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April 2010April 2010
¿Where are we coming from?
AGENDA
¿What are we doing?
¿Where are we going next?
OUTSTANDING PERFORMANCE OF THE OUTSTANDING PERFORMANCE OF THE OUTSTANDING PERFORMANCE OF THE COLOMBIAN ECONOMY
OUTSTANDING PERFORMANCE OF THE COLOMBIAN ECONOMY
3,1%
2,2% 2,5%
4,6% 4,7%
5,7%
6,8%7,5%
2,5% 2,5%3%
4%
5%
6%
7%
8%
COLOMBIA AND WORLD GDP GROWTH (%)2000 – 2010
Source: DANE (National Accounts), DNP, EIU (Market Indicators & Forecasts)
Note: * EIU forecast to the World
Note: Last update March 25rd, 2010
4
2,2%
0,4%
-3%
-2%
-1%
0%
1%
2%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009* 2010*
Colombia World
FDI IN COLOMBIA IS THREE TIMES GREATER THAN SEVEN YEARS AGO
FDI, 2000 – 2010US$ Millones
10.25210.600
7.2018.500
8.000
10.000
12.000
Variation 2008-2009: -32%*Forecast EIU. Source: Banco de la República
2.134
0
2.000
4.000
6.000
8.000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010*
37.626
32.85235.282
25.000
30.000
35.000
40.000
EXPORTS TRIPLED
Exports, 2000 – 2010US$ Millones
66
11.975
0
5.000
10.000
15.000
20.000
25.000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010*
*EIU Forecast
Source: DANE (Departamento Nacional de Estadísticas)
INTERNATIONAL VISITORS IN COLOMBIA DOUBLED
1.451,0
1.700,5
1.200
1.600
2.000
Tourism, 2000 – 2009Thousand Visitors
7
Note: Includes cruise
Source: DAS (Departamento Administrativo de Seguridad)7
661,1
0
400
800
1.200
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
DURING 2009, COLOMBIA WAS ONE OF THE BEST ECONOMIC PERFORMERS IN THE REGION
Exports FDI
-36,0%
-24,1%
-23,7%
-22,0%
-10,0%
Peru
Brazil
Mexico
Chile
Colombia
-21,2%
-20,6%
-20,2%
-16,7%
-12,7%
Mexico
Argentina
Chile
Peru
Colombia
8
Source: Official sources of each country, World Tourism Organization and
LatinFocus
Export: Variations in FOB between 2008 and 2009
FDI: Variation FDI flows between I Half 2008 and I Half 2009
Tourism: Variation number of foreign visitors between 2008 and 2009
*Variation between I Quarter 2008 and I Quarter 2009
**Variation between January-August 2008 and Jan-August 2009
-74,0%
-51,6%
-36,0%
Venezuela
Argentina*
Peru
Tourism
-35,9%
-22,7%
-21,2%
Venezuela
Brazil
Mexico
-17,5%
-13,1%
-11,3%
-6,7%
3,9%
5,8%
10,7%
Venezuela**
Argentina**
Chile
México**
Perú
Brasil
Colombia
VIOLENCE LEVELS ARE DECREASING VIOLENCE LEVELS ARE DECREASING VIOLENCE LEVELS ARE DECREASING SURPRISINGLY
VIOLENCE LEVELS ARE DECREASING SURPRISINGLY
HOMICIDE RATE PER 100 THOUSAND INHABITANTS REDUCED TO A HALF
62,7 65,865
75
Homicides per 100.000 Inhabitants, 2000-2009
Source: Ministry of Defense
10
44,6
33,035,4
15
25
35
45
55
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
107
80
100
120
Homicides per 100,000 Inhabitants2008
BOGOTÁ, SAFER THAN WASHINGTON, ATLANTA and MIAMI
3 4 5 1017 18 18 19 20 21 22
2940
0
20
40
60
80
Source: Bogotá Chamber of Commerce, based on information issued by AméricaEconomía Intelligence and the Bogotá
Metropolitan Police; FBI
THE BEST THING ABOUT COLOMBIA IS ITS HUMAN CAPITAL
THE BEST THING ABOUT COLOMBIA IS ITS HUMAN CAPITALHUMAN CAPITALHUMAN CAPITAL
0,4%0,8%
1,3%1,4%
1,5%2,7%
3,0%
0,0% 0,5% 1,0% 1,5% 2,0% 2,5% 3,0% 3,5%
MexicoPeru
BrazilChile
ArgentinaVenezuelaColombia
Labor Force Growth, 2007-2008(Percentage Variation)
WE HAVE THE FASTEST GROWING LABOR FORCE IN LATIN AMERICA
WE HAVE THE SECOND MOST QUALIFIED LABOR AVAILABLE IN THE WE HAVE THE SECOND MOST QUALIFIED LABOR AVAILABLE IN THE
World Ranking
Country
5 Colombia
8 Venezuela
25 Argentina
27 Chile
29 Brazil
38 Peru
48 Mexico
2,67
3,92
4,58
4,6
5,04
5,49
5,66
0 1 2 3 4 5 6
Venezuela
Peru
Brazil
Mexico
Argentina
Colombia
Chile
Availability of Qualified Labor, 2009
Source: IMD World Competitiveness, 2009. Ranking among 57 countries.
