Download - Colombia embassy presentation_250412
COLOMBIA
Ambassador of Colombia to The Netherlands
Eduardo Pizarro Leongómez
Invest in Colombia: Balance, perspectives and opportunities.
Embassy of Colombia to The Netherlands - 2012
Colombia
With coastlines on both the Pacific and
Atlantic oceans, Colombia is an
important platform for the
region
Embassy of Colombia to The Netherlands - 2012
1,100 direct international frecuencies per week
5,000 domestic frequencies/week
Avianca-Taca: one of 3 major airlines in Latinamerica
Easy-quick access to major cities in the Americas
A competitive location with easy access to cover the Americas (aprox. 5 hours to NY, Toronto, Santiago and Sao Paulo)
CIVETS, an opportunity for diversification
Embassy of Colombia to The Netherlands - 2012
The three top risk rating agencies granted Colombia “investment grade” on its sovereign debt in 2011
May 31, 2011
The three agencies agree on the country's positive economic and financial situation, highlighting:
Its ability to deal with external shocks Its historic fulfillment of obligations An increase in its macroeconomic
credibility A visible improvement in security
conditions
Unemployment Rate
Embassy of Colombia to The Netherlands - 2012
GDP Per Capita adjusted by PPP is close to US $10,000
• GDP Per Capita adjusted to prices at purchasing power parity (PPP)• (f) : ForecastSource: EIU (Economist Intelligence Unit)(October 12, 2011)
+126%
-20-15-14-12-10
-6911
2645
Costa RicaChile
ArgentinaBrazil
VenezuelaEcuador
MéxicoPanamá
PerúColombia Country
World Ranking
2012
World Rankin
g 2011
Chile 39 41Peru 41 39Colombia 42 47Mexico 53 54Panama 61 63Argentina 113 114Costa Rica 121 121
Brazil 126 120Ecuador 130 131Venezuela 177 175
The third "friendliest" country to do business in Latin America and the top reformer in the region
Change in Doing Business Ranking, 2007-2012*
(Variation in the number of positions)
Source: Doing Business 2012 World Bank Report*Positive numbers indicate improvements in business environment
Ranking in Latin America
Embassy of Colombia to The Netherlands - 2012
In terms of globalization, Colombia is ranked 3rd among Latin America countries, comparing to world economies such as Japan, Brazil, Russia and Indonesia
The Government is boosting 12 sectors through its Productive Transformation Program
MANUFACTURING SERVICES AGRO-INDUSTRIES
Business process
outsourcing BPO&O
Software & IT
Cosmetics & Personal Care
Health Tourism
Graphic Arts Industry
Textile, Apparel, Fashion & Design
Electric Energy and related Goods and Services
Auto Parts & Vehicles
Chocolate, Confectionary,
and its raw materials
Beef
Palm, vegetable oils & fats
Shrimp Farming
15% income tax rate.
No import duties.
VAT exemption for goods sold from
Colombia to FTZ
Benefit from international trade
agreements. (Except Peru)
Allow sales to the local market.
Free Trade Zones
Single-Company (SCFTZ)
Permanent (PFTZ)
The most competitive FTZ’s in Latin America: 15% income tax and sales allowed to the local market
Single - Company Free Trade ZonePermanent Free Trade Zone
99 Free Trade Zones Approved
• Exemption for 30 years for those who invest in the construction or renovation of hotels between January 1st, 2003 and December 31, 2017.Tourism
• Exemption for 20 years starting from 2003.Eco-tourism
• Exemption for 10 years after the start of production in crops planted between 2003 and 2014.Late yield crops
• Permanent exemption for investment in new forest plantations, sawmilling and timber plantations.Forestry
• Publishing of books, magazines, booklets or collections of scientific or cultural characteristics are exempt until 2013.Editorial
• Exemption for 10 years for products manufactured in Colombia with high scientific and technological research content, starting from 2003.
