Ppt Korea
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Investment Opportunities IN BUENOS AIRES BUENOS AIRES The Province of Opportunities
Transcript of Ppt Korea
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BUENOS AIRESThe Province of Opportunities
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The Province of Buenos Aires
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Population15 millions of
inhabitants
ExportsU$S 20.3 billions
GDPU$S 83 billions
Area307.571 Km2
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The Argentine economy has shown strong fundamentals.
For the first time in decades, Argentina enjoys sustained growth with fiscal and current account surpluses.
Source: INDEC and Ministry of Economy and ProductionNote: Year 2008 Budget.
Argentina’s Foreign SolvencyCurrent Account and Trade Balance Surplus (U.S. million)
Trade Balance
Current Account
Gross Surplus
Financial Surplus
-1,00
0,00
1,00
2,00
3,00
4,00
5,00
2002 2003 2004 2005 2006 2007 2008
Argentina’s Fiscal SolvencyGross and Financial Surplus, National Administration (% of GDP)
-5.000
0
5.000
10.000
15.000
20.000
2001 2002 2003 2004 2005 2006 2007
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Trade between Argentina and the Republic of Korea. Million US dolar 2002 – 2007.
Source: Secretaría de Promoción de Inversiones, Exportaciones y Cooperación Internacional - INDEC.
Argentina – Korea: Bilateral Trade
Relations
0
200
400
600
800
1000
1200
2002 2003 2004 2005 2006 2007
Imports
Exports
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As a member of MERCOSUR, Argentina enjoys preferential access (0% ofimport duties) to a highly attractive market: 261 millions of consumers
and joint GDP of U$S 1.840 billions in 2007
MERCOSUR+ Partners in FTA´s
GDP: U$S 2.343 billionsPopulation 376 millions of inhabitants
MERCOSUR
GDP: U$S 1.603 billionsPopulation 234 millions of inhabitants
MERCOSUR+ Venezuela
GDP: U$S 1.840 billionsPopulation 261 millions of inhabitants
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10,411,3
10,0
8,5
2006200520042003
Average 10%
Buenos Aires
Buenos Aires’ Gross Geographic Product (GGP) represents nearly 40% of Argentina’s Gross Domestic Product (GDP).
Buenos Aires grew at an average annual rate of approximately 10% over the past four years, positioning itself among the fastest growing economies worldwide.
40%
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Exports of goods from Buenos Aires to Korea. Million US dollar 2002 – 2007.
4338
45
56
42
74
0
10
20
30
40
50
60
70
80
2002 2003 2004 2005 2006 2007
Source: Secretaría de Promoción de Inversiones, Exportaciones y Cooperación Internacional - INDEC.
Exports of goods from Buenos Aires to Korea.
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The economy of the Province of Buenos Aires outstands within the region.
The size of Buenos Aires and its GDP are even higher than those of other
countries within the region such as Uruguay, Paraguay and Ecuador.GDP current prices World ranking, US$ billions, year 2006
New Zealand
Kuwait
53
54
Peru
Kazakhstan
55
56
Buenos Aires
Bangladesh
57
58
Vietnam
Morocco
59
60
Slovakia61
Qatar62
103.380
96.132
93.268
77.237
76.147
65.216
60.216
57.407
54.969
52.722
Source: IMF
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Province of Buenos Aires: a highly diversified economy.
Source: Dirección Provincial de Estadística. Provincia de Buenos Aires.
Manufacturing industry
Construction17%
Agriculture, fishing and silviculture
12%
8%Others goods
Real estate, rental & other business activities25%
Transport, warehousing & communications22%
Wholesale, retail & repairs20%
17%Education, social & health services
40%Goods
60%Services
Other services
Financial intermediation
12%
4%
63%
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Buenos Aires is, due to its volume and purchase value, Argentina’s main
exporter province. The latest trends show, over the last few years, an important increase in the development of industrial
manufacturesExports by groups of products (2006)
52.6%Industrial Manufactures
19.7%Farming & Livestock Manufactures
16%Fuels & Energy
11.7%Primary Products
Source: INDEC. Census of Population, Households, and Housing 2001
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Dynamic Small and Medium-Size Enterprises:
of exporting SMEs are set up in the Province of Buenos Aires.
of Argentine industrial SMEs are located in the Buenos Aires Province.
of SMEs investment comes from its profit reinvestment.
increase in job creation by provincial SMEs from 2004 to 2006.
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30Industrial
Districts
24Industrial Parks
Several industrial clusters are located within the region to achieve competitive advantages.