WE HAVE THE SECOND MOST QUALIFIED LABOR AVAILABLE IN THE REGION
World Ranking
Country
29 Chile
32 Colombia
37 Argentina
45 Mexico
46 Brazil
55 Peru
57 VenezuelaRating
4,92
4,99
5,04
5,32
5,81
5,97
7,26
0 1 2 3 4 5 6 7 8
Venezuela
Peru
Mexico
Brazil
Argentina
Colombia
Chile
Qualified Engineers, 2009
ACCORDING TO THE IMD, COLOMBIA HAS THE SECOND BEST ENGINEERS IN LATIN AMERICA
ACCORDING TO THE IMD, COLOMBIA HAS THE SECOND BEST ENGINEERS IN LATIN AMERICA
World Ranking
Country
7 Chile
30 Colombia
32 Argentina
41 Brazil
43 Mexico
44 Peru
48 Venezuela
COLOMBIA IS THE COUNTRY WITH THE BEST QUALITY EDUCATION IN COLOMBIA IS THE COUNTRY WITH THE BEST QUALITY EDUCATION IN
Source: IMD World Competitiveness, 2009. Ranking among 57 countries. World Economic Forum, Executive Opinion Survey 2008, 2009
COLOMBIA IS THE COUNTRY WITH THE BEST QUALITY EDUCATION IN SCIENCE AND MATHEMATICS IN THE REGION
World Ranking
Country
39 Colombia
44 Argentina
48 Venezuela
49 Chile
51 Brazil
53 Mexico
54 Peru2,23
2,58
2,71
2,91
2,95
3,35
3,56
0 1 2 3 4
Peru
Mexico
Brazil
Chile
Venezuela
Argentina
Colombia
High Quality Education in Science and Mathematics in Latin America, 2009
Rating
ACCORDING TO THE IMD, COLOMBIA'S LABOR ACCORDING TO THE IMD, COLOMBIA'S LABOR REGULATIONS HINDER BUSINESS ACTIVITIES IN LATIN
AMERICA THE LEAST
World Ranking
Country
31 Colombia 4,27Colombia
Hindering of Business Activities by Labor Regulations in Latin America, 2009
Source: IMD World Competitiveness, 2009. Ranking among 57 countries.
36 Mexico
42 Chile
45 Brazil
47 Peru
56 Argentina
57 Venezuela1,17
2,81
3,47
3,63
3,8
4
0 1 2 3 4 5
Venezuela
Argentina
Peru
Brazil
Chile
Mexico
Rating
MAJOR ADVANCES IN EDUCATIONMAJOR ADVANCES IN EDUCATIONMAJOR ADVANCES IN EDUCATIONMAJOR ADVANCES IN EDUCATION
COLOMBIA OFFERS A QUALITY BASIC AND SECONDARY EDUCATION AND COLOMBIA OFFERS A QUALITY BASIC AND SECONDARY EDUCATION AND ITS COVERAGE IS ON THE RISEITS COVERAGE IS ON THE RISE
COLOMBIA OFFERS A QUALITY BASIC AND SECONDARY EDUCATION AND COLOMBIA OFFERS A QUALITY BASIC AND SECONDARY EDUCATION AND ITS COVERAGE IS ON THE RISEITS COVERAGE IS ON THE RISE
OVER THE LAST 7 YEARS, THE COVERAGE OF HIGHER EDUCATION HAS RISEN
80%
82%
84%
86%
88%
90%
92%
9.000.000
9.500.000
10.000.000
10.500.000
11.000.000
11.500.000
2002 2003 2004 2005 2006 2007 2008*
Basic and Secondary Education Coverage, 2002-2008
Total Enrollment Coverage Rate
0,0%
10,0%
20,0%
30,0%
40,0%
300.000
600.000
900.000
1.200.000
1.500.000
2002 2003 2004 2005 2006 2007 2008
Higher Education Coverage, 2002-2008
Students Enrolled Coverage Rate
OVER THE LAST 7 YEARS, THE COVERAGE OF HIGHER EDUCATION HAS RISEN 57%, WHILE THE NUMBER OF STUDENTS ENROLLED HAS INCREASED BY 44%
Note: Coverage indicates that the percentage of children that are supposed to be at a certain level are actually at that level. Basic and secondary education are primary and
high school, while higher education is the university level.
