GUIDE

¿WHY INVEST IN COLOMBIA?

INTRODUCTION

The Colombian economy has been great progress over the years, always in search of new markets for national competitiveness and generating more quality products, and likewise encourage a climate of confidence for foreign investors to the economy country.  Colombia continues to post good results in terms of growth. In recent years the performance of the Colombian economy shows an increasing trend and stable.

Given that FDI is the intervention of any country outside capital for business creation, agricultural, industrial and services with the ultimate goal of global.

Colombia is feasible for this investment, deepening performing evolution that has taken Colombia as a country and the results it brings. It has become one of the best options available to foreign direct investment, demonstrating that they are able to develop new forms of economic production and business, combining their progress criteria, hence the fact that the main feature is the human quality, considering that most of these are small and medium enterprises undergoing transformation, creation and development order thereby to become a target for foreign investors.

government involvement, the advantages and modifications that need to alternate powers are encouraged to choose the country as a means of communication to create working links with consequences and economic performance, the human quality, location as to whether service is a product by which a consumer wants to reach and effectiveness claimed that as a nation we have an agreement that benefits monetarily socioeconomic both sides of the agreement

OVERVIEW OF COLOMBIA

Colombia is a country of Hispanic America, located in the northwestern part of South America, organized as a unitary republic constitutionally decentralized.

Colombia is composed of 32 departments and one capital district, Bogotá.

Geographically limited to the east by Venezuela and Brazil, to the south by Ecuador and Peru and Panama to the northwest, Colombia is the only South American country with coastlines on the Pacific Ocean and the Caribbean Sea, which has several islands as the archipelago of San Andres and Providencia.

This wonderful country has a climate ranging from extreme cold in the snow, to warmer sea level, so you can enjoy a variety of tourist sites that allow cultural and adventure activities.

The Colombian wildlife make this destination the second most biodiverse country in the world, after Brazil. Ranked third in living species and second species of birds in the world, and has 45,000 species of plants, representing between 10% and 20% of species worldwide.

The Colombian people are characterized by their kindness and strength, besides being a gay culture that celebrates life to the rhythm of cumbia, to the sound of the music of drums and bagpipes, and the enjoyment of vallenato and pop stars of national and the world music scene.

COLOMBIA

PHYSICAL ASPECTS

The study area is located on the eastern slopes of the Andes and extends between the parallels 01 ° 20 'north latitude to 01 ° 30' south latitude, and from the meridian 75 ° 15 'to 78 ° 25 'west of Greenwich and comprises the border area between Colombia and Ecuador.

The total area is 48,172 km2 of which 11,914 km2 area are Colombian and Ecuadorian corresponding 36 258 km2.

Includes complete watershed of the Putumayo and its tributary the San Miguel to the point where they are trifinio borders Ecuador, Colombia, and Peru Aguarico River basin and the entire left bank of the Napo River from the ANZUS to its confluence with Aguarico. In the study area there are three major landscapes, the area of high mountains and rugged, with the belt of piedmont hills high and low and finally the Amazon floodplain. Numerous physiographic units are distinguished according to the height, the degree of dissection, topography and susceptibility to flooding. The climate is tropical wet except above 1,000 masl (meters above sea level).

The natural vegetation is forest exclusively either hardwood or palms in the lower parts. The subsoil of the area has large oil reserves in operation. It is also important mineralized areas with presence of copper and molybdenum, radioactive minerals, tungsten and manganese, as well as deposits of bitumen, limestone, gypsum and kaolin. It comes in gold abundance in the alluvial sands of many rivers.

COLOMBIA COMPETITIVE

For several years, taking into account the trend of transnational markets and the global economy, the national government together with the private sector and civil society have been developing projects that aim to make Colombia a country more competitive.

SOME REASONS

• Colombia has an excellent entrepreneurship and management. It has quality standards comparable with the best in the world.

• Colombia is the 37th economy in the world with the best conditions for entrepreneurs.

• The World Economic Forum (WEF) ranked Colombia in the 69th among 133 countries on its competitiveness.

