US/Panama Business Council- Why Panama


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US/Panama Business Council- Why Panama

  1. 1. Panama: It’s Happening now! US Panama Business Council
  3. 3. Solid Economic Growth 2006-2008 Panamá has shown the best performance among emerging markets in the region. GDP Growth compared to other countries in the Region 12.0% 12,1% 10.7% 10.0% 10.7% 8.8% 8,7% 8.5% 7.5% 7.8% 8.0% 6.9% 6.3% 2006 6.0% 5.4% 5.3% 5.1% 4.7% 4.6%4.7% 2007 4.2% 4.0% 2008 4.0% 3.2% 3.3% 2.5% 2.5% 2.6% 2.0% 1.3% 0.0% El Salvador Colombia Panamá Costa Rica Guatemala Rep. Chile México Dominicana Source: Infographics: National Investment Promotion Division
  4. 4. Continuous Economic Growth 2009 During 2009 the world faced a financial crisis which reduced the world´s trade, but Panama got over it, and became one of the few countries in the region that has reported an economic growth of more than 2%. . Source: Graphics: Dirección Nacional de Promoción de la Inversión
  5. 5. Construction Construction industry represents approximately 5.8% of the GDP 2003 2004 2005 2006 2007 2008 2009 883.4 473.8 931.0 1,007.5 1,302.9 1,601.3(p) 1,548.8(p) *Million dollars (p) Preliminary figures Source: Contraloría General de la República
  6. 6. 2010 4.5% ECLAC Estimated Growth The Economic Commission for Latin America and the Caribbean has estimated an average of 4.1% growth rate for the region. Panamá is above the average growth rate.
  7. 7. Investment Grade BBB- Fitch Ratings Benefits Lower cost of financing Higher degree of confidence in our banking system Ideal environment for generation of jobs Panamá only country in Central America Source:Diario La Prensa. March 24, 2010. Infography: La Prensa
  8. 8. Foreign Direct Investment 2.574,2 2.401,7 1.825,1 1.772,8 1.019,1 962,1 2004 2005 2006 2007 2008 2009e In the past 6 years, Panama has established itself among the leaders of the region, boosting sectors such as Information Technology and Communications, Energy, Tourism, Real Estate, Multimodal Transport and Logistics Center, Construction Sector, banking, among others. Source: Contraloría General de la República de Panamá
  10. 10. Easy of Doing Business 2009 2010 Chile 42 Colombia 37 Colombia 53 Chile 49 El Salvador 72 Panamá 77 Panamá 83 El Salvador 84 Rep. Dominicana 86 Rep. Dominicana 102 Guatemala 110 Guatemala 112 Costa Rica 121 Costa Rica 117 Source: The World Bank. Doing Business Report 2010.
  11. 11. Multi-modal and Logistics PLATFORM
  12. 12. ATLANTIC Colon Container Manzanillo Logistics Platform for the World Cristóbal Airdrome Enrique A. Jiménez GATUN LAKE Tocumen InternaTional Airport Marcos A. Gelabert Panama Canal Balboa Railroad/ Fiber optic cable Transithmic Highway Panamerican Highway Howard PSA Ports Airports PACIFIC
  13. 13. Privileged Geographic Position Panama offers direct access to a market of more than 3.5 billion people. Source: NAFTA, APEC, MCCA, CAN, CARICOM, EU.
  14. 14. Panama Canal T Access to 144 In 2009, Movement of maritime +14,000 ships cargo of 298 routes in 80 transit the MT/ year countries waterway Source:
  15. 15. Panama Ports Company - Cristobal
  16. 16. Panama Ports Company - Balboa
  17. 17. Manzanillo International Terminal
  18. 18. T Panama Canal Expansion Project • Estimated Investment investment of $5,250 Millions
  19. 19. Land K Railway 75.5 Kilometers (47 mile) Single- Two-way traffic line track at strategic linking Balboa locations. and Colon Roads Network 3 main roads 2 highways that connect Panamerican in Panama all major Transistmica City and a regions of Central new the country connecting to Colón
  20. 20. Substantial investment in road K infrastructure Road to finish Key investments in added value to logistics services: A. Finish the Panama Colon stretch. B. Rebuild the road infrastructure in the Colon Free Zone C. Connect Howard with the Centennial Bridge D. Finish the North highway E. Connect Tocumen with the cargo terminal. Source: Government Strategic Plan 2010-2014. Gaceta Oficial Nº 26445-A Pag. 48 .
