market research methods pdf

A Concise Guide to Market Research

The Process, Data, and Methods Using IBM SPSS Statistics

• © 2019
• Latest edition
• Marko Sarstedt   ORCID: https://orcid.org/0000-0002-5424-4268 0 ,
• Erik Mooi   ORCID: https://orcid.org/0000-0003-3613-1179 1

Faculty of Economics and Management, Otto-von-Guericke- University Magdeburg, Magdeburg, Germany

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Department of Management and Marketing, The University of Melbourne, Parkville, VIC, Australia

• Compact, hands-on, and step-by-step introduction to quantitative market research techniques
• Discusses the theory of important quantitative techniques and links directly to their use in SPSS
• Includes a wide range of educational elements, such as learning objectives, keywords, self-assessment tests, and case studies
• Links to additional material and videos via the Springer Multimedia App

Part of the book series: Springer Texts in Business and Economics (STBE)

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About this book

This book offers an easily accessible and comprehensive guide to the entire market research process, from asking market research questions to collecting and analyzing data by means of quantitative methods. It is intended for all readers who wish to know more about the market research process, data management, and the most commonly used methods in market research. The book helps readers perform analyses, interpret the results, and make sound statistical decisions using IBM SPSS Statistics. Hypothesis tests, ANOVA, regression analysis, principal component analysis, factor analysis, and cluster analysis, as well as essential descriptive statistics, are covered in detail. Highly engaging and hands-on, the book includes many practical examples, tips, and suggestions that help readers apply and interpret the data analysis methods discussed.

The new edition uses IBM SPSS version 25 and offers the following new features:

• A single case and dataset used throughout thebook to facilitate learning
• New material on survey design and all data analysis methods to reflect the latest advances concerning each topic
• Improved use of educational elements, such as learning objectives, keywords, self-assessment tests, case studies, and much more
• A glossary that includes definitions of all the keywords and other descriptions of selected topics
•  Links to additional material and videos via the Springer Multimedia App

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• Market Research
• Research Methods

Table of contents (10 chapters)

Front matter, introduction to market research.

• Marko Sarstedt, Erik Mooi

The Market Research Process

Getting data, descriptive statistics, hypothesis testing and anova, regression analysis, principal component and factor analysis, cluster analysis, communicating the results, back matter, authors and affiliations.

Marko Sarstedt

About the authors

Marko Sarstedt  is chaired professor of Marketing at the Otto-von-Guericke-University Magdeburg (Germany). His main research is in the application and advancement of structural equation modeling methods to further the understanding of consumer behavior and to improve marketing decision-making. His research has been published in journals such as Journal of Marketing Research, Journal of the Academy of Marketing Science, Organizational Research Methods, MIS Quarterly, and International Journal of Research in Marketing. Marko has co-edited several special issues of leading journals and co-authored several widely adopted textbooks, including “A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM)” (together with Joe F. Hair, G. Tomas M. Hult, and Christian M. Ringle).

Erik Mooi i s senior lecturer at the University of Melbourne (Australia). His main interest is in business-to-business marketing and works on topics such as outsourcing, inter-firmcontracting, innovation, technology licensing, and franchising using advanced econometrics. His research has been published in journals such as Journal of Marketing, the Journal of Marketing Research, the International Journal of Research in Marketing, and the Journal of Business Research. He is also program director at the Centre for Workplace Leadership, a fellow at the EU centre for shared complex challenges, as well as a fellow at the Centre for Business Analytics at Melbourne Business School.

Bibliographic Information

Book Title : A Concise Guide to Market Research

Book Subtitle : The Process, Data, and Methods Using IBM SPSS Statistics

Authors : Marko Sarstedt, Erik Mooi

Series Title : Springer Texts in Business and Economics

DOI : https://doi.org/10.1007/978-3-662-56707-4

Publisher : Springer Berlin, Heidelberg

eBook Packages : Business and Management , Business and Management (R0)

Copyright Information : Springer-Verlag GmbH Germany, part of Springer Nature 2019

Hardcover ISBN : 978-3-662-56706-7 Published: 28 September 2018

Softcover ISBN : 978-3-662-58592-4 Published: 11 January 2019

eBook ISBN : 978-3-662-56707-4 Published: 18 September 2018

Series ISSN : 2192-4333

Series E-ISSN : 2192-4341

Edition Number : 3

Number of Pages : XVII, 396

Number of Illustrations : 69 b/w illustrations, 109 illustrations in colour

Topics : Marketing , Management , Statistics for Business, Management, Economics, Finance, Insurance

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Market Research Methods: Examples, Tools, & Template [PDFs]

Topics covered ✅.

• Market research methods pdf
• Market research methods examples
• Market research examples
• Types of market research
• Primary market research methods
• Market research methods advantages and disadvantages
• Market research template

You need to have a secure understanding of market research methods if you are currently planning to build a brand or business.

In this article, you'll learn about types of market research, research methods, and what you need to know about customers.

1. Businesses

From start-ups working out of their garage to companies like Amazon, with over 300 million active users, businesses of every size need to invest time and resources into market research in order to be successful.

By being able to recognize consumers’ values and goals, companies can better advertise and tailor their products to customers.

Some companies devote whole teams to generating market research data.

Companies choose to do this because those who utilize effective market research methods have a competitive advantage over others in their industry.

Along with granting a competitive advantage, market research can also provide answers to problems unique to individual businesses.

For example, if a business has found a decrease in sales within the past quarter, market research will allow them to discover the root of the problem and correct it.

Claim My Free Market Research Template

This hub serves as a free template to help you get started and includes free tools, examples, and PDFs for market research.

In business, the market is defined as the sum of individuals and groups that make up potential buyers for a good or service. There are five main types of markets that a business may be involved in.

• The first type is business-to-consumer (B2C). In this type of market, goods and services are marketed to consumers. This makes it the largest market since there are millions of consumers worldwide.
• The business-to-business market (B2B) focuses on goods and services that are sold to other businesses. These markets often overlap with B2C markets.
• The service market can be B2B or B2C and deals with sales services.
• The industrial market sells products and services (such as raw materials or equipment) that are used in the production of other goods.
• The professional service market requires some form of certification to be a part of it (such as medical services and financial advisers).

Businesses use market research to identify their particular target market. Once this is established, additional research is conducted on customers within their market.

3. Customers

Each market has a different set of customers.

To better understand potential customers, market researchers conduct segmentation research and categorize customers in four different ways: geographically, demographically, psychographically, and behaviorally.

• Geographic segmentation pertains to customer location in space.
• Demographic segmentation pertains to the characteristics of a customer.
• Psychographic segmentation pertains to psychological attributes.
• Behavioral segmentation pertains to how people act.

One useful tip in market research is to create user personas .

By collecting demographic and psychographic data on customers, businesses find patterns to create representations of types of users.

Personas can be as broad or as specific as you like, but there are three general questions that can lead to a strong persona.

Who is this persona about?

What does this persona want?

What is preventing this persona from getting what they want?

For example, let’s say a smart board company is analyzing its customers.

They may find that 35% of their sales come from school principals.

By asking these and other branding research questions , the whiteboard company comes up with this persona.

School principals.

For their teachers to be able to (effectively) present and interact with information online while lecturing in front of the class.

Their schools are currently equipped with whiteboards that have not been integrated with technology.

Personas are useful because they allow companies to cater to a large group of people in a particular target market.

By leveraging audience research tools, companies can gather data to tweak their products or create unique advertisements to sell to a specific audience because personas provide them with an increased understanding of how a certain group will react.

4. Types of Market Research

There are many types of market research that a company can do.

With that being said, most types of market research fall into these four categories:

• Primary Market Research
• Secondary Market Research

Qualitative Market Research

Quantitative market research.

Primary and secondary market research both relate to where researchers gather information from.

Qualitative and quantitative research, on the other hand, relate to the type of data that is collected during research.

Qualitative market research is defined as the collection of data from both the primary and secondary markets that cannot be easily measured or expressed in a numerical form.

This type of data is collected through avenues such as interviews and case studies.

Qualitative market research helps in inferring and estimation, but without a lack of numerical data, it can be difficult to point towards conclusions from this type of data as facts.

Quantitative market research is defined as the collection of data from both the primary and secondary markets that are easily measured or expressed in a numerical way.

Polls and different types of surveys for research are efficient strategies to collect this type of data.

By using statistical analysis, researchers can use such data to (accurately) express patterns and predict trends.

While this data is great for producing reliable evidence, it can be restrictive.

Quantitative market research makes it difficult to provide context or let participants tailor their responses.

Researchers should strive to collect quantitative and qualitative data.

A combination of these types of data can provide an even greater picture of the market as a whole.

5. Primary Market

Primary market research is information that researchers collect themselves from primary sources.

Primary sources are any sort of raw, first-hand data that is collected straight from the subject in question.

By going directly to current or potential customers, companies can gather the information that their competitors do not have.

This can be through interviews, online surveys, product testing market research, or other methods of study. Within this type of research, there are two types of results.

• Exploratory results - general, open-ended research conducted to determine the nature of a problem that is not yet fully understood.
• Conclusive results - more precise, often quantitative research that is done to solve the problem that was scoped out through exploratory research.

6. Secondary Market

Secondary market research is information that researchers collect from secondary sources.

Secondary sources can come from public sources, commercial sources, and educational institutions.

Public sources include public libraries and government websites.

Commercial sources include newspapers and television recordings.

Professors and project teams working at educational institutions frequently publish their findings, which can be very beneficial to researchers as well.

By conducting this type of research, companies either hope to discover previously overlooked trends, or work to apply a new perspective toward historical data.

In the past, this type of research was carried out by going to libraries and reading through old files.

Now, however, researchers have coined the term “desktop research” when referring to secondary market research.

There are thousands of reliable websites to source data from, making this type of research very easy to be carried out without leaving one's computer.

7. Market Research Method

There are six basic steps to conducting market research:

Step 1. Define your problem

This step sets up researchers with a goal for their project.

