costa rica netherlands country official presentation sep 2010

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Presentation for the Workshop of 25 April in the Hague, the Netherlands

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Page 1: Costa rica netherlands country official presentation sep 2010
Page 2: Costa rica netherlands country official presentation sep 2010

Proven Track Record

Qualified Work Force

Strategic Location

Excellent Business Climate Quality Infrastructure

Quality of Life

INVESTING IN COSTA RICA

Costa Rica’s value proposition:

Page 3: Costa rica netherlands country official presentation sep 2010
Page 4: Costa rica netherlands country official presentation sep 2010

Let’s talk about success stories

INVESTING IN COSTA RICA / PROVEN TRACK RECORD

Page 5: Costa rica netherlands country official presentation sep 2010

0,0

0,5

1,0

1,5

2,0

2,5

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e

Bil

lio

ns

of

US

$

Costa Rica: Total FDI

In the last 10 years our country

has seen a consistent growth

in its foreign direct investment...

INVESTING IN COSTA RICA / PROVEN TRACK RECORD

Source: BCCR

Total FDI inflows have

grown an average of 15.7%

every year since 2001

In 2009, FDI represented

4.5% of the GDP and FDI

per capita reached US$286.

Costa Rica ranks among

the top countries in Latin

America in both indexes

FDI inflows have financed

more than 90% of the

current account deficit in the

last decade

Source: BCCR e: Estimate

2010: US$ 1.75 billion

Page 6: Costa rica netherlands country official presentation sep 2010

Costa Rica has also experienced a consistent growth in its exports...

INVESTING IN COSTA RICA / PROVEN TRACK RECORD

Exports have grown at

an average annual rate

of 7.3% since 2001

Exports of goods

represent 30.1% of the

GDP

Costa Rica exports

4,116 different products

to 135 destination

countries

0

2

4

6

8

10

12

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e

Billi

on

s o

f U

S$

Costa Rica: Total Exports (Goods) 2000 - 2010

2010: US$ 9.48 billion

Source: Ministry of Foreign Trade, PROCOMER, BCCR e: Estimate

Page 7: Costa rica netherlands country official presentation sep 2010

...and a diversification of its exported products

Source: PROCOMER

INVESTING IN COSTA RICA / PROVEN TRACK RECORD

Exports and imports

represent 69% of

GDP

Page 8: Costa rica netherlands country official presentation sep 2010
Page 9: Costa rica netherlands country official presentation sep 2010

30

54 55

Advanced Manufacturing Sector

5

80

95

Service Sector

Year 2000 Year 2008 Year 2009 Year 2000 Year 2008 Year 2009 Year 2000 Year 2008 Year 2009

The number of companies

in this sector is 83% higher

than in 2000

The number of companies

in this sector is 288%

higher than in 2000

The number of companies

in this sector is 1,800%

higher than in 2000

The dynamism of these sectors is evident with

the growth that companies have shown...

8

28 31

Medical Device Sector

INVESTING IN COSTA RICA / PROVEN TRACK RECORD

Page 10: Costa rica netherlands country official presentation sep 2010

Year 2000 Year 2008 Year 2009 Year 2000 Year 2008 Year 2009 Year 2000 Year 2008 Year 2009

The employment in this

sector is 3 times higher

than in 2000

The employment in this

sector is 6 times higher than

in 2000

The employment in this

sector is 27 times higher

than in 2000

Also with the employment level evolution...

4.500

13.266 13.228

Advanced Manufacturing Sector

1.500

8.195

9.376

Medical Device Sector

1.061

23.830

28.416

Service Sector

INVESTING IN COSTA RICA / PROVEN TRACK RECORD

Page 11: Costa rica netherlands country official presentation sep 2010
Page 12: Costa rica netherlands country official presentation sep 2010
Page 13: Costa rica netherlands country official presentation sep 2010
Page 14: Costa rica netherlands country official presentation sep 2010
Page 15: Costa rica netherlands country official presentation sep 2010
Page 16: Costa rica netherlands country official presentation sep 2010
Page 17: Costa rica netherlands country official presentation sep 2010

Population as of July 2009: - 4.62 million

- 34.2% of the population is 15 to 35 years

old

- Annual population growth: 1.9%

- GDP / Capita, 2009: $6,498

Labor force 2009: 2.12 million - Unemployment, 2009*: 7.8%

- Underemployment, 2009*: 7.8%

- Annual labor pool growth: 3.0%

Universal Health Care and Education

System - Pillars of the national stability

- 6% of the GDP is allocated to education

Source: National Institute of Statistics and Census

Our people make the difference

INVESTING IN COSTA RICA / QUALIFIED WORKFORCE

* Mid-Year estimates

Page 18: Costa rica netherlands country official presentation sep 2010

Labor pool will likely reach 2.7 million

people in 2015

Source: National Statistics Institute

Gross participation rate will increase from 46% in 2009 to 52% in 2015

INVESTING IN COSTA RICA / QUALIFIED WORKFORCE

Page 19: Costa rica netherlands country official presentation sep 2010

Costa Rica is considered one of the countries with the highest human development worldwide

