditions by suppliers who take responsibility for the environment. This is why all their suppliers must comply with the IKEA code of conduct - known as “IWAY”- on Purchasing Products, Materials and Services”. The code of conduct specifies IKEA’s demands in regard to work environments, working conditions, wages, working hours, air and water emissions and sustainable forestry. It also plays a special role in preventing child labour with “The IKEA Way on Preventing Child Labour”. IKEA inspectors regularly visit suppliers to check that IWAY criteria are met.

IKEA believes the best way to contribute to positive development at its suppliers is to maintain close and long-term relationships with them. IKEA - together with its suppliers - always looks for opportunities with new manufacturing techniques and innovative materials. So IKEA product developers and technicians don’t just sit at their desks in the office. They spend a lot of their time out in the field on a never-ending journey of learning. Together with the WWF, IKEA takes the initiative in projects to help its suppliers reduce their impact on the environment.

SuStainable Sourcing Wood is a renewable resource, recyclable and biologically degradable. That’s why IKEA uses so much of it in its products. The trick is to get the wood from the right forests.

IKEA buys timber from responsibly managed forests and works together with WWF and others to tighten up the rules to combat illegal logging. IKEA forest specialists work full-time to increase understanding for their demands and to make sure that the regulations are followed.

Cotton is another important raw material. IKEA works with WWF to teach cotton growers how to reduce their use of water, artificial fertilisers and pesticides. Using fewer resources also means that farmers can earn more from the same amount of land. Results from these projects have shown a positive effect on the environment and increased earnings for the growers in such a way that they have served to inspire thousands more farmers in the region.

productS for a More SuStainable life at HoMe People all over the world are becoming more and more aware about the importance of not wasting natural resources. IKEA can help customers make a difference here and make it easier for its customers to reduce their environmental impact by developing climate-smart products that help them to live a more sustainable life at home. The IKEA range can help them save energy and water and to minimise household waste – simple measures that contribute to a better world and save on household expenses.

iKea goeS renewable Over the past three years, IKEA’s total energy efficiency has improved by 11 percent, and renewable energy now accounts for nearly half of it’s consumption. IKEA’s target is to improve the company’s energy efficiency by 25 percent compared to 2005 levels. All newly built facilities are designed to use a high share of bio fuels, geothermal heating and cooling, solar or wind power, and all existing buildings are being adapted where possible.

for tHe MoSt iMportant people in tHe world IKEA is convinced that society feels well when the children in that society feel well. The IKEA Social Initiative manages the company’s social involvement on a global level – supporting projects to give children a healthy and secure childhood with access to quality education. IKEA loves children, the most important people in the world. That’s why the mission of the IKEA Social Initiative is to improve the rights and life opportunities of children – creating substantial and lasting change.

IKEA works closely with UNICEF and Save the Children. IKEA is their biggest corporate donor of these associations. Together with IKEA customers contribute to improved education for children. The IKEA Social Initiative donates one euro for each soft toy sold to UNICEF and Save the Children educational projects. Since its inception in 2003, the proceeds of this campaign are 23.8 million euros, supporting over 50 projects in more than 25 countries.

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Nordic - Serbian Business Synergy

nordic Business alliance In Serbia 2010

8

Increasing Awareness about Serbia - H.E. Haakon

Blankenborg, Norwegian Ambassador to Serbia

Contents

22

Successful PrivatiSation

- Dr Pavle Marjanović, Director of Actavis Serbia & Montenegro

EDITOR IN CHIEF Tatjana Ostojić t.ostojic@cma.rs

23

Danish Tradition and Quality

- Carlsberg Srbija

ASSISTANT EDITOR Philomena O’Brien p.obrien@aim.rs

24

Lucrative Market

ART DIRECTOR Ilija Petrović i.petrovic@aim.rs EDITORIAL CONTRIBUTORS Zorana Stakić, Ana Stojanović PHOTOS Darko Cvetanović, Slobodan Jotić TRANSLATOR Snežana Bjelotomić PROJECT MANAGERS Vesna Vukajlović, v.vukajlovic@aim.rs; Jelica Lepori, j.lepori@aim.rs GENERAL MANAGER Ivan Novčić i.novcic@cma.rs

10

The Nordic way of doing business - Dragan

Skalušević, Chairman of the Board of Governors of the Nordic Business Alliance

14

Innovation and Sustainability

- Rene Nygaard Jensen, Commercial Advisor at the Royal Danish Embassy in Belgrade

FINANCIAL DIRECTOR Ana Besedić a.besedic@cma.rs

FDI Foreign Direct Investment “Nordic – Serbian Business Synergy 2010” published by: alliance international media in association with Nordic Business Alliance Special thanks to Dragan Skalušević, Chairman of the Board of Governors of the Nordic Business Alliance and Sladjana Božović, Director of the Nordic Business Alliance alliance international media Kneginje Zorke 11b, 11000 Belgrade, Serbia Phone: +(381 11) 308 99 77, 308 99 88 Fascimile: +(381 11) 244 81 27 office@allianceinternationalmedia.com www.allianceinternationalmedia.com ISSN no: 1451-7833 All rights reserved alliance international media 2010

26

Growing Deficit in Trade Exchange - Economic

Cooperation Between Serbia and Denmark

29

EDITORIAL MANAGER Tanja Banković, t.bankovic@cma.rs PRINTING Rotografika d.o.o.

Segedinski put 72, Subotica

- Riku Warjovaara , First Secretary of the Finnish Embassy

CREATING THE FUTURE

- Eurolift & Kone

16

Long tradition of trade - Henrik

Winterstam, Swedish Trade Council, Embassy of Sweden, Belgrade

18

Enhancing Serbia’s Image

- Jelena Marjanović, Assistant Minister, Ministry of the Economy and Regional Development’s Sector for Bilateral Economic Cooperation

A Pronounced Foreign Trade

Deficit - Cooperation Between Serbia and Sweden

40 41 42 43 44 45 46

Denmark

- facts & figures

Finland

- facts & figures

Iceland

- facts & figures

NorwAY

- facts & figures

Sweden

- facts & figures

Company register Rich Cultural Heritage

30

– Denmark

- Economic Cooperation Between Serbia and Finland

Landscape of Natural Wonders - Iceland

Numerous Opportunities for Even Better Economic Cooperation

32

Symbolic Trade Exchange

47 48

Home of Santa ClaUS – Finland

- Economic Cooperation Between Serbia and Iceland

20

33 34

JOVANOVIĆ, Managing Director of SKF Commerce

Cooperation Between Serbia and Norway

THE POWER OF KNOWLEDGE ENGINEERING - PREDRAG

37

Company register

Positive Trends Hindered by the Crisis - Economic

49

A Celebration of Equality

50

Family is Foremost

– Norway

- Sweden

After more than 85 years of existence, we have grown up to be the leading global company in the field of diabetes treatment.

The focus of our work is the fight against diabetes, the prevention of complications, raising the awareness of the general public about diabetes, and education concerning this disease.

Interview H.E. Haakon Blankenborg, Norwegian Ambassador to Serbia

Increasing Awareness

about Serbia

There are some indications that from next year there may be some exports from the Serbian agricultural sector to Norway

I

● You have said that large companies can find what they want in a foreign market rather effortlessly, and that what actually needs to be done is to develop a system that will assist smaller companies.

Has something changed in this respect in Serbia in the meantime?

- At the Embassy we tend to focus on small and medium sized enterprises. This is most of all an Embassy priority due to limited resources. What we find is that the bigger and really big companies always Serbia has highly skilled workers and engineers have more human resources available ● At the beginning of the year, you in the industrial sector and I think this is an asset than the smaller companies. So we fosaid that Telenor’s investment was a for Serbia, both when it comes to production in cus out main efforts and try to give a Serbia, and then export to Norway priority to the small and medium entergood signal to other potential invesprises, not to neglect the bigger ones, tors to explore the Serbian market but we try and give our assistance to those demonstrated by Telenor deciding to invest more thoroughly. In your opinion, to what who need it most. here in 2006. extent has this investment affected investTo summarise, Telenor is a positive sigments made by other Norwegian compa● Did the official visit of the Serbian nal and I think and I hope that we can blame nies or foreign companies in general?

President Boris Tadić to Norway result in the international downturn in the economy - I think indeed that the Telenor investment an increase in the interest of Norwegian when it comes to the development of inis a positive signal - first of all because it companies to invest in Serbia? vestment and trade which has been slower is a huge investment and secondly because - The President’s official visit to Norway than expected. it looks like it has been a success. However n May this year Serbian President Boris Tadić and Minister Slobodan Milosavljević made a very successful visit to Norway with a focus on increasing the awareness of Serbia in the Norwegian business community. Nordic Business in Serbia discusses with Norwegian Ambassador to Serbia, H.E. Haakon Blankenborg, why he considers this trip a success, the current situation in trade between the two countries and how the low level of bilateral trade can be improved.

it has not materialised in substantial further investments or a tangible increase in trade in terms of Norway.

By the way as far as I understand they currently have a case before the courts. The Embassy is not involved in this court process at all, but I am confident that the outcome of this case will confirm the positive impression of Serbia as a predictable and investor-friendly country, which was

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year that there may be some exports from was a great success. It contained, I would say, the Serbian agricultural sector to Norway. It three elements. Firstly it was about political will not be big, but it is a beginning. Both dialogue and contact; it was about strengthPresident Boris Tadić and Minister Slobodan ening the political relations between our two Milosavljević focused on the agricultural seccountries; and it also had a focus on business. tor during their visit to Norway. And if I were When it comes to business we cannot easily to say something personally it would be that measure success after such a short time, parafter nearly five years in Serbia I can confirm ticularly over the summer months. It was imthat Serbia can indeed provide really high portant that the President and the Minister quality products from of Trade met with the the agricultural sector.

Norwegian business The main problem is the extremely low Let’s not forget also community, several value and volume of our bilateral trade that Serbian EFTA, the small and medium sized enterprises, and also and this should be the main concern and free-trade organisation priority for all of us to which Norway bemet with government longs, has just concludofficials, and were able ed an agreement and hopefully that will also to present to all of them the potential of the contribute to an increase in trade.

Serbian market when it comes to investment and trade. So the programme was not about ● Bearing in mind that Norway is a highspecific investments or specific companies ly technologically developed country, what but was more about increasing the awareness Serbian products could be interesting to of Serbia in the Norwegian business commuNorway? nity. I think this was an important contribu- I would say that more cooperation and intion in terms of raising awareness. vestment in what I call the “mechanical engineering” sector could contribute to an in● According to a report of the Serbian crease in trade between the two countries.

Chamber of Commerce, positive trends in Several companies and investors have aptrade exchange with Norway have been hinproached us in Serbia focusing on mechanidered by the global financial downturn. In cal engineering.

2009 Serbia’s exports to Norway dropped by Serbia has a very strong tradition in the in69.1% compared to 2008. At the same time, dustrial sector. This sector has been dramaticalimports dropped by 50.9%. Do you think ly reduced in Norway. Serbia has highly skilled that trade exchange between the two counworkers and engineers in this industry and I tries will return to previous levels? think this is an asset for Serbia, both when it - Yes I think so. It will increase. However comes to production in Serbia, and then export the main problem is the extremely low valto Norway. We intend to take some new initiue and volume of our bilateral trade, and this atives in the very near future to make producshould be the main concern and priority for tion standards in our two countries even more all of us. So even if we manage to increase compatible in order to facilitate more investtrade back to the level of 2008, we will still ment and increased production of Norwegian be at a very, very low level. I don’t have any investors in Serbia. fixed programme on how to improve this but On the other hand the mechanical engineerwe do try to focus on this as much as possiing industry is the sector that has been most ble. There are some indications that from next dramatically affected by the downturn of the economy. So What experiences have Norwegian companies for the time being this is had doing business in the Serbian market? a bit of an uphill struggle, “My overall impression, and from what I hear from the experiencbut from the perspective es of the various companies, is that it is mainly positive. Certain probof Norway this is seen as lems may have occurred but I would say these have been no different one of the ‘green’ assets or more than what one would find in other countries. I would say even of Serbia – the quality of less. So the overall impression is that it positive and the problem very the industry with some often lies in with each case and the technicalities which is normal and I improvements in certain would say this is more or less what one would face in other countries.“ elements.

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Interview Dragan Skalušević, Chairman of the Board of Governors of the Nordic Business Alliance

The Nordic way of

doing business Our main goal is to keep business relations between Nordic and local companies on a good level, to transfer good practices to each other and to implement our strong social and environmental impact in the local business community

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n late May, representatives from the leading companies in Denmark, Finland, Norway, Iceland and Sweden launched the Nordic Business Alliance in Serbia.

This is the 15th foreign business association in Serbia, but the first one that has been established on a multi-national platform. We talk with Dragan Skalušević, Chairman of the Board of Governors of the Nordic Business Alliance about the main reasons for organising the Alliance and what they hope to achieve.

● What are the main reasons for organising the Alliance in this way?

- Unlike others, Nordic countries, and therefore companies, have many similarities and that can also be our strength.

Essentially when you look at Sweden, Denmark or Norway, their business philosophy differs to that of all other countries.

You can recognise a strong presence of values, or should I say it is based on values?

What I have experienced so far, is that with all of those companies who have a corporate character, it is created by its employee’s own personal values. The bottom line is of course profit, but there are different means of reaching it. Nordic culture is more about being reflective and thinking

10 / Nordic - Serbian Business Synergy - 2010

over issues thoroughly, rather than making quick and sudden moves or changes. ● Do you expect that the Alliance will exert a stronger influence by way of dialogue with Serbian officials, bearing in mind that some of the biggest investors in Serbia such Carlsberg, and future investors like IKEA, are members?

- Our main goal is to keep business relations between Nordic and local companies on a good level, to transfer good practices to each other and to implement our strong social and environmental impact in the local business community. Our main goal is not to have a “stronger influence” on the Government. It’s more important to make changes in real life, doing business, than to have an influence on any officials regardless of what country you’re operating in.

Serbia is on the way to the EU and there is existing dialogue between the Serbian

● It is a well-known fact that Nordic business manners and the way Nordic management conducts itself has proven quite popular in the last decade, which has resulted in managers from Northern Europe being sought after all over the world. What is your ● How many Nordic companies are currentview of this? ly operational in Serbia, and have Nordic - Your perception or stereotype is somehow investors shown any interest in investing in based on the truth. Just look at Sweden, a Serbia? country of just 9.2 million people, having so - There are already over 100 companies from many well known and successful companies Nordic countries in Serbia. Some are privatelike Volvo, Ericsson, SAAB, TetraPak, H&M, ly owned franchises; some are major investors IKEA... They are established and respected like Telenor, Carlsberg or IKEA. It is our opinall over the world. The same is valid for othion that once the official date for Serbia becomer Nordic countries and companies. So, it has ing an EU member is known, all those compato be the truth. nies who are currently hesitating investing in The Nordic way of doing business involves Serbia, will invest. Nordic companies are quite nurturing the well-being innovative, but they of employees, it praises don’t like playing with Our business partners need to have fire. They play by rules the same attitude as we do, and there is their differences, it respects people and their which are easy to undera certain code of conduct which is more opinions, and people stand and follow. or less easy to follow don’t argue or quarrel over mistakes in the ● What experiences way other nationalities or companies do. This is have Nordic countries had when it comes to how they are raised and have thought for many investing and doing business in Serbia, bearcenturies - to have a “culture of feedback” ing in mind that you represent a big future and we are proud of it. It’s a different mindset. investor, IKEA? Other companies have noticed this different ap- Speaking of IKEA, it is not easy to find 35 proach of the Nordic countries and they have hectares in Belgrade, believe me. There are accepted it, and appreciate it. some difficulties when it comes to ownership and development of the land, and literal● At the launch you said that the Alliance ly speaking, infrastructure is quite an imporwould endeavour to promote Nordic busitant factor. As I’ve already mentioned, legislaness values in Serbia. What business values tion is quite a challenge here, but the process did you have in mind? of harmonisation of the laws, by-laws and oth- First of all I would say these values are: er regulatory framework is underway, so I hear. respect, being open-minded to ideas and In general, when a foreigner comes onto new suggestions, and also taking responsibiliground, he needs to dedicate some time to “feel ty for your own or your department’s acthe earth beneath”. In Serbia, this takes maybe tions. Another important factor is Corporate a little more time than one might expect.

Social Responsibility (CSR).

“Scandinavian Days” It is not that complicated when written on paper, “Scandinavian Days in Serbia” will be an annual event with different but it’s hard to put this intopics each year. This will have a positive impact on everyone - comto practice, especially if panies operating here can promote themselves for a low budget, and companies that would like to cooperate with Nordic companies can people are from a differcome and visit us and make personal contact. Serbia will be promotent cultural backgrounds. ed to those companies which are not yet established here but we will Our business partners invite them to come and feel the vibe. This year’s topic of “Innovation need to have the same at& Design” is already associated with Scandinavia but in the eyes of titude as we do, and there Nordic companies it is a philosophy in itself. It is not just a simple procis a certain code of coness of inventing something unique, beautiful and different. It is a tough duct which is more or less process that involves a lot of thought, taking into account simplicity, easy to follow. It’s not refunction, production processes and costs. inventing the wheel, and Government and officials from the EU, improving the business climate and legislation in Serbia. Our involvement will be limited to finetuning this.

2010 - Nordic - Serbian Business Synergy / 11

is quite easy if you accept the change as it is, without living in denial that it’s not needed. On the other hand some of the CSR issues are harder to solve, starting from basics – collecting batteries to improving technologies in order to not pollute the environment. In a moment of crisis you need to start with small measures, and education is certainly a good starting point, and it costs nothing. ● What do Nordic business managers complain about when they come to Serbia?

- Well, they don’t complain in that sense.

Usually we talk about challenges that we are facing. Basically, if a situation is considered challenging, we try to find a solution to overcome it. The primary challenge is definitely being a foreigner employed in Serbia. So many papers are needed; there are so many limitations and too many stamps. This is the first situation that people see when they first arrive. Many people understand that its part of the communist heritage’. Still it’s hard to accept this oldfashioned approach.

