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Ministerio de Comercio ,

Industria y Turismo
República de Colombia

Colombia:
The transformation of a
country

Ministerio de May 2009


Comercio ,
Industria y Turismo

República de Colombia
Ministerio de Comercio ,
Industria y Turismo
República de Colombia

1)Where are we coming from?


2)
3)What are we doing?
4)
5)Where are we going next?
6)

2
The country has been growing Ministerio de Comercio ,
Industria y Turismo
steadier and faster than the República de Colombia

Latin American average Forecasts 2009


Col L.A.
2010
Col L.A.
Latin Focus 0.6 -0.8 2.4 2.3
EIU -3.0 -2.9 1.5 1.4
IMF 0.0 -1.5 1.3 1.6
GDP Growth : Colombia ( 2000 – 2008 ) % JPMorgan 0.5 - 3.0 -
Morgan Stanley -1.6 - 0.2 -
Goldman Sachs -0.3 - 2.5 -
President
Uribe RBC Capital 0.4 - 2.2 -
Markets

Source: DANE (National Accounts), DNP, EIU (Market Indicators &


Forecasts)
Note: Last update April 22th , 2009
3
3
Ministerio de Comercio ,
3
Striking performance in FDI, Industria y Turismo
República de Colombia
Exports and foreign visitors
US Million President Exports
2002 / 2008
Uribe Increases
214 %

US Million
FDI

395 %

Million of
visitors Tourism
120 %
S o u rce : D A N E , C e n tra l B a n k
( Banco de la República ), DAS
N o te : * Fo re ca st
( pr ) Preliminary

4
Ministerio de Comercio ,
Industria y Turismo
Im p o rta n t re su lts in so cia l in d ica to rs República de Colombia

President
Uribe
Unemployment
Rate fell by 4 . 2
points . 02 / 08

Poverty fell by
13 points

Income
Distribution GINI
(0= equitable
distribution; 1=high
concentration of income)
S o u rce : D N P , E stim a te s M E R P D - E N H a n d
N o te : * A ve ra g e Ja n uEaCryH-
M a rch

5
Ministerio de Comercio ,
M a rk e t C o n fid e n ce : re co v e rin g Industria y Turismo
República de Colombia
o u r in v e stm e n t g ra d e ( so o n )

Risk Debt in Foreign


Analysis Currency
Agency 2003 2008 Outlook

STANDARD BB BB+
& POOR’S

Moody’s Ba2 Ba1

BB BB+
Fitch
Source: Standard & Poor’s, Moody’s, Fitch

6
Ministerio de Comercio ,
S e cu rity h a s im p ro v e d a lo n g w ith Industria y Turismo
República de Colombia
su sta in e d e co n o m ic g ro w th

pe is simple: Democratic Security = Confidence = Investment

In 2008:
March 22th ,2007
-Investment as
proportion of GDP
went to 30%
-GDP grew 2.5%
-Murders continue
to go down

7
Ministerio de Comercio ,
Three main Colombian´s cities Industria y Turismo
República de Colombia

safer than Washington D.C.

Homicides per 100 . 000 inhabitants per year 2007

Source : Crime
Observatories

8
Ministerio de Comercio ,
Violence Levels are Industria y Turismo
República de Colombia
decreasing dramatically
President
Uribe
2002 / 2008
decreases
- 44 %

- 85 %

-50%

Source: Min. of
Defense
9
Ministerio de Comercio ,
M a rk e t Industria y Turismo
República de Colombia
C o n fid e n ce

10
Ministerio de Comercio ,
Industria y Turismo
República de Colombia

1)Where are we coming from?


