045 Presentacion%20 Colombia%20 December%202009%20(Ingles)
Upcoming SlideShare
Loading in...5
×

Like this? Share it with your network

Share

045 Presentacion%20 Colombia%20 December%202009%20(Ingles)

  • 1,428 views
Uploaded on

Official Government PPT-2010

Official Government PPT-2010

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
1,428
On Slideshare
1,424
From Embeds
4
Number of Embeds
2

Actions

Shares
Downloads
25
Comments
0
Likes
0

Embeds 4

http://www.linkedin.com 3
https://www.linkedin.com 1

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. December 2009
  • 2. AGENDA ÂżWhere are we coming from? ÂżWhat are we doing? ÂżWhere are we going next?
  • 3. PERSPECTIVES ON COLOMBIAN ECONOMIC GROWTH ARE ABOVE OF THOSE OF LATIN AMERICA
  • 4. COLOMBIA AND LATIN AMERICA: GDP GROWTH, 1999 – 2009(Q III) (%) 10% 8% 7.50% 6.80% 5.70% 6% 4.60% 4.70% 4% 2.92% 2.20% 2.50% 2.53% 2% 0.30% 0.70% 0.20% 0% -2% -4% -4.20% -6% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2009 2009 (Q I)* (Q II)* (Q III)* Colombia Latin America Source: DANE (National Accounts), DNP, EIU (Market Indicators & Forecasts) Note: Last update December 23rd, 2009 Note: *% of GDP growth compared to previous quarter % of GDP growth in Latin America 2009 is taken from EIU forecast 4
  • 5. FDI IN COLOMBIA IS FIVE TIMES GREATER THAN FIVE YEARS AGO FDI US$ Million 12000 10.600 10,252 8000 5,417 4,896 4000 2,134 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 I Sem I Sem (pr) (pr) (pr) (pr) 08 09 Source: Banco de la RepĂşblica
  • 6. EXPORTS TRIPLED US$ Million Exports 45000 37,626 30000 19,062 15,480 11,975 15000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 I Half I Half 08 09 Source: DANE (Departamento Nacional de EstadĂ­sticas) 7
  • 7. INTERNATIONAL VISITORS IN COLOMBIA DOUBLED Thousand Visitors Tourism 1600 1,451.0 1200 842.7 706.2 661.1 800 400 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 I Half I Half 08 09 Source: DAS 8
  • 8. SO FAR THIS YEAR, COLOMBIA HAS BEEN ONE OF THE BEST ECONOMIC PERFORMERS IN THE REGION Exports FDI -18.8% Colombia -10.0% Colombia -22.0% Chile -22.8% Brazil -23.7% Mexico -29.6% Peru -24.1% Brazil -30.2% Argentina -50.8% Peru* -30.2% Mexico -51.6% Argentina* -36.9% Chile -74.0% Venezuela -53.6% Venezuela Tourism Colombia 10.3% Chile 0.3% Peru 0.1% Mexico -6.7% Argentina -8.1% Source: Official sources of each country and World Tourism Organization. Actual variations in FOB exports and inward Brazil* -8.3% FDI flows between I Half 2008 and I Half 2009 and number of foreign visitors between Jan-Agu 2008 and Jan-Agu 2009. Venezuela -17.5% Note: * Data compared between I Quarter 2008 and I Quarter 2009 9
  • 9. IMPORTANT RESULTS IN SOCIAL INDICATORS
  • 10. IMPORTANT RESULTS IN SOCIAL INDICATORS UNEMPLOYMENT RATE FELL BY 4.2 POINTS BETWEEN 02/08 Unemployment 20 19.4 16 13.6 12.2 11.2 11.3 12 8 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009* Note: * Average January - October Source: DANE 11
  • 11. IMPORTANT RESULTS IN SOCIAL INDICATORS POVERTY FELL BY 7,7 POINTS BETWEEN 02/08 Poverty (%) 57 53.7 53 51.2 51 50.3 49 46 45 2002 2003 2004 2005 2006* 2007* 2008 *No data for 2006 and 2007 Source: DANE-DNP
  • 12. IMPORTANT RESULTS IN SOCIAL INDICATORS COLOMBIA: RANKED 2ND IN LATIN AMERICA BY ITS PROGRESS IN HUMAN DEVELOPMENT INDEX 02/09 Human Development Index Ranking Variation 02/09 Venezuela 0.042 Colombia 0.035 Peru 0.035 Mexico 0.029 Chile 0.029 Argentina 0.027 Brazil 0.023 0.000 0.010 0.020 0.030 0.040 0.050 Source: PNUD
  • 13. VIOLENCE LEVELS ARE DECREASING SURPRISINGLY
  • 14. HOMICIDES HAVE BEEN REDUCED TO A HALF IN SIX YEARS Total Homicides 33,000 26,540 28,837 28,000 23,000 20,167 16,140 18,000 9,591 13,000 9,321 8,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 I Sem I Sem 08 09 Source: Ministtry of Defens 15
  • 15. KIDNAPPINGS REDUCED FIVE TIMES IN THE LAST SIX YEARS AGO 4,000 Kidnappings 3,572 3,000 2,882 2,000 1,440 1,000 437 299 110 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 I Sem I Sem 08 09 Source: Ministtry of Defens 16
  • 16. HOMICIDE RATE PER 100 THOUSAND HABITANTS REDUCED TO A HALF Homicides per 100.000 habitants per year 62.7 65.8 70 60 50 40 33.0 30 21.5 20.7 20 10 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 I Sem I Sem 08 09 Source: Ministtry of Defens 17
  • 17. ÂżWhere are we coming from? ÂżWhat are we doing? ÂżWhere are we going next?
  • 18. COLOMBIA EXPORT PLATFORM
  • 19. FROM PREFERENTIAL ACCESS TO 233 MILLION CONSUMERS IN 2002 TO ACCESS TO 1.4 BILLION CONSUMERS IN 2010 2002 2010 20
  • 20. IN 2010, COLOMBIA WILL BE NEGOTIATING 19 INTERNATIONAL INVESTMENT AGREEMENTS (IIA) WITH 39 COUNTRIES AND 21 DOUBLE TAXATION AGREEMENTS (DTA) WITH 22 COUNTRIES
  • 21. 2002 2010
  • 22. COLOMBIA: THE MOST “BUSINESS FRIENDLY” COUNTRY IN LATIN AMERICA, ACCORDING TO THE WORLD BANK (2010)
  • 23. World Country Doing Business Ranking Variation, 2007-2010* Ranking (2010) (Change in positions) 37 Colombia Colombia 42 49 Chile Peru 9 51 Mexico Panama 4 Mexico -8 56 Peru Brazil -8 77 Panama Paraguay -12 114 Uruguay Venezuela -13 Ecuador -15 118 Argentina Costa Rica -16 121 Costa Rica Argentina -17 124 Paraguay Chile -21 Uruguay -50 129 Brazil 138 Ecuador -60 -40 -20 0 20 40 60 177 Venezuela Colombia has been named as a Top 10 reformer for the last 4 years Source: Top Reformers Report, World Bank *Positive figures show improvements in business environment
  • 24. Strength of Investor Protection, 2010 Colombia Peru Chile Mexico Brazil Argentina Panama Ecuador Venezuela 0 1 2 3 4 5 6 7 8 9 Position ACCORDING TO THE WORLD BANK ON “DOING BUSINESS, 2010" COLOMBIA IS THE FIRST COUNTRY IN LATIN AMERICA THAT BEST PROTECTS INVESTORS Source: World Bank
  • 25. Global Competitiveness Index Ranking Variation, 2007-2009 (Change in positions) Brazil 16 Peru 8 Colombia 0 Panama 0 Argentina 0 Chile -4 Mexico -8 Venezuela -15 -20 -15 -10 -5 0 5 10 15 20 ACCORDING TO THE WORLD ECONOMIC FORUM ON “GLOBAL COMPETITIVENESS REPORT, 2009" DURING THE WORLD CRISIS COLOMBIA HAS REMAINED STABLE Source: World Economic Forum
  • 26. THE MOST COMPETITIVE FTZ’S IN LATIN AMERICA: 15% INCOME TAX AND ALLOWS SALES TO THE LOCAL MARKET
  • 27. 15% income tax. No import duties. Benefit from international trade agreements. Can also sell in domestic market. Permanent (PFTZ) Free Trade Zones Single-Company (SCFTZ)
  • 28. 66 FREE TRADE ZONES Zonas Francas Number of Approved Free Trade Uniempresariales 50 Zones Zonas Francas Permanentes 40 30 55 20 10 11 0 1958 - 2007 2007 - 2009 New FTZs in Figures Total New Investment (US$ 5.869 Million) Direct Jobs 43.355 Indirect Jobs 93.046 Source: Ministry of Trade, Industry and Tourism. The investment amounts required to obtain the Free Trade Zone status are calculated in Minimum Monthly Legal Wages (M.M.L.W). This information is presented in dollars using a US$1 = COP 2,000 exchange rate. For 2009, the M.M.L.W is COP 496.900. The M.M.L.W, as well as the exchange rate are subject to variations..29
  • 29. PERMANENT FREE TRADE ZONES (PFTZ)
  • 30. 1. PERMANENT FREE TRADE ZONES (PFTZ) Several firms installed in a FTZ already established. Requirements for industrial firms of goods and services Total Assets Investment Ammount Minimum direct jobs generation (US$) (US$ Million) 0 – 124,225 0 0 124,225 – 1.24 Million 0 20 1.24 – 7.45 Million 1.24 30 More than 7.45 Million 2.85 50 Source: Ministry of Trade, Industry and Tourism. The investment amounts required to obtain the Free Trade Zone status are calculated in Minimum Monthly Legal Wages (M.M.L.W). This information is presented in dollars using a US$1 = COP 2,000 exchange rate. For 2009, the M.M.L.W is COP 496.900. The M.M.L.W, as well as the exchange rate are subject to variations.. Back
  • 31. SINGLE-COMPANY FREE TRADE ZONES (SCFTZ)
  • 32. 2. SINGLE-COMPANY A single firm can get all FTZ advantages by FREE TRADE ZONES installing itself in any place in Colombia. (SCFTZ) Investment (US$ FTZ type AND direct jobs Million) Goods (1) 37.26 150 2.48 – 11.42 500 Services (2) 11.42 – 22.85 350 22.85 or more 150 Services – Ports (3) 37.26 20 SCFTZ Agribusiness (1) Each additional investment of US$ 5.9 million reduces 15 jobs of requirement. In any case, there must be generated at least 50 jobs. (2) For health services companies, 50% of jobs may be vinculated, not direct. (3) 50 indirect jobs can replace 20 direct jobs. Exchange rate: US$ 1 = COP 2,000. Minimum Monthly Legal Wages (M.M.L.W.) for 2009 is COP 496,900. Back M.M.L.W. and Exchange Rate are subject to changes.
  • 33. 2. SINGLE-COMPANY A single firm can get all FTZ advantages by FREE TRADE ZONES installing itself in any place in Colombia. (SCFTZ) Investment (US$ FTZ type Or related jobs to de production Million) Agribusiness 18,63 500 Subsectors which are eligible for FTZ status under agribusiness requirements Biofuels Meat and Fish Oil and grease products from vegetables and animals Dairy products Legume and fruits, prepared or preserved, tea, soup, vinegar, sauces and yeast* Coffee * According to the national statistics this products classification is called “products not SCFTZ in classified previously”. Southern Exchange rate: US$ 1 = COP 2,000. Minimum Monthly Legal Wages Colombia (M.M.L.W.) for 2009 is COP 496,900. M.M.L.W. and Exchange Rate are Back subject to changes.
  • 34. NEW SCFTZ REGIME IN FIVE PROVINCES OF SOUTHERN COLOMBIA
  • 35. Characteristics •Huila, Caquetá, Putumayo, Nariño and Cauca •No distinction between types of SCFTZs •Benefits are valid until April 30, 2010 •Time limit to execution of 100% of investment is 2 years. Requirements Investment Ans Direct Jobs US$ 1 Million 50 Back
  • 36. COLOMBIA OFFERS LEGAL STABILITY CONTRACTS TO GUARANTEE INVESTMENT PROJECTS
  • 37. Investments over US$1.78 million* (150.000 T.U)** Conditions Investor pays 1% premium based on the amount of the investment. 0.5% in unproductive periods. Period Up to 20 years maximum. Signed 61 legal stability contracts approved, 48 legal stability contracts contracts signed *The investment requirement is calculated with an exchange rate of COP $ 2000 = 1 USD. It is responsibility of the investor to calculate the investment requirement at the moment of submitting the application for the Legal Stability Agreement. ** One Tax Unit equivalent COP$ 23.763 or US$ 11,8 38
  • 38. OTHER INCENTIVES BY SECTOR: INCOME TAX EXEMPTION FOR UP TO 20 YEARS
  • 39. • Exemption for 30 years for companies that build or restyle hotels Tourism before 2018. Eco- Eco-tourism • Exemption for 20 years starting from 2003. Late yield • Exemption for 10 years after the start of production in crops planted between 2003 and 2013. crops • Permanent exemption for investment in new forest plantations, Forestry sawmilling and timber plantations. • Publishing of books, magazines, booklets or collections of scientific Editorial or cultural characteristics are exempt until 2013. New medicinal • Exemption for 10 years for products manufactured in products and Colombia with high scientific and technological software research content, starting from 2003. Renewable • Exemption for 15 years for sale (by the generators) of electricity based on wind resources, biomass or energy agricultural waste. • Exemption for 15 years starting from 2003 to provide River transport services in slabs and boats with net weight below 25 tons.
  • 40. ÂżWhere are we coming from? ÂżWhat are we doing? ÂżWhere are we going next?
  • 41. TO IDENTIFY POTENTIAL WORLD CLASS SECTOR, WE ANALYZED THE GLOBAL OPPORTUNITIES AND LOCAL STRENGTHS
  • 42. POTENTIAL WORLD CLASS SECTORS Encourage and improve production of Promote development of competitive products & services NEW & EMERGING ESTABLISHED SECTORES SECTORS 43
  • 43. BPO&O
  • 44. Competitive • Call center agent cost: USD 441/month Operational Cost • 27,000 biz grads and 13,000 engineers per year. Human Resource • Seven cities > 500,000 inhabitants. • Neutral Spanish accent • USD 1 billion market, growing 42% in the last High growing market three years. • Reliable & redundant internet infrastructure: 5 Infrastructure submarine cables 212.5 Gbps capacity. • Free Trade Zone regime: 50% off Income Tax Business Environment and sales to the local market. Back
