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¿Why invest in Peru? Why invest in Peru? Macroeconomic stability Friendly investment environment Open trade and market access policy
Peru will continue to lead regional growth:Source: Central Reserve Bank of Perú, Ministry of Economy and Source: International Monetary FundFinance.* Estimated figures
A healthy debt level in relation with its international reserves:Source: Central Reserve Bank of Peru and Ministry of Economy and *As of July 20, 2012.Finance.*Preliminary figure
The lowest annual average Investment grade - A Latin American inflation rate in Latin America: comparison: CountrySource : Central Reserve Bank of Peru and Source : Standard & Poors, Fitch Ratings and Moody‘s.Ministry of Economy and Finance Updated to March 2, 2012.
A favorable legal framework:Non discriminatory treatment.Unrestrictive access to most economic sectors.Free competition.Free capital transfer.Guarantee for Private Property.Freedom to purchase stocks from locals.Freedom to access internal and external credit.Freedom to pay royalties.Network of investments agreements and member of ICSID and MIGA.Peru participates in the Investment Committee of the OECD.
Special Regimes: The Legal Stability Agreements The Peruvian Government grants the following: Requirement: Minimum investment of US$ 5 million in any economic sector . US$ 10 million for hydrocarbon and mining sector. Validity: 10 years. Concessions:Term according to the contracts life (Max. 60 years).These treaties are ruled by the Legislative Decree 662 – Legislative Decree N° 757, Supreme Decree N° 048-98, Supreme Decree 030-2000PCM, Law 27342.
Special Regime: VAT Anticipated RecoveryThe Peruvian Government grants the following:Benefits: Granting the return of the Value Added Tax during the pre- productive stage of the project (minimum 2 year term). Applicable to all economic sectors. For agricultural activity it is not necessary to meet a minimum investment amount. For other activities the minimum investment amount is US$ 5 million. The project can be divided into stages, phases or similar.
Doing Business 2012: Peru in the world Ranking by each topic :Source: The World Bank, 2012
Doing Business 2012: Peru 2nd in Latin America Source: The World Bank, 2012
Investment Agreements: Peru has signed 33 International Investment Agreements, that underpin its liberalization policy.
Investment Agreements:Agreements to avoid double taxation In force: Chile; since 1/01/2004 Canada; since 1/01/2004 Andean Community; since 1/01/2005 Brazil; since 1/01/2010
3Open trade and market access policy: US $ 56 trillion
Investment Opportunities: AGRIBUSINESS TECHNOLOGICAL FISHERIES SERVICESREAL STATE FORESTRY WHERE TO INVEST ? TOURISM TEXTILE PETROCHEMICAL MINING ENERGY
Agribusiness sector: Natural greenhouse. Seasonal window in the most important markets. Projections expect the 90,000 ha. currently used for agro exports to double as consequence of large irrigation projects in portfolio. Over US$ 4,400 billion in exports of fresh and processed products to more than 156 countries. Organic and natural products with high export value.
Fisheries sector: 1st producer of fishmeal and fish oil in the world. Extensive fishing coast and “water mirrors” that offer adequate conditions for the development of marine and continental aquaculture. Distribution of Peruvian fisheries products to over 100 countries. Trend towards product diversification.
Forestry sector: Great biological diversity and highly valued timber. 78, 8 million ha. of natural forests. 2nd country with the largest natural forest area in Latin America. Development of hard tropical timber in the forest and soft timber in the highlands. Investment opportunities in industrial timber complexes.
Textile sector: Recognized quality of Peruvian pima cotton. 1st world producer of the finest South American camelids fibers. Long textile tradition favors workforce professionalization and training. International recognition as “full package” supplier of the best brands in the world. Sound trend towards exports growth.
Mining sector: Polymetallic country: 2nd in copper, 3rd in zinc and 1st in silver reserves worldwide. 13.61% of the territory is subject to mining concessions, and only 1.09% is used for mining exploration and exploitation. 2nd silver and copper producer worldwide. 1st gold, tin, zinc and lead producer, and 2nd copper, silver and molybdenum producer in Latin America. In 2011, mining exports grew by 23.25%.Peru is one the few countries with non- metallic mineral deposits, such as mercury, selenium and cadmium.
Energy sector: Energy matrix mostly based on renewable sources. In the last five years, the energy production has increased in 40.3% due mainly to the thermoelectric generation growth with annual average rate of 16%. Main economic groups that comprise 62% of energy production in Peru are Globeleq, Suez and Duke Energy. Great energy potential. Renewable energy sources toexplore.
Petrochemical sector: Peru has important natural gas reserves. Natural gas production reached 401,169 million cubic feet in 2011. Petrochemical industry merges with natural gas production and other hydrocarbons using the “Upstream Integration” Development Strategy. Peru has oil fields which have not been explored yet. US $ 17,150 million from private investment will be assigned to the construction of ammonia, urea and ethylene plants in the southern region of the country.
Tourism sector: Machu Picchu: One of the New Seven Wonders of the World. Diversity of natural landscapes. Destination for bird and orchid watchers. Lima is the gastronomic capital of Latin America. Significant investment from hotels of international recognition. Investment opportunities in the 8 prioritized tourist destinations: North beaches, Amazon Rivers, Amazonas-Kuelap, Moche Route, Lima, Nazca-Paracas, Colca Valley and Lake Titicaca.
Real state sector: Housing deficit affects 25% of population. Annual growth of construction sector for 2010 was 18%. There are several programs for housing financing based on households socio-economic conditions and income level. Mortgage credits grew an average of 17% in the last 4 years (2008-2011).
Technological Services: The lowest labor cost per operator in Latin America. The contact centers services exports, data processing, application of IT program and similar are exempted from VAT. The software sector had in the last 6 years an annual average growth of 15%. The industry currently represents 15.574 positions, and it generates 29.665 direct jobs, and exports have tripled in 5 years. The implementation of the Data Protection Law will strengthen the position of companies, making possible to establish more trading links.
ONGOING PROJECTS IN PROINVERSION’S PORTFOLIOPrivate investment promotion process – short term 2012-2013:1/ VAT not included.2/ Investment amounts of Land transport (Road Concessions Project), Telecommunication (National Optical FiberBackbone Network), Tourist (Kuelap cable cars) and Airport (New International Airport Chinchero – Cusco) sectorsinclude VAT.Source: Proinversión