2)
3)What are we doing?
4)
5)Where are we going next?
6)

11
Ministerio de Comercio ,
Tra d e a g e n d a : P re fe re n tia l a cce ss Industria y Turismo
República de Colombia

to 1 . 2 b illio n co n su m e rs
From preferential access to 233 million
consumers in 2002 to access to 1.2 billion
consumers in 2010
2002

2010

12
In 2010 , Colombia will be negotiating 19 Ministerio de Comercio ,
Industria y Turismo
International Investment Agreements ( IIA ) República de Colombia
with 39 countries and 21 Double Taxation
Agreements ( DTA ) with 22 countries
International Investment Agreements (IIA) protect investors of each State from
expropiation and discrimination before other national or foreign investors.
Additionally, these treaties establish efficient proceduresfor dispute settlement
between investors and the host country.

Double Taxation Agreements (DTA) are designed to protect investors from being taxed
twice when the same income is taxable in two States.
2002
2010

13
Second most “ business friendly ” Ministerio de Comercio ,
Industria y Turismo
country in Latin America Doing República de Colombia

Business 2007 - 2009


Two years in a row as
the first reformer in
Latin America ( 2009 )
Country Ranking Ranking
2007 2009
Chile 28 40
Colombia 79 53
Mexico 43 56
Peru 65 62
Colombi
a El Salvador 71 72
improve
Panama 81 81
d 26
positio Dominican Republic 117 97
ns in
two Argentina 101 113
years ! Costa Rica 105 117
Brazil 121 125
Ecuador 123 136
Venezuela 164 174

Source: Top reformers report. World Bank

14
The most competitive FTZ ’ s in Ministerio de Comercio ,
Industria y Turismo
Latin America : 15 % income tax República de Colombia

and allows sales to the local


market

Goods

ü15% income tax Investment in


US$ 29.81
million
And Direct
150
Jobs
üNo import duties
Services
üNo VAT tax Investment in And Direct
US$ 1.99 – 9.14
million 500
Jobs
üBenefit from international
agreements

üCan also sell in domestic market Agrobusiness Biofuels


investment or employment
Investment in Or Direct Jobs
US$ 14
million.91 500

15
Ministerio de Comercio ,
58 Free Trade Zones Industria y Turismo
República de Colombia

Number of Approved Free


Trade Zones

New FTZs in Figures

Total new Investment 5,573


Total new Direct
(USD Million ) Jobs 42,145

16
Ministerio de Comercio ,
Colombia offers legal stability Industria y Turismo
contracts to guarantee investment República de Colombia

projects .

Investments over US$1,500,000


Conditions Investor pays 1% premium based on the amount of the
investment.

Period Up to 20 years maximum.

Contrac
ts 38 legal stability contracts,
March 31st 2009
approve
d

17
Ministerio de Comercio ,
Industria y Turismo
República de Colombia

1)Where are we coming from?


2)
3)What are we doing?
4)
5)Where are we going next?
6)

18
Ministerio de Comercio ,
Country strategy for Industria y Turismo
República de Colombia
competitiveness : Focus on
global opportunities and local
strengths

World Strength
market Analysis
opportuniti Sectors Selection. for
es Colombia
identificat Filters
ion
Potential World Class Source: McKinsey
Sectors
1. BPO & O
2 . IT Services and Software
7. Automotive industry
3 . Health tourism
8 . Electric power
4 . Cosmetics and personal care products 9 . Textile , fashion & design
5 . Biofuels
10 . Infrastructure
6 . Forestry

Crisis Conclusio
ns
19
Ministerio de Comercio ,
Biofuels Industria y Turismo
República de Colombia

20
More than 6 million hectares of Ministerio de Comercio ,
Industria y Turismo
available land to develop large República de Colombia

scale projects

This land does not compromise Colombia ’ s rainforests or other


ecological reserves ..

