Transcript Document

Chile
A LONG-TERM
PARTNER
JORGE PIZARRO CRISTI
EXECUTIVE VICE-PRESIDENT
FOREIGN INVESTMENT COMMITTEE
A long
term
partner
A new FDI
attraction
policy
TOPICS
A land of
opportunities
Mature
business
environment
FDI in Chile:
A solid track
record
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).
SNAPSHOT OF THE CHILEAN ECONOMY
Economy
GDP 2014 (PPP)
US$264 billion (IMF)
GDP per capita (PPP, 2014)
1st
Interest rate (monetary policy)
Unemployment rate
Public foreign debt (2013)
US$23,165 (IMF)
place in Latin America
3.0% (Feb 2014)
6.1% (Dec 2014-Feb 2015)
US$24.4 billion
Exports (2014)
US$76.6 billion
Imports (2014)
US$72.3 billion
A LOW-RISK COUNTRY
Overall Risk 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-
CHILE LEADS LATIN AMERICA
Global Competitiveness Index 2014-2015
(33rd out of 144 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
35
Mexico
61
Peru
65
Colombia
66
*Selected economies.
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 in Chile: 18 are considered “established in Chile", 4 are subsidiaries of
foreign banks and one is state-owned.
•
All banks are subject to supervision by the Superintendency of Banks and Financial Institutions
(SBIF) and are governed by the General Banking Act and by regulations issued by the SBIF.
•
According to the OECD (in its latest economic review of Chile - October 2013), the financial system
remains healthy and reflects strong financial supervision.
A TRANSPARENT COUNTRY
Corruption Perceptions Index 2014
(21st out of 174 economies)*
Denmark
New Zealand
Finland
Sweden
Norway
Germany
United Kingdom
USA
Chile
Austria
France
Spain
Brazil
Peru
Colombia
Mexico
Argentina
*Selected economies. Source: Transparency International.
1
2
3
4
5
12
14
17
21
23
26
37
69
85
94
103
107
HUMAN DEVELOPMENT INDEX 2014
41ST 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
30TH 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
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 (13th 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
24 FREE TRADE AGREEMENTS WITH 62 COUNTRIES
•
14 Free Trade Agreements
•
6 Economic Complementation Agreements
•
3 Economic Partnership Agreements
•
2 Agreements under negotiation
85%
of
global
GDP
93.8%
63%
of world
population
Agreements in force
Agreements signed but not yet in force
of Chile’s
export
markets
INVESTMENT PROTECTION
Chile has investment
protection agreements and
clauses with countries that
represent
76.4%
of global GDP.
DOUBLE TAXATION AVOIDANCE AGREEMENTS
Chile has DTAAs 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$ billion
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, 2004-2014
US$ billion
28.5
23.3
22.0
19.3
16.6
13.4
13.2
7.2
7.5
2004
2005
15.5
8.8
2006
Source: Central Bank of Chile.
2007
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
ENERGY
ENERGY: CHALLENGE AND OPPORTUNITIES
5. A NEW FDI
ATTRACTION POLICY
WE ARE LOOKING FOR MORE AND BETTER FDI

That adds value to our exports.

That energizes highly concentrated markets.

That generates quality jobs and permits
development of our human capital.

That points to long-term sustainable growth.

With high quality standards and best practices.

That permits good productive linkage with
local suppliers.

Seeking innovative and technological development.

In different regions and key economic sectors.
A NEW INSTITUTIONAL FRAMEWORK
•
This year, the government presented to Congress a bill to create a new institutional
framework for the promotion and attraction of foreign direct investment (FDI) in
Chile.
•
The new framework will comprise a Committee of Ministers to advise the President
of the Republic on policy design and a Foreign Investment Promotion Agency in line
with OECD standards charged with policy implementation.
•
It includes the creation of a new agency that will focus on promoting foreign
investment in those sectors that are strategic or need to attract investment
of this type. Its powers will allow it to serve as the body that coordinates
efforts to attract investment in Chile and will include establishing a foreign
investment promotion and attraction strategy, tying in investment attraction
with country’s productive development strategy.
•
The bill recognizes foreign investors’ guarantee of access to the formal foreign
exchange market and of the right to repatriate capital and earnings whilst
safeguarding the Central Bank’s powers in this field. It also guarantees foreign
investors freedom from arbitrary discrimination.
A NEW INSTITUTIONAL FRAMEWORK
•
In addition, the bill modernizes and updates the procedure for obtaining exemption
from sales tax (VAT) on capital goods imported by foreign investors for projects under
DL 600. This modification seeks to promote the development of large investment
projects in Chile which, because of their nature, take a long time and to prevent them
from incurring high financial costs in their prior and initial stages.
•
In order to permit the players’ adaptation to the change of foreign investment
regime and in line with the Advisory Commission’s proposals, the bill stipulates
that, for a maximum period of four years, foreign investors will be able to
request authorization for their planned investments under the terms of
Article N° 3 of DL 600, with the rights and obligations envisaged in this law but
with a total locked-in tax rate of 44.45%.
•
In addition, the bill regulates the effects of contracts signed under DL 600 so as to
ensure the full application of the rights and obligations acquired by foreign investors
under this legal regime.
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]
Chile will move from a passive policy of
RECEIVING FDI…
to an active policy of ATTRACTING FDI.
“Trust, believe and invest in Chile.”
President Michelle Bachelet
www.ciechile.gob.cl
[email protected]