JUST OUTSIDE OF seaport Ningbo on the Chinese east coast, south of Shanghai, is the industry and business park Nordic Industrial Park, NIP. To rent in a business park as opposed to buying your own property to set up a business, is still the most common way when setting up business in China.
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The Chinese city Ningbo has a long tradition of trade and logistics with China’s second largest harbour.
- Only large corporations have resources to buy land and build on their own. Buying land in China can be a very complicated process and bureaucracy is tricky. Authorities practice the laws very differently depending on where you are, particularly outside the big cities. A business park will offer an overall solution in planning, setting up business and service. It is a very convenient and cost efficient alternative. We run a wholly owned Scandinavian business park with Scandinavian management. This is an advantage compared to the Chinese parks, informs Andreas Erensjö, responsible for the Swedish market at NIP.
NORDIC INDUSTRIAL PARK set up its business in June 2003. It is owned
by the Norwegian investment company Styrbjørn AS. Today, there are 45 Scandinavian companies represented in the 50 000 square meter (finished facilities) park. By the summer 2009, an additional expansion of 50 000 square meters will be finished. There is an enormous interest among Scandinavian companies and 70 percent of the facilities are already rented. As a result, the park will double by 2010 to almost 200 000 square meters. Andreas Erensjö has noticed a larger interest among Danish and Norwegian companies compared to Swedish ones.
- We have certainly been active in Denmark longer than in Sweden, but we had larger success with Danish companies compared to Swedish companies in the same time period.
ANDREAS ERENSJÖ relates a story that describes the Swedish undecisiveness and cautiousness compared to Danish fast action. Last fall, Andreas Erensjö met a group of product managers at a major Swedish company. They consider China an important market for their business. After the meeting they sent information about NIP. The result was that two Danish subcontractors initiated discussions about setting up production in China with Andreas Erensjö’s colleague in Denmark. There was no interest from Swedish companies.
NIP offers finished facilities and takes care of all bureaucracy thanks to their network with local authorities.
INGEMAR DAHLQVIST IS an export consultant with long experience in different business cultures. He recognises the picture very well and says that Swedes are known for being slow decision makers.
- There is an old tradition in Sweden of consensus decision making. This means that everybody has a right to speak up and agree before making a decision.
In general, Danish and Norwegians are much faster in making decisions. But why is this?
- Denmark has no large natural assets but is living on refining products and services. By tradition, the Danes are merchants and they have learnt to be tough and strategic business men. The Norwegians are not known for being tough tradesmen but are fast in making decisions. I call them “the Nordic Italians” since they often use more heart than brains when making decisions.
TO SURVIVE IN THE tough global competition, Ingemar Dahlqvist argues that Swedes have to be faster and more efficient decision makers.
- Companies need to pay attention to this by establishing new routines and shorter ways of decision. It is not that complicated but first and foremost a question of knowledge. Companies need to pay attention to and acknowledge the problem.
Emelie Ring
Photo: www.nip.com.cn