Dragan Skalušević, IKEA CEO and Chairman of the Board of Governors of the Nordic

Business Alliance; H.E. Mette Kjuel Nielsen, Ambassador of Denmark to Serbia; and ● To what extent can the Alliance help Sladjana Božović, Director of the Nordic Business Alliance at the LAUNCH of THE the Serbian market with promoting itNordic Business Alliance self? always about togetherness - again one of Business Alliance cannot convince poten- As an emerging economy, and a not the important values we rely on. If you just tial investors that the situation is as it is well developed country, Serbia is attracconsider that we can all stand up and start in Norway or Sweden, but we can always tive in itself just for not having an overwith ourselves and donate a bit of monhave enough reasons to point out the good whelmed market. Some of the qualities ey for children’s facilities, education, and things. Certainly one of these good things worth mentioning are definitely: the peohealthcare – and do it on a regular ple speaking foreign languages, bebasis – we can have an influence on ing ready and willing to work and Nordic culture is more about being reflective other companies as well. Or if we learn; Serbian hospitality and spirand thinking over issues thoroughly, rather than do some promotion of some cultural it; Serbia’s intact nature; and from making quick and sudden moves or changes aspects of Nordic countries, where a retail perspective it is really good money is not involved, we could that Serbian customers like to shop raise interest either in Swedish culture or is the valid contracts within CEFTA and and are eager to follow the latest techinspire people in Serbia to start focusing on the bilateral agreements that Serbia has nological gadgets. We like to point out their own cultural heritage. Serbia can earn with Russia, Turkey and others. Another things you can’t buy with money. That’s a lot by showing this “hidden” side. Being good point is that Serbia’s VAT is at a levimportant. Word of mouth is the strongmore open to the world and taking the best el below 20% - whilst in all the surroundest marketing tool when promoting anyof creativity. And Serbs are creative people. ing countries it is higher. thing in the world. This is often forgotIn the years behind us, such tough times ten and so people don’t care what imprescan be overcome only by creative people ● What activities does the Alliance have sion they leave with someone, and there with a strong spirit and optimism. Our plan planned for the future? is never a second chance for a first imis to keep up with society and support cre- The bigger the better, so we still need to pression. For example, one of Serbia’s ativeness, but also a willingness to work in grow and develop. More companies’ means “first impressions” could be the airport or a better business climate. Together we can more experiences to share, and a stronger the highway when you cross the border, make a change.

■ voice to be heard in the community. It is or even the public toilets? So, the Nordic

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Actavis Forest 2010 On April 17, 2010, Actavis Serbia gathered its employees and business partners into ONE environmentally committed team of more than 250 volunteers who planted the Actavis Forest of 2000 fir and spruce trees.

Initiated by Actavis Serbia, the Ecotopia Fund and Tara National Park, this nationwide campaign called “The Forest Sings, the Forest Glitters” (the title comes from a famous national nursery rhyme) has a unique goal – to build up the national awareness of the importance of environmental protection and restore the huge forest area destroyed in a whirl storm in 1996.

2010 - Nordic - Serbian Business Synergy / 13

ACTAVIS Serbia - Marketing & Sales Djordja Stanojevica 12, 11070 New Belgrade ph. + 381 20 99 300 www.actavis.rs Zdravlje - Actavis Company - Production Vlajkova 199, 16000 Leskovac ph. + 381 16 250 244

Interview Rene Nygaard Jensen, Commercial Advisor at the Royal Danish Embassy in Belgrade

Innovation and

Sustainability When analysing the trade between Denmark and Serbia, it is clear that most of the Danish exports to Serbia are machinery for production and pharmaceuticals. Danish imports from Serbia meanwhile are mostly unprocessed steel and copper, as well as fruits and berries

“I

hope that a strong Nordic Business Alliance will also send a signal to other potential investors that Serbia is taking these issues seriously, and thereby creating a better incentive to consider Serbia as a good place for serious foreign investors,” says Rene Nygaard Jensen, Commercial Advisor at the Royal Danish Embassy in Belgrade. ● At the beginning of the year, you said that the most frequent problem that Danish companies had to deal with in Serbia was a lack of proper regulatory framework. Currently is the number of Danish investments in

Serbia increasing or decreasing?

- The interest from Danish investors is increasing, and we have seen more concrete projects in the past year. A few companies have chosen not to invest in Serbia due to either difficult procedures or problems related to trading with the EU.

legal frameworks in Serbia and the EU, which leads to uncertainties among companies. We have seen challenges in the importation of food products due to insufficient sanitary facilities at the border crossings and problems related to imports, processing and re-export due to Serbia’s unratified Stabilization and Association agreement – a problem which is hopefully now solved.

Generally however the situation is improving and mostly these problems occur due to a transition process where many changes happen at a very fast pace.

● Is Serbia currently considered an appealing market to Danish small and medium enterprises?

- Serbian and Danish business structures are quite similar in the sense that in both countries, the majority of companies are small and medium sized. In that sense, Serbia appeals to SMEs from Denmark looking for outsourcing. As a market, Serbian and Danish business Serbia is also accessible to smaller structures are quite similar in the sense that in Danish companies, due to its manageaboth countries the majority of companies are ble size. However the market for often high-priced Danish consumer products small and medium sized ● What other problems have affected the overall number of foreign investments in Serbia, including Danish investments?

- There are often problems related to import and export procedures which are big and very expensive hindrances for companies.

Usually problems occur due to non-aligned

14 / Nordic - Serbian Business Synergy - 2010

● To what extent can the Nordic Business Alliance help with improving cooperation between Serbia and the five Alliance members?

- Serbia has a bright future as a manufacturing country, but in order to make growth sustainable, ● According to a report comthere are many factors that must piled by the Serbian Chamber of be considered and taken care of. I Commerce, Serbia has been resee the Nordic Business Alliance cording a deficit in trading with as a platform for the Nordic busiDenmark to the tune of $32.5 milness community to push forward lion which is a 20% hike comsome of the values we share in pared to the observed period in our region, and which has turned 2009. In your opinion, what needs our companies into sustainato be done in order for this trade ble business operations with glodeficit to be reduced?

- When analysing the trade between Serbia has a bright future as a manufacturing country bal success. The Nordic Business Denmark and Serbia, it is clear that but in order to make growth sustainable there are many Alliance will be the place where Nordic and Serbian companies most of the Danish exports to Serbia factors that must be considered and taken care of can share knowledge about corare machinery for production, and porate social responsibility, anpharmaceuticals. Danish imports ti corruption, etc., as well as becoming a the wood and textile industries. But Danish from Serbia meanwhile are mostly unproccommon standpoint in the Serbian busicompanies will not produce for the home essed steel and copper, as well as fruits and ness community lobbying for these values market - instead they will utilise Serbia’s berries. I think Serbia has a lot to gain by and educating both companies and the surgeostrategic position as well as the attracstrengthening the processing industry withrounding environment. tive free trade agreements with CEFTA, in the country, and thereby increasing the In my opinion, there are two important Russia, the EU, Belarus, etc. exports of processed products of a highthings which the Serbian business commuer value. This would limit the trade deficit nity can benefit greatly from; innovation ● Denmark is a country known for havon an overall basis. The Danish Ministry and sustainability. Most Nordic compaing good managers and the fact remains of Foreign Affairs is working on improving nies manufacture highly specialised niche that you have handled the economic crithe value of production in Serbia through products, either to the consumer market sis much better than countries further targeted programmes, primarily in the or the industrial market. These companies south. How are Danish businesses copsouthern parts of Serbia. have found a global niche where they can ing in Serbia? compete. This is the position that Serbian - There are many reasons why Denmark ● Which economic branches are conducompanies also need to take in the glohas managed to cope with the financial cricive to better cooperation between the balised market. Sustainability is important sis. In this case I think it is difficult to comtwo countries? when seen from an environmental perpare a transition country like Serbia which - As investments in environmental prospective. An entire industry has emerged is still highly dependent on privatisations tection and energy efficiency increases in from increasing energy efficiency and inand foreign direct investments to secure a Serbia, there will also be an increased detroducing alternative energy sources, but currency balance, with an open and highmand for knowledge and solutions from sustainability is much more than that. It ly specialised economy like Denmark, who abroad. This is an area we are following inis in a way a long term perspective on has spent decades adjusting to the glotensely, and we believe that there are excelbusiness. It is in the interest of Serbia as balised economy. The Danish companies lent opportunities for cooperation between well as the foreign companies doing busipresent in Serbia are to a large extent deDenmark and Serbia. We also see a big inness in the country that the Serbian econpendent on the local market, so they have crease in interest among Danish suppliers omy grows, but not at the cost of people’s been suffering from lower sales for the past of machinery and equipment for the agrocomfort or the environment. I hope that a two years. They have mostly managed to industrial sector, so we expect more export strong Nordic Business Alliance also will adjust, by skilfully downsizing and focusin this sector as well. As for Serbian exsend a signal to other potential investors ing on core competencies. It has to be said ports to Denmark, there is a strong growth that Serbia is taking these issues seriousthough, that there are only a few Danish tendency in the food sector. And as I have ly, and thereby creating better incentives companies in Serbia with Danish manmentioned before, we expect a lot from to consider Serbia as a good place for seriagement. The majority of operations have Serbia as a production platform, especialous foreign investors.

■ Serbian management. ly in the field of engineering, but also in is often too small and difficult compared to markets closer to Denmark, which means that especially SMEs will start with markets that are more accessible and which have a bigger potential.

2010 - Nordic - Serbian Business Synergy / 15

Interview Henrik Winterstam, Swedish Trade Council, Embassy of Sweden, Belgrade

Long tradition

of trade

“Examples of improvements that could be made are the facilitation of paperwork for customs matters and improving speed and accessibility in dealings with authorities”

By Ana STOJANOVIĆ

“A

part from performing important administrative reforms to improve the business climate, which should be the main focus, an effective marketing program may be useful in increasing foreign investments,” comments Henrik Winterstam, head of the Swedish Trade Council in Serbia. ● For many years, Sweden has been the most important trade partner to Serbia of all Scandinavian countries. However, the economic cooperation between the two countries is far below their realistic potential according to the Serbian Chamber of Commerce. Do you agree with this assessment and what are the reasons for such a situation?

- Sweden and Serbia have a long tradition of trade and many of the most famous Swedish companies have been operating in this country for quite some time.

Naturally, Swedish companies traditional-

ly have the strongest trade with their neighbouring countries such as Norway, Denmark, Germany and the other EU countries.

Among the markets of Eastern Europe, Poland and other Central European states, Russia as well as the Baltic states are important trading partners, which may be explained by their geographical and, in some cases also, their cultural proximity to Sweden. For most Swedish companies, Serbia is still a market to be discovered. Swedish companies traditionally reach for markets also located far away from their home market. As an example, the US, China and Japan are all among the top-15 largest Swedish export markets. In this sense, Serbia is not

The most effective measure to attract foreign investments would be further progress in integration with the EU too far away geographically. In relation to the Balkans region, most Swedish trade is made with Romania. However, while exports from Sweden to Romania were about 2.5 times greater than exports to Serbia in 2009, it must be remembered that Romania has three times the population and a GDP of 16 / Nordic - Serbian Business Synergy - 2010

nearly four times the GDP of Serbia. In this context, the Serbian market is not unfavourably ranked when talking about Swedish exports to the region. Serbian exports to Sweden could however improve. There was an increase in trade between the two countries up to 2007. During these times of financial turmoil, however, many companies have decided to consolidate their activities and to focus on their largest markets. In this respect, many companies that prior to the crisis were ready to try a market considered being of higher risk, have during the last couple of years decided to wait with such ventures until the financial situation allows it. There is more room for trade between the two countries and hopefully the proceeding European integration will help convince more Swedish companies that Serbia is a future trading partner for them. ● What economic branches are conducive to better cooperation between the two countries?

- The most important Swedish exports to Serbia are telecommunications equipment, industry machinery and other technical appliances, trucks, paper and chemical products. Future cooperation between the two countries may for example consist of assembling or production of certain “Swedish” products, or parts of products in Serbia that are aimed for the Serbian market or other markets in the region. Since

transport costs may be prohibitive for some kinds of products, local assembly has already been considered by some companies.

I also believe we could see more Serbian ajvar and other food products on the shelves of Swedish supermarkets. Serbia as a tourist destination is yet to be discovered by Swedish tourists. Having made their way to Prague, Riga and Budapest, Belgrade may be next. ● Serbia has been recording a pronounced deficit in its trade with Sweden due to the extensive importation of Swedish equipment and a low level of exports to the Swedish market. What Serbian products could be of interest to Swedish companies?

- Currently, Serbia’s single most export- Sweden’s economic assistance to Serbia ed product to Sweden is raspberries, which is largely to adapt Serbia’s policies and are indeed appreciated, but Serbia certaineconomy ready for EU membership ly has the potential to export other kinds of products. Other important categories of try. Problems with the enforcement of paycurrent Serbian exports to Sweden include ments are also sometimes reported as being tyres, different kinds of machines and maan issue. During a certain period we had chine components. In a sourcing context, a remarkably high number of requests reexamples of sectors include furniture mangarding Macedonia, which I believe may ufacturing, clothing, metal manufacture have been a result of marketing campaigns and IT services. There is already export abroad. Apart from undertaking important from Serbia within these sectors, but I beadministrative reforms to improve the busilieve there is more potential. ness climate, which should be the main focus, an effective marketing programme ● What direction should Serbia take in may be useful in increasing foreign investorder to increase the number of foreign ments. However, I believe that the single investments in the country? most effective measure to attract foreign - Examples of improvements that could investments would be further progress in be made are the facilitation of paperwork integration with the European Union, since for customs matters and improving speed this sends signals to the business commuand accessibility in dealings with authornity that Serbia is embarking on the path of ities. While companies are generally very reforms that provide sufficient guarantees satisfied with the telephone and internet for business activities. communication infrastructure, they believe that quite a lot more could be done ● To what extent have Swedish comto improve roads and railroads in the counpanies been hit by POSITIVE EXPERIENCES the economic downturn, and “The overwhelming majority of Swedish companies who are acwere there any tive in Serbia report that they have been positively or very positiveSwedish comly received within the Serbian market. There is a long tradition of copanies that had operation between the two countries and many Serbs and Serbian companies are optimistically familiar with Sweden and Swedish planned to invest products. Most Swedish companies are overall quite satisfied with here but abanthe business climate and most indicate that they see that some posdoned the idea itive reforms are being made to improve it, but there are still issues due to the crisis? that need to be addressed.”

- Most Swedish 2010 - Nordic - Serbian Business Synergy / 17

companies active in Serbia have been affected by the economic downturn, which is natural as purchasing power and local investments plunge in the country. A few companies report that they have been very negatively affected by the economic downturn, but some companies have gone through the crisis without being notably affected by it. I know of no Swedish investment that has been cancelled because of the crisis, but what could be said is that many companies that have yet not taken the step into this market have indicated that they will wait a little longer before making a decision. Many companies are curious about what opportunities may be found in Serbia, but few have it as their “next step” on the agenda and therefore may wait some more, at least until the economic turmoil is over. ● Currently does Sweden have any economic assistance programmes for Serbia, and what is the volume of that assistance?

- Sweden provides economic support to Serbia through the Swedish International Development Cooperation Agency (Sida).

Sweden’s assistance, which is usually channelled through ministries and authorities, is largely to adapt Serbia’s policies and economy ready for EU membership. The work of Sida includes strengthening democratic governance, supporting civil society and improving environmental standards through, for example, supporting waste management and water and sewage purification and supporting ministries and institutions dealing with environmental questions.

The total amount of development assistance to Serbia will be close to 14 million euros per year between 2010 and 2012.

Swedish companies wanting to invest in Serbia can negotiate cooperation with Swedfund, which is a risk capital company specialised in investments in “new markets”. Swedfund works together with strategic partners and offers risk capital in the form of share capital, loans, guarantees and part-financing of leasing agreements.

The Swedish Trade Council assists Swedish companies wanting to establish or deepen their business relations in Serbia through, for example, meeting programs, market analysis and seminars.

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Interview Jelena Marjanović, Assistant Minister, Ministry of the Economy and Regional Development’s Sector for Bilateral Economic Cooperation

Enhancing Serbia’s Image “The geographical distance between our country and the Nordic countries has a significant bearing on the trade exchange deficit, as does indolence, lack of agility and the inadequate dedication of Serbian exporters. I think that there is great potential for trading with these countries particularly when it comes to exporting agricultural produce and food”

By Ana STOJANOVIĆ

S

erbia has enjoyed positive cooperation with the individual Nordic countries for years, however both Nordic and Serbian economic experts say that this cooperation could be raised to a higher level. We talk with the Assistant Minister in the Ministry of the Economy and Regional Development’s (ERD) Sector for Bilateral Economic Cooperation, Jelena Marjanović, about how to improve economic ties between Serbia on one side, and Denmark, Finland, Iceland, Norway and Sweden on the other. ● The overall opinion is that there is plenty of room for the economic cooperation between Serbia and Nordic countries to grow. What further steps should be taken in order for this cooperation to develop further?

- In terms of cooperation between the Republic of Serbia and the Nordic countries, we are not mistaken if we say that the companies from these countries still view Serbia as a relatively unknown business destination. In that respect, it would be good if Serbia was to suggest various formats of economic cooperation and inform the businesses from these countries in regards to what kind of economic and investment potentials we offer. Both Denmark and Sweden have their trade offices here in Belgrade -

Company as one of our biggest exporters to some even have trade councils (Sweden). In the Nordic countries. Great potential also lies May this year, the Nordic Business Alliance in the machinery production industry, metbecame operational in Belgrade. The Ministry al processing and the chemical industry. All of ERD has also recognised the need to initiof these products need to be of good qualiate bilateral economic relations and has delety if we want to become competitive. Nordic gated its own representative to Stockholm who countries see Serbia as a country that has sigwill cover other Nordic countries too. If we are nificant potential when it comes to IT and entalking about Serbia presenting itself to Nordic gineering outsourcing too, mainly because countries, then we need to work on changing these sectors are quite well developed in the image that our country has in these counSerbia and we have many experts in this area. tries, which is still rather unfavourable. In this We certainly do expect the trade deficit will sense, it is important to promote Serbia as a decrease in the following period and expect tourist destination since tourism can directly that the trade exchange with Nordic countries benefit other areas of economic cooperation. will record a positive trend not only because Spa, city and action-based tourism are quite of its very low current level, but also due to popular in Nordic countries and Serbia does the fact that the global financial crisis is subhave a lot to offer in that respect. We ought to siding and the Stabilization and Association be pro-active, bring in young, business-mindAgreement is beed people and There is great potential in trading with ing implemented. show that Serbia today is very dif- Nordic countries particularly when it comes ferent to Serbia in to exporting agricultural produce and food ● There are quite a few big the 1990s. It is alinvestors in Serbia that originate from so important to have direct low-cost flights to the Nordic countries. Do you expect more the capital cities of the Nordic countries.

Nordic investors to enter the Serbian market? ● There is a trade deficit between Serbia - It is a well known fact that Norwegian comand these countries. Do you expect this pany Telenor has made the single largest indeficit, which is currently on Serbia’s side, vestment in the Serbian economy up to this to reduce? point, and this is certainly an important fac- The geographical distance between our tor for other Nordic companies. However the country and the Nordic countries has a sigglobal economic crisis, as well as the crisis in nificant bearing on the trade exchange defiSerbia, has diminished the expected effect of cit, as does indolence, lack of agility and the Telenor’s arrival. Another well known compainadequate dedication of Serbian exporters. ny, Denmark-based pump producer, Grundfos I think that there is great potential in tradhas bought 15 hectares of land in Inđija. Their ing with these countries particularly when it plans to build a factory there have been somecomes to exporting agricultural produce and what delayed due to the economic downturn, food, and due to the fact that this market is but we do expect this problem to be resolved demanding, these products need to be of high in 2010. IKEA has also announced its plans quality. Then there are the textile, rubber and for coming to Serbia and investing over a bilfootwear industries. We should mention Tigar 18 / Nordic - Serbian Business Synergy - 2010

lion euro in the country over a five-year-period. These are all very positive examples that will improve the economic cooperation between Serbia and the Nordic countries.

