An ethical economy An ethical management of our economy is at the center of our country development. Our government has decided to bolster the rights of our society and the environment, through innovative, clear regulations that encourage efficient business operations, while ensuring respect for nature, our workers and our society as a whole. Hoja para Texto Información extenso Área cuadroso información
the human being is not just another factor in production, it is in itself the reason for production
Necessary reform of the State Actions Results Constituent Assembly Tax amendments Elimination of extreme outsourcing Production Code Modern institutional framework Fiscal stability Fair labor relations Incentives and a clear framework for investment Área cuadroso información
Development model and the role of the State The Production Code sets out a new, modern legal framework, encouraging private investment. The code specifically highlights the Government's model for economic development and transformation of our production matrix Monetary policy based on dollarization. General incentives for private investment to make our country more competitive. Plus additional Incentives in specific sector with high potential to serve internal and external markets and to shift in productive matrix from the export of primary products to that of added value products. To consult list of sectors go to www.mcpec.gob.ec Área cuadroso información
Protection for Private Investment Legal incentives Investment contracts Safe investment Agreed arbitration Área cuadroso información Production and Investment Code allows for the protection of private investment with all these instruments.
An intelligent investment Korea 7 Strategic reasons Área cuadroso información Mega-diverse country and tourism Growing and stable economy Strategic location and logistic axis Human talent 5. Access to Andean and world’s markets.. 6. Protection and Incentives for the investor. 7. Dollarized economy.
ECUADOR: Why invest in Ecuador? The most megadiverse compact country of the world, rich and diverse culture and unique tourist attractions 1
Hoja para Texto Información extenso Área cuadroso información The eco-centre of the world: the most compact an mega diverse per m2
The eco-centre of the world : multiple peoples of different cultures live in peace
Sangay National Park Cuenca and Quito: Cultural World Heritage
Ecuador International Living´s Top 1 country to Retire in 2010 In terms of cost of real state, special benefits, cost of living, culture, health, infrastructure, safety/stability and weather. Source: International Living magazine
ECUADOR: Why invest in Ecuador? 2 A growing, sound and stable economy
NON OIL GDP GROWTH Provisional data Source: BCE
Public Investment Evolution/ Nominal GDP Capital expenses of SPNF/GDP Others from capital Gross fixed capital formation
Dynamism of Investment: FBKF/Nominal GDP Gross fixed capital formation Capital expenses of SPNF/GDP Non-financialpublic sector
Solvency: Debt/GDPSince 2002, the ratio between public debt to GDP has been decreasing, placing the DEBT/GDP ratio as favourable compared to the levels of other countries in the region. Internal Public Debt External Public Debt External Public Debt/GDP Internal Public Debt/GDP Source: Central Banks of each country Source: BCE
Manufacturing: Annual growth per quarter(Excludes petroleum refinement) 8,0% growth in the first, second, and third quarters of 2010 compared with 2009. Source: BCE
Manufacturing: Annual growth per quarter(Excludes petroleum refinement) 8,8% growth in the first, second, and third quarters of 2010 compared with 2009. Source: BCE
Dynamic private consumer activity Ecuador has a vigorous economy, backed by an increase in disposable income and by credit growth. Source: Central Banks of each country
Lowest unemployment rate of the Andean Region National Urban Rural Source: INEC, ENEMDUR 2003-2010 Production: MCDS-SIISE
Less leveraged economy: Businesses, households, Government, IFI’s Ecuador offers a solid and solvent economy with low levels of public and private debt. Foreign investment should complement domestic investment, thus reverting the substitution (crowding out) process. External Private Debt/GDP Credit /GDP Source: Superintendence of Banks
A healthy financial system The Ecuadorean financial system is a healthy one with robust growth in capital formation and credit allocation. LOAN PROTFOLIO OBLIGATIONS WITH THE PUBLIC OBLIGATIONS WITH THE PUBLIC LOAN PROTFOLIO Source: Superintendent of Banks
Big opportunities for ethical and responsible investment. * Relation between total volume of foreign debt and GNI (information from countries as of 2009) Source: World Bank
ECUADOR Airport Development Area Surface : 70 Has. ECUADOR IS A STRATEGICLOCATIONFORASIAN AND MIDDLE EAST INVESTORS:
Infrastructure Ecuador: Public Investment, by sector 2007-2010 USD$ agricultural infrastructure Road infraestructure
Ground transport infrastructure National Airport International Airport Ship piers (in study) Connectivity in Ecuador Fuente: MINTUR (Plan de Marketing Internacional) Source: Ecuador´s Ministry of Tourism
Access to Regional and Global Markets • Agreement with Mercosur Provides Ecuador with the potential to export approximately 4.000 products with no tariffs to Brazil and Argentina. • GSP PLUS – European Union Provides Ecuador with the potential to export approximately 7.800 products with no tariffs.