By defining what you want to research, it's easier to come up with additional questions to ask.

Are you conducting branding market research ? Customers? Competitors? Testing products?

These are all important questions to ask yourself when thinking about your problem.

Step 2. Define your sample

Who is the target market being sampled?

By defining your sample, it's easier to gear questions towards subjects, as well as draw conclusions about the people participating in the research.

Step 3. Collect your data

This step in the research process will differ based on if you want to collect qualitative or quantitative data.

The most common types of data collection through observation are surveys, focus groups, interviews, and direct observation (explained in detail below).

Step 4. Analyze data and draw conclusions

This step determines what you take away from the data that was collected.

Step 5. Create a research report

A research report is how you display your findings to others who are going to use them. Research is useless if people cannot understand or interpret the data.

Step 6. Take future steps

After analyzing the research reports, the next step is to see what future work there is to be done.

Often the market research process will start over again, this time with a new problem and goal based on previous research.

8. Observation

Researchers observe participants in many ways.

Listed below are four ways that primary market research data can be collected.

• Surveys - Surveys are questionnaires sent out to a sample of potential customers. These questionnaires ask questions about consumer behavior in relation to your products or services. Online surveys are the easiest and most effective type of survey, compared to mail-in and over-the-phone methods. Surveys are an effective way to collect information quickly and inexpensively because they require very little time or money on your part; however, they can only answer questions that relate directly back to your products or services.
• Interviews - Interviews are one-on-one conversations that a researcher has with a customer or potential customer. Interviews can be beneficial, as they provide insight into a customer’s experience, as well as emotions that surveys may not be able to pick up on.
• Focus Groups - Focus groups are similar to interviews, except they're conducted in a group setting. They can also be beneficial, in the sense that more people are questioned face to face. Pitfalls of this type of method, however, include group conformity (where group members converge towards the same answers) and moderator bias.
• Direct Observation - Observation is when researchers record what they see the subject do. This can be done in the subject's natural environment or in a controlled setting. This is the most powerful type of research because researchers are able to see participants interact with their product organically (with no outside influences).

9. Marketing

The data collected from market research is what leads companies to develop unique marketing strategies.

User personas allow companies to market directly to a particular group of people.

Market research also provides companies with information on which market their product will perform the best in, which in turn influences marketing strategies.

10. Product

At the end of the day, the marketing methods used will ultimately depend on what your product is.

Local companies will have a very different research and marketing strategy than companies that operate globally.

Researchers must identify and carry out different research methods based on their product.

This can only be done successfully if they have a strong understanding of market research methodology.

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Market Research and Analysis: Methods, Design, and Data

• Edition: 1st
• Publisher: DeGruyter - Mercury
• ISBN: 9781501522888

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• Cord blood banking:...

Cord blood banking: Experts raise concern over claims made for stem cell applications

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• Jacklin Kwan , freelance journalist
• kwan.jacklin{at}gmail.com

Marketing by some private biobanks may be misleading expectant parents about the procedure’s value, writes Jacklin Kwan

Umbilical cord blood banking has gained prominence in the past decade as an option for expectant parents worried about their child’s future health. 1 Parents pay private biobank companies up to £3000 (excluding annual storage fees) to freeze their baby’s cord blood, which contains stem cells, in case the infant develops a condition that could be treated with stem cell therapy.

Umbilical cord blood banking: overinflated claims of stem cells’ application?

Cells4Life, which claims to be the UK’s largest private biobank for cord blood banking, says that its particular method delivers more stem cells from umbilical cord blood than its competitors’ processes. For this marketing message it relies on research published in the Journal of Stem Cells Research, Development & Therapy . Publication of this research took place just 17 days after receipt of the manuscript, a timescale far shorter than is typical for peer reviewed journals. Two editors listed on the journal’s editorial board say they did not in fact hold these roles, The BMJ discovered ( box 1 ).

Claim of superior technology by UK’s largest private biobank raises questions

Cells4Life says it is the UK’s largest provider of cord blood banking services. The firm markets its proprietary technology TotiCyte—a “precise, low concentration mixture of two solutions,” the cryoprotectants dimethyl sulfoxide (DMSO) and dextran—as the reason why, after collection, processing, and freezing, its samples have three times as many stem cells as competitors that use other processing methods (assuming that freezing and collection are kept the same across all methods).

Patricia Murray, professor of stem cells and regenerative medicine at the University of Liverpool, says that there is no clear scientific reason why TotiCyte should outperform market alternatives. “All they’ve got in TotiCyte is DMSO and dextran, which are well established cryoprotectants,” she said, “There may just be a slight difference in the percentages of DMSO and dextran, but you wouldn’t expect it to have such a dramatic effect on cell survival.”

Responding to this, Cells4Life’s chief executive, Claudia Rees, says that TotiCyte is used as a blood separation reagent to sediment red blood cells so they can be removed before freezing, not as a cryoprotectant.

Murray points to a written opinion by an international searching authority (ISA or patent office) in 2014 when Cells4Life applied for a patent under the World Intellectual Property Organisation. The ISA examined TotiCyte’s application to sediment red blood cells as well as its role as a cryoprotectant and concluded: “It follows that the addition of DMSO to the dextran composition does not add any technical effect in the use and method for white blood cell enrichment and appears merely to serve as a patent strategical means to establish novelty over the art.”

Rees told The BMJ that Cells4Life has been granted patents in the US and China for TotiCyte as proof of its novelty.

Published research claims

The evidence for Cell4Life’s TotiCyte claim is given in a “peer reviewed publication,” the Journal of Stem Cells Research, Development & Therapy , published by Herald Scholarly Open Access. The research article referenced by Cells4Life was received on 14 May 2021 and published only 17 days later. 2 When asked by The BMJ , the journal in question claims to maintain a double blind process of peer review.

However, a 2017 study of journal response times suggests that journals typically take 12-14 weeks to handle accepted medicine and public health papers. 3 This is the time in which the paper is under the responsibility of the journal—in other words, the time it takes for the journal to evaluate the manuscripts, find reviewers, have time for the reviewers to complete their work, and for editors to evaluate manuscripts on the basis of reviewers’ reports. It does not include the time taken for authors to revise and resubmit their work.

The BMJ contacted two editors who were listed on the journal’s editorial board. One said that they had “never held an active role in the journal nor received any articles or communications from them for review or any other purpose.” The other said that they “never accepted the position of editor to this journal.”

After being contacted by The BMJ , both researchers have asked the Journal of Stem Cells Research, Development & Therapy to remove their names. The BMJ was unable to make contact with the journal about this matter.

Rees says, “The Journal of Stem Cells Research, Development & Therapy has its own independent editorial board, provides an NLM [National Library of Medicine] identifier [and] an impact factor, and operates under the COPE guidelines.” COPE is the Committee of Publication Ethics, a non-profit organisation that promotes and defines best practices in scholarly publishing.

Experts in regenerative medicine have criticised Cell4Life’s marketing directed at expectant parents, which they say contains misleading statements. Charles Murry, director of the Institute for Stem Cell and Regenerative Medicine at the University of Washington, Seattle, says claims that stem cells can develop into almost any type of cell in the body have been “very rigorously disproven.”

“Routinely used” and promising—or “rigorously disproven”?

Depending on the specific company and on whether parents choose also to bank cord tissue, private umbilical cord blood banking services range from £550 to around £3000, excluding annual storage fees of over £100 to keep samples frozen. Those financial costs are often marketed as an investment, given that there have been promising reports of successful use of stem cell based therapies to treat a wide range of potentially life threatening diseases, from cerebral palsy to leukaemia. 4 5

The Cells4Life website claims that “umbilical cord blood is routinely used in treatments for over 80 different conditions and diseases,” including cancers, blood disorders, immune disorders, and autism. It says, “Umbilical cord blood stem cells are pure and plastic, meaning that they can become almost any cell in the human body,” and, “They can become almost any tissue type in the body and may even be used to regrow entire organs.”

But Murry says this list of applications is unrealistic. “There were people making these claims in the late 1990s—that these cells have the plasticity to become other things—but that’s been very rigorously disproven.” 6 7 8 He tells The BMJ that the haematopoietic stem cells (HSCs) and mesenchymal stem or stromal cells (MSCs) harvested from cord blood ( box 2 ) are a form of adult stem cell and that there is a “restricted repertoire” of what they’re able to develop into—namely, blood cells for HSCs and connective tissue cells for MSCs.

What is cord blood banking?

Blood in the umbilical cord contains haematopoietic stem cells, which can be used to develop into different kinds of blood cells (such as red blood cells), and mesenchymal stem cells (stromal cells), which are important for repairing some body tissues. After birth, the umbilical cord can be clamped and the blood within it and the placenta cryogenically stored. According to the Human Tissue Authority, 376 843 units of cord blood were stored with the UK’s private cord blood biobanks at the end of 2022, representing over 90% of the country’s total stores of cord blood supply. The remainder is stored in philanthropic umbilical cord blood banks, such as the independent charity Anthony Nolan, 9 to which parents can choose to donate cord blood for other patients or research.

Stem cell therapies are showing promise in treating some conditions that diminish quality of life, such as cerebral palsy. 4 Finding a stem cell match through public banks or within families can be a challenge.

Responding to this criticism, Cells4Life says, “Any cursory search of published literature on future applications of perinatal stem cells demonstrates the huge potential that cord blood holds for use in regenerative medicine in the future.” It references papers in which MSCs are used to reduce inflammatory immune responses after organ transplantations and adds: “MSCs can be transformed into inducible pluripotent stem cells (iPSCs). This technology allows a cell to mimic an embryonic stem cell … capable of forming any tissue with [the] exception of germ cells.”

Potentially misleading claims

But Murry considers the claims of pluripotency and the ability to develop into any tissue potentially misleading, because they do not give parents the whole picture. He says that transforming stem cells into iPSCs requires highly trained stem cell scientists to reprogramme the cell. “The biobanks store the starting material in a 1000 step journey,” he says, “They don’t provide you with a route to a scientist in a lab.”

