How to do Business in Brazil (presentations available)

By Bhamika Bhudia, Contributing Reporter

To discover the key to do business in Brazil, Norwegian business people gathered at the Marriot Hotel in Copacabana on February 16th. Organized by Innovation Norway in cooperation with NBCC, the event drew an array of business people from Norway to observe presentations from those already operating successful companies in Brazil, as well as local experts in the law, finance and shipping industries.

The conference began with an opening speech from NBCC chairman Johnar Olsen, stressing Brazil’s enormous opportunities in the current economic climate, pointing out that “Brazil was the last to enter the recession and the first to leave… and while other countries are in debt, Brazil is booming.” In addition he gave an overview on its current commercial status, including the 1.5 million jobs created this year and its ever growing relationship with China, now its leading trade partner.

Norway’s Vice Minister of Trade and Industry, Rikke Lind, added that Brazil now ranks eighth in the world in terms of GDP and is predicted to climb to seventh place next year. “Brazil used to be a regional power with global aspirations, today it is a global power with regional interests,” Lind said.

During her speech, she announced the Norwegian Ministry of Foreign Affairs plan to launch a Brazilian strategy in April to make business dealings between the two nations easier. “The key to these commercial relations is that they are not competing with each other, they are complementing,” she added. From personal experience, Lind pointed out three golden rules to doing business in Brazil: “work hard, learn the language and build personal relations.”

Hans Martin Vikdal, president of Innovation Norway welcomed participants from the business delegation, and Turid Eusibio, Norway’s Ambassador in Brazil, gave a historical overview of Brazil since its freedom from dictatorship. While highlighting existing issues such as poor ranking on international corruption lists, inequality and bureaucracy, Eusebio emphasized that tremendous progress has been made and Brazil is today “a land of potential prosperity.”

The partner of local law firm Veirano lawyers, Ronaldo Veirano, shared his expertise and experiences representing foreign corporations and advised the audience that “patience, persistence and flexibility” are mandatory to get past the bureaucracy. He stressed that cultural differences need to be taken into consideration as business is conducted differently in Brazil. One of his main suggestions: “Do not to take ‘no’ from the government as a definite answer because there may be a way to get around it, which doesn’t involve illegal payments,” he added.

A rundown of rules and regulations concerning local content in the oil industry was given by Business Development Manager of DNV, Sergio Garcia. The success stories of various companies now operating in Brazil were shared, including those of Statoil, Subsea7, DnB Nor, ASAP Ronic, Norsk Hydro, Norskan Offshore, GIEK and Eksportfinans. In all cases, information of problems faced, how they were overcome and general experiences were exposed.

Experts also gave insights and detailed accounts of the country’s human resources, visa, international finance and customs policies. Erik Hannisdal, Managing Partner of Inventure Management, broke down the cultural differences between Norwegians and Brazilians and advised on the happy medium required to make successful business dealings in the country.

Contrasting the Norwegians’ ability to trust easily with the Brazilians’ inability to trust without face-to-face contact, Hannisdal recommended adapting the way business is conducted in order to work together. “You can’t change the culture but you can change how you deal with it,” he emphasized.

Links to the presentations:

Sergio Garcia DNV_Local Content
Johan Mikkelsen_Statoil in BR working with key contractors
Jose Fernandes Subsea7_HR Requirements and Challenges
Aasmund Skaar_DnBNOR and the Brazilian Market
Camila Vianna KINCAID_Establishing Business
Silvio Noronha&Thomas Richardson ASAP RONIC_Customs Clearance
Tor-Ove Horstad_HYDRO Past and Future
Wenche Nistad GIEK_Guaranteeing Exports
Olav Einar_EKSPORTFINANS_Competitive Financing from Norway
Erik Hannisdal INVENTURE_Cultural differences