Investment Environment and Business Opportunities - Kauppayhdistykset Trade Associations
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
COLOMBIA Investment Environment and Business Opportunities
PROCOLOMBIA
PROMOTES
WE PROMOTE
COUNTRY BRAND
WE PROMOTE EXPORTS
WE PROMOTE
TOURISM
WE PROMOTE
INVESTMENT AND
INDUSTRIAL EXPANSION
FOR
INTERNATIONALIZATION
PRESENCE OF PROCOLOMBIA
IN THE WORLD
*En conjunto con el MinCIT
33
COUNTRIES
**En alianza con países de la Alianza del Pacífico
Brazil 3 371
Mexico 2 575
Australia 1 319
Malaysia 1 000
Philippines 956
COLOMBIA
Argentina 919
South Africa 791
Bangladesh 758 Is the 32nd largest
Colombia 749
economy in the
world and 4th in
United Arab Emirates 733
Vietnam 707
Algeria 661 Latin America.
Singapore 556
Switzerland 551
Sweden 543
Hong Kong SAR 484
Chile 480 GDP PPP 2018*
(USD billlion)
Austria 463
Peru 458 Latin American Economies
Source: IMF, WEO, January 2019.
GROSS
DOMESTIC
PRODUCT
Estimated 4,1% 3,5% 3,4% 2,5% 2,3% 2,2%
growth 2019
Colombia will be one of the
top growing economies
in Latin America in 2019
Venezuela
Argentina
Mexico
LATAM
Peru
Brazil
Colombia
Chile
-1,6%
-5,0%
Source: IMF. January 2019.
The Colombian economy is
on the path of recovery and
will expand by about 3.5% in
2019-2020 GDP Growth
(constant prices, % rate)
7%
6,6%
6%
4,9%
5%
4,4%
4,0%
4% 3,7%
3,5%
3,1%
3% 2,7%
2,0%
2% 1,8%
1%
0%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Source: IMF, WEO 2019, January
COLOMBIA IS THE 28th
most populated country in the world
and the 3rd in Latin America
210,7
Population in 2019* (million)
Latin America
125,9
65,4 60,7
51,9 50,4 46,2 45,1
32,8 32,5 28,1 25,6
18,8 17,3 11,5 11,4 10,7 10,8 10,4 10,2 9,0 9,1 5,8 5,4 3,5
*Estimated,.
Source: IMF, 2019
Since 2013 the unemployment
rate has remained at a single-
digit level.
Unemployment rate
(Percent of the population)
12,5
12
12 11,8
11,5 11,3
11 10,8
10,4
10,5
10 9,7
9,5 9,2 9,3 9,2
9,1 9,1
8,9
9
8,5
8
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
It is expected that in 2019 and 2020, the unemployment rate will continue to be at a
one - digit level.
Source: Source: Colombian National Bank (Banco de la República), January 2019.
A GROWING MIDDLE CLASS
WITH HIGH PURCHASING
POWER 15000 35,00%
GDP (USD PPP, constant prices) 14.436
14000
30,00%
13000
30,4%
12000
25,00%
11000
Middle class(%)
10000 20,00%
9000
15,00%
8000
7000
10,00%
6000
5000 5,00%
2002 2003 2004 2005 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Share of the population belonging to the middle class vs GDP per capita evolution
2002 – 2017
1.8% 2.7% 3.5%
GDP Growth GDP Growth GDP growth forecast
Source:Poverty indicators (DANE) and GDP (World Bank) Middle class: in 2017 in 2018 for 2019
Estimated by ProColombiaCOLOMBIA STANDARD
& POOR S
, FitchRatings MOODY,S
an investment
grade country Long Term – Long Term – Long Term –
Term
Foreign Foreign Foreign
currency currency currency
Ranking
BBB- BBB Baa2
In July 2014, Moody´s was the last rating agency in
improving Colombia´s rating due to two key drivers:
1. Positive growth forecast
thanks to 4G
2. A sound fiscal
management that will
infrastructure. continue in the future.