  21. 21. Panama is closer to the World  Tocumen International Airport 2 0 0 9 HUB of the Américas
  22. 22.  Operational Airport Capacity Now Future • 32 Boarding Positions • 66 Boarding Positions • 32 Simultaneous • 70 Simultaneous Operations(Passengers) Operations(Passengers) • 11 Simultaneous Operations • 20 Simultaneous Operations (Load) (Load) • 5 Millions Passengers/Annually • 30 Millions Passengers/Annually • Track length of 3,050 mts • Track length of 4,000 mts Source: Tocumen International Airport Presentation
  23. 23. Expansion of the Airports Network COLÓN BOCAS DEL TORO DAVID PROVINCIAS CENTRALES Source: Aeronautic Authority
  24. 24. Great Connectivity for Telecommunications  Panama is connected to the world through 5 fiber optic submarine cables The United Nations Conference on Trade and Development (UNCTAD) ranked Panamá as the country with best connectivity in Latin America. Source: Transport & Cargo Magazine. Written by JAN.HOFFMANN Chief Trade Facilitation (UNCTAD)
  25. 25. Financial Sector  Banking System • No central bank • 90 national and international banks • Total assets US$ 64,209 million (Jan. 2010) • U.S Dollar base economy Insurance & Reinsurance • By February 2010, the premiums totalized more than $ 139 million, 8.34% over than the same period in 2009.
  27. 27. Creates the Special Regime for Establishment and Operation of the Multinational Company Regional Headquarters • Tax exemption on income, social insurance and educational insurance, when their salaries come from Tax incentives for foreign abroad (parent). workers are: • Import Tariff Exemption for household goods when a worker moves for the first time to Panama. • Permanent Personnel – 5 years (Renewable) Indefinitely Immigration Benefits • Temporal Personnel –3 months (Renewable) 1 Time
  28. 28. Colon Free Zone Decree-Law 18 of June 17th of 1948, by which the Colon Free Zone was created as an autonomous entity of the State. 680 hectares, divided into two (2) commercial areas: • the commercial area of showrooms in Colon (old city limits) and, • commercial warehouse and storage area in France Field. 250,000 visitors come every year from all over the world. Is the largest free zone in the Western Hemisphere, being the major trading center for Latin America and the Caribbean.
  29. 29. Benefits and advantages of operating in the Colon Free Zone • 0% Taxes on profits from re-exports. • 0% Customs duties in import and export quotas. • 0% Billing taxes. • Highly competitive costs. Fiscal Benefits • Migratory facilities for foreign executives. • Purchase in one place only. • Excellent assortment of products. • Credit facilities. Importers Advantages • Clearance in less than 24 hours. • From Colon, Rep. of Panama, located in the center of the Americas, you will have access to: - Western Hemisphere -Europe Exporters -Asia -Africa Advantages - Australia
  30. 30. Panama-Pacific 1,400 hectare London & Business and Special Taxation, Target activities Regional Commercial Economic Zone customs, labor, will be exempt Panama as world class adjacent to the immigration and from taxes in master center with the Republic of Canal, Railway, special business developer of residential areas Panama Ports and Regime the project. of high level Panamá City. Law No. 41 of July 2004.
  31. 31. Target Activities Multimodal and Transfer of Services to Maintenance, Repair High Tech Product Logistics Services the Aviation Industry and Overhauling of Manufacturing Aircrafts Call Centers Office Administration Back Office Operations Data Transmission, Radio, TV, Audio and Video Off shore Services Stock Transfer Between Transfer of Goods and Onsite Companies Services in the area.
  32. 32. City of Knowledge Education Operates as a local node of the global network of Established as a strategic focal knowledge management, and point for regional operations contributes to human of international organizations development. Synergy Innovation Investigation Panama’s International Technopark Panamá Business Accelerator
  33. 33. City of Knowledge Benefits Fiscal Fiscal Fiscal Exemption from all taxes, Transfer Tax Exemption of Exemption from any tax, fee or contributions, tax or import duty movable tangible property and charge levied sending money on machinery, equipment, services (ITBMS) on machinery, abroad, where such remittance or furniture, vehicles, appliances and equipment, vehicles, implements transfer of funds takes place for supplies needed and inputs necessary the purpose of the project. Immigration The State shall grant special visas Labor to foreign personnel who enter The companies affiliated with the the country to help in the City of Knowledge are authorized development project of the City to hire international staff as of Knowledge. necessary to carry out their duties
  34. 34. EXPORT PROCESSING ZONES Incentives • EPZ are Duty Free Zones of Free Enterprise, specifically delimited, whose activities are – Exemption from export taxes and duties the production of goods and services for on all goods or services required for its export. operations. – Tax on capital assets or property • Categories: exemption – Manufacture enterprise – Income tax exemption for warehousing – Assembly services who have their desired effect – Processing enterprises of finished or abroad semi-elaborated goods – Permanent Resident Permit as an – Service export enterprise investor – General services enterprises. – Temporary Resident Permit
  35. 35. Tourism Fiscal Incentives • Exemption of Import and Land Tax for 20 years • Exoneration of tax on capital gain. • Exemption from payment of taxes of docking and landing at docks, airports or heliports owned by the company • Exemption from Income Tax • Rate of 10%, for the purposes of calculating the depreciation on real estate. National Tourism Registry Minimum Investment: $ 3,000,000.00 - Metropolitan Area $ 50,000.00 - Rest of the Republic Source: Law Nº 58 2006. G.O.25,701
  36. 36. Fuel Free Zone Cabinet Decree No. 36 dated 17 September 2003, regulates the activity of oil-free zones in Panama within these areas there is a special treatment Import, export, refine, process, recycle, mix, distribute, transport and market petroleum products authorized. Tax Regime: Free Zone, will not cause any tax, fee, levies and other fiscal contributions reasons for introduction, or re-export of crude oil and its derivatives
  37. 37. Mining Social and Environmental Transparent Sustainability Innovation Responsibility We promote the mining industry development as a substantial element in the social -economic and industrial development of our country. It is the main activity in terms of its foreign exchange contribution to the national economy. Source: National Direction of Minerals Recourses.
  38. 38. Investment Legal Stability Guaranteed beneffits for 10 years: • Legal stability • Tax stability Law No. 54 - • Tax stability in the municipal order 1998 • Stability of the customs that are derived from the Laws • Stability in the labor regime Requirements for Investors: • Investment Plan at least two million (B/.2, 000.000.00) in two years. • Prove the amount of investment and activity
  39. 39. PROJECTS
  40. 40. Agro - Export •Absence of extreme summers •Higher concentrations of sweetness in fruit •High quality of natural water •Coffee SHG (Geisha) • Melon • Watermelon • Pineapple
  41. 41. Public Investment by Sector
  42. 42. Panama City Metro • Currently representatives of companies from Italy, Spain, France, Japan, Brazil, China, Colombia, Germany, Mexico, like Panama, has shown interest in participating in this project. • The Swiss-Mexican-Panamanian consortium PÖYRY Cal & Mayor & Geoconsult won the bid to be the integrator advisor of the project. • For the prequalification statement visit the website Investment: U.S.$ 1,000 - U.S. $1,500 millions Extension: 14 km Travel Time: 30 minutes. Source:
  43. 43. New Convention Center Will oversize our current convetion center Will allow Panamá to take advantage of the geographic position, holding all types of mega events . Aprox. Cost: 150 millions Source: Government Strategic Plan 2010-2014. Gaceta Oficial Nº 26445-A Pag. 76
  44. 44. Governmental City and Financial Tower Physical centralization of key government institutions. Area: 64 Hectares 70 levels Cost: $ 450 million. 100,000 m² of construction Source: Government Strategic Plan 2010-2014. Gaceta Oficial Nº 26445-A Pag. 75- 76
  45. 45. PanamaCompra Objectives • Increase transparency in government procurement • Efficiency • Intensify the fight against corruption Informs • Products and services that are required by the Panamanian public sector Allows • Get information about business opportunities • Consult the time that it will make payments to suppliers • Receive notifications to be affiliated.
  46. 46. Agency for Investment Attraction and Export Promotion Panamá Ciudad del Film Saber Commision Panamá Pacifico ONE SEM STOP SHOP LOGISTICS TOURISM FINANCIAL SERVICES AGROEXPORTS
  47. 47.