There is also interest being shown in investing in infrastructure, renewable energy sources, and the development of utility services. There are certain criticisms apropos the quite complicated and non-transparent administrative procedures here with an emphasis put on the regulation guillotine. The Ministry ERD is very committed to this project, as reducing business risks is really important for any company, and not only those originating from the Nordic countries. I would also like to outline that, following the talks between the National Bank of Serbia and the Nordic Investment Bank, Serbia’s internal rating was revised for the better.

We encourage the creation of joint venture companies that will jointly produce and export to both countries, as well as to third-party countries. We would also like to see the transfer of knowledge and technology from Nordic countries to our agri-industry, renewable energy sources, pharmaceutical sector, chemical and machine producing industry and telecommunications.

Bilateral Agreements The Republic of Serbia has signed agreements that stimulate and protect investments with the countries of Sweden and Denmark, and an agreement on double taxation with all the Nordic countries except Iceland. I think that the imminent ratification of the Stabilization and Association Agreement is very important too, as this will change Serbia’s image for the better and have a positive effect on trade, investments and overall bilateral and regional economic cooperation.

The Ministry is quite involved in the implementation of quite a few projects and initiatives which facilitate the cooperation between SMEs from Serbia and the Nordic countries. Bearing in mind that the IPA component III is now open to us (pertaining to regional development projects, environmental projects, transport and raising regional competitiveness), our country could become very interesting to Nordic countries and for the transfer of their technology. ● There are many projects being implemented by the Nordic government that

2010 - Nordic - Serbian Business Synergy / 19

provide assistance to Serbia. To what extent have these projects advanced Serbia’s economic development?

- After the EU and Germany, Norway and the Sweden are the biggest donors of Serbia. In the period since the democratic changes in Serbia until today, Norway has provided 20million-euro worth of grants, and Sweden just a tad less. The projects that these two countries have funded have mostly involved raising the capacities of state administration in the context of EU integration, as well as projects being implemented in agriculture, environmental protection, forestry, water supply and energy which have directly benefitted Serbian economic and regional development.

Denmark gave a total of 25-million-worth of grants, and it is worth mentioning that this assistance was spent on economic incentives, the development of SMEs, increasing employment and assisting SMEs with obtaining loans. We are going to sign an agreement with Denmark soon in regards to financial assistance for the development of the private sector in southern Serbia, i.e. helping the producers of berries in this area. Funds from Finland have been used for environmental protection and for advancing education.

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Interview PREDRAG JOVANOVIĆ, Managing Director of SKF Commerce d.o.o

The Power Of

Knowledge EngIneering In addition to being responsible for the Serbian market, SKF Serbia is also responsible for customer services for Macedonian customers and the coordination of activities for SKF's most important customers in South Eastern Europe

S

KF was founded in 1907 and grew rapidly to become a global company.

Today, SKF is represented in more than 130 countries with more than 100 manufacturing sites and sales companies supported by about 15,000 distributor locations. Such impressive success and the substantial level of operations in Serbia gave reason for us to talk with Predrag Jovanović, Managing Director of SKF Commerce d.o.o. ● Generally, which industrial segments does SKF operate in?

- SKF mostly does business in three divisions: Industrial servicing industrial original equipment manufacturers (OEMs), Service covering aftermarket customers, and Automotive servicing automotive OEMs and aftermarket customers. SKF operates in around 40 customer segments including cars, light trucks, wind energy, railway, machine tools, medical, food and beverage, mining and paper industries. ● What is SKF’s environmental policy?

- Carbon dioxide (CO2) is by far the most

● Do you have any special partnerships with Serbian companies?

- We have two. FKL Temerin a Serbian bearing producer has had a sub-supplier contract with SKF Italy for over ten years, and Kolubara Metal is SKF’s certified partner for electro-motors repairs. When the agreement was signed, it was the first such agreement in Europe. Now, we are enlarging the ● Can you please tell us a little about the scope of cooperation on the implementation company’s operations in Serbia? of SKF’s Lubrication Systems (a partnership - SKF Serbia is a part of the Service of SKF, Kolubara Metal Division in the South There are great and Prva Petoletka Eastern Europe region.

SKF was initially es- opportunities for both Serbian Inzenjering). We are also in the process of tablished in the former and Nordic companies forming a training cenYugoslavia in Belgrade tre at Kolubara Metal where employees of in 1927. The first joint venture agreement EPS will have the opportunity of “in house” ever in former Yugoslavia was between SKF training in line with current industrial procand Belgrade’s bearing producer IKL. Since esses and maintenance practices. the mid-’90s, SKF has grown to serve customer needs in all of SKF’s five platforms: ● How do you see the development of bearings, sealing solutions, services, meNordic business in Serbia? chatronics and lubrication systems, by hav- There are great opportunities for both ing skilled and specialised employees.

Serbian and Nordic companies. Besides the high quality products which Nordic compa● Does your Serbian office have any othnies are delivering to the Serbian market, er responsibilities? there is the opportunity for Serbian com- In addition to being responsible for the panies to learn the latest business princiSerbian market, SKF Serbia is also responples from Nordic companies who represent sible for customer services for Macedonian world benchmarks in their fields. Nordic customers and the coordination of activicompanies can also be a connection for ties for SKF’s most important customers in Serbian exports to the Nordic region.

■ South Eastern Europe. significant greenhouse gas generated as a result of SKF’s operations. We have set a target to reduce CO2 emissions by a minimum of five percent annually, irrespective of production volume. In 2009, the reduction was 18%, compared to a reduction of 9.1% in 2008 and 2.2% in 2007.

20 / Nordic - Serbian Business Synergy - 2010

Interview Dr Pavle Marjanović, Director of Actavis Serbia & Montenegro

Successful PrivatiSation

This leading Iceland-based producer of generic medicine around the world has invested over 35 million euro in the development of production facilities in Serbia so far regulations, but also to European standards.

This opens up a world of new possibilities for us including technology transfer and improving generic production.

By Zorana Stakić

A

ctavis Group is one of the leading global pharmaceutical companies in terms of the production and sale of generic pharmaceutical products. With 5.5% market share, the company currently sits at third place in Serbia. Actavis has invested over 35 million euro in the development of production facilities in Serbia so far. The company is focusing its future business operations on developing new brands with the aim of generating 40% of its turnover from promoting new brands in the following three years. Actavis also aspires to move to second place on the local market, according to Director of Actavis Serbia & Montenegro (a branch of Actavis Group), Dr Pavle Marjanović.

Actavis is one of the few Icelandic companies in the region and in Serbia.

● Are you satisfied with the business results that Actavis has accomplished in the period from privatisation until today?

- Since privatisation, Actavis in Serbia, which is made of Zdravlje Actavis (production site in Leskovac) and Actavis d.o.o. (a sales and marketing office covering Serbia and Montenegro markets), the company has been recording quite dynamic growth. We have increased our market share, and taken our production to a new level by being granted the EU GMP certificate by the Danish Medicines Agency. We are satisfied with the results we have accomplished, and by getting the aforementioned certificate we have managed not only to adapt our production facilities to the relevant local

● What is the main advantage of generic medicine?

- Generic medicine has the same effect as the original one; it is equally as efficient and just as safe as the original. The main advantage is that it provides cheaper yet good quality medical treatment. Once the patent protection of the original medicine expires (which

Producing biological medicine is the future and we do see ourselves participating in that market soon by rule of the thumb lasts 20 years), other generic pharmaceutical companies are allowed to produce and market the medicine’s active ingredient (or the molecule), providing that these companies meet certain regulation criteria. What is marketed is a generic ’copy’ of the medicine which has the equal market position as the original medicine, since it contains efficient and safe ingredients. Such medicine is cheaper both for patients and health funds since there are no costs associated with discovering new molecules, and the associated long-term substantial investments in research and development.

● Will Actavis continue to develop the traditional portfolio of pharmaceutical products for people?

- Actavis, just like

Zdravlje, is traditionally recognised on the local market when it comes to its cardio-vascular product range, including its drugs for the alimentary tract, the metabolism and the central nervous system. We are going to try to launch new molecules from the existing pharmacological groups by offering the latest generic medicines at the old price. In addition to that, we plan to launch a brand new area – diabetology. Together with Russian colleagues we are working on technology transfer so we expect the medicines for the Russian market, as well as for the 54 other European markets, to be produced in facilities in Leskovac.

● Is the company going to add new products to the existing over-the-counter (OTC) range?

- Of course. We are going to develop in two directions. We are going to try to secure an OTC status for individual Actavis’ drugs, like in certain European countries. We are also going to develop new OTC products and dietetic supplements by ourselves and in collaboration with the German company, Roha. ● Do you envisage Actavis producing biological medicine in the future?

- Producing biological medicine is the future and we do see ourselves participating in that market soon. We are working on it and we are doing this in cooperation with a well known strategic partner.

■

Icelandic Companies in Serbia I believe that there are other companies out there who are going to follow our example and invest in Serbia. We have had a very positive experience doing business in Serbia and have established a successful strategic partnership of cooperation with the country’s health authorities. Serbia is not a small market and it is quite prosperous.

22 / Nordic - Serbian Business Synergy - 2010

corporate

Carlsberg Srbija

Danish Tradition And Quality

Numerous analyses conducted by economic experts have shown that the market of Serbia represents one of the major challenges in the region of South East Europe

O

business trends of the environment where the wing to its good position and othcompany operates and grows. er advantages it offers, the market The company follows the main strategic of Serbia has interested many interdirection of achieving all business objectives national companies in positioning their headthrough joint efforts, exchange of ideas and a quarters in Serbia in the course of the previconstant search for new ways of attaining suous decade. One of them is renowned glopreme results. The projects it is currently imbal brewing giant, Carlsberg Breweries A/S, plementing in the country and the region are which launched its operations here six years the foundation of even more successful operaago and, with that strategic positioning, intions of the compacluded the market of ny. Innovativeness Serbia among more During 2010, the company plans to and expertise are than 150 countries implement investments to the amount of its guiding busiwhere it operates. an additional EUR 12.5 million ness principles, and The arrival in the main motive of Serbia proved to be all efforts of the company is to always proa business success in many aspects. Expert vide top-class quality to its consumers. implementation of the vast experience of the In the previous period, marked by the gloother sister companies, primarily holding bal economic crisis, the company has mancompany Carlsberg Group, with a tradition aged to achieve positive results in production, nearly 140 years long, has certainly contribplacement and sales, with evident indicators of uted to the excellent results of the company. growth in the markets where the company exCarlsberg Srbija has been operating sucports as well, despite the general deterioration cessfully in the Serbian market since 2004, employing more than 500 people across the country. Immediately upon its arrival, Carlsberg launched a comprehensive cycle of investments, and, through the acquisition and numerous investment projects, has so far invested a total of EUR165 million into the production improvements in the brewery in Čelarevo. As a result of its continuous efforts, the company has significantly inof the business climate. During creased its market share in a short period of 2010, the company plans to time. It has strategically expanded its product implement investments portfolio, which today, in addition to its leadto the amount of an addiing and most popular brand, LAV, includes tional EUR 12.5 million.

11 new brands, which have been largely acBased on recent reports for cepted by the beer consumers in Serbia. A foJanuary-June 2010, the comcus on satisfying demands and most diverse pany achieved the outstandtastes of consumers, and responding adeing growth of 2.5% in the quately to the tough competition among the market and now covers 26.5% breweries in Serbia, has certainly contributed of the beer market in Serbia. to the results. The company has readily acCarlsberg Srbija advocates the princepted the fact that each market has specifciple that the brewing industry does not ic differences in regard to adjustments to the 2010 - Nordic - Serbian Business Synergy / 23

include beer production only. Principles of following ethical standards are embedded in the principles of corporate social responsibility and represent the imperative of the company’s business operations. Investment into society, care for the local community, natural environment, support to education, and promotion of talented individuals, internship for students, care for employees’ health, initiation and support of events of cultural significance, and promotion of responsible product consumption are just some of the activities implemented by Carlsberg Srbija in Serbia.

The result is reflected through environmental preservation, higher-quality workforce, and raised awareness among interest spheres of the society, with multiple benefits.

Holding company Carlsberg Group was founded back in 1847, owing to the initiative of Jacob Jacobsen, a reputable philanthropist, who founded the first Carlsberg Brewery near the Danish capital. Today Carlsberg Group employs more than 45,000 people, and owing to them, around 100 million bottles of beer from the diverse Carlsberg family are marketed worldwide every day.

■

Interview Riku Warjovaara , First Secretary of the Finnish Embassy

Lucrative Market Serbia’s business and political environment, from the point of view of Finnish businesses, are still unstable

By Ana Stojanović

F

and environmental industry. A new area, also for Serbia in the future, is the so-called ‘welfare service’ area of education, elderly care etc, in which Finland can give support to countries like Serbia. Finland has had good experiences in this area with Japan.

inland is a long-standing business partner with Serbia, but economic cooperation between the two countries is still far be● There has been interest expressed, parlow their realistic potentials. Trade exchange ticularly by Nokia, in having a bigger for 2009 between Serbia and Finland stood at share in the Serbian telecommunications $54.4 million which is a 45% decline commarket. To what extent has the economic pared to 2008. We talk with Riku Warjovaara, downturn delayed Nokia’s plans, as well as First Secretary of the the plans of other Finnish Embassy, Finnish companies concerning matters of in terms of investGood governance and the rule trade exchange and of law has to be firmly established in ing in the Serbian other issues of ecoorder to get more foreign investment market? Is there nomic cooperation. still much interest present?

The interest is definitely there, very much ● What are the reasons for the drop in so, but Nokia or any other company, has to trade exchange levels? respond to this question themselves. The - As far as we understand the drop in trade Embassy of Finland has done work on this by between Serbia and Finland is due to two inviting a trade delegation last year to look reasons. Firstly the economic/financial criinto the opportunity of entering the Serbian sis which has been a worldwide problem and market. Serbia is a very lucrative market had a huge impact on the Finnish economy as in general – we can see how Telenor from well. However the economic fundamentals, Norway has established themselves here. despite heavy public debt, in Finland are in a However, I would like to refer to my point relatively good shape. Still, this is one of the above that good governance and the rule of reasons for the unwillingness of Finnish comlaw has to be firmly established in order to panies to invest anywhere in the world – not get more foreign investment. only Serbia. Secondly, the business and the political environments, from the point of view of Finnish businesses, are still unstable. Good ● Do you expect new Finnish investments to governance and the rule of law are essential. be made in Serbia in the coming period?

- Yes, and the Embassy of Finland is working on this in order to achieve new investments ● What direction should economic cooperin this country. ation between the two countries take and in which sectors should there be a stronger focus? ● What can Serbia do to become even more - Finnish companies have several areas of attractive to Finnish investors? expertise to offer Serbia, and in these areas - As stated above, the business environment Finland is a world-leader. The mining industry together with the political environment has to is one, not to mention the high-tech industry be stable and transparent.

24 / Nordic - Serbian Business Synergy - 2010

● To date, Finland has granted 3.6 million euro to advance regulation in the area of environmental protection and to improve teaching staff in Serbia. How far along are these projects?

- This fund comes directly from the Ministry for Foreign Affairs, and the Serbian authorities need to utilise the fund according to the new legislation. The Ministry will get a progress report accordingly.

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business behaviour Business behaviour in the Nordic countries involves the following: good-governance at the corporate level, transparency, and non-corruption. How compatible is this with Serbian business behaviour? Even though Serbian people are well educated - which is a very good resource - they are part of a society that still has issues to be solved in terms of good governance. This is something which has to be dealt with. The current government has been instrumental on this issue by introducing new reforms – but lot has to be done still.

INTERVIEW IVAN NESTERENKO, MANAGING DIRECTOR, TETRA PAK BALKANS

Regional GROWTH “I would expect much closer cooperation between the governments to make the CEFTA agreement really work. The areas where we need better alignment in the region as well as more clarity are labour laws, customs regulations, environmental protection laws, and food safety policy”

T

in the group. Since 1997 Tetra Pak has invested about 30 million euros in this factory. How has this investment affected business operations and results?

- Since Tetra Pak’s acquisition of the factory in Gornji Milanovac in 1998 we have constantly invested into human resources, machinery, facilities and buildings. The largest single investment occurred in 2009, when we invested nine million euro into a new printing machine, REGIONAL ACTIVITIES which enabled us At Tetra Pak we have very good cooperation between our colto double capacileagues from Serbia, Croatia, Slovenia, Albania and Macedonia, sharty in the producing knowledge and supporting each other, which takes opportunition process and to ties for our customers to a new level. We recognise that their trade exincrease print qualport focus also lies in the region we cover. However, big differences ity. Tetra Pak is alin labour laws and in general legislation in the region do not allow us so an innovative to unify conditions and be more effective. Based on these differenccompany, which es we have been operating locally in each market, allowing us to be means that besides closer to our customers. investing into existing or new production facilities world-wide, the Balkans. The real breakthrough occurred in Group constantly invests into new filling and 1991 when Tetra Pak made the decision to get packaging systems, new openings and closures, closer to its customers and opened its first represponsible resources and energy consumption. resentative office in Belgrade. Since then business operations have grown and accelerated; facing various chal● How is Tetra Pak responding to the crilenges but proving there are always sis? Have you any additional investments in opportunities to grow.

Serbia planned?

- The crisis which we are facing is global and no company is immune, not even Tetra Pak. ● Your factory in Gornji Certainly in these conditions, especially imporMilanovac won the prestigious tant areas to take into account are costs, debt award of “Factory of the Year” collection, sources of supply, as well as mainout of the 42 Tetra Pak converted taining the quality of products and services factories withand we believe that we encompass those atetra Pak has been growing its business in Serbia since 1964 when the first filling machine was sold to PKB Dairy in Belgrade, and then 1966 when Tipoplastika in Gornji Milanovac acquired a licence to produce packaging material. Over the years they have developed a good knowledge of the local dairy and juice industry according to Ivan Nesterenko, Managing Director of Tetra Pak

2010 - Nordic - Serbian Business Synergy / 25

tributes and behaviour. By investing into facilities in Gornji Milanovac we have just increased its capacity. Any new investments in production facilities would be decision of the Group.

● Products and packages from the factory in Gornji Milanovac are exported to nearly 40 countries. What portion is exported to the Balkan region, and what is exported outside the region?

- Today, packaging material from Gornji Milanovac is sold to more than 150 customers in 38 countries. This also means that around 70% of production is for export. We export to all continents except North America. It is also worth mentioning that we are second biggest exporter to Russia. ● How would you rate the business climate in Serbia, and what stands in the way of achieving greater efficiency for your company?

- I would expect much closer cooperation between the governments to make the CEFTA agreement really work. The areas where we need better alignment in the region as well as more clarity are labour laws, customs regulations, environmental protection laws, and food safety policy. We also need more support for investors as we are a local producer and a global exporter, and because of this we promote products produced in Serbia and the region.

■

DENMark Economic Cooperation Between Serbia and Denmark

Growing Deficit in Trade Exchange

DANISH COUNTRYSIDE

In 2003 Danish company Carlsberg bought the Čelarevo Brewery. In the first three years following the acquisition, a total of 100 million euro was invested in the brewery.