* Data forecasted based on the enrollment report to June 30, 2008. Preliminary data subject to modification
Source: Ministry of Education
8,1 17,9
15,4 9,7 13,2 200
250
Graduates Per Level of Education, 2002-2008(in Thousands)
THE NUMBER OF GRADUATES FROM POST-GRADUATE PROGRAMS ROSE 72%, VOCATIONAL TECHNOLOGY
PROGRAMS ROSE 44% AND UNDERGRADUATE PROGRAMS ROSE 9%
THE NUMBER OF GRADUATES FROM POST-GRADUATE PROGRAMS ROSE 72%, VOCATIONAL TECHNOLOGY
PROGRAMS ROSE 44% AND UNDERGRADUATE PROGRAMS ROSE 9%
60,5 78,9 66,9 85,5 122,1 122,5 104,1
77,3
101,6 92,5
89,1
84,9 94,4 84,3 9,2
8,1 8,4
17,9
0
50
100
150
2.002 2.003 2.004 2.005 2.006 2.007 2.008
VO-TECH UNDERGRADUATE POTS-GRADUATE
Source: Ministry of Education
OUR CONNECTING FLIGHTS ARE CONSTANTLY OUR CONNECTING FLIGHTS ARE CONSTANTLY OUR CONNECTING FLIGHTS ARE CONSTANTLY ON THE RISE
OUR CONNECTING FLIGHTS ARE CONSTANTLY ON THE RISE
United United KingdomKingdomPortugalPortugal
SpainSpainFranceFrance
BelgiumBelgiumHollandHolland
SwitzerlandSwitzerlandLuxemburgLuxemburgGermanyGermany
ItalyItalyCubaCubaDominican RepublicDominican Republic
ChinaChina
IMPROVING CONNECTIVITY: MORE AIR TRAVEL IMPROVING CONNECTIVITY: MORE AIR TRAVEL AGREEMENTSAGREEMENTS
VenezuelaVenezuelaSurinamSurinamEcuadorEcuador
PeruPeruBoliviaBoliviaBrazilBrazilChileChile
ArgentinaArgentinaUruguayUruguay
Arab EmiratesArab EmiratesSingaporeSingapore
South KoreaSouth Korea
United StatesUnited StatesMexicoMexico
Costa RicaCosta RicaPanamaPanama
Dominican RepublicDominican RepublicDutch AntillesDutch AntillesFrench AntillesFrench Antilles
ArubaAruba
Signed Agreements and Memorandums of Understanding (31)
Agreement under Negotiation (1)
Source: Ministry of Commerce, Industry and Tourism
Since the year 2000, international flights to Colombia have increased by 120%, totaling 5600
flights per month on average in 2008.