In March 2017, Fitch Ratings* improved Colombia´s
rating outlook: from Negative to Stable
Source: S&P Ratings; Dinero magazine, Colombian
Treasury.
* Portafolio 2018COLOMBIA IS THE 37TH
MEMBER OF THE OECD
CANADA
UNITED STATES
MEXICO
CHILE
COLOMBIA
AUSTRIA LATVIA
BELGIUM LUXEMBOURG
CZECH REPUBLIC NETHERLANDS
DENMARK NORWAY
ESTONIA POLAND
FINLAND PORTUGAL
FRANCE SLOVAK REPUBLIC
GERMANY SLOVENIA
GREECE SPAIN
HUNGARY SWEDEN
ICELAND SWITZERLAND
IRELAND TURKEY
ISRAËL UNITED KINGDOM
ITALY
JAPAN AUSTRALIA
SOUTH KOREA NEW ZEALAND
“The OECD investment policy review
examines Colombia's achievements in
developing an open and transparent Being part of the OECD countries means
investment regime and its efforts to that public institutions in Colombia will meet
reduce restrictions on international standards of the developed world more
investment” OECD confidence for investorsCOLOMBIA
LOW BARRIERS
TO FDI
More barriers
FDI’s Regulatory
0,45
Restrictiveness Index 2017
0,40
Closed = 1 - Open = 0
0,35
0,30
0,25
Less barriers
0,20
0,15
0,10
0,05
0,00
Latin American Economies
Source: OECD, May 2017.COLOMBIA IS PART OF
THE TOP 30
DESTINATIONS FOR FDI
275
Top 30 host economies in 2017
(USD billion)
136
104
63 62 58
50 46 40 35 30 30 29 25 24 19 19 17 17 15 15 15 14 11 10 10 7 7 6
-2
Developed economies
Developing and transition economies
Source: UNCTAD, 2017.FDI has been largely driven by non-mining
sectors over the last 3 years
FDI increased by 68%
during the first quarter of
2019
FDI Inflows 6 314 2 261
(USD millon) 7 180 7 945
8 089 4 062
3 139
2010 – 2018 2 360
1 463
11 589
Mining and oil 9 854 9 951 8 650 871
4 918 7 468 8 121 8 584
7 095
Other sectors 1 872
1 110
1 512
2010 2011 2012 2013 2014 2015 2016 2017 2018 2018 Q1 2019 Q1
Foreign Direct Investment from European countries in Colombia 2000-2018
USD 67.098 million
38,3%
Top Investing 1 2 3 4 5
countries in Colombia
United States Spain
2000-2018 *
United Kingom Switzerland
USD 36,377 million USD 21.026 million Mexico
USD 17.274 million USD 10.763 million
20,7% USD 6.932 million
12,0% 9,9% 6,1% 4,0%
Source: Balance of Payments - Banco de la Republica.
Share of all countries with positive cumulative investment, The information includes reinvested profits or investments in the oil
sector
Note: the list of the top countries investing in Colombia does not include Panama.Colombia is the country in Free Trade Zones Offer:
Latin America with the most Reduced income tax and VAT Exemptions
free trade zones
allowing access to local market
No import duties. VAT exemption for Benefit from international
goods sold from Colombia to FTZ. trade agreements.
Free trade zones for different Allows sales to the local market.
investor styles.
Total number
Number of Special Standing Free Trade: Number of permanent
Single enterprise: Free Trade Zones:
71
114 43
Source: Directorio de Zonas Francas 2019 DANECOLOMBIA
has access to 60 countries and more than 1.5 billion
consumers through its network of trade agreements
AELC
Canada
European Union
South Korea
United States
Mexico Caricom* Israel
Cuba*
El Salvador
Guatemala Costa Rica
Honduras Venezuela
Panamá
Nicaragua*
Ecuador
Peru Brazil
Bolivia
In force
Signed Paraguay
Chile Uruguay
Pacific Alliance
Argentina
* Partial scope agreements (PSA)
- - - Blue line shows Pacific Alliance´s member countries others than Colombia –(Chile, Peru and Mexico).