Zones with high


potential for
ethanol
production

Zones with high


potential for the
production of palm
oil
Colombia has three times the Ministerio de Comercio ,
amount of available land to Industria y Turismo
República de Colombia
develop biofuel projects than
Malaysia
Land utilization ( Colombia vs .
Malaysia )

Sources: Food and Agricultural Organization, United Nations

22
Colombia ’ s available land Ministerio de Comercio ,
Industria y Turismo
around 90 % of current land República de Colombia

devoted to biocrops in Brazil

Land used to plant Biocrops ( million


of hectares )
Colombia has the
potential to be
one of the
countries with the
largest land
extension devoted
to planting and
harvesting of
biocrops to supply
ethanol and
biodiesel
processing plants

Source: International Energy


Agency (IEA)
Colombia ’ s sugar industry is the Ministerio de Comercio ,
most productive worldwide and the Industria y Turismo
República de Colombia
palm oil industry is the most
productive in the region

Colombia
surpasses Brazil ’ s
and Ecuador ’ s
sugar
productivity
levels by 50 % and
55 % respectively .
The sugar industry
in Colombia is a
world leader in
productivity being
able to produce 9,000
liters of ethanol
per year/ha.
In palm oil production , Colombia ’ s Ministerio de Comercio ,
productivity levels are twice Industria y Turismo
República de Colombia
those of Ecuador and surpass
Brazil ’ s by 50 %.

Colombia can produce


4,200 liters of
biodiesel per hectare
annually.

Palm oil

Palm oil process

25
Colombia has centered its Ministerio de Comercio ,
Industria y Turismo
biofuel production on sugar República de Colombia

cane and palm oil .

Energy efficiency of biocrops used in


the production of ethanol and biodiesel
barrels/ ha/ year
ETHANOL BIODIESEL

Source: Ministry of Mines and Energy according to Goldman Sachs y LMC

26
Guarantied Demand : I nternal demand is not Ministerio de Comercio ,
fully covered by local production + Law that Industria y Turismo
República de Colombia
requires the mix of biofuels with fossil
fuels E20B20 by 2020

27
Ministerio de Comercio ,
F le x ib le a n d p ro g re ssiv e le g a l Industria y Turismo
República de Colombia

fra m e w o rk re g a rd in g B io fu e ls

Single Enterprise Free Trade Zone : In Colombia new agribusiness


projects of Biofuels can be granted the status of Free Trade Zones in any
place of the country as a Single Enterprise Free Trade Zone

Investment in Million or Outsourced Jobs

USD $ 14.91 500

28
Ministerio de Comercio ,
In co m e T a x E x e m p tio n fo r 1 0 Industria y Turismo
República de Colombia
y e a rs :

Colombia offers an Income Tax exemption for new late yield crops,
like African palm, planted between 2003 and 2013. These plantations will
have a 0% income tax rate for 10 years form the moment they are planted

Palma Africana

Cultivo de Palma Africana

29
Ministerio de Comercio ,
Country strategy for Industria y Turismo
República de Colombia
competitiveness : Focus on
global opportunities and local
strengths

World Strength
market Analysis
opportuniti Sectors Selection. for
es Colombia
identificat Filters
ion
Potential World Class Source: McKinsey
Sectors
1. BPO & O
2 . IT Services and Software
7. Automotive industry
3 . Health tourism
8 . Electric power
4 . Cosmetics and personal care products 9 . Textile , fashion & design
5 . Biofuels
10 . Infrastructure
6 . Forestry

Crisis Conclusio
ns
30
Ministerio de Comercio ,
B P O &O Industria y Turismo
República de Colombia

31
Ministerio de Comercio ,
B P O & O a n d S o ftw a re Industria y Turismo
República de Colombia
tra n sfo rm a tio n p ro g ra m
m e th o d o lo g y
For  the  business  plans  the  following  methodology  will  be  applied.
Ministerio de Comercio ,
A  public private agenda will be Industria y Turismo
República de Colombia
developed to bridge gaps and 
implement  initiatives  
INITIATIVES IN FOUR AREAS
While Colombia IT Market will Ministerio de Comercio ,
Industria y Turismo
grow at a 12 % rate , the world República de Colombia

pace will be only 7 %


volution of Colombia ’ s IT Market ( US$ Million )