“Also, you can make iPSCs from your blood or from your skin as an adult,” Murry adds, meaning that cord blood banking is unnecessary for this process.

Many other private biobanks make similar claims about the therapeutic potential of cord blood. SmartCells, a competing cord blood bank, claims on its website: “As the body’s building blocks, the possibilities for using stem cells are endless. These potent cells are unique because they have the ability to repair, replace, and regenerate cells of almost any kind.”

Future Health Biobank, another private cord blood bank service, lists “treatment possibilities” on its website, naming over 75 genetic, immune, and blood disorders that can be treated with HSCs.

Pietro Merli is a paediatrician at the Bambino Gesù paediatric hospital in Rome, Italy, where he uses HSCs and other cell products to treat his patients. He also believes that the lists of diseases and disorders claimed by the biobanks to be treatable with MSCs and HSCs are unrealistic.

He explains that many of the disorders and diseases he treats with HSCs do not require autologous stem cells, harvested from the patients, and can instead use allogeneic stem cells from donors who are HLA (human leucocyte antigen) matched to patients. “There are many conditions that can be treated with haematopoietic stem cell transplants, but these are allogeneic stem cell transplants, not autologous,” he says.

Merli says that the few instances in which doctors might use autologous HSC transplants are in treating lymphomas. “But you can use your own stem cells from bone marrow, which are harvested during your treatment,” he said, adding that there is no benefit to harvesting and storing stem cells from cord blood.

Merli says that in Italy, where he practises, such advertising by stem cell therapy companies is illegal. He also says that no cord blood bank he has seen details how patients would hypothetically be able to use their preserved stem cells.

Neither SmartCells nor Future Health responded to The BMJ ’s request for comment.

The Royal College of Obstetricians and Gynaecologists and the Royal College of Midwives do not recommend commercially harvesting umbilical cord blood, unless there’s a specific medical reason to do so. 10

Murry says the decision whether to bank their infant’s cord blood ultimately lies with parents: “If the cost is not a big deal for you, and it brings you peace of mind, go for it.”

Competing interests: I have read and understood the BMJ Group policy on declaration of interests and have no relevant interests to declare.

Commissioning and peer review: Commissioned; externally peer reviewed.

This feature has been funded by the BMJ Investigations Unit. For details see bmj.com/investigations . Got a story? Contact us: [email protected]

• ↵ Saving and storing your baby’s cord blood and tissue: is this a growing trend? Louisa Ghevaert Associates. 2020. https://louisaghevaertassociates.co.uk/saving-and-storing-your-babys-cord-blood-and-tissue-is-this-a-growing-trend
• Martin L-A ,
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• ↵ Anthony Nolan. Cord blood programme. https://www.anthonynolan.org/clinicians-researchers-hub/healthcare-professionals/cord-blood-programme
• ↵ Royal College of Obstetricians and Gynaecologists, Royal College of Midwives. RCOG/RCM statement on umbilical cord blood collection and banking. 2011. https://www.rcm.org.uk/media/2309/rcog-rcm-statement-on-umbilical-cord-blood-collection-and-banking.pdf

  Journal of Advocacy, Research and Education Journal / Journal of Advocacy, Research and Education / Vol. 11 No. 1 (2024) / Articles (function() { function async_load(){ var s = document.createElement('script'); s.type = 'text/javascript'; s.async = true; var theUrl = 'https://www.journalquality.info/journalquality/ratings/2408-www-ajol-info-jare'; s.src = theUrl + ( theUrl.indexOf("?") >= 0 ? "&" : "?") + 'ref=' + encodeURIComponent(window.location.href); var embedder = document.getElementById('jpps-embedder-ajol-jare'); embedder.parentNode.insertBefore(s, embedder); } if (window.attachEvent) window.attachEvent('onload', async_load); else window.addEventListener('load', async_load, false); })();  

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Perceived effectiveness of ghana’s school feeding programme in improving the livelihood of beneficiaries in assin south district, daniel adjei, alexander tetteh kwasi nuer, selorm omega, benjamin chris ampimah.

Ghana’s SFP has played an essential role in combating malnutrition among school-age children and advancing the Universal Primary  Education goal. This study investigates the overall impact of the school feeding Programme, with a focus on its effectiveness in improving  the livelihoods of beneficiary communities in the Assin South District. The study followed a mixed methods approach, with 95  headteachers and 26 local food farmers as respondents. The study focuses on the perceived effectiveness of the Ghana School Feeding  Programme in increasing employment opportunities within the district, as perceived by headteachers. The findings show that the  Additional Employment Scheme component positively impacts the livelihoods of local food farmers, resulting in larger farm sizes and the  adoption of improved farming practices. However, the challenges identified do not ensure a consistent market for local food farmers’  produce, including cooks and caterers in beneficiary schools not frequently purchasing their produce. It has been revealed that caterers  facing pre-financing challenges rely on suppliers willing to pay once government funds are released. Recommendations for improving  the Programme’s impact include expanding the programme to benefit more communities, thereby creating job opportunities. Furthermore, a registration system for local food producers as sole suppliers is proposed to ensure a market for their products. Other  suggestions include allocating a percentage of the district’s internally generated funds to caterers and collaborating with financial  institutions to provide flexible loans to registered farmers. 

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2024 Investment Climate Statements: Finland

• EXECUTIVE SUMMARY

Finland is a Nordic country situated north of the Baltic states, bordering Russia, Sweden, and Norway. It has excellent transportation links within the Nordic-Baltic region and is a member of the Schengen Zone within which internal border controls have been, for the most part, eliminated. In 2023, the population was around 5.6 million, with over 85 percent residing in cities in the country’s south. Helsinki is the capital and largest city, with a population of around 675,000 in the city and 1.5 million in the metropolitan area.

Finland is a member of the European Union and a part of the Euro area. In 2023, Finland joined NATO and concluded negotiations on a bilateral Defense Cooperation Agreement (DCA) with the United States. NATO membership and the DCA should benefit the country economically by increasing regional security and stability; and investments in the defense industry will create jobs and stimulate economic growth and trade. According to Finnish Customs, the United States was Finland’s biggest trading partner for exports in 2023.

As a modern, stable economy, Finland offers a well-developed digital infrastructure with stability, functionality, and a high standard of living. The country has a highly skilled, educated, and multilingual labor force with solid expertise in Information Communications Technology (ICT) and emerging technologies, including microelectronics; quantum and supercomputing; shipbuilding; forestry; and renewable energy. Finland and the United Sates are intensifying cooperation in various fields, including cybersecurity, 6G networks, nuclear, climate, energy, health, biotechnology, space, quantum technology, artificial intelligence, and other emerging technologies through bilateral joint statements and agreements.

In 2021, emerging from the pandemic, Finland’s economy recovered swiftly from recession to moderate growth of 2.6 percent, but growth slowed after Russia’s February 2022 full-scale invasion of Ukraine. The center-right government of Prime Minister Petteri Orpo, formed in June 2023 following parliamentary elections in April 2023, aims to improve weak economic growth through changes to structural policies, including balancing public finances; spurring investment in education, research, and development; accelerating the green transition; and introducing labor market reforms. Labor unions engaged in a series of political strikes aimed at blocking the implementation of the labor market reforms during the spring of 2024.

At the same time, an aging population and a shrinking workforce are the most pressing demographic concerns for economic growth. According to the Foreign Direct Investment (FDI) Barometer 2023, over three-quarters of businesses report experiencing a talent shortage, with large foreign-owned companies being most negatively affected. In response, Finland aims to increase work- and education-based immigration through the Talent Boost program, revised for the years 2023-2027. The aim is to attract and improve the employment of international specialists immigrating to Finland.

Finland has set a target of becoming carbon neutral by 2035. To accelerate the green transition, the government is prioritizing investment projects in renewable energy production, industrial electrification, hydrogen economy, carbon capture and storage, and battery production to grant quicker permit processing times. The current pipeline of green investments amounts to approximately 230 billion euros ($247 billion), including projects by domestic and multinational companies. The high share of carbon-free electricity production in the domestic energy mix, which was 94 percent in 2023, facilitates the green transition.

The European Central Bank has tightened monetary policy in the euro area in response to high inflation, which has also slowed economic growth in Finland during the past two years. Industrial production and construction are sensitive to interest rate movements, which have reduced private consumption, investment, and the demand for housing in Finland. The Bank of Finland’s interim forecast indicates Gross Domestic Product (GDP) will decrease by 0.5 percent in 2024. Economists predict the economy will bounce back towards the end of the year, and GDP will grow by 1.7 percent in 2025. Inflation is projected to decline to below one percent during 2024, improving employees’ actual earnings and consumers’ purchasing power.

Russia’s war against Ukraine has impacted Finland’s economic activity and inflation through higher energy and commodity prices, the disruption of international commerce, and weaker confidence in the economy. Finnish Customs indicates the value of Finland’s exports of goods to Russia and Central Asia amounted to 1.2 billion euros ($1.3 billion) in 2023, a decrease of 50.5 percent compared to 2022. The overall economic effects of the war on the private sector have remained relatively small as companies have replaced Russian trade with other markets.

1. Openness To, and Restrictions Upon, Foreign Investment

• Policies Towards Foreign Direct Investment

The Finnis government is open to foreign investment. As an EU member state, Finland is committed to the free movement of goods, capital, persons, and certain services. Companies benefit from trade arrangements through EU and World Trade Organization (WTO) membership, and the protection offered by Finland’s bilateral investment treaties with sixty-three countries.

