Colombia Presentation - 2014

43,687 views

Published on

Colombia Presentation - 2014

Published in: Travel, Business
1 Comment
4 Likes
Statistics
Notes
  • Excellent presentation with up-to-date facts about Colombia and showing what some respected Economists around the world are saying about why to invest in Colombia.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Views
Total views
43,687
On SlideShare
0
From Embeds
0
Number of Embeds
34,167
Actions
Shares
0
Downloads
343
Comments
1
Likes
4
Embeds 0
No embeds

No notes for slide

Colombia Presentation - 2014

  1. 1. COLOMBIA Investment Environment and Business Opportunities in Colombia 2014
  2. 2. About us Proexport is in charge of the promotion of International Tourism, Foreign Direct Investment, and non-traditional exports in Colombia www.proexport.com.co EXPORTS INVESTMENT TOURISM
  3. 3. Proexport Services
  4. 4. Proexport Services
  5. 5. Proexport Services
  6. 6. Proexport in Colombia www.proexport.com.co 25 Regional Ofices8 Information centers BARRANQUILLA. BOGOTÁ. BUCARAMANGA. CALI. CARTAGENA. CÚCUTA. MEDELLÍN. PEREIRA VALLEDUPAR. PASTO. PALMIRA. ARMENIA = UNIVERSIDAD GRAN COLOMBIA – CÁMARA DE COMERCIO. VILLAVICENCIO. BOYACÁ = TUNJA - DUITAMA - SOGAMOSO. IBAGUÉ. SANTA MARTA. SAN ANDRÉS. ABURRÁ SUR. NEIVA. BARRANQUILLA = CÁMARA COMERCIO – UNIVERSIDAD NORTE. CARTAGENA. MEDELLÍN. BUCARAMANGA. CALI = CÁMARA COMERCIO. PEREIRA. BOGOTÁ. MANIZALES. CÚCUTA. POPAYÁN. BOYACÁ.
  7. 7. 26 commercial offices prescence in 30 countries UNITED STATES. CANADA. MEXICO. GUATEMALA. COSTA RICA. CARIBBEN. VENEZUELA. BRAZIL. ECUADOR. CHILE. PERU. ARGENTINA. SPAIN. GERMANY. PORTUGAL. UK. FRANCE. TURKEY. UNITED ARAB EMIRATES. INDIA. CHINA. SOUTH KOREA. RUSSIA. JAPAN. SINGAPORE. INDONESIA. Proexport en in the world
  8. 8. General facts Second most bio-diverse country in the World It is among the 12 most megadiverse countries of the planet.  55% of the population is less than 30 years old. There are seven cities with over one million people. With an extension of 1,141,000 km2 almost 3 times the size of California and twice the size of Texas. Colombia is the only country in South America with access to both, the Atlantic and the Pacific ocean.
  9. 9. Times of great economic achievements GDP2013: +4.3% GDP 2012 : +4.0% Higher than the Latin American average growth (3.2%). Controlled Inflation: 1.94% Below target inflation Unemployment rate 2013:8.5% Unemployment rate for December 2012: 9.2%. FDI2013: US$16,772 FDI 2012 : US$ 15,529 Record figure in Colombian history 1.01 million barrels per day of oil production Fourth largest producer in South America
  10. 10. A competitive location with easy access to markets around the globe Mexico City 4H45M Los Angeles 8H20M Quito 1H30M Lima 3H00M Peru Ecuador México United States Canada Brazil ArgentinaChile Spain France Germany Over 878 weekly direct international flights. More than 4,500 weekly domestic flights. Less than 6 hours to the main capital cities in Latin America. More than 20 different airlines New York 5H35M Toronto 6H05M Caracas 1H20M Santiago Chile 5H00M Buenos Aires 6H15M Sao Paulo 5H45M Madrid 9H40M Paris 10H40M Frankfurt 11H15M
  11. 11. 202.80 116.20 81.67 78.09 83.70 64.60 47.40 50.50 35.60 31.60 30.20 23.51 17.70 10.50 9.70 8.50 8.10 7.20 8.20 5.10 5.50 4.60 Population 2014* Millones The second largest spanish speaking country in the world and the 23rd most populated Source: DANE. EIU - Economist Intelligence Unit. 2014. * Forecast.
