Transcript Uruguay` s Presentation

Business Opportunities in Uruguay
April 2011
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These are exciting times for Uruguay:
Outstanding Value
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Very strong democracy and social and political stability
Continued growth and investment
Strategic location
Best labor value for money in the region
Highest internet and PC penetration in Latin America
Attractive promotion regimes which encourage investment
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Political and Social Stability
Low Corruption
Democracy Index
Economic Freedom Index
(Transparency International 2010)
(Economist Intelligence Unit 2010)
(Heritage Foundation 2011)
Worldwide
Worldwide
Worldwide
Nueva Zelanda
1
Noruega
1
Nueva Zelanda
4
Noruega
10
Nueva Zelanda
5
Irlanda
7
Irlanda
14
Irlanda
12
EE.UU.
9
Chile
21
EE.UU.
17
Chile
11
EE.UU.
22
España
18
Noruega
30
Uruguay
24
Corea del Sur
20
España
31
Francia
25
Uruguay
21
Uruguay
33
España
30
Costa Rica
24
Corea del Sur
35
Portugal
32
Portugal
26
Colombia
45
Corea del Sur
39
Italia
29
Costa Rica
49
Within South America
Uruguay
2
Within South America
Uruguay
1
Within South America
Uruguay
2
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Quality of Life
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Global Peace
Index (ranking)
New
Zealand
1
Ireland
6
Uruguay
24
Excellent sanitary level. Child mortality rate: 9.5 every 1,000
(2009), vs. 22.8 in Latin America (2007)
Spain
25
Chile
28
One of Latin America’s safest countries, evidenced by the
booming second home market (3rd in Latin Business Chronicle
2009 Index)
UK
31
Italy
40
Argentina
71
Brazil
83
US
85
Free from natural disasters
Tolerant country: no ethnic, racial or religious conflicts
Ranked among the first countries, with the Scandinavian
countries and Japan, in US-based Freedom House’s Freedom in
the World Survey 2009
Source: Economist Intelligence
Unit 2010
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A Growing Economy
GDP growth in constant values
Cumulative Annual Growth Rate (2004–2010): 6.3%
Estimated GDP growth in 2010
Paraguay
China
India
Uruguay
Peru
Argentina
Brazil
Mexico
Chile
Russia
Germany
Japan
USA
Eurozone
15.3%
10.5%
9.7%
8.5%
8.3%
7.5%
7.5%
5.0%
5.0%
4.0%
3.3%
2.8%
2.6%
1.7%
0%
Sources: Central Bank of Uruguay : IMF, World Economic Outlook, October
2010
5% 10% 15% 20%
Source: IMF, World Economic Outlook, October 2010
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Booming Foreign Direct Investment
Uruguay’s FDI flows
FDI in South America
(US$ millions)
(2009, % of GDP)
FDI increased considerably in 2002–2009
Uruguay
Chile
Perú
Brasil
Colombia
Paraguay
Ecuador
Argentina
4,0%
3,8%
3,5%
1,6%
1,5%
1,3%
1,2%
1,1%
0%
Source: Economic Commission for Latin America and the Caribbean
(ECLAC)
Source: ECLAC
1%
2%
3%
4%
5%
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Strong Growth in Exports
Uruguayan Exports
(US$, millions)
Goods and Services
Exports have tripled in the past 6 years
10000
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
Source: Central Bank of Uruguay (BCU) * Forecast for 2010
(2010, % of total exports)
Services
Goods
Source : Central Bank of Uruguay (BCU)* Forecast for
2010
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Export Break-Out
Main products and services
Other
30%
Raw hides, skins 3%
and leather
Vehicles and auto 3%
parts
Fish
3%
Malt, wheat flour 2%
Other
Livestock
2%
Petroleum oils
2% 30%
Fruits
2%
Fats, Oils
2%
Pharmaceuticals 2%
Rest
9%
Goods (2010)
Wool 3%
Plastics
4%
Wood
Dairy
products
products
4%
8%
Services (2010)
Meat 19%
Transport
Other
Services
22%
17%
Cereals
12%
Oil,
Soybeans
and Seeds
11%
Wood
pulp 10%
Sources: Central Bank of Uruguay (BCU) and Trademap; Uruguay XXI’s calculations
Travel
61%
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Main Destinations of Goods Exports
2000
Source: National Customs Administration
2010
Uruguay- Greece
Trade Balance
Uruguay - Greece
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2006 - 2010
US$ millions
5
4
3
2
1
0
-1
2006
2007
2008
2009
-2
Export
Source: National Customs Administration
Note: Date does not include stadistics of oil
Import
Trade Balance
2010
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Main Exported Products
Uruguay-Greece
2010
(NCM 0201)
Meat of bovine
animals, fresh or
chilled
(NCM 0303)
2%
Fish,frozen
5%
Others
2%
(NCM 0805)
Citrus fruit
6%
(NCM 1201)
Soya beans
85%
Source: National Customs Administration
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Main Imported Products
Uruguay-Greece
2010
(NCM 6002)
Knitted or crocheted
fabrics
3%
(NCM 9504)