In 2007, Carlsberg invested additional 20 million euro

By Tatjana Ostojić

tween January and May 2010, Denmark took the 39th place in the list of Serbia’s foreign trade partners in relation to exports, and 34th place for imports.

In the first five months of 2010, the total goods exchange between Serbia and Denmark stood at $43.9 million which is 25% more than

S

erbia and Denmark have a long tradition in economic areas such as agriculture, textiles and energy, according to a report written by the Serbian Chamber of Commerce. In the period beTrade exchange between Serbia and Denmark

(in million USD)

Year

Export

Import

Total

Balance

2003

4.6

31.3

35.9

-26.7

2004

7.3

58.3

65.6

-51.0

2005

10.4

51.8

62.2

-41.4

2006

11.6

56.7

68.4

-45.1

2007

12.9

80.1

93.0

-67.2

2008

19.2

103.1

122.3

-83.9

2009

13.4

83.4

96.8

-70.0

5/2009

3.9

31.1

35.0

-27.2

5/2010

5.7

38.2

43.9

-32.5

26 / Nordic - Serbian Business Synergy - 2010

Investments In 2003 the Danish company Carlsberg bought the Čelarevo Brewery. In the first three years following the acquisition, a total of 100 million euro was invested in the brewery. In 2007 Carlsberg invested additional 20 million euro. The investments were mostly focused on improving the quality of beer, modernisation of production facilities and environmental protection (close to three million euro has been invested in the waste water purifying system). The investment in this facility is just one out of group of projects that Carlsberg has been implementing with the aim of preserving the environment and the region’s cultural heritage.

the same period last year ($35 million). Serbia’s exports to Denmark went up by 46% and stood at $5.7 million (compared to $3.9 million during the same period last year). Imports from Denmark amounted to $38.2 million, which is a 20% hike in relation to the same period last year ($31.1 milSerbia and Denmark Sign a 10 lion). The foreign trade deficit, on the Serbian side, Million Euro Agreement amounted to $32.5 million and this is 20% highOn 1st July, 2010, Serbia and Denmark signed er than in the same period in 2009. The biggest a 10-million-euro agreement stipulating coopreasons for Serbian exports declining were the reeration in the fruit growing sector. The agreeduced production of sheet metal and the closing of ment will make it possible for farmers in the the two furnaces at US Steel Serbia which was the Jablanički, Nišavski, Pčinjski and Toplički counleading exportties to increase er for 2008. their producThe biggest reasons for Serbian exports Raspberries tion and export. declining were the reduced production of sheet metal top the list of In the words Serbian ex- and the closing of the two furnaces at US Steel Serbia of the Serbian which was the leading exporter for 2008 ports, folAgriculture lowed by furMinister, Saša niture and fridges/freezers.

Dragin, who signed an agreement with the Serbia cannot be satisfied with such export Danish ambassador to Serbia, H.E. Mette Kjuel performance and an emphasis should be placed on Nielsen, Denmark will provide 5.4 million euthe food processing industry which usually generro for the programme, while the rest will come ates a surplus, and is an export-orientated branch. from the Ministry of Agriculture. The proOpportunities also lie in alternative energy gramme will be implemented over a four-year sources, an area in which Serbia has a great poperiod and at least 50% of the women engaged tential. in fruit production and processing in southern Serbia will directly benefit from it.

EXCLUSIVE

representative and distributor

For more than 25 years, Medicon has been the exclusive and authorized representative, distributor and service provider for the renowned Swedish company, Gambro.

The product line includes the most advanced machines, disposables, dialyzers and solutions of the highest quality, used for hemodialysis, continuous renal replacement therapy and peritoneal dialysis. Also, meeting the needs of the hemodialysis patients in Serbia, Medicon has founded two specialized hemodialysis hospitals, in Belgrade and Novi Sad, and thanks to the latest technology equipment and highest quality products for dialysis, produced by the Gambro company, we are proud to provide excellent hemodialysis therapy to patients, not only from Serbia, but also to patients from abroad. Our goal is the care for each individual patient, by providing them with adequate services and fulfilling all safety standards, but above all, with the quality of life and satisfaction that every person deserves.

Branches of Danish Companies in Serbia

Some of the most prominent Danish representative offices in Serbia include: Berry Fine, Belgrade (raspberry trader); Carl Bro a/s, Belgrade (international consultancy cooperating with the European Agency for Reconstruction); COWI d.o.o., Belgrade (consultancy engaged in environmental protection, construction and economy); Carlsberg-the Čelarevo Brewery (brewery); Danisco Ingredients, Belgrade (produces sweeteners, various kinds of sugar, emulsions, artificial colouring, enzymes etc.); Danfoss, Belgrade (research, development and production of mechanical and electronic products and regulators); Grundfos, Belgrade (heating & cooling systems, water pumps and related equipment); Novo Nordisk a/s, Belgrade (diabetes products); VELUX, Belgrade (production of roof windows); West Pharmaceutical Services, Kovin (pharmaceutical production); and Trivax, Belgrade (trading in medical equipment and machines).

2010 - Nordic - Serbian Business Synergy / 27

MEDICON

Vojvodjanska 97, Dec Branch Office Vuka Karadzica 8 11000 Belgrade tel: +381 11 328 5945 fax: +381 11 262 3084 www.medicon.rs

The agreement on the succession of bilateral contracts was signed in July 2003. This agreement includes contracts on economic, industrial and technical collaboration in the transport sector, four contracts on the consolidation of debt of the former Yugoslavia, contracts on measures, arbitration and court settlement, the convention on insurance with ancillary protocol and notes, and the agreement on the extradition of criminals.

The bilateral agreement on debt relief towards the Paris Club creditors was signed with Denmark in December 2002. In April 2006 the agreement avoiding double taxation was initialled in Belgrade. The ’old’ agreement, concluded at the time of the former Yugoslavia in 1996 is valid until a new agreement comes into force. The Danish side is also interested in instigating negotiations about a new convention on social insurance.

Building of the Confederation of Danish Industries in central Copenhagen

The programme’s end result should be a Danish Company Grundfos 10% higher export of fruit and fruit relatPlans to Invest 80 Million Euro ed products, and a 5% increase in producDanish company, Grundfos will invest Danish Government’s tivity. The programme has been devised in close to 80 million euro constructing a waAssistance to Serbia line with the agriculture development proter pump factory in Inđija that will hire 500 Within the framework of assistance to gramme of 2009-2011 and an agriculturworkers. In mid-2010, Grundfos is expected Serbia stipulated at the donor conference, al strategy which to sign a contract Denmark has agreed to donate 15 million eucovers a ten-year on land lease with ro for the implementation of 15 projects from On 1st July, 2010, Serbia and period. the Municipality the year 2000. Out of this amount, Serbia Denmark signed a 10-million-euro Ms. Kjuel of Inđija. This is a has so far received 12 million euro. In 2004 Nielsen said that agreement stipulating cooperation in the greenfield investand 2005 close to 11.2 DKK (or $2 million) fruit growing sector the agreement bement that will rewas donated for projects in Serbia and 84.9 tween the two sult in a new promillion DKK (or $15 million) to regional countries was expected to become operaduction facility, will create new jobs and will projects in the Balkan area. Most of this fitional in the autumn of 2010. The aim of the facilitate a production launch. Most of the nancial assistance has been spent on remote programme is to create new jobs, generate products that Grundfos will produce in Serbia heating systems, rehabilitation of collective more revenue in the fruit growing sector, and will be exported. centres for refugees, free meals, schools, hosto advance the know-how and implementapitals, spare parts for radio transmitters, grotion of European fruit growing and processceries etc. On 15th May 2009, the agreement Intergovernmental ing standards which will increase the valon cooperation between the Serbian Chamber Agreements and Contracts ue of the products and their export. The proof Commerce and the Danish Chamber of gramme entails holding workshops for farmCommerce was signed in Copenhagen. n Exporters and Importers ers in order to teach them about the European The biggest exporters are: ATLE, Belgrade; IMPOL SEVAL, Sevojno; ERGOMADE, Niš; standards in fruit production, as well as the GORENJE, Valjevo; TETRA PAK PRODUCTION, Belgrade; ITN, Belgrade; ALPHA IMAGING, allocation of grants for advancing the producZemun; ELOPAK, Zemun; STUDIO 58, Hajdukovo; COOLPLAY, Belgrade. tion. The programme was devised in cooperThe biggest importers are: PHARMANOVA VELEPRODAJA, Belgrade; EUROLION, Gornji ation with experts from Serbia and the United Milanovac; VELEFARM, Belgrade; VELEFARM-VFB, Belgrade; HIDROELEKTRANE ĐERDAP, States Agency for International Development Kladovo; ERMA, Belgrade; TIGAR GUMA, Pirot; MAGNA FARMACIJA, Belgrade; TETRA PAK (USAID).

PRODUCTION, Belgrade; FARMALOGIST, Belgrade.

28 / Nordic - Serbian Business Synergy - 2010

Eurolift & Kone

CREATING THE FUTURE O

EUROLIFT d.o.o. Niš Stanoja Bunuševca 18a, 18000 Niš Tel/fax: 018/591.230 018/591-237 e-mail: info@euroliftgroup.com www.euroliftgroup.com

(Belgrade, Serbia), Belville (Belgrade, ne hundred years ago, when Kone Serbia), B2 (Belgrade, Serbia), Tri lista duwas founded (in 1910, Helsinki, vana (Belgrade, Serbia), Merkur retail centFinland), our world was a very different er (Belgrade, Serbia), Park City (Novi Sad, place. The first production-line automoSerbia), Metals Bank (Novi Sad, Serbia), bile, Henry Ford’s model T, was just two Shopping Mall Pionir (Nis, Serbia), years old, and only a handful of buildings Shopping Mall Samald (Novi Pazar, Serbia), in the entire world were taller than seven or Casino Flamingo (Djevdjelija, Macedonia), eight floors. The world has changed since EuroStandard Bank (Skoplje, Macedonia), then, and Kone brand has developed from Mall of Montenegro (Podgorica, small machine factory to a global leadMontenegro), Shopping Mall Kamelija er for lifts, escalators and auto walks. It (Kotor, Montenegro), Porto Montenegro was a long road from manufacturing ma(Tivat, Montenegro), and many more. chines in Helsinki to today’s huge compaSince 1991, when Eurolift was found, ny present in more than 50 countries all we have been developing our company. over the world. At a March 14, 1996, Kone After almost 20 years, we have become announced a technology breakthrough that very important partner for all our clients, would revolutionize the industry. Its design because of Kone products, technical knowlengineers had found a way to eliminate edge, but mostly because of our life-time machine room. Kone provide solutions for care for all our partners and their lifts. In residential buildings, hotels, offices, re2009, we have achieved ISO9001 standtail centers, hospitals, and public transporards, that gives even more to our services. tation. Special division, Kone Marine, has Eurolift brand, tosolutions based on gether with Kone leading edge techKone provide solutions for residential brand, is present in nology in elevators buildings, hotels, offices, retail centers, Serbia (Eurolift), and escalators as hospitals, and public transportation Montenegro well as long expe(Eurolift & CG), rience in supplying and Macedonia (Eurolift-Mak). Together solutions for the international shipbuilding with our company Eurolift-inzenjering (speindustry. Now celebrating its 100th annicialized in automatic building doors), we versary, Kone is proud to participate in the are the market leader in Serbia, Montenegro World Expo 2010 as the official national and Macedonia. partner of the Finnish pavilion. Kone is one We are always trying to be better than of the biggest suppliers for elevators and competitors. From project planning, orderescalators for Shanghai World Expo 2010 ing, delivering, installing and maintenance(Pavilion of Australia, Austria, Belgium, we are bringing solutions that allowed peoDenmark, Finland, Ireland, Russia, Spain, ple to ride safely, smoothly, and without London, Coca Cola Pavilion, China waiting. We can win only by working toAviation Pavilion and many more). gether. We encourage participation, and we Kone is a well known brand in Serbia, share information and ideas. We are enerMontenegro and Macedonia through many gized by the drive for continuous improveprojects. Eurolift, as authorized distribment. Together, we can deliver solutions utor for Kone in these markets, supplied that exceed expectations. And it was Kone’s and installed more than 300 Kone units. goal for the first 100 years. Together, we Some of biggest reference cases: Belgrade can create the future.

Arena (Belgrade, Serbia), Airport City n 2010 - Nordic - Serbian Business Synergy / 29

finland Economic Cooperation Between Serbia and Finland

Numerous Opportunities

for Even Better Economic Cooperation

There are close to sixty companies from Finland doing business in Serbia including Nokia, M-Real, Vausala Oyj, Lagerholm, Valtra Valmet, Tamrock Oy – Sandvik and Metso Minerals Corp

HELSINKI

By Tatjana Ostojić

A

lthough Finland is a long-standing trade partner of Serbia’s, the economic cooperation between the two countries is far below what can be achieved and is required according to the Serbian Chamber of Commerce.

The total trade exchange between Serbia and Finland in 2009 stood at $54.4 million, which is a 45% drop compared to 2008 ($99.1 million). Serbia recorded a deficit in trading with Finland that amounted to $37.2 million. The economic cooperation between the two countries was mostly carried out via buy/sell transactions. These transactions make up 76% of Serbia’s total exports, while trading in free zones makes up 17.7% of total exports.

sat at 41st place on the list of countries that Serbia exports too, and 38th place on the list of countries that Serbia imports from.

Trade exchange in the observed period of the first five months of 2010 amounted to $29 million which is a 40% increase in relation to the same period last year ($20.6 million).

Serbian exports went up by 3% to $3.8 million (last year, in the same period, it amounted to $3.8 million), while imports went up by 50% and stood at $29 million (last year it was $20.6 million).

Future Cooperation The biggest opportunity for Serbian companies lies in exporting textiles, leather and clothes on the basis that Finland is an important textile and footwear producer, with only 20% of the country’s demand covered by domestic companies.

In addition to textiles, there is an opportunity to export food and high quality consumer goods. Finland has also expressed an interTrade Exchange est in cooperating with Serbia in areas such In the first five months of 2010, Finland as ecology and education, Trade exchange between Serbia and Finland (in million USD) and has granted 1.6 milYear Export Import Total Balance lion euro for a three-year2005 4.1 30.0 34.1 -25.9 project improving Serbia’s 2006 5.5 38.6 44.1 -33.1 environmental protection 2007 10.1 73.8 83.9 -63.7 regulation and two mil2008 10.5 88.6 99.1 -78.1 lion euro for a project advancing teaching staff in 2009 8.6 45.8 54.4 -37.2 Serbia. Bearing in mind 5/2009 3.7 16.9 20.6 -13.2 that there have been no bi5/2010 3.8 25.2 29.0 -21.4 lateral business meetings 5/2009 3.9 31.1 35.0 -27.2 between the two coun5/2010 5.7 38.2 43.9 -32.5 tries, it would be helpful 30 / Nordic - Serbian Business Synergy - 2010

to organise a presentation on how to do business in Serbia with the help of the Serbian Embassy in Finland. In addition to this, the business delegations from the two countries could meet, and Serbia could present some of its industrial branches with the aim of establishing a more extensive cooperation between the two business communities.

Nokia is particularly interested in having a bigger market share in the Serbian telecommunications sector.

Finnish Companies in Serbia There are close to 60 companies from Finland doing business in Serbia including Nokia, M-Real, Vausala Oyj, Lagerholm, Valtra Valmet, Tamrock Oy – Sandvik and Metso Minerals Corp.

Inter-Governmental Agreements On 16th November, 2005 Serbia ratified the agreement with the Nordic Investment Bank (NIB). The agreement providing mutual incentives and protection of investments was signed in Belgrade in May 2005.

In 2002 Serbia signed two agreements with Finland: the Agreement on Cooperation in the Teacher Development Programme and the Agreement on Cooperation in Developing Legislation in Environmental Protection. In August 2001 the former State Union of Serbia & Montenegro submitted to the Finish side a list containing bilateral agreements that came under succession.

For now Finland has expressed willingness to confirm the validity of the Agreement on International Road Transport. Subsequently in December 2001, the implementation of the Agreement on Avoiding Double Taxation was extended.

Advancing Economic Cooperation The Finish Export Credit Agency (FINNVERA) has branded Serbia as a high-risk country in terms of credit ratings. Despite this the Agency has consented to providing guarantees for Serbian companies for the period of two years, but FINNVERA’s Managing Board first has to confirm this decision. FINFUND (a Finnish development finance company that provides long-term risk capital for profitable projects in developing countries) has also agreed to provide financial support to Finnish companies willing to participate in joint investment projects with Serbian companies. FINPRO is an association that is engaged in promoting export and investments. The Finnish government provides 60% of the association’s funding, which testifies to a close cooperation between the government and the association. FINPRO has over 500 company members and it has set up 52 trade centres in 49 countries. It is through this channel that Finland markets almost 90% of its exports. Over 60% of such centres are located in Europe, and Serbia is covered by FINPRO’s office in Vienna.

Financial Assistance At the Donor Conference held in 2001, Finland offered financial assistance to Serbia & Montenegro to the value of 3.6 million euro. In the past, the Finnish government’s strategy has been to focus more on the entire area of the West Balkans and this strategy was built on a very broad platform. Generally

Nokia is particularly interested in having a bigger market share in the Serbian telecommunications sector speaking, the Finnish government usually concentrates on areas such as development of democracy, the rule of the law and building up institutions with the aim of helping the country to advance towards the EU. Finland has also expressed interest in cooperating with Serbia in areas such as ecology and education and has granted 1.6 million euro for a three-year-project improving Serbia’s environmental protection regulation and two million euro for a project advancing teaching staff in Serbia. The relevant agreements covering these two projects were signed in Belgrade on 23rd July, 2002.

In September 2003, the draft project titled the “Forestry Sector Development in Serbia” was drawn up with a budget of 1.265 million euro. The goal of the project was to assist in the restructuring process carried out in Serbian public enterprises engaged in managing forests. Also, Serbia is counting on Finland’s support with the implementation of the national forestry programme of Serbia.

Via its Foundation for Local Cooperation, the Finish Embassy in Belgrade has given its support to many civil sector projects in Serbia. In 2004, 12 small-sc ale projects received funding from the Finish Embassy, averaging about 6,000 euro per project (the funding ranged from 1,000 to 20,000 euro).

The Embassy provided financial assistance to various NGOs, the Roma people and local alliances, and was focused mainly on state administration, women, children, youth, vulnerable groups, the environment, health, improving safety, eliminating poverty and the prevention of environmental problems.

Between 2000 and 2005, Finland gave a total of 9.23 million in donations and the money was used to finance environmental, educational and forestry projects.

■

Sandvik Tooling is a global marketleading manufacturer of tools and tooling systems for cutting operations as well as of blanks and components.

Sandvik Mining and Construction is a leading global supplier of mining and construction equipment, tools, service and technical solutions for this industries.

Sandvik Materials Technology is a world-leading manufacturer of high value-added products in advanced stainless materials, special alloys, metallic and ceramic resistance materials, as well as process systems.