  12. 12. 167 257 299 301 373 380 400 420 422 455 481 481 535 599 606 1,176 1,790 2,324 2,560 2,644 3,688 New Zeland Denmark Singapur Israel Norway Chile Peru Vietnam Hong Kong Sweden Belgium Switzerland Philippines Colombia Malaysia Australia South Korea Mexico France Brazil Germany GDP at PPP – 2015 US$ billion Colombia is the 28th largest economy in the world and one of the largest non-OECD economies PPP - Purchasing Power Parity. e: estimated. Source: EIU - Economist Intelligence Unit. 2014
  13. 13. 0 1 2 3 4 5 6 7 8 9 China India Nigeria Vietnam Indonesia Colombia Egypt Turkey Brazil Russia South Korea Mexico South Africa United States Canada Japan United Kingdom Germany France Italy Colombia will contribute significantly to world economic growth BRICs Other EM CIVETs G7 Why? Respect for private and intellectual property. Natural resource boom Advance in national security and peace process FTAs with almost 50 countries (including the US) Rapid FDI growth Source: “Diamonds in the rough: Unearthing opportunity in an uncertain world” . The Economist March 2013.
  14. 14. Colombia's per capita income has nearly doubled since 2000 Per capita National Income (PPP) 2000 – 2018p, US$ 5,826 8,940 10,910 14,400 0 2.000 4.000 6.000 8.000 10.000 12.000 14.000 16.000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013p 2015p 2018p High Income Middle High Income Middle Low Income Low Income Income Source: EIU – Economist Intelligence Unit. PPP = purchasing power parity. Economies are divided according to 2012 income per capita, calculated using the World Bank Atlas method. The groups are: low income, US$1,035 or less; lower middle income, US$1,036 - US$4,085; upper middle income, US$4,086 - US$12,615; and high income, US$12,616 or
  15. 15. 15.6 14.1 13.7 11.8 12.0 11.2 11.3 12.0 11.8 10.8 10.4 8.5 7.0 6.5 5.5 4.9 4.5 5.7 7.7 2.0 3.7 2.4 1.9 8.8 8.1 7.4 7.1 6.8 3.0 3.4 3.6 3.5 3.3 2.5 3.9 5.3 4.7 6.7 6.9 3.5 1.7 4.0 6.6 4.0 4.3 4.4 4.6 4.5 4.3 4.5 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014f 2015f 2016f 2017f 2018f Macroeconomic stability and strong economic performance in the long run Inflation GDP Unemployment rate GDP Growth, Inflation and unemployment Rate 2002 – 2018p (%) f: Preyected e: Estimates Source:: DANE; Banco de la República; EIU - Economist Intelligence Unit . 2014
  16. 16. Economic growth has been fueled by high rates of investment 14% 16% 18% 25% 24% 27% 33% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013e 2014f 2015f 2016f Gross Capital Formation (% of GDP) 2000 – 2016f Source: EIU – Economist Intelligence Unit Figures at constant prices of 2005. e- Estimates
  17. 17. A rapidly growing middle class 16.2% 25.3% 37.3% 46.3% 43.8% 59.9% 2002 2012 2020 2025 Below Baseline Scenario Above Baseline Scenario 6.7 6.7 22.3 19.0 32.1 24.7 Million inhabitants 11.6 11.6 Middle class in Colombia as a percentage of total population Baseline scenario: 4.6% GDP growth Below baseline scenario: 4.2% GDP growth Above baseline scenario: 5.3% GDP growth Middle class: Monthly household income between 3.2MW and 13MW (MW) Minimum wage in Colombia 2013: US $333.