Source: Chamber of Commerce, Industry and Tourism, Colombia,2017COLOMBIA
Less than 6 hours away by airplane from the main cities in
the Americas
London Berlin
(10hr 26min) (13hr 45min) Moscow (15hr
Toronto 58min)
Seoul
(6hr 10min)
(23hr 35min) Tokyo
Madrid Paris Istambul (25hr 05min)
(9hr 40min)
(10hr 55min) (15hr 16min) Beijing
New York (22hr 45min)
Los Angeles (5hr 35min)
(7hr 40min) Miami
(4hr 00 min) Dubai Hong Kong
(20hr 45min) (22hr 45min)
Mexico City(4hr
1,109
Mumbai
55min) (20hr 50min)
international
direct
frequencies Lima
per week. (3hr 05min)
Sao Paulo
Santiago de (6hr 10min)
More than Chile
5,600 (5hr 55 min)
domestic
frequencies per
week.
*Esta información tiene en cuenta las rutas que salen de aeropuertos internacionales en Barranquilla, Bogotá, Cali y Medellín. OAG. Para una semana típica del mes de Diciembre de 2017. Fuente: Rutas y Tarifas - Herramientas para
las exportaciones colombianas, procesados por ProColombia.COLOMBIA
counts with more than 4,500 maritime export routes and has access
to 680 ports around the world.
ACCESS TO USA IN JUST 3 DAYS
ACCESS TO THE NETHERLANDS
(PORT EVERGLADES)
IN JUST 13 DAYS
(ROTTERDAM)
VANCOUVER MONTREAL LONDON
SAINT
(17 DÍAY) (9 DAYS) (17 DAYS)
PETERSBURG
(21 DAYS)
BUSAN
(25 DAYS) TOKYO NEW YORK (6
(22 DAYS) DAYS)
SHANGHAI
HONG KONG MIAMI BARCELONA
(29 DAYS) LOS ANGELES
(33 DAYS) (4 DAYS) (15 DÍAS)
(10 DAYS)
VERACRUZ
(5 DAYS)
ACCESS TO CHINA IN JUST SANTOS
KARACHI (11 DAYS)
(37 DAYS) KOLKATA 29 DAYS (SHANGHAI)
(43 DAYS)
CALLAO
ACCESS TO PERU (2 DÍAS)
SIDNEY IN JUST 2 DAYS
(21 DAYS) (CALLAO)
VALPARAÍSO BUENOS AIRES
AUCKLAND (17 DAYS)
(5 DAYS)
(17 DAYS)
CAPETOWN
(34 DAYS)
Source: Routes and Tariffs - Tools for the Colombian Exporter, processed by ProColombia.Major multinational corporations have chosen Colombia as an investment project destination
Some niches with opportunities:
INFRASTRUCTURE
A major driver for growth
AIRPORTS PORTS ROADS STEP RAILWAYS FLUVIAL
NATIONAL PLAN
1. USD $5.6 billion in rehabilitation, expansion and modernization of 31
airports (2015 – 2018).
2. The Fluvial National Plan consists of 13 river projects with an investment
of USD $2.9 billion.
3. Until 2035, USD $17 billion will be invested to increase road
infrastructure:
7,000 kms of new highways
1,370 kms of double lane highways
141 tunnels
1,300 viaducts
4. USD $3.3 million investment to recover more than 1,769 kms of railways
network.
Source: Intermodal Transport Master Plan 2015-2035 (PMTI ,
Ministry of Transport - Exchange rate: USD = COP$3,000SUCCESS STORIES -
INFRASTRUCTURE:
A major driver for
growth
AUSTRIA FRANCE
CHINA
Strabag will be in charge of 75 Km In Colombia, Vinci acquired a 20%
new highways, and the stake in Conconcreto, an alliance that HEC will build “The Mar 2 highway”
modernization of a 65 km section. allowed them to work together in large that will improve northeast logistics
infrastructure projects and concessions development. Total project length:
246 km.
in Colombia.