A COUNTRY THAT PROTECTS THE ENVIRONMENT
A COUNTRY THAT PROTECTS THE ENVIRONMENT ENVIRONMENT ENVIRONMENT
COLOMBIA HAS THE ENVIRONMENTAL LAWS THAT LEAST AFFECT COLOMBIA HAS THE ENVIRONMENTAL LAWS THAT LEAST AFFECT
COLOMBIA IS THE NINTH COUNTRY IN THE WORLD AND THE FIRST IN THE REGION IN PROTECTING THE ENVIRONMENT
COLOMBIA IS THE NINTH COUNTRY IN THE WORLD AND THE FIRST IN THE REGION IN PROTECTING THE ENVIRONMENT
World Ranking
Country
9 Colombia
29 Chile
35 Brazil
38 Argentina
45 Venezuela
47 Mexico
60 Peru
78,1
79,8
80
81,8
82,7
83,4
88,3
0 20 40 60 80 100
PeruMexico
VenezuelaArgentina
BrazilChile
Colombia
Environmental Performance Index, 2008
Rating
Source: Environmental Performance Index 2008, Yale University. IMD World Competitiveness, 2009, Ranking among 57 countries
COLOMBIA HAS THE ENVIRONMENTAL LAWS THAT LEAST AFFECT COLOMBIA HAS THE ENVIRONMENTAL LAWS THAT LEAST AFFECT COMPANY COMPETITIVENESSCOMPANY COMPETITIVENESS
World Ranking
Country
31 Colombia
34 Mexico
42 Peru
43 Venezuela
50 Argentina
53 Chile
54 Brazil
4,78
4,86 5,15
5,50 5,63
5,77 5,87
00 11 22 33 44 55 66
Brazil
ChileArgentina
VenezuelaPeru
MexicoColombia
Hindering of Business Activities by Environmental Laws
Rating
COLOMBIA'S ENTREPRENEURS STRIVE TOWARD SUSTAINABLE COLOMBIA'S ENTREPRENEURS STRIVE TOWARD SUSTAINABLE
OUR COUNTRY HAS THE SECOND LOWEST CO2 EMISSIONSOUR COUNTRY HAS THE SECOND LOWEST CO2 EMISSIONS
416,3416,3
332,4332,4
149,2149,2
148,7148,7
59,859,8
59,459,4
27,927,9
00 100100 200200 300300 400400 500500
Mexico
Brazil
Venezuela
Argentina
Chile
Colombia
Peru
Carbon Dioxide Emissions(Metric Tons)
World Ranking
Country
7 Peru
21 Colombia
22 Chile
31 Argentina
32 Venezuela
42 Brazil
47 Mexico
COLOMBIA'S ENTREPRENEURS STRIVE TOWARD SUSTAINABLE DEVELOPMENT
COLOMBIA'S ENTREPRENEURS STRIVE TOWARD SUSTAINABLE DEVELOPMENT
World Ranking
Country
23 Colombia
27 Chile
32 Brazil
46 Peru
47 Mexico
51 Venezuela
57 Argentina
Source: IMD World Competitiveness, 2009. Ranking among 57 countries.
Rating
¿Where are we coming from?
¿What are we doing?¿What are we doing?
¿Where are we going next?
FROM PREFERENTIAL ACCESS TO 233 MILLION CONSUMERS IN 2002 TO ACCESS TO 1.46 BILLION
CONSUMERS IN 20102002
2010
25
ACN
IN 2010, COLOMBIA WILL BE NEGOTIATING 19 INTERNATIONAL INVESTMENT AGREEMENTS (IIA) WITH 39 COUNTRIES AND 21 DOUBLE TAXATION AGREEMENTS (DTA) WITH 22 COUNTRIES
2010
IIA (13 Countries)In Force: Peru (2003), Spain (2007), Switzerland (2009).
Signed: Peru (deepening), China (2008), India (2009), China, Belgium
and Luxembourg (2009) and U.K. (2009).
In Negotiation: Germany, France, South Korea (not sign
yet), Kuwait, Japan.
DTA (16 Countries)In Force: Spain (2008), Peru-Ecuador-Bolivia (2004) and Chile (2009).
Signed: Switzerland (2007), Canada (2008) and Mexico (2009).
In Negotiation: Germany, Netherlands, India, USA, Belgium, Czech
Republic, Korea, Japan, France and Venezuela
COLOMBIA, AN OPEN COUNTRY TO THE WORLD
2010
Note: Highlighted countries are those in which Colombia has already an agreement in force, signed, under negotiation, or planned for the
near future, concerning Free Trade, double taxation and Investment.