The Sandvik World

Sandvik Group Sandvik is a global industrial group with advanced products and world-leading positions in selected areas - tools for metal cutting, equipment and tools for the mining and construction industries, stainless materials, special alloys, metallic and ceramic resistance materials as well as process systems.

In 2009 the Group had about 44,000 employees and representation in 130 countries, with annual sales of nearly SEK 72,000 M. SANDVIK Srbija doo Omladinskih brigada 102 11070 Beograd Srbija

2010 - Nordic - Serbian Business Synergy / 31

ICELAND Economic Cooperation Between Serbia and Iceland

Symbolic

Trade Exchange

In line with the sales agreement Actavis Company invested 6.9 million euro in Zdravlje in 2004. The company plans to invest additional 5.7 million euro

The Perlan Building in Reykjavík / Iceland

By Tatjana Ostojić

list of Serbian foreign trade partners in regards to exports and 86th place for imports.

In the same year, the total trade exchange between the two countries stood at $3.89 million which is a 58% increase compared to 2008. Serbia’s exports to Iceland went up by 350% compared to 2008 and amounted to $1.6 million. Serbia imported from Iceland $2.29 million worth of goods which is the same as in 2008. Serbia recorded a deficit of $689,000 in terms of trade exchange.

T

he most prominent features of the economic cooperation between Serbia and Iceland are: a very modest trade exchange volume, a narrow structure of traded goods, no bilateral agreements, and virtually no meetings or visits of business delegations from either country, according to the Serbian Chamber of Commerce.

In 2009 Iceland sat at 73rd place on the Trade exchange between Serbia and Iceland Year

Export

(in thousand USD)

Import

Total

Balance

2000

116

349

465

-233

2001

438

549

987

-111

2002

206

3.984

4.190

-3.778

2003

40

934

974

-894

2004

66

870

936

-804

2005

530

376

906

+154

2006

344

696

1.040

-352

2007

64

1.370

1.434

-1.306

2008

355

2.108

2.463

-1.753

2009

1.601

2.290

3.891

-689

2009/5

37

939

976

-902

2010

403

1.674

2.077

- 1.271

Trade exchange In the first five months of this year, the trade exchange between Serbia and Iceland stood at $2.77 million which is a 200% increase compared to the same period last year. Serbian exports amounted to $403,000 while imports stood at $1.674 million.

As of 2005 Serbia has been constantly recording a deficit in trade with Iceland. In the first

32 / Nordic - Serbian Business Synergy - 2010

five months of 2010, economic cooperation between Serbia and Iceland was mainly conducted through classic buy / sell transactions. The most important goods that Serbia has exported to Iceland in 2010 are the following: organic and inorganic compounds, machinery, automatic data processing devices and electronic spare parts. In regards to goods imported from Iceland, the following dominate the exchange: medical products, saltwater fish, frozen fish, medicine for retail sales, oils and oil products.

Future of the Cooperation Bearing in mind that trade exchange with Iceland is rather modest, the Serbian Chamber of Commerce (PKS) says it is ready to initiate and organise meetings with potential business partners from Iceland in order to increase the exchange of goods. Serbian foods and beverages, primary industry products, fuels and lubricants, passenger vehicles and transport equipment, consumer goods, IT products and construction materials would all be suitable for export to Iceland. Bearing in mind the structure of Iceland’s natural resources, as well as its economy’s profile,

there are mutual interests in areas such as shipbuilding, fishing and tourism.

Cultural and Educational Cooperation In collaboration with the Nordic Council of Ministers, the Balkankult Foundation has become the main coordinator and mediator in a long-standing cultural cooperation between the Nordic and West Balkan states. In 2006 an event called ‘Days of Serbian Culture on Iceland’ was held, at which Serbia presented its art and culture.

Investments of Icelandic Companies in Serbia In regards to investments made by Icelandic companies in Serbia, the Actavis Company has acquired a majority stake in the pharmaceutical company Zdravlje from Leskovac. In line with the sales agreement, the Actavis Company invested 6.9 million euro in Zdravlje in 2004. The company plans to invest additional 5.7 million euro. Most of the money has been invested in reconstructing this pharmaceutical company, research and development and logistics.

In line with the relevant contract, Actavis Group undertook to invest over 20 million euro in Zdravlje which brings the total investments made in the Leskovac-based company close to 25 million euro.

Concluded Agreements There are no bilateral agreements between Serbia and Iceland. At the meeting between the two countries’ officials in Reykjavik in June 2004, Icelandic officials were presented with a draft agreement in regards to avoiding double taxation and an agreement promoting investments. Icelandic officials are yet to respond. n

www.fiskars.com FISIOLINE Oy www.fysioline.fi DENMARK Vrtlarska, 55, 11000 Belgrade, FRUCO d.o.o. +381 11-3166612, Spome ETIC, Director Carl Bro A/S Belgrade fax.+381 11-3166226 , aimagKraljevica Marka 33/23 Jørgen Engel +381 11 3236260, ing@alphaimaging.co.rs 21000 NOVI SAD office@carlbro-serbia.org, www. AQUAMEC WATER MASTER t/f. 021-456114; carlbro.com Dreging technologies, envi021-456213 Carlsberg Serbia d.o.o. ronmental monitoring , www. frucodoo@gmail.com Isaac Sheps +381 11 3303900 aquamec.fi GASOP d.o.o. isaac.sheps@carlsberg.rs AQUAMEC LTD Zaplanjska, 84e, 11040 Belgrade, www.carlsberg.com “Branch Office Belgrade” +381 11-2463274, Cowi Serbia d.o.o. Mirko Eng. Miroslav MITIC, Sales fax. +381 11-463648, Radovanac +381 11 3225948 Koste Jovanovica, 36 gasop_Belgrade@hotmail.com mirr@cowi.com, www.cowi.com 11040 Belgrade, HIAB Danfoss d.o.o. Belgrade +381 11-2468916 Lyftkranar, www.hiab.com Slavica Petrovic +381 dmitic@eunet.rs HM KAPITAL d.o.o.

112098553, slavica.petrovic@ AVANT TECNO Oy Cirila i Metodija 40 danfoss.com, www.danfoss.rs Machines, loaders 21000. Novi Sad Danisco Ingredients +381 www.avanttecno.com tel/fax. 021/6462283 11 3116671, www.danisco.com BIBIS d.o.o. kontakt@hm-kapital.co.rs Ergomade d.o.o. René YUBC, Bul. M. Pupina, www.hm-kapital.co.rs Haarup +381 18 653120 , info@ 10 V/II, room 18 IZOTEH ergomade.com 110070 N. Belgrade, Mr. Zoran MILJANIC, Manager www.ergomade.com +381-11-3132727, Macvanska 21 Grundfos Serbia d.o.o. fax. +381-11-3132666 11000 Belgrade Sasa Ilic +381 11 264 7877 Email: info@bibis.rs / fax. 011-2442491 silic@grundfos.com www.bibis.co.rs izoteh@EUnet.rs www.grundfos.com BRONTO SKYLIFTS JUJO THERMAL Maersk Serbia d.o.o. Petar Fire fighting equipment Thermal paper Visekruna +381 11 3065916, www.bronto.fi JUNTTAN srbmng@maersk.com, COLOUR MASTER CENTER Hydraulic pile/driving machines www.maersk.com Mr. Aleksandar ACIMOVIC, www.junttan.com Novo Nordisk Pharma Managing Director KEMPPI Oy Srbija Predrag Radosevic acimovica@ikomline.net Welding machines&accessories +381 11 222700, 3861837, 3862164 prer@novonordisk.com Juzni bulevar 84, 11000 Belgrade www.kemppi.com KONE Oy www.novonordisk.com EHOM (program AUTO www.kone.com Velux Serbia d.o.o. Ulrik INDUSTRIJE) LABTEH Holst-Jensen +381 11 367 Mr. Aleksandar NAJERICA, Gandijeva, 32, 11000 Belgrade, 0468, ulrik.holst-jensen@velux. Severni bulevar 6, +381-11-2161825 com, www.velux.com 11000 Belgrade Tfax.-11-3175441 /fax. +381 11-3292055 labteh@eunet.rs FINLAND najerica@ehom.co.rs www.labteh.co.rs EUROLIFT LAGERHOLM, Sauna supABLOY ASSA Stanoja Banusevca 18a www.abloy.com 18000 NIS, 381 18 59 35 43, fax. plier lagerholmfinnsauna.com AGROMARKET d.o.o.

381 18 59 12 37 LAMOR Corp. Ab Mr. Zeljko DENDIC, Sales info@euroliftgroup.com www. www.lamor.fi Kraljevackog bataljona, 235/2 eurolift.rs LAROX Corp.

34000 KRAGUJEVAC F-SECURE Filatrations solutions 381 34 30 80 00 Data security company www.larox.com fax. 381 34 30 80 15 www.f-secure.rs LUMON Oy dendic@agromarket.rs FINIMPORT d.o.o. www.lumon.fi “AGROVOJVODINA MEHADobropoljska, 33, M-REAL & MYLLYKOSKI Oy NIZACIJA” a.d.

11000 Belgrade, Printing papers and paper board Sentadrejski put 165 (Rimski +381 11- 3 65 7204 , www.m-real.com Sancevi) 21000 Novi Sad fax. +381 11 - 3657212m, MasFerg Agro” d.o.o.

021/6350278, fax. 021/419129, branko.zrilic@finimport.rs, Mr. DJordje MILOSEVIC, agrovojvodina@Eunet.rs www.finimport.rs Director www.agrovojvodina-mehaFINSKI PAPIR d.o.o.

Futoski put, 10 nizacija.rs Mr. Velibor DJAKOVIC 21000 NOVI SAD ALPHA COPY d.o.o.

Majke Jevrosime 12/I tel/fax. 021/400525 mfagro@ Rajiceva, 18, 11000 Belgrade, 11000 Belgrade, 011-3034049 Eunet.rs +381-11-3206700 tfax. 011-3034048 www.mfagro.rs tfax. +381-11-3206732 velibor@finskipapir.com MEDICO PHARM SERVICE damofli@alphacopy.gr www. www.finskipapir.com Kruzni put 36, alpkacopy.rs FISKARS CONSUMERS Oy 11309 Belgrade (Lestane) +381ALPHA IMAGING d.o.o.

Garden tools, scissors

Company register

Biggest Exporters and Importers in 2007 The biggest exporters to Iceland are: Zdravlje from Leskovac and Kopex MinFitip from Niš.

The biggest importers are: PharmaSwiss, Belgrade; Tropic Trade, Belgrade; Bredeks, Belgrade; Lovac, Belgrade; DTD Ribarstvo, Novi Sad; and Zdravlje Trade, Leskovac.

11-3041600 fax. +381-11-3041620 office@medicopharm.com, medicopharm.com “METALOHEM Eng. Dusan STANIC, Director Zmaj Jovina 47/1 21235 TEMERIN 021/851436 fax. 021/851400 metalohem@neobee.net MIMAS Company d.o.o.

Gen.Mihajla NEDELJKOVICA, 106, BELGRADE fax. +381 11-165085 mimascom@yubc.net MIN Company d.o.o.

Mr. Bogoljub PETROVIC, Director Gospodar Jevremova 12 11000 Belgrade /fax. 011/2185770 mincompany@sbb.rs bogoljub.pet@sbb.co.rs MOLOK Oy Recycling system www.molok.com NOKIA www.nokia.com OUTOTEC www. outotec.com Oy MIRKA Ab Coated abrasieves www.mirka.com PKVM SISTEMI Mr. MOMCILO STEVIC, Manager Danijelova, 8 11040 Belgrade, +381 11-3974612 fax. +381 11-3973952 Email: pkvm@eunet.rs PLANMECA, Dental equipment www.planmeca.com PLANMED. Oy, Mammography equipment www.planmed.com RAITA Oy Equipment & apparatus for indoor arenas and outdoor stadiums www.raitasports.com Mr. Zdravko D. MARAVIC Belgrade t/f. +381-11-3472215 z.maravic@beo rs RAPALA Fishing lures www.rapala.com SAMPO ROSENLEW Harvesters sampo-rosenlew.fi SCANDINAVIAN SECURITY SOLUTIONS d.o.o.

Mr. Branimir RESTOVIC, Director Tadeusa Koscuskog 84 11106 Belgrade t/f. +381-11-3282170 3saa@sbb.rs www.3saa.rs SCP d.o.o.

Kraljice Marije, 39/II 11000 Belgrade Tel/fax. . 011/3343334 fax.011/3229295 sbp@scpBelgrade.rs www.scpBelgrade.rs TEHNIKA HIDRAULIKE d.o.o.

Svetozara Radojcica, 80 G, 11070 NOVI Belgrade 011/3463094 fax.011/3463096 office@tehnikahidraulike.rs cont. on page 45

2010 - Nordic - Serbian Business Synergy / 33

norway Economic Cooperation Between Serbia and NORWAY

Positive Trends Hindered by the Crisis The City Hall (Radhus) in Oslo, Norway

By Tatjana Ostojić

W

hen it comes to classifying Serbia’s foreign trade partners, Norway could be viewed as a relatively important business partner to Serbia bearing in mind that, last year, Norway was placed 45th on the list of 160 countries that Serbia exports to, according to a report written by the Serbian Chamber of Commerce. Of the 199 countries that Serbia imports from, Norway was 54th. A total of 0.09% of Serbian exports ended up in Norway, and 0.08% of overall imports came from Norway.

Chart 1 (below) shows the foreign trade exchange between Serbia and Norway in figures. It covers the period of the last six

years. The data shows that, in the period between 2004 and 2009, the value of Serbian exports to Norway went up fivefold, while imports doubled.

Trade exchange

The chart also shows that Serbia recorded the biggest deficit in trading with Norway in 2006, at $11.7 million. In 2007 the deficit was substantially reduced to $6.8 million, i.e. by 41.9%. In 2008 the deficit stood at only $100,000.

These positive trends of trade with Norway stopped once the global economic downturn erupted. As a result, in 2009 Serbian exports to Norway dropped by 69.1% compared to 2008. At the same time imports declined by 50.9%. The trade balance was negaNorwegian Companies in Serbia tive in 2009 and it amounted to $4.7 The most important Norwegian companies operating in the billion, which is 82 Serbian market are the following: Telenor (telecommunications), Elopak (environmentally friendly packaging for food and beveragtimes more than in es), Rapp Zastava (shipbuilding technology), Siva / Sintef (develop2008. ment of business incubators), Sintef Entrans (developing projects for In the first three SMEs), Statkraft Western Balkans (energy) and Norwegian Airshuttle months of this (low cost airline that flies between Belgrade to Oslo). year, the value of 34 / Nordic - Serbian Business Synergy - 2010

The biggest Norwegian investment in Serbia is Telenor acquiring the mobile telephony operator Mobi 63. This is also the biggest foreign investment in the history of Serbia

Serbian exports to Norway amounted to $1.5 million which is 49.9% less than in the same period last year (exports in Q1 of 2009 amounted to $3 million). Between January and March 2010 imports stood at $2.54 million which is 0.6% more than the same period last year (imports in Q1 of 2009 stood at $2.52 million).

In 2009, Serbia’s exports to Norway mostly consisted of telecommunication devices (32.51%) and vehicles (20.1%).

Serbia also exported general purpose industrial machines (9.75%), and furniture in pieces (8.31%). In 2009, Serbia mostly imported from Norway iron and steel (20.78%), fish and fish related products (12.9%), electrical devices and machines (9.95%), plastic materials in primary form (8.64%), paper, cardboard and cellulose products (7.03%). In Q1 of 2010, Serbia exported general purpose industrial machines, vehicles, furniture, oil and oil products. At the same time Serbia imported steel and iron, plastic materials in primary form, fish and fish related products, paper, cardboard and cellulose products.

In 2009 the ten biggest companies that exported to the Norwegian market made up 77.42% of total Serbian exports. The ten biggest companies that imported from Norway made up 53.03% of total imports.

In Q1 of 2010 there were no significant changes in trade with Norway.

investments According to the National Bank of Serbia (NBS), in the period from 2000 to 2008, the total Norwegian FDIs amounted to $1.556,70 billion.

Note: The National Bank of Serbia collects this data from commercial banks, which means that the information in regards to FDIs is classified per country of payment and not per country that made an investment.

Also, the FDIs made in 2006 do not include Telenor acquiring a mobile telephony licence for $410 million, and an Austrian mobile telephony investment amounting to $425 million, which, according to the BOP methodology, were recorded as capital transfers.

In the observed period (from 2000 to 2008), Norway took third place, behind Austria and Greece, for total net FDIs made in Serbia.

In 2009 there was an investment cash outflow amounting to $741,000.

(in million USD) The biggest Nor- Trade exchange between Serbia and Norway wegian investment in Year Export Import Total Balance Serbia is Telenor acquir2000 116 349 465 -233 ing the mobile teleph2001 438 549 987 -111 ony operator Mobi 63.

2002 206 3.984 4.190 -3.778 In early August 2006 2003 40 934 974 -894 the Serbian Government 2004 66 870 936 -804 and Norwegian com2005 530 376 906 +154 pany Telenor concluded a contract on the ac2006 344 696 1.040 -352 quisition of Mobi 63 and 2007 64 1.370 1.434 -1.306 the mobile telephony li2008 355 2.108 2.463 -1.753 cence for 1.513 billion 2009 1.601 2.290 3.891 -689 euro. This is the biggest 2009/5 37 939 976 -902 foreign investment ever 2010 403 1.674 2.077 - 1.271 made in Serbia. Telenor Source: National Bank of Serbia was also assigned a licompany manufactures milk and fruit juice cence for the second ground telephony drink cartons, and, in 2005 it acquired the operator in Serbia, for which it offered Agrana Pak company (which was founded 1.05 million euro. Telenor will be issued in 1997) of Belgrade. Elopak Serbia prowith a ten-year-licence with the option to duces environmentally friendly packaging extend it for another ten years. The comfor milk and other dairy products. In the pany agreed to start providing commerlast two years, the company invested close cial services within a year of the allocato 3.5 million euro in the modernisation tion of the licence. of its production plant in Serbia. A total Another significant Norwegian investof 1.3 million euro was spent on the acment is the one made by Elopak. This

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Trade exchange between Serbia and Norway (in thousand USD)

Year

2000

Net investments in cash, in 000 USD

0

2001

2

2002

74

2003

280

2004

0

2005

29

2006

1.546.993

2007

3.187

2008

6.135

Total

1,556.700 Source: National Bank of Serbia

quisition of a cardboard packaging printing machine. Today, Elopak Serbia exports 70% of the products it manufactures, of which 50% ends up in Italy. Only 30% is sold domestically.

Future Cooperation Serbian businessmen have expressed interest in advancing economic relations with Norwegian companies particularly with the aim of increasing Serbian exports and changing their structure in order to reduce the current trade deficit. The Norwegian market requires a well-thought out approach, efficient marketing and the establishment of good contacts with certain companies and agencies. It is also important to consider the business connections between Nordic or Scandinavian countries. The Norwegian market is quite closed and there are certain limitations in place despite the country having close relations with the EU and belonging to the European Economic Area (EEA). Serbian businessmen living in Norway suggest that Serbian companies should concentrate on the confectionary industry, agritrade exchange: serbia / norway 2004-2010

Source: Serbian Chamber of Commerce

cultural produce, and organic foods which need to be EU certified.

