Swedish companies lining up to invest in dictatorship as the EU relaxes investment rules in former dictatorships

Thursday, 26 July 2012
Several Swedish companies are ready lining up to start establishing themselves in the former military dictatorship in Burma. Telecoms giant Ericsson and the two truck manufacturers Scania and Volvo are the few that have shown indication that they will be heading the queue.

The softening of the Communist state Cuba has already seen a handful of companies moving there. Leading is a the sector of any economy that wants to grow fast telecoms and here Swedish Ericsson is in pole position.

Already in June this year, the company established a small office in Rangoon, Burma. Just over a month earlier, it was clear that the EU relaxed the economic sanctions against the country.

"We have a person on site to explore the possibility of selling telecom equipment to telecom operators in the country. The population of over 60 million and mobile penetration in less than two percent making Burma an interesting market with huge business opportunities," says Elaine Weidman-Grünevald, head of sustainability at Ericsson.

How Ericsson's operations will be developed is still too early to say. For example, it remains unclear how the government will manage the allocation of mobile licenses to companies.
In addition to Ericsson's other telecom giants are already in there.
"Business decisions will be taken step by step. If we are to launch operations in the country that will also depends on the continued development of politics and human rights situation. It is not a simple decision, but we are very optimistic," says Elaine Weidman - Grünevald.

A delegation of Swedish companies and representatives from the Swedish foreign office are planning to go to Burma in the fall. It is not know the type of business and time they will be going there for.

Another Swedish company, Volvo Group is exploring ways to work in the former military dictatorship. Sales of trucks and construction equipment is already underway there.
"We are clearly interested and looking at opportunities to start production in the country. It is extremely well located between India and China, and is very rich in natural resources. 50 years ago, Burma was one of the world's richest countries," says Volvo Information chief, Marten Wikforss.

A handful of Swedish companies are currently represented in Cuba. Exports last year amounted to about Skr170 million, an increase of 23 percent, according to the Swedish Foreign Ministry.

Sweden sells mainly machinery and engineering products, equipment for telecommunications, transport equipment, processed foods and chemicals.

Ericsson was already established in Cuba in 1994. The company has about 40 employees on there and sells equipment for fixed and mobile telephony and fixed broadband to the state-owned Cuban Telephone Company, ETECSA.

Even Elof Hansson, Sandvik and Alfa Laval has been operating in the communist country since the 1990s.
by Scancomark.se Team

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