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BUSINESS OPPORTUNITIES IN COLOMBIA
INVESTMENT ENVIROMENT AND
2 0 1 8
C O L O M B I AOFFERS: A dynamic and stable
economy.
A growing market located strategically to facilitate business transactions with the region.
A trade platform with over 16 Trade Agreements enabling investors to
reach third markets with preferential access.
Multiple development centers and regions coupledwith a growing middle class securing a greater demand in products and services.
A growing pool of qualified Colombian companies able to
partner with internationalinvestors to reach out to regional
markets.
Diverse investment opportunities in a wide variety of sectors
450
461
477
482
541
547
555
667
706
716
750
752
795
955
960
1,002
1,313
2,572
3,389
Peru
Austria
Chile
Hong Kong SAR
Switzerland
Sweden
Singapore
Algeria
Vietnam
United Arab Emirates
Colombia
Bangladesh
South Africa
Philippines
Argentina
Malaysia
Australia
Mexico
Brazil
COLOMBIA
GDP PPP 2018*(USD billion)
Latin American Economies
Is the 32th largest economy in the world and the 4th in Latin America
*Projections. Source: IMF, WEO, April 2018
3.4%
4.4% 4.5%
2.6%
0.6%
2.0%1.6%
-0.8%
-7.0%
2.0%
-1.0%
3.8%
-0.7%
1.2%
-0.1%
3.4%
4.9%
1.1%
-3.6%
1.8%
Manufacturing industries Financial services Construction Commerce, restaurants
and hotels
Transport, warehousing
and telecommunications
Social services Agriculture Electricity, gas and water
supply
Mining and Quarrying Total GDP
2016 2017
Dynamic growth driven by its agriculture and financial services
Source: DANE – Ministry of Finance.
3.2
3.7
2.4
1.9
3.7
6.8
5.8
4.1
3.43.0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Inflation Rate (%)
In 2018 y 2019, inflationis expected to reach the target
rate set by the national bank
(2% - 4%).
Inflation
continues an
uninterrupted
decelerating
trend since
2015.
Source: Colombian National Bank (Banco de la República). Projections: IMF, WEO, April 2018.
2010 – 2019 est.
Since 2013unemployment rate has remained at a single-digit level.
11.8
10.810.4
9.69.1 8.9 9.2 9.4 9.2 9.1
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Unemployment rate (%)2010 – 2019 est.
It is expected that, in 2018 and 2019,
unemployment rate will continue to
be at a one - digit level; with a slight
decrease from 2017.
Source: Source: Colombian National Bank (Banco de la República). Projections: IMF, WEO, April 2018
Doing Business* 2018 ranking
According to Doing Business,
within the Latin American and
Caribbean region, Colombia is:
#1 In getting credit,
in protecting minority investors.
#3 In registering property, in resolving insolvency
Macroeconomic
Stability indexWorld ranking 2017-2018
43
91
95
124
37
62
Source: World Bank. Doing Business 2018. Source: Global competitiveness Index , 2017.
With a constant gross fixed capital
formation,
companies are the
most willing to
invest in fixed
capital.
Gross fixed capital formation Investment sources 2017
(Investment as GDP %)
19,7%
21,8%
23,3%
24,7%
24,0%
24,2%
27,…27,2%
27,7%
29,1% 29,0%
27…
27.0%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
(%)*
58.2%26.2%
14.5%
1.0%0.1%
Companies Households
Government Banks
Non-profit organizations
Gross fixed capital formation 2017
USD $71 billion
Source: DANE, Most recent data available.*Procolombia´s estimates
Investment as a
percentage of
GDP has a share
of about a
quarter of the
colombian
economy.
20.2
22.423.0
23.5
22.4 22.1
23.9 23.924.3
26.326.7
24.7
23.4 23.6 23.7
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Total Investment* (% of GDP)
2010 – 2019 est.
In 2018 and 2019, It is expected to be higher
than 2017
Source: IMF, WEO 2018, April. Estimates from 2017 to 2019.* Includes gross fixed capital formation and inventory variation.
GROSS DOMESTIC PRODUCTEstimated growth 2018
Colombia, one of the top growing economies
in 2018 among the largest Latin American countries
3,7% 3,4% 2,7% 2,3% 2,0% 1,8% 1,6%
Ch
ile
-15,0%
Co
lom
bia
Ve
ne
zue
la
Arg
en
tin
a
LATA
M
Bra
zil
Pe
ru
Me
xic
o
Source: IMF, 2018. In April 2018.
4.0%
6.6%
4.0%
4.9%
4.4%
3.1%
2.0%1.8%
2.7%
3.3%
0%
1%
2%
3%
4%
5%
6%
7%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
GDP constant prices
(percent change, %)The Colombian
economy is on
the path of
recovery and will
expand by
about 3-3.3% in
2018-2019
Source: IMF, WEO 2018, April.