-84
942
Mexico
Panama
Peru
Colombia
World World RankingRanking
CountryCountry(2010)(2010)
37 Colombia
4949 ChileChile
5151 MexicoMexico
COLOMBIA: THE MOST “BUSINESS FRIENDLY” COLOMBIA: THE MOST “BUSINESS FRIENDLY” COUNTRY IN LATIN AMERICA, ACCORDING TO THE
WORLD BANK (2010)
Doing Business Ranking Variation, 2007-2010*(Change in positions)
Source: Top Reformers Report, World Bank
*Positive figures show improvements in business environment
-50-21
-17-16-15-13-12
-8-8
-60 -40 -20 0 20 40 60
Uruguay
Chile
Argentina
Costa Rica
Ecuador
Venezuela
Paraguay
Brazil
Mexico5656 PeruPeru
7777 PanamaPanama
114114 UruguayUruguay
118118 ArgentinaArgentina
121121 Costa RicaCosta Rica
124124 ParaguayParaguay
129129 BrazilBrazil
138138 EcuadorEcuador
177177 VenezuelaVenezuela
ACCORDING TO THE WORLD BANK ON “DOING ACCORDING TO THE WORLD BANK ON “DOING BUSINESS, 2010" COLOMBIA IS THE FIRST COUNTRY BUSINESS, 2010" COLOMBIA IS THE FIRST COUNTRY IN LATIN AMERICA THAT BEST PROTECTS INVESTORSIN LATIN AMERICA THAT BEST PROTECTS INVESTORS
6,0
6,7
8,3
Mexico
Peru
Colombia World Ranking
Country(2010)
5 Colombia
20 Peru
Strength of Investor Protection, 2010
Ranking made up by 183 countries
Source: Doing Business, 2010 (World Banck)
2,3
4,7
4,7
5,3
6,0
6,0
0 2 4 6 8 10
Venezuela
Argentina
Panama
Brazil
Chile
Mexico 20 Peru
41 Chile
41 Mexico
73 Brazil
109 Argentina
109 Panama
178 Venezuela
Rating
�15% income tax.
�No import duties.
�Benefit from international trade agreements.
�
THE MOST COMPETITIVE FTZ’S IN LATIN AMERICA: 15% INCOME TAX AND ALLOWS SALES TO THE LOCAL MARKET
�Can also sell in domestic market.
Free Trade Zones Single-Company (SCFTZ)
New regime in southern Colombia
Permanent (PFTZ)
76 FREE TRADE ZONES
Free Trade Zone Approved
Investment commitments
Total Investment (USD Million)
5.880
Direct Jobs 44.475
Indirects Jobs 93.016
Single - Company Free Trade ZonePermanent Free Trade Zone
Indirects Jobs 93.016
31
Source: Ministry of Trade, Industry and Tourism. The investment amounts required to obtain the Free Trade Zone status are calculated
in Minimum Monthly Legal Wages (M.M.L.W). This information is presented in dollars using a US$1 = COP 2,000 exchange rate. For
2010, the M.M.L.W is COP 515.000. The M.M.L.W, as well as the exchange rate are subject to variations.
Investment executed so far
Total Investment (USD Million)
1.985
Direct Jobs 5.017
Indirects Jobs 21.354
Requirements for industrial firms of goods and services
Total Assets(US$)
Investment Ammount
(US$ Million)Minimum direct jobs generation
0 – 129,000 0 0
PERMANENT FREE TRADE ZONES (PFTZ)Several firms installed in a FTZ already established
0 – 129,000 0 0
129,008 – 1.28 Million 0 20
1.28 – 7.72 Million 1.28 30
More than 7.72 Million 2.96 50
Back
Source: Ministry of Trade, Industry and Tourism. The investment amounts required to obtain the Free Trade Zone status arecalculated in Minimum Monthly Legal Wages (M.M.L.W). This information is presented in dollars using a US$1 = COP 2,000exchange rate. For 2009, the M.M.L.W is COP 515.000. The M.M.L.W, as well as the exchange rate are subject to variations.
FTZ typeInvestment (US$
Million)AND direct jobs
Goods (1) 38.62 150
Services (2)
2.57 – 11.84 500
11.84 – 23.69 350
SINGLE-COMPANY FREE TRADE ZONES (SCFTZ)A single firm can get all FTZ advantages by installing itself in
any place in Colombia
(1) Each additional investment of US$ 5.9 million reduces 15 jobs of requirement. In any case, there must be generated at least 50 jobs.
(2) For health services companies, 50% of jobs may be vinculated, not direct.(3) 50 indirect jobs can replace 20 direct jobs.
Services (2) 11.84 – 23.69 350
23.69 or more 150
Services – Ports (3) 38.62 20
Exchange rate: US$ 1 = COP 2,000. Minimum Monthly Legal Wages (M.M.L.W.) for 2010 is COP 515,000. M.M.L.W. and Exchange Rate are subject to changes.
