Swedish firms told to minimise risks (hktdc.com)


Anders Lundwall, Senior Vice President, Stockholm Chamber of Commerce says Hong Kong is a risk manager for Swedish companies with its rule of law, freedom of speech and secure legal, financial and logistics infrastructure

Swedish companies especially small and medium sized enterprises (SMEs) wanting to explore opportunities in the Chinese mainland should use Hong Kong as a partner to minimise their risks, said the head of a business association from Sweden.

Anders Lundwall, Senior Vice President, Chamber of Commerce for Stockholm and Uppsala Counties which comprises of 2,500 companies from both places, explained the reasons why.

"Many Swedish SMEs are interested to explore opportunities in China and the Asia Pacific region but they are risk aversive. Hong Kong has an important role to play as a risk manager for Swedish firms wanting a foothold in this part of the world as it has knowledge about how China operates," said Mr Lundwall.

"The city is a financial hub which is great for investment tie-ups, has rule of law, freedom of speech, skilled people and it's located very close to China. For all these reasons, I would tell Swedish firms to have a Hong Kong partner and if they want an Asian centre, have it in Hong Kong."

Synergies and cooperation

Mr Lundwall sees great synergies between Sweden, China and Hong Kong in the energy and "green" sectors.

"These are areas we can work together. Because the Swedes had to face energy and environment problems in our own country, we are forced to find solutions and our businesses had to be more environmentally friendly. We can offer our products and services in these areas to China and Hong Kong."

Other areas of cooperation are in telecommunications, IT, biotechnology, pharmaceuticals and automotives since currently, over 60 percent of these products go to EU and 10 per cent in the US and there is great potential in the Asian markets.

Mr Lundwall believes that culture plays another important role. He cites the Swedish ship Gotheborg which is an exact replica of the Swedish sailing vessel that came to China in the eighteenth century.

"This summer Gotheborg will be in Guangzhou and Hong Kong. Today's voyage is a symbol of the good relations and cooperation between Sweden and the countries visited by the ship."

Mr Lundwall says 10 years ago most Swedish firms were sourcing goods in China to take back to Sweden. "Obviously, it's more complex now. The Hong Kong China market with its increasing wealth is a new emerging market for SMEs and poses a great challenge. So much is happening in China so the questions to ask would be where would I go in China? Is it Beijing, Shanghai or the Pearl River Delta? There are opportunities for Swedish companies to tie up with Hong Kong firms to learn more about China."

The Stockholm Chamber of Commerce is working with the Trade Development Council on a seminar held in Stockholm on 17 March with practical tips provided by several Swedish companies based in Hong Kong

Details in Hong Kong and Guangzhou: Your Partners for Success in China