Private ownership and the participation of foreign companies or individuals are unrestricted, and the government promotes trade and foreign direct investment. Business Finland helps foreign investors set up businesses and provides free services ranging from data collection and matchmaking to location management. The organization offers funding for research and development work carried out by companies, research organizations, and public sector service providers in Finland: https://www.businessfinland.com/  

• Limits on Foreign Control and Right to Private Ownership and Establishment

The Act on Monitoring Foreign Corporate Acquisitions (172/2012) governs foreign investments in Finland. The Ministry of Economic Affairs and Employment monitors and confirms foreign corporate acquisitions and decides whether an acquisition conflicts with securing national defense and safeguarding public order and security. If the ministry finds a critical national interest jeopardized, it must refer the matter to the Council of State, which may refuse to approve the acquisition. For more information: https://tem.fi/en/acquisitions  

In the non-military sector, Finnish companies considered critical for securing vital functions are subject to screening, which applies to foreign owners residing or domiciled outside the EU or the European Free Trade Association (EFTA). The Ministry of Economic Affairs and Employment provides instructions for preparing the application/notification. The application and statement must also be accompanied by a form containing specific information required by EU regulation.

For defense acquisitions, monitoring applies to all foreign owners, who must apply for prior approval. “Defense” includes all entities that supply or have supplied goods or services to the Finnish Ministry of Defense, the Finnish Defense Forces, and the Finnish Border Guard, as well as entities dealing in dual-use goods.

Finland requires non-EU/European Economic Area (EEA) foreign individuals or entities to receive Defense Ministry permission before they purchase real estate. Companies registered in Finland with decision-making bodies of at least one-tenth non-EU/EEA origin must seek a permit. More information is available here: https://www.defmin.fi/en/licences_and_services/authorisation_to_non-eu_and_non-eea_buyers_to_buy_real_estate#a6591279  

In 2022, the European Commission published guidance for EU member states on assessing and preventing threats to EU security and public order from Russian and Belarusian investments. The direction highlights the increased risk from investments subject to Russian or Belarusian government influence in the context of Russia’s invasion of Ukraine and calls for close cooperation between authorities involved in investment screening and those responsible for enforcing sanctions.

• Other Investment Policy Reviews

Finland is considered one of the most open economies in the OECD area with a stable economy and society, strong institutions, and low corruption that attracts foreign investors. Knowledge and innovation capacity are among the most critical factors bringing foreign firms to the Finnish economy, and salaries for high-skilled workers are considered relatively competitive compared to other Nordic states.

In 2021, the OECD launched the Impact of Regulation on International Investment in Finland report to analyze FDI flows toward Finland and other Nordic-Baltic countries and discuss the benefits of foreign investment for the Finnish economy. The OECD noted that several challenges may prevent Finland from exploiting its full potential as a destination for FDI.

The OECD recommended reviewing and streamlining inefficient and burdensome policies, diminishing red tape, and fostering competition to encourage new international investment and enhance the economic performance of existing players. Complex administrative procedures to recruit foreign talent and stringent labor market conditions affect growth prospects. Further policy responses that help businesses deal with skill shortages are essential to ensure attractiveness as an investment location. More information is available here: https://www.oecd.or g/publications/the-impact-of-regulation-on-international-investment-in-finland-b1bf8bee-en.htm  

Over the past three years, Finland has not undergone an investment policy review by the WTO or the United Nations Committee on Trade and Development (UNCTAD).

• Business Facilitation

All businesses in Finland must be publicly registered at the Finnish Trade Register. The website is: https://www.prh.fi/en/kaupparekisteri.html .

The Business Information System (BIS) is an online service enabling investors to start a business or organization, report changes, close down a business, or conduct searches: https://www.prh.fi/en/kaupparekisteri/rekisterointipalvelut/ytj.html  

All businesses must also enter the VAT, Prepayment, and Employer Registers of Tax Administration. Instructions for registering a company can be found at this website: https://www.vero.fi/en/businesses-and-corporations/business-operations/tax-administrations-registers–business/  

Entrepreneurs can apply for a residence permit in Finland. Before a permit can be issued, entrepreneurs usually need to enter their business in the Trade Register maintained by the Finnish Patent and Registration Office. https://migri.fi/en/entrepreneur  

In 2022, Finland introduced a long-term “D” visa for students, researchers, persons in managerial positions in companies, and their family members to increase the immigration of skilled labor. With a “D” visa, applicants can enter Finland immediately after receiving a favorable decision on the residence permit application, and the “D” visa sticker has been attached to the passport. For more information: https://migri.fi/en/d-visa  

• Outward Investment

International trade and external economic relations are central to Finland’s foreign and security policy. The Ministry for Foreign Affairs prepares and implements Finland’s trade policy within the framework of the EU.

Team Finland is a network of public sector bodies dedicated to helping Finnish companies grow and be successful in their dealings abroad. It also promotes the country’s image and attracts foreign investments and experts to Finland. The network offers tailor-made service packages for companies’ internationalization needs based on the services provided by the network actors. Service packages typically combine services provided by the Center for Economic Development, Transport and the Environment, Business Finland, Finnvera, and the Ministry for Foreign Affairs. https://www.team-finland.fi/en/network-services-for-companies  

Business Finland is a public-sector operator and part of the Team Finland network. It helps Finnish Small- and Medium-Sized Enterprises (SMEs) go international, encourages foreign direct investment in Finland, and promotes tourism. The organization focuses on agricultural technology, clean technology, connectivity, e-commerce, education, information and communication technology, digitalization, mining, and mobility. While many of Business Finland’s programs are export-oriented, they also seek to offer business and network opportunities within Finland that are not necessarily focused on exports. The organization employs 760 specialists at 40 foreign locations and 16 offices in Finland. https://www.businessfinland.fi/en/for-finnish-customers/home  

The government generally allows domestic investors to invest abroad, with some exceptions. The defense ministry approves arms exports for military use, the National Police Board grants permission to export civilian weapons, and the foreign ministry oversees exports of dual-use products.

• 2. Bilateral Investment and Taxation Treaties

Finland has 55 Bilateral Investment Treaties in force but does not share a BIT or Free Trade Agreement (FTA) with the United States. As an EU member state, Finland is a signatory to any treaty or agreement signed by the EU, including free trade agreements. A complete list of Finland’s investment agreements can be found at: https://investmentpolicy.unctad.org/international-investment-agreements/countries/71/finland  

Finland and the United States signed a convention to avoid double taxation and prevent fiscal evasion concerning taxes on income and capital (TIAS 12101) that entered into force in 1990. In 2014, the two countries signed an intergovernmental agreement to implement the U.S. Foreign Account Tax Compliance Act (FATCA), which fights tax evasion and fraud. For more information: https://www.vero.fi/en/businesses-and-corporations/business-operations/financial-sector/fatca-crs-and-dac2/general-information/   https://home.treasury.gov/system/files/131/FATCA-Agreement-Finland-3-5-2014.pdf

Finland is a member of the OECD Inclusive Framework on Base Erosion and Profit Shifting and a party to the two-pillar plan to address the tax challenges arising from the digitalization of the economy. For a list of Finland’s bilateral tax agreements, see: https://www.vero.fi/en/detailed-guidance/guidance/49062/tax_treatie/  

3. Legal Regime

• Transparency of the Regulatory System

In Finland, competition policy aims to create and maintain an environment where enterprises have a level playing field and an opportunity to succeed due to their expertise. The Competition Act (948/2011) is the base for the national competition policy, seeking to ensure sound and effective economic competition. The Finnish Competition and Consumer Authority is responsible for applying the legislation. For more information: https://www.kkv.fi/en/competition-affairs/competition-act/  

Finland is subject to accounting, auditing, and financial reporting requirements established through EU regulations and directives as transposed into national laws and regulations. Finland has fully aligned its legal framework with the EU acquis communitaire related to accounting and auditing. For more information: https://www.ifac.org/about-ifac/membership/profile/finland#:~:text=In%20Finland%2C%20the%20Accounting%20Act,European%20Commission%20(EC)%20Regulations  

Finnish law does not require institutional investors and financial intermediaries to consider Environmental, Social, and Governance (ESG) factors when making investment decisions. Most institutional investors and financial intermediaries have signed the UN Principles for Responsible Investment and also consider sustainable development goals in their investment decisions. However, the Finnish Corporate Governance Code considers certain ESG factors in its recommendations, such as the composition of the company’s board of directors concerning gender. The Corporate Governance Code applies to all companies listed on Nasdaq Helsinki. https://cgfinland.fi/en/corporate-governance-code/  

In September 2021, the Ministry of Economic Affairs and Employment released a Sustainable Development Goals (SDG) finance roadmap, called the “Finnish Roadmap for Financing a Decade of SDG Action 2021.” The roadmap aims to support Finnish stakeholders with a goal of increasing financing for solutions to reach the SDGs in Finland and globally. More information can be found here: https://tem.fi/en/developing-finlands-sustainable-finance-ecosystems  

The Act on the Openness of Public Documents establishes the openness of all records in the possession of officials of the state, municipalities, registered religious communities, and corporations that perform legally mandated public duties, such as pension funds and public utilities. Exceptions can only be made by law or by an executive order for reasons such as national security. https://oikeusministerio.fi/en/act-on-the-openness-of-government-activities  

The Ministry of Justice maintains an online Finlex Data Bank database of up-to-date legislative and judicial information. Most of the databases are only available in Finnish and Swedish, but some translations of Finnish acts and decrees are also available in English and other languages. Case law in the legal literature database is also available in English. https://finlex.fi/en/  

The Ministry of Justice provides an online service to request and give statements electronically in connection with draft regulations, legislation, and other government documents. Public administration authorities can publish draft bills and regulations for public consultation. The service is available in Finnish and Swedish: https://www.lausuntopalvelu.fi/FI  

The Parliamentary Ombudsman exercises oversight to ensure that those who perform public tasks comply with the law and fulfill their responsibilities. The Ombudsman investigates complaints, conducts on-site inspections, and makes statements on legislative proposals. The scope of the Ombudsman’s oversight includes courts, authorities, and public servants, as well as other persons and organizations that perform public tasks. The Ombudsman submits an annual report to Parliament, including observations on the state of the administration of justice and any shortcomings in legislation. https://www.oikeusasiamies.fi/en/eoa  

The status of Finland’s public finances is available at Statistics Finland, Finland’s official statistics agency: https://www.stat.fi/en/topic/national-economy  

The status of Finland’s national debt is available at the State Treasury: https://www.treasuryfinland.fi/statistics/statistics-on-central-government-debt/  

• International Regulatory Considerations

Finland follows EU internal market practices, which define Finland’s trade relations both inside the EU and with non-EU countries. As a member of the WTO, Finland reports under the Agreement on Technical Barriers to Trade (TBT Agreement) all proposed technical regulations that could affect trade with other member countries. In 2021, Finland submitted two notifications of technical regulations and conformity assessment procedures to the WTO. It has submitted 105 notifications since 1995. Finland is a signatory to the WTO Trade Facilitation Agreement (TFA), which entered into force on February 22, 2017.

