Transcript Slide 1

Doing Business in Brazil
Map of Brazil
Area: 8,514,876,599 sq
Km
land: 8,459,417 sq km
water: 55,460 sq km
Eastern South America,
bordering the Atlantic
Ocean
Capital: Brasília
26 states and 5,561 cities
Note: largest country in
South America; shares
common boundaries with
every South American
country except Chile and
Ecuador
Brazil is known worldwide as the country of Carnival and Football (Soccer). Yes, it is. But it
is a lot of more than that. Soccer and Carnival are great business for the country and its
people. Brazil has a lot of beautiful beaches, big cities, hold one of the 7 wonders of the
world - The Statue of Christ the Redeemer, in Rio de Janeiro - and São Paulo is the capital
of business.
São Paulo is the largest city in Brazil and the world's 7th largest metropolitan area. It is also
the richest city in Brazil. The city has many renowned landmarks, such as the Museu
Paulista do Ipiranga, the gothic Metropolitan Sé Cathedral, the São Paulo Museum of Art
(MASP), the Monument to the flag, Niemeyer's Ibirapuera complex Bienal, planetarium, and
museums; and more recently the Espraiada bridge in the South Side. Paulista Avenue, in
Midtown is the most important financial center in the country and South America.
The Carnival of Brazil, properly spelled "Carnaval" in Portuguese, is an annual festival
in Brazil held forty days before Easter. Rhythm, participation, and costumes vary from
one region of Brazil to another. In the southeastern cities of Rio de Janeiro and São
Paulo, organized parades led by samba schools are influenced in aesthetics by Venice
Carnival. Those official parades are specific to be watched by the public, although
minor parades (called blocos) allowing participation can be found in other cities.
The northeastern cities of Salvador, Porto Seguro and Recife have organized
groups parading through streets, and public interacts directly with them. This
carnival is heavily influenced by African-Brazilian culture. Crowds follow the trio
elétricos floats through the city streets. Also in northeast, Olinda carnival
features unique characteristics, part influenced by Venice Carnival mixed with
cultural pieces of local folklore.
Carnival is the most famous holiday in Brazil
and has become an event of huge
proportions. The country stops completely for
almost a week and festivities are intense, day
and night, mainly in coastal cities. The local
tourism receives 70% of annual visitors during
this time.
Brazil team are the most successful national football team in the history of the
World Cup, with five championships (1958, 1962, 1970, 1994, 2002). A common quip
about football is: "The English invented it, the Brazilians perfected it.“. It is the
only team to have played in every World Cup. Our football player have made a lot of
money in Europe, and always there is a lot of team fighting for them.
Brazil has Pele who becomes a football
legend, he is known for his accomplishments
and contributions to the game of football in
addition to being officially declared football
ambassador of the world by FIFA and a
national treasure by the Brazilian
government. He is known as “The King of
Football”.
The national beverage is coffee and it has been one of the main
beverages among Brazilians since the beginning of the 19th century.
Brazil is the world leader in production of green coffee, followed by
Vietnam and Colombia.
2007 – Top green coffee producers:
Brazil – 2,249,010 T
Vietnam – 961,200 T
Colombia – 697,377 T
World – 7,742,675 T
Cachaça is Brazil's native liquor, and it is also known as
aguardente, pinga, among others. Cachaça is distilled from sugar
cane and is the main ingredient in the national cocktail,
Caipirinha. Brazil consumes 1.5 billion liters per year, and 15
million of liters are consumed outside per year.
Brazil – General Profile
• Population: 198,739,269 – Fifth Largest Population in the world;
• Population growth rate: 1.999% (2009 est.);
• Climate: moderate Tropical - humid and hot. There is a small variation in
temperature, and it is comfortable in most parts of the country;
• Language: Portuguese (official);
Brazil – General Profile
• Ethnic groups: white 53.7%, mulatto (mixed white and black) 38.5%, black 6.2%,
other (includes Japanese, Arab, Amerindian) 0.9%, unspecified 0.7% (2000 census);
• Government type: Federal Republic;
• Legal System: based on Roman codes;
Brazil – News Overview
“Brazil takes off!”
The Economist - November,2009
“Brazil's economy leaves recession - Brazil has come out of
recession after its economy grew (…)”
BBC News - Sept, 2009
“Investors in Developing Markets See Optimism in Brazil”
The New York Times – June, 2009
Brazilian Economy– Growing from 2003 to 2009
“Brazil is South America's most influential country, an economic
giant and one of the world's biggest democracies.”
BBC News – Country Profile
- Since 2003, Brazil has steadily improved macroeconomic stability building up foreign reserves, reducing its debt profile, adhering to
an inflation target, and committing to fiscal responsibility;
- In 2008, Brazil became a net external creditor;
Brazilian Economy– Growing from 2003 to 2009
- Brazil's external debt totaled less than its foreign reserve holdings,
and two ratings agencies awarded investment grade status to its
debt. After record growth in 2007 and 2008, the onset of the
global financial crisis hit Brazil in September, 2008;
- Brazil was one of the first emerging markets to begin a recovery.
Consumer and investor confidence revived and GDP growth
returned to positive in the second quarter, 2009;
- The Brazilian Central Bank expects growth of 5% for 2010.
Brazilian Economy – General Indicators
Brazil - Economic and Financial Indicators
2003
2004
2005
2006
2007
2008
GDP (real ann. %-chg)
1,1
5,7
3,2
4
6,1
5,1
Consumption (real ann. %-chg)
-0,3
3,9
3,9
4,5
5,8
5,7
Investment (real ann. %-chg)
-4,6
9,1
3,6
9,8
13,9
13,4
Agriculture (real ann. %-chg)
5,8
2,3
0,3
4,5
5,2
5,7
Industry (real ann. %-chg)
1,3
7,9
2,1
2,3
5,2
4,4
Services (real ann. %-chg)
0,8
5,0
3,7
4,2
6,1
4,8
Manufacturing (real ann. %-chg)
0,1
8,3
3,1
2,8
6,0
3,1
Retail Sales (real ann. %-chg)
-3,7
9,2
4,8
6,2
9,7
9,1
Unemployment (%)
10,9
9,6
8,3
8,4
7,4
6,8
Fiscal Balance (% of GDP)
-4,6
-2,4
-3,0
-2,9
-2,2
-1,5
Source: Banco Central do Brasil, Ministry of Treasure of Brazil,
Institute of Geography and Statistics (IBGE).
Employment Market in Brazil - From 2003 to 2009
- The Brazilian workers have now more years of schooling than seven years ago:
Percent of the workforce with high school or above education (11 years of education) in 2003: 46.7
Percent of the workforce with high school or above education (11 years of education) in 2009: 57.5
- Brazil's unemployment rate falls 28.75% in 7 years:
Salary indicators went up 14.3 percent in seven years, reaching 1,350 reais (729 U.S. dollars)
- Brazil´s Labor Force - 95.21 million - Sixth Largest Labor Force in the World;
- According to Brazil´s Ministry of Labor and Employment, on January 2010, Brazil added
181.419 new formal jobs;
Sources:
Institute of Geography and Statistics (IBGE)
MTE – Ministry of Labor and Employment
Brazilian Economy – General Indicators
Business in Brazil – Positive Points
• It is the largest country in South America;
• It is the fifth largest country by geographical area, and the fifth most populous
country in the world;
• It is a democratic country, and all members of the executive and legislative
branches are directly elected;
• The climate of Brazil is tropical, and there is not natural disaster;
Business in Brazil – Positive Points
• The Real is a current and stable currency;
• It is a multicultural country;
• Accounts for three fifths of industrial production in the South American economy
and is a part of MERCOSUL - the Regional Trade Agreement of Latin America;
• The exchange rate system does not generate pressure on the industry or inflation.
Why choose Brazil for Business?
• World's eighth largest economy by nominal GDP and the ninth largest by
purchasing power parity;
• Productive growth has created new labor and market opportunities and
consolidated new investments;
• Industrial Production in Brazil rose by 18,9% in December, 2009 - even after the
oscillations during the crisis.
OBSTACLES - Constantly Changing Legislation and Legal and Bureaucratic
Complications;
Visa Categories
Entry clearance requirements are dependent on the Citizenship of the applicant
and purpose of visit. Citizens of most countries do need a visa to visit Brazil for
business or work purposes unless provided by treaty or other reciprocity
agreement.
There are seven temporary visa categories. The most frequently used options are:
• Temporary item 2 visa: business visitor;
• Temporary item 5 visa: local employment contract work visa, technical visa (90
days/ 01 year);
• Permanent visa: entrepreneur, manager, director, executive work visa
Work Permits - Visa Statistics
TEMPORARY VISAS
2009
VISA TYPES
2009
90 Days
12423
Permanent
2454
One Year
12028
Temporary
40460
TOTAL
42914
2 Years - With Labor Contract
2578
2 Years - Without Labor Contract
13431
TOTAL
40460
ANALYSIS OF PERMANENT VISAS
Investor – Individual
Administrators, directors, managers and executives with
power management
2009
921
933
Others
600
TOTAL
2454
Source:
MTE – Ministry of Labor and Employment
Work Permits - Visa Statistics
Countries that have sent more foreigners to Brazil in 2009
SPAIN
INDONESIA
ITALY
FRANCE
JAPAN
GERMANY
INDIA
CHINA
UNITED KINGDOM
PHILIPPINES
EUA
1133
1356
1413
1613
1804
1815
1981
2422
3874
4825
5799
PERMANENT VISA FOR INVESTORS
(INDIVIDUALS)
Legal basis: Normative Resolution nº. 84, of February 10, 2009.
The granting of authorization for obtainment purposes of permanent visa by foreign
investor – Individual
Requirements:
• Minimum personal amount of R$150.000,00 (One Hundred and Fifty Thousand Reais)
at a new Brazilian company or at an already existing company.
• Social Interest - Employment and income in Brazil, the increase in productivity, the
assimilation of technology and the raising of resources for specific sectors.
• This type of visa is granted for three years - At the end of this period, the foreigner
will have to renewal his status as a resident through the substitution of the Foreign
Resident’s Identity Card (CIE) at the Federal Police Department.
PERMANENT VISA FOR INVESTORS
(INDIVIDUALS)
Investment by Country of Origin
Country
2008
2009
1. Italy
USD 22.757.548,51 USD 22.057.414,89
2. Portugal
USD 9.643.336,18
USD 11.598.023,18
3. Spain
USD 13.477.569,93 USD 8.063.199,03
4. Germany
USD 2.919.894,15
USD 6.930.940,29
5. China
USD 8.377.329,98
USD 5.393.783,07
6. France
USD 6.542.679,64
USD 4.710.841,64
7. USA
USD 10.972.195,17 USD 4.525.887,54
8. Switzerland
USD 1.415.005,97
USD 3.099.046,57
9. United Kingdom USD 2.820.649,59
USD 1.931.364,33
10. Holland
USD 2.439.406,83
USD 1.766.360,50
(...)
(...)
(...)
Total Amount
USD 98.391.958,77 USD 83.290.005,31
Source:
MTE – Ministry of Labor and Employment
We hope to see you in Brazil
Muito obrigada !
Daniela Lima
[email protected]
Phone: +55 11 3405 7807