Source: ProColombia con base en prensa nacionalSECTORS OF Some niche opportunities
OPPORTUNITY - ENERGY:
A diversified resource base THERMAL PCH SOLAR
and a strategic location in
the Americas WIND BIOMASS TRANSMISSION
NETWORK
Colombia ranked first in Latin America and eighth in
the world,
according to the “Energy Architecture Performance Index 2017”. WEF, 2017. The Global Energy Architecture Performance
Index 2017
546 power generation projects registered in different stages: Switzerland 0,8
Installed capacity up to 15,940* Norway 0,79
Sweden 0,78
22 Open public bids for power transmission projects in Colombia**
France 0,77
High potential in Biofuels and alternative energies. Denmark 0,77
Austria 0,76
Aquellos proyectos enfocados en energías renovables tendrán
exenciones del IVA, aduanas e impuesto a la renta – Ley 1715. Spain 0,75
Colombia 0,75
New Zealand 0,75
Uruguay 0,74
Source: World Economic Forum 2016 and UPME / * UPME (Colombian Planning Unit of Mines and Energy). MW approx.. **Bids
open by UPMESUCCESS STORIES -
ENERGY:
A diversified resource base and a
strategic location in the Americas
GERMANY UNITED STATES
ITALY
The low-grade thermal coal plant, Colombian subsidiary of AES
Between 2017 - 2019, the Italian
Termopaipa located in Paipa, Corporation (Applied Energy
multinational Enel will invest close to
was the first power plant planned Services). Chivor is one of the
USD 561 million in energy projects in
overseas, financed and built by country's largest power generator
Colombia.
Steag. with a total effective installed
capacity of 1,000 MW.Some niche opportunities:
SECTORS OF
OPPORTUNITY – ACUICULTURE CACAO CEREALS
FRUITS AND MEAT
AGRIBUSINESS
VEGETABLES
PROCESSED
RUBBER BIOFUELS FORESTAL FOOD
Investment opportunities
1. 2. 3. 4.
Expansion of cultivated Construction of cocoa Colombia has the fourth Build specialized industrial
areas with a high global processing plants for dairy herd and largest facilities to transform
demand of agricultural cocoa butter, cocoa dairy production in the natural rubber into value-
products, construction of liquor and chocolate region, which guarantees added elements.
collection centers and products. easy access to raw
assembly of processing materials for the
plants (IQF, pulps, jams). subsequent
transformation of dairy
products.
Fuente: FAO, Ministerio de Agricultura.SUCCESS STORIES
AGRIBUSINESS
UNITED STATES BRAZIL SWEDEN SWITZERLAND
The American investment fund Brazilian company dedicated to the In 2014, the Swedish company Nestlé has a commercial presence in
specialized in the agribusiness sector, production and commercialization of AarhusKarlshamn (AAK) expanded Colombia since 1944. Currently its
invested in the company, “Cacao beef, leather, live animals and its toLatin America and acquired the product portfolio focuses on biscuits,
de Colombia”, by setting up a byproducts. Colombian company Fábrica chocolates, coffee and dairy
second production plant in Popayán. Nacional de Grasas (Fanagra). products.
The company acquired freezers
from Red Carnica S.A.S located in
Cordoba.
Source: Procolombia based on national pressSECTORS OF
OPPORTUNITY Some niches of opportunity:
METALWORKING AND
OTHER INDUSTRIES AUTOMOTIVE METALWORKING CONSTRUCTION
AND AUTO PARTS MATE
Colombia, a sustainable
destination.
INVESTMENT OPPORTUNITIES
1. 2. 3.