Source: United Nations Development Program. Human Development Report 2009

The HDI combines normalized measures of life expectancy, literacy,

educational attainment, and GDP per capita for countries worldwide

INVESTING IN COSTA RICA / QUALIFIED WORKFORCE

0,966

0,956

0,878

0,866

0,865

0,854

0,854

0,840

0,829

0,813

0,807

0,777

Canada

United States

Chile

Argentina

Uruguay

Mexico

Costa Rica

Panama

Malaysia

Brazil

Colombia

Dominican Republic

Human Development Index

Page 20: Costa rica netherlands country official presentation sep 2010

Our educational system is ranked 22th,

the highest in Latin America

INVESTING IN COSTA RICA / QUALIFIED WORKFORCE

Source: United Nations. Human Development Report 2009

Source: World Economic Forum. The Global Competitiveness Report 2010 - 2011

66,0

82,0

90,0

91,9

92,7

92,8

93,3

93,4

93,4

94,1

95,9

96,5

97,6

97,9

97,9

99,0

99,0

99,0

99,0

India

El Salvador

Brazil

Malaysia

Colombia

Mexico

China

Panama

Philippines

Thailand

Costa Rica

Chile

Argentina

Uruguay

Spain

Ireland

United States

Canada

Germany

Adult Literacy Rate Rate (%)

128

121

120

107

103

100

90

80

69

67

66

53

39

26

23

22

18

11

5

Panama

El Salvador

Mexico

Spain

Brazil

Chile

Argentina

Colombia

Philippines

Uruguay

Thailand

China

India

United States

Malaysia

Costa Rica

Germany

Ireland

Canada

Quality of the Educational System Rank

Page 21: Costa rica netherlands country official presentation sep 2010

Tertiary (University and

Community Colleges)

• Begins at kindergarten

• Total of 6 grades

• Students usually

graduate at age 12

• More than 90% of

institutions are public

In public education, there are

two systems:

• Academic Curricula: 5 years

(7th to 11th grades), students

usually graduate at age 17

• Technical Curricula: 6 years

(7th to 12th grades)

specializing and graduating

with a technical degree,

students usually graduate at

age 18

• Includes two-year

technical degrees

• 4-year bachelor’s

degree programs

• Master’s, PhD,

Specialization

programs

INVESTING IN COSTA RICA / QUALIFIED WORKFORCE

Education is free and mandatory since 1870

Page 22: Costa rica netherlands country official presentation sep 2010

Technical High School

Graduates (thousands)

Source: Ministry of Public Education

Technical High Schools 89 institutions

Almost 66,000 students enrolled

48 different specialties in 3 areas

of expertise (services, industrial, and agriculture)

Technical High School begins in the fourth year of High School

Students take the regular academic program + technical training

Technical High Schools have one more year than regular academic institutions (Total = 6 years)

Some specialties: Accounting, Architectural

Drawing, Banking & Finance, Computer Programming, Electromechanics, Electronics, Graphic Design, Industrial Electronics, Industrial Maintenance, Network Informatics, Precision Mechanics, Software Development Informatics

INVESTING IN COSTA RICA / QUALIFIED WORKFORCE

Page 23: Costa rica netherlands country official presentation sep 2010

University Graduates (thousands)

INVESTING IN COSTA RICA / QUALIFIED WORKFORCE

Universities: Total of 59: 5 public, 54 private Public Universities:

• Universidad de Costa Rica • Instituto Tecnológico de Costa Rica • Universidad Nacional • Universidad Estatal a Distancia • Universidad Técnica Nacional

Private Universities: 67.6% of diplomas granted in 2009

• ULACIT • Universidad Creativa de Costa Rica • Universidad Fidélitas • Universidad Hispanoamericana • Universidad Internacional de las

Américas • Universidad Latina • Universidad Veritas • UCIMED, UNIBE (Specialized in

Medical and Life Sciences)

INCAE (Harvard University): #2 Business School in Latin America (América Economía, 2010)

Source: CONARE

Page 24: Costa rica netherlands country official presentation sep 2010

Strong academic background in public universities

INVESTING IN COSTA RICA / QUALIFIED WORKFORCE

Universidad de Costa Rica (UCR): Established in 1940. Largest university in the country

- 7 campuses and 35,000 active students - Approximately 4,500 diplomas granted every year in more than 500 careers - Engineering School: Mechanical, Electrical, Industrial, etc. - Strong background in Life Sciences (academic formation and research labs) - Other careers including: Accounting, Business, Economics, Informatics, etc.

