Colombia embassy presentation_250412

COLOMBIA

Ambassador of Colombia to The Netherlands

Eduardo Pizarro Leongómez

Invest in Colombia: Balance, perspectives and opportunities.

Embassy of Colombia to The Netherlands - 2012

Colombia

With coastlines on both the Pacific and

Atlantic oceans, Colombia is an

important platform for the

region


1,100 direct international frecuencies per week

5,000 domestic frequencies/week

Avianca-Taca: one of 3 major airlines in Latinamerica

Easy-quick access to major cities in the Americas

A competitive location with easy access to cover the Americas (aprox. 5 hours to NY, Toronto, Santiago and Sao Paulo)

CIVETS, an opportunity for diversification


The three top risk rating agencies granted Colombia “investment grade” on its sovereign debt in 2011

May 31, 2011

The three agencies agree on the country's positive economic and financial situation, highlighting:

Its ability to deal with external shocks Its historic fulfillment of obligations An increase in its macroeconomic

credibility A visible improvement in security

conditions

Unemployment Rate


GDP Per Capita adjusted by PPP is close to US $10,000

• GDP Per Capita adjusted to prices at purchasing power parity (PPP)• (f) : ForecastSource: EIU (Economist Intelligence Unit)(October 12, 2011)

+126%

-20-15-14-12-10

-6911

2645

Costa RicaChile

ArgentinaBrazil

VenezuelaEcuador

MéxicoPanamá

PerúColombia Country

World Ranking

2012

World Rankin

g 2011

Chile 39 41Peru 41 39Colombia 42 47Mexico 53 54Panama 61 63Argentina 113 114Costa Rica 121 121

Brazil 126 120Ecuador 130 131Venezuela 177 175

The third "friendliest" country to do business in Latin America and the top reformer in the region

Change in Doing Business Ranking, 2007-2012*

(Variation in the number of positions)

Source: Doing Business 2012 World Bank Report*Positive numbers indicate improvements in business environment

Ranking in Latin America


In terms of globalization, Colombia is ranked 3rd among Latin America countries, comparing to world economies such as Japan, Brazil, Russia and Indonesia

The Government is boosting 12 sectors through its Productive Transformation Program

MANUFACTURING SERVICES AGRO-INDUSTRIES

Business process

outsourcing BPO&O

Software & IT

Cosmetics & Personal Care

Health Tourism

Graphic Arts Industry

Textile, Apparel, Fashion & Design

Electric Energy and related Goods and Services

Auto Parts & Vehicles

Chocolate, Confectionary,

and its raw materials

Beef

Palm, vegetable oils & fats

Shrimp Farming

15% income tax rate.

No import duties.

VAT exemption for goods sold from

Colombia to FTZ

Benefit from international trade

agreements. (Except Peru)

Allow sales to the local market.

Free Trade Zones

Single-Company (SCFTZ)

Permanent (PFTZ)

The most competitive FTZ’s in Latin America: 15% income tax and sales allowed to the local market

Single - Company Free Trade ZonePermanent Free Trade Zone

99 Free Trade Zones Approved

• Exemption for 30 years for those who invest in the construction or renovation of hotels between January 1st, 2003 and December 31, 2017.Tourism

• Exemption for 20 years starting from 2003.Eco-tourism

• Exemption for 10 years after the start of production in crops planted between 2003 and 2014.Late yield crops

• Permanent exemption for investment in new forest plantations, sawmilling and timber plantations.Forestry

• Publishing of books, magazines, booklets or collections of scientific or cultural characteristics are exempt until 2013.Editorial

• Exemption for 10 years for products manufactured in Colombia with high scientific and technological research content, starting from 2003.

New medicinal products and software

• Exemption for 15 years for sale (by the generators) of electricity based on wind resources, biomass or agricultural waste.Renewable energy

• Exemption for 15 years starting from 2003 to provide services in slabs and boats with net weight below 25 tons.River transport

• 175% income tax deduction over investments in scientific and technological developments.Research and Technological Development

Other incentives by sector: Income tax exemption for up to 20 years

In ForceSignedIn Negotiation

Future

IN FORCE

• CAN (Peru, Ecuador y Bolivia)

• MERCOSUR (Argentina, Paraguay, Uruguay and Brazil)

• Chile• G2-Mexico• North Triangle (Honduras,

Guatemala y El Salvador)• Switzerland • Liechtenstein • Canada

SIGNED

• United States• EFTA (Iceland and Norway)

IN NEGOTIATION

• South Korea• Panama• Turkey• European Union (Signature)• Israel

FUTURE

• Japan• Australia• New Zealand• Costa Rica• Dominican Republic• Gulf Community

Positioning Colombia as an export platform: 11 free trade agreements (FTA) ,allowing preferential access to over 1,500 million consumers

21 double taxation agreements (ADT) with 22 countries : Bilateral Investment Treaties(BITS):3 in force (Peru, Switzerland andSpain)5 signed (UK, South Korea, India,Belgium, China)3 in negotiations (Kuwait, Japan and the UAE)

