Eecucoreahufs2011

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Eecucoreahufs2011

  1. 1. A 21st Century Country Paradigm<br />Hankuk University of Foreign Studies<br />Seoul, Korea<br />April 13, 2011<br />
  2. 2. Ecuador, South America<br />Ecuador: Posición Geográfica Estratégica <br /><ul><li>Panama canal
  3. 3. 3,5 hoursflight time tothe USA.
  4. 4. Directflight and sea connectionswithEurope
  5. 5. ClosestportbetweenAsia and South America</li></li></ul><li>An ethical economy<br />An ethical management of our economy is at the center of our country development.<br />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. <br />Hoja para<br />Texto Información<br />extenso<br />Área cuadroso información<br />
  6. 6. the human being is not just another factor in production, it is in itself the reason for production<br />
  7. 7. Necessary reform of the State<br />Actions<br />Results<br />Constituent Assembly<br />Tax amendments<br />Elimination of extreme outsourcing<br />Production Code<br />Modern institutional framework<br />Fiscal stability<br />Fair labor relations<br />Incentives and a clear framework<br /> for investment<br />Área cuadroso información<br />
  8. 8. Development model and the role of the State<br />The Production Code sets out a new, modern legal framework, encouraging private investment.<br />The code specifically highlights the Government's model for economic development and transformation of our production matrix<br />Monetary policy based on dollarization. <br />General incentives for private investment to make our country more competitive.<br />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<br />Área cuadroso información<br />
  9. 9. Protection for Private Investment<br />Legal<br />incentives<br />Investment<br />contracts<br />Safe <br />investment<br />Agreed<br />arbitration<br />Área cuadroso información<br />Production and Investment Code allows for the protection of <br />private investment with all these instruments.<br />
  10. 10. An intelligent investment<br />Korea<br />7 Strategic reasons<br />Área cuadroso información<br />Mega-diverse country and tourism<br />Growing and stable economy<br />Strategic location and logistic axis<br /> Human talent<br />5. Access to Andean<br />and world’s markets..<br />6. Protection and Incentives<br />for the investor. <br />7. Dollarized economy.<br />
  11. 11. ECUADOR: Why invest in Ecuador?<br />The most megadiverse compact country of the world, rich and diverse culture and unique tourist attractions<br />1<br />
  12. 12. Hoja para<br />Texto Información<br />extenso<br />Área cuadroso información<br />The eco-centre of the world: the most compact an mega diverse per m2<br />
  13. 13. The eco-centre of the world : multiple peoples of different cultures live in peace<br />
  14. 14.
  15. 15.
  16. 16.
  17. 17. The Constitution of Ecuador is the first one that recognizes the nature’s rights (pacha mama: mother Earth) <br />
  18. 18.
  19. 19. Where the world is at your hand<br />
  20. 20. Galápagos Archipiélago<br />
  21. 21. Sangay National Park<br />Cuenca and Quito: Cultural World Heritage<br />
  22. 22. Ecuador International Living´s Top 1 country to Retire in 2010<br />In terms of cost of real state, special benefits, cost of living, culture, health, infrastructure, safety/stability and weather.<br />Source: International Living magazine<br />
  23. 23. ECUADOR: Why invest in Ecuador?<br />2<br />A growing, sound and stable economy<br />
  24. 24. GDP GROWTH<br />*Provisional data<br />Source: BCE<br />
  25. 25. NON OIL GDP GROWTH<br />Provisional data<br />Source: BCE<br />
  26. 26. Public Investment Evolution/ Nominal GDP <br />Capital expenses of SPNF/GDP<br />Others from capital <br />Gross fixed capital formation <br />
  27. 27. Dynamism of Investment: FBKF/Nominal GDP<br />Gross fixed capital formation <br />Capital expenses of SPNF/GDP<br />Non-financialpublic sector<br />
  28. 28. 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. <br />Internal Public Debt<br />External Public Debt<br />External Public Debt/GDP<br />Internal Public Debt/GDP<br />Source: Central Banks of each country<br />Source: BCE<br />
  29. 29. Manufacturing: Annual growth per quarter(Excludes petroleum refinement)<br />8,0% growth in the first, second, and third quarters of 2010 compared with 2009.<br />Source: BCE<br />
  30. 30. Manufacturing: Annual growth per quarter(Excludes petroleum refinement)<br />8,8% growth in the first, second, and third quarters of 2010 compared with 2009.<br />Source: BCE<br />
  31. 31. Export: sustained 10% growth rates since 2000<br />
  32. 32. Dynamic private consumer activity <br />Ecuador has a vigorous economy, backed by an increase in disposable income and by credit growth. <br />Source: Central Banks of each country<br />
  33. 33. Lowest unemployment rate of the Andean Region<br />National <br />Urban <br />Rural<br />Source: INEC, ENEMDUR 2003-2010<br />Production: MCDS-SIISE<br />
  34. 34. Less leveraged economy: Businesses, households, Government, IFI’s<br /> 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. <br />External Private Debt/GDP<br />Credit /GDP<br />Source: Superintendence of Banks <br />