COLOMBIA IS THE 28thmost populated country in the world
and the 3rd in Latin America
209.2
124.7
65.2 60.851.7 49.8 46.3 44.6
32.5 32.2 31.825.1
18.6 17.0 11.4 11.2 10.8 10.4 10.3 10.3 8.9 8.9 5.8 5.4 3.5
Population 2018* (millon)
Latin American Economies
*Estimated,.Source: IMF, 2018
49,7%
30,6%
26.9%
16,3%
29,9%
32.0%
2002 2003 2004 2005 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Percentage of people in poverty 2002 – 2017
Poverty
Middle Class
Colombia has continuously decreased its poverty levels.
Remarkable
reduction in
poverty rates
and a rapidly
growing
Middle class
Source: Poverty: National Administrative Department of Statistics – DANE
Middle class: The gained decade: the evolution of the middle class in Colombia
between 2002 and 2011. Document CEDE # 50. Universidad de los Andes. And
RADDAR for 2013 data.
*Middle class 2016: Estimates calculated by ProColombia
COLOMBIA
Ra
nk
ing
Term
Long Term –
Foreign
currency
BBB- BBB
Long Term –
Foreign
currency
FitchRatings MOODY S,STANDARD
& POOR S,
Baa2
Long Term –
Foreign
currency
In March 2017, Fitch Ratings* improved Colombia´s
rating outlook: from Negative to Stable
In July 2014, Moody´s was the last rating agency in
improving Colombia´s rating due to two key drivers:
Positive growth forecast
thanks to 4G
infrastructure.
1.A sound fiscal
management that will
continue in the future.
2.
an investment grade country
Source: S&P Ratings; Dinero magazine, Colombian Treasury.* Portafolio 2018
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.40
0.45High barriers
Low barriers
Latin American Economies
Closed = 1 - Open = 0
Restrictiveness Index 2017
COLOMBIALow barriers to FDI
Source: OECD, 2017.
FDI Regulatory
“The OECD investment policy review examines Colombia's achievements in developing an
open and transparent investment regime and its efforts to reduce restrictions on international
investment” OECD
AUSTRALIA
NEW ZELANDA
JAPAN
KOREA
CANADA
UNITED STATES
MEXICO
CHILE
COLOMBIA
AUSTRIA
BELGIUM
CZECH REPUBLIC
DENMARK
ESTONIA
FINLAND
FRANCE
GERMANY
GREECE
HUNGARY
ICELAND
IRELAND
ISRAËL
ITALY
LATVIA
LUXEMBOURG
NETHERLANDS
NORWAY
POLAND
PORTUGAL
SLOVAK REPUBLIC
SLOVENIA
SPAIN
SWEDEN
SWITZERLAND
TURKEY
UNITED KINGDOM
BEING PART OF THE OECD COUNTRIES MEANS THAT PUBLIC INSTITUTIONS IN COLOMBIA
WILL MEET STANDARDS OF THE DEVELOPED WORLDMORE CONFIDENCE FOR INVESTORS
COLOMBIAIS THE 37TH
MEMBER OF
THE OECD
COLOMBIA IN THE
Being part of an organization such as the
OECD is a sign of economic stability,
transparency and government discipline
OECD gives guidelines to improve trade
and investment barriers, allowing
Colombia to be in a process of continuous
improvement, peer evaluation and
institutional strengthening
Thanks to the recommendations made by
the OECD, the national government has
promoted concrete reforms for the
facilitation of trade.
The OECD provides a seal of quality for
direct foreign investment: by having to
meet public policy standards to become a
member, these improve. This results in
increased confidence of foreign investors
275
136
104
63 62 58 50 46 40 35 30 30 29 25 24 19 19 17 17 15 15 15 14 11 10 10 7 7 6
-2
Developed economies
(USD billion)
Top 30 host economies in 2017
Developing and transition economies
COLOMBIA
Colombia is part of the top 30 destinations for FDI
Source: UNCTAD – World Investment Report 2017
COLOMBIA
-9%
-7%
-5%
-3%
-1%
1%
3%
5%
-2.50% -0.50% 1.50% 3.50%
Tota
l In
ve
stm
en
tG
row
th
(6 y
ea
rs,
%)
GDP GROWTH (6 years, %)
Brazil
Argentina
Chile
Mexico
Peru
Colombia
-3%
-2%
-1%
1%
2%
3%
4%
5%
-2.5% -0.5% 1.5% 3.5%Co
nsu
mp
tio
nG
row
th
(6 y
ea
rs,
%)
GDP GROWTH (6 years, %)
Brazil
Argentina
Mexico
ChileColombia
Peru
GDP GROWTH VS. CONSUMPTION2012-2017 - (%)
GDP GROWTH VS. INVESTMENT2012-2017 - (%)
is leading a sustainable growth in the region
Source: ProColombia based on World Bank data and Canadean Travel and Tourism. Bubble sizing corresponds to the size of the economy.
FDI has been
largely driven
by non-miningsectors over
the last 2 years
FDI Inflows
(USD millon)2010 – 2017
Top Investing countries in Colombia
2000-2017
1,512
7,468 7,0958,121
9,8548,584
11,5899,951
1,1642,083
4,918
7,180 7,9458,089
6,314
3,139
2,2614,062
1,3621,578
2010 2011 2012 2013 2014 2015 2016 2017 2017
(Q2)
2018
(Q2)
Oil & Mining
Other sectorsSource: Balance of Payments - Banco de la Republica. Share of all countries with positive cumulative investment, The information includes reinvested profits or investments in the oil sectorNote: the list of the top countries investing in Colombia does not include Panama.
United States
USD 34,745 million
16,3%
Panama
USD 20,531 million
15,0%
Spain
USD 15,821 million
9,6%
Switzerland
USD 9,841 million
8,7%
MAIN GLOBALINVESTMENTPROJECTS
Investment Projects from the world
to Colombia by Industry Sector
2007 - 2017
262
137
10882
54
49
43
35
32
31
177
Software and IT Services Business Services
Financial Services Machinery and equipment
Logistics and Transportation Mining Industry
Chemicals Automotive Industry
Real estate Tourism
Others
SectorJobs
generated
Real estate* 23.812
Software and IT Services 22.999
Mining industry 12.115
Logistics and transportation 11.231
Tourism 9.024
Agroindustry 8.714
Financial services 8.108
Construction materials 7.740
Automotive industry 5.242
Energy 470
Others 53.027
Total 162.482 Total projects : 1.010
Fuente: fDi Markets. *Incluye construcción y servicios profesionales. Grupo casino y Parque Arauco registran el mayor número de empleos.
in Colombia
In the first quarter 2018, Colombian outward investment flows
grew 55% over the same period of 2017.
FDI Outward FlowMain countries
2000 – 2017
856.8
937.7
192.4
4,7
95
.5
1,2
67.8
1,2
78.8
3,0
85.1
3,5
04.7
5,4
82
.7
8,4
19
.8
-606.2
7,6
52
.1
3,8
99
.0
4,2
17
.7
4,5
17
.4
3,6
89.6
1,2
74.8
448.0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017
(Q2)
2018
(Q2)
Stock of outward FDI (USD millions)2002 – 2017
Top Latin American investors
to the world, 2017(USD billions)
Colombia
USD 3,6
Mexico
USD 5,1
Chile
USD 5,1
Argentina
USD 1,1
Fuente: Balanza de Pagos – Banco de la República
Source: Balance of Payments - Banco de la República. UNCTAD, 2017.
United States
USD 7.745 million
13%
Panama
USD 46.408 million
17%
Spain
USD 5.886 million
10%
Chile
USD 4.752 millones
9%
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.
Total number Free Trade:
105Number of permanent
Free Trade Zones:
39
Number of Special StandingSingle enterprise:
66
Reduced income
tax and VAT
Exemptions
allowing access
to local market
Source: Directorio de Zonas Francas 2017-2018 DANE
1
2
3
5
11
12
11
13
17
19
20
39
50
65
105
Brazil
Paraguay
Puerto Rico
Peru
Costa Rica
Argentina
Haiti
Uruguay
El Salvador
Guatemala
Panama
Honduras
Nicaragua
Dominican Republic
Colombia
COLOMBIA
The new world trade dynamic
allows Colombia to take
advantage of different
opportunities, such as:
Access to demanding and
sophisticated markets, Increase
the quantity and diversity of
exports, Transfer of technology,
Improve the quality of
production.
Number of FTZ in 2018
Source: DANE y AZFA.
is the Latin American country with the most Free Trade Zones
Free Trade Zones represent an important opportunity for third countries to take advantage of the country's Trade Agreements
- Plastic packaging for the beverage and
the cosmetics industry
- Automotive assembly
- Home appliances
- Clothing
- Processed foods
- Aeronautics
- Medical devices
Input supply
Investment opportunities in Colombia in value-added production chains
Supply with value-added intermediate products
Free Trade Zones have a high potential for
generating productive chains
JapanAromatic products -
Glasses -
Flats laminated with steel or iron -
Vehicle parts & accessories -
PerúCotton yarns-
MexicoCables and wires -
Batteries and accumulators -
Electrical Parts -
Flats laminated with steel or iron-
United StatesAccessories and Auto Parts -
Electrical equipment -
Cotton Yarn -
Plastic Resins -
C O L O M B I A
Source: High impact Free Trade Zone–2016, CLG
Canada
United States
Mexico
GuatemalaHonduras
El Salvador
Ecuador
BrazilPeru
Argentina
Paraguay
Uruguay
AELC
European Union
Israel
Japan
Panama
Chile
Bolivia
Costa RicaVenezuela
South Korea
Cuba*
Nicaragua*
Caricom*
AustraliaNew
Zealand
Singapore
Turkey
has access to 60 countries and more than 1.5 billion consumers through its network of trade agreements
Pacific Alliance
In force
Signed
In negotiation
C O L O M B I A
* Partial scope agreements (PSA)- - - Blue line shows Pacific Alliance´s member countries others than Colombia –(Chile, Peru and Mexico).- Source: Chamber of Commerce, Industry and Tourism, Colombia,2017
C O L O M B I AMember state of the Pacific Alliance
Canada
MexicoColombia
Chile
PeruSingapore
AustraliaNueva Zealand
At the XII Summit of the Pacific Alliance (October 2017)
the creation of the Associate members category was
announced and negotiations were started to grant this
status to Australia, Canada, New Zealand and
Singapore
This figure seeks to strengthen trade, regional and free trade integration, as well as benefit from regional platforms and promote trade agreement negotiations.
C O L O M B I ALess than 6 hours away by airplane from the maincities in the americas
international
direct
frequencies per
week.
domestic
frequencies per
week.
1.109
5.600More than
New York(5hr 35min)Los Angeles
(7hr 40min)
Mexico city (4hr 55min)
Paris(10hr 55min)
Madrid(9hr 40min)
London(10hr 26min) Tokyo
(25hr 05min)
Beijing(22hr 45min)
Dubai(20hr 45min)
Moscow (15hr 58min)
Miami (4hr 00 min)
Santiago de Chile
(5hr 55 min)
Berlin (13hr 45min)
Hong Kong(22hr 45min)
Toronto(6hr 10min)
Mumbai (20hr 50min) Seoul
(23hr 35min)Sao Paulo(6hr 10min)
Istambul(15hr 16min)
Lima (3hr 05min)
* This information takes into account the routes departing from international airports in Barranquilla, Bogotá, Cali, and Medellín. Source: Routes and Tariffs - Tools for the Colombian Exporter, processed by ProColombia.
C O L O M B I Acounts with more than 4,500 maritime export routes and has access to 680 ports around the world.
ACCESS TO CHINA IN JUST 29 DAYS (SHANGHAI)
ACCESS TO USA IN JUST 3 DAYS (PORT EVERGLADES)
ACCESS TO PERU IN JUST 2 DAYS
(CALLAO)
ACCESS TO THE NETHERLANDS IN JUST 13 DAYS (ROTTERDAM)
SANTOS
(11 DAYS)
BUENOS AIRES
(17 DAYS)
CAPETOWN
(34 DAYS)
NUEVA YORK
(6 DAYS)
BARCELONA
(15 DAYS)
LONDON
(17 DAYS)
KOLKATA
(43 DAYS)
MONTREAL
(9 DAYS)
SHANGHAI
(29 DAYS)
HONG KONG
(33 DAYS)
SIDNEY
(21 DAYS)
BUSAN
(25 DAYS)TOKYO
(22 DAYS)
AUCKLAND
(17 DAYS)
VANCOUVER
(17 DAYS)
LOS ANGELES
(10 DAYS)
CALLAO
(2 DAYS)
VALPARAÍSO
(5 DAYS)
SAINT
PETERSBURG
(21 DAYS)
MIAMI
(4 DAYS)
VERACRUZ
(5 DAYS)
KARACHI
(37 DAYS)
Source: Routes and Tariffs - Tools for the Colombian Exporter, processed by ProColombia.
The Airport located in Bogota is among the top airports in the world
#1 IN LATINAMERICA
#11
WORLDWIDE
According to Airhelp scores 2017, El Dorado International Airport is:
Source: Airhelp Scores , Airport Worldwide Rankings 2017
Evolution of Colombian Exports, 2007 – 2017January-June 2018 (USD millons)
13,756 19,708 18,461
25,922 40,863 44,024 42,468 38,494
20,954 17,576 22,938
16,235
17,918 14,385
13,791
16,052 16,101 16,359
16,363
15,063 14,193
14,942
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
54.85758.82660.125
36.01839.71
332.846
37.62
629.991 31.76
8
37.88
0
56.915
10,63
4
12,62
1
7,227 7,867
Jan-Jun 2017 Jan-Jun 2018
14,7%
Agroindustry and Metalworking sectors performed the most
dynamism in their exports during 2017.
MiningNon - Mining
Colombian
exports
increased 19%
in 2017
compared to
the previous
year
Source: DANE.DIAN, 2018.
Llegada de viajeros a Colombia2013 – 2017
Between
January and
July of 2018, receptive tourism
grew 32,9% over
the same period
of 2017
Enero – Junio 2018 (USD millones)
… 314,207 272,206 305,820 344,624 561,791 583,967 689,280 724,302 793,775
1,153,247 1,313,199 1,528,331 1,734,239 2,159,894
1,726,300 1,967,814
2,288,342 2,593,057
3,233,162
2013 2014 2015 2016 2017
4,179,1884.446.446
5.357.418
6.531.226
3,748,033
203,849 224,157 405,7
22
420,368
1,149,007 1,595,
702
1,719,
846
2,383,
232
2017 Jan - July 2018 Jan - July
3,478,424
4,623,459
Cruisers Colombians who are foreing residents Cross- border Non- resident foreigners
Source: Migration Colombia. Elaborated by ProColombia
The upward trend
in tourism figures
has had an
important effect on
the national
generation of
foreign income
Foreign income generated by sector 2010-2017 (USD Millions)
3,4403,801
4,364
4,758 4,8875,236
5,712
4,084
1,884
2,608
1,910 1,884
2,473 2,527 2,418
15911,229 1,240 1,256 1,324 1,362 1,285 1,301
1020748 815 822 764 836 803 915
696
0
1,000
2,000
3,000
4,000
5,000
6,000
2010 2011 2012 2013 2014 2015 2016 2017
Tourism Coffe Flowers Bananas
According to figures from the
Colombian National Bank, tourism
was the second foreign income
generator in 2017, surpassing
traditional products such as coffee,
flowers and bananas.
In 2017, foreign income generated by
tourism was USD 5,788, which
represented an increase of 5.4%
compared to the same period of the
previous year.Source: BanRep-DANE. * Includes passengers transport and travel accounts. Preliminary data
C O L O M B I Ais one of the countries with the greatest potential for expansion in agricultural land
• Colombia, with multiple thermal floors, is able to offer differentagricultural products throughout the year.
• Colombia ranked 13th worldwide and 1st in Latin America inthe food sustainability index.
• “Plan Colombia Siembra” seeks to increase the agriculturalproduction with 1,000,000 new hectares.
• The availability of water resources in Colombia is one ofthe highest in the world (FAO*). The country ranked fourthworldwide in sustainable agriculture.
Source: FAO, Food Sustainability Index, 2017
COLOMBIAcompared to…
COLOMBIAfirst destination for safe investment
Argentina
Brazil
Chile
Colombia
Costa Rica
Ecuador
El SalvadorGuatemala
Honduras
Jamaica
Mexico
Nicaragua
Paraguay
Peru
Panama
Dominican
Republic
Trinodad and Tobago
Uruguay
Venezuela
0
2
4
6
8
10
12
0 2 4 6 8 10
STR
EN
GTH
OF L
EG
AL
RIG
HTS
IN
DEX
(0
-12 B
EST)
STRENGTH OF INVESTOR PROTECTION (0-10 BEST)
First in the Legal rights index (Worldwide)
First in the strength of investor protection Index (LAC region)
COLOMBIA RANKS:
Source: Global competitiveness Index , 2017.
COLOMBIAA destination with outstanding local
suppliers in the LAC region
Panama
Colombia
GuatemalaBrazil
Dominican Republic
El SalvadorPerú
Chile
Argentina
UruguayJamaicaHonduras
Trinidad and Tobago
Nicaragua
Ecuador
Mexico
Costa Rica
Paraguay
Venezuela
1
2
3
4
5
6
7
1 2 3 4 5 6 7
LOC
AL
SU
PP
LIER
QU
ALI
TY (
1-7
BEST)
LOCAL SUPPLIER QUANTITY (1-7 BEST)
Investor protection index (0-10) 2007 - 2017
Local Supplier Quantity
Local supplier quality
#1
#3
COLOMBIA:
Source: Global competitiveness Index , 2017.
Committed to invest in human capital
COLOMBIA
World Talent Ranking 2017 (0-100 Best)
39.09
39.4
40.09
42
43.49
50.37
Peru
Mexico
Colombia
Brazil
Argentina
Chile
Colombia was ranked fourth
in Latin America by
the Human Talent Report
Source: IMD
ranks 3rd in Latin America in the Services location indicator by A.T. Kearney
COLOMBIA
Global Services Location Index- 2017
"Colombia registered a significant improvement in this year’s position, rising 10 places to the 10th position.
2.27
2.55
2.37
2.73
2.97
2.72
2.85
2.54
2.65
0.97
0.8
1.53
0.91
1.19
1.61
1.45
1.33
2.02
1.65
1.67
1.25
1.63
1.25
1.35
1.43
1.88
1.27
46 - Uruguay
41 - Panama
36 - Argentina
31 - Costa Rica
20 - Peru
13 - Mexico
10 - Colombia
9 - Chile
5 - Brazil
Financial atractiveness
Talent and availability of
human capital
Business environment
Between 2011 and 2015, Colombia contributed with the 12% of the new
BPO centers and Shared Service Centers in Latin America and the
Caribbean.”
Source: A.T. Kearney, 2017
79 INVESTMENTPROJECTSin creative industries
1615
6
4
9
3
6
2012 2013 2014 2015 2016 2017 2018
Number of investment projects in creative industries
2012 – 2018 (June)
Jobs created(2006 – 2018)
7.656
Capital invested(2003 – 2018)
USD 869 millon
CREATIVE INDUSTRIESin Colombia
SOME SUCCESS STORIES OF INVESTMENT
Capital invested:USD 250 millionJobs created:
3.000Venezuela
Capital invested:USD 146,5 million
Jobs created:129
United States
Capital invested:USD 130 millionJobs created:
505Mexico
OVERVIEW OF THE INVESTMENT PROJECTS IN CREATIVE INDUSTRIES, COLOMBIA
2003 – 2018 (JUNE)
Number of projects 87
Jobs created 8.079
Average of Jobs created per
project92
Capital invested(USD million USD 895,1
Average capital invested per
project(USD million)USD 10,3
46.0%
31.0%
19.5%
2.3% 1.2%
Business services
Software and TI services
Comumunications
Leisure and entertainment
INVESTMENT PROJECTS IN CREATIVE INDUSTRIES, SECTORS2003 – 2018 (JUNE)
Source: fDi Intelligence from The Financial Times Ltd
COLOMBIA
Working age
population rate
(15-64) years)
Enrolment
secondary
education
Enrollment
tertiary
education
68,8% 66,3%
98,1% 97,3%
58,7% 36,9%
69,6%
99,7%*
50,6%*
65,4%
98,0%
34,3%**
Highest enrolments rates in education
Source: World Bank, latest update available: 2016. * Last update 2015. Last update 2006.
Major
multinational
corporations
have chosen
Colombia as an
investment
project
destination
INFRASTRUCTUREA major driver for growth
Some niches with opportunities:
AIRPORTS PORTS ROADS
FLUVIALNATIONAL PLAN
STEP RAILWAYS
USD $5.6 billion in rehabilitation, expansion and modernization of 31 airports (2015 – 2018).
The Fluvial National Plan consists of 13 river proyects with an investment of USD $2.9 billion.
Until 2035, USD $17 billion will be invested to increase road infrastructure:
7,000 kms of new highways1,370 kms of double lane highways141 tunnels1,300 viaducts
USD $3.3 million investment to recover more than 1,769 kms of railways network.
Source: Intermodal Transport Master Plan 2015-2035 (PMTI , Ministry of
Transport - Exchange rate: USD = COP$3,000
In 2014, Iridium awarded two roadconcession projects in thegovernment’s “highwayconcession program (4G)”.Those projects accounts 78Km.
SUCCESS STORIES -INFRASTRUCTURE:A major driver for growth
S P A I N
Strabag will be in charge of 75 Km new highways, and themodernization of a 65 km section.
A U S T R I A
Shikun & Binui awarded the project “Corredor Perimetral de Oriente de Cundinamarca = 153 km length ”
I S R A E L
HEC will build “The Mar 2 highway”that will improve northeast logistics development. Total project length: 246 km.
C H I N A
Source: ProColombia con base en prensa nacional
SECTORS OFOPPORTUNITY - ENERGY:A diversified resource base and a strategic location in the Americas
546 power generation projects registered in different stages:Installed capacity up to 15,940*
22 Open public bids for power transmission projects in Colombia**
High potential in Biofuels and alternative energies.
Projects focused on renewable energy will have special VATexemptions, deduction from taxable income and customsexemptions – Law 1715
Source: World Economic Forum 2016 and UPME / * UPME (Colombian
Planning Unit of Mines and Energy). MW approx.. **Bids open by UPME
Colombia ranked first in Latin America and eighth inthe world according to the “Energy ArchitecturePerformance Index 2017”. WEF, 2017.
THERMAL PCH SOLAR
WIND BIOMASS TRANSMISSION NETWORK
The Global Energy Architecture Performance Index 2017
Some niche opportunities
0.74
0.75
0.75
0.75
0.76
0.77
0.77
0.78
0.79
0.8
Uruguay
New Zealand
Colombia
Spain
Austria
Denmark
France
Sweden
Norway
Switzerland
Endesa, the subsidiary of the Italian group Enel, acquired participation in Emgesa and Betania power generation companies with 2,895 MW of installed capacity.
SUCCESSSTORIES - ENERGY:A diversified resource base and a strategic location in the Americas
S P A I N
Between 2017 and 2019, the Italian multinational Enel will invest about USD 561 million in energy projects in Colombia.
I T A L Y
Colombian subsidiary of AES Corporation (Applied EnergyServices). Chivor is one of the country's largest power generator with a total effective installedcapacity of 1,000 MW.
U N I T E DS T A T E S
The low-grade thermal coal plant, Termopaipa located in Paipa,was the first power plant planned overseas, financed and built by Steag.
G E R M A N Y
Source: Procolombia based on national press
SECTORS OFOPPORTUNITY –AGRIBUSINESS
AQUACULTURE COCOA CEREALS
FRUITS AND VEGETABLES
MEATPROCESSED
FOOD
RUBBER BIOFUELS FORESTRY
Expansion of cultivated areas with a high global demand of
agricultural products, construction of collection centers and
assembly of processing plants (IQF, pulps, jams).
Construction of cocoa processing plants for cocoa butter, cocoa
liquor and chocolate products.
Colombia has the fourth dairy herd and largest dairy production in
the region, which guarantees easy access to raw materials for the
subsequent transformation of dairy products.
Build specialized industrial facilities to transform natural rubber into
value-added elements.
Investment opportunities
Some niche opportunities
The American investment fundspecialized in the agribusiness sector, invested in the company, “Cacao de Colombia”, by setting up a second production plant in Popayán.
Brazilian company dedicated to theproduction and commercialization of beef, leather, live animals and itsbyproducts. The company acquired freezersfrom Red Carnica S.A.S located in Cordoba.
C H I L E
Alliance between CCU and Postobon: Construction of a production plant with the aim of boosting the beer market sector through production, commercialization and distribution of beer and non-alcoholic beverages based on malt.
B R A Z I LU N I T E DS T A T E S
Source: Procolombia based on national press
SUCCESS STORIES -AGRIBUSINESS
Colombia, a sustainable
destination.
AUTOMOTIVE AND AUTO PARTS
METALWORKINGCONSTRUCTION
MATE
Setting up factories that transform iron and steel productswith the aim of meeting other industries demand.
Setting up assembly lines to produce commercial vehicles(buses), cargo vehicles and motorcycles to serve bothlocal and international markets using Colombia as anexport platform.
Establishment of cement, ceramic and prefabricatedproduction plants to supply local and internationalmarkets.
Some niches of opportunity:
SECTORS OF OPPORTUNITY –METALWORKING ANDOTHER INDUSTRIES
Colombia has specialized in the production of vehicles and motorcycles to meet local and
international demand as well in the auto parts market that allow it to respond to the needs
of assemblers and the aftermarket.
The development of sectors such as construction, automotive, shipyards and metallurgy
opens a huge investment potential in the manufacture of metal structures, tools and
machinery.
Colombia has a portfolio of projects for the construction of housing, road infrastructure
and air transport, which makes it an attractive destination for companies in the sector.
The company invested in a float glass production plant to supply the national market and export to countries in the Andean region.
SUCCESS STORIES –METALWORKINGAND OTHERINDUSTRIES
F R A N C E
The Japanese company of continuous casting and production of high precision parts, decided to open a plant to serve the American market.
J A P O N
Foton invested more than US $ 12 million in a new assembly plant for SUV and 4x4 models.
C H I N A
Whirlpool and the Colombian company Haceb, signed an alliance to produce washing machines in a plant of US $ 70 million.
U N I T E DS T A T E S
Source: Procolombia based on national press
Colombia,a sustainabledestination
SECTORS OF OPPORTUNITY - CHEMICALS ANDLIFE SCIENCES
FERTILIZERS NATURAL INGREDIENTS
FOR COSMETICS
PLASTIC PACKAGING
Some niche opportunities
Colombia, a sustainable destination
Setting up research centers on development of cosmeticsbased on natural ingredients. Taking advantage of theColombian biological and floristic diversity; and the taxincentives provided by the National Government for R&Dprojects.
Setting up agrochemicals formulation and productionplants to serve the growing local market.
Assembly of plastic packaging production plants to meetthe needs of the LAC region.
Colombia is the second country in the region with the highest fertilizer consumption per
hectare. In Latin America, Colombia is 5.5 times above the average.
The country has positioned itself as a hub for the production of cosmetics and toiletries at a
regional level. It is the fourth manufacturing industry with the highest exports in the country
Colombia counts with high quality raw materials for packaging with highly technical control
equipment.
The new factory set up in Colombia is one of its three most modern factories in the world, thanks to its cutting-edge technology and ecofriendly facilities.
T H E N E T H E R L A N D SA N D U N I T E D K I N G D O M
Started its production operations in 2013, after the acquisition of Abocol, the most important agrochemical company in Colombia.
N O R W A Y
The Indian group inaugurated a new production plant in Villa Rica (Cauca), from which it manufactures 180 million laminated plastic tubes for consumer products.
I N D I A
The Indian group inaugurated anew production plant in Villa Rica (Cauca), from which it manufactures 180 million laminated plastic tubes for consumer products.
U N I T E D S T A T E S
Source: Procolombia based on national press
SUCCESS STORIES -CHEMICALS ANDLIFE SCIENCES
SECTORS OFOPPORTUNITY – SERVICES: :IT, BPO, ITO, SharedServices, Apps
BPO BACKOFFICE –FINANCE
BPO -TELEMEDICINE
BIG DATA ANALYTICS
DATA CENTERS FINTECH SMART CITIES
SHAREDSERVICECENTERS
Colombia is one the three major
providers of IT services in the region.
Between 2001 and 2015, 3,405,211 graduates indifferent levels of education,
Source: MinTic and IDC
1.3 million bilingual people in Colombia in 2016.