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The highly developed infrastructure allows the fostering of further competitiveness, at the same time that gives rise to social integration and regional trade. Buenos Aires is a platform to reach consumers all over the world.
of Rail Network
Airports
Ports
Mobile phones per habitant
Internet Access Ports
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Argentina's high education standards are similar to those in developed countries
School Attendance Expectations (in years) Adult Literacy Rate (+15 years) %
Argentina
Italy
Israel
Brazil
Chile
LAC
Mexico
Venezuela
Indonesia
Colombia
China
Argentina
Italy
Israel
Brazil
Chile
LAC
Mexico
Venezuela
Indonesia
Colombia
China
01
02
03
04
05
06
07
08
09
10
11
01
02
03
04
05
06
07
08
09
10
11
16.4
15.7
15.6
14.6
13.4
13.1
12.5
11.7
11.5
11.5
11.2
98.4
97.2
97.1
95.7
93
92.8
91
90.9
90.4
89.7
88.6
Source: GED 2006. UNESCO 14
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The Province of Buenos Aires has the highest level of education in Latin America.
Gross tertiary education enrolment rate University Students (per 100,000 people)
Source: UNESCO
OECD
Buenos Aires
Israel
Venezuela
Uruguay
Latin America
Colombia
Mexico
Brazil
Costa Rica
01
02
0304
05
06
07
08
09
10
58
56
44
38
38
27
23
22
22
19
2.976
2.648
2.350
2.100
1.850
1.490
1.447
1.068
Buenos Aires
Venezuela
Uruguay
Chile
Peru
Mexico
Brazil
Colombia
01
0203
04
05
06
07
08
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National Public Universities set up in the Province.
The Province of Buenos Aires is highly recognized for its educational standard.
Students of Formal and Applied Sciences.
Private Universities established in the Province.
Research Professorships working in Buenos Aires’ Public Universities.
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Low labor costs. The value of labor wages is noticeably lower than the regional average.
Net Wages (Year 2006, New York = 100)
New York (USA)
Source: FAO
Tokyo (Japan)Sydney (Australia)
Paris (France)
Milan (Italy)
Seoul (Korea)
Barcelona (Spain)
Sao Paulo (Brazil)
Santiago (Chile)
Singapore
Buenos Aires
100
87
80
69
67
60
48
39
29
24
18
14
13
13
11
Mexico City
Bogota (Colombia)
Bangkok (Thailand)
Shanghai (China)
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Electricity for industrial users.Year 2006 in U$S pero KWh including taxes
Starting a business, cost of incorporate a new firmYear 2006
0.127
0.110
0.106
0.101
0.099
0.083
0.072
0.064
0.050
0.048
0.043
2.930
1.775
1.036
590
575
540
453
392
341
286
Spain
Japan
Sao Paulo (Brazil)
Santiago (Chile)
Mexico
Bogota (Colombia)
Uruguay
Korea
Buenos Aires
France
Venezuela
Australia
Japan
Germany
Mexico
Chile
Argentina
Colombia
France
Brazil
United States
Source: Regional integration Energy Commission (CIER) Source: World Bank Data
Start up costs are sensitively below the most competitiveeconomies worldwide.
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Buenos Aires provides the possibility to reach one of the placeswith the highest quality of life and standards of livingin the whole region to businessmen and their families
Quality of Living Index (Year 2006, New York = 100)
Rio de Janeiro (Brazil)
Montevideo (Uruguay)
Buenos Aires
Santiago (Chile)
Monterrey (Mexico)
Sao Pablo (Brazil)
Quito (Ecuador)
Lima (Peru)
Mexico DF (Mexico)
Caracas (Venezuela)
Bogota (Colombia)
Source: Mercer WorldWide Quality of Living Survey 2006
100
87
80
69
67
60
48
39
29
24
18
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•Significant tax exemptions
•Access to soft loans
•Preferential conditions in Provincial public biddings
• Support to achieve quality certificates
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New Industrial Promotion Regimeof the Province of Buenos Aires (Law 13.656)
Benefits
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• Reduced fees in electricity, gas, water and communication services
•Access to Provincial buildings and lands
New Industrial Promotion Regimeof the Province of Buenos Aires (Law 13.656)
• Governmental assistance in human resource management
Benefits
• Benefits on rates and municipal rights
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• Having or setting up a company in Argentina.
• Company’s economic activity must be contained in the Industrial Development Plan.
• The investment project must include the installation of a new factory, the expansion or relocation of an existing one or the incorporation of a new productive process.
