Italia - Presentación Subsecretaría

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  • Over the last six years, Argentina has taken advantage of a favorable global environment to consolidate growth and expand its production and export capacity. During this period Argentina showed an 8.5% annual GDP growth rate, doubling its exports of goods and services, which, in 2008, hit a historical high of US$82.1 billion six years. This extraordinary growth rates were accompanied by twin fiscal and current account surpluses, a sustained increase in foreign reserves, and a steady rise in savings .
  • Gregar en XXX la estimacion de ferreres que creo que era 13% tambien para el primer sem. Creo que agrega y da confiabilidad a las estimaciones INDEC
  • Over the last six years, Argentina has taken advantage of a favorable global environment to consolidate growth and expand its production and export capacity. During this period Argentina showed an 8.5% annual GDP growth rate, doubling its exports of goods and services, which, in 2008, hit a historical high of US$82.1 billion six years. This extraordinary growth rates were accompanied by twin fiscal and current account surpluses, a sustained increase in foreign reserves, and a steady rise in savings .
  • Italia - Presentación Subsecretaría

    1. 1. Argentina: A Strategic Investment Destination to Meet the Demand of Global Markets Cecilia Nahón Undersecretariat of Investment Development  Ministry of Foreign Affairs, International Trade and Worship May 2011
    2. 2. <ul><li>Annual GDP growth of 7.4% over the seven year period of 2002-2009 </li></ul><ul><li>2010 GDP growth 9.2% </li></ul><ul><li>Twin fiscal and current account surpluses (1.7% and 1.0% of GDP, respectively in 2010) provide strong foundations for continued economic growth </li></ul><ul><li>Unprecedented accumulation of international reserves (US$ 52 billion in May 2011) </li></ul><ul><li>Significant public debt reductions </li></ul><ul><li>Earnings as a percent of FDI stock averaged 10.0% in 2006-2010 </li></ul>Sound fundamentals for sustainable growth The Argentine economy has grown steadily since 2003. Argentina is among the fastest growing economies in the region. GDP 2002-2010 (billion AR$, constant prices) Source: SUINV based on World Bank, BCRA and INDEC + 7.4%: + 9.2%:
    3. 3. Growth fueled by investment growth Investment grew steadily since 2003 and reached record-high levels in 2008. Fast recovery in 2010 with FDI flows growing 54%. Source: SUINV en based on INDEC Gross Fixed Capital Formation (GFCF) as % of GDP (in current and constant prices) Foreign Direct Investment (FDI) (million of US$) <ul><li>High-saving, high-investment model, with a positive saving-investment gap </li></ul>+ 21% <ul><li>FDI grew at an annual average rate of 43% between 2003-2008. In 2009 FDI contracted in line with FDI flows to the region and the rest of the world as a consequence of the global crisis. FDI were up 54% in 2010. </li></ul>+ 54%
    4. 4. An economy integrated with the region and the world Leading multinational companies operate in Argentina, most of them with a long-term vision and commitment. <ul><li>Nearly 2,000 multinationals </li></ul><ul><li>Total FDI stock of US$ 86 billion </li></ul><ul><li>Ranked 15th among emerging countries in FDI stock (2009) </li></ul><ul><li>Foreign affiliates account for: </li></ul><ul><ul><li>+ than 442,000 jobs (2009) </li></ul></ul><ul><ul><li>+ than US$ 123 billion in sales (2009) </li></ul></ul><ul><ul><li>324 of the 500 largest non-financial companies in Argentina </li></ul></ul>Examples of multinationals with a presence in Argentina
    5. 5. Italy is a prolific investor worldwide Italy is the 11th foreign direct investor in the world <ul><li>Italy is the 11th foreign direct investor in the world with a total FDI stock of US$ 578 billion and outflows of US$ 44 billion in 2009 </li></ul><ul><li>Italian FDI abroad grew in recent decades </li></ul><ul><li>Italian FDI in the world is concentrated in the European Union (79% of total FDI stock in 2007), while looking for new emerging markets destinations </li></ul>Evolution of Italian FDI abroad (In millions of US$) Source: SUINV based on UNCTAD
    6. 6. Italy is a significant investor in Argentina Italian FDI stock in Argentina grew at an annual average rate of 4.2% between 2004 and 2009 Evolution of Italian FDI stock in Argentina (In millions of US$) Source: SUINV based on BCRA
    7. 7. Italian FDI stock in Argentina is diversified Argentina captures 22% of Italian investments in the region Italian FDI Stock by sectors (In %) Source: SUINV based on BCRA
    8. 8. Leading Italian companies operate in Argentina Examples of Italian companies with projects or presence in Argentina
    9. 9. Most encouraging country in the region to FDI According to the OECD, Argentina is the least restrictive country in the region when it comes to FDI. <ul><li>FDI Restrictiveness Index by country 2010 </li></ul>Source: SUINV based on OECD Four types of measures are covered by the FDI Restrictiveness Index: (i) foreign equity restrictions (ii) screening and prior approval requirements (iii) rules for key personnel (iv) other restrictions on the operation of foreign enterprises. The highest score for any measure is 1 (the measure fully restricts foreign investment ) and the lowest is 0 (there are no regulatory impediments to FDI). Closed = 1 Open = 0