Back
SCFTZ SCFTZ AgribusinessAgribusiness
FTZ typeInvestment (US$
Million)Or related jobs to the production
Agribusiness 19,31 500
Subsectors which are eligible for FTZ status under agribusiness requirements
SINGLE-COMPANY FREE TRADE ZONES (SCFTZ)A single firm can get all FTZ advantages by installing
itself in any place in Colombia
Subsectors which are eligible for FTZ status under agribusiness requirements
Biofuels
Meat and Fish
Oil and grease products from vegetables and animals
Dairy products
Legume and fruits, prepared or preserved, tea, soup, vinegar, sauces and yeast*
Coffee
* According to the national statistics this products classification is called “products not classified previously”.
Exchange rate: US$ 1 = COP 2,000. Minimum Monthly Legal Wages (M.M.L.W.) for 2009 is COP 515,000.
M.M.L.W. and Exchange Rate are subject to changes.
Back
Characteristics•Huila, Caquetá, Putumayo, Nariño and
Cauca
•No distinction between types of SCFTZs
•Benefits are valid until April 30, 2010
NEW SCFTZ REGIME IN FIVE PROVINCES OF SOUTHERN COLOMBIA
•Benefits are valid until April 30, 2010
•Time limit to execution of 100% of
investment is 2 years.
Requirements
Investment And Direct Jobs
US$ 1.2 Million
50Back
Investments over US$1.84 million* (150.000 T.U)**
Investor pays 1% premium based on the amount of theinvestment. 0.5% in unproductive periods.
Conditions
COLOMBIA OFFERS LEGAL STABILITY CONTRACTS TO GUARANTEE INVESTMENT PROJECTS
Period Up to 20 years maximum.
Signed contracts
62 legal stability contracts approved, 48 legal stabilitycontracts signed
36
*The investment requirement is calculated with an exchange rate of COP $ 2000 = 1 USD. It is responsibility of the investor to calculate the investment requirement at the moment of submitting the application for the Legal Stability Agreement.** One Tax Unit equivalent COP$ 24.555 or US$ 12,2
• Exemption for 30 years for companies that build or restyle hotels before 2018.TourismTourism
• Exemption for 20 years starting from 2003.EcoEco--tourismtourism• Exemption for 10 years after the start of production in crops
planted between 2003 and 2013.Late yield cropsLate yield crops
• Permanent exemption for investment in new forest ForestryForestry
OTHER INCENTIVES BY SECTOR: INCOME TAX EXEMPTION FOR UP TO 20 YEARS
• Permanent exemption for investment in new forest plantations, sawmilling and timber plantations.ForestryForestry
• Publishing of books, magazines, booklets or collections of scientific or cultural characteristics are exempt until 2013.EditorialEditorial
• Exemption for 10 years for products manufactured in Colombia with high scientific and technological research content, starting from 2003.c
New medicinal New medicinal products and softwareproducts and software
• Exemption for 15 years for sale (by the generators) of electricity based on wind resources, biomass or agricultural waste.
Renewable energyRenewable energy
• Exemption for 15 years starting from 2003 to provide services in slabs and boats with net weight below 25 tons.
River transportRiver transport
¿Where are we coming from?
¿What are we doing?¿What are we doing?
¿Where are we going next?
Encourage and improve production of competitive products & services
ESTABLISHED SECTORES
Promote development of NEW & EMERGING
SECTORS
POTENTIAL WORLD CLASS SECTORSPOTENTIAL WORLD CLASS SECTORSPRODUCTIVE TRANSFORMATION PROGRAM
"GOVERNMENT - PRIVATE SECTOR"
39
BPO&O
•• Call center agent cost: USD 441/monthCall center agent cost: USD 441/monthCompetitive Competitive
Operational CostOperational Cost
•• 27,000 biz grads and 13,000 engineers per year.27,000 biz grads and 13,000 engineers per year.
•• Seven cities > 500,000 inhabitants.Seven cities > 500,000 inhabitants.
•• Neutral Spanish accentNeutral Spanish accent
Human ResourceHuman Resource
•• USD 1 billion market, growing 42% in the last USD 1 billion market, growing 42% in the last three years.three years.
High growing marketHigh growing market
•• Reliable & redundant internet infrastructure: 5 Reliable & redundant internet infrastructure: 5 submarine cables 212.5 submarine cables 212.5 GbpsGbps capacity.capacity.
