Today there are over 200 Swedish companies present in the Czech Republic, mostly through subsidiaries. However the Swedish footprint in the Czech Republic is strong and overall, over 1000 Swedish companies are doing business in the Czech Republic. What most companies find attractive with the market is the geographical location, a strong industrial base and cost-efficient, yet qualified, labour. The Czech export to Sweden is strong and the turnover was estimated to EUR 3.8 billion 2017, in line with the positive exponential trend.
The automotive industry is a key sector in the country and amounts today to one-fourth of the country’s total production and export. The Czech Republic is a popular destination for foreign investments and many international companies use the market for production and as their regional headquarters. Sweden is the 10th largest investor in the Czech Republic in terms of FDI.
The Czech Republic is one of the most industrialized countries in Europe today. The country is fully integrated in EU and various international organizations such as WHO, NATO, IMF and EBRD. It has attracted large amount of foreign direct investment (FDI) and the country's investment grade rating from various international credit-rating agencies proves the economic stability of the Czech Republic. Today there are 2.9 million registered companies in the country and the majority is small-medium sized companies. The business climate is internationally recognized and the services industry has seen a particular rise in the last few years. The basic industry has accelerated up the value chain and transformed into high quality and high technology production, agriculture is today only representing a small fraction of the Czech economy.
When becoming a member of the EU in 2004 the economy experienced further growth, for example increased trade with Sweden and the other EU countries. Swedish export is mainly engineering products (40 percent), followed by iron, steel and chemical products. The Czech market is expanding and most prominent is the automotive industry that is growing faster than the world as a whole. The world market grew by 4.5 % year on year while domestic automotive production grew by 8.2 %.
The prospects for Swedish companies to grow on the Czech market are remarkably good, especially in the automotive industry. More than half of the world’s top 100 Tier 1 suppliers is based in the Czech Republic and Swedish companies have strong prospects to present their solutions to Czech distributors. However, not only automotive sector is important source of business opportunities in the Czech Republic. Sweden and the Czech Republic share many factors in common in terms of population size, educational skills and a qualified workforce, which improves the business climate and the prospects for companies in various sectors to grow in the country. In recent years, Czech Republic has become technology hub in CEE region with strong focus on digitization, automatisation, innovative solutions in all sectors as well as start-up center in the wider region.