1st place in Suramericana in labor qualifies, accordingto IMD (2015)
6th place in the region in level of companies bilingualismin 2016.
Colombia has 10 submarine cables, with eight exits throughthe Caribbean Sea and one through the Pacific Ocean.
Some sectors with opportunities:
IBM opened its third Data Centerin Colombia offering a processing power of 5 petabytes.It´s one of the most advanced centers for Cloud Computing andBig Data Analytics companies inthe country.
SUCCESS STORIES –SERVICES It has two operations centers in
Bogota where it manages a diversified portfolio of blue ribbon clients, with the capacity for up toa thousand positions.
E S P A I N
AT&T acquired DirecTV Colombiaand it´ll increase the telecoms offer Colombia through new services and packages.
Its BPO operation currently has more than 1,400 credit processes, customer service, and document management active positions.
J A P O N
U N I T E DS T A T E S
U N I T E DS T A T E S
Source: Procolombia based on national press
IT, BPO, ITO, SharedServices, Apps
SECTORS OFOPPORTUNITY – FASHIONINDUSTRY:
TEXTILES GARMENTS
Local industry currently supplying with imported inputs.Textile imports have increased in the last 10 years, it isnecessary to supply the increasing demand of inputs bythe local production of garments.
Colombia as an export platform, the country counts with a strategic location, high industrial capacity and more than 16 free trade agreements.
Strategic alliances. There are qualified Colombiancompanies able to associate with foreign investors inorder to reach regional and international markets.
Some niche opportunities:
Industry with a diversified basket of products
This company has operated in Colombia for more than fifty yearsas a Coats chain in the city of Pereira, Risaralda.
SUCCESSSTORIES –FASHIONINDUSTRY:
Operates with the company Colombiana de Hilados, with a manufacturing plant in the Free Trade Zone of Rionegro, Antioquia. The plant has the capacity to produce carded open-end and combed ring-spun.
Polymer Group: It has a manufacturing plant in the Pacific Free Trade Zone in Cali, Valle del Cauca.
Acquired shareholding in the Colombian company Coltejer.
I T A L I A
U N I T E D K I N G D O M
U N I T E D S T A T E S
Source: Procolombia based on national press
U N I T E D S T A T E S
Industry with a diversified basketof products
SECTORS OFOPPORTUNITY– TOURISMInfrastructure,real estateand retail
NATURE & ADVENTURE
WELLNESS
ENTERTAINMENT CITY HOTELS
Investment Opportunities in:
2013 2014 2015 2016 2017
3,74,2
4,4
5,1
Inbound tourists*2012 – 2015
(million of people)
*Inbound tourist includes: resident Colombians abroad, foreign non resident in Colombia, special cross borders, and cruise visitors.Source: Migration Colombia and MinCIT. ProColombia calculations.
Colombia ranks 25th in the ICCA ranking (InternationalCongress and Convention Association)
Luxury and wellness hotels can take advantage of theColombian biodiversity to offer high quality services.
Corporate Tax Exemption for hotels with more than 61% of their building by December 2017
VAT exemption for health tourism services
6,5
Some niche opportunities
This American chain has 15 hotels in Colombia with more than 1,850 rooms
SUCCESSSTORIES TOURISM INFRASTRUCTURE,
Holiday Inn hotels opened in Bogota and Cartagena, totaling 331 rooms.
NH Hotels has 15 hotels in Colombia, with more than 1,600 rooms
This luxury chain has 2 hotels in Bogota with 126 rooms in the more exclusive locations in the city
C A N A D A
U N I T E D K I N G D O M
U N I T E DS T A T E S
Source: Procolombia based on national press
real estate and retail
E S P A I N
SECTORS OFOPPORTUNITY-SERVICES,CAPITAL FUNDS
REAL ESTATE HEALTH BANKING
TIC BIOTECHNOLOGY ENERGY
AGRIBUSINESS INFRASTRUCTURE
Colombia offers several benefitsto invest in capital funds.
Colombia was ranked fourth in Latin American andthe Caribbean due to its favorable conditions for development of the PEF industry.
19 International General Partners in Colombia.
Capital funds such as Advent International and Victoria Capital have chosen the country as a hub to service
other countries in the region
Some niches with opportunity
Colombia, a sustainable destination
Source: MinTic and I
Investments mainly in the sectors of infrastructure, energy and real estate.Investments in the Colombian power company SA as part of its expansion plan in the region.
Latin American fund that invested more than US $ 20 million for the development of three cancer treatment centers of the medical society Oncologists of the West, in the Coffee Cultural Landscape and Valle del Cauca.
Mainly infrastructure investments.In Colombia itsinvestments have been focused in companies such as Intertug and Ocensa
C A N A D AU N I T E D S T A T E S
Source: Procolombia based on national press
U N I T E D S T A T E S
SECTORS OFOPPORTUNITY-SERVICES,CAPITAL FUNDSColombia, aSustainabledestination
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