United States• US $16.879 B• 42.5% share

China• US $1.967 B• 4.9% share

Holland• US $1.617 B• 4.1% share

Ecuador• US $1.825 B• 4.5% share

In 10 years, exports tripled

Variation 2008 - 2009: -12.7%Variation 2009 - 2010: 21.2% Variation Jan Nov 2010 - Jan Nov 2011: 42.3% Source: DANE (National Department of Statistics)

Top destinations of exports, 2010

Exports to the EU


Total exports to the EU: 2009: 4.698.726 2010: 4.976.327

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Colombian Exports to The Netherlands - Nov 2010 – Nov 2011

Sector FOB US$

2010 FOB US$

2011

DIFFERENCE VARIATION

$US 2011/2010

Agrobusiness 74,482,621

162,304,127

87,821,506 118%

Manufacturing and derivatives

37,786,640

28,097,177

-9,689,463 -26%

Clothing 2,878,880

9,773,677

6,894,798 239%

Services 76,737

65,256

-11,481 -15%

Traditional 1,375,171,730

2,107,194,557

732,022,827 53%

TOTAL 1,490,396,608

2,307,434,794

817,038,186 55%

Imports from EU


Total imports from the EU: 2009: 5.103.266 2010: 5.608.210

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Bilateral Trade Colombia-The Netherlands


FDI, 2000-2010US$ Millions


FDI in Colombia by sectors 2009- 2010


Foreign Direct InvestmentNetherlands - Colombia

Between 2000 & III trimester of 2011, Netherlands invested in Colombia US$

371,6 million. Nowadays, is the 15th country investing in Colombia and the 5th

within European nations.

2011 was the most important year of Dutch investment in Colombia, due to

investments in “Commerce”.

Since 2008, about 92% of Dutch FDI flows in Colombia have been directed to

“Commerce”, “Industry” and “Finance”

Source: Banco de la República (Colombian National Bank)

The Netherlands FDI outflow to Colombia

USD 6.25 million opening its 11th store in Villavicencio Colombia

USD 84 million acquisition of MASA, oil and gas services provider

EUR 75 million over the next 3 years to build a new, state-of-the-art laundry detergents factory at Palmira, Valle

http://images.google.co.uk/imgres?imgurl=http://www.3ma.nl/careers/viewphoto/6&imgrefurl=http://www.3ma.nl/Careers/viewbycategory/4&usg=__pbggZQc4kfVdwlXYqq2r2wdQTPA=&h=299&w=1204&sz=15&hl=en&start=2&um=1&tbnid=w0ktS_G2BegbXM:&tbnh=37&tbnw=150&prev=/images?q=ing&hl=en&sa=N&um=1

http://www.vopak.com/index.php

Roadways for competitiveness “Ruta del Sol”

“Transversal de las Américas”

“Autopistas de la Montaña”

Roadway “Buenaventura – Bogotá - Cúcuta”

AirportsAirports granted in concession

Northeast Airports

“Eje Cafetero” Airports

Ports

RailwaysCentral Railway System

Atlantic Railway

“Altiplano” Train

“Carare” Train

Pacific Railway

Ports

Infrastructure Project Portfoliofor competitiveness

Map Source: INCO

Colombia is also increasing its investment flows abroad (utilities, banking and financial services)

Assembly of the first 500,000-volt electric transmission system in Peru. Investment: US $130 Million

Purchased 60% of Peruvian energy company Cálidda. Investment: US$ 111 Million

Acquisition of one hundred percent of the Central American BankInvestment: US$ 1.9 Billion

Purchased ING companies in Chile, Mexico, Peru, Uruguay and ColombiaInvestment: US$ 3.763 Billion

Source: Banrep

US $Million

Colombia one of the best places to go 2011


TourismArrival of international

tourists*January-September 2010 y 2011

Enero-septiembre 2010 Enero-septiembre 20111,000,000

1,020,000

1,040,000

1,060,000

1,080,000

1,100,000

1,120,000

1,140,000

1,160,000

1,180,000

1,200,000

1,077,232

1,185,665

+ 10%

The number of passengers on cruise ships entered the country between January and September 2011

was 247,579, a growth of 4.3% over the same period in 2010.

*DASSource: DAS; Ministry of Trade, Industry and Tourism; Ports of Cartagena, Santa Marta, and San Andrés.

Dutch tourism in Colombia

Dutch travelers arriving to Colombia increased 14,7% on 2011. Nowadays, Netherlands ranks 16rh among all nationalities arriving to Colombia.

Bogota is the most popular destination for Dutch travelers in Colombia, although Medellin, Cartagena and Cali are also highly demanded.

Colombia is the second most visited South American country by Dutch travelers.

Leisure is the main objective for Dutch travelers in Colombia. Even though “Heath Services” and ranks second.

Source: DAS


Proexport Colombia:www.proexport.com.co

Ministry of Foreing Affairs:www.cancilleria.gov.co

Ministry of Commerce:www.mincomercio.gov.co

http://www.investincolombia.com.co

Complete information available on:

http://www.proexport.com.co/

http://www.cancilleria.gov.co/

http://www.mincomercio.gov.co/

http://www.inviertaencolombia.com.co/