Transcript Chile - CzechTrade

Chile
A LONG TERM
BUSINESS PARTNER
JORGE PIZARRO CRISTI
EXECUTIVE VICE PRESIDENT
FOREIGN INVESTMENT COMMITTEE
A long
term
partner
A new FDI
attraction
strategy
WHY
CHILE?
A land of
opportunities
Mature
business
environment
FDI in Chile:
A solid track
record
SNAPSHOT OF THE CHILEAN ECONOMY
Economy
GDP 2013
GDP per capita (PPP, 2014)
US$ 277 Billion (IMF)
US$ 23,165 (IMF)
1° place in Latin America
Actual interest rate (Monetary Policy)
3.0% (Oct 2014)
Unemployment rate
6.7% (Jun-Aug 2014)
External Public Debt (2013)
US$ 24.4 billion
Exports (2013)
US$ 77.4 billion
Imports (2013)
US$ 74.9 billion
1. A LONG TERM
PARTNER
BEST EVALUATED
ECONOMY IN LATAM
Chile is the best evaluated economy in
Latin America and, indeed, one of the
best evaluated among emerging
economies worldwide. Its sustained
economic growth and social progress
have been highlighted by different
international organizations and, in 2010,
it became the first South American
country to join the Organisation for
Economic Co-operation and
Development (OECD).
CHILE LEADS LATIN AMERICA
Singapore
Hong Kong
New Zealand
United States
Denmark
Malaysia
Korea
Georgia
Norway
U. Kingdom
Chile
France
Peru
Colombia
Spain
Mexico
Italy
Uruguay
China
Brazil
Doing Business 2014
Global Competitiveness Index 2014-2015
(34 out of 189 economies)*
(33 out of 144 economies)*
1
2
3
4
5
6
7
8
9
10
34
38
42
43
52
53
65
88
96
119
*Selected economies.
Switzerland
1
United States
3
Germany
5
Japan
6
United Kingdom
9
Canada
15
Australia
22
France
23
China
28
Chile
33
Spain
35
Italy
49
Brazil
Mexico
35
61
Peru
65
Colombia
66
A LOW RISK COUNTRY
Risk overall ranking 2014
(Selected economies)
13/A
Hong Kong
Norway
Luxembourg
Denmark
Finland
Germany
USA
Chile
Japan
United Kingdom
France
Spain
Ireland
Italy
China
Peru
Mexico
Colombia
Brazil
14/A
Chile’s Sovereign Ratings
15/A
Fitch Ratings
A+
Standard & Poor’s
AA-
20/A
Moody’s
Aa3
20/A
DBRS
15/A
16/A
20/A
22/B
23/B
24/B
26/B
27/B
36/B
43/C
43/C
44/C
44/C
47/C
0
10
20
30
40
50
Source: Economist Intelligence Unit
AA-
HEALTHY FINANCIAL SYSTEM
•
Over the past 30 years, Chile’s financial
system has undergone significant
development, with an increase in the
number of participants, the variety of
products, and market depth.
•
Chile’s banking system is largely
privately owned (except for
BancoEstado), with a significant
presence of foreign-owned subsidiaries.
•
Currently, there are 23 banks established and operating in the country: 18 of them are considered
“established in Chile", 4 are subsidiaries of foreign banks and one is State-owned.
•
All banks are subject to the supervision of the Superintendence of Banks and Financial Institutions
(SBIF) and are ruled by the General Banking Act and by regulations issued by SBIF.
•
According to the OECD (in its latest economic review about Chile- October 2013) the financial
system remains healthy and reflects strong financial supervision.
WHAT THEY SAY ABOUT CHILE
“Chile has been a model of democracy in Latin America. It's
been able to consistently transition from center-left
governments to center-right governments, but always
respectful of democratic traditions”.
President of the USA, Barack Obama
June 30, 2014
2. MATURE
BUSINESS
ENVIRONMENT
THE BEST BUSINESS
ENVIRONMENT IN LATAM
Thanks to its political and
economic stability, openness
to trade, legal security and
excellent growth prospects,
Chile has maintained an
attractive and dynamic
business climate for investors.
BUSINESS ENVIRONMENT RANKING
GLOBAL RANKING 2014-2018 (13 out of 82 economies)
Singapore
1
Switzerland
2
Hong Kong
3
Australia
5
USA
7
Germany
12
Chile
13
Netherlands
16
UK
22
France
24
Spain
25
Japan
27
Argentina
70
0
1
2
3
Source: Economist Intelligence Unit. Selected economies.
4
5
6
7
8
9
10
A TRANSPARENT COUNTRY
Corruption Perception Index 2013
(22 out of 174 economies)*
Denmark
1
New Zealand
1
Finland
3
Sweden
3
Norway
5
Germany
12
United Kingdom
14
United States
19
Uruguay
19
France
22
Chile
22
Spain
Brazil
*Selected economies. Source: Transparency International
40
72
Peru
83
Colombia
94
Argentina
106
Mexico
106
HUMAN DEVELOPMENT INDEX 2014
41 OUT OF 187 ECONOMIES
1
2
3
4
5
6
14
15
17
20
26
27
40
41
41
49
50
71
79
82
98
98
Norway