3000 •Global IT Market : US$750


42 % billion. Expected growth 7-8% in
2500 2.411 the next years.
•LATAM IT Market: US$47 Billion,
2000
1.936
expected grow 12.6% in 2008
1.700 Hardware
•Colombian IT Market : US$2,4
1500
Software
Billion expected growth. CAGR 2007 /
Services
991 1.013 Total IT
2012: 11%.
906
1000 811
726
839 •
•Is projected to be one of the
500
163 191 211 fastest growing IT markets in Latin
America over the next few years,
0
2005 2006 2007 Business Monitor.

Source: IDC
One of the lowest Operational Ministerio de Comercio ,
Industria y Turismo
Costs in Latin America República de Colombia

Average building rental costs


( US$ / m2 )
üSavings up to 284 % in Systems
Engineers careers
ü
üSavings up to 80 % in Internet cost
ü
üSavings up to 43 % in average building
cost

Internet cost
Source: Colliers International per month for 1Mbps
A+ and A Buildings ( megabytes per second )
  US$
Peru 81
Chile 60
Venezuela 47
Colombia 45
Argentina 45
Brazil 42

Source: CISCO Barometer


Competitive wages compared to Ministerio de Comercio ,
Industria y Turismo
the average of the IT industry in Latin República de Colombia

America

Costs for financial shared services employees


( US$ per month )
Wages + Social Security
Third lowest labor
Country Financia Economist Accountant cost in the IT
l
analyst Programer in LATAM
Chile 7.288 8.845 6.220
Costs for IT Programmer - US$
Brazil 5.974 7.250 5.097
Miles
Peru 3.601 4.372 3.074
Uruguay 19 - 21
Mexico 3.119 3.786 2.661
Argentina 19 - 21
Argentina 2.159 2.621 1.843
Colombia 25 - 27
Colombia 1.543 2.304 2.972
Costa Rica 15 - 18

Panama 18 - 20

Source: Salary Expert - Human Capital - Mexico 25 - 27


Manpower

Total savings up to 79% in Brasil 16 19

financial analyst and 74% Chile 25 - 27


in economist 0 5 10 15 20 25 30

Source: McKinsey
Availability of qualified workers Ministerio de Comercio ,
Industria y Turismo
for the IT industry República de Colombia

The highest availability of Qualified


Labor
index in Latin America , IMD 2007
( 10 = Fully available qualified work )
Colombia , leader in
(9) Colombia 6,28 information technology
Chile 5,79 engineering and business
Canada 5,69 careers graduates
P eru 5,23 Third place in number of
Mexico 4,72 university graduates in Latin
Brazil 4,41 America in 2007
# of Graduates # of Graduates
Argentina 3,58 Administration Careers IT Engineering
Brazil 55,181 10,766
0 1 2 3 4 5 6 7
Mexico 61,813 13,005
Source: The World Competitiveness
Yearbook 2008 Colombia 21,340 6,824
Argentina 18,640 4,047
Third place in number Chile 8,353 9,205
of universities Uruguay 1,032 235
registered , among the
Source: Higher Education Secretariat, Brazil; labor observatory,
major Latin America Mexico; labor observatory, Colombia; ministry of education,
countries in 2007 Argentina; ministry of education, Chile; ministry of education,
Uruguay
Source: Consejo Superior de
Investigaciones Científicas (CSIC),
organization attached to the
Ministry of Science and Technology
of Spain
Over 676 , 000 technicians Ministerio de Comercio ,
Industria y Turismo
and university graduates República de Colombia

