1. Presentación Colombia - InglésCOLOMBIAInvestment Environment and Business Opportunities in ColombiaSeptember -2014
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
6. Proexport in Colombia
www.proexport.com.co
25
8 Regional Offices
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 del Norte.
Cartagena. Medellín. Bucaramanga. Cali = Cámara de Comercio.
Pereira. Bogotá. Manizales. Cúcuta.
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 in the world
8. General factsColombia is the country with the highest biodiversity per km2 Itis among the 17most megadiversecountries of the planet. 55% ofthepopulationislessthan30yearsold.Thereareeightcitieswithover500thousandpeople. Withanextensionof1,141,000km2almost3timesthesizeofCaliforniaandtwicethesizeofTexas. ColombiaistheonlycountryinSouthAmericawithaccesstoboth,theAtlanticandthePacificocean.
9. Times of great economic achievementsGDP2013: +4.7% GDP 2012 : +4.0% Higher than the Latin American average growth (3.2%). Controlled Inflation: 1.94% Below target inflationUnemployment rate 2013:9.6% Unemployment rate 2012: 10.4%. FDI2013: US$16.354FDI 2012 : US$ 15.119Record figure in Colombian historyFigures in US Millions 1.02 million barrels per day of oil productionThirdlargestproducerinSouthAmerica
10. A competitive location with easy access to markets around the globeMexicoCity4H45MLos Angeles8H20MQuito1H30MLima3H00MPeruEcuadorMéxicoUnitedStatesCanadaBrazilArgentinaChileSpainFrance
Germany
Over878weeklydirectinternationalflights.
Morethan4,500weeklydomesticflights.
Lessthan6hourstothemaincapitalcitiesinLatinAmerica.
Morethan20differentairlinesoperatinginColombia. New York 5H35MToronto6H05MCaracas 1H20MSantiago Chile 5H00MBuenos Aires 6H15MSao Paulo 5H45MMadrid9H40MParis 10H40MFrankfurt11H15M
11. The second largest spanishspeaking country in the world and the 24thmost populatedSource: DANE. EIU -EconomistIntelligenceUnit. 2014. * Forecast. 202,8117,590,6
83,5
81,064,650,547,735,630,830,223,517,710,7
9,7
8,58,28,17,1
5,5
5,14,4Población 2014* Millones
12. Colombia is within the 30thlargest economy in the worldand one of the largest non-OECD economies
150
226302300397425
373
432448387401
415
5956008161,176
1,790
2,3242,560Nueva … DinamarcaIsrael
Noruega
PerúHong KongChileSuecia
Belgica
SingapurSuizaVietnamColombia
Malasia
ArgentinaAustraliaMéxicoBrasilAlemania
GDP at PPP –2015 en
US$ Billion
Note:GDPadaptedtoPurchasingPowerParityPPP.Projecteddata. Fuente: FMI . 2014
13. 0
1
23456
7
8
9
ChinaIndia
Nigeria
VietnamIndonesiaColombiaEgypt
Turkey
BrazilRussiaSouth KoreaMexicoSouth Africa
United States
Canada
Japan
United KingdomGermany
France
ItalyColombiawillcontributesignificantlytoworldeconomicgrowthBRICsOtherEM
CIVETsG7Why? Respect for private and intellectual property. Natural resource boomAdvance in national security and peace processFTAs with almost 50 countries (including the US) Rapid FDI growthSource: “Diamonds in the rough: Unearthing opportunity in an uncertain world” . The Economist March 2013.
14. Colombia's per capita income has nearly doubled since 2000Per capita National Income (PPP) 2000 –2018p, US$
HighIncome
MiddleHighIncomeMiddleLowIncome
LowIncome
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 more.
5,805
8.850
10.800
14,1100
2.000
4.0006.000
8.000
10.000
12.000
14.00016.000
15. Macroeconomic stability and strong economic performance in the long term
P: Projected
Source: DANE; Bancode la República; FedesarrrolloJuly 2014, EIU -Economist Intelligence Unit . 2014
InflationGDP
Unemploymentrate
GDP Growth, Inflation and unemployment Rate 2002 –2018p (%) 15.6
14.1
13.7
11.8
12.0
11.211.3
12.0
11.8
10.8
10.49.67.06.55.5
4.9
4.5
5.7
7.7
2.0
3.7
2.41.9
9.1
9.0
8.9
8.98.63.03.43.6
3.5
3.3
2.5
3.9
5.3
4.7
6.76.9
3.5
1.7
4.0
6.64.04.75.05.0
4.7
4.6
4.6
2002
2003
2004
20052006
2007
2008
2009
20102011201220132014p
2015p
2016p
2017p
2018p
16. Economic growth has been fueled by high rates of investment
Gross Capital Formation (% of GDP) 2000 –2016f
Source: EIU –EconomistIntelligenceUnit
Figures at constant prices of 2005.
p-Projected
16% 18% 25%
24%
27% 28%
31%
2000
2001
2002
2003
2004
2005
2006
2007
2008200920102011
2012
20132014p
2015p
2016p
2017p
2018p
17. A rapidly growing middle class16.2% 25.3%
37.3%
46.3%
43.8%
59.9%
2002
2012
2020
2025
Below Baseline Scenario
Above Baseline Scenario6.7
6.722.319.032.124.7
Millioninhabitants11.6
11.6
Source: Fedesarrollo, 2013
Middle class in Colombia as apercentage 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 $333.
18. Economic growth, Investor Confidence and Security
* Figures do not include FDI registered for SabMilleradquisitionof Bavaria in 2005 (USD 4,800 MM). ** Perception of insecurity as a key issue affecting industrial growth in the country. Monthly Industrial Survey -ANDI. Source: National Business Association of Colombia -ANDI. Balance of Payments –Bancode la República.
0,0
5,0
10,015,020,025,0
30,0
0
1000
2000
3000
4000
5000
6000
IED -US$ million*
Insecurity perception**
19. Colombia, an investment-grade country with positive outlook
Source: S&P Ratings; Revista Dinero, ColombianTreasury.
S&P (April 2013) and Fitch(december2013)improved Colombia´s sovereign debt outlook. “Effective implementation of recent fiscal reforms could improve its debt and interest burdens”–S&P(July 2014) Moody´s upgrades Colombia's rating to Baa3 from Baa2.
RatingDate
Rating Agency
Long Term–Foreign Currency
Short Term– Foreign Currency
Long Term–Local Currency
Short Term –Local CurrencyOutlook
Stable
BBB
A –2
BBB +
A -2
24–Apr-201324–Apr-20135 –Mar -20075 –Mar -2007Long Term– Foreign CurrencyShort Term– Foreign CurrencyLong Term –Local CurrencyBBB F –2BBB+ 13 –Dic-201322 –Jun-201122 –Jun-2011
Long Term–Foreign Currency
Positive
Baa2
28–Jul -2014
Term
Stable
ThekeydriversforMoody´supgradeonJuly2014were:
1.Expectationsofcontinuedstronggrowthdynamicsdespiteexternalheadwindsandrobustlong-termgrowthprospectssupportedbythefourthgeneration(4G)infrastructureinvestmentprogram;
2.Soundfiscalmanagementthathasledtomoderatefiscaldeficitscoupledwithcontinuedcompliancewiththefiscalruleandexpectationsthatthiswillcontinue.
20. Colombia with the most reforms in Latin America towards the improvement of Business environment
Source: DoingBusiness 2014. WorldBank. *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
Changein thenumberof positions
23
16
13
10
6
-1-7
-9
-9
-17
Colombia
Panama
Costa Rica Mexico Peru
Venezuela
Ecuador
Brazil
Chile
Argentina
21. Colombia is the leader in terms of Investor Protection in the regionSource: DoingBusiness. WorldBank . 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
5.35.0
2.3
Colombia
Peru
Chile
Mexico
Brazil
Panamá
Argentina
Venezuela
InvestmentProtectionIndex
Doing Business -2014
22. Total commerce has grown almost 5 times in the past 10 yearsUnitedStates
•Exports: US$18,458 million
•Imports: US$ 15,681 millionChina
•Exports: US$ 5,102 million
•Imports: US$9,841 million
Mexico
Exports: US $863 million
Imports: US$ 5,299 millionBrazil
•Exports: US $1,590 million
•Imports: US$ 2,547 millionExportsand Imports. 2000 –2013US$ millions
Source: DANE, 2014 24.915
25.151
24.67127.008
33.475
42.395
50.553
62.888
77.29565.683
80.502
111.628118.758118.219
2000
20012002
2003
20042005
2006
2007
2008
2009
20102011
2012
2013Comercio total (X+M)
23. Colombia shows a remarkable growth of its exports
Variation2010 -2011: 43%
Variation2011 -2012: 5,7%
Variation2012 -2013: -2.2%
Source: DANE .
Takingintoaacounttradtionaland non –traditionalexports.