New medicinal products and software
• Exemption for 15 years for sale (by the generators) of electricity based on wind resources, biomass or agricultural waste.Renewable energy
• Exemption for 15 years starting from 2003 to provide services in slabs and boats with net weight below 25 tons.River transport
• 175% income tax deduction over investments in scientific and technological developments.Research and Technological Development
Other incentives by sector: Income tax exemption for up to 20 years
In ForceSignedIn Negotiation
Future
IN FORCE
• CAN (Peru, Ecuador y Bolivia)
• MERCOSUR (Argentina, Paraguay, Uruguay and Brazil)
• Chile• G2-Mexico• North Triangle (Honduras,
Guatemala y El Salvador)• Switzerland • Liechtenstein • Canada
SIGNED
• United States• EFTA (Iceland and Norway)
IN NEGOTIATION
• South Korea• Panama• Turkey• European Union (Signature)• Israel
FUTURE
• Japan• Australia• New Zealand• Costa Rica• Dominican Republic• Gulf Community
Positioning Colombia as an export platform: 11 free trade agreements (FTA) ,allowing preferential access to over 1,500 million consumers
21 double taxation agreements (ADT) with 22 countries : Bilateral Investment Treaties(BITS):3 in force (Peru, Switzerland andSpain)5 signed (UK, South Korea, India,Belgium, China)3 in negotiations (Kuwait, Japan and the UAE)
United States• US $16.879 B• 42.5% share
China• US $1.967 B• 4.9% share
Holland• US $1.617 B• 4.1% share
Ecuador• US $1.825 B• 4.5% share
In 10 years, exports tripled
Variation 2008 - 2009: -12.7%Variation 2009 - 2010: 21.2% Variation Jan Nov 2010 - Jan Nov 2011: 42.3% Source: DANE (National Department of Statistics)
Top destinations of exports, 2010
Exports to the EU
Embassy of Colombia to The Netherlands - 2012
Total exports to the EU: 2009: 4.698.726 2010: 4.976.327
1
2
3
4
5
6
7
8
9
10
Colombian Exports to The Netherlands - Nov 2010 – Nov 2011
Sector FOB US$
2010 FOB US$
2011
DIFFERENCE VARIATION
$US 2011/2010
Agrobusiness 74,482,621
162,304,127
87,821,506 118%
Manufacturing and derivatives
37,786,640
28,097,177
-9,689,463 -26%
Clothing 2,878,880
9,773,677
6,894,798 239%
Services 76,737
65,256
-11,481 -15%
Traditional 1,375,171,730
2,107,194,557
732,022,827 53%
TOTAL 1,490,396,608
2,307,434,794
817,038,186 55%
Imports from EU
Embassy of Colombia to The Netherlands - 2012
Total imports from the EU: 2009: 5.103.266 2010: 5.608.210
1
2
3
4
5
6
7
8
9
10
Bilateral Trade Colombia-The Netherlands
Embassy of Colombia to The Netherlands - 2012
FDI, 2000-2010US$ Millions
Embassy of Colombia to The Netherlands - 2012
FDI in Colombia by sectors 2009- 2010
Embassy of Colombia to The Netherlands - 2012
Foreign Direct InvestmentNetherlands - Colombia
Between 2000 & III trimester of 2011, Netherlands invested in Colombia US$
371,6 million. Nowadays, is the 15th country investing in Colombia and the 5th
within European nations.
2011 was the most important year of Dutch investment in Colombia, due to
investments in “Commerce”.
Since 2008, about 92% of Dutch FDI flows in Colombia have been directed to
“Commerce”, “Industry” and “Finance”
Source: Banco de la República (Colombian National Bank)
The Netherlands FDI outflow to Colombia
USD 6.25 million opening its 11th store in Villavicencio Colombia
USD 84 million acquisition of MASA, oil and gas services provider
EUR 75 million over the next 3 years to build a new, state-of-the-art laundry detergents factory at Palmira, Valle
Roadways for competitiveness “Ruta del Sol”
“Transversal de las Américas”
“Autopistas de la Montaña”
Roadway “Buenaventura – Bogotá - Cúcuta”
AirportsAirports granted in concession
Northeast Airports
“Eje Cafetero” Airports
Ports
RailwaysCentral Railway System
Atlantic Railway
“Altiplano” Train
“Carare” Train
Pacific Railway
Ports
Infrastructure Project Portfoliofor competitiveness
Map Source: INCO
Colombia is also increasing its investment flows abroad (utilities, banking and financial services)
Assembly of the first 500,000-volt electric transmission system in Peru. Investment: US $130 Million
Purchased 60% of Peruvian energy company Cálidda. Investment: US$ 111 Million
Acquisition of one hundred percent of the Central American BankInvestment: US$ 1.9 Billion
Purchased ING companies in Chile, Mexico, Peru, Uruguay and ColombiaInvestment: US$ 3.763 Billion
Source: Banrep
US $Million
Colombia one of the best places to go 2011
Embassy of Colombia to The Netherlands - 2012
TourismArrival of international
tourists*January-September 2010 y 2011
Enero-septiembre 2010 Enero-septiembre 20111,000,000
1,020,000
1,040,000
1,060,000
1,080,000
1,100,000
1,120,000
1,140,000
1,160,000
1,180,000
1,200,000
1,077,232
1,185,665
+ 10%
The number of passengers on cruise ships entered the country between January and September 2011
was 247,579, a growth of 4.3% over the same period in 2010.
*DASSource: DAS; Ministry of Trade, Industry and Tourism; Ports of Cartagena, Santa Marta, and San Andrés.
Dutch tourism in Colombia
Dutch travelers arriving to Colombia increased 14,7% on 2011. Nowadays, Netherlands ranks 16rh among all nationalities arriving to Colombia.
Bogota is the most popular destination for Dutch travelers in Colombia, although Medellin, Cartagena and Cali are also highly demanded.
Colombia is the second most visited South American country by Dutch travelers.
Leisure is the main objective for Dutch travelers in Colombia. Even though “Heath Services” and ranks second.
Source: DAS
Embassy of Colombia to The Netherlands - 2012
Proexport Colombia:www.proexport.com.co
Ministry of Foreing Affairs:www.cancilleria.gov.co
Ministry of Commerce:www.mincomercio.gov.co
http://www.investincolombia.com.co
Complete information available on: