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Official VisitMinister of Foreign AffairsOriental Republic of UruguayDr. Luis Almagro LemesNovember, 2012
2        Uruguay at a glance   Investment Promotion Regime       Uruguay – Japan TradeSome Japanese Companies in Uruguay  ...
3Uruguay at a glance
4                                               Uruguay has a privileged geographicalStrategic location and modern infrast...
5                                                   …with free access to a large market:Strategic location and modern infr...
6                                          Social and political stability                                                 ...
7                                           Uruguay’s sustainable growth                                 Uruguayan GDP (An...
8                                                               A country that attracts more FDI                          ...
9                                               …with increasing exports…                                                 ...
10                                             Exports by destinations                                   Exports of goodsM...
11                         …and increasing access to more marketsMacroeconomic strength
12                                                                        Modern infrastructureStrategic location and mode...
13                                                 Leading country in communicationsStrategic location and modern infrastr...
14                                                  High educational levelFavorable business environment                  ...
Highly Competitive Human Resources                                          Best Value For Money                          ...
16Investment Promotion Regime
17                                         Investment Promotion Regime                                               Compl...
18                                              Investment Promotion Regime                                               ...
19                                          Investment Promotion Regime                                    Calculating for...
20                                       Investment Promotion Regime                                                      ...
21                                                       Industrial ParksFavorable business environment                   ...
22                                      Track record of Investment Projects                                 Projects appro...
23                                             Temporary Admission                                                      (E...
24                                                                          Free Zones                                    ...
25                                               Free Ports and Airports                                 • Only free ports...
26     Uruguay – Japan TradeSome Japanese Projects in Uruguay
27                           Trade Balance Uruguay-Japan                                                              U$S ...
28                                      Main Exported Products                                                            ...
29                                      Main Imported Products                                                            ...
30                     Examples of Japanese companies                           present in Uruguay                      RI...
31Investment Opportunities
Infrastructure
33                                              Regasification Plant                Brief description                 Int...
34                Punta del Este Convention and Trade Fair Centre                Brief description                 Public...
Private Public Partnership (PPP)
36                                 Public Private Partnership (PPP)                             PPP LawRegulatory Framewor...
37                             PPP Adjudication Process        Initiative:                              Studies          B...
Underway Projects (PPP)
39                                          Underway Projects (PPP)                           1      Prison System        ...
40                                          Underway Projects (PPP)                          22 Highways number 21 and 24U...
41                                         Underway Projects (PPP)                           3 Deep Water Port            ...
Future tenders (PPP) Project Opportunities                 2012 - 2015
National Highway Network Road Projects                      Increasing traffic of transported tones due to fast developmen...
44                                                            Railway                      Railway must be refurbished in ...
45                       In summaryIt is an exciting time to do business in Uruguay:1.Economy is growing at high and susta...
Thank you!
Presentación Uruguay inglés
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Presentación Uruguay inglés

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  • Muy competitiva es también la legislación referida a las Zonas Francas, exentas de impuestos actuales o a ser creados en el futuro.
  • Transcript of "Presentación Uruguay inglés"

    1. 1. Official VisitMinister of Foreign AffairsOriental Republic of UruguayDr. Luis Almagro LemesNovember, 2012
    2. 2. 2 Uruguay at a glance Investment Promotion Regime Uruguay – Japan TradeSome Japanese Companies in Uruguay Investment Opportunities
    3. 3. 3Uruguay at a glance
    4. 4. 4 Uruguay has a privileged geographicalStrategic location and modern infrastructure location… Uruguay A strategic location, with the best connections to establish a logistics base in the heart of the richest region in the continent
    5. 5. 5 …with free access to a large market:Strategic location and modern infrastructure MERCOSUR Indicators Uruguay MERCOSUR Access to a large and Population (million) 3.4 276 growing consumer market due to our open economy Area (sq km thousands) 176.2 12.795 and our integration to the GDP 2011 46.7 3,307 MERCOSUR (US$, billion) GDP per capita 2011 (US$) 14,213 11,982 GDP growth rate 5.7% 3.7% 2011 (%) Source: Uruguay XXI based on data provided by Central Banks and National Statistics Institutes
    6. 6. 6 Social and political stability Uruguay in South Uruguay in the Ranking America World Transparency of government policymakingSocial and political stability 2 20 (World Economic Forum 2012) Democracy Index 1 17 (The Economist Intelligence Unit 2011) Economic Freedom 2 29 (Heritage Foundation 2012) Political Stability 1 49 (World Bank [WGI] 2010) Index of political and economic transformation 1 4 (Bertelsmann Foundation 2012) Global Peace Index 1 21 (Institute for Economics & Peace 2011) Business Climate Index 1 -- (Getulio Vargas Foundation & IFO 2012) Quality of Living 1 77 (Mercer Quality of Living City Ranking 2011)
    7. 7. 7 Uruguay’s sustainable growth Uruguayan GDP (Annual Variation in %)Macroeconomic strength Between 2005 and 2011 the average annual growth rate was of 6% Uruguayan GDP per capita (PPP) US$ Source: Uruguay XXI based on data provided by the Central Bank of Uruguay and the IMF (WEO September 2011)
    8. 8. 8 A country that attracts more FDI FDI in South America (% of GDP - 2011)Macroeconomic strength US$ millions FDI in Uruguay FDI/GDP (%) Leading sources and recipient sectors of FDI 2001-2010 2500 8% 2289 2191 2106 2000 6% FDI FLow FDI/GDP 1529 Cattle Raising, 1493 Construction Agriculture and 1500 1329 Forestry 24% 23% 4% 1000 847 Manufacturing Financial Industry Brokerage 2% 11% 8% 500 416 297 332 194 Hotels and restaurants 0 0% 6% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: Uruguay XXI based on data provided by Central Banks
    9. 9. 9 …with increasing exports… Exports of goods and services (US$ million) Exports of servicesMacroeconomic strength Financial Other services Other company 4% 3% services 5% IT 5% Logistics 19% Tourism 64% Source: Uruguay XXI based on data provided by the DNA and BCU (Balance of Payments)
    10. 10. 10 Exports by destinations Exports of goodsMacroeconomic strength Brazil Other Meat China 21% 17% Argentina Milling Soy Russian Federation products 10% Venezuela 3% Fur, 3% Germany Wood pulp Wool, 3% 10% United States of America Plastics, 3% Spain Wood products Cereals Paraguay 4% 10% Automobile Dairy Mexico products s Auto parts 6% 9% 0 500 1000 1500 2000 Source: National Customs Administration
    11. 11. 11 …and increasing access to more marketsMacroeconomic strength
    12. 12. 12 Modern infrastructureStrategic location and modern infrastructure • World-class port facilities in Montevideo, an excellent regional hub for the Southern Cone • Uruguay has the most concentrated road network in Latin America • New airport, new ring road in Montevideo and a new ferry port in Colonia • Reliable electricity supply (mostly from renewable resources) Quality of Electricity Supply (ranking) New USA Spain Uruguay Hungary Chile Italy Brazil Argentina Paraguay Zealand 32 34 35 37 39 42 47 69 96 117 Source: World Economic Forum, Global Competitiveness Report 2010-11
    13. 13. 13 Leading country in communicationsStrategic location and modern infrastructure Mobile Argentina Chile Internet telephone subscribers subscribers (ranking) (ranking) 19 53 Uruguay Uruguay Chile Brazil 26 56 Brazil Colombia 47 61 66 70 Source: World Economic Forum, Global Competitiveness Report 2011-12. Ranking for 142 countries Uruguay is the most advanced country in Latin America according to the Information and Communication Technology Index (ICT), developed by the International Telecommunication Union in 2011
    14. 14. 14 High educational levelFavorable business environment Tertiary Education Adults Literacy Rate • The State provides free education up Enrollment (%) to and throughout College and invests (ranking) Ireland 99.0 4.5% of its GDP in education USA 6 Switzerland 99.0 • 100% of high school students have Spain 18 UK 99.0 Argentina 21 completed at least three years of USA 99.0 English and two years of Computer Uruguay 25 Chile 98.6 Science Ireland 33 Uruguay 98.3 • 21% of university students are UK 36 Argentina 97.7 developing careers on Accounting, Chile 38 Finance and Business Administration Switzerland 51 Spain 97.7 • 17% of university students are Brazil 68 Paraguay 94.6 developing careers in Science and Paraguay 76 Brazil 90.0 Technology Source: The World Economic Source: United Nations, Human Forum. The Global Development Reports 2011 Competitiveness 2011-12
    15. 15. Highly Competitive Human Resources Best Value For Money Comparison of Net annual wages costs: Total Annual Costs for a Business in Uruguay (US$): Customer Service 8,8003. Strategic Location Executive Accounting 12,800 Assistant Systems 86,273 Manager HHRR Manager 86,610 Financial 112,720 Manager Production 115,199 Manager Business 124,030 Manager CEO 189,336 Source: Own compilation based on data from the Wages Council and the PwC Remuneration Survey, February 2012. Uruguay = 100
    16. 16. 16Investment Promotion Regime
    17. 17. 17 Investment Promotion Regime Complete legal framework for investmentsFavorable business environment • The State recognizes the important role of FDI and maintains a favorable business environment • Uruguay has a significant background for attracting investments in agriculture, industry, services and infrastructure • Investment Law (No. 16.906) – January 1998:  Foreign and domestic investors are treated under equal conditions  Prior authorization or registration are not required  There are no restrictions to capital transfers or profits abroad • In 2008, the Government created a one-stop shop to assist investors by establishing objective criteria for granting tax exemptions, this was successfully accomplished through an efficient, transparent, simple and non-arbitrary mechanism
    18. 18. 18 Investment Promotion Regime Tax benefitsFavorable business environment • Exemption from Corporate Income Tax* between 20% and 100% of the invested amount and for a minimum period of three years, depending on the evaluation of the project by a series of indicators Indicators and weight coefficients o Employment generation: 30% o Territorial decentralization: 15% o Increase in exports: 15% o Cleaner production or Investment in R&D: 20% o Sector Indicator: 20% * Corporate Income Tax exists only at national level (25%)
    19. 19. 19 Investment Promotion Regime Calculating formula for the Corporate Income Tax benefitFavorable business environment • To be eligible for the benefit, companies must attain at least 1 point, ensuring a floor of 20% exemption from Corporate Income Tax Total weighted score Exemption 2 29% 4 47% 6 64% 8 82% 10 100%
    20. 20. 20 Investment Promotion Regime Other tax benefitsFavorable business environment • Exemption of Wealth Tax on civil works for eight years in Montevideo and ten years in other departments, and on fixed assets throughout their life • Exemption of Import Taxes and Fees on fixed assets, declared non-competitive with the domestic industry • 100% refund of VAT, on the domestic acquisition of materials and services for civil works
    21. 21. 21 Industrial ParksFavorable business environment • The users of industrial parks are eligible for the benefits specified in Law No. 16,906 • Additional benefits: – The total weighted score will be increased by 15% – They will have a 5-year tax credit for the employer’s social security contributions of the new job positions created by the project • At this moment there are three industrial parks with authorization: – Parque Industrial Alto Uruguay – Parque Industrial de Juan Lacaze – Parque Industrial Zona Este
    22. 22. 22 Track record of Investment Projects Projects approved by the Commission for the Implementation of the Investment Law (COMAP)Favorable business environment Projects approved by sector (2011) In the last five years, the amount of projects presented to the COMAP multiplied by ten
    23. 23. 23 Temporary Admission (Export incentive)Favorable business environment • Temporary Admission is the introduction into the country of certain goods (raw materials, inputs, intermediate products, etc.) relieved totally from payment of import duties and taxes, with the specific purpose to be re-exported within 18 months, after having been subject to certain value added process, with effective occupation of labor. • The Temporary Admission regime also applies to machinery and equipment from any source, entering temporarily for an specific use, maintenance, repairing or upgrade.
    24. 24. 24 Free Zones • Users 100% exempt from:Favorable business environment • Corporate Income Tax (IRAE) • Wealth Tax • Import Tariffs • Any other created tax, or that might be created in the future * • Users may develop industrial, commercial or service activities • Business parks focused on technology and services which operate in Montevideo: • Aguada Park • Zonamérica • Parque de las Ciencias • WTC Free Zone * Companies which operate under the free zone regime must pay social security taxes for their Uruguayan employees.
    25. 25. 25 Free Ports and Airports • Only free ports on South America’s Atlantic coastFavorable business environment • Free transit of goods, no authorizations or formal procedures are required • Within port facilities, goods are exempt from: o all import taxes or charges o all domestic taxes (e.g. VAT) • Services rendered are exempt from VAT • Foreign registered companies are exempt from wealth tax and income tax • Diverse operations may be performed on the merchandise, including warehousing, repackaging, relabeling, classification, grouping, ungrouping, consolidation, deconsolidation, manipulation or fractioning as well as value adding tasks that do not modify the nature of the product
    26. 26. 26 Uruguay – Japan TradeSome Japanese Projects in Uruguay
    27. 27. 27 Trade Balance Uruguay-Japan U$S millions 140 120Uruguay - Japan 100 Exports 80 Imports 60 Trade Balance 40 20 0 2009 2010 2011 January - September 2012 -20 Source: National Customs Administration Note: statistics include goods in transit
    28. 28. 28 Main Exported Products U$S million Code Product Description 2012 2009 2010 2011 (January - September)Uruguay - Japan 3302 Odoriferous substances or odoriferous substances-based mixtures 72,73 100,27 72,98 56,67 3824 Agglutinating preparations for molds or foundry cores 5,67 10,80 7,94 5,79 5105 Combed or carded wool and fine or ordinary hair 2,42 3,60 4,81 2,62 1505 Wool and its derived oily substances, lanolin 1,34 2,51 1,36 2,08 0303 Frozen fish 0,24 1,62 0,92 0,65 2402 Tobacco, cigarettes or substitutes 0,20 0,19 0,38 0,28 2009 Fruit juices, unfermented and without alcohol 0,00 0,00 0,24 0,23 1201 Soya beans 0,00 0,00 0,05 0,13 2309 Animal feeding preparations 0,13 0,14 0,14 0,10 2204 Fresh grapes wine 0,02 0,03 0,02 0,09 Sub Total 0,62 0,71 2,33 0,54 Total 83,39 119,89 91,18 69,18 Source: National Customs Administration Note: statistics include goods in transit
    29. 29. 29 Main Imported Products US$ million 2012 Code Product Description 2009 2010 2011 (January - September)Uruguay - Japan 4002 Synthetic rubber and factitious rubber derived from rubber oils 8,40 19,71 17,96 15,59 8703 Tourism automobiles and other vehicles designed to transport people 18,90 22,08 16,19 8,42 9018 Medicine, surgery, dentistry or veterinary instruments and apparatuses 2,24 2,21 1,81 3,00 4011 New rubber tires 3,22 3,21 4,33 2,89 8443 Printing devices and printing auxiliary machines 2,66 3,55 5,13 2,71 3926 Plastic products 1,60 1,96 2,60 2,68 8525 Radiotelephony, radiotelegraphy, broadcasting or television transmitters 0,50 0,67 0,74 2,52 8711 Motorcycles mopeds and velocipedes 2,01 1,57 2,14 1,99 8482 Ball, roller or needle bearings 1,69 1,95 2,21 1,89 0303 Frozen fish 2,00 2,81 2,35 1,71 Sub Total 30,02 34,93 40,66 27,89 Total general 73,24 94,65 96,10 71,29 Source: National Customs Administration Note: statistics include goods in transit
    30. 30. 30 Examples of Japanese companies present in Uruguay RICOH BonsetJapanese companies  Established in 1993 a Regional  Plant under construction to produce heat Distribution Center in Uruguay shrinkable film  Ricoh’s RDC occupies 400 m2 in  Total investment: US$ 20 million Zonamerica Free Zone Takata Corporation Yazaki  Established in 2006.  Started operations in  Electrical harnesses May 2012  Two plants in Uruguay Car’s Airbag plant  Total investment: US$ 10 million  Total investment: US$ 6 million  400 employees  1,400 employees
    31. 31. 31Investment Opportunities
    32. 32. Infrastructure
    33. 33. 33 Regasification Plant Brief description  International tender for companies interested in the construction and operation of a LNG Regasification PlantOpportunities  Regasification capacity of 10 million cubic meters expandable up to 15 million.  Construction of breakwaters, piers, floating deposits, combined unit of storage and regasification  Operation and Construction under BOOT modality (Build, Own, Operate, Transfer). Total Investment: US$ 400 million (estimated) Tender: international Stage: Until 1st of October 2012 the qualification process will take place. Afterwards offers from the short listed companies will be received. The tender process will be ending by December 2013 and construction is estimated to be concluded by the end of 2014.
    34. 34. 34 Punta del Este Convention and Trade Fair Centre Brief description  Public tender for the construction and operation of a Convention Center and Fairground in Punta del EsteOpportunities  First stage 6,000 m2 expandable up to 18,000 m2  The contractor company will receive: • Project by Carlos Ott, a well-known Uruguayan architect with an important international career • A cash contribution for construction financed by the Government of up to US$ 23,150,000 • Operation Rights of the Convention Center and Fairground Total Investment: US$ 40 million (estimated) Tender: international Stage: Deadline for bidding 30th of November 2012. Construction starts in 2013.
    35. 35. Private Public Partnership (PPP)
    36. 36. 36 Public Private Partnership (PPP) PPP LawRegulatory Framework (PPP) In July 2011, the Uruguayan Legislative Branch passed the Public Private Partnership (PPP) law that established the regulatory framework based on world’s best current practices PPP Contracts Contracts of Government with Private companies in which during a limited time frame the private party is assigned for the Design, Build, Finance and Operation (DBFO) of an infrastructure project Type of Projects  Transport Infrastructure: Road Network, Railway, Ports and Airports  Energy infrastructure  Waste treatment & disposal infrastructure  Social Infrastructure: Schools, hospitals, prisons
    37. 37. 37 PPP Adjudication Process Initiative: Studies Bidding: Evaluation Approval Bidders Offers Public or Competitive Adjudication Studies (MEF/OPP) Evaluation Analysis Private Dialogue The Technical Commission will order the Launch a public Any PPP Before offers. With the bidding process Legal entities The criteria toprocedure may launching a PPP Unit The Ministry of using any national or evaluate thestart within the project a approval, a Finance (MEF) competitive foreign. offers is stated Public technical, legal, provisional and the Office method. The Accredited in the contractAdministration economic and adjudication will of Budgeting COMPETITIVE financial and and linked to but also as a financial be done. After and Planning DIALOGUE technical quality, price, private evaluations this the (OPP) have to method may be solvency timeframe, initiative. The must be done Tribunal de approve the used for Incompatibilities costs, technicalprivate initiative 1- Profile Cuentas evaluation complex : entities aspects, etc. has to be 2-Elegibility intervenes and studies and the projects in involved in the Done by a presented at 3- Feasibility the winner bidding bases. order to define project among Technical CND 4-Value for presents the technical others. Commission money missing data. aspects. The final adj. is done.
    38. 38. Underway Projects (PPP)
    39. 39. 39 Underway Projects (PPP) 1 Prison System Brief descriptionUnderway projects (PPP) Design, construction, equipment and financing as well as some activities such as cleaning, preventive maintenance, food, laundry services, parks maintenance among others for 2,000 prisoners. Health, police services and rehabilitation of the prisoners will be run by the State. Initial Investment: US$ 80 million (estimated) Total Investment: US$ 320 million (in 20 years, estimated) Tender: international Term of contract: 22.5 years Stage: Draft of contract since August 2012 in OPP and MEF for approval. Bidding process expected soon.
    40. 40. 40 Underway Projects (PPP) 22 Highways number 21 and 24Underway projects (PPP) Brief description Rehabilitation and maintenance of 192 km of existing road. Contract mode: Design, Build, Operate and Transfer. Initial Investment: US$ 70 million (estimated) Total Investment: US$ 200 million (in 20 years, estimated) Tender: international Term of contract: 20 years Stage: August 2012 approved by OPP and MEF. Bidding process expected soon.
    41. 41. 41 Underway Projects (PPP) 3 Deep Water Port Brief descriptionUnderway Projects (PPP)  Design and Build a deep water port (greenfield) in the coastline of Rocha department.  Increasing demand of cargo transport  Multipurpose port that complements the ports of the Paraguay - Paraná seaway and the Regional Ports  Will handle National and Regional Cargo Total Investment: US$ 1,000 million (estimated) Tender: international Stage: June 2012 approved to be eligible by decree 196/012.
    42. 42. Future tenders (PPP) Project Opportunities 2012 - 2015
    43. 43. National Highway Network Road Projects Increasing traffic of transported tones due to fast development of Agriculture, Cattle and Forestry sectors. Need to have an efficient connectivity among the producing and transportation terminals.Opportunities (PPP) Route 3 North ARTIGAS BRAZIL Routes 4 & 31 SALTO RIVERA Routes 6, 7 & 8 Route 26 PAYSANDÚ TACUAREMBÓ ARGENTINA CERRO LARGO RIO NEGRO DURAZNO TREINTA Y Routes 21 & 24 TRES Route 14 SORIANO FLORES FLORID LAVALLEJA Routes 13 & 15 A ROCHA Colonia and Juan Lacaze COLONIA SAN port access roads JOSÉ CANELONES ATLANTIC OCEAN MALDONADO Port of Montevideo MONTEVIDEO access roads LA PLATA RIVER
    44. 44. 44 Railway Railway must be refurbished in order to increase competitiveness in cargo transportation. Of the 3,000 km slightly more than 50 % is currently under operation.Opportunities (PPP) Required Investment Segment US$* Chamberlain - 100,000,000 Algorta - Fray Bentos Algorta - 55,000,000 Paysandú - Salto Piedra Sola - 15,000,000 Tres Árboles Toledo - 90,000,000 Treinta y Tres TOTAL 260,000,000 * Estimated values 2011 - 2015. Source MTOP.
    45. 45. 45 In summaryIt is an exciting time to do business in Uruguay:1.Economy is growing at high and sustainable rates, as well asdomestic and foreign investment2.We are a safe, reliable and stable country, both socially andpolitically, with one of the best per capita GDP in Latin America3.Our human resources are among the best qualified in LatinAmerica, and Uruguayan entrepreneurs view the world as theirmarket, making them ideal partners for joint projects4.Investment promotion regimes are highly competitive andprofitable.
    46. 46. Thank you!

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