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New Industrial Promotion Regimeof the Province of Buenos Aires (Law 13.656)
Application requirements
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National Regime of Promotion of Investments in Goods of The Capital and Works of Infrastructure. (Law 26.360)
Advanced return of Value-Added Tax (VAT)Accelerated amortization of capital goods in Earnings Taxes
Benefits
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Other tax exemptions• Reduction to 0% on import duty and statistical rates for the purchase of capital goods.
• Reduction to 0% of import duty for all new goods of “extrazone”, members of Great Investment Projects .
• Exemption, for a limited period of time, from import duties and ascertainment rates of destination and statistics for used production lines which are part of the projects.
• VAT reduction to 10.5% for sales and imports of capital goods (manufactured), Computers and Telecommunications (manufactured and parts/ components).
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In April 2008, the Province of Buenos Aires enacted the Law Nº 13.810 by which it adhered to the “National Regime for Private Proposal” and to the “National Regime for Private-Public Association.”
These regimes regulate private proposals concerning infrastructure and public procurements projects, public developments and services grants, licenses and any other contractual form regulated by Law Nº 6.021.
Such proposals must be presented without any express request or call by the public administration for the presentation or development of similar projects.
The requirements for the presentation are established in the decree Nº 1230/2008 enacted in July 2008.
National Regime for Private ProposalNational Regime to the Private Public Association
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National Regime for Private ProposalNational Regime to the Private Public Association
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If admitted by the relevant authorities, the project shall be declared of public interest and a bidding procedure will take place. In this case, the initiator will enjoy specifics advantages over its competitors, such as:
• When the difference between the initiator’s offer and the best qualified offer is lower than 5% of the latter, an equivalency of offers shall be established.
• If this difference is higher than 5% up to 20%, the equivalency of offers shall not apply. Instead, the best qualified offeror and the initiator shall be invited to improve their offers simultaneously and in a sealed envelope.
• Should the proposal’s author not be selected, he shall be entitled to the reimbursement of fees and expenses by the winning party for a total of 1% of the approved amount.
• The initiator’s rights shall remain in force for a period of two years as of the proposal’s presentation.
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• Buenos Aires excels in multiple sectors, as diverse as our vast province.
• Buenos Aires has created a unique business environment that allows companies to grow on the world stage.
• To attract the best and brightest, Buenos Aires has focused its policies, business incentives and university support around key industries.
Key Industry Sectors
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ESTechnology, Software and Computer
Services
Technological poles dedicated to the software industry and computer services, in which the private sector interacts with universities and provincial and national institutes.
Large numbers of professionals and technicians favour the expansion with ideal communication infrastructure, relatively low-cost property availability and an extensive network of universities and scientific-technical centres.
Various international companies such as IBM and HP, and an extensive network of national SMEs (small and medium-sized enterprises), have chosen our territory to expand their activities.
Key Industry Sectors
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Tourism and Real Estate
There is a sustained increase of receptive tourism in the country. In 2004, it grew to 1.5 million foreign tourists and to 2.3 million in 2007. Likewise, an increase of tourists’ permanence can be observed as well as an increase in the average expenses.
Clear business opportunities in the development of infrastructure associated with tourism.
The Federal Strategic Plan of Sustainable Tourism promotes policies to develop domestic, receptive, and social tourism. As regards the legislation of the Province, it includes important tax bonuses for hotels (Section 10, Act No. 13.787).
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Key Industry Sectors
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Energy
A relevant topic which may bring peace of mind to those potential investors in this particular segment is the fiscal stability that the beneficiaries of this system shall have for a period of 15 or 10 years.
The Government of the Province of Buenos Aires, in keeping with the world trends, considers that the energy-renewable sources are the natural alternative to solve the concerning the energetic increase demand without causing harm to the environment.
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Key Industry Sectors
The Province of Buenos Aires possesses a diversified energetic counterfoil (thermal, hydroelectric and nuclear energy).
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Agribusiness and food
The clear competitive advantages of Buenos Aires offer benefits against the increasing food demand in the world
The Province of Buenos Aires has historically been recognized as one of the major producers and food exporters in the world.Its soil fertility and the utilization of the highest technology place the Province of Buenos Aires among the regions of major profit per hectare in the world.
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Key Industry Sectors
The Province of Buenos Aires has scientific high-quality human resources as can be seen in areas related to biotechnology such as biology, biochemistry, agronomy and bioengineering.
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Our main mission is to contribute to the sustainable economic growth of
Buenos Aires by attracting FDI and encouraging the growth of the domestic business ecosystem.
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Visit Our Website
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www.investinbuenosaires.gov.ar
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