• Colombia is the top reformer in favor of companies in Latin America and this enabled him to move from 79th out of 183 economies in 2007, the number 37 three years later.

• Colombia facilitated the opening of businesses, improved access to credit, facilitated cross-border trade, strengthened investor protection, simplified construction permits, registering property and paying taxes.

• Meanwhile, the Global Competitiveness Report of the World Economic Forum (WEF) emphasizes not only economic achievements, but also what he calls civil pacification of the country, the fact of having a large domestic market, a sophisticated business sector successfully absorb foreign technology and with a relatively high potential for innovation.

STRATEGIC LOCATION

Given its position as a compromise between North and South America, and its coasts on two oceans, allows Colombia to be established as a strategic export platform for the region and the world, in addition to easy access to the U.S. market European, Asian and Latin American.

Similarly, Bogotá has the El Dorado International Airport, which is located on the first place in moving cargo in South America with more than 550 thousand tons and the third in passengers with over 8 million travelers. Which mobilizes 16 million passengers and 1.5 million tons of cargo in the medium term.

The Colombian zone also represents an advantage over other countries, since it is the same on the east coast of the United States, facilitating the activities of Call Center and Business Process Outsoursing (BPO) from Colombia for the entire continent.

Finally, thanks to various free trade agreements and unilateral tariff preferences granted, Colombia has access to a market of 1,200 million people.

ENVIRONMENT

The politics of environmental pollution control have changed substantially since the late 80s, towards new preventive.Its major challenge currently environmentally clean production, to generate a final product more environmentally friendly, as a result of a process of incorporating in each of the phases of the life cycle of the products of BEP. These policies also are aimed at regulating the exploitation of resources has been very rapid and unnecessary. Colombia has established internal mechanisms to care for the environment as are:

• National Plan for green markets: in charge of consolidating the national production of environmental goods and services and take advantage of Colombia's comparative advantages in these sectors, in order to meet the growing international and domestic demand for natural products, healthy and environmentally friendly.

 • National Cleaner Production: UNEP (United Nations Environment Programme), defines cleaner production as the continuous application of an integrated preventive environmental strategy, production processes, products and services, to reduce risks relevant to humans and the environment. Internationally sees the importance of environmental protocols at the time of establishing trade relations with countries, so the signing of a free trade agreement, Colombia will be willing to supplement it with environmental protocols such as the FTA with Canada, with U.S. and the European Union. Colombia is attached to the two most important protocols in the environment.

 • Montreal Protocol, aims to protect the ozone layer by controlling production of substances degrading it.

 • Kyoto protocol is an international agreement that aims to reduce emissions of six gases provocative global warming: carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O), plus three fluorinated industrial gases: carbon hydrofluorocarbons (HFCs), perfluoro carbons (PFCs) and sulfur hexafluoride (SF6), at a rate of approximately 5%, in the period from 2008 to 2012 compared to 1990 emissions.

INVESTMENT SECTORS IN COLOMBIA

Colombia has identified the following sectors and subsectors that represent outstanding investment opportunities. Those interested in investing in Colombia have all the support of the Ministry of Commerce, Industry and Tourism to develop their business in our country.

• Investment in the Forestry sector• Investment in Biofuels sector• Investment in horticulture• Investment in the sector Cocoa, Chocolate and Confectionery• Investment in the sector Shrimp• Investment in the sector outsourcingBPO Business Process• Investment in the Private Equity industry• Investment in Real Sector and Oil Services• Investment in the sector tourist infrastructure• Investment in the sector of IT Software and Services.

In addition to the Promotion of Foreign Direct Investment in Colombia by Proexport Colombia, the National Government through the Ministry of Commerce, Industry and Tourism has developed the Productive Transformation Policy, based on two strategies: More and better than good and new and emerging sectors, in order to achieve sustained economic growth and create jobs.

INVESTMENT IN FORESTRY

With 17 million hectares suitable for reforestation, distributed in various altitudes, forest species diversity with high value added, important development of biotechnology and genetic optimal climatic conditions and tax benefits and incentives, Colombia is positioned as a destination for investment in the sector forest.