6 Incentives for Private Investment Área cuadroso información
General Incentives for investments Reduction from 25% to 22% on the Income Tax (IT)rate: 1% each year from the date the Code will be in force Exemption from the minimum Income Tax calculation for incremental expenses new employment or salary increases, acquisition of new assets for productivity and technology improvements and cleaner production. For new companies: exemption from the minimum tax payment for the first 5 years. Exemption from Currency Outflow Tax (ISD)for payments sent overseas to pay foreign loans, with a term of over one year and at a rate not higher than that authorized by the Ecuadorean Central Bank (BCE). Área cuadroso información
General Incentives for investments Additional deductions in the calculation of income tax as mechanisms to encourage improvements in productivity, innovation and eco-efficient production. Benefits for the opening-up of capital, such as the deferment of Income Tax for companies that offer investment options to external parties. Those established for special development zones, providing they meet the qualifying criteria. Área cuadroso información
Incentives for New Investment In Priority Sectors Total exemption from income tax and advance payment thereof, for 5 years, for new investments made in priority sectors of the economy. Área cuadroso información Fresh and processed foodstuff sector Metalworking sector Petrochemical sector Forestry and agroforestry chain, and resulting manufactured products sectors Tourism sector Logistics services sector Biotechnology and applied software sector Renewable Energy sector Pharmaceutical sector + STRATEGIC SECTORS FOR EXPORT PROMOTION AND IMPORT SUSTITUTION
Incentives for green production For Income Tax calculation purposes, there will be an additional deduction of 100% from the expense of purchasing machinery and equipment for cleaner production, and for the implementation of renewable energy systems (solar, Aeolic, or similar), or for the mitigation of environmental impact. Área cuadroso información
Incentives for Investment in Economically Depressed Areas Companies making investments in economically depressed areas may take advantage, for the first 5 years, of the additional 100% deduction on expenditure for new jobs created in the area,.. A “depressed area” will be defined by indicators, such as lower human, economic, and social development. Área cuadroso información
Incentives for ZEDE (Special Economic Development Zones) A further reduction of 5 percentage points on Corporate Income Tax, for managers and operators of ZEDE (in Spanish), on a permanent basis (17% TOTAL). If said managers and operators are in a Preferential Sector and it is a new investment, 0% income tax applies for 5 years. The import of goods will have a 0% VAT rate. Foreign goods, while they remain in said territory, will not be subject to the payment of tariffs. Managers and operators will have tax credit on the VAT paid on their local purchases of services, supplies and raw materials for their production processes. Exemption from the Currency Outflow Tax (ISD in Spanish) for payments of imports and payments sent overseas to pay off foreign financing. Área cuadroso información
Incentives for private companies that open their capital structure Companies choosing to open up their capital structure and sell shares to their workers, will have the following benefits: Área cuadroso información Deferment of 5 years on Income Tax and IT Anticipated payments. Interest exemption on loans for financing the shares purchase.
Infrastructure´s investment opportunities Espacio para texto y título Espacio para texto y título
Manta’s intercontinental and multi-mode logistics platform Short and mid-distance air/maritime (cabotage) /land transportation Long distance air and maritime transportation to Asia Short and mid-distance air/land and river transportation to Manaos, Brazil Logistics platform binds logistics infrastructures in the same geographical spot: Deep water port International airport ZEDE (Special Economic Development Zone) Short and mid-distance air, maritime (cabotage) , land transportation to Peru
Manta: an efficient cargo and passenger connexion with Asia Beijing Seoul Shanghai 6244 nm Hong Kong 5895 nm 6147 nm Manta 4186 nm Tahiti
GENERAL Continent: American – South America Country: Ecuador Province: Manabí Geographic 0°57’ Latitude South Location: 80° 43’ Longitude West Climate: Tropical dry Altitude (average): 6 m. s. n. m Rain: 210 m. m. Average Temperature: 26° C in winter 24° C in summer AIR CONNECTIONS Bogotá 500 NM Panamá 600 NM México 1600 NM Lima 700 NM Chile 2000 NM Buenos Aires 2376 NM Sao Paolo 2406 NM LAND CONNECTIONS Guayaquil: 190 kms Quito: 400 kms Cuenca : 446 kms North border: 687 kms with Colombia South border : 466 kms with Perú STRATEGIC ADVANTAGES
It’s the closest point to Asia from the western coast of South America.
100 METERS OF FISHINGBERTH TERM: 1 YEAR 225 METERS OF INTERNATIONALBERTH TERM: 1 YEAR 10 acres OF STORAGE YARDS TERM: 1 YEAR Operational Capacity : 200 mil TEUS/año EXTENSION 110 METERS OF INTERNATIONALBERTH 2 TERM: 1 YEAR 4 acres OF STORAGE YARDS TERM: 1 YEAR Operational Capacity : 50.000 TEUS/year EXTENSION 110 METERS OF INTERNATIONALBERTH 2 TERM: 1 YEAR Área cuadroso información 310 METERS OF CONTAINERBERTH TERM: 1.5 YEARS LEVEL: – 14 M . DREDGING TERM :1 YEAR LEVEL: -14 M. 550 METERS OF BREAKWATER TERM: 1 YEAR