  University Graduates
Technicians üIn 2006, up to 50 % of the
2005 2006 2005 2006 undergraduates obtained a
Business Careers 22,450 21,340 7,916 6,545 bachelor’s degree in Business
and Engineering careers
Engineering and 25,127 21,119 8,360 7,495 üOver 60% of the technicians
Architecture
Social Sciences 15,848 15,659 1,178 6,020 who graduated in 2006 belong to
Engineering andBusiness
Health Sciences 10,270 8,870 594 619
programs
Education Sciences 7,428 7,427 - -
Others 8,304 8,045 2,368 1,984
Total Colombia 89 , 427 82 , 460 20 , 416 22 , 663

Source: Ministry of Education of


Colombia
And multiple development Ministerio de Comercio ,
Industria y Turismo
centers for the IT Industry República de Colombia

Bogotá an d Medellin leaders in


administration an accounting careers
graduates in 2007
City # of Graduates # of Registered # of Graduates # of # of Graduates
1/ 2/ Economy Graduates Accountan
Careers Administratio Careers
n Careers
Bogotá 18.270 377.495 346 1.741 942
Medellín 8.256 141.202 223 693 368
Cali 5.018 78.800 177 472 221
Bucaramanga 1.998 58.452 193 139 139
Barranquilla 1.990 67.782 58 157 35
Manizales 1.566 24.546 34 1 32
Neiva 592 - 0 63 36
Armenia 531 13.495 21 49 56

1/ Total of graduates in higher Education


2/ Total of Registered in Higher Education
Only Bucaramanga show a lower
Preliminar
Source: Labor observatory unemployment rate among the major cities
in 2007
15,0%
10,5% 10,4% 10,2% 9,5% 9,1%
10,0% 7,8%

5,0% Source: Ministry of


Education of Colombia
0,0%
Manizales Medellin Cali Barranquilla Bogotá Bucaramanga

Source: DANE
Major GDP / Investment ratio for Telecom
Ministerio de Comercio ,
Industria y Turismo
Infrastructure in Latam República de Colombia

1 . 56 % in Telecommunications
investment , as a percentage of the
GDP ( 2008 ) üUS$ 4 billion, will be the investment
Colombia 1,6% in telecommunications in 2010.
Brazil 0,6% ü5 submarine cables, which have
Argentina 0,6% enabled an outlet bandwidth of 220 Gbps.
Peru 0,5%
It will be upgraded to 7 shortly with
Mexico 0,5%
CANTV-ETB.
Chile 0,40%

0,00% 0,50% 1,00% 1,50% 2,00%

Third country in terms of Internet users


Millions ( 2007 )

Brazil 43
Argentina 16
Colombia 10
Peru 7
Chile 7
Venezuela 5

0 10 20 30 40 50
Submarine cables in
Source: The World Competitiveness Yearbook 2008 - Internet Colombia
World Stats
astructure : Ministerio de Comercio ,
Industria y Turismo
com Services Providers in Colombia República de Colombia

Products and Services: Business Products and Services:


communications solutions, including IP Telecommunications services with
telephony, unified communications, cellular operations (licenses in 16
contact centers and business processes countries) and long distance calls.
Web page: www.avaya.com.co Web page: www.tigo.com.co

Products and Services: Connectivity / Products and Services: Portfolio of


data services, value added services and telecommunications services.
outsourcing. Web page: www.telefonica.com.co
Web page: www.bt.com/globalservices

Products and Services: Service provider


that offers broadband access and IP
services to telecommunications Products and Services: Portfolio of
companies and internet providers. They telecommunications services.
own 94% and are the main operators of Web page: www.telmex.com/co
the ARCOS System. page:
www.columbus-networks.com

Products and Services: IP solutions,


voice solutions, data transport
solutions, collaboration solutions, on
demand solutions, continuity solutions, Products and Services: Portfolio of
security solutions and consulting telecommunications services.
solutions. Web page: www.une.com.co
Web page: www.globalcrossing.com

Source: The World Competitiveness Yearbook 2008 - Internet


World Stats
Gartner considers Colombia as Ministerio de Comercio ,
Industria y Turismo
the Latam Challenger República de Colombia

Dominican Republic
Puerto Rico
Mexico Panama
Venezuela
Colombia

Up and comers
Peru Challenge
rs
Startups
Brazil
Chile
Uruguay
Argentina
Source:Gartner
According to Datamonitor , Colombia Ministerio de Comercio ,
Industria y Turismo
has a priveliged calification for República de Colombia

the IT Outsourcing sector as a


Tier Two Location

Category Countries Definition


Tier One Mexico, Brazil, The tree largest economies in LATAM and also
Argentina the most popular destination for IT services
and BPO vendors
Tier Two Chile, Colombia , Currently trailing Tier One locations in
Costa Rica, terms of both size and maturity, but activity
Panamá, Uruguay has increased markedley in recent years

Tier Ecuador, Not currently in the radar within the IT


Three Nicaragua, Perú industry, but have capabilities needed to
emerge as significant players

Source: Datamonitor
Colombia ’ s IT Services Industry : Ministerio de Comercio ,
Industria y Turismo
one of the fastest growing in República de Colombia

Latam . 40 % in 2 years

Subsector US$ Million Growth


2005 -
IT Services Segments 2007 2005 2006 2007 2007
Deploy and Support 241,56 275,36 326,23 35%

Consulting Outsourcing 227,01 275,64 314,12 38%

DeployandSupport Integration and 154,64 169,38 228,38 48%


33%
12%
Development
Education and Training
33% Consulting 85,24 97,32 120,14 41%
Integrationand Development 20%
Education and Training 17,92 20,94 24,4 36%
Outsourcing 2%
Total 726 , 4 838 , 6 1 . 013 , 30 40 %

Total Market Value : US$ Source: IDC


1 , 013
Ministerio de Comercio ,
Country strategy for Industria y Turismo
República de Colombia
competitiveness : Focus on
global opportunities and local
strengths

World Strength
market Analysis
opportuniti Sectors Selection. for
es Colombia
identificat Filters
ion
Potential World Class Source: McKinsey
Sectors
1. BPO & O
2 . IT Services and Software
7. Automotive industry
3 . Health tourism
8 . Electric power
4 . Cosmetics and personal care products 9 . Textile , fashion & design
5 . Biofuels
10 . Infrastructure
6 . Forestry

Crisis Conclusio
ns
45
Ministerio de Comercio ,
IT Service & Software Industria y Turismo
República de Colombia

46
Colombian software market Ministerio de Comercio ,
Industria y Turismo
growing 26 , 7 % in two years República de Colombia

Market Value in Colombia: US 270


Million *
*Software licenses+ software services
2005 - 2007
(US$
26,7% million)

Source: Fedesoft

47
Strong Infrastructure Segment for Ministerio de Comercio ,
Industria y Turismo
Security Software developments República de Colombia

Total Software Market Value in 2007 :


US$ 270 Million

Colombia , fastest growing


country in LATAM for the
Security Software market, Total
Infrastructu sales increased 40% in 2007
re
20,50%
Market Value:
Development US$ 55 Million
39,65%

Source: IDC

48
Ministerio de Comercio ,
Colombia ’ s Software Industry : Industria y Turismo
República de Colombia
Development Segment specialized in
data management
Total Software Market Value in 2007 : RDBMS and ORDBMS represent 66 % of
US$ 270 Million the Development segment
market . Growth rate of 40 % in the
last couple years
Applicatio
ns
39,85%

Development Market Value:


Infrastructu 39,65% US$ 105 Million
re
20,50%

Source: IDC

49
Colombia ’ s Software Industry : a Ministerio de Comercio ,
Industria y Turismo
growing market for Applications República de Colombia

Enterprise resource management


Total Software Market Value in 2007 : aplications biggest share of
US$ 270 Million applications software, due to
SME investment in technology