Exports. 2000 –2013
FOB ValuesUS$ millions
Top export destinations 2013UnitedStates
•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 $2,993 million
•Part. 5.1% 13,15813,12921,190
37,626
56,954
58,822
2000
2001
2002
2003200420052006200720082009201020112012
2013
24. Imports also have increased rapidly
Variación2011 –2012: 7.2% Fuente: DANE11,757
21,204
39,666
32,89154,23359,397200020012002200320042005
2006
2007
2008
2009
2010
2011
2012
2013Top imports by origin 2013Imports2000 –2013CIF Values-US$ millionUnitedStates
•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. Free TradeAgreements
Source: Colombian Ministry of Commerce, Industry and Tourism. 2014.
Canada
UnitedStates
Mexico
GuatemalaHondurasEl SalvadorEcuadorBrazilPeruArgentinaParaguayUruguayLiechtensteinSwitzerland
Island
NorwayEuropeanUnion
Turkey
IsraelJapanPanamaChileBoliviaCosta RicaVenezuela* PacificAllianceSouth KoreaCuba*
Nicaragua*
*These are Partial Scope Agreements (PSA) ---The dotted line refers to member countries of The Pacific Alliance other than Colombia. –Chile, Peru and México.
In forceSigned
In negotiation
26. International Investment Agreements -IIA
Source: Colombian Ministry of Commerce, Industry and Tourism. 2014.
Canada
UnitedStates
MexicoGuatemalaHondurasEl SalvadorPeruSwitzerlandTurkeyJapanChileNote: The International investment agreements (IIA) include Agreement Investment Treaties –BIT (agreement) and Free Trade Agreements –FTA-with investment section (chapter). SpainChinaIndiaUnitedKingdomKuwaitSingapur
Azerbaijan
QatarRussiaFrance
UAEIn force
Signed
In negotiation
27. Double Taxation Agreements -DTASource: Colombian Ministry of Commerce, Industry and Tourism. 2014.
Canada
MexicoPeruSuizaJapónChileCorea del Sur
Spain
India
BélgicaAlemania FranciaRepública Checa Portugal
UnitedStates
BoliviaEcuador Países Bajos In forceSignedIn negotiation
28. Colombia: A gateway to the Pacific AllianceSource: MCIT, 2013
GDP of USD 2,010.3 billion
The members generate 35% of the region´s GDPPopulationof 209 millionAlmostBrazil´sPopulation50% of Latin American commerceTotal trade of US$ 1,116 billion (2012) FTAswith60 countriesAccess to benefits of markets that represent 85.7% of the World GDPMexico
Colombia
PeruChile
29. In 2013 Colombia reached a new record in FDI:
Nearly 10 times of what it received 10 years ago
Source: Balance of Payments -Bancode 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.
Top Investing Countries in Colombia 2000–2014 I Trim
FDI Inflows. 1994 –2014 I TrimUS$ millionUnitedStates
•US$ 25,912 million
•23.1 % England
•US$ 15,894 million
•14.1% Spain
•US$ 8,579 million
•7.6% Chile
•US$ 4,408 million
•4%
2,504
7,821
15,11916,354Prom. 1994 -2002Prom. 2003 -201120122013Var. 8% 1,944
1,959
1,708
1,449
2013(I Trim)
2014(I Trim) Oil and GasOther sectorsVar. -6,6% Investment in non- mining sectors grew 0,8%
30. The stock of Colombia’s outward FDI has grown nearly ten-fold since 1994
Source: Banrep, 2014; WorldInvestment Report, Overview 2013; FDI Markets, Global Greenfield Investement Trends. 2013; CEPAL 2013.
Stock of outwardFDI. 1994 –2014 I Trim
US$ million
FDI outflows by sectors,
1994 –2014 I Trim
UnitedStatesUS$ 7,364 million18.2% EnglandUS$ 5,601 million13.8% PanamaUS$ 6,813 million16.8% PeruUS$ 2,718million6.7% 3,652
40,556
Stock …Stock…
-606
7,65289520122013
2014 -I Trim
Financial services , 30,2%
Industry , 24,0%
Oil & Mining , 19,5%
Electricity, water & gas , 11,5% Transport & Communications , 7,4%
Commerce, Restaurants & Hotels , 4,3%
Others , 3,1%
31. Sectors of opportunity-Tourism
Source: Migración Colombia, MCIT, Banco de la República. Cálculos de Proexport1,053
1,195
1,223
1,354
1,475
1,582
1,6921,83251127
228
285296
313
2543062006
2007
2008
2009
2010
2011
20122013Arrivals (Migración Colombia)Visitors in cruisesUnitedStates
•336,454 visitors
•18.4% EuropeanUnion
•307,212 visitors
•16.8% Venezuela
•261,343 visitors
•14.3% Argentina
•129,069 visiors
•6.4% Main nationalities of foreign visitors in Colombia, 2013Foreign visitors in Colombia2006 –2013, thousands
32. Some examples of high profile Colombian “multilatinas” OneofthelargestfoodcompaniesinColombia,Nutresahaspresencein12countriesinLatam,withmanufacturingplantsin8ofthem. Recently,thecompanysignedanagreementtoacquire100%ofthesharesinTresmontesLucchettiS.A.inChileforUSD758million.