• Legal System and Judicial Independence

Finland has a civil law system. European Community (EC) law is directly applicable in Finland and takes precedence over national legislation. The Market Court is a special court for rulings in commercial law, competition, and public procurement cases, and may issue injunctions and penalties against the illegal restriction of competition. It also governs mergers and acquisitions, may overturn public procurement decisions, and require compensatory payments. More information about the court is available here: https://oikeus.fi/tuomioistuimet/en/index.html  

Finland has been a party to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards since 1962. The provisions of the convention have been included in the Arbitration Act (957/1992).

The Oikeus.fi website https://oikeus.fi/en/index.html   contains information about the Finnish judicial system and links to the websites of the independent courts, the public legal aid and guardianship districts, the National Prosecution Authority, the National Enforcement Authority Finland, and the Criminal Sanctions Agency.

• Laws and Regulations on Foreign Direct Investment

The Ministry of Economic Affairs and Employment monitors foreign corporate acquisitions and is a national contact point for the EU screening regulation. The purpose of the Act on the Monitoring of Foreign Corporate Acquisitions in Finland (127/2012) (hereafter the Act) is to monitor and, if vital national interests so require, to restrict the transfer of influence to foreigners and foreign organizations and foundations. More information about the Act is available here: ihttps://tem.fi/en/acquisitions.

Under the Act, corporate acquisition refers to activities in which a foreign owner gains control of at least one-tenth, at least one-third, or at least one-half of the aggregate number of votes conferred by all shares in the company or a holding that otherwise corresponds to decision-making authority in a limited liability company or other monitored entity. For more information: https://tem.fi/documents/1410877/0/Kysymyksi%C3%A4+ja+vastauksia_en.pdf/0ef51799-6c84-9251-6cfe-188bc91c6f83/Kysymyksi%C3%A4+ja+vastauksia_en.pdf?t=1636548655250  

There is no primary or “one-stop-shop” website that provides all relevant laws, rules, procedures, and reporting requirements for investors. A non-European Economic Area (EEA) resident (persons or companies) operating in Finland must obtain a license or a notification when starting a business in a regulated industry. For more information: https://tem.fi/en/regulation-of-business-operations  

• Competition and Antitrust Laws

The Finnish Competition and Consumer Authority (FCCA) protects competition by intervening in cases regarding restrictive practices, such as cartels and abuse of dominant position, and violations of the Competition Act and the Treaty on the Functioning of the European Union (TFEU). Investigations occur both on the FCCA’s initiative and based on complaints. Where necessary, the FCCA makes proposals to the Market Court regarding penalties.

The FCCA requires notification on mergers and acquisitions that exceed certain turnover thresholds. The FCCA will intervene in the transaction if it deems it to prevent effective competition in Finland. The FCCA would investigate transactions where the parties’ combined turnover generated in Finland exceeds EUR 100 million and the total turnover generated in Finland of at least two parties exceeds EUR 10 million per party.

In international competition matters, the FCCA’s key stakeholders are the European Commission (DG Competition), the OECD Competition Committee, the Nordic competition authorities, and the International Competition Network (ICN). FCCA rulings and decisions can be found in the archive in Finnish. More information is available at: https://www.kkv.fi/en/facts-and-advice/competition-affairs/

• Expropriation and Compensation

Finnish law protects private property rights. Citizen property is protected by the constitution, which includes basic provisions in the event of expropriation. Private property is only expropriated for public purposes (eminent domain), in a non-discriminatory manner, with reasonable compensation, and in accordance with established international law.

Expropriation is usually based on a permit given by the government or on a confirmed plan and is performed by the District Survey Office. An expropriation permit granted by the government may be appealed to the Supreme Administrative Court. Compensation is awarded at full market price but may exclude the rise in value due only to planning decisions.

Besides normal expropriation according to the Expropriation Act, a municipality or the state has the right to expropriate land for planning purposes. Expropriation is mainly for acquiring land for common needs, such as street areas, parks, and civic buildings. The method is rarely used: less than one percent of land acquired by the municipalities is expropriated. Credendo Group ranks Finland’s expropriation risk as low (1), on a scale from 1 to 7: https://credendo.com/en/country-risk/finland  

Dispute Settlement

• ICSID Convention and New York Convention

In 1969, Finland became a member state of the World Bank-based International Center for Settlement of Investment Disputes (ICSID; Washington Convention). Finland is a signatory to the Convention of the Recognition and Enforcement of Foreign Arbitral Awards (1958 New York Convention).

• Investor-State Dispute Settlement

The Finnish Arbitration Act (967/1992) applies to domestic and international arbitration without distinction. Sections 1 to 50 apply to arbitration in Finland, and Sections 51 to 55 apply to arbitration agreements providing for arbitration abroad and the recognition and enforcement of foreign arbitral awards in Finland. Of 229 parties in 2021, the majority (208) were from Finland.

In 2021, a Chinese investor brought the first known investment treaty claim against Finland. He was detained and had his business center raided and shut down on suspicion it was facilitating illegal immigration. The proceedings were ultimately settled between Finland and the claimant. For more information: https://investmentpolicy.unctad.org/investment-dispute-settlement/cases/1192/wang-v-finland  

• International Commercial Arbitration and Foreign Courts

Finland has a long tradition of institutional arbitration, and its legal framework dates to 1928. Today, arbitration procedures are governed by the 1992 Arbitration Act (as amended), which largely mirrors the UNCITRAL Model Law on International Commercial Arbitration of 1985 (with amendments, as adopted in 2006). However, the UNCITRAL Model law has yet to be incorporated into Finnish law.

Finland’s Act on Mediation in Civil Disputes and Certification of Settlements by Courts (394/2011) aims to facilitate alternative dispute resolution (ADR) and promote amicable settlements by encouraging mediation and applies to settlements concluded in other EU member states: https://www.finlex.fi/en/laki/kaannokset/2011/en20110394.pdf

In June 2016, the Finland Arbitration Institute of the Chamber of Commerce (FAI) launched its Mediation Rules under which FAI will administer mediation: https://arbitration.fi/mediation/mediation_rules/  

Any dispute in a civil or commercial matter, international or domestic, which can be settled by agreement may be referred to arbitration. Arbitration is frequently used to resolve commercial disputes and is usually faster than court proceedings. An arbitration award is final and binding. FAI promotes the settlement of disputes through arbitration, commonly using the “FAI Arbitration/Expedited Arbitration Rules,” which were updated in 2020: https://arbitration.fi/en/arbitration/rules-and-guidelines/  

The Finland Arbitration Institute (FAI) appoints arbitrators both to domestic and international arbitration proceedings and administers domestic and international arbitrations governed by its rules. It also appoints arbitrators in ad hoc cases when the arbitration agreement provides and acts as appointing authority under the UNCITRAL Arbitration Rules. The Finnish Arbitration Act (967/1992) states that foreign nationals can act as arbitrators. For more information: https://arbitration.fi/en/arbitration/  

Finland signed the UN Convention on Transparency in Treaty-based Investor-State Arbitration (“Mauritius Convention”) in March 2015. Under these rules, all documents and hearings are open to the public, interested parties may submit statements, and protection for confidential information has been strengthened.

• Bankruptcy Regulations

The Bankruptcy Act (120/2004) governs bankruptcy proceedings aimed at liquidating the assets of an insolvent company to satisfy its creditors and dissolve the company. The act was amended in 2019 to simplify, digitize, and speed up bankruptcy proceedings. The amended act allows administrators to send notices and invitations to creditor addresses registered in the Trade Register. This improves accessibility for foreign companies that have established a branch in Finland. For more information: https://www.finlex.fi/en/laki/kaannokset/2004/en20040120.pdf

The Bankruptcy Ombudsman is an independent authority that supervises the administration of bankruptcy estates in Finland . The Office of Bankruptcy Ombudsman is a member of the International Association of Insolvency Regulators (IAIR). For more information: https://www.konkurssiasiamies.fi/en/index.html  

The Reorganization of Enterprises Act (1993/47) establishes a legal framework for reorganization with the aim to provide an alternative to bankruptcy proceedings. The act excludes credit and insurance institutions and certain other financial institutions. Recognition of restructuring or insolvency processes initiated outside of the EU requires an exequatur from a Finnish court. https://www.finlex.fi/fi/laki/kaannokset/1993/en19930047  

4. Industrial Policies

• Investment Incentives

Foreign-owned companies in Finland are eligible for government and EU incentives on an equal footing with Finnish-owned businesses. Companies receive support through grants, loans, tax benefits, equity participation, guarantees, and employee training.