The Norwegian economy is highly technological and allows substantial funds for financing projects in Serbia. Within the framework of the Strategy for the Republic of Serbia, the Norwegian Parliament decides each year how much financial assistance it will provide to Serbia and what the priorities are for that particular year. In the future, financial assistance to Serbia will be focused on advancing institutions and reforms, economic development (agriculture, supporting SMEs, infrastructure), democratic initiatives (the media), charity campaigns and focusing more on SouthEast Serbia.

Norwegian companies are quite interested in making long-term investments in environmental protection and renewable energy sources in Serbia, namely thermal waters, wind farms and small hydro-electric power plants.

December 2009. The free trade agreement with the states that are members of the European Fair Trade Association (EFTA), which combined have 13 million inhabitSerbia’s Export Opportunities ants, will come into force in 2010, followSerbia’s opportunities for exporting to ing the Serbian Parliament’s ratification.

Norway mainly lie in the following secOnce it comes into force, Serbian compators: food, textiles, footwear, furniture, nies will be able to export to these counIT and tourism (Norwegians are globally tries exempt from paying customs duty. known as spa lovers).

In May 2010 a business forum tiNorway is a member of EFTA which tled “Advancing Economic Cooperation was established by the Stockholm Between the Republic of Serbia and the Convention in 1960. The founding counKingdom of Norway” was held in Oslo, tries were Austria, Denmark, Norway, with many bilateral talks between the Portugal, Switzerland and Great Britain, business people from the two countries while Iceland and Finland joined at a lattaking place. The Serbian Chamber of er stage. Due to the fact that the current Commerce organised the forum in colEU members have left EFTA, the organilaboration with the Serbian Embassy sation today has four members – Iceland, in Norway. The Serbian delegation was Lichtenstein, Norway and Switzerland. made of 16 businessmen who representTo date, EFTA has concluded 18 free ed companies engaged in metal processtrade agreements with third-party couning, electrical engineering, shipbuilding, tries. Serbia’s agreement was concluded in energy, renewable enExporters and Importers ergy sources, environmental proThe biggest exporters to Norway are the following: K&K t e c t i o n , w a ste Electronics doo, Belgrade; Le Belier Livnica, Kikinda; Rapp Zastava, treatment, and IT. Kragujevac Nis, Novi Sad; Simpo Line, Vranje; Jat-Tehnika, Belgrade; Simpo, Vranje; Prvi Partizan, Užice; Ivković doo, Belgrade; and design Representatives and engineering company Enikon, Loznica. of the Regional The biggest importers from Norway are the following: U.S. Steel, Chamber of Smederevo; Hemofarm, Vršac; Squadra doo, Belgrade; Europlast, Commerce of Novi Čačak; MD Imaging doo, Belgrade; Rovex Inženjering doo, Belgrade; Sad and the town Shipyard Bomex, Zrenjanin; Jugohemija, Belgrade; Margo Art, of Užice were also Belgrade; and Peyton Medical doo, Belgrade. present. n

36 / Nordic - Serbian Business Synergy - 2010

sweden Economic Cooperation Between Serbia and sweden

A Pronounced Foreign Trade Deficit In the first five months of 2010 the total trade exchange between Serbia and Sweden stood at $84.7 million, which is an 11% increase compared to the same period last year ($76.2 million)

By Tatjana Ostojić

S

weden has been a long-standing trade partner of Serbia and the most important Scandinavian partner of our country, but the actual economic cooperation between the two countries if far below their needs and capacities. The trade exchange is relatively modest, the structure of traded goods is narrow and Serbia has been recording a pronounced trade deficit due to the extensive importation of Swedish equipment and a low level of exports to the Swedish market. In the first five months of 2010, Sweden took 27th place on the list of Serbia’s most important export partners, and 26th place in terms of imports.

Trade Exchange

Inter-Governmental

In the first five months of 2010, the toAgreements and Contracts tal trade exchange between Serbia and The former People’s Federal Republic of Sweden stood at $84.7 million, which is Yugoslavia (FNRJ) and Sweden concludan 11% increase compared to the same peed an Agreement on Air Traffic in 1958. riod last year ($76.2 million). Serbia exNotes were exchanged on 28th February ported goods worth $17.1 million which 2002, which had the effect of extending is 22% higher than in (in million USD) the same period last year Trade exchange between Serbia and Sweden Year Export Import Total Balance ($14.1 million), while our 2005 22.7 127.0 149.7 -104.3 country’s imports from Sweden also went up by 2006 33.4 178.8 212.2 -145.4 11% to $84.7 million.

2007 45.4 277.0 322.4 -231.6 Serbia has a recorded 2008 46.5 239.8 286.3 -193.3 trade deficit of $50.5 mil2009 34.2 169.7 203.9 -135.5 lion, which is 5% higher 5/2009 14.1 62.1 76.2 -48.0 than the same period in 5/2010 17.1 67.6 84.7 -50.5 2009 ($48 million).

2010 - Nordic - Serbian Business Synergy / 37

the validity of the Agreement on Avoiding Double Taxation and the Agreement on Promotion and Protection of Investments.

In September 2002, the Agreement on Re-admission between Sweden and the Federal Republic of Yugoslavia was signed in Belgrade. The Agreement on Succession of Bilateral Agreements became valid on 20th January, 2003 and it incorporates seven agreements covering transport, debt consolidation and social insurance. The agreement and its ancillary Protocol on Consolidation of Debt towards the Paris Club Creditors have still not been signed.

The protocol was initialled by the Swedish side and the National Bank of Serbia in October 2003, and the Central Bank of Montenegro in June 2004. The debt stipulated in this agreement was agreed upon in February 2003.

The Republic Road Directorate and Swedish Road Administration have also jointly implemented the Twinning Project (2004-2007).

In November 2005 Serbia and Sweden signed the Memorandum on Cooperation in the Energy Sector. The two sides are also due to sign an amendment to the Special Agreement between the Swedish and Serbian Government on support rendered to the Serbian Ministry of Mining and Energy.

vestment company East Capital established the Balkan Fund. With this fund the company’s main aim has been to invest in banking and the agricultural/food processing sector in the Balkans. East Capital is very active on the Belgrade Stock Exchange, and has acquired the shares of 28 different companies from Serbia so far (including Efes Brewery from Zaječar, the Leather Factory from Swedish Investments Ruma, and Sunce from Sombor) for 40 in Serbia million euro which is 5% of the total stock In mid-September 2004, Swedish inexchange turnover.

Biggest Exporters and Importers Volvo has invested close to In the first five months of 2010, the following Serbian compa30 million eunies exported the most to Sweden: Tigar Gume, Pirot; Sirogojno ro by opening Company, Sirogojno; Mars, Petrovaradin; Unimet, Kać; Tarkett, Bačka Palanka; Eurosax, Belgrade; U.S. Steel, Smederevo; DTM Konsult, new service shops Čačak; Tigar Trade, Pirot; and ViB, Subotica. in Novi Sad and Serbian companies that imported the most from Sweden in the Čačak for the 700 same period are: Tetra Pak, Belgrade; Telekom Serbia, Belgrade; Volvo trucks used Tarkett, Bačka Palanka; Intercel, Šabac; Intertron, Vršac; Begej Projects,

by Serbian comZrenjanin; Bambi-Banat, Belgrade; Grand Motors, Belgrade; Volvo, panies. On 1st Novi Banovci; and Oriflame, Belgrade.

January 2006 the 38 / Nordic - Serbian Business Synergy - 2010

sales activities of Volvo trucks in Serbia were transferred to Volvo’s daughter company Volvo Kamionska Korporacija (the Volvo Truck Corporation).

By doing this, Volvo took over all the sales activities of the Belgrade-based company Volex Truck. Early in 2005 the Swedish telecommunications company Ericsson signed a contract with Telekom Serbia worth 30 million euro, aimed at expanding and improving the Serbian GSM network. In May 2006 Tele Group from Belgrade signed a partnership contract with Ericsson Enterprise AB, and as a result the company became an authorised partner to Ericsson, providing telecommunication services in the territories of Serbia, Montenegro and the Republic of Srpska.

In December 2006 Swedish company La Fantana opened a two-million-euro water factory in Aleksandrovac, which is one of the biggest foreign greenfield investments in this sphere. La Fantana distributes water in water cooler systems, and has been operational in Serbia since mid-2004.

Swedish company IMG and Electric Power Industry of Serbia (EPS) have signed a 3.1-million contract for the implementation of the project ‘Advancing Electricity Distribution System in South Serbia’.

In 2007 the Simpo Company concluded a cooperation contract with the globally renowned furniture producer IKEA. This Swedish company has invested 500,000 euro in expanding and improving the production capacities of Vranje-based Simpo.

The two countries are also preparing several extensive economic projects including cooperation between the Goša Company and Swedish companies Semcon; Nova Train and Widmark & Platzer; and cooperation between Energoprojekt and ABB Utilities.

The volume of Swedish FDIs in Serbia is rather modest. In 2003 the country invested $294,000 and in 2004, $720,000.

Swedish Companies in Serbia There are over 40 Swedish companies operating in Serbia with 19 of them engaged in production, mostly in the area of road transportation. Some of these companies are: Ericsson, Volex Turck Volvo, Tetra Pak, Jacobi Carbons, ABB, Scania Serbia, ABS Pumps, Frigoskandia Equipment, Oriflame Cosmetics, Lindab and Nordic Corporation.

Swedish Donations to Serbia In the period between 1995 and 2005, Sweden donated a total of 140-million-euro for environmental projects, the development of the private sector, labour and employment, and the development of civil society. In July 2004, Sweden submitted its ‘Country Strategy Paper’ for Serbia and Montenegro which covered the timeframe until 2007. The amount of 20 million euro, as stipulated in the paper, was spent on institution building, and not on infrastructure as had been the case previously.

The Swedish International Development

Agency, SIDA doIKEA IN SERBIA nated 20 million IKEA’s CEO, Michael Ohlsson is coming to Belgrade in mid-October euro in humanitarto meet with the Serbian Prime Minister Mirko Cvetković to discuss ian aid to Serbia opening of an IKEA production plant in Serbia, as well as to meet between the pewith potential suppliers. IKEA’s condition is that at least 50% of supriod of 2004 and pliers come from the local market, and that they provide high qual2006. This was ity for a reasonable price. IKEA plans to invest close to 1.1 billion euspent on institutionro in Serbia. al reforms, human rights, SMEs, dealThe total value of the three SIDA projects ing with organised crime and corruption, implemented so far is around three million environmental protection and increasing euro. SIDA is also implementing a protransparency in the privatisation process. gramme called ‘Start East’ through which In 2004 the Swedish International Swedish SMEs are granted loans with the Development Agency (SIDA) and the aim of investing in transitional countries.

European Bank for Reconstruction and Since 2003 a total of 18 such projects, Development (EBRD) collaborated on the worth 2.8 million euro, have been implereconstruction of the remote heating sysmented in Serbia. tem in Belgrade. They donated a total of The Swedish Environmental Protection 5.1 million euro to advance the heating Agency (SEPA) has been selected as the system in the Serbian capital city. Thanks leader in environmental cooperation with to the Swedish government’s donations Serbia over the years between 2005 and over the last three years, infrastructure in 2010. The Swedish government will set the areas that are covered by electric disaside 100 million euro for environmental tribution companies in Niš, Leskovac and projects.

Vranje has been significantly improved. n

VOLVO TRUCKS.DRIVING PROGRESS www.volvotrucks.rs

2010 - Nordic - Serbian Business Synergy / 39

facts & figures

D Full name: Kingdom of Denmark Population: 5.5 million (UN, 2009) Capital: Copenhagen Area: 43,098 sq km (16,640 sq miles) Major language: Danish Major religion: Christianity Life expectancy: 76 years (men), 81 years (women) (UN) Monetary unit: 1 krone = 100 ore Main exports: Machinery and equipment, foodstuffs, chemicals GNI per capita: US $59,130 (World Bank, 2008) Political system: Monarchy with a parliamentary democracy of government, Queen Margrethe II

Denmark

enmark is a Scandinavian country in Northern Europe. It is the southern-most of the Nordic countries, located southwest of Sweden and south of Norway, and is bordered to the south by Germany. Denmark is surrounded by both the Baltic and the North Sea. The country consists of a large peninsula, Jutland and hundreds islands (often referred to as the Danish Archipelago), of which the most notable are Zealand, Funen, Vendsyssel-Thy, Lolland, Falster and Bornholm.

Denmark is a constitutional monarchy

EConOMY Denmark’s mixed economy features above average European living standards and a high amount of free trade. Denmark ranks 16th in the world in terms of GDP (PPP) per capita and ranks fifth in nominal GDP per capita.

According to the World Bank Group, Denmark has the most flexible labour market in Europe, known as “flexicurity”, meaning “easy to hire, fire, and find a job”.

Denmark is one of the most competitive economies in the world according to World Economic Forum 2008 report, the IMD,

From 2006 to 2008, surveys ranked Denmark as “the happiest place in the world”, based on standards of health, welfare, and education with a parliamentary system of government.

It has a state-level government and a local government divided into 98 municipalities. It has been a member of the European Union since 1973, although it has not joined the Eurozone. Denmark is a founding member of NATO and the OECD and is also a member of the Organization for Security and Cooperation in Europe (OSCE).

The Danish language is close to Swedish and Norwegian, with which it shares strong cultural and historical ties

Copenhagen

40 / Nordic - Serbian Business Synergy - 2010

and The Economist. According to rankings

by OECD, Denmark has the freest financial market in the EU-15 and also one of the most open product markets.

Denmark has a company tax rate of 25% and a special time-limited tax regime for expatriates. The Danish taxation system is both broad based (25% VAT, not including excise, duty and tax) and has the world’s highest income tax.

Denmark is recognised for its food industry, dairy production, retailing, wind turbine cooperatives, and co-housing associations.

Main exports include: machinery, animals and foodstuffs, chemicals and oil and gas.

Denmark is a net exporter of food and energy and has for a number of years had a balance of payments surplus while battling an equivalent of approximately 39% of GNP foreign debt or more than 300 billion DKK. Denmark has the world’s highest level of income equality and the best business climate in the world, according to the U.S. business magazine Forbes. Between 2006 to 2008 surveys ranked Denmark as “the happiest place in the world”, based on standards of health, welfare, and education. The 2009 Global Peace Index survey ranked Denmark as the second most peaceful country in the world. In 2009 Denmark was rated as one of the least corrupt countries in the world according to the Corruption Perceptions Index, ranking second only to New Zealand.

■

F

Finland

inland is situated in the Fennoscandian region of Northern Europe. It is bordered by Sweden to the west, Norway in the north and Russia to the east, while Estonia lies to its south across the Gulf of Finland.

Around 5.4 million people reside in Finland, with the majority concentrated in the southern part of the country. It is the eighth largest country in Europe in terms of area and the most sparsely populated country in the EU. A total of about one million residents live in the Greater Helsinki area. Other larger cities include Tampere, Turku, Oulu, Jyväskylä, Kuopio, Kouvola and Lahti.

Finland joined the European Union in 1995, and has been part of the Eurozone since its beginning. It has been ranked as the second most stable country in the world

es. Forestry, paper factories, and the agricultural sector (on which taxpayers spend around three billion euros annually) are politically sensitive areas to rural residents.

Finland is highly integrated in the global economy, and international trade is a third of GDP. The EU makes up 60% of the total trade. The largest trade flows are with Germany, Russia, Sweden, the UK, the US, Netherlands and China. Trade policy is managed by the EU, where Finland has traditionally been among the free trade supporters, except for agriculture. Finland is the only Nordic country to have joined the Eurozone.

Finland’s ten largest companies are Nokia (electronics), Stora Enso (forest), Neste Oil (oil trade), UPM-Kymmene (forest), Kesko (wholesale trade/ daily goods), SOK (wholesale trade/ daily goods),

Finland has a highly industrialised free-market economy with a per capita output equal to that of other European economies in a survey based on social, economic, political and military indicators.

Economy Finland was a relative late-comer to industrialisation, remaining a largely agrarian country until the 1950s. Thereafter, economic development was rapid, and the country reached the world’s top income levels in the 1970s. Between 1970 and 1990 Finland built an extensive welfare state.

Today, Finland has a highly industrialised free-market economy with a per capita output equal to that of other European economies. The largest sector is services at 65.7%, followed by manufacturing and refining at 31.4%. Primary production sits at 2.9%. In regards to foreign trade, Finland’s key economic sector is manufacturing. The largest industries are electronics (21.6%), machinery, vehicles and other engineered metal products (21.1%), forest industry (13.1%) and chemicals (10.9%).

Finland possesses timber resources and several mineral and freshwater resourc-

Metsäliitto (forest), Outokumpu (mining, metals, metal products), Metso (mining, metals, metal products) and Nordea Pankki Suomi (finance and investment).

■

facts & figures

Full name: Republic of Finland Population: 5.3 million (UN, 2009) Capital: Helsinki Area: 338,145 sq km (130,559 sq miles) Major languages: Finnish, Swedish Major religion: Christianity Life expectancy: 76 years (men), 83 years (women) (UN) Monetary unit: 1 euro = 100 cents Main exports: Machinery and electronics, paper and paper products, chemicals GNI per capita: US $48,120 (World Bank, 2008) Political system: Representative democracy with a semipresidential parliamentary system

helsinki

2010 - Nordic - Serbian Business Synergy / 41

facts & figures

Full name: Republic of Iceland Population: 323,000 (UN, 2009) Capital: Reykjavik Area: 103,000 sq km (39,769 sq miles) Major language: Icelandic Major religion: Christianity Life expectancy: 80 years (men), 83 years (women) (UN) Monetary unit: 1 krona = 100 aurar Main exports: Fish and fish products, metals GNI per capita: US $40,070 (World Bank, 2008) Political system: Republic with a written constitution and a parliamentary form of government

I

Iceland

celand is a European island country located in the North Atlantic Ocean, on the Mid-Atlantic Ridge. It has a population of about 320,000 and a total area of 103,000 square kilometres. The capital and largest city is Reykjavík, with the surrounding area being home to some two-thirds of the national population. Iceland is volcanically and geologically active. The interior mainly consists of a plateau characterised by sand fields, mountains and glaciers, while many glacial rivers flow to the sea through the lowlands.

Iceland is warmed by the Gulf Stream and

Economy Iceland has a free market economy with relatively low taxes compared to other OECD countries, while maintaining a Nordic welfare system providing universal health care and tertiary education for its citizens. In recent years, Iceland has been one of the wealthiest and most developed nations in the world. In 2007 it was ranked as the most developed country in the world by the UN Human Development Index, and the fourth most productive country per capita.

In 2007 Iceland was the seventh most

Most Icelanders are descendants of Norse (particularly from Western Norway) and Gaelic settlers has a temperate climate despite a high latitude just outside the Arctic Circle.