Setting up assembly lines to Setting up factories that Establishment of cement,
produce commercial transform iron and steel ceramic and prefabricated
vehicles (buses), cargo products with the aim of production plants to supply
vehicles and motorcycles meeting other industries local and international
to serve both local and demand. markets.
international markets using
Colombia as an export
platform.SUCCESS STORIES –
METALWORKING
AND OTHER
INDUSTRIES
FRANCE JAPAN Sweden UNITED STATES
The company invested in a The Japanese company of ABB started in Colombia in1988. It has Whirlpool and the Colombian
float glass production plant to continuous casting and offices in Bogotá, Barranquilla, company Haceb, signed an
supply the national market and production of high precision Bucaramanga, Cali and Medellín; It alliance to produce washing
export to countries in the parts, decided to open a plant also has a modern power transformer machines in a plant of US $ 70
Andean region. to serve the American market. and distribution plant in Dosquebradas, million.
Risaralda. ABB employs more than 700
people in Colombia.
Source: Procolombia based on national pressSECTORS OF Some niche with opportunities
OPPORTUNITY -
CHEMICALS AND FERTILIZERS
NATURAL
INGREDIENTS
PLASTIC
PACKAGING
LIFE SCIENCES
FOR COSMETICS
Investment opportunities
1. 2. 3.
Setting up agrochemicals Setting up research centers on Assembly of plastic packaging
formulation and development of cosmetics based production plants to meet the
production plants to serve on natural ingredients. Taking needs of the LAC region.
the growing local market. advantage of the Colombian
biological and floristic diversity; and
the tax incentives provided by the
National Government for R&D
projects.SUCCESS STORIES -
CHEMICALS AND
LIFE SCIENCES
NETHERLANDS NORWAY INDIA UNITED STATES
The new factory set up in Colombia is Started its production operations in The Indian group inaugurated Inaugurated its new operations
one of its three most modern 2013, after the acquisition of Abocol, a new production plant in Villa center in Antioquia to supply the
factories in the world, thanks to its the most important agrochemical Rica (Cauca), from which it markets of Central America and the
cutting-edge technology and company in Colombia. manufactures 180 million Andean region.
ecofriendly facilities. laminated plastic tubes for
consumer products.
Source: Procolombia based on national pressSome sectors with opportunities:
SECTORS OF
OPPORTUNITY – SERVICES: BPO BACK BPO. BIG DATA SHARED
IT, BPO, ITO, Shared OFFICE-
FINANCE
TELEMEDICINE ANALYTICS SERVICE
CENTERS
Services, Apps
DATA CENTERS FINTECH SMART CITIES
Colombia is one the three major
providers of IT services in the region.
1. 2. 3.
Between 2001 and 2015, 1.3 million bilingual people in 1st place in South
3,405,211 graduates in Colombia in 2016. America in labor qualifies,
different levels of education according
to IMD (2015)
4. 5.
6th place in the region in level Colombia has 10 submarine
of companies bilingualism cables, with eight exits through
in 2016. the Caribbean Sea and two
through the Pacific Ocean.
Source: MinTic and IDCSUCCESS STORIES –
SERVICES:
UNITED KINGDOM FINLAND UNITED STATES
SPAIN
Endava has an operation It has two operations centers in Qvantel started operations in IBM opened its third Data Center
center in Bogotá, where it Bogota where it manages a Medellin. Their project is in Colombia offering a processing
provides automation and diversified portfolio of blue ribbon focused on creation of a power of 5 petabytes.
digital evolution services clients, with the capacity for up to support center BSS (Business It´s one of the most advanced
to its customers in the US a thousand positions. Support System) for the entire centers for Cloud Computing and
and Europe. LATAM . Big Data Analytics companies in
the country.
Source: Procolombia based on national pressSECTORS OF Some niche opportunities
OPPORTUNITY
– TOURISM
Infrastructure, NATURE & WELLNESS ENTERTAINMENT CITY HOTELS
real estate
ADVENTURE
and retail
Inbound tourists*
2013 – 2017 Investment Opportunities in:
(million of people)
6,5
1. Colombia ranks 25th in the ICCA ranking (International Congress and
Convention Association)
6,5
2. Luxury
5,1 and wellness hotels can take advantage of the Colombian
4,4 biodiversity to offer high quality services.
4,2
3,7
3. Luxury and wellness hotels can take advantage of the Colombian
biodiversity to offer high quality services.