The income tax rate for limited liability companies and other corporate entities is 20 percent. According to the 2023 International Tax Competitiveness Index, the Finnish tax system is the 19th best tax code among 38 OECD countries. For more information: https://www.vero.fi/en/businesses-and-corporations/business-operations/foreign-business-in-finland/taxation-in-finland/   and https://taxfoundation.org/location/finland/  

Startups, SMEs, and large companies can benefit from Business Finland’s incentives: https://www.businessfinland.fi/en/do-business-with-finland/invest-in-finland/business-environment/incentives/incentives-short   and https://www.businessfinland.fi/48d8e1/globalassets/julkaisut/invest-in-finland/business-guides-and-fact-sheets/iif_factsheet_incentives.pdf

Centers for Economic Development, Transport, and the Environment (ELY Centers) support the establishment, growth, and development of SMEs by providing advisory, training, and expert services, and by granting funding for investment and development projects. Large companies may also qualify for assistance or funding if they significantly increase employment in their region of operation. Startups can receive subsidies to establish and expand business operations during their first 24 months. For more information: http://www.ely-keskus.fi/en/web/ely-en/business-and-industry;jsessionid=0B09A1B237B74FAC485AAD7C8E068DBF  

As part of its Sustainable Growth Program, which is funded by the EU Recovery Plan, Finland is promoting energy investments and energy infrastructure projects that reduce greenhouse gas emissions in Finland and support Finland’s target to be carbon neutral by 2035. For more information: https://tem.fi/en/-/energy-investments-of-finland-s-sustainable-growth-programme-promote-the-green-transition   and https://www.businessfinland.fi/en/for-finnish-customers/services/funding/energy-aid  

Government aid is available for the implementation of energy audits, investments that conserve energy, and investments related to the use of renewable energy, as well as for European Skills, Competences, Qualifications and Occupations (ESCO) projects. For more information: https://www.motiva.fi/en/solutions/policy_instruments/energy_aid  

Finnvera offers loans, domestic guarantees, export credit guarantees, and other services associated with financing exports: https://www.finnvera.fi/eng  

• Foreign Trade Zones/Free Ports/Trade Facilitation

The EU Customs Code (UCC), which entered into force on May 1, 2016, harmonized free trade zone area regulations in the EU.

The Åland Islands are one of the unique fiscal territories within Finland and the EU. The tax border separates the Åland Islands from the VAT and excise territory of the EU. VAT and excise are levied on goods imported across the tax border, but no customs duty is levied. In tax border trade, goods can be sold with a tax-free invoice in accordance with the detailed taxation instructions of the Finnish Tax Administration. Trade between Åland and non-EU countries is subject to the same regulations and instructions as trade between the EU and third countries. For more information: https://tulli.fi/en/businesses/aland-businesses  

• Performance and Data Localization Requirements

As an EU member state, Finland adheres to the General Data Protection Regulation (Regulation (EU) 2016/679) (GDPR), an EU law that entered into force in 2016, and, following a two-year transition period, became law on May 25, 2018, without requiring EU member states to change national laws.

Finland’s Data Protection Act (1050/2018) supplements the GDPR. The Data Protection Ombudsman is a national supervisory authority that supervises compliance with data protection legislation. The office has approximately 45 specialists, including the Data Protection Ombudsman and two Deputy Data Protection Ombudsmen. For more information: https://tietosuoja.fi/en/home   and https://www.finlex.fi/en/laki/kaannokset/2018/en20181050.pdf

5. Protection of Property Rights

• Real Property

The Finnish legal system protects and enforces property rights and secured interests in property, both movable and real. Mortgages exist in Finland and can be applied to both owned and rented real estate. In Finland, real property formation, development, land consolidation, cadastral or boundary mapping, registration of real properties, ownership and legal rights, real property valuation, and taxation are all combined within one basic cadastral system (i.e. real estate register) maintained by the National Land Survey: https://www.maanmittauslaitos.fi/en/apartments-and-real-property  

Finland is not a contracting party to the 2001 Cape Town Convention on Mobile Equipment (CTC) and the Protocol on Matters Specific to Aircraft Equipment (Aircraft Protocol).

• Intellectual Property Rights

Finland is not included on USTR’s Special 301 Report or Notorious Markets List..

USTR’s 2022 Notorious Markets List mentions Finland for reportedly hosting a Flokinet server associated with infringing activity and reportedly hosting an FLVTO web server, a platform that allows the user to download music from YouTube and convert it to an mp3.

The Finnish legal system protects intellectual property rights (IPR), and Finland adheres to numerous international agreements. Finland ranked first among 129 countries in the Property Rights Alliance 2023 International Property Rights Index (IPRI), which concentrates on a country’s legal and political environment, physical property rights, and IPR: https://www.internationalpropertyrightsindex.org/  

IPR enforcement in Finland is based on EU Regulation 608/2013. For more information, see: https://taxation-customs.ec.europa.eu/customs-4/prohibitions-and-restrictions/counterfeit-piracy-and-other-ipr-violations_en  

IPR must be registered in Finland to be enforced under local laws, such as the Copyright Act, the Registered Designs Act, and the Patents Act. Patent rights in Finland are consistent with international standards, and a granted patent is valid for 20 years. The Finnish Patent and Registration Office (PRH) website contains unofficial translations in English of the Patents Act, Patents Decree, and Patent Regulation. For more information: https://www.prh.fi/en/index.html  

The Finnish Trademarks Act was enacted in May 2019 to implement the revised EU Trademark Directive. The act includes provisions concerning collective marks and control marks. It includes amendments to related legislation such as the Finnish Company Names Act, the Criminal Code, and relevant procedural acts. Trademark applicants or proprietors not domiciled in Finland must have a representative resident in the European Economic Area. Finland is a party to the Madrid Protocol.

Finnish Customs supervises counterfeit products that are imported to, exported from, and transited via Finland and other products that violate IPR. Custom officers have the authority to seize and destroy counterfeit goods. Customs has intensified the control of counterfeit goods by conducting a risk analysis of postal traffic. The long-term trend indicates a decline in counterfeit goods detected in large-volume shipments: https://www.vero.fi/en/grey-economy-crime/prevention/preventionstatistics/  

Finland is a member of the World International Property Organization (WIPO) and party to a several other treaties, including the Berne Convention, the Paris Convention, the Patent Cooperation Treaty, the WIPO Copyright Treaty, the WIPO Performances and Phonograms Treaty, and the International Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organizations (Rome Convention). Finland is a party to the WTO’s Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).

For additional information about national laws and points of contact at local IP offices, please see WIPO’s country profiles at: https://www.wipo.int/directory/en/details.jsp?country_code=FI  

6. Financial Sector

• Capital Markets and Portfolio Investment

Finland is open to foreign portfolio investment and has an effective regulatory system. Credit is allocated on market terms and made available to foreign investors non-discriminately, and private sector companies have access to various credit instruments. Legal, regulatory, and accounting systems are transparent and consistent with international norms.

The Helsinki Stock Exchange is part of OMX, referred to as NASDAQ OMX Helsinki (OMXH). NASDAQ OMX Helsinki is part of the NASDAQ OMX Nordic division, together with the Stockholm, Copenhagen, Iceland, and Baltic (Tallinn, Riga, and Vilnius) stock exchanges.

Finland accepts the obligations under IMF Article VIII, Sections 2(a), 3, and 4 of the IMF Articles of Agreement. It maintains an exchange system free of restrictions on payments and transfers for current international transactions, except for those measures imposed for security reasons by the Regulations of the Council of the European Union.

• Money and Banking System

Finland has a resilient, digitally advanced, and well-capitalized banking sector characterized by cooperative banking and pan-Nordic groups. Banking is open to foreign competition, and the industry is one of Europe’s most prominent relative to the size of the national economy. Four significant banks (OP Financial Group, Nordea, Municipality Finance, and Danske Bank) dominate the banking sector, holding 80 percent of the market. The Bank of Finland is the national monetary authority and the central bank of Finland: https://www.suomenpankki.fi/en  

The Financial Supervisory Authority (FIN-FSA) supervises Finland’s financial and insurance sectors, including banks, insurance and pension companies, other companies operating in the insurance sector, investment firms, fund management companies, and the Helsinki Stock Exchange: https://www.finanssivalvonta.fi/en/  

In 2023, the financial sector’s capital position remained strong despite the gloomier economic environment. Finland’s banks met the requirements for liquid bank holdings under Basel III standards, which compare a bank’s assets with its capital to see if the bank would withstand a financial crisis. The sector’s operating environment weakened as the Finnish economy slid into a recession. Despite increased credit risks in corporate and household loans, the Finnish banking sector’s non-performing loans and loan losses were still among the lowest in Europe.

Foreign companies and nationals can, in principle, open bank accounts in the same manner as Finnish nationals. However, banks must identify customers, and this may prove more difficult for foreign nationals. In addition to personal and address data, the bank often needs to know the person’s identifier code (i.e. social security number). Several banks require a work permit, a certificate of studies, a letter of recommendation from a trustworthy bank, and details regarding the nature of transactions to be made with the account. All authorized deposit-taking banks are members of the Deposit Guarantee Fund, which guarantees customers’ deposits to a maximum of EUR 100,000 ($109,000) per depositor.

The Act on Virtual Currency Providers (572/2019) entered into force in May 2019. FIN-FSA is the registration authority for virtual currency providers. The primary objective of the act is to introduce virtual currency providers into the scope of anti-money laundering regulation. Only virtual currency providers meeting statutory requirements can carry on their activities in Finland, and only a FIN-FSA registered virtual currency provider may market its currency and services in Finland. The Finnish Tax Administration released guidelines on the taxation of cryptocurrency, available here: https://www.vero.fi/en/detailed-guidance/guidance/48411/taxation-of-virtual-currencies3/  

Foreign Exchange and Remittances

• Foreign Exchange

Finland adopted the Euro as its official currency in January 1999. Finland maintains an exchange system free of restrictions on making payments and transfers for international transactions, except for those measures imposed for security reasons. Currency transfers are protected by Article VII of the IMF Articles of Agreement: http://www.imf.org/External/Pubs/FT/AA/index.htm#art7  

• Remittance Policies

There are no legal obstacles to direct foreign investment in Finnish securities or exchange controls regarding payments into and out of Finland. Banks must identify their customers and report suspected cases of money laundering or the financing of terrorism. Banks and credit institutions must also report single payments or transfers of EUR 15,000 ($16,000) or more. If the origin of funds is suspicious, banks must immediately inform the National Bureau of Investigation. There are no restrictions on current transfers or repatriation of profits. Residents and non-residents may hold foreign exchange accounts. There is no limit on dividend distributions as long as they correspond to a company’s official earnings records. Travelers carrying more than EUR 10,000 ($11,000) must make a declaration upon entering or leaving the EU.