Instituto Tecnológico de Costa Rica (TEC): Established in 1972

- 4 campuses and 8,000 active students - Approximately 1,500 diplomas granted every year in 31 different careers, including:

Biotechnology, Business, Industrial Maintenance, Electromechanical, Electronic, Computer, and Environmental Engineering

Universidad Nacional (UNA) : Established in 1973

- 3 campuses and 15,000 active students - Approximately 2,500 diplomas granted every year in 50 different careers - Careers such as Business, Biology, Computer, Economics, Industrial Chemistry, and

Systems Engineering

Universidad Técnica Nacional (UTN). Established in 2009

- Main campus conveniently located 1.5 km from Coyol in Alajuela - 5,000 students enrolled in 2010 - 30 different technical careers including: Accounting, Business, Electromechanics,

Electronics, Information Technology, Production Supervision, Quality Assurance, and Industrial Production

Page 25: Costa rica netherlands country official presentation sep 2010

51,349 people trained in Technical

Areas by INA in 2009

INVESTING IN COSTA RICA / QUALIFIED WORKFORCE

Specialized Technician

5%

Technician 42%

Qualified Worker

53%

2009: US$110 million

invested in training

51,349 people in

Materials Technology,

Electrical ,and

Metalwork, among

others areas

2009: Over US$21

million allocated to

English training, and

training in the

Information and

Communication

Technology fields

Source: National Training Institute, 2009

Page 26: Costa rica netherlands country official presentation sep 2010

Now we are taking actions to speak to the world...

2017: 100% of high school graduates B1 to C1.

2009: 25,000 people at B1 to C1 level.

2012: 40,000 people at B1 to C1 level.

Goals

* Common European Framework.

Costa Rica Multilingual: a comprehensive program to develop bilingual capabilities in the country’s labor market.

Solid Results

13,000 people graduated from Conversational

English Courses (INA and CONARE, 2009)

20,000 people enrolled in conversational

English courses in language academic institutes (2009)

US$21million allocated to English and IT

Training in the four main universities, and INA (CONARE and INA, 2009)

500 new English language professionals entered

the market in 2009 to improve the population’s skills

INVESTING IN COSTA RICA / QUALIFIED WORKFORCE

Page 27: Costa rica netherlands country official presentation sep 2010

Academic Collaboration

Technical English

Program for Service

Centers

Developed by INA and

contact center companies in

2005.

Current results: 879

graduated in 2009, and 1,125

enrolled in 2010.

1,000 additional graduates

expected every year.

INVESTING IN COSTA RICA / QUALIFIED WORKFORCE

Page 28: Costa rica netherlands country official presentation sep 2010

Computer Engineering –

new career

Developed by the Instituto

Tecnológico de Costa Rica,

and the electronic and

software companies.

Current results: new career

started in 2009, first 49

students enrolled. Other 64

students enrolled in 2010

Academic Collaboration

INVESTING IN COSTA RICA / QUALIFIED WORKFORCE

Technical English

Program for

Service Centers

Page 29: Costa rica netherlands country official presentation sep 2010

Academic Collaboration

Computer

Engineering

Technical High Schools

(secondary)

Service Center Executive (new

specialization area)

Launched in 2006.

Current results: 273 students

graduated in 2009.

Over 300 additional graduates

expected every year.

INVESTING IN COSTA RICA / QUALIFIED WORKFORCE

Technical English

Program for

Service Centers

Page 30: Costa rica netherlands country official presentation sep 2010

Academic Collaboration

Technical High Schools

(secondary)

Bilingual Accounting: New

specialization area started in

2009. 40 students currently

enrolled.

INVESTING IN COSTA RICA / QUALIFIED WORKFORCE

Computer

Engineering

Technical English

Program for

Service Centers

Service Center

Executive (new

specialization area)

Page 31: Costa rica netherlands country official presentation sep 2010

Academic Collaboration

Technical High Schools

(secondary)

Bilingual Information

Technologies (new

specialization area)

Focus areas: programming, network,

and technical support.

Implementation in 2010: 40 students

enrolled.

Bilingual Accounting

(new specialization area)

INVESTING IN COSTA RICA / QUALIFIED WORKFORCE

Computer

Engineering

Technical English

Program for

Service Centers

Service Center

Executive (new

specialization area)

Page 32: Costa rica netherlands country official presentation sep 2010

Academic Collaboration

Adobe Flash – training

program (101)

Launched in 2008.

Current results: first 100 graduates

and direct hires by avVenta

(Interactive Agency with operations

in Costa Rica).

150 additional graduates expected

every year to meet the rest of the

industry demand.