  35. 35. A healthy financial system<br />The Ecuadorean financial system is a healthy one with robust growth in capital formation and credit allocation. <br />LOAN PROTFOLIO <br />OBLIGATIONS WITH THE PUBLIC <br />OBLIGATIONS WITH THE PUBLIC <br />LOAN PROTFOLIO <br />Source: Superintendent of Banks<br />
  36. 36. Big opportunities for ethical and responsible investment.<br />* Relation between total volume of foreign debt and GNI (information from countries as of 2009)<br />Source: World Bank<br />
  37. 37. 3<br />Strategiclocation<br />
  38. 38. ECUADOR<br />Airport Development Area<br />Surface : 70 Has.<br />ECUADOR IS A STRATEGICLOCATIONFORASIAN AND MIDDLE EAST INVESTORS: <br />
  39. 39. Infrastructure<br />Ecuador: Public Investment, by sector 2007-2010<br />USD$<br />agricultural infrastructure<br />Road infraestructure<br />
  40. 40. Ground transport infrastructure<br />National Airport<br />International Airport<br />Ship piers (in study)<br />Connectivity in Ecuador<br />Fuente: MINTUR (Plan de Marketing Internacional)<br />Source: Ecuador´s Ministry of Tourism<br />
  41. 41. Great Human Talent and Social Indicators<br />4<br />
  42. 42. Social Investment as GDP %<br />Source: MF<br />
  43. 43. Education rates<br />
  44. 44. Decrease in poverty (by income)<br />Source INEC, ENEMDUR 2001- June 2010<br />Production: MCDS-SIISE<br />Note: in 2002 the poll sample was only from urban areas<br />
  45. 45. National<br />Urban<br />Rural<br />Inequality reduction<br />
  46. 46. 5<br />Access to Andean and Global Markets<br />
  47. 47. Access to Regional and Global Markets<br />• Agreement with Mercosur<br /> Provides Ecuador with the potential to export <br /> approximately 4.000 products with no tariffs to <br /> Brazil and Argentina.<br />• GSP PLUS – European Union<br />Provides Ecuador with the potential to export <br /> approximately 7.800 products with no tariffs.<br />
  48. 48. 6<br />Incentives for Private Investment<br />Área cuadroso información<br />
  49. 49. General Incentives for investments<br />Reduction from 25% to 22% on the Income Tax (IT)rate:<br />1% each year from the date the Code will be in force<br />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. <br />For new companies: exemption from the minimum tax payment for the first 5 years. <br />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). <br />Área cuadroso información<br />
  50. 50. General Incentives for investments<br />Additional deductions in the calculation of income tax as mechanisms to encourage improvements in productivity, innovation and eco-efficient production.<br />Benefits for the opening-up of capital, such as the deferment of Income Tax for companies that offer investment options to external parties. <br />Those established for special development zones, providing they meet the qualifying criteria. <br />Área cuadroso información<br />
  51. 51. Incentives for New Investment In Priority Sectors<br />Total exemption from income tax and advance payment thereof, for 5 years, for new investments made in priority sectors of the economy. <br />Área cuadroso información<br />Fresh and processed foodstuff sector<br />Metalworking<br />sector<br />Petrochemical sector<br />Forestry and agroforestry chain, and resulting manufactured products sectors<br />Tourism sector<br />Logistics services<br />sector<br />Biotechnology and<br />applied software<br />sector<br />Renewable <br />Energy<br />sector<br />Pharmaceutical<br />sector<br />+ STRATEGIC SECTORS FOR EXPORT PROMOTION AND IMPORT SUSTITUTION<br />
  52. 52. Incentives for green production<br />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.<br />Área cuadroso información<br />
  53. 53. Incentives for Investment in Economically Depressed Areas<br />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,..<br />A “depressed area” will be defined by indicators, such as lower human, economic, and social development. <br />Área cuadroso información<br />
  54. 54. Incentives for ZEDE<br />(Special Economic Development Zones)<br />A further reduction of 5 percentage points on Corporate Income<br />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. <br />The import of goods will have a 0% VAT rate. <br />Foreign goods, while they remain in said territory, will not be subject to the payment of tariffs. <br />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. <br />Exemption from the Currency Outflow Tax (ISD in Spanish) for payments of imports and payments sent overseas to pay off foreign financing. <br />Área cuadroso información<br />
  55. 55. Incentives for private companies<br /> that open their capital structure<br />Companies choosing to open up their capital structure and sell shares to their workers, will have the following benefits: <br />Área cuadroso información<br />Deferment of 5 years on Income Tax and IT Anticipated payments.<br />Interest exemption on loans for financing the shares purchase.<br />
  56. 56. Infrastructure´s investment opportunities <br />Espacio para texto y título<br />Espacio para texto y título<br />
  57. 57. Manta´s Inter-continental Logistic Platform<br />
  58. 58. ECUADOR<br />Airport Development Area<br />Surface : 70 Has.<br />MANTA iNTER-CONTINENTAL LOGISTIC PLATFORM: MULTI MODAL OPERATION: PORT, AIRPOT, FLUVIAL, TRANSPORT <br />
  59. 59. Seaport development of Manta: Gateway and transhipment port<br /><ul><li>Natural depth of 12 mt.
