Norway is called the Land of the Midnight Sun, but not the Land of the Setting Sun. Based on the information available, there is no commonly known state specifically called the "Land of the Setting Sun."
The provided text refers to Norway as the "Land of Sunset" or, more accurately, "Land of the Midnight Sun," because in the summer, the sun doesn't set for extended periods in areas north of the Arctic Circle. This is due to the Earth's tilt and its orbit around the sun. Oslo, Norway's capital, experiences short days in winter, but this doesn't define it as the "Land of the Setting Sun."
Therefore, there's no widely accepted answer that fits the question "Which state is known as land of setting sun?"