Bilingual Information

Technologies (new

specialization area)

INVESTING IN COSTA RICA / QUALIFIED WORKFORCE

Bilingual Accounting

(new specialization area)

Computer

Engineering

Technical English

Program for

Service Centers

Service Center

Executive (new

specialization area)

Page 33: Costa rica netherlands country official presentation sep 2010

Academic Collaboration

Adobe Flash

training program

(101)

Tools for Success

English scholarships for

technical high school students

from low income families

Current results:

2010: 304 follow-up

scholarships, 180 new

scholarships

INVESTING IN COSTA RICA / QUALIFIED WORKFORCE

Bilingual Information

Technologies (new

specialization area)

Bilingual Accounting

(new specialization area)

Computer

Engineering

Technical English

Program for

Service Centers

Service Center

Executive (new

specialization area)

Page 34: Costa rica netherlands country official presentation sep 2010

Employer-sponsored workers’ association:

operates as a credit union, providing multiple

benefits to the employees, who can participate

voluntarily

Both employer and employees contribute to the

fund

They are not sector-wide bargaining instances,

unlike American unions

97% of the companies in the private sector

have the “Asociación Solidarista”. This high

level of participation is a particular tendency in

Costa Rica

There are some similarities to a 401(k)

retirement plan, without the stock options

Stable employer-employees environment:

“Asociación Solidarista”

Source: World Economic Forum.

The Global Competitiveness Report 2010 - 2011

INVESTING IN COSTA RICA / QUALIFIED WORKFORCE

Costa Rica ranks 12th, Germany ranks 18th,

United States ranks 33th, Colombia ranks 46th,

Panama ranks 59th, Mexico ranks 74th, and

Spain ranks 103th

Labor-employer relations in the country are:

1 = Generally confrontational

7= Generally cooperative

Spain

Mexico

Panama

Colombia

United States

Germany

Costa Rica

4,0

4,3

4,5

4,6

4,9

5,3

5,6

Cooperation in labor-employer relations Score

Page 35: Costa rica netherlands country official presentation sep 2010
Page 36: Costa rica netherlands country official presentation sep 2010

Source: Directorate General of Civil Aviation, July 2010

Costa Rica is just a few hours

away from North America...

Juan Santamaría Intl. Airport:

124 daily flights in July, 2010

Daniel Oduber Intl. Airport :

10 daily flights in July, 2010

INVESTING IN COSTA RICA / STRATEGIC LOCATION

City Flight Frequency Flight Time

(hrs:min)

Atlanta, GA Daily 4:15

Charlotte, NC Daily 4:10

Chicago, IL Once a week 6:50

Dallas, TX Daily 4:20

Denver, CO Daily 5:10

Fort Lauderdale, FL Daily 3:00

Houston, TX Daily 3:35

Los Angeles, CA Daily 5:50

Miami, FL Daily 2:50

New York, NY Daily 5:05

Newark, NJ Daily 5:15

Orlando, FL Daily 3:15

Philadelphia, PA Once a week 5:00

Phoenix, AZ Once a week 5:25

Toronto, Canada Daily 6:00

Page 37: Costa rica netherlands country official presentation sep 2010

Source: Directorate General of Civil Aviation, July 2010

...and there is also access to the rest

of the world

INVESTING IN COSTA RICA / STRATEGIC LOCATION

City Flight Frequency Flight Time

(hrs:min)

Bogota, Colombia Daily 2:10

Buenos Aires, Argentina Three times a week 8:00

Caracas, Venezuela Daily 2:50

Frankfurt, Germany Once a week 13:00

Guatemala, Guatemala Daily 1:30

La Havana, Cuba Daily 2:25

Lima, Peru Daily 3:45

Madrid, Spain Daily 10:25

Managua, Nicaragua Daily 1:00

Mexico DF, Mexico Daily 3:00

Panama, Panama Daily 1:15

Quito, Ecuador Daily 2:10

San Pedro Sula,

Honduras Daily 1:35

San Salvador,

El Salvador Daily 1:20

Santiago, Chile Daily 8:50

Santo Domingo,

Dominican Republic Four times a week 2:50

Tegucigalpa, Honduras Daily 1:55

Juan Santamaría Intl. Airport:

124 daily flights in July, 2010

Daniel Oduber Intl. Airport :

10 daily flights in July, 2010

Page 38: Costa rica netherlands country official presentation sep 2010

Shipping rates from Costa Rica are

very competitive

Source: Expeditors, 2010

Note: Rates of international ocean freight from Latin America to US are East Coast based and from China to US are West Coast based.