Applicatio
ns
39,85%

Market Value:
Source: US$ 106 Million
IDC

50
Number of CMMI companies will Ministerio de Comercio ,
Industria y Turismo
double by 2010 República de Colombia

The country will double the number of The number of jobs increased 40%
CMMI certified companies in 2010*

38.000
27.000 32.000

2005 2006 2007

*Program developed by SENA, Colciencias and Proexport to support 60


companies to create CMMi certification
Exports increased 15% (US$ Million)
Company Level
PSL CMMi 5
Open Systems CMMi 4
Heinsohn, Red Colombia, Avansoft, CMMi 3
Asesoftware
Softbolivar, Intergrupo,Servinte CMMi 2 26 24 30

2005 2006 2007


Source: Fedesoft - Proexport
Shifting to a higher value Ministerio de Comercio ,
Industria y Turismo
added level República de Colombia

36% of the software market in


Colombia is application development
software
Colombian SoftwareMarket(U$Million)

90
80
70
60 App Development and
Deployment
50 Applications
40 83 84
59 67 65 Infraestructure
30 51 47 65 44
20
10
0
2005 2006 2007

52
Ministerio de Comercio ,
Country strategy for Industria y Turismo
República de Colombia
competitiveness : Focus on
global opportunities and local
strengths

World Strength
market Analysis
opportuniti Sectors Selection. for
es Colombia
identificat Filters
ion
Potential World Class Source: McKinsey
Sectors
1. BPO & O
2 . IT Services and Software
7. Automotive industry
3 . Health tourism
8 . Electric power
4 . Cosmetics and personal care products 9 . Textile , fashion & design
5 . Biofuels
10 . Infrastructure
6 . Forestry

Crisis Conclusio
ns
53
Ministerio de Comercio ,
Health Tourism Industria y Turismo
República de Colombia

54
Colombian healthcare system is the Ministerio de Comercio ,
Industria y Turismo
best in Latin America an ranks 22th inRepública de Colombia
the world

Healthcare System
Overall Performance Index

Colombia ranks at the level of


Belgium and Sweden and
surpassi countries like
Germany and the United States

S o u rce : W H O T h e W o rld H e a lth R e p o rt: Im p ro vin g


Pe rfo rm a n ce

55
Solid endorsement from the Ministerio de Comercio ,
government to the health sector . Industria y Turismo
República de Colombia
Colombia dedicates 7 . 5 % of its GDP
to health

Source: Economist Intelligence Unit and World Competitiveness


Yearbook 2008

56
Colombia has a strategic Ministerio de Comercio ,
Industria y Turismo
location for international República de Colombia

patients
5 : 30 New York

3 : 00 Miami

4 : 30 Mexico City
1 : 40 Caracas

Bogotá, only 3 2 : 30 Lima


hours of flight to
Miami and 5 hours
to São Paulo and
5 : 45 São Paulo
New York City
5 : 00
Santiago

6 : 10 Buenos Aires
57
Ministerio de Comercio ,
Growth rate in U . S . outbound medical Industria y Turismo
República de Colombia
tourism is estimated at 100 % from
2007 to 2010 .
U . S . Outbound Patient Flow
Projection ( Millions )

U.S. Medical Travel trend shows the tremendous potential


for international arrivals seeking medical treatment in
Colombia

S o u rce : D e lo itte LLC

58
Medical Procedures in Colombia costMinisterio de Comercio ,
Industria y Turismo
only República de Colombia

a fraction of U . S . prices and less


than abroad
Medical Costs Comparison
Includes Procedure and Post - surgery
Treatment

Procedure Colombi United India Mexico ThailanCosta


Kidney a$25,000 States
$120,000 - $45,000 d- Rica
-
Transplant
Breast $2,600 $8,500 $2,600 $5,000 $5,700 $2,700
Augmentatio
Rhinoplasty $1,900 $6,500 $2,100 $2,800 $2,000 $2,500
n
Abdominoplasty $3,000 $8,500 $3,400 $4,500 $4,000 $4,000
Eyelid $1,700 $7,500 $1,850 $4,000 $1,400 $2,500
Surgery