InfrastructureInfrastructure
•• Free Trade Zone regime: 50% off Income Tax Free Trade Zone regime: 50% off Income Tax and sales to the local market.and sales to the local market.
Business EnvironmentBusiness Environment
Back
IT SERVICE & SOFTWARESOFTWARE
• The lowest labor cost in LATAM: up to 284% for System Engineering careers.
Competitive Competitive Operational CostOperational Cost
• 13,000 engineering and technical graduates from IT-related fields per year.
Human ResourceHuman Resource
• A growing market of US$ 270 billion: almost 12,5% in 3 years.
• Datamonitor considers Colombia to be a Tier 2 High growing marketHigh growing market
• Datamonitor considers Colombia to be a Tier 2
country in L.A.
High growing marketHigh growing market
• US$ 4 billion expected investment in telecommunications for 2010.
• Computer prices under US$1,000 without VATInfrastructureInfrastructure
• National Government programs to enhance competitiveness and development in this specific industry.
Business EnvironmentBusiness Environment
Back
HEALTH TOURISMHEALTH TOURISM
•Eye laser surgery Innovation
•Pioneer Program in reproduction immunology
•1st pacemaker of the worldInnovation
•First Latin American country to do business, according to Doing Business 2010 ranking - World Bank
•4 consecutive years as one of the top 10 reformers in the world
Business Environment
•Health system is the best in Latin America and number 22 in the world.world.
•Colombia spent 7.5% of GDP on health and 13.9% of public spending
•More than 600 weekly flights to Colombia connecting North, Central and South America and Europe
Infrastructure
•3,000 general doctors undergraduate per year Human Resources
•Hospital San Vicente de Paul (Antioquia) 1 Free Trade Zone – status granted
•Clinica Portoazul (Barranquilla) -1 free trade zone approved ( pending status recognition)
•Clinica Los Nogales (Bogota) , Promotora de la Laguna (Antioquia), Sociedad Medica de Sabaneta (Antioquia) - 3 clinics (in process to be recognized as a free trade zone)
Free Trade Zone
Back
COSMETICS AND PERSONAL CARE PRODUCTSPRODUCTS
• In the last 6 years exports has tripled, arriving to US$735 million and a positive trade balance of US$ 300 million
• Trade Agreements with 44 countries reaching to cover 1.2 million consumers.
Export Platform
• More than 200.000 professionals and 30.000 technicians available to work in the sector
Human Resources
• The second largest country in number of species of plantsWorld Leader in Biodiversity
• 2008 Production: USD 2,361 M; CAGR 4.4% in the last 6 years.
• The masculine market is expected to grow 20% per year.
Fourth Market in Latin America
• The highest female participation in the workforce in Latam (44.6%)
• Colombian women cosmetics pocket share duplicates the European women (as proportion of their income).
Female Labor Participation
consumers.
47
Back
BIO-FUELSBIO-FUELS
•Single enterprise Fee Trade Zone.• Income tax exemption on late yield crops during ten
yearsTax Incentives
• 16,5M ha (6.1 M acres) suitable for biofuelproduction.
Land Availability
• World’s fifth palm oil producer. (3,6 MT.)
• Highest sugar productivity in the world. (12,78T/crop year)
Raw Materials Availability
• Highest sugar productivity in the world. (12,78T/crop year)
Availability
• E20 B20 by 2020.
• Ethanol local consumption (490M liters), supplied only in a 66% by local production
• Biodiesel local consumption (55M liters) supplied in 20%
Internal Demand
• 34M Ha (85 M acres) available for agricultural and livestock development. No need to cut down rain forest
• Green seal” production (environmental and social practices).
Environment & Food vs. Fuel
49
Back
FORESTRYFORESTRY
•17 M ha (42 M acres) suitable for timberlandLand Availability
• More than 10 forestry species with high value addedDiversity
• Photosynthesis throughout the year• Higher yield species• Shorter life cycles
Production advantage • Shorter life cycles
• Weather advantagesadvantage
• High quality forestry germplasm base with plant material production capacity of 52,000 ha (131,000 acres) per year
Tax Incentives
• High quality forestry germplasm base with plant material production capacity of 52,000 ha (131,000 acres) per year
Biotechnology and genetic
development
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AUTOMOTIVE
• Colombian exports of auto parts increased by 46% in (06-08)Dynamic Industry
• Access to a Motor Vehicle Fleet of over 37 million units (FTAs)Excellent geo-
economic position
• Annually purchase over U$600 million in auto parts to localproducers
Qualified and competitive cost
for human producers• The production of vehicles increased by 46%.(02-08)
for human resources
• Automotive industry workers salary cost : 1.73 US$ /hour (2007)Recurso Humano
• Deposits enabled for transformation or assembly assure free custom duties for auto parts and material
• Well-known auto parts companies are established in Colombia (12)
Advantages
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Electric Power
• Best energy infrastructure in Latam. (IMD)• Third country in future energy supply in Latam.