INVESTING IN COSTA RICA / STRATEGIC LOCATION

$0

$1.000

$2.000

$3.000

$4.000

$5.000

$6.000

$7.000

Costa Rica Mexico Brazil China

Cost of shipping 1x40 container to United States

2007 2008 2009 2010

Page 39: Costa rica netherlands country official presentation sep 2010

Your company will have exceptional access to the world’s greatest markets

INVESTING IN COSTA RICA / STRATEGIC LOCATION

Market access: 2.3

billion people, more

than 68% of

worldwide GDP

Free Trade

Agreements: 90% of

Costa Rican export of

goods

Investment Promotion

and Protection

Agreements with 15

countries

UNITED STATES

CANADA

MEXICO

CENTRAL

AMERICA

PANAMA

DOMINICAN

REPUBLIC

CARICOM

CHILE

EUROPEAN

UNION

ASIA

CHINA

SINGAPORE

Duty free access

Preferential access through the GSP

Page 40: Costa rica netherlands country official presentation sep 2010

Singapore

Chile

United States

Malaysia

Costa Rica

China

El Salvador

Panama

Mexico

Honduras

India

Colombia

Argentina

6.06

5.06

5.03

4.71

4.45

4.32

4.16

4.12

4.04

3.98

3.81

3.72

3.64

Enabling Trade Index

Costa Rica ranks 2nd among Latin American

countries in the Enabling Trade Index

“Costa Rica is an example of best

practices in market access, thanks to

moderate non-tariff measures and

relatively simple tariff structure.”

(World Economic Forum, 2010)

(1-7) score, where 7 is the highest score

Source: World Economic Forum. Global Enabling

Trade Report, 2010

INVESTING IN COSTA RICA / STRATEGIC LOCATION

Page 41: Costa rica netherlands country official presentation sep 2010
Page 42: Costa rica netherlands country official presentation sep 2010

GDP per capita growth portrays a widespread

perception of economic prosperity

INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE

Source: BCCR e: Estimate

GDP per capita is one of

the highest in Latin

America

GDP per capita in US$ in

2009 was almost three

times as much as it was

in 1991

GDP per capita will reach

more than US$7,000 in

2011 (S&P, June 2009)

Poverty has been

reduced 50% in the last

25 years

4.058 4.095 4.137 4.235

4.427

4.682

5.208

5.997

6.706 6.498

6.909

3.000

3.500

4.000

4.500

5.000

5.500

6.000

6.500

7.000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e

US

$/i

nh

ab

itan

t

Page 43: Costa rica netherlands country official presentation sep 2010

We have a strong and world renowned

tradition of peace and stability

FOTO: GLORIA CALDERÓN

INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE

Army abolished in 1948

Over 120 years of democracy

Presidential system

3 independent powers

4 year-term with possibility of reelection

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

Uruguay

Chile

Costa Rica

Panama

El Salvador

Argentina

Brazil

Honduras

Nicaragua

Guatemala

Mexico

Paraguay

Ecuador

Peru

Bolivia

Venezuela

Colombia

Political Stability (Latin American ranking)

Source: Worldwide Governance Indicators, World

Bank. 2009

Page 44: Costa rica netherlands country official presentation sep 2010

Our democracy is recognized by

international indicators

FOTO: GLORIA CALDERÓN

INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE

Source: Democracy Index 2008 (Next update 2011). The Economist

1

6

11

12

18

19

23

27

32

35

41

55

56

60

67

68

77

82

Sweden

Finland

Canada

Ireland

United States

Czech Republic

Uruguay

Costa Rica

Chile

India

Brazil

Mexico

Argentina

Colombia

El Salvador

Malaysia

Philippines

Singapore

Democracy Index (Position)

Page 45: Costa rica netherlands country official presentation sep 2010

Mexico City, Mexico: 3rd

Monterrey, Mexico: 11th

San Jose, Costa Rica: 8th

Panama City, Panama: 6th

Montevideo, Uruguay: 10th

Bogota, Colombia: 7th

Sao Paulo, Brazil: 2nd

Santiago, Chile: 1st

San José ranks among the top ten cities in

Latin America for business

Source: United Nations, 2008

Rio de Janeiro, Brazil: 4th

Buenos Aires, Argentina: 5th

Lima, Peru: 9th Brasilia, Brazil: 12th

Source: Urban Competitiveness Index,

América Economía. 2010

INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE

It comprises the following dimensions: Social & Political Framework

Economic Framework & dynamism

Services to Companies

Infrastructure & Physical

Connectivity

Human Capital

Environmental Sustainability

Brand Power

Page 46: Costa rica netherlands country official presentation sep 2010

Note: This index measures the countries’ insecurity based on homicide rates as well as other factors

affecting corporate security, and the safety of foreign business executives

2 2 2

3 3 3 3 3 3 3

4 4 4 4 4 4 4

5

Costa Rica

Chile

Uruguay

Panama

Argentina

Dominican Republic

Ecuador

Peru

Paraguay

Nicaragua

Bolivia

Colombia

Brazil

Guatemala

Mexico

El Salvador

Honduras

Venezuela

Costa Rica ranks 1st in the Latin Security Index

(1-5) score, where 1 is the best score possible, 5 the worst

Source: Latin Business Chronicle (FTI Consulting), 2010.