• Currently only 2.13% using the potential of forest plantations 369.440hectáreas.

• technological packages for growing various species of which are highlighted variety of pines and eucalyptus pulp production, sawmilling, construction, charcoal and boards, Teak, Walnut coffee and Acacia mangium for sawtimber and Melina for plywood and other uses.

• Photosynthesis round by location in the tropics where there is a high biomass production, species higher yields and shorter life cycles.

• Important genetic and biotechnological development has consolidated production base of high quality forest germplasm with production capacity of plant material.

• Tax benefits and incentives including exemption is the income tax to the use of new forest plantations and Forestry Incentive Certificate (CIF)

These are just some of the reasons to invest in forestry, we invite you to learn in detail these and more reasons to make Colombia the chosen destination for your projects.

10 REASONS TO INVEST IN COLOMBIA

1. Macroeconomic stability

Colombia is one of the most stable economies in Latin America.It has had a persistent economic growth above the regional average.He obtained a growth of 7.5% in 2007The inflation rate has declined in recent years and in 2007 was 5.7%.External debt has been reduced in recent years over 20% of GDP (2002: 51% of GDP, 2006: 30.6% of GD

2. Political stability

All presidents have been elected democratically, except for a short period (1953 - 1957) which had military dictatorship. According to the World Competitiveness Yearbook 2006, Colombia ranks first in the countries of the region in terms of consistency and transparency of government policies.

3. Qualified human resources and Competitive

Colombia's workforce is considered the best in the Andean Community and is one of the most qualified managerial and operational level in Latin America.The literacy rate in Colombia is one of the highest in Latin America.

Colombia's workforce is competitive in terms of work costs.Los sector wages and payment services per hour in the manufacturing sector are highly competitive when compared with other developing countries and developed countries.In Colombia, particularly at the professional level, there were no discrimination against women.

4. Flexible Work Arrangements

Colombia has one of the most flexible labor regimes in Latin America.

Daytime working hours extended from 6 am until 10 pm For this reason, the employer may hire two shifts without overtime pay or night surcharges.Method of hiring apprentices National Apprenticeship Service (SENA), through a contract to provide services without the employ of the company. Thus, the employer has no obligation to pay benefits.Amount of compensation for unfair dismissal reduced.

5. Strategic Location

Colombia is strategically located at a point between North America and South America.It has coasts on both the Pacific Ocean and the Atlantic and has modern port infrastructure.Easy access to North American, European, Asian and Latin.

6. Export Platform and Privileged Access to Global Markets

Thanks to various free trade agreements and unilateral tariff preferences granted, Colombia has access to a market of 1,200 million people:

Free Trade AgreementsU.S. FTA being ratifiedAndean Community-CAN (Colombia, Bolivia, Ecuador and Peru).G-3 (Colombia and Mexico).CAN-MERCOSUR.Colombia - Chile.Colombia - CARICOM

Tariff Preferences

7. Special Dietary Foreign Trade

10 Areas frank exchange offer incentives, tax and duty.5 SEZs export incentives exchange, prosecutors, customs and labor.Incentives highly exporters usersSistemas especiales de importación – exportación

8. Multiple Development Poles

Colombia has the third largest population in the region with over 41 million inhabitants:

1 city of over 7 million people.3 cities of more than 2 million inhabitants.4 cities of over 500,000 inhabitants.23 cities of over 100,000 inhabitants.

9. Physical Infrastructure

Colombia has one of the highest percentages of coverage in public services in Latin America.It has a modern telecommunications infrastructure.He has increased investments in transportation infrastructure.Six ports in the Caribbean and two in the Pacific5 international airports91% of paved national backbones

10. Confidence of foreign investors

Foreign direct investment has grown significantly and in 2006 stood at U.S. $ 6.295 millionMore than 700 multinationals have investments in Colombia.Recently, other multinationals have their vote of confidence in Colombia

Thanks