Australia
Switzerland
Netherlands
United States
Germany
United Kingdom
Korea (Republic of)
Japan
France
Italy
Spain
United Arab Emirates
Chile
Portugal
Argentina
Uruguay
Mexico
Brazil
Peru
Colombia
Ecuador
Source: UNDP
2014 GLOBAL PEACE INDEX
30 OUT OF 162 COUNTRIES
Iceland
1
New Zealand
4
Canada
7
Japan
8
Australia
15
Germany
17
Singapore
25
Spain
26
Uruguay
29
Chile
30
Italy
34
UK
47
France
48
Brazil
91
USA
101
China
108
Peru
119
Mexico
138
0
500
1000
Source: The Institute for Economics and Peace (IEP)
1500
2000
2500
3000
23 FREE TRADE AGREEMENTS WITH 61 COUNTRIES
•
13 Free Trade Agreements
•
6 Economic Complementation Agreement
•
3 Economic Partnership Agreement
•
2 Agreements in negotiation
85%
of the
global
GDP
93.8%
63%
of world
population
Agreements in force
Agreements signed but not yet in force
of Chile’s
export
markets
AVOIDANCE OF DOUBLE TAXATION AGREEMENTS
Chile has entered into 25 ADTA with 25 countries.
•
•
•
•
•
•
Australia
Belgium
Brazil
Canada
Colombia
Korea
•
•
•
•
•
•
Croatia
Denmark
Ecuador
Spain
France
Ireland
•
•
•
•
•
Malaysia
Mexico
Norway
New
Zealand
Paraguay
•
•
•
•
•
•
Peru
•
Poland
•
Portugal
United Kingdom
Russia
Sweden
Switzerland
Thailand
WHAT THEY SAY ABOUT CHILE
“Foreign investment plays a key role in boosting and
diversifying our economy and creating value”.
President Michelle Bachelet
July 30, 2014
3. FDI IN CHILE:
A SOLID
TRACK RECORD
TOP 20 FDI HOST ECONOMIES 2013
US$ Billions
1. United States
2. China
3. Russia
4. Hong Kong
5. Brazil
6. Singapore
7. Canada
8. Australia
9. Spain
10. Mexico
11. United Kingdom
12. Ireland
13. Luxembourg
14. India
15. Germany
16. Netherlands
17. Chile
18. Indonesia
19. Colombia
20. Italy
Source: World Investment Report, UNCTAD, 2014
188
124
79
77
64
64
62
50
39
38
37
36
30
28
27
24
20
18
17
17
Developed economies
Developing and transition economies
FDI IN CHILE, 2003-2013
US$ Billions
28.5
22.9
20.3
15.5
12.9
12.5
7.2
7.1
7.4
2004
2005
2006
15.4
4.3
2003
Source: Central Bank
2007
2008
2009
2010
2011
2012
2013
FDI INFLOWS IN CHILE JANUARY-JUNE
2004-2014, US$ Millions
30.000
25.000
20.000
Jul-Dec
2do
Semestre
15.000
Jan-Jun
1er
Semestre
10.000
5.000
0
2004
2005
2006
2007
Source: Chile Central Bank
2008
2009
2010
2011
2012
2013
2014
FDI INFLOWS IN CHILE
2009-2013, US$ 100.8 Billion
By country
By sector
United States
16.7%
Not assigned
23.0%
Netherlands
14.8%
Others
8.2%
Construction
1.0%
Mining
44.9%
Transport &
Communication
3.4%
Belgium
1.3%
Colombia
1.7%
Luxembourg
2.2%
Not assigned
16.9%
Commerce
1.2%
Germany
1.2%
Bahamas
1.8%
Agriculture &
fishing
0.2%
Brazil
2.7%
Bermuda
2.9%
Spain
10.4%
Canada
Japan
5.1%
3.8%
United Kingdom
4.3%
Source: Central Bank of Chile
Manufacturing
4.7%
Electricity, gas &
water
10.2%
Services
17.6%
WHAT THEY SAY ABOUT CHILE
“(I’m expecting) a brilliant future for the Chilean economy”.
Prime Minister of Japan, Shenzo Abe
August 1, 2014
4. A LAND OF
OPPORTUNITIES
Investment opportunities
MINING
THE CHILEAN MINING SECTOR IN FIGURES
 Chile has 28% of the world´s copper reserves (USGS 2012)
 Chile is the world´s number 1 producter of copper(32%),the 6th
most important producer of silver and also produces:
 Natural nitrates (100%)
 Iodeine ( 58%).
 Lithium(45%)
 Mining companies have plans to invest US$104 billion during
the next 9 years (August 2014)
 The combined expenditure of the companies in the mining
industry is at least US$15 billion per year
 There are at least 4600 mining supplier companies in Chile
and world class mining suppliers are present in the country
Further information is available at: www.minmineria.cl
MINING
New Government Guidelines
•
•
•
•
New approach in regards to water scarcity. Identify new solutions to ensure adequate supply of
this critical input for the mining industry.
Formation of an expert commission to come up with national policies in regards to lithium
exploitation.
To foster mining-related educational programs and training to equip the industry with qualified and
compeititive staff.
New Policies for the mining industry to encourage collaboration and integration among all relevant
players (suppliers, research institutions, government, exploration companies, etc).
MINING: OPPORTUNITIES
Exploration opportunities:




Most mining multi-nationals are present in Chile.
Most of the country has not yet been explored.
There are many mining properties for sale. The
majority are small and have not been explored.
There are projects which need capital investments
in order to expand.
Supplier opportunities:





Equipment and supplies.
Engineering and consulting.
Construction.
Production support services.
Locating headquarters in Chile to export to other
countries in the region.
ENERGY
THE CHILEAN ELECTRIC SECTOR IN FIGURES
 The installed capacity is 17.7 GW (December 2013)
 The capacity is distributed via different networks::
 The Central Inter-connected System (SIC) 78%
 The Norther nInter-connected System (SING) 21%
 The Aysén and Magallanes systems, 1%
 In 2013 the gross generation of SIC and SING was
68,050GWh which was an increase of 3.8% compared to
2012.
 In 2013 hydroelectric generation (excluding mini hydro
power stations) accounted for 26.6% of generation, coal
fired power 46.4%, natural gas 16.6% and renewable nonconventional sources 6.3%
Further information is available at: www.minenergia.cl
Source: Chile's National Commission of Energy
ENERGY
NEWS AREAS OF FOCUS FOR ENERGY - PILLARS – (1)
1.
New Role of Government.
2.
Reduction in energy prices through more competition, efficiency and diversification in
the Energy Market.
3.
Development of our own Energy Resources.
4.
Connectivity for Energy Development.
5.
An Efficient Energy Sector that manages consumption.
6.
Boost to investment in energy infrastructure.
7.
Citizen’s Participation and planning of opportunities by territory.
Source: Chile's Energy Agenda (1)
ENERGY: OPPORTUNITIES

Generation: new projects to satisfy an increase in
demand from regulated and free customers .
From 2014 through 2025, 45% of the new electric
generation capacity will come from NCRE (1) .

Energy Efficiency: a strong boost with the public
sector playing a significant role in increasing
sustainability.

NCRE: Promotion of NCRE, especially solar and
geothermal technologies.

LNG: The use of gas for electricity generation will
be leveraged.