  • 45. IT SERVICE & SOFTWARE
  • 46. Competitive • The lowest labor cost in LATAM: up to 284% for Operational Cost System Engineering careers. Human Resource • 13,000 engineering and technical graduates from IT-related fields per year. • A growing market of US$ 270 billion: almost 12,5% in 3 years. High growing market • Datamonitor considers Colombia to be a Tier 2 country in L.A. • US$ 4 billion expected investment in Infrastructure telecommunications for 2010. • Computer prices under US$1,000 without VAT • National Government programs to enhance Business Environment competitiveness and development in this specific industry. Back
  • 47. HEALTH TOURISM
  • 48. • Eye laser surgery Innovation Innovation • Pioneer Program in reproduction immunology • 1st pacemaker of the world Business • First Latin American country to do business, according to Doing Business 2010 ranking - World Bank Environment • 4 consecutive years as one of the top 10 reformers in the world • Health system is the best in Latin America and number 22 in the world. • Colombia spent 7.5% of GDP on health and 13.9% of public spending Infrastructure • More than 600 weekly flights to Colombia connecting North, Central and South America and Europe Human Resources • 3,000 general doctors undergraduate per year • Hospital San Vicente de Paul (Antioquia) 1 Free Trade Zone – status granted • Clinica Portoazul (Barranquilla) -1 free trade zone approved ( Free Trade Zone pending status recognition) • Clinica Los Nogales (Bogota) , Promotora de la Laguna (Antioquia), Sociedad Medica de Sabaneta (Antioquia) - 3 clinics (in process to be recognized as a free trade zone) Back
  • 49. COSMETICS AND PERSONAL CARE PRODUCTS
  • 50. World Leader • The second largest country in number of species of plants in Biodiversity Human • More than 200.000 professionals and 30.000 technicians available Resources to work in the sector • In the last 6 years exports has tripled, arriving to US$735 million Export and a positive trade balance of US$ 300 million Platform • Trade Agreements with 44 countries reaching to cover 1.2 million consumers. • The highest female participation in the workforce in Latam (44.6%) Female Labor • Colombian women cosmetics pocket share duplicates the Participation European women (as proportion of their income). Fourth Market in Latin • 2008 Production: USD 2,361 M; CAGR 4.4% in the last 6 years. America • The masculine market is expected to grow 20% per year. Back 51
  • 51. BIO-FUELS
  • 52. •Single enterprise Fee Trade Zone. Tax Incentives • Income tax exemption on late yield crops during ten years • 16,5M ha (6.1 M acres) suitable for biofuel Land Availability production. • World’s fifth palm oil producer. (3,6 MT.) Raw Materials • Highest sugar productivity in the world. (12,78T/crop Availability year) • E20 B20 by 2020. • Ethanol local consumption (490M liters), supplied only Internal Demand in a 66% by local production • Biodiesel local consumption (55M liters) supplied in 20% • 34M Ha (85 M acres) available for agricultural and Environment & livestock development. No need to cut down rain forest Food vs. Fuel • Green seal” production (environmental and social practices). Back 53
  • 53. FORESTRY
  • 54. Land Availability •17 M ha (42 M acres) suitable for timberland Diversity • More than 10 forestry species with high value added • Photosynthesis throughout the year Production • Higher yield species advantage • Shorter life cycles • Weather advantages Biotechnology and • High quality forestry germplasm base with plant material genetic production capacity of 52,000 ha (131,000 acres) per development year • High quality forestry germplasm base with plant material Tax Incentives production capacity of 52,000 ha (131,000 acres) per year Back 55
  • 55. AUTOMOTIVE