...and Costa Rica is the safest country in Latin America

INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE

Page 47: Costa rica netherlands country official presentation sep 2010

Foreigners have equal rights and

obligations

Foreigners have no limits to

property handling and they

can conduct business

activities freely

Free capital movement, no

foreign exchange controls

INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE

Source: World Economic Forum. The Global Competitiveness Report 2010 - 2011

4,4

4,5

4,6

4,6

4,8

4,9

5,1

5,3

5,3

5,3

5,4

5,6

5,6

5,7

5,8

5,8

6,0

6,1

Philippines

Colombia

India

Brazil

Thailand

Malaysia

United States

El Salvador

Germany

Argentina

Spain

Mexico

Costa Rica

Panama

Ireland

Canada

Chile

Uruguay

Prevalence of foreign ownership Score

Foreign ownership of companies in the

country is:

1=rare and limited

7=prevalent and encouraged

Page 48: Costa rica netherlands country official presentation sep 2010

INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE

It is guaranteed by the National

Constitution

Costa Rica ranks 2nd in IPRI in Latin America;

protection of intellectual property is a priority

123

119

118

117

106

90

88

87

85

78

73

71

68

64

56

51

50

34

Venezuela

Bolivia

Paraguay

Nicaragua

Ecuador

Guatemala

Peru

Argentina

Dominican Republic

Honduras

Mexico

El Salvador

Colombia

Brazil

Panama

Uruguay

Costa Rica

Chile

International Property Rights Index (IPRI)

Latin American Ranking

Source: Property Rights Alliance 2010

Page 49: Costa rica netherlands country official presentation sep 2010

INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE

It is guaranteed by the National

Constitution

Modern protection mechanisms

meet international standards

– IPR protections – WTO & bilateral FTAs

– CAFTA’s IP chapter further enhances

Costa Rica’s Intellectual Property Rights

– Enforcement of IPR: civil, administrative,

and criminal proceedings

– Supported by more than 15 international

treaties and 6 national laws

Costa Rica ranks 2nd in IPRI in Latin America;

protection of intellectual property is a priority

123

119

118

117

106

90

88

87

85

78

73

71

68

64

56

51

50

34

Venezuela

Bolivia

Paraguay

Nicaragua

Ecuador

Guatemala

Peru

Argentina

Dominican Republic

Honduras

Mexico

El Salvador

Colombia

Brazil

Panama

Uruguay

Costa Rica

Chile

International Property Rights Index (IPRI)

Latin American Ranking

Source: Property Rights Alliance 2010

Page 50: Costa rica netherlands country official presentation sep 2010

INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE

It is guaranteed by the National

Constitution

Modern protection mechanisms

meet international standards

Protected areas include

– Copyrights

– Trade Marks

– Encrypted Program-Carrying Satellite Signals

– Industrial Designs

– Patents

– Geographical Indications

Costa Rica ranks 2nd in IPRI in Latin America;

protection of intellectual property is a priority

123

119

118

117

106

90

88

87

85

78

73

71

68

64

56

51

50

34

Venezuela

Bolivia

Paraguay

Nicaragua

Ecuador

Guatemala

Peru

Argentina

Dominican Republic

Honduras

Mexico

El Salvador

Colombia

Brazil

Panama

Uruguay

Costa Rica

Chile

International Property Rights Index (IPRI)

Latin American Ranking

Source: Property Rights Alliance 2010

Page 51: Costa rica netherlands country official presentation sep 2010

INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE

It is guaranteed by the National

Constitution

Modern protection mechanisms

meet international standards

Protected areas include

IPRI measures 3 core components

– Legal and Political Environment

– Physical Property Rights

– Intellectual Property Rights

Costa Rica ranks 2nd in IPRI in Latin America;

protection of intellectual property is a priority

123

119

118

117

106

90

88

87

85

78

73

71

68

64

56

51

50

34

Venezuela

Bolivia

Paraguay

Nicaragua

Ecuador

Guatemala

Peru

Argentina

Dominican Republic

Honduras

Mexico

El Salvador

Colombia

Brazil

Panama

Uruguay

Costa Rica

Chile

International Property Rights Index (IPRI)

Latin American Ranking

Source: Property Rights Alliance 2010

Page 52: Costa rica netherlands country official presentation sep 2010

Paying taxes in Costa Rica

Manufacturing:

* If the company establishes its operation in a less developed area the full / partial income tax exemption period increases to 12 / 6 years with

the possibility of renewing this exemption period multiple times upon reinvestment.

* Minimum level of employment (100 workers) and minimum required investment in fixed assets (US$10,000,000) to be completed in 8 years.