Barriers to entry in generation: will be reduced
in order to increase competition and the number of
players, including foreign companies.
Source: Chile's Energy Agenda (1)
INFRASTRUCTURE
INFRASTRUCTURE IN CHILE IN FIGURES
 In the period 2006 – 2014, there were 49 tenders for
concessions including those for improvements and
regenration worth US$9,96 billion.
 For the period 2014-2023 there is a portfolio of potential
concessions projects with a value of more than US$11 billion.
 Increased need for road infrastructure due to an increase in
the number of vehicles in circulation in Chile of 65% in the
period 2005-2012 (3,973,913 vehicles in 2012).
 In the period 2014-2012 there will be a strong investment in
regional infrastructure projects for a total amount of US$18
billion.
Further information is available at: www.mop.cl
INFRASTRUCTURE
NEW AREAS OF FOCUS FOR INFRASTRUCTURE
 Reconstruction work in areas affected by natural disasters.
 Review and improvement of the concessions system with an emphasis on
delivering value and efficiency in providing services.
 Development of Ports.
 Protection plan for airport zones.
 Development and improvement of border crossings.
 Social and recreational infrastructure.
 Continuation of the Chacao crossing project.
 Maritime connectivity.
INFRASTRUCTURE: CHALLENGES AND OPPORTUNITIES
• Challenge of improving national infrastructure (Chile
is in 45th place in the ranking of global infrastructure
of the World Economic Forum)
Public and private needs by 2018:
• Urban roads (including public transport)
US$ 21.7 billion.
• Ports US$ 2.6 billion.
• Water resourcres US$ 3.6 billion.
• Interurban roads US$ 10.3 billion.
• Airports US$ 1.4 billion.
• Hospital and prison infrastructure
US$ 4.2 billion.
FOOD INDUSTRY
FOOD INDUSTRY IN FIGURES
 Chile is in 17th place in the ranking of food exporting
countries. The aim is to be in the top 10 countries by
2020.
 Food exports in 2013: more than US$ 15 billion.
 Food products account for around 20% of exports.
 They account for 7.9% of Chile’s GDP.
Further information is available at: www.minagri.gob.cl
FOOD INDUSTRY
NEW AREAS OF FOCUS FOR THE FOOD INDUSTRY






Improving productivity and competitiveness of Chilean agriculture.
Boosting innovation and research especially in functional foods.
Improving water management (irrigation).
Maintaining leadership in food safety and sanitary rules.
Ensuring the sustainability of fishing resources.
Improving access to external markets with better quality and differentiation of
products.
FOOD INDUSTRY: CHALLENGES AND OPPORTUNITIES
FRUIT INDUSTRY
• An area of 330,000 hectares areas planted
for fruit cultivation.
• Main products exported (by volume)
grapes, apples, kiwis, avocadoes, plums,
blueberries and cherries.
Investment opportunities:
• Primary production fresh fruit, dried fruit,
cherries and berries.
• Management and value creation for waste
and by-products of fruit industry.
• Fruit production for food processing.
SALMON
• Chile is the second largest producer in the world
after Norway with 27% of world production (792,000
tonnes).
Investment opportunities:
• Salmon food.
• Cage services.
• Food safety controls and disease prevention.
FOOD INDUSTRY: CHALLENGES AND OPPORTUNITIES
WINE
• Chile is the 8th most important producer worldwide
with annual production of 1.28 million litres
Investment opportunities:
• Production of speciality wines (organic, high altitude
etc.)
• Functional foods based on sub-products from grapes.
DAIRY INDUSTRY
• Production 2.675 billion litres.
Investment opportunity:
• Milk production from cattle.
• Production of products derived from milk.
6. A NEW FDI
ATTRACTION
STRATEGY
WE ARE LOOKING FOR MORE AND BETTER FDI

That adds value to our exports.

That energizes highly concentrated markets.

That generates quality jobs and allows
development of our human capital.

That points to long term sustainable growth.

With high quality standards and best practices.

That allows a good productive linkage with
local suppliers.

Seeking innovative and technological development.

In different regions and key economic sectors.
THE NEW INVESTMENT PROMOTION AGENCY
We are improving to offer the best service to foreign investors:
•
Information about Chile’s business climate and
specific investment opportunities.
•
Portfolio of public investment projects and tenders.
•
Guidance to apply to sectorial investment incentives programs.
•
Direct contact with sectorial ministers, state agencies and the
Chilean private sector.
•
Assistance in preparing schedule of meetings.
•
Reports and publications.
SERVICES, ACTIVITIES AND TOOLS
Information services
• Information about Chile’s
business climate.
Investment facilitation
services
•
Legal advice for the signing
of a foreign investment
contract.
•
Assistance in preparing
schedule of meetings.
•
Processing of investors’
queries and applications.
•
Assistance to contact public
and private sectorial
institutions.
• Portfolio of public and private
investment projects.
• Reports and other
publications.
• FDI statistics.
• Material in Spanish, English
and Chinese.
• Participation in forums.
CONTACTS
Head of the FDI Attraction Unit
Vicente Mira| [email protected]
Energy
Jorge Yáñez | [email protected]
Mining and Infrastructure
Nicolás Muñoz | [email protected]
Tourism and TI
Martin Pathan | [email protected]
Food Industry and Biotechnology
Vanessa Séverin | [email protected]
Small and medium enterprises
Salvatore Di Giovanni | [email protected]
www.chileinvestmentforum.cl
“Trust, believe and invest in Chile.”
President Michelle Bachelet
www.ciechile.gob.cl
[email protected]