(IMD)
Energy Infrastructure
• All entities in one system. (SIM)Structure of
Energy Sector
• 2nd country with best access to water in Latam
• 742,725 watersheds
• 52,075 m3 /seg per yearHydro-energy • 52,075 m /seg per year
• Annual rainfall of 3,000 mm
• Precipitation of 1,313 km3
• Average yield of 58 lt/seg/ km2
Hydro-energy potential
• More than 300 hot springsGeothermal
potential
• Daily Average of 4.5 Kwh/m2.
• Six Colombian states are above 1,200 Kwh/m2/year and 3 above 1,600 kwh/m2/year.
Solar-energy potential
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TEXTILES, APPAREL, FASHION AND DESIGNAND DESIGN
• Colombia has the infrastructure to produce and export.• fibers, yarns, wovens and apparels .• There are more than 800,000 direct and indirect jobs .
Infrastructure
• Over 100 years of experience• Coltejer founded in 1907 • Tejicondor and Fabricato (founded in 1920)
Experience in textile market
• Imports of raw products reached 81% of the total textile and apparel products in 2008Imports
• Textiles exports´ share is 2.8% of the total exports and 12% of non traditional exports.
Textile exports
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INFRASTRUCTURE
• Projects to the construction, operation and maintenance of main access roads of the country:
• “Autopista de las Américas” Road Concession: 800 km of existing roads
• “Autopistas de la Montana” Road Concession: Total length 1000km
Carreteras
PUBLIC INFRASTRUCTURE PROJECTS ACCOUNT FOR US$ 21 BILLION
• New ports development: Aguadulce (USD 103 M) and Contecar (USD 297 Million)
• Integration and Concession of Northeast Airports (USD 107 Million)
Puertos y Aeropuertos
• "Central Railway System“ Railway Concession: 1.045 km, estimated investment of USD 895 million
Ferrocarriles
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GRAPHIC COMMUNICATION INDUSTRY
• Global production process consisting of pulpproduction (U.S. $ 29,300 million), production ofpaper and board (U.S. $ 87,000million), design, printing and other graphic services(U.S. $ 582,000 million) and Marketing (NA)
Sector
• Composed by Packaging and Labels (U.S. $ 238million), advertising and commercial ($ 419million), Editorial (U.S. $ 230 million), andnewspapers and periodicals (ND).
• Average annual income of $ 40 million in large Industry in Colombia
• Average annual income of $ 40 million in large players segment.
• Annual growth above 11%, quite remarkable when compared with global industry growth (2.7%)
• Exports grew 10% from 2006 to 2008.
• Leading exporter of books in Latin America.
• Second largest exporter in Latin America after Mexico
• Only country in Latin America with a significant positive trade balance
International Trade
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CONCLUDING REMARKSCONCLUDING REMARKS
In the last few years, Colombia has experienced a marked improvement in its macroeconomic
performance, internal security and stability for performance, internal security and stability for businesses. As a result social indicators have improved
dramatically.
CONCLUDING REMARKSCONCLUDING REMARKS
Colombia has achieved a solid structural growth, based on an increase in the investment rate and higher productivity increase in the investment rate and higher productivity
levels
CONCLUDING REMARKS
The country has guaranteed its external funding for 2009 trough multilateral institutions such as IADB, WB and CAF.trough multilateral institutions such as IADB, WB and CAF.
CONCLUDING REMARKS
Colombia is aggressively negotiating trade and investment agreements expanding its markets and becoming more agreements expanding its markets and becoming more
attractive to investors.
CONCLUDING REMARKS
The Colombian Government is committed to generating the most favorable conditions for domestic and foreign most favorable conditions for domestic and foreign
investment instruments such as the free-trade zones regime and legal stability contracts.
www.inviertaencolombia.com.co · www.colombiaespasion.com · www.mincomercio.gov.co
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