Iceland is a developed and technologically advanced society. Icelandic culture is founded upon the nation’s Norse heritage. Most Icelanders are descendants of Norse (particularly from Western Norway) and Gaelic settlers. Icelandic, a North Germanic language, is closely related to Faroese and some West Norwegian dialects.

Many political parties remain opposed to EU membership, primarily due to Icelanders’ concern about losing control over their natural resources.

reykjavik

productive country in the world per capita (US$54,858), and the fifth most productive by GDP at purchasing power parity ($40,112). Except for its abundant hydroelectric and geothermal power, Iceland lacks natural resources; historically its economy depended heavily on the fishing industry, which still provides 40% of export earnings and employs 7% of the work force.

The economy is vulnerable to declining fish stocks and drops in world prices for its main material exports: fish and fish products, aluminium, and ferrosilicon.

In 2008, the nation’s banking system systematically failed, causing significant economic contraction and political unrest that led to early parliamentary elections making Jóhanna Sigurðardóttir the country’s Prime Minister.

■

Iceland has a free market economy with relatively low taxes compared to other OECD countries, while maintaining a Nordic welfare system providing universal health care and tertiary education for its citizens

42 / Nordic - Serbian Business Synergy - 2010

N

norway

orway is a Nordic country in Northern Europe occupying the western portion of the Scandinavian Peninsula, as well as Jan Mayen and the Arctic archipelago of Svalbard. It is one of the most sparsely populated countries in Europe. The majority of the country shares a border to the east with Sweden; its northern-most region is bordered by Finland to the south and Russia to the east. Denmark lies south of its southern tip across the Skagerrak Strait. The capital city of Norway is Oslo. Norway’s extensive coastline, facing the North Atlantic Ocean and the Barents Sea, is home to its famous fjords.

Although having rejected EU membership in two referendums, Norway maintains close

The country is richly endowed with natural resources including petroleum, hydropower, fish, forests, and minerals. Large reserves of petroleum and natural gas were discovered in the 1960s, which led to a boom in the economy. Norway has obtained one of the highest standards of living in the world in part by having a large amount of natural resources compared to the size of the population. The Norwegian welfare state makes public healthcare free, and parents have 12 months paid parental leave. Norway has a very low unemployment rate, currently 3.1%.

The hourly productivity levels, as well as average hourly wages in Norway are among the highest in the world.

Norway has obtained one of the highest standards of living in the world in part by having a large amount of natural resources compared to the size of the population ties with the union and its member countries.

Norway is a founding member of the UN, NATO, the Council of Europe, and the Nordic Council, and is a member of the European Economic Area, the WTO, and the OECD.

Economy Norwegians enjoy the second highest GDP per capita and third highest GDP (PPP) per capita in the world, maintaining first place in the world in the UNDP Human Development Index (HDI) for six consecutive years (2001–2006), and then reclaimed this position in 2009.

The Norwegian economy is an example of a mixed economy - a prosperous capitalist welfare state featuring a combination of free market activity and large state ownership in certain key sectors such as the strategic petroleum sector (Statoil), hydroelectric energy production (Statkraft), aluminium production (Norsk Hydro), the largest Norwegian bank (DnB NOR), and telecommunication provider (Telenor). Through these big companies, the government controls approximately 30% of the stock values at the Oslo Stock Exchange.

Norway is a major shipping nation and has the world’s sixth largest merchant fleet, with 1,412 Norwegian-owned merchant vessels.

The cost of living is about 30% higher in Norway than in the US and 25% higher than the UK, however the standard of living in Norway is amongst the highest in the world.

Continued oil and gas exports coupled with a healthy economy and substantial accumulated wealth lead to a conclusion that Norway will remain among the richest countries in the world in the foreseeable future.

■

facts & figures

Full name: Kingdom of Norway Population: 4.8 million (UN, 2009) Capital: Oslo Area: 323,759 sq km Major language: Norwegian Major religion: Christianity Life expectancy: 78 years (men), 83 years (women) (UN) Monetary unit: 1 Norwegian krone = 100 ore Main exports: Fuels and fuel products, machinery, metal products GNI per capita: US $87,070 (World Bank, 2008) Political system: Government of parliamentary democracy under constitutional monarchy

oslo

2010 - Nordic - Serbian Business Synergy / 43

facts & figures

T Full name: Kingdom of Sweden Population: 9.2 million (UN, 2009) Capital: Stockholm Area: 449,964 sq km Major language: Swedish Major religion: Christianity Life expectancy: 79 years (men), 83 years (women) (UN) Monetary unit: 1 Swedish krona = 100 ore Main exports: Machinery and transport equipment, paper products, chemicals Political system: Monarchy with a parliamentary democracy of government, King Carl XVI Gustaf

sweden

he Kingdom of Sweden is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden has land borders with Norway to the west and Finland to the north-east, and across water is surrounded

by Denmark, Germany and Poland to the south and Estonia, Latvia, Lithuania and Russia to the east. Sweden is also connected to Denmark by a bridge-tunnel across the Öresund.

Sweden is the third largest country in the EU by area, with a low population density of 21 inhabitants per square kilometre. About 85% of the population live in urban areas,

tions, and a skilled labour force. Timber, hydropower and iron ore constitute the resource base of an economy heavily oriented toward foreign trade. Sweden’s engineering sector accounts for 50% of output and exports.

Telecommunications, the automotive industry and the pharmaceutical industries are also of great importance. Agriculture accounts for two percent of GDP and employment.

The twenty largest (by turnover in 2007) companies registered in Sweden are Volvo, Ericsson, Vattenfall, Skanska, Sony Ericsson Mobile Communications AB, Svenska

Sweden’s engineering sector accounts for 50% of output and exports and it is expected that these numbers will gradually rise as a part of ongoing urbanisation. Sweden’s capital is Stockholm, which is also the largest city in the country (population of 1.3 million in the urban area and with two million in the metropolitan area).

Sweden is a constitutional monarchy with a parliamentary democracy of government and has been a member of the EU since January 1st, 1995.

Economy Sweden is an export-oriented mixed economy featuring a modern distribution system, excellent internal and external communica-

Cellulosa Aktiebolaget, Electrolux, Volvo Personvagnar, TeliaSonera, Sandvik, Scania, ICA, Hennes & Mauritz, Nordea, Preem, Atlas Copco, Securitas, Nordstjernan, and SKF. Sweden’s industry is overwhelmingly in private control.

The World Economic Forum 2009-2010 competitiveness index ranks Sweden the fourth most competitive economy in the world. Sweden is ranked sixth in the IMD Competitiveness Yearbook 2009, scoring high in private sector efficiency.

Swedes have rejected the euro in a popular vote, and Sweden maintains its own currency, the Swedish krona (SEK).

■ GDP per capita in selected countries Adjusted for price level 2007. EU27=100

stockholm

Luxembourg Norway Ireland Switzerland Netherland Iceland Austria Sweden Denmark Belgium United Kingdom Finland Germany France Italy Greece Portugal Poland

278 184 149 140 133 129 127 126 123 120 118 117 113 111 101 97 75 54

Source: Eurostat

44 / Nordic - Serbian Business Synergy - 2010

Fax: +381-21-711 061 Attn: Gojko Kunovac, General Manager Mr Goran Brankovic BT – Gorenje Invest d.o.o.

AKZO NOBEL – CONING PPI Beograd Kosovska 2,21000 N. Sad Bulevar Milutina Milankovica Tel: +381-21-557 392 7,11000 Belgrad Fax: +381-21-557 483 Tel: +381 11 / 3539-842 Attn: Mr Miloje Aleksic, Fax: +381-11-353 4111 General Manager Attn : Mr Zoran Đinović www.coning-ppi.co.yu CINI d.o.o Cacak - VISION AKZO NOBEL INDUSTRIAL TECH COATINGS AB ul. 15 bb, 32000 Cacak/Beljina Stevana Milovanova 7/5 Tel: +381-32-263 305 21000 Novi Sad Fax: +381-32-263 306 Mr Goran Bogicevic, Regional Attn: Mr Slobodan Spasovic, Techical Sales Manager Director Alfa Laval South East DYNAPAC – GRADITELJ Europe, representative GROUP office Belgrade Gandijeva 122B, 11070 Belgrade Bulevar Slobodana Jovanovica 4a 21000 Novi Sad Tel: +381-11-31 89 755 Tel: +381-21-48 08 400 Fax: +381-11-31 89 75 Fax: +381-21-48 08 466 Attn: Vit Pekarek, M.D. for Attn: Mr Sasa Sekulic, Manager South East Europe ELECTROLUX AB – Rep office ALSTOM POWER Dositejeva 17/I; 11000 Beograd Gracanicka 1,11000 Beograd Tel: +381-11-2627 779 Tel: +381 112185310 Fax: 381-11-2620-814 Fax: +381 112638109 Attn: Mr Dusan Grahovac, Miodrag Jelisavcic, Manager General Manager LM ERICSSON INTERNAWeb: www.alstom.com TIONAL AB ASTRA ZENECA UK LTD / Vladimira Popovica 6 Rep office for Serbia and 11070 Novi Beograd Montenegro Tel: +381-11-311 3899 Augusta Cesara 12 Fax: +381-11-311 2249 11000 Beograd FERROMET BEOGRAD AB Tel: + 381 11 33 36 920 Vlajkoviceva 12, 11000 Beograd Fax: + 381 11 36 74 310 Tel: +381-11-322 46 33 Attn: Mr Dejan Sencanski, Fax: +381-11-322 21 53 Country Manager Attn: Mr Branko Jovanovic, ATLAS COPCO A.D Manager Milutina Milankovica 23 LABTEH d.o.o.

11070 Novi Beograd Gandijeva 144 Tel: +381-11-311 66 20 11070 Novi Beograd Fax: +381-11-311 55 78 Tel: +381-11-2161 825 Attn: Mr Predrag Ilibasic, Fax: +381-11-3175 441 Gen. Manager Attn: Mr Zoran Milic, Director www.atlascopco.com SNA EUROPE (BAHCO TOOLS) GETINGE – Medika-Projekt d.o.o Zagorska 10/35, 11080 Zemun Kumodraska 241/a T/F: +381-11-2106 365 11000 Belgrade Attn: Mr Dusan Kukavica, Tel: +381-11-30 99 699 Director Fax: +381-11-39 73 911 Web: www.bahco.com Mr Predrag Nikcevic, General BENTONE – POPOVIC & CO Manager Niska 8,11000 Beograd www.medika-projekt.rs Tel: +381-11-344 11 78 GRINDEX – Temag Fax: +381-11-2438 726 Dr. Ivana Ribara 87/8 Attn: Mila Jankovic, Director 11070 Novi Beograd www.popovicandco.rs Tel: +381-11-262 25 25 BINEMIKOM - ABS PUMPS Tose Jovanica 11, 11030 Beograd Tel: +381-11-601 444 Attn: Mr Milan Jokanovic, Tel: +381-11-30 58 138 Director www.binemikom.rs GAMBRO–MEDICON BROVEX MEKANISKA VERKVojvodjanska 97, 22441 Dec STAD AB Branch office Belgrade Vojina Paleksica 48, 21241 Kac Vuka Karadzica 8/II Tel: +381-21-6211 404

Company register TERASA LUX 11000 Belgrade Karadordjeva, 69 /fax. 011/3038206 info@terasalux.rs TIKKURILA Paints, www.tikkurila VAISALA OYJ www.vaisala.com Meteorological equipment VALTRA www.valtra.com VEXVE Oy Valves, www.vexve.com NORWAY VIK-SANDVIK -ALBATROSS d.o.o.

Branko Žmukić, Director Vršačka 67, 21000 Novi Sad, +381 21 423875, +381 21 500101, albatross@vik-sandvik.com ELOPAK d.o.o. Đorđe Stojilković, Director Batajnički drum 23, 11080 Zemun, +381 11 3160 142 +381 11 2193933, info@elopak.rs, www.elopak.rs NERA NETWORKS AS Nenad Stojanović, Director Dobropoljska 26-28, 11000 Belgrade +381 11 3699530, +381 11 3657191 office.serbia@networks.nera.no, www.nera.no RAPP ZASTAVA a.d.

Slobodan Milovanović, Director Trg topolivaca 4, 34000 Kragujevac +381 34 331 986, +381 34 337077 rappzastava@sbb.co.yu, www.rappzastava.com TELENOR d.o.o.

Stein-Erik Vellan Omladinskih brigada 90, 11070 New Belgrade, +381 63 9863, www.telenor.rs SWEDEN A B B d.o.o - ASEA BROWN BOVERI Kumodraska 235, 11000 Beograd Tel: +381-11-3094 300 Fax: +381-11-3094 343 Attn: Mr Aleksandar Cosic, Gen. Manager AJ OFFICE & INDUSTRY SUPPLIES AB – AS IMPEKS Mirka Obradovica 3 14000 Valjevo Tel: +381 14 248 438 Fax: +381-14-248 438 Attn: Mr Sasa Brankovic

11000 Belgrade Tel: +381-11-328 59 45 Fax: +381-11-26 23 084 Attn: Mr Petar Belokapic, General Manager www.medicon.rs VALHALL d.o.o/HUSQVARNA Volarsko Polje bb 22300 Stara pazova Tel: +381-22-36 63 00 Fax: +381-22-36 63 01 Attn: Mr Predrag Knezevic, General manager www.yu.husqvarna.com HÖGANÄS – Croll Invest Petra Martinovica 37 11000 Beograd Tel/Fax: +381-11-3058435 Attn: Ms. Katarina Ljubinkovic IKEA d.o.o Omladinskih Brigada 31 11070 Beograd Tel: +381-11-209 88 00 IKEA Trading & Services d.o.o Omladinskih Brigada 31 11070 Beograd Tel: +381-11-209 88 00 ITT FLYGT AB – MERIS d.o.o Narodnih heroja 42, 11070 Beograd Republika Srbija Tel: + 381 11 314-88-00 Fax: + 381 11 314-88-11 Web: www.meris.rs Attn: Mr Zoran Dzelatovic, Director AQUA CONSTANTA – D & D COMPANY Bul. Mihaila Pupina 183 11070 Beograd Tel: +381-11-319 22 11 Fax: +381-11-8036 311 Attn: Mr. Vlajko Vukomanovic KANTHAL AB/ Granlund AB - ALSIMA d.o.o.

Kruzni put 40 11309 Lestane, Belgrade Tel/Fax: +381-11-8036 311 Attn: Mr Zeljko Preradovic, Manager Web: www.alsima.rs LINDAB Yu Biznis centar, 99-100 Bul. Mihaila Pupona 10 d 11070 Novi Beograd Tel: +381-11-311 04 86 Fax: +381-11-311 04 85 Attn: Mr Dejan Arsenijevic Web: www.lindab.co.rs Mogul Balkan d.o.o.

Koste Glavinica 23a 11040 Belgrade Tel: +381 11 2650 763 Web: www.mogul.com ORIFLAME COSMETICS Oriflame kozmetika d.o.o.

Karađorđeva 89 11000 Beograd Tel: 011/3618-400 Fax: 011/3618-401 Attn: Ms Karolina Georgieva, Gen Manager www.oriflame.co.rs PERTEN INSTRUMENTS – SUPERLABORATORY Milutina Milankovića 25 11070 Novi Beograd Tel: +381 11 22 22 222 Fax: +381 11 22 22 222 Attn: Mr Vladan Kocic www.super-lab.com RADIUS South East Europe d.o.o Hilandarska 20, 18000 Nis Tel: +381-18-247 536

2010 - Nordic - Serbian Business Synergy / 45

Attn: Mr Vladeta Milenkovic, Executive Director Web: www.radius.net SANDVIK SRBIJA DOO Omladinskih brigada 102 11070 Beograd Tel: +381-11-222 77 04 Fax: 222 77 26 Attn: Mr Dragan Kovacevic, Managing Director SANDIK MINING AND CONSTRUCTION Omladinskih brigada 102 11070 Beograd Tel: +381-11-222 77 04 Fax: 222 77 26 Attn: Mr. Miomir Milivojevic, Manager SCA Hygiene Paper AB and SCA Mölnlycke AB – EURO MEDICO TRADE Koste Vojinovica 2 11040 Beograd Tel: +381-11-3671 511 Fax: +381-11-3671 911 Attn: Mrs Kosovka Vujic Ohlsen, Manager www.euro-medico.com SCANIA Srbija doO Batajnicki put 1 11080 Zemun, Serbia Tel/F: +381-11-316 20 86 Tomislav Popsavin, Country manager www.scania.rs SCANIA CREDIT Batajnicki put 1 11080 Beograd/Zemun T/F: +381-11-316 91 02 Attn: Ms Ljiljana Brankovic, Manager www.scania.rs Seavus DOO Bogdana Popovica 2 18000 Nis, Serbia Tel: +381-18-4577319 Fax: +381-18-4201410 Attn: Mr Dejan Stojanovic, Managing Director Serbia www.seavus.com SECURITAS SE Zmaj Jovina 15, 11 000 Belgrade Tel: +381-11-3099 570 Fax: +381-11-3099 570 www.securitas.com/rs S K F – COMMERCE Bulevar Mihajla Pupina br. 10 Z/1, objekat 10 11070 Novi Beograd Tel: Tel: +381-11-311 57 89 Fax: +381-11-2144 914 Attn: Mr Predrag Jovanovic, Managing Director Serbia, Montenegro, Macedonia and KA Manager SKF SEE www.skf.com SKF EUROTRADE AB c/o SKF- COMMERCE Bulevar Mihajla Pupina br. 10 Z/1 11070 Novi Beograd Tel: +381-11-311 57 89 Fax: +381-11-2144 914 Attn: Mr Milos Bjelica SSAB Swedish Steel d.o.o.

Bulevar kralja Aleksandra 518 V/74 11000 Belgrade Tel: +381-11-3049 045 Fax: +381-11-3049 046 Attn: Mr Nebojsa Bogojevic, Regional Sales Manager SVEBA-DAHLEN – NORDIK KORPORACIJA Fruskogorska 67 21207 Novi Ledinci Tel/Fax: +381-21-6334 322 Attn: Mr Aleksandar Puskar,

President SWEDISH MATCH – Beodag d.o.o.

Gospodara Vucica 115 11000 Beograd Tel: +381-11-3440 164 Fax: +381-11-344 2143 Attn: Mr Jablan Bozidar, Director www.swedishmatch.com TetraPak Production d.o.o.