    10. 10. Attractive business profitability Firms reached high levels of profitability in historic terms. Source: SUINV based on Balance of Payments data and Survey of Big Companies INDEC Net margin of the top 500 companies in Argentina (as a % of sales) FDI return on assets (profits as a % of FDI Stock)
    11. 11. The opportunity Global trends are well aligned with Argentina's comparative and competitive advantages, making the country a strategic investment location in the new global scenario <ul><li>Global trends </li></ul><ul><li>Population growth </li></ul><ul><li>Food & energy demand expansion </li></ul><ul><li>Climate change </li></ul><ul><li>Manufacturing and services outsourcing </li></ul><ul><li>R&D in emerging markets </li></ul>Argentina's advantages to meet global demand: key sectors Why Argentina ? <ul><li>Food & Beverages </li></ul><ul><li>Renewable Energies </li></ul><ul><li>Value added manufacturing and services outsourcing </li></ul><ul><li>New technologies and R&D </li></ul>
    12. 12. Diversified economy to meet global market needs Argentina presents profitable investment opportunities in a variety of strategic sectors for the world economy Agro Industry Value added and design manufactures Renewable Energies IT and Software Creative Industries Professional Services Pharmaceutical Industry and Biotechnology Tourism Automotive and Auto parts
    13. 13. Foundations for success Argentina offers investors: <ul><ul><li>Sound fundamentals for sustainable growth </li></ul></ul><ul><ul><li>Attractive business profitability </li></ul></ul><ul><ul><li>Globally and regionally integrated economy </li></ul></ul><ul><ul><li>Diversified economy to meet global market needs </li></ul></ul><ul><ul><li>Highly skilled, innovative and talented human resources </li></ul></ul><ul><ul><li>Abundant and diverse natural resources </li></ul></ul><ul><ul><li>Modern infrastructure and quality connectivity </li></ul></ul><ul><ul><li>Vibrant culture </li></ul></ul><ul><ul><li>Remarkable quality of life </li></ul></ul><ul><ul><li>Public sector supportive of investment </li></ul></ul>A winning formula to succeed in your business
    14. 14. Public sector supportive of investors Welcoming investors: protection and equal rights for foreign investors <ul><li>The Argentine Constitution guarantees equal treatment and rights for local and foreign investors </li></ul><ul><li>The Foreign Investments Act (No. 21,382) defines the legal framework for foreign investments </li></ul><ul><li>Foreign investors may: </li></ul><ul><ul><li>Remit abroad liquid profits arising as a return on their investment as well as repatriate their investment </li></ul></ul><ul><ul><li>Avail themselves of any of the legal forms of incorporation foreseen by Argentine legislation </li></ul></ul><ul><ul><li>Make use of domestic credits and loans with the same rights and under the same conditions as domestic companies of domestic capital </li></ul></ul><ul><ul><li>Access all sectors of economic activity as there are no activities reserved exclusively for local enterprises </li></ul></ul>
    15. 15. <ul><ul><li>Horizontal incentives </li></ul></ul><ul><ul><li>Investment Promotion Law (No. 26,360): early VAT return and/or accelerated depreciation allowances for investment on capital goods and infrastructure </li></ul></ul><ul><ul><li>0% tariff on imports of capital goods </li></ul></ul><ul><ul><li>0% tariff on imports of goods which are part of a large investment project </li></ul></ul><ul><ul><li>For every new job created, 50% reduction on employers’ contributions during the first year of employment and a 25% reduction in the second year </li></ul></ul><ul><ul><li>Others: FONTAR, FONSOFT, SEPyME programs, incentives to foster employment and exports (for further details please see “Investment Incentives” published by SUINV) </li></ul></ul><ul><li>Sector incentives </li></ul><ul><li>Specific benefits and incentives for diverse sectors: automotive and auto parts, software, biofuels, biotechnology, mining, forestry, public infrastructure and hydrocarbons </li></ul><ul><li>Exemptions from provincial taxes for a determined period of time </li></ul><ul><ul><li>Gross income </li></ul></ul><ul><ul><li>Stamp taxes </li></ul></ul><ul><ul><li>Property tax </li></ul></ul><ul><li>Financial support for infrastructure investments and purchase of relevant equipment </li></ul>Public sector incentives Incentives across sectors to boost investment
    16. 16. The Undersecretariat of Investment Development is your strategic partner Providing professional assistance for your business to succeed in Argentina <ul><li>Timely information and relevant advise on business sectors and geographical locations in Argentina </li></ul><ul><li>Identification of investment and innovation opportunities in strategic sectors </li></ul><ul><li>Facilitation of the whole investment process (generation, growth and after-care) </li></ul><ul><li>Building partnerships between foreign investors and local companies </li></ul>Our group of professionals will gladly assist you with: We are Argentina’s Undersecretariat of Investment Development within the Ministry of Foreign Affairs, International Trade and Worship. Investment development activities are supported by a network of 130 permanent representations throughout the world.
    17. 17. To learn more about how investing in Argentina can benefit you, please contact us: www.inversiones.gov.ar [email_address] (5411) 4328-9510 Thank You!

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