  60. 60. Container and general cargo transit
  61. 61. Half a million containers per year potential
  62. 62. Entryway to the two-ocean axis, Pacific-Atlantic
  63. 63. Entry to cruise liners </li></li></ul><li>Manta’s intercontinental and multi-mode logistics platform<br />Short and mid-distance air/maritime (cabotage) /land transportation<br />Long distance air and maritime transportation to Asia<br />Short and mid-distance air/land and river transportation to Manaos, Brazil<br />Logistics platform binds logistics infrastructures in the same geographical spot:<br />Deep water port<br />International airport<br />ZEDE (Special Economic Development Zone)<br />Short and mid-distance air, maritime (cabotage) , land transportation to Peru<br />
  64. 64. Manta: an efficient cargo and passenger connexion with Asia<br />Beijing<br />Seoul<br />Shanghai<br />6244 nm<br />Hong Kong<br />5895 nm<br />6147 nm<br />Manta<br />4186 nm<br />Tahiti<br />
  65. 65. GENERAL<br />Continent: American – South America<br />Country: Ecuador<br />Province: Manabí<br />Geographic 0°57’ Latitude South <br />Location: 80° 43’ Longitude West<br />Climate: Tropical dry<br />Altitude (average): 6 m. s. n. m<br />Rain: 210 m. m. <br />Average Temperature: 26° C in winter<br /> 24° C in summer<br />AIR CONNECTIONS<br />Bogotá 500 NM<br />Panamá 600 NM<br />México 1600 NM<br />Lima 700 NM<br />Chile 2000 NM<br />Buenos Aires 2376 NM<br />Sao Paolo 2406 NM<br />LAND CONNECTIONS<br />Guayaquil: 190 kms<br />Quito: 400 kms<br />Cuenca : 446 kms<br />North border: 687 kms with Colombia <br />South border : 466 kms with Perú <br />STRATEGIC ADVANTAGES<br /><ul><li>It’s the closest point to Asia from the western coast of South America.
  66. 66. 7 days, 24 hours air operation
  67. 67. It’s 25 miles from the international traffic route.
  68. 68. It’s 56 miles from the Equator.
  69. 69. It’s 24 hours from the Panama Canal.
  70. 70. No visa required.</li></ul>MANTA <br />MANTA<br />
  71. 71. 100 METERS OF FISHINGBERTH<br />TERM: 1 YEAR<br />225 METERS OF INTERNATIONALBERTH<br />TERM: 1 YEAR<br />10 acres OF STORAGE YARDS<br />TERM: 1 YEAR<br />Operational Capacity : 200 mil TEUS/año<br />EXTENSION<br />110 METERS OF INTERNATIONALBERTH 2<br />TERM: 1 YEAR<br />4 acres OF STORAGE YARDS<br />TERM: 1 YEAR<br />Operational Capacity : 50.000 TEUS/year<br />EXTENSION<br />110 METERS OF INTERNATIONALBERTH 2 <br />TERM: 1 YEAR<br />Área cuadroso información<br />310 METERS OF CONTAINERBERTH<br />TERM: 1.5 YEARS<br />LEVEL: – 14 M . <br />DREDGING<br />TERM :1 YEAR<br />LEVEL: -14 M.<br />550 METERS OF BREAKWATER<br />TERM: 1 YEAR<br />
  72. 72. PORT – AIRPORT INTEGRATED SYSTEM<br />        <br />There is a fast way connecting the Port with the Airport in 6 minutes, making it a great comparative advantage with the region. <br />PORT<br />8 km<br />AIRPORT<br />PORT – AIRPORT CONNECTION<br />
  73. 73. Airport Development Area<br />Surface : 70 Has.<br />EXCELLENT CLIMATIC CONDITIONS 99% OF THE YEAR<br />
  74. 74. MANTA: AIRPORT ADVANTAGES<br /><ul><li>Airport at sea level;
  75. 75. Easy instrumental procedures, obstacle free;
  76. 76. Alternative Airports at less than 25 minutes (SALINAS and GUAYAQUIL);
  77. 77. Airport with quality services and standard operations for customers according to airline;
  78. 78. Shortest distance to Asia
  79. 79. Manta- Tahiti- Asia Route in process
  80. 80. Pilot training school for Latin America</li></li></ul><li>Freeways<br />
  81. 81. 2012: delegation to private sector of US.5.520 million<br />Highways<br />
  82. 82. Tourism<br />
  83. 83. Ecuador tourist routes<br />Source: Ecuador´s Ministry of Transportation and Public Infrastructure. <br />Source: Tourism Marketing Plan of Ecuador. Ministry of Tourism<br />
  84. 84. A Paradigm for the 21st Century<br />Thank You!!!<br />Thank You!!!<br />Embassy of Ecuador in the Republic of Korea<br />EcuadorKoreaEmbassy@gmail.com<br />

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