Presentacion invierta en colombia abril 2010

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


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


Rating


¿What are we doing?¿What are we doing?


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


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


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


¿What are we doing?¿What are we doing?


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

•• 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

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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

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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

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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

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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

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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

51

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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

Presentacion invierta en colombia abril 2010

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Transcript of Presentacion invierta en colombia abril 2010