Services:

* Minimum required investment in fixed assets: US$150,000 (inside free trade industrial park) and US$2,000,000 (outside free trade industrial

park) to be completed in 36 months. Required investment in less developed areas decreases to US$100,000 and US$500,000 respectively.

* At least 50% of services must be exported.

INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE

Costa Rica taxes/others Statutory Free Trade Zone Regime

Corporate income tax 30%

Free Zone holiday for full / partial income tax exemption for 8 / 4

years* with the possibility of renewing this exemption period

multiple times upon reinvestment

Custom duties on imports/exportsVaries depending

on product100% exemption

Remittances abroad tax 15% 100% exemption

Sales tax 13% 100% exemption on local purchase of goods/services

Stamp duty 1% 100% exemption

Property taxes 0.25% 100% exemption for a 10 year period

Property transfer tax 1.5% 100% exemption for a 10 year period

Municipal patent license 0.3% 100% exemption for a 10 year period

Withholding tax on royalties, fees, dividends up to 25% 100% exemption

Tax on interest income 8% 100% exemption

Limitation on expats in country

Tax on expats

Job creation and training grants

None

All Costa Rican residents and non-residents working within the Costa Rican

Territory under a labor relationship are subject to withholdings and social security

contributions. Personal income tax goes up to 15%.

Free customized technical training available through INA

Page 53: Costa rica netherlands country official presentation sep 2010

INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE

Distance from San José International Airport (SJO) is specified for each park.

There are several industrial parks and business

centers located in the Greater Metropolitan Area

Page 54: Costa rica netherlands country official presentation sep 2010
Page 55: Costa rica netherlands country official presentation sep 2010

Costa Rica offers a solid utilities

infrastructure...

Electricity

- 95% of electricity is generated from renewable sources (hydroelectric, geothermal, biomass, and wind)

- Competitive electricity rates (US$ / kWh)

INVESTING IN COSTA RICA / QUALITY INFRASTRUCTURE

Period Rate

Peak Period 0.07 – 0.11

Valley Period 0.036 – 0.044

Night Period 0.025 – 0.035

Peak Period: 10:01 AM – 12:30 PM, 05:31 PM – 08:00 PM

Valley Period: 06:01 AM – 10:00 AM, 12:31 PM – 05:30 PM

Night Period: 08:01 PM – 6:00 AM

Source: ARESEP, April 2010

Page 56: Costa rica netherlands country official presentation sep 2010

Electricity availability is assured

Country’s current capacity to be doubled

in 2016 (up to 4,018 MW)

Private production of electricity will

increase in more than 250 MW during

the next three years

Several industrial parks have

redundancy through the connection to a

second electrical substation within the

national interconnected system

INVESTING IN COSTA RICA / QUALITY INFRASTRUCTURE

Source: World Economic Forum. The Global Competitiveness Report 2010 - 2011

Quality of electricity supply is:

1 = worse than in most other countries

7= meets the highest standards in the world

3,1

3,4

3,8

3,9

5,1

5,1

5,2

5,3

5,3

5,4

5,7

5,8

5,9

6,0

6,2

6,2

6,6

6,8

India

Philippines

Argentina

Mexico

Brazil

El Salvador

Colombia

China

Panama

Croatia

Costa Rica

Uruguay

Spain

Chile

Ireland

United States

Canada

Germany

Quality of electricity supply Score

Page 57: Costa rica netherlands country official presentation sep 2010

Costa Rica offers a solid utilities

infrastructure...

Telecommunications:

Redundant fiber optic submarine cables (Maya & Arcos; Pacific Global Crossing)

Satellite and terrestrial microwave network in place to meet demand in

fixed, mobile and Internet services New multinational players are expected to enter the market in 2010,

providing private networks, Internet and mobile phone services

Abundant water supply:

Industrial parks for manufacturing facilities can provide more than 350,000

gallons of water per day

INVESTING IN COSTA RICA / QUALITY INFRASTRUCTURE

Page 58: Costa rica netherlands country official presentation sep 2010

Public infrastructure concessions move in a positive direction

Juan Santamaria

International Airport

was remodeled in 2008.

New improvements are

under way

Caldera Highway

connects the GMA with

the Pacific Port .