  18. 18. Economic growth, Investor Confidence and Security * Figures do not include FDI registered for SabMiller adquisition of Bavaria in 2005 (USD 4,800 MM). ** Perception of insecurity as a key issue affecting industrial growth in the country. Monthly Industrial Survey -ANDI. 0,0 5,0 10,0 15,0 20,0 25,0 30,0 0 1000 2000 3000 4000 5000 6000 IED - US$ million* Insecurity perception**
  19. 19. Colombia, an investment-grade country with positive outlook S&P (April 2013) and Fitch (december 2013) improved Colombia´s sovereign debt outlook. “Effective implementation of recent fiscal reforms could improve its debt and interest burdens”– S&P On December 2013 Fitch Ratings upgraded Colombia's ratings due to Colombia's improvement in its external accounts and positive government debt dynamics, which support the convergence of external and fiscal credit metrics with rating peers. In addition, the sovereign's credible and consistent policies provide it with the capacity to withstand external shocks; this was demonstrated during the recent increase in financial volatility witnessed by several emerging markets. Since 2011 the Colombian sovereign debt has been rated positively by all three agencies, coinciding with a reduction in the vulnerability to external shocks, the fulfillment of its obligations, confidence in the macroeconomic policy of the country and improved security policies. Rating Date Rating Agency Long Term– Foreign Currency Short Term– Foreign Currency Long Term– Local Currency Short Term – Local Currency Outlook Stable BBB A – 2 BBB + A - 2 24– Apr- 2013 24– Apr- 2013 5 – Mar - 2007 5 – Mar - 2007 Long Term– Foreign Currency Short Term– Foreign Currency Long Term – Local Currency BBB F – 2 BBB+ 13 – Dic- 2013 22 – Jun - 2011 22 – Jun - 2011 Long Term– Foreign Currency PositiveBaa3 7– Feb- 2012 Term Stable
  20. 20. Colombia with the most reforms in Latin America towards the improvement of Business environment Source: Doing Business 2014. World Bank. *Positive numbers indicate improvements in business environment. Country Ranking 2014* Chile 34 Peru 42 Colombia 43 Mexico 53 Panama 55 Costa Rica 102 Brazil 116 Argentina 126 Ecuador 135 Venezuela 181 Ranking Doing Business* 2008-2014 Change in the number of positions 23 16 13 10 6 -1 -7 -9 -9 -17 Colombia Panama Costa Rica Mexico Peru Venezuela Ecuador Brazil Chile Argentina
  21. 21. Colombia is the leader in terms of Investor Protection in the region Source: Doing Business. World Bank . 2014. Ranking Country 6 Colombia 16 Peru 34 Chile 68 Mexico 80 Brazil 80 Panama 98 Argentina 182 Venezuela 8.3 7.0 6.3 5.7 5.3 5.3 5.0 2.3 Colombia Peru Chile Mexico Brazil Panamá Argentina Venezuela Investment Protection Index Doing Business - 2014
  22. 22. Total commerce has grown almost 5 times in the past 10 years 24.915 25.151 24.671 27.009 33.476 42.395 50.553 62.888 77.295 65.682 80.502 112.095 119.299 118.219 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Comerce (X+M) United States • Exports: US$18.458 million • Imports: US$ 15.681 million China • Exports: US$ 5.102 million • Imports: $9.841 million Mexico Exports: US $863 million Imports: US$ 5.299 million Brazil • Exports: US $2.457 million • Imports: US$ 1.590 million Exports and Imports. 2000 – 2013 US$ millions Source: DANE, 2014
  23. 23. Colombia shows a remarkable growth of its exports Variation 2010 - 2011: 43% Variation 2011 - 2012: 5,7% Variation 2012 -2013: -2.2% 13,158 13,129 21,190 37,626 56,915 58,822 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Exports. 2000 – 2013 FOB Values US$ millions Top export destinations 2013 United States • US$ 18,459 million • Part. 31.4% Panama • US $2,939 million • Part. 5.7% China • US $5,102 million • Part. 8.7% India • US $2,993 million • Part. 5.1%