Articles for funfair,
table or parlour
games
4%
(NCM 8424)
Machinery for
projecting, liquids or
powders
12%
Others
11%
(NCM 2401)
Tobacco
unmanufactured
52%
(NCM 8507)
Electric
accumulator
18%
Source: National Customs Administration. Note: Date does not include Stadistics of Oil
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Strategic Location
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Gateway to the Region
Asunción
960mi
72-96 hrs
Santiago
1,180mi
72-92 hrs
Buenos Aires
155mi
24 hrs
Rio de Janeiro
1,490mi
72-96 hrs
São Paulo
1,225mi
72-96 hrs
Porto Alegre
540mi
24-48 hrs
Montevideo
Uruguay:
A safe, reliable and
competitive location,
providing an unbeatable
logistics base in the heart
of the wealthiest region of
South America
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Access to a Large and Wealthy Market
Access to a large and growing consumer market due to our
membership in MERCOSUR and our open economy
Uruguay
MERCOSUR
3.3
241
176,215
11,878,244
38.4
2,283
GDP per capita 2010* (US$)
11,454
9,467
GDP growth rate 2010* (%)
8.4
7.5
Population (millions)
Area (km2)
GDP 2010* (US$ billions)
Sources: Central banks and national statistics institutes
* Forecast for 2010, source: IMF (WEO)
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Platform for the Region
Movement of containerized cargo in the port of Montevideo
Source: National Ports Authority (ANP)
Notes:
• Includes imports, exports, transit and transfer
• TEU = twenty-foot equivalent unit
Goods in transit:
2009: 47.3% – 2010: 51.4%
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Modern Infrastructure
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World-class port facilities in Montevideo, a regional
hub par excellence for South America’s Southern
Cone region
Boasts Latin America’s most dense highway network
2009: new airport terminal, Colonia ferry port and
Montevideo ring road
Reliable electric supply (mostly from renewable
sources)
Quality of electricity
supply (ranking)
UK
15
Ireland
25
Chile
30
Spain
36
Uruguay
37
Hungary
46
Italy
47
New Zealand
56
Brazil
63
Argentina
93
Source: World Economic Forum’s
Global Competitiveness Report
2010-2011
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Labor: Best Value for Money
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State provides free education
through college and invests 4.5%
of the GDP in education
Tertiary education
enrollment (ranking)
Adult literacy rate
(%)
US
6
Ireland
99.0
Spain
17
Switzerland
99.0
100% of 15 year-old high school
students have finished at least 3
years of English and 2 of
computer science
Argentina
19
UK
99.0
Uruguay
24
US
99.0
Ireland
33
Uruguay
97.9
UK
35
Spain
97.9
21% of university students study
accounting, finance or business
administration
Chile
43
Argentina
97.6
Switzerland
48
Chile
96.5
Brazil
65
Brazil
90.0
Source: World Economic Forum’s
Global Competitiveness Report
2010-2011
Source: United Nation’s Human
Development Report 2009
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Highest Ranked in LatAm in Use of
Modern Communications
Mobile telephone
subscribers
Fixed telephone
lines
Rank
Internet users
Rank
Internet access
in schools
Rank
Rank
UK
24
UK
11
UK
9
UK
18
Argentina
25
Ireland
18
Ireland
28
Uruguay
26
Uruguay
44
Costa Rica
38
Uruguay
41
Chile
42
Ireland
51
Uruguay
48
Colombia
47
Ireland
58
Chile
64
Argentina
53
Brazil
57
Costa Rica
64
Colombia
74
Brazil
62
Costa Rica
66
Brazil
72
Brazil
76
Chile
63
Chile
68
Colombia
88
Mexico
93
Mexico
72
Argentina
74
Mexico
89
Costa Rica
119
Colombia
77
Mexico
85
Argentina
111
Source: World Economic Forum’s Global Competitiveness Report 2010-2011
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One Laptop Per Child (Plan Ceibal)
Helping our future workforce eliminate the technology gap
• Only country in world to meet goal of full countrywide
coverage of school-age children and teachers
• Students covered: 380,000
• Teachers trained: 18,000
• Total free Wi-Fi spots in Montevideo: 250
• Thanks to the plan, 220,000 households (out of 1,280,000)
received their first computer; half of them belong to the
poorest 20% of the population
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Beneficial Promotion Systems
Comprehensive legal framework for investment
• The government recognizes the important role of the FDI and maintains
a favorable investment climate
• Uruguay has a track record of attracting large investments in agricultural, industrial,
services and infrastructure
• Investment Law (Nº 16,906) - January 1998:
 Domestic and foreign investors are treated equally
 Foreign investments do not require prior authorization or registration