4. VAT exemption for health tourism services
2013 2014 2015 2016 2017
*Inbound tourist includes: resident Colombians abroad, foreign non resident in Colombia, special
cross borders, and cruise visitors.
Source: Migration Colombia and MinCIT. ProColombia calculations.SUCCESS STORIES TOURISM
INFRASTRUCTURE,
real estate and retail
FRANCE UNITED KINGDOM SPAIN CANADA
This hotel chain has presence in Holiday Inn hotels opened in Bogota Holiday Inn hotels opened in Bogota Holiday Inn hotels opened in Bogota
Colombia through the hotels: and Cartagena, totaling 331 rooms. and Cartagena, totaling 331 rooms. and Cartagena, totaling 331 rooms.
Sofitel, Mercure, Accor and Ibis.
Source: Procolombia based on national pressSECTORS OF Some niches with opportunity
OPPORTUNITY
-SERVICES, REAL ESTATE HEALTH BANKING TIC
CAPITAL
FUNDS BIOTECH ENERGY AGRIBUSINESS INFRASTRUCTURE
Colombia offers several benefits
to invest in capital funds.
1. 2. 3.
Colombia was ranked fourth in 19 International General Capital funds such as Advent
Latin American and Partners in Colombia. International and Victoria Capital
the Caribbean due to its have chosen the country as a hub
favorable conditions for to service other countries in the
development of the PEF industry. regionSECTORS OF
OPPORTUNITY-
SERVICES,
CAPITAL FUNDS
CANADA UNITED KINGDOM SPAIN
Investments mainly in the sectors of InfraRED is a global investment fund Venture capital fund focused on
infrastructure, energy and real focused on the infrastructure and investments in companies in the ICT
estate. energy sectors. The company sector that are mainly in the early
Investments in the Colombian power acquired 50% of the concession stages of development. In Colombia,
company SA as part of its expansion company Perimetral Oriental de it has invested in companies such as:
plan in the region. Bogotá SAS, a roadway project of the domicilios.com, en medio,
4G infrastructure program mercadoni, neomarket, bocci and
redseguro.
Source: Procolombia based on national pressFinance Law
BECOMING ONE OF THE MOST COMPETITIVE
REDUCTION
MINCOME
A R K E T S TAX
OF THE
I N T RATE
CORPORATE
HE REGION
33% For the taxable year 2019.
Reaching Latam’s
32% For the taxable year 2020.
and the Caribbean
31% For the taxable year 2021.
standards
30% For the taxable year 2022.Some of our income
tax exemptions
Income from the development Income from sales of Income from investments to
of technological value-added industries energy from non- increase the productivity of
and creative activites- Tax incentives to conventional sources. the agricultural sector.
orange economy companies (15 years) (10 years)
(7 years)
Income from the use of Fuvial transport services
new forestry plantations. by shallow draft boats.
(15 years)MEGA HOLDING
INVESTMENTS COMPANIES
New investment within the To national companies whose main
national territory of 30.000 UVT company purpose is the holding of securities,
(COP$ 1.028.100.000 approx. investment in shares or participations
USD$ 342 million). That generate abroad, some tax benefits are stablished.
at least 250 direct Jobs. Benefits: The dividends distributed by non
residents to the holding are exempt of
income tax.
The dividends distributed by the holding to
residents are subject to the dividend tax.
Dividends distributed to non residents are
income tax exempted.
Exclusions: Investments in hydrocarbons Requirements: Investments in hydrocarbons and mines
and mines are excluded of this regime are excluded of this regimeIncentives
Hotels, theme parks, ecotourism, agrotourism
and new boat docks.
incentive was extended to municipalities with more tan 200.000. An incentive
was created to theme parks, ecotourism, agrotourism and new boat docks.
Municipalities < 200.000. Municipalities > 200.000.
Income Tax Rate 9% - 20 Income Tax Rate 9% - 10
years. Until 2029 years. Until 2023PROCOLOMBIA READY TO ASSIST YOU IN ASSESSING INVESTMENT OPPORTUNITIES
You can also read
