Norwegian officials are optimistic on continued economic ties with the Philippines, especially in the renewable energy (RE) and maritime sectors, even as they expressed hope for further ease of doing business in the country. 

This was conveyed by visiting Norway State Secretary Andreas Motzfeldt Kravik and Ambassador of Norway to the Philippines Christian Halas Lyster during an event hosted by the Norwegian ambassador at his residence on April 25,

Lyster told reporters that he predicts a growth in trade and the market in the country, which will "over time attract more Norwegian companies to the Philippines."

According to data provided by the Norwegian Embassy, Philippine imports to Norway showed a steady increase by 23.5 percent to P3.63 billion (kr694,620,005 or $62.94 million) in 2022 from P2.94 billion (kr562,990,343 or $51.01 million) in 2021.

Meanwhile, exports from Norway to the Philippines have surged by 49 percent in 2022, recording P4.81 billion (kr920,647,396 or $83.42 million) compared to P3.23 billion (kr618,482,371 or $56.04 million) in 2021.

He noted the presence of the European Free Trade Agreement (EFTA), which has enabled the wider opportunities for the Philippines to access markets in the region such as Noway, Denmark, Portugal, Sweden, Switzerland, and Austria.

In fact, merchandise trade with the Philippines through the EFTA generated 40 percent more imports in 2022 at P21.6 billion (over 350 million euros) from P15.4 billion (over 250 million euros), while exports climbed by 14.4 percent to P24.7 billion (over 400 million euros) from P21.6 billion (over 350 million euros), according to the Norwegian Embassy.

Most Norwegian firms operating in the country are engaged in the maritime and RE sectors, which the Embassy is eager to continue supporting. There is no set numerical goals for Norway in terms of Norwegian businesses entering the country, said Lyster, emphasizing they would rather push for "quality than quantity." 

"I think the most important thing is to make sure that the companies that actually come here are robust and able to build up a stable business over time. I would rather have the kind of good quality companies coming in that can also contribute to a kind of a good business society here in the Philippines as well," he said.

Notably, Lyster shared that he is hoping to increase Norwegian seafood exports, particularly fresh salmon, to the Philippines given there is a "growing market and a high potential for growth."

"I would say I'm very optimistic about the developments as long as the Philippines is able to have a stable predictable framework for companies, then I think that there will be more companies and more investors coming to the Philippines, but that's the key," he said.

He noted that the big challenge for the Philippines is its  bureaucracy and a "little bit too much red tape." "I know that the government is trying to do something about it but it's still kind of a challenge. It has to be easier," said Lyster.

To resolve this, Lyster emphasized the essence of digitalization in streamlining the permitting and licensing processes, which can enable faster actualization of investments and transparency.

For his part, Kravik, who was the first high-level official from Norway to visit the Philippines post-pandemic from April 25 to 26, said there is a "good springboard now for really advancing our economic collaboration between governments and businesses."

"At least one of the most important things in my visit, [is] to try to, establish the infrastructure that needs to be established in order for us to move forward. Because the Philippines or the Filipino market can be difficult to penetrate from the outside. So it's important for governments such as mine to be effective and to try to help our businesses navigate here in this current context. And I think we've been pretty effective so far, but there's lots of potential," said Kravik.

He cited the vast distance from Norway to the Philippines and differences in culture and ways of doing business that the Embassy and the Norwegian government hope to give ample guidance to their firms before and during their ventures in the country.

Given Norway's strength and significant investments in RE development in the Philippines, Kravik noted that they are trying to facilitate effective talks with Norwegian energy firms to scale their businesses in the Philippines, and helping Filipino agencies pursue the transition to RE.

"The fact that we have this free trade agreement now, the fact that we have a mutual interest in advancing maritime, various maritime industries ... I think the Philippines and Norway are both proponents of the current framework and the current world order. And we want to see that extended. And that requires us to be strategic. And that requires us to meet and talk and try to form and foster even stronger partnerships," Kravik added.