SURABrandiscurrentlywellknownintheinsurance,pensionandinvestmentfundbusinessthroughitsoperationsinMexico,Peru,UruguayandChile.
In2011,thegroupboughtINGassetsinLatinAmericaforUSD$3,614million.
ItisthelargestfinancialconglomerateinColombia.TheGrouphassubsidiariesinElSalvador,Panama,andPuertoRico. In2012,Bancolombiaacquired100%oftheordinarysharesand90.9%ofthepreferredsharesofHSBCBankinPanama.
34. Opportunity Sectors –Oil & Energy Colombiaisoneofthemain20oilproducerscountriesintheworldwithmorethan1dailybarrels. InternationalEnergyAgency,2013ColombiaisthesecondbiofuelproductorinLatinamerica
Accordingto“EnergyArchitecturePerformanceIndex2013”ColombiaisthefirstinLatinAmericaandthesixthworldwide.WEF,2013.
Itisexpectedthatthehydroelectriccapacityreaches18,653MVin2018.
0,53
0,59
0,67
0,79
0,91
0,94 1,00 1,03
1,10
1,24
200720082009201020112012
2Q 2013
E 2013
E 2014
E 2018
Oil production in Colombia
Millions of daily barrels
35. Opportunity sectors–Infraestructure & Logistics Fuente: Agencia Nacional de Infraestructura (ANI), 2013
Concesiones Existentes
Concesiones Nuevas
Colombiahasoneofthemostimportantpublicinitiativesinthecountry.Lookingfortheimprovementandbuildingof8.170kmofroadsestimatedinUS$24,4billions.ANI,2013
Thegovernmentaimsincreasingtheportcapacityin70%throughtheportextension,publicportsbuildingandtheaccesschannelsdredging.
36. Opportunity sectors –Manufactures for the local and foreign markets. Buildingmaterials,carsandparts,clothing,cosmeticsandcleannessproducts,electricmachines,others.
Colombiahasabusinessnetworkofmorethan3,700industrialcompanieswithexportexperienceMorethan400.000graduatesandspecialistsinengineeringrelatedareasbetween2000and2011
8metropolitanareaswithmorethan500thousandcitizensMedellín 2.441,123 hab. Cali2.344,734 hab. Barranquilla 1.212,943 hab.
Bogotá
7.776,845 hab.
Cartagena 990,179 hab. Cúcuta 643,666 hab.
Ibagué
512,631 hab.
Bucaramanga
527,451hab.
38. Labor incentives
New employees with incomes lower than 1.5 Minimum Wages (US$ 476). Length of benefit by employee : 2 years. Newwomenemployeesabove40yearsoldwithmorethan1yearunemployed.Lengthofbenefitbyemployee:2years. Newemployeesundertwentyeight(28)yearsold.Lengthofbenefitbyemployee:2years. Newemployeescertifiedindisplacementsituation,reintegrationordisability. Lengthofbenefitbyemployee:3years. Discount in the income tax and supplementary contributions, and other contributions from payroll. (Do not include positions generated by mergers or replacements)
40. Free TradeZone
PermanentFree TradeZone
SpecialStanding"Uniempresarial" (FTZ)
Guajira
Magdalena
Atlántico
Bolívar
Valle del Cauca
Cauca
Norte de Santander
Santander
BoyacáCundinamarca
Huila
Antioquia
Caldas
Risaralda
QuindíoFTZ requested or approved prior to December 31, 2012.
•15% Income tax. FTZfiledafterDecember31,2012.
•Income tax of 15% + 9% tax CREE.
CaribbeanRegionAndeanRegion
PacificRegion
Free TradeZones: Reducedincometaxand sales allowedtothelocal market
41. Free TradeZones: Reducedincometaxand sales allowedtothelocal 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.
42. A country of regions and differentiated opportunities for investors
CaribbeanRegion
Tourism, Logistics, Petrochemical, Construction Supplies
Atlantic Export Platform.
Central/AndeanRegion
OutsourcingServices,highvalue-addedmanufacturing,hubtocoverdomesticmarket,specializedagribusiness.
PacificRegion
Manufacturing, Agribusiness, logistics, biotechnology, Pacific export platform.
EasternRegion
Agriculture,forestry,biofuels,hydrocarbons
AmazonRegion
Conservation, ecotourism (Leticia)