• Sovereign Wealth Funds

Solidium is a holding company fully owned by the Finnish government. It is a minority owner of nationally listed companies operating in clusters significant to the national economy, such as the forest industry. Solidium’s ownership stake of these companies is usually over 10 percent but rarely exceeds 20 percent. According to Solidium’s investment strategy, future investments may include companies that seek to implement green transition strategies or solutions related to the platform economy. Solidium aims to strengthen and stabilize Finnish ownership in the companies and increase the value of their holdings. In 2023, Solidium paid the Finnish government approximately $374 million as a dividend. For more information: https://www.solidium.fi/en/  

7. State-Owned Enterprises

The government of Finland owns directly or through Solidium the shares of 15 listed companies on the Helsinki stock exchange. In general, State-Owned Enterprises (SOEs) are open to competition except where they have a monopoly position, namely in alcohol retail and gambling. SOEs in Finland operate in chemicals, petrochemicals, plastics, and composites; energy and mining; environmental technologies; food processing and packaging; industrial equipment and supplies; marine technology; media and entertainment; metal manufacturing and products; services; and travel. The market value of all state direct shareholdings was approximately $24 billion as of March 2024. For more information, see: https://vnk.fi/en/government-ownership-steering/companies   https://vnk.fi/en/government-ownership-steering/value-of-state-holdings  

The Ownership Steering Department in the Prime Minister’s Office has ownership steering responsibility for Finnish SOEs, and is responsible for Solidium. The State Shareholdings and Ownership Steering Act (1368/2007) and the Act Amending the State Shareholdings and Ownership Steering Act (1315/2016) regulate the administration of state-owned companies. For more information, see: https://www.finlex.fi/en/laki/kaannokset/2007/en20071368   https://www.finlex.fi/fi/laki/alkup/2016/20161315  

Finnish state ownership steering complies with the OECD Principles of Corporate Governance. The Parliamentary Advisory Council in the Prime Minister’s Office serves in an advisory capacity regarding SOE policy; it does not make recommendations regarding any business in which the individual companies are engaged. The government has proposed changing its ownership levels in several companies and increasing the number of companies the Prime Minister’s Office steers. Parliament decides from which companies the state may relinquish its sole ownership (100 percent), its control of ownership (50.1 percent), or minority ownership (33.4 percent of votes). For more information: https://vnk.fi/en/government-ownership-steering/ownership-policy  

Finland opened domestic rail freight to competition in early 2007, and in July 2016, Fenniarail Oy, the first private rail operator on the Finnish market, began operations. In November 2020, Estonian-based Operail, which works in Finland’s rail freight operations, started a subsidiary in Finland as Operail Finland. In 2023, Operail Finland’s share was sold to Nurjminen Logistics. Passenger rail transport services will be opened to competition in stages, starting with local rail services in southern Finland. Based on an agreement between Finnish State Railways (VR) and the Ministry of Transport and Communications, VR has exclusive rights to provide passenger transport rail services in Finland until the end of 2030. For more information, see: https://lvm.fi/en/-/nine-year-contract-between-the-ministry-of-transport-and-communications-and-vr-for-purchasing-rail-transport-services-1643706  

The exclusive right applies to all passenger rail transport in Finland, excluding the commuter train transport services provided by the Helsinki Regional Transport Agency (HSL). In February 2020, HSL put its commuter train transport services out for tender; VR won the tender and will continue to provide passenger rail service for the next ten years. The value of southern Finland commuter train services is $67 million per year, with 200,000 daily passengers.

• Privatization Program

Parliament makes all decisions identifying the companies in which the state may relinquish sole ownership (100 percent of the votes) or control (minimum of 50.1 percent of the votes), while the government decides on the actual sale. The state has privatized companies by selling shares to Finnish and foreign institutional investors through both public offerings and directly to employees. Sales of the state’s direct holdings totaled $2.89 billion (2007 – 2018).

The government issued a new resolution on state-ownership policy in April 2020, seeking to maximize overall social and financial benefits; use corporate assets to promote domestic ownership; and diversify the economy, create innovations, and support sustainable structural change. For more information, visit https://vnk.fi/en/government-ownership-steering  

8. Responsible Business Conduct

Finland has long traditions in compliance with labor, occupational safety, health, and environmental legislation. Finnish companies recognize that their due diligence to comply with laws and regulations is central to responsible business conduct and corporate responsibility. The Finnish Business & Society (FIBS) is the largest corporate responsibility network in the Nordic countries and has more than 300 members: https://www.fibsry.fi/briefly-in-english/  

Finland is committed to implementing the OECD Guidelines for Multinational Enterprises, the ILO Declaration on Fundamental Principles and Rights at Work, and the ILO’s tripartite declaration of principles concerning multinational enterprises and social policy. The government promotes Corporate Social Responsibility (CSR) through the Ministry of Employment and the Economy CSR Guidelines. or more information: https://tem.fi/en/key-guidelines-on-csr  

Finland ranks first in the UN’s Sustainable Development Report, which compares 193 UN member states based on 17 sustainability goals. Finland launched a new sustainable development strategy built around the UN’s Sustainable Development Goals (SDG). More information is available here: https://dashboards.sdgindex.org/profiles/finland  

The Directive of the European Parliament and the Council on the disclosure of non-financial information has been implemented via amendments to the Finnish Accounting Act, requiring affected organizations to report on their CSR. The obligation to report non-financial information and corporate responsibility reports applies to significant public interest entities, i.e., listed companies, credit institutions, and insurance companies with more than 500 employees. In addition, turnover must be greater than $45.4 million, or the balance sheet must exceed more than $22.7 million. For more information: https://tem.fi/en/accounting  

Currently, there are no other mandatory human rights-related due diligence requirements apart from those set out in the Act on the Placing on the Market of Conflict Minerals and Their Ores (1196/2020) (the Conflict Minerals Act), which improved the transparency of supply chains and brought Finland’s conflict minerals regime into line with EU regulations. Businesses importing conflict minerals (tin, tantalum, tungsten, and gold) from conflict-affected areas into the EU that exceed certain volume thresholds are subject to due diligence requirements. The Finnish Safety and Chemicals Agency and Finnish Customs are competent authorities in implementing the act. For more information: https://tukes.fi/en/industry/conflict-minerals  

Finland has joined the Extractive Industries Transparency Initiative (EITI), which supports improved governance in resource-rich countries. Finland is not a member of the Voluntary Principles on Security and Human Rights Initiative. The Human Rights Center (HRC), administratively linked to the Office of the Parliamentary Ombudsman, encourages foreign and local enterprises to follow the most important international norms: https://www.humanrightscentre.fi/  

Finland participates in the Montreux Document on pertinent international legal obligations and good practices for states related to private military and security company operations during armed conflict. However, Finland is not a member of ICoCA, the International Code of Conduct for Private Security Service Providers’ Association.

• Additional Resources

Department of State

• Country Reports on Human Rights Practices ;
• Trafficking in Persons Report ;
• Guidance on Implementing the “UN Guiding Principles” for Transactions Linked to Foreign Government End-Users for Products or Services with Surveillance Capabilities
• U.S. National Contact Point for the OECD Guidelines for Multinational Enterprises ; and;
• Xinjiang Supply Chain Business Advisory 

Department of the Treasury

• OFAC Recent Actions

Department of Labor

• Findings on the Worst Forms of Child Labor Report ;
• List of Goods Produced by Child Labor or Forced Labor ;
• Sweat & Toil: Child Labor, Forced Labor, and Human Trafficking Around the World and;
• Comply Chain .

Finland participates in international climate negotiations as an EU member state. It is firmly committed to the EU’s joint reduction target under the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement. The core elements of EU climate policy are the EU Emissions Trading System (EU ETS); national targets for sectors excluded from EU ETS (effort sharing); and obligations concerning the Land Use, Land-Use Change, and Forestry sector (LULUCF). The EU ETS covers more than 40 percent of the total greenhouse gas emissions in the EU and just under half of the greenhouse gas emissions in Finland. For more information, see: https://tem.fi/en/emissions-trading  

The National Climate Act is another fundamental pillar of Finland’s climate policy. The act aims to reduce greenhouse gas emissions for 2030 (-60 percent), 2040 (-80 percent), and 2050 (-95 percent) compared to 1990 levels. According to the act, Finland must be carbon neutral by 2035. For more information, see: https://ym.fi/en/climate  

Finland reduces carbon emissions by increasing clean energy production, investing in the hydro economy, and augmenting the carbon sequestration of the industrial and land use sectors. Renewables have replaced imported fossil fuels in domestic electricity production. In 2023, the share of carbon-free electricity production was 94 percent. The primary energy sources of electricity production were nuclear power at 41 percent, hydropower at 18.8 percent, wind at 18.1 percent, and biomass at 13.3 percent, while the share of imported electricity was 2.2 percent.