 Free transferability of capital and profits overseas
• In 2008 the government created a one-stop shop to assist investors and an automatic,
predictable, transparent and effective mechanism that benefits a broader base of firms
and specifies objective criteria for granting incentives
• The United Kingdom and Uruguay signed an Investment Promotion and Protection
Agreement between the two nations in 1997
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Beneficial Promotion Systems
Tax benefits
• Exemption from Corporate Income Tax* for up to 100% of the amount
invested and for a period of up to 25 years, which depend on a matrix of
targets and indicators, and the size of the project
• Exemption of Wealth Tax on civil works for 8 to 10 years, and on fixed assets
throughout their life
• Exemption of import taxes and fees on fixed assets declared noncompetitive with the domestic industry
• 100% refund of VAT, under the exporters regime, on the acquisition of
materials and services for civil works in the domestic market
* Corporate Income Tax exists only at the national level (25%)
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Beneficial Promotion Systems
Other Tax Benefits
• Exemption of Wealth Tax on civil works, for 8 years in Montevideo
and for 10 years in other regions, and on fixed assets throughout
their life.
• Exemption of import taxes and fees on fixed assets declared noncompetitive with the domestic industry.
• 100% refund of VAT, under the exporters regime, on the acquisition
of materials and services for civil works in the domestic market.
* Corporate Income Tax exists only at the national level (25%)
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Temporary Admission
(similar to the drawback regime)
• Temporary Admission is the tax-free introduction of foreign
goods to the domestic market
• Goods to be exported, within 18 months, in the same state
they were introduced or after having been subject to certain
processing (manufacturing, repairing or value added processes)
• The Temporary Admission regime also applies to machinery
and equipment from any source, entering temporarily for
maintenance, repair or upgrade.
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Free Trade Zones
• Users 100% exempt from:
• Corporate Income Tax
• Wealth Tax
• Import levies
• Any other tax created or to be created in the future*
• Can develop industrial, commercial or service activities
• Technology and service-oriented business parks operating
as FTZs in Montevideo:
• Zonamerica
• Aguada Park
• World Trade Center Free Zone (2011)
• Parque de las Ciencias (2011)
*Companies
employees.
within the FTZs must pay social security contributions for their Uruguayan
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Free Ports and Free Airports
• Only free ports on South America’s Atlantic coast
• Free transit of goods, no authorizations or formal procedures
are required
• Within port facilities, goods are exempt from:
o all import taxes or charges
o all domestic taxes (e.g. VAT)
• Services rendered are exempt from VAT
• Foreign registered companies are exempt from wealth tax
and income tax
• Diverse operations may be performed on the merchandise,
including warehousing, repackaging, relabeling, classification,
grouping, ungrouping, consolidation, deconsolidation,
manipulation or fractioning as well as value adding tasks that
do not modify the nature of the product
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Regional Distribution Centers (RDCs)
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Optimal logistic location in South America’s Southern Cone where
the Río de la Plata, Paraná and Uruguay Rivers converge with the
Atlantic Ocean
Unique and favourable legal system for logistics activities:
Bonded Warehouses, Free Zones, Free Ports and Free Airports
RDCs in Uruguay allow users to:
Cut logistic costs, delays and inventories in neighbouring
countries
Store and perform diverse operations on the goods
Generate financial savings on delayed levies at final market
Uruguay boasts Latin America’s densest highway network and
excellent connectivity to neighbouring countries
Lorry time to reach main destinations: Argentina: 24hs, Brazil: 2496 hs, Chile: 72-96 hs
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Foreign Investors
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In Summary
These are exciting times for Uruguay:
• Our economy is growing
• We top many Latin American rankings
• Investments are pouring in
• We are carrying out many innovative programs
Do business with us!
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Thank You!
www.uruguayxxi.gub.uy
[email protected]