  • 56. Dynamic Industry • Colombian exports of auto parts increased by 46% in (06-08) Excellent geo- economic position • Access to a Motor Vehicle Fleet of over 37 million units (FTAs) Qualified and competitive cost • Annually purchase over U$600 million in auto parts to local for human producers resources • The production of vehicles increased by 46%.(02-08) Recurso Humano • Automotive industry workers salary cost : 1.73 US$ /hour (2007) • Deposits enabled for transformation or assembly assure free custom duties for auto parts and material Advantages • Well-known auto parts companies are established in Colombia (12) Back
  • 57. Electric Power
  • 58. Energy • Best energy infrastructure in Latam. (IMD) • Third country in future energy supply in Latam. Infrastructure (IMD) Structure of • All entities in one system. (SIM) Energy Sector • 2nd country with best access to water in Latam • 742,725 watersheds Hydro-energy • 52,075 m3 /seg per year potential • Annual rainfall of 3,000 mm • Precipitation of 1,313 km3 • Average yield of 58 lt/seg/ km2 • Daily Average of 4.5 Kwh/m2. Solar-energy • Six Colombian states are above 1,200 Kwh/m2/year potential and 3 above 1,600 kwh/m2/year. Geothermal • More than 300 hot springs potential Back 59
  • 59. TEXTILES, APPAREL, FASHION AND DESIGN
  • 60. • Over 100 years of experience Experience in • Coltejer founded in 1907 textile market • Tejicondor and Fabricato (founded in 1920) • Colombia has the infrastructure to produce and export. Infrastructure • fibers, yarns, wovens and apparels . • There are more than 800,000 direct and indirect jobs . • Textiles exports´ share is 2.8% of the total exports and 12% of non Textile exports traditional exports. • Imports of raw products reached 81% of the total textile and Imports apparel products in 2008 Back
  • 61. INFRASTRUCTURE
  • 62. PUBLIC INFRASTRUCTURE PROJECTS ACCOUNT FOR US$ 21 BILLION • Projects to the construction, operation and maintenance Carreteras of main access roads of the country: • “Autopista de las AmĂ©ricas” Road Concession: 800 km of existing roads • “Autopistas de la Montana” Road Concession: Total length 1000km Puertos y • New ports development: Aguadulce (USD 103 M) and Aeropuertos Contecar (USD 297 Million) • Integration and Concession of Northeast Airports (USD 107 Million) Ferrocarriles • "Central Railway System“ Railway Concession: 1.045 km, estimated investment of USD 895 million Back 63
  • 63. GRAPHIC COMMUNICATION INDUSTRY
  • 64. • Global production process consisting of pulp production (U.S. $ 29,300 million), production of Sector paper and board (U.S. $ 87,000 million), design, printing and other graphic services (U.S. $ 582,000 million) and Marketing (NA) • Composed by Packaging and Labels (U.S. $ 238 million), advertising and commercial ($ 419 million), Editorial (U.S. $ 230 million), and newspapers and periodicals (ND). Industry in Colombia • Average annual income of $ 40 million in large players segment. • Annual growth above 11%, quite remarkable when compared with global industry growth (2.7%) • Exports grew 10% from 2006 to 2008. • Leading exporter of books in Latin America. International Trade • Second largest exporter in Latin America after Mexico • Only country in Latin America with a significant positive trade balance Back
  • 65. CONCLUDING REMARKS In the last few years, Colombia has experienced a marked improvement in its macroeconomic performance, internal security and stability for businesses. As a result social indicators have improved dramatically.
  • 66. CONCLUDING REMARKS Colombia has achieved a solid structural growth, based on an increase in the investment rate and higher productivity levels
  • 67. CONCLUDING REMARKS The country has guaranteed its external funding for 2009 trough multilateral institutions such as IADB, WB and CAF.
  • 68. CONCLUDING REMARKS Colombia is aggressively negotiating trade and investment agreements expanding its markets and becoming more attractive to investors.
  • 69. CONCLUDING REMARKS The Colombian Government is committed to generating the most favorable conditions for domestic and foreign investment instruments such as the free-trade zones regime and legal stability contracts.
  • 70. www.inviertaencolombia.com.co · www.colombiaespasion.com · www.mincomercio.gov.co