In 2024, the government reserved EUR 14.1 million ($15.3 million) in national energy aid to promote the production of renewable energy, renewable hydrogen and hydrogen-refined fuels, energy saving or more efficient energy production or use, utilization of waste heat, and the transition towards a low-carbon energy system. The government will prioritize investment projects promoting new technology, its commercialization, and the capacity of the electricity system. In addition, REPowerEU aid supports investments in new energy technology and the production and storage of renewable hydrogen, funded by the EU Recovery and Resilience Facility. REPowerEU aims to reduce dependence on Russian fossil fuels by fast forwarding the clean transition and joining forces to achieve a more resilient energy system and a true Energy Union. For more information, see: https://tem.fi/en/-/ministry-of-economic-affairs-and-employment-sets-energy-aid-priorities-for-2024  

The Finnish Climate Fund is a state-owned company that focuses on combating climate change, boosting the low-carbon industry, and promoting digitalization. Companies targeted by the fund typically receive the funding in installments over several years when meeting conditions specified in the financing agreements. For more information, see: https://www.ilmastorahasto.fi/en/  

The National Forest Strategy contains the critical outlines of Finland’s forest policy. For more information, see: https://mmm.fi/en/forests/strategies-and-programmes  

Finland also aims to increase ecological public procurement. Finland’s first National Public Procurement Strategy, launched in September 2020, focuses on developing strategic management and promoting procurement expertise. For more information, see: https://vm.fi/en/-/national-public-procurement-strategy-identifies-concrete-ways-in-which-public-procurement-can-help-achieve-wider-goals-in-society  

On MIT’s Green Future Index 2023, Finland ranked second among 76 leading countries and territories. The index measures progress and commitment towards building a low-carbon future. According to the index, Finland fosters an extensive green tech R&D ecosystem with leading-edge renewables and food tech.

9. Corruption

Corruption in Finland is covered by the criminal code and penalties range from fines to imprisonment of up to four years. The bribery offenses criminalized in the criminal code are electoral bribery, bribery violation, the giving of bribes, the acceptance of a bribe, providing bribes to a Member of Parliament, accepting a bribe as a Member of Parliament, giving of bribes in a business transaction, and accepting a bribe in a business transaction. For more information, see: https://korruptiontorjunta.fi/en/national-legislation  

Finland does not have an authority specifically charged to prevent corruption. Instead, several authorities and agencies contribute to anti-corruption work. The Ministry of Justice coordinates anti-corruption matters, but Finland’s EU anti-corruption contact is the Ministry of the Interior. The National Bureau of Investigation also monitors corruption, while the tax administration has guidelines obliging tax officials to report suspected offenses, including foreign bribery, and the Ministry of Finance has guidelines on hospitality, benefits, and gifts. The Ministry of Justice describes its anti-corruption efforts at https://oikeusministerio.fi/en/anti-corruption-activities.

The EU Directive on non-financial reporting supports action against corruption. Implementation of the EU Directive in Finland led to the amendment of the Accounting Act in December 2016. Current legislation imposes obligations on large companies to report on anti-bribery and anti-corruption action policies.

The Ministry of Justice is responsible for monitoring and developing the Transparency Register legislation. The Transparency Register Guide contains a general description, key concepts, related procedures, and published actors. The guide answers questions such as who is subject to the obligation to provide information to the Transparency Register, what kind of information must be provided to the register and when, and how the Transparency Register is monitored. The guide is available in Finnish, Swedish, and English: https://julkaisut.valtioneuvosto.fi/handle/10024/164813  

In 2020, the Ministry of Employment and Economy released an anti-corruption guide intended for companies, especially SMEs, to provide them with guidance and support for promoting sound business practices and corruption-free business relations both in Finland and abroad. Large companies must publish corporate responsibility reports. These reports must briefly describe their business model, explain the risks related to their policies, and describe how they manage these risks. The reporting obligation applies to public interest entities with over 500 employees and a turnover of over 40 million euros ($43 million) or an annual balance sheet of over 20 million euros ($22 million). Smaller companies can report voluntarily. The report can be part of yearly reports or reports on corporate social responsibility. For more information: https://tem.fi/en/-/guide-offers-smes-practical-anti-corruption-tips  

Finland has ratified the following anti-corruption conventions: the Convention on Laundering, Search, Seizure, and Confiscation of the Proceeds from Crime; the Council of Europe Civil Law Convention on Corruption; the Criminal Law Convention on Corruption; and the UN Convention against Transnational Organized Crime. Finland has become the 32nd country to sign the United Nations Convention against Corruption (UNCAC) Coalition’s Transparency Pledge, voluntarily committing to a high level of transparency and civil society inclusion in the second cycle of the UNCAC implementation review. Finland is a member of the European Partners against Corruption (EPAC).

Finland is a signatory to the OECD Convention on Anti-Bribery. In October 2020, the OECD working group on bribery said it recognizes Finland’s commitment to combat corruption but is concerned about lack of foreign bribery enforcement. For more information: https://www.oecd.org/daf/anti-bribery/finland-oecdanti-briberyconvention.htm  

• Resources to Report Corruption

Jaakko Christensen Head of Financial Crime Division National Board of Investigation P.O. Box 285, 01310 Vantaa, Finland [email protected]

Jaakko Korhonen Chairperson Transparency Finland [email protected]

• 10. Political and Security Environment

Finland acceded to NATO in April 2023 and signed a bilateral Defense Cooperation Agreement with the United States in December 2023. The Finnish Security and Intelligence Service (SUPO) estimated in the National Security Overview 2023, the most current version released, that Russia’s actions remain the greatest threat to Finland’s national security, with Russia treating Finland as an unfriendly state, and as a target for espionage and malign influence activities. According to SUPO, NATO membership protects Finland from Russia’s measures. SUPO assesses Russia’s use of irregular migration as a way for Russia to indicate its dissatisfaction with Finland’s NATO membership and generally sow the consequences of actions Russia perceives as unfriendly.

SUOP assesses that no significant changes have occurred in the threat of terrorism faced by Finland. The threat of terrorism in Finland remains at level 2, ‘Elevated’, on the four-tier scale. There are probably far-right and radical Islamist operators in Finland with the desire and capacity to carry out violent attacks. Supporters of these ideologies pose the most likely threat, either as individuals or in small groups. Attacks remain unlikely in the short term. .For more information, see: https://supo.fi/en/terrorism-overview  

While instances of political violence in Finland are rare, extremism exists, and anti-immigration and anti-Semitic incidents do occur. The Central Council of Finnish Jewish Communities has noted a rise in anti-Semitism in Finland over the past two decades, with reported instances likely underestimating the prevalence of such cases. Targeted acts of vandalism against the synagogue and property of the Israeli Embassy and random acts of vandalism featuring anti-Semitic language and images have become more common. Hate groups and far-right political parties use anti-Semitic language and Nazi iconography in both online publications and public events. SUPO considers Racially or Ethnically Motivated Violent Extremism (REMVE) online platforms a significant source of radicalization in Finland, and Jewish and Muslim community leaders have identified these websites as contributors to increases in public anti-Semitism.

In 2022, The Ministry of the Interior published the National Counterterrorism Strategy 2022–2025 to guide national and international counterterrorism activities. Finland combats terrorism, violent radicalization, and extremism to safeguard national interests and foster the safety and security of the country and its population. The Ministry of the Interior monitors the achievement of objectives and will prepare an interim report in 2024. For more information, see: https://intermin.fi/en/publication?pubid=URN:ISBN:978-952-324-578-5  

• 11. Labor Policies and Practices

According to Statistics Finland, the population was approximately 5.6 million, and the average number of employed persons aged 15 to 74 was 2,628,000 in 2023. The number of unemployed persons was 204,000. Men’s unemployment rate was 7.9 percent, while women’s unemployment rate was 6.5 percent. In January 2024, the number of unfilled vacancies was 133,400. The working-age population will decrease in the years to come due to an increasing retirement rate caused by Finland’s aging population. At the same time, the number of immigrants is growing, and people are working to a later age in life. In Finland, most job vacancies advertised are in the social healthcare services sector, the construction industry, and the service and retail sectors.

Finland has a long tradition of trade unions. The country has a 60 percent unionization rate, and approximately 90 percent of employees have participated in the collective bargaining system. Extensive tripartite cooperation between the government, employers’ groups, and trade unions characterizes the labor market system in Finland. Trade unions and employers’ associations may make collective agreements, and the ministry decides on the agreements’ validity, determining minimum wages, working hours, and working conditions. The Ministry of Employment and the Economy is responsible for drafting labor legislation, and the Ministry of Social Affairs and Health is responsible for enforcing labor laws and regulations via the Occupational Safety and Health (OSH) authorities of the OSH Divisions at the Regional State Administrative Agencies, which operate under the Ministry of Social Affairs and Health.

To increase the labor market’s flexibility, the government of Prime Minister Petteri Orpo aims to reform the labor market legislation in 2024. As part of the proposed reforms, the government intends to increase local bargaining, which refers to workplace-level agreements on working hours, annual holidays, or wages; tie all sectors’ wage increases to export industry levels; restrict the right to political strikes, including limiting political strikes to 24 hours; and cut social welfare and benefits programs, including unemployment benefits. The government’s proposed labor reforms launched a wave of political strikes in Finland.

In the March 2024 IMF Article IV consultation with Finland, the IMF commended the government’s efforts to boost employment through social benefit reforms, greater flexibility in the labor market, and lowering the labor tax wedge. According to the IMF, the government should establish robust systems to monitor the impact of these reforms on employment closely. Additionally, government policies and procedures should aim to improve higher education, lower skill mismatches, and more effectively attract and integrate international talent.

Finland adheres to most ILO conventions; and enforcement of worker rights is effective. Freedom of association and collective bargaining are guaranteed by law, providing the right to form and join independent unions, conduct legal strikes, and bargain collectively. The law prohibits anti-union discrimination and any obstruction of these rights. The National Conciliator under the Ministry of Employment and the Economy assists negotiating partners with labor disputes. The arbitration system is based on the Act on Mediation in Labor Disputes, and the Labor Court is the highest body for settlement. The ILO’s Finland Country profile can be found here: http://www.ilo.org/dyn/normlex/en/f?p=1000:11110:0::NO:11110:P11110_COUNTRY_ID:102625  

• 12. U.S. International Development Finance Corporation (DFC), and Other Investment Insurance or Development Finance Programs

The U.S. International Development Finance Corporation, DFC, does not operate in Finland.

• 13. Foreign Direct Investment Statistics

* Source for Host Country Data: Statistics Finland

• 14. Contact for More Information

[email protected]  

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