Recently inaugurated

Ongoing plans to

remodel the Limon and

Moin ports (Atlantic

Coast)

INVESTING IN COSTA RICA / QUALITY INFRASTRUCTURE

Source: Ministry of Public Infrastructure and Transportation and

National Council for Public Concessions, June 2010

Page 59: Costa rica netherlands country official presentation sep 2010

Juan Santamaría

International Airport

160 km

(99.4 miles) 78 km

(48.1 miles)

Port Limon – Moin

-2009: 748,029 TEUS

- Ranks 15 in Latin

America by volume

Port Caldera

-2009: 127,658 TEUS

- Ranks 38 in Latin

America by volume

TEU: Twenty foot equivalent unit

Source: Latin America’s Top 50 Ports Report, 2010. Latin Business Chronicle based on

data from ECLAC

Costa Rica has ports in the Caribbean and Pacific coasts

INVESTING IN COSTA RICA / QUALITY INFRASTRUCTURE

Page 60: Costa rica netherlands country official presentation sep 2010
Page 61: Costa rica netherlands country official presentation sep 2010

San José ranks fourth in quality of life in Latin America

Source: The Economist Intelligence Unit, 2010

The country’s capital maintains a

leadership over its competitors,

such as China, Brazil, Panama,

Mexico, India, and Colombia

City / Country Rank

Vancouver, Canada 1

Minneapolis, US 41

San Francisco, US 52

New York, US 56

Buenos Aires, Argentina 61

Santiago, Chile 64

Montevideo, Uruguay 66

San Juan, Puerto Rico 67

San Jose, Costa Rica 72

Shangai, China 83

Sao Paulo, Brazil 92

Panama City, Panama 98

Mexico City, Mexico 105

New Delhi, India 113

Bogota, Colombia 121

INVESTING IN COSTA RICA / QUALITY OF LIFE

Page 62: Costa rica netherlands country official presentation sep 2010

(0-100) score, being 100 the perfect

score.

Costa Rica ranks 3th in the

world in environmental

performance

INVESTING IN COSTA RICA / QUALITY OF LIFE

Costa Rica has a strong commitment with environmental protection

Source:

Yale and Columbia Universities, Environmental Performance Index 2010

Iceland

Switzerland

Costa Rica

Sweden

Colombia

Chile

Germany

Panama

Mexico

Malaysia

United States

93,5

89,1

86,4

86

76,8

73,3

73,2

71,4

67,3

65

63,5

Environmental Performance Index

Page 63: Costa rica netherlands country official presentation sep 2010

Great Potential

INVESTING IN COSTA RICA / GREAT POTENTIAL

5th Global Services Location in America Global Services Locations Index, 2009, AT Kearney

Costa Rica: A Central American success story in

competitiveness T Global Competitiveness Report 2008-2009, World Economic Forum

1st High-Tech exporter of Latin America World Development Indicators 2010, World Bank

4th High-Tech exporter of the world World Development Indicators 2010, World Bank

2nd Best Country of Latin America Variables measured: Education, Health, Quality of Life, Economic Dynamism, and Political Environment.

Ranking of the World's Best Countries 2010, Newsweek.

Page 64: Costa rica netherlands country official presentation sep 2010

INVESTING IN COSTA RICA

Great Potential

Biggest Foreign Direct Investments in Costa Rica are High Tech and Medical

Supplies companies (INTEL and St. Jude Medical) Aeronautic (Tico Electronics)

High potential on alternative energy technology . Solar Panels and eolic turbines

parts , organic fertilizers

Certified buildings under (LEED) program is one of the most widely used systems in

the world for measuring the environmental impact of a building project, along with

the building's operational performance. The US Green Building Council (USGBC) is

an international organization dedicated to developing and refining green building

techniques and performance.

Biotecnology, clean technology, renewbable energy, entertaiment are sectors for the

new FDI ‘s step.

Ad Astra, Electrically-powered plasma rockets could cut travel times for missions

across the solar system. One concept championed by Chang-Diaz involves a 39-day

mission to Mars, but it assumes leaps in nuclear energy production in space.

Page 65: Costa rica netherlands country official presentation sep 2010

Why Costa Rica?

Currently, more than 200 multinational companies are

operating in Costa Rica

Exceptionally talented and bilingual young workforce. On

average 95% of the employees in multinational companies are

local

Preferential access platform to 1/3 of the world’s population,

and 2/3 of the worldwide GDP. 90% of goods exported through

Free Trade Agreements

INVESTING IN COSTA RICA / GREAT POTENTIAL

Page 66: Costa rica netherlands country official presentation sep 2010

Why Costa Rica?

Excellent business climate based on a renowned democratic

tradition, economic & political stability

Solid infrastructure. 95% of energy is renewable. Redundant

telecommunications access

Quality of life in Costa Rica is high. Safest country in Latin

America, and one of the top 3 environmental performers of the

world

INVESTING IN COSTA RICA / GREAT POTENTIAL

Page 67: Costa rica netherlands country official presentation sep 2010

Contact Us

Toll free number from US: 1-866-577-4783 [email protected] Ph: (506) 2201-2800 Fax: (506) 2201-2867 [email protected] Ph: (070) 354 0780 Fax: (070) 358 4754

CINDE Costa Rica

Embassy of Costa Rica to

The Netherlands

www.cinde.org

INVESTING IN COSTA RICA / CINDE / CONTACT

Page 68: Costa rica netherlands country official presentation sep 2010

Thank You !

INVESTING IN COSTA RICA