Milutina Milankovica 11B 11070 Novi Beograd Tel: +381 11 2017 361 Fax: +381-11-30 41 380 Attn: Mr Ivan Nesterenko, Chairman of the board of directors www.tetrapak.com THULE – TANDEX Preradoviceva 9, 24 000 Tel: 24-602 140 Fax: 554 920 Attn: Leposava Gemes www.tandex-scg.com TRELLEBORG Building Systems / Neshvyl LTD Zarkovacka 40, 11030 Belgrade Tel/Fax: +381 11 3559-786 Attn: Mr Nebojsa Miletic, Managing Director Troxo Dusanova 55, Dusanov bazar, lok. 106,18000 Nis Tel: +381 18 29 29 40 Attn: Nenad Severovic http://www.troxo.com/ VEKOM CO/Marko Lift Jove Ilica 31,11040 Belgrade Tel/Fax: +381-11-3098 165 Attn: Mr Sasa Budanovic, Managing Director Web: www.vekomco.rs VOLVO d.o.o Svetosavska 213 22304 N. Banovci, Serbia Tel: + 381-22-366600 Fax: + 381-22-366699 Attn: Mr Marcus Hörberg, Managing Director VOLVO BUS CORPORATION Svetosavska 213 22304 Novi Banovci, Serbia Tel: + 381-22-366600 Fax: + 381-22-366699 Attn: Mr Nenad Luzanin, Country manager Balkan Region VOLVO FINANCIAL SERVICES INTERNATIONAL Svetosavska 213 22304 Novi Banovci, Serbia Tel: + 381-22-366600 Fax: + 381-22-366699 Attn: Mr Sasa Strizak, Country Manager Volex Truck d.o.o (SLP) Kraljice Marije 67 11000 Beograd Tel: +381-11-30 86 384 Attn: Mr. Mladen Angelus www.volextruck.co.yu VOLVO CONSTRUCTION EQUIPMENT - VOLMONT d.o.o.

Ustanicka 128 a, 11050 Beograd Tel: +381-11-30 46 960 Fax: +381-11-34 74 340 Attn: Mr Dragan Medenica, General Manager WINSTART d.o.o.

Nikolajevska 2, 21000 Novi Sad Tel: +381-21-674 00 24 Fax: +381-21-674 00 26 Attn:Mr. Pera Tut, Director www.winstart.rs

denmark

Rich Cultural Heritage

Denmark is an egalitarian society. Interestingly, this is reflected in their language, which employs genderneutral words. Most Danes are modest about their own accomplishments and are more concerned about the group than their own individual needs. Men are more actively involved in child-rearing activities than in many countries, although the division of domestic chores is similar to other developed countries. Women are highly respected in business and generally receive equal pay and have access to senior positions

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anes believe there strong tradition of movie making and Carl Theodor Dreyer is recis one proper way ognised as having been one of the world’s greatest film directors. in which to act in any given circumstance. If Tourism someone is not following Tourists in Denmark consist mainly of people from neighbourthe rules, be they written or ing countries, especially Germany, followed by Sweden, Norway, merely understood, someand the Netherlands. With 4.7 million visitor arrivals in 2007, one will generally speak up Denmark ranked 43rd in the UNWTO’s World Tourism rankings. and admonish them to obey Statistics show, however, that the total annual number of overnight the accepted protocol. stays in Denmark is currently declining.

Most families are small.

Denmark has many sandy beaches which attract many young The nuclear family is the Scandinavians who also enjoy Denmark’s cheap and readily accescentre of the social strucsible beer, wine and spirits. ture. Children are raised The cities of Aalborg in the north, and Aarhus in the east, atto be independent from tract a considerable number of visitors, whether for business or hans christian andersen an early age. Marriage is pleasure. Aalborg’s 14th century Budolfi Church, 17th century not a prerequisite to starting a family. Many couples live together Aalborghus Castle and the Jomfru Ane Gade (a lively old street without legalising the arrangement with close to the city centre) are major atmarriage. tractions. In Aarhus, Den Gamle By (the If someone is not following the rules, Business protocol requires confirmed Old Town) is in fact a museum village in be they written or merely appointments in writing prior to the meetwhich old houses from various parts of understood, someone will generally ing. The agenda should be sent before Denmark have been brought together. speak up and admonish them to obey meeting and work from it without devithe accepted protocol ation. There will be a minimal amount of Cuisine small talk. Danes prefer to get down to The most typically Danish meal of the business quickly and communication is direct. day is the traditional lunch or smørrebrød consisting of open sandwiches, usually on thinly sliced rye bread. Traditionally, the meal beCulture gins with fish such as marinated herring, smoked eel, crab, or breadDenmark has a rich cultural and intellectual heritage. The ased plaice filets with remoulade and moves on with slices of roast pork tronomical discoveries of Tycho Brahe (1546-1601), Ludwig A. or beef, frikadeller (meat balls), hams and liver paté. The sandwiches Colding’s (1815-1888) neglected articulation of the principle of are richly garnished with onion rings, radish slices, cucumbers, tomaconservation of energy, and the brilliant contributions to atomic to slices, parsley, remoulade and mayonnaise. The meal is physics of Niels Bohr (1885-1962) indicate the range of Danish often accompanied by beer, sometimes also by shots scientific achievement. of ice-cold snaps or akvavit.

The principal contributors to Danish literature are undoubtIn the evening, hot meals are smørrebrød edly Hans Christian Andersen (1805-1875) with his fairy tales, usually served. Traditional dishthe philosopher Søren Kierkegaard (1813-1855), storyteller es include fried fish, roast pork Karen Blixen (1885-1962), playwright Ludvig Holberg (1684with red cabbage (the national 1754), and modern authors such as Henrik Pontoppidan and dish), pot-roasted chicken, or Herman Bang. pork chops. Game is someFrom the mid 1990s Danish movies have attracted international times served in the autumn. attention, especially those associated with Dogme 95 such as the Steaks are now becoming infilmmaker Lars Von Trier. Indeed, the country has always had a creasingly popular.

■ 46 / Nordic - Serbian Business Synergy - 2010

finland

Home of Santa Claus Finland along with Iceland is Nordic rather than Scandinavian. This is reflected in their language which is not Germanic in origin

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inland is an egalitarian society, which is reflected in their language, which employs gender-neutral words. Finns are very modest and downplay their own accomplishments. They believe there is a proper way to act in any circumstance and always expect courteous behaviour. Serial conversation is the rule - i.e. listen to the speaker, wait for them to finish and then reply.

Interrupting is rude.

The sauna has a special role in the domestic life of Finns. It is an experience shared with family and friends. Important business meetings may be followed by a sauna in which the conversation is continued on a more informal basis.

Finnish meeting etiquette requires formal greetings, with a firm handshake, direct eye contact, and a smile. It is common practice to repeat your first and surname while shaking hands.

Finns are transactional and do not need long-standing personal relationships in order to conduct business. There is relatively little small talk and Finns prefer people to speak succinctly and to focus purely on business. They do not require face-to-face contact and, in fact, are quite comfortable using e-mail.

and industrial design. Finland’s best-known sculptor of the twentieth century was Wäinö Aaltonen, remembered for his monumental busts and sculptures

Tourism In 2005, Finnish tourism grossed over €6.7 billion with a five percent increase from the previous year. Much of the sudden growth can be attributed to the globalisation and modernisation of the country as well as a rise in positive publicity and awareness. The Finnish landscape is covered with thick pine forests, rolling hills and complemented with a labyrinth of lakes and inlets. Finland contains 35 national parks from Finns do not require face-to-face the Southern shores of the Gulf of Finland to Culture the high fells of Lapland. Commercial cruiscontact and, in fact, are quite The Culture of Finland combines indigenous es between major coastal and port cities in the comfortable using e- mail heritage with common Nordic and European Baltic region play a significant role in the loculture. Because of its history and geographic cal tourism industry. location Finland has been influenced by the adjacent areas’ various Finland is regarded as the home of Saint Nicholas or Santa Finnic, Baltic and Germanic peoples as well as the former domiClaus, from the northern Lapland region. Above the Arctic Circle, nant powers of Sweden and Russia. there is a polar night, a period when the sun does not rise for days The 19th century saw the beginning of a Finnish nationor weeks, or even months. Lapland is so far north that the Aurora al Romantic Movement. This prompted Elias Lönnrot to collect Borealis, atmospheric fluorescence, is seen regularly in winter.

Finnish and Karelian folk poetry and arrange and publish them as Kalevala, the Finnish national epic. After Finland became inCuisine dependent, there was a rise of modernist writers, most famously Traditional Finnish cuisine is a combination of European, Mika Waltari. Frans Eemil Sillanpää was awarded the Nobel Prize Fennoscandian and Western Russian elements. The food is generalin Literature in 1939. ly simple, fresh and healthy. Fish, meat, berries and ground vegetaMuch of the music of Finland is influenced by traditional bles are typical ingredients.

Karelian melodies and lyrics, as comprised Karelian pasties or Karelian pies (karjalanpiirakat) are tradiin the Kalevala. Karelian culture is tional pasties from the region of Karelia. Today they are eatperceived as the purest expression en throughout Finland. Nowadays in the of the Finnic myths and beliefs, most familiar and common recipe the less influenced by Germanic influpasties are made from a thin rye ence, in contrast to Finland’s position crust with a filling of rice. between the East and the West. Finnish folk Butter, often mixed with music has undergone a roots revival in recent decades, boiled egg is spread and has become a part of popular music over the hot pasties beFinns have made major contributions to handicrafts fore eating.

■ karjalanpiirakat

2010 - Nordic - Serbian Business Synergy / 47

ICELAND

Landscape of Natural Wonders blue lagoon

Very few Icelanders have original surnames as their surnames are based on the father's Christian name plus 'son' or 'daughter' (e.g.

Matthew, the son of Magnus, would be called Matthew Magnusson whilst Jane would be known as Jane Magnusdóttir)

falls below that in New York.

For the tourist, Iceland is fast becoming a desired attraction with people flocking from all over the world to see its natural wonders; hot springs, active volcanoes, glaciers, lava deserts and of course, Iceland is ndividuals in Iceland take great care over their appearance and it home of the hot water geyser. The greatest Geyser in Iceland offers is certainly expected that others should dress smartly for any fortourists a spectacular show when it blasts regular jets of water into mal occasion. It is normal for individuals in Iceland to be direct the air for up to 80 meters. in their speech. This should be expected therefore and not taken For those tourists to Iceland seeking adventure, there are no disoffensively. English is widely spoken in business forums. Setting appointments. Iceland offers the unique experience of snowmobilfalse expectations or making promises that cannot be kept should ing across beautiful glaciers or testing their skills and bravery white be avoided. water rafting in the amazing, fast moving, fresh glacial waters so typical of Iceland.

Culture It is a little known fact that, due to the With four national parks, Iceland has Icelandic, a North Germanic language, is the official language of Iceland. warm waters of the Gulf Stream, Iceland a very carefully protected wonderland to Icelandic has inflectional grammar com- is not a country covered in ice as its name tempt the tourist with sights rarely seen parable to Latin, Ancient Greek, more might suggest, in fact, even in January, elsewhere. Iceland’s greatest attraction, the Blue Lagoon, lies between Reykjavik closely to Old English and practically the temperature in Reykjavik, rarely and the Airport, its stunning milky blue identical to Old Norse. falls below that in New York waters making a dramatic sight against the Old Icelandic literature can be dividblack lava peaks that skirt its perimeter ed into several categories, of which three are best known to foreigners; Eddic poetry, skaldic poetry, and saCuisine ga literature. Eddic poetry consists of heroic and mythological poMost of Iceland’s cuisine is based on fish, lamb, and dairy ems. Poetry that praises someone is considered skaldic poetry or products. Þorramatur is a selection of traditional cuisine consistcourt poetry. Finally Saga literature is prose that covers pure fiction ing of many dishes, and is usually consumed around the month of to fairly factual history. Þorri, which begins on the first Friday, after 19 Written Icelandic has changed little since the 13th century. liver sausage January. Traditional dishes also include Because of this, modern speakers can understand the Icelanders’ skyr, cured ram scrota, cured shark, sagas. The sagas tell of events taking place in Iceland in singed sheep heads, and black the 10th and early 11th centuries. They are considered pudding. One of the most trato be the best known pieces of Icelandic literature. ditional dishes consists of shark’s head which is left Tourism buried underground to ferIt is a little known fact that, due to the warm ment for several months, waters of the Gulf Stream, Iceland is not a counthen consumed with extreme try covered in ice as its name might suggest, in fact, caution.

■ even in January, the temperature in Reykjavik, rarely

I

48 / Nordic - Serbian Business Synergy - 2010

NORWAY

A Celebration of Equality Over 99% of the 4.3 million population of Norway speak the official language, Norwegian. Norwegian has two written forms, "Bokmal" (book Norwegian) and "Nynorsk" (new Norwegian) and they enjoy the same legal recognition, although "Bokmal" is increasingly more common

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any families Norway’s classical music performers include Leif Ove Andsnes, consist mainone of the world’s more famous pianists, and Truls Mørk, an outly of the nustanding cellist. A strong folk music tradition also still remains clear family, and marpopular to this day. Among the most prominent folk musicians are riage is not a prerequiHardanger fiddlers Andrea Een, Olav Jørgen Hegge, Vidar Lande site to starting a family. and Annbjørg Lien, violinist Susanne Lundeng, and vocalists henrik ibsen As many couples live Agnes Buen Garnås, Kirsten Bråten Berg and Odd Nordstoga. together without legalPlaywright Henrik Ibsen is probably the most famous figure ising the arrangement with marriage, it is best not to make prein Norwegian literature. Ibsen wrote plays such as Peer Gynt, A sumptions about people’s marital status.

Doll’s House and The Lady from the Sea. Women are highly respected in business and generally receive Several Norwegian authors have been awarded the Nobel Prize equal pay and have access to senior positions. Businesswomen are in Literature, namely Bjørnstjerne Bjørnson in 1903, Knut Hamsun direct and can be skilled negotiators. in 1920 and Sigrid Undset in 1928 for Kristin Lavransdatter.

“Jante Law” conveys an important element of Norwegian culIt was in the 19th century that a truly Norwegian painting era ture - humility. It teaches people to be modest and not ‘think began, first with portraits, later with even more impressive landbig’. It is demonstrated in most people’s refusal to criticise othscapes. Johan Christian Dahl (1788-1857), originally from the ers. Norwegians try to see all people Dresden school, defining Norwegian paintas being on equal footing. The tenets ing for the first time.

Several Norwegian authors have of Jante Law are: You shall not think been awarded the Nobel Prize in Literature, The development of a Norwegian paintyou are special; You shall not believe ing identity, especially with landscape namely Bjørnstjerne Bjørnson in 1903, you are smarter than others; You shall painting was marked by artists such as Kitty Knut Hamsun in 1920 and Sigrid Undset in Kielland, 1843-1914, an early female paintnot believe you are wiser than oth1928 for Kristin Lavransdatter. ers; You shall not behave as if you are er who studied under Gude; Harriet Backer, better than others; You shall not be1845-1932, another pioneer among female lieve that you know more than others; You shall not believe that artists, influenced by impressionism. Frits Thaulow, 1847-1906, you can fix things better than others; You shall not laugh at others; an impressionist, was influenced by the art scene in Paris as was You shall not believe that others care about you; You shall not beChristian Krohg, 1852-1925, a realist painter, famous for his paintlieve that you can teach others anything. ings of prostitutes.

If you were to think about the most important cultural atOf particular note is Edvard Munch, (1863-1944), a symbolist/ tributes, operating in business in Norway, they would be inforexpressionist painter who became world famous for The Scream mal style, individual interests, transactional relationships and diwhich is said to represent the anxiety of modern man. rect communication Business etiquette requires appointments to be made as far in Cuisine advance as possible. If you are delayed even five minutes, it is Norway’s culinary traditions show the influence of long seafarpolite to telephone and explain the situation. Meetings are rathing and farming traditions with salmon (fresh and cured), herring er informal. It is advisable to send an agenda before the meeting (pickled or marinated), trout, codfish and other seafood balanced so that your Norwegian colleagues can be prepared. There is not by cheeses, dairy prodlefse much small talk. Norwegians prefer to get to the business discusucts and excellent breads sion quickly. (predominantly dark/ Culture darker). Lefse is a Norway enjoys a strongly adapted western culture. Over the common Norwegian past 30 years, Norway has evolved from an ethnically homogepotato flatbread, neous society to a culturally diverse nation with large immigrant common around communities.

Christmas-time.

■ 2010 - Nordic - Serbian Business Synergy / 49

sweden

Family is Foremost One of the key characteristics of Swedish culture is that Swedes are egalitarian in nature, humble, and find boasting absolutely unacceptable.

In many ways, Swedes prefer to listen to others as opposed to ensuring that their own voice is heard

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ehaviours and Nobel Prize winners Selma Lagerlöf and Harry Martinson. in Sweden In total seven Nobel Prizes in Literature have been awarded to are strongly Swedes. The nation’s most well-known artists are painters such balanced towards as Carl Larsson and Anders Zorn, and the sculptors Tobias Sergel ‘lagom’ or, ‘eveand Carl Milles. rything in moderThe Swedish writer to have made the most lasting impression ation’. As an exon world literature is the children’s book writer Astrid Lindgren, ample, work hard and her books about Pippi Longstocking, Emil, and others. In and play hard are 2008, the second best-selling fiction author in the world was Stieg not common conLarsson, whose Millennium series of crime novels is being pubcepts in Sweden. lished posthumously to critical acclaim.

People work hard Swedes have been fairly prominent in the film area through but not too hard, the years. Several successful Swedish Hollywood actors can be they go out and enmentioned: Ingrid Bergman, Greta Garbo, Max von Sydow, Dolph Selma Lagerlöf joy themselves, but Lundgren, Lena Olin, Britt Ekland, Anita Ekberg, Bibi Andersson, without participating in anything extreme. Due to the strong leanIngrid Thulin and others Several directors who have made intering towards egalitarianism in Sweden, nationally successful films are: Ingmar competition is not encouraged and chilBergman, Lukas Moodysson, and Lasse The family in Sweden is extremely dren are not raised to believe that they are Hallström important and as such, the rights of any more special than any other child.

Sweden is the third largest music exchildren are well protected The family in Sweden is extremely porter in the world with over 800 million important, and as such, the rights of childollars revenue in 2007, surpassed only dren are well protected. The rights afforded to Swedish families by the US and the UK. ABBA was one of the first internationalto ensure that they are able to adequately care for their children ly well-known popular music bands from Sweden, and still ranks are some of the best rights in the world. Either the mother or faamong the most prominent bands in the world, with about 370 milther is entitled to be absent from work until their child reaches 18 lion records sold. months of age.

Cuisine Business manners require at least two weeks’ notice if you are Swedish cuisine, like that of the other Scandinavian counarranging a meeting in Sweden. tries (Denmark, Norway and Finland), is traditionally simple.

Swedes rarely engage in small talk at the start of a meetFish (particularly herring), meat and potatoes plays a prominent ing. Instead, people will move directly to the topics at hand. role. Spices are sparsely used. Famous dishes Meetings are typically governed by an agenda which is include Swedish meatballs, traditionaldistributed to individuals prior to the meeting. There ly served with gravy, boiled potatoes is very little talk outside of the agenda topics. and lingonberry jam; pancakes, Swedes rarely make decisions during initial lutfisk, and Smörgåsbord, or a meetings and as such, the first meeting that you lavish buffet. Akvavit is a popuhave with your hosts is likely to be fairly genlar alcoholic distilled beverage, eral and low key. and the drinking of snaps is of cultural importance. The traditional flat and dry crispbread has Culture developed into several contempoSweden has many authors of worldwide recograry variants.

■ nition including August Strindberg, Astrid Lindgren, swedish meatballs 50 / Nordic - Serbian Business Synergy - 2010

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