  24. 24. Imports also have increased rapidly Variación 2011 – 2012: 7.2% Fuente: DANE 11,757 21,204 39,666 32,891 54,233 59,397 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Top imports by origin 2013Imports 2000 – 2013 CIF Values - US$ million United States • US$ 16,337 million • 27.5% Mexico • US$ 5,496 million • 9.3% China • US$ 10,363 million • 17.4% Brasil • US$ 2.590 millones • Participación: 4.4%
  25. 25. Free Trade Agreements Source: Colombian Ministry of Commerce, Industry and Tourism. 2013. Canada United States Mexico Guatemala Honduras El Salvador Ecuador Brazil Peru Argentina Paraguay Uruguay Liechtenstein Switze rland Island Norway European Union Turkey Israel Japan Panama Chile Bolivia Costa Rica Venezuela* Pacific Alliance South Korea Cuba* Nicaragua* *These are Partial Scope Agreements (PSA) - - - The dotted line refers to member countries of The Pacific Alliance other than Colombia. – Chile, Perú and México. In force Signed In negotiation
  26. 26. International Investment Agreements - IIA Source: Colombian Ministry of Commerce, Industry and Tourism. 2013. Canada United States Mexico Guatemala Honduras El Salvador Peru Uruguay Liechtenstein Switzerland Island Norway European Union Turkey Israel Japan Panama Chile South Korea * Negotiations recently concluded. Note: The International investment agreements (IIA) include Agreement Investment Treaties – BIT (agreement) and Free Trade Agreements – FTA- with investment section (chapter). Spain China India United Kingdom Kuwait Singapur Azerbaijan Qatar Russia In force Signed In negotiation
  27. 27. Double Taxation Agreements - DTA Source: Colombian Ministry of Commerce, Industry and Tourism. 2013. Canada United States Mexico Peru Switzerland Holland Norway Turkey Israel Japan Chile South Korea *Negotiations recently concluded. Note: The International investment agreements (IIA) include Agreement Investment Treaties – BIT (agreement) and Free Trade Agreements – FTA- with investment section (chapter). In force Signed In negotiation Future Spain China India Belgium Singapur Qatar Bolivia Ecuador Honduras Brazil United Arab Emirates Italy Germany France Czech Republic
  28. 28. Colombia: A gateway to the Pacific Alliance Source: MCIT, 2013 GDP of USD 2,010.3 billion The members generate 35% of the region´s GDP Population of 209 million Almost Brazil´s Population 50% of Latin American commerce Total trade of US$ 1,116 billion (2012) FTAs with 60 countries Access to benefits of markets that represent 85.7% of the World GDP Mexico Colombia Peru Chile
  29. 29. In 2013 Colombia reached a new record in FDI: Nearly 7 times of what it received 10 years ago 2,504 6,897 13,405 15,529 16,770 Average 1994 - 2002 Average 2003 - 2010 2011 2012 2013 Var. 8% Top Investing Countries in Colombia 2000– 2013 FDI Inflows. 1994 –2013 USD million United States • US$ 25,980 million • 24 % United Kingdom • US$ 15,672 million • 14,5% Spain • US$ 7,902 million • 7,3% Chile • US$ 4,283 million • 4,1% Source: Balance of Payments - Banco de la República. Share of all countries with positive cumulative investment, The information includes reinvested profits or investments in the oil sector Note: the list of the top countries investing in Colombia does not include Panama.
  30. 30. Colombia was among the top 20 destinations of FDI in the world in 2012 Source: World Investment Report, Overview 2013; FDI Markets, Global Greenfield Investement Trends. 2013; CEPAL 2013. According to The World Investment Report -UNCTAD Colombia is one of the top twenty host economies for FDI in the world with USD 16 billion in 2012. 168 121 75 65 65 62 57 57 51 45 30 29 28 28 26 25 20 16 14 14 1; United States 2; China 3; Hong Kong (China) 4; Brazil 5; Virgin Islands (UK) 6; United Kingdom 7; Australia 8; Singapur 9; Russia 10; Canada 11; Chile 12; Ireland 13; Luxembourg 14; Spain 15; India 16; France 17; Indonesia 18; Colombia 19; Kazakhistán 20; Sweden During 2012 Colombia attracted 93 Greenfield projects making it the third country in the region in terms of the number of projects. Colombia is the third destination for FDI in Latin America with USD 15,649 Million.
  31. 31. The stock of Colombia’s outward FDI has grown nearly ten-fold since 1994 Source: Banrep, 2014; World Investment Report, Overview 2013; FDI Markets, Global Greenfield Investement Trends. 2013; CEPAL 2013. Stock of outward FDI. 1994 - 2013 USD million 3,652 39,482 Stock 1994 - 2002 Stock 1994 - 2013 FDI outflows by sectors, 1994 – 2013 Industry, 25,1% Oil & Mining, 21,4% Financial services, 27,7% Electricity, gas & water, 12,4% Transport & communicatio n, 6,0% Commerce, restaurants & hotels, 4,6% Others, 2,8% United States USD 6,455 million 17% United Kingdom USD 5,180 million 14% Panama USD 6,505 million 18% Peru USD 2,507 million 7% -606 7,652 2012 2013
  32. 32. Sectors of opportunity- Tourism Source: Migración Colombia, MCIT, Banco de la República. Cálculos de Proexport 1,053 1,195 1,223 1,354 1,475 1,582 1,692 1,832 51 127 228 285 296 313 254 306 2006 2007 2008 2009 2010 2011 2012 2013 Arrivals (Migración Colombia) Visitors in cruises United States • 336,454 visitors • 18.4% European Union • 307,212 visitors • 16.8% Venezuela • 261,343 visitors • 14.3% Argentina • 129,069 visiors • 6.4% Main nationalities of foreign visitors in Colombia, 2013 Foreign visitors in Colombia 2006 – 2013, thousands
  33. 33. Some examples of high profile Colombian “multilatinas” One of the largest food companies in Colombia, Nutresa has presence in 12 countries in Latam, with manufacturing plants in 8 of them. Recently, the company signed an agreement to acquire 100% of the shares in Tresmontes Lucchetti S. A. in Chile for USD 758 million. SURA Brand is currently well known in the insurance, pension and investment fund business through its operations in Mexico, Peru, Uruguay and Chile. In 2011, the group bought ING assets in Latin America for USD $ 3,614 million. It is the largest financial conglomerate in Colombia. The Group has subsidiaries in El Salvador, Panama, and Puerto Rico. In 2012, Bancolombia acquired 100% of the ordinary shares and 90.9% of the preferred shares of HSBC Bank in Panama.
  34. 34. Carvajal SA, is a conglomerate with presence in 15 countries and recognized for its role in the field of packaging, stationery, design and advertising. In 2013, Carvajal S.A made an investment of $ 23.7 million for the construction of a manufacturing and distribution center in Peru. Colombiana SA is one of the country's leading companies in the production and marketing of sweets, chocolate and biscuits. The company has strengthened its international strategy with the opening of 11 branches throughout the Americas and has a production plant in Guatemala to supply the American market. Tecnoquímicas is specialized in heath products and services, personal care and household cleaning, processed foods, and agricultural and veterinary products in Colombia and Latin America. The company has direct presence in Central America through its 3 production plants in El Salvador. Some examples of high profile Colombian “multilatinas”
  35. 35. Labor incentives New employees with incomes lower than 1.5 Minimum Wages (US$ 476). Length of benefit by employee : 2 years. New women employees above 40 years old with more than 1 year unemployed. Length of benefit by employee: 2 years. New employees under twenty eight (28) years old. Length of benefit by employee: 2 years. New employees certified in displacement situation, reintegration or disability. Length of benefit by employee: 3 years. Discount in the income tax and supplementary contributions, and other contributions from payroll. (Do not include positions generated by mergers or replacements)
  36. 36. Incentives for job creation and formalization Start of main economic activity: date of registration in the commercial register. Small firms: staff no more than 50 employees, total assets not exceeding 5,000 SMMLV. Payment of income tax. Payment of levies and other contributions from payroll. The business registration and renewal. 0% - 2 first years 25% - third year 50% - fourth year 75% - fifth year 100% - from the sixth year. 0% - first year 50% - second year 75% - third year 100% - from the fourth year. Application of escalation
  37. 37. Free Trade Zone Permanent Free Trade Zone Special Standing "Uniempres arial" (FTZ) Guajira MagdalenaAtlántico Bolívar Valle del Cauca Cauca Norte de Santander Santander Boyacá Cundinamarca Huila Antioquia Caldas Risaralda Quindío FTZ requested or approved prior to December 31, 2012. • 15% Income tax. FTZ filed after December 31, 2012. • Income tax of 15% + 9% tax CREE.Caribbean Region Andean Region Pacific Region Free Trade Zones: Reduced income tax and sales allowed to the local market
  38. 38. Free Trade Zones: Reduced income tax and sales allowed to the local market No import duties. VAT exemption for goods sold from Colombia to FTZ. Benefit from international trade agreements. Allows sales to the local market. Free trade zones for different investor styles.
  39. 39. A country of regions and differentiated opportunities for investors Caribbean Region Tourism, Logistics, Petrochemical, Construction Supplies Atlantic Export Platform. Central/Andean Region Outsourcing Services, high value-added manufacturing, hub to cover domestic market, specialized agribusiness. Pacific Region Manufacturing, Agribusiness, logistics, biotechnology, Pacific export platform. Eastern Region Agriculture, forestry, biofuels, hydrocarbons Amazon Region Conservation, ecotourism (Leticia)

×