Costs may vary depending on Hospital quality and infrastructure. Average prices in
medical tourism operators.
Includes not only the surgery costs but also post-surgery treatment
Proexport estimates

59
Colombian Doctors quality and Ministerio de Comercio ,
Industria y Turismo
Innovation are recognized all over República de Colombia

the world
In Colombia one took place:
The first transplant of trachea in the
world
The first transplant of bone marrow in
Latin America
The first simultaneous transplant of
kidney and pancreas in the world.
The first transplant of liver in Latin
America
The first transplant of hands and forearms
in the world.
The first pancreas transplant in South
America

In Colombia was invented:


The first heart pacemaker in the world by
Dr. Jorge Reynolds Pombo
The first synthetic vaccine against the
Malaria by Dr. Manuel Elkin Patarroyo
Hakim’s fixed pressure valve for the
treatment of Hydrocephalus by Dr. Salomon
Hakim


Also Doctors as Dr. Rodolfo Llinas, Dr.
Edgar Rey Sanabriaand Dr. Raul Cuero, enjoy
of worldwide acknowledgement for their 60
Ministerio de Comercio ,
Country strategy for Industria y Turismo
República de Colombia
competitiveness : Focus on
global opportunities and local
strengths

World Strength
market Analysis
opportuniti Sectors Selection. for
es Colombia
identificat Filters
ion
Potential World Class Source: McKinsey
Sectors
1. BPO & O
2 . IT Services and Software
7. Automotive industry
3 . Health tourism
8 . Electric power
4 . Cosmetics and personal care products 9 . Textile , fashion & design
5 . Biofuels
10 . Infrastructure
6 . Forestry

Crisis Conclusio
ns
61
Ministerio de Comercio ,
Cosmetics and Personal Care Products Industria y Turismo
República de Colombia

62
Colombia leader in biodiversity in Ministerio de Comercio ,
Industria y Turismo
the World República de Colombia

Exisiting Plants Species


56.215 51.220
26.071 17.144 9.372

Brazil Colombia Mexico Peru Argentina

ProtectedAreas
(%Total Area)
8,6%
3,9% 3,1% 2,1% 0,6%

Colombia Brazil Peru Argentina Mexico

Protection of Intellectual Property Rights


Scale/10
4,50 4,31 3,54 2,88 2,58

Colombia Brazil Peru Argentina Mexico

Fuente: Earth Trendsy IMD, World Competitiviness Year Book, 2008


63
Ministerio de Comercio ,
Third market in Latin America Industria y Turismo
República de Colombia

The Latin American cosmetics sector moved close to US$ 19,000 million in 2006.

Approximately Sales in Cosmetics sector


US$Million
8.041
2006

4.100 2007
1.715 1.475
1.460 1.228 1.0741.181

Brazil Mexico Colombia Argentina Peru

Fuente: Abihpec (Br), IVEX (Mex), ANDI (Col), CAPA (Arg), Panel
de Consumidores de Cosméticos , proyecciones andina(Pe)

64
Available workforce : More than Ministerio de Comercio ,
Industria y Turismo
242 , 000 professionals and República de Colombia

technicians
More than 242,000 professionals and technicians are
available to work in the cosmetic sector with a growth
in the last two years of 14%

Education in the Cosmetic Sector


2005 - 2007

AREA OF EDUCATION 2005 - 2007


Chemical Technicians 299
Chemical Engineers 1.517
Medicine 9.142
Other University Graduates 194.428

Other Technical Graduates 36.867

* Universities and Institutions have not reported the


complete data of the different careers for 2007.
Source: Ministeryof Education - Labor Watch

65
Available workforce : Latin Ministerio de Comercio ,
American Leaders in labour Industria y Turismo
República de Colombia
pool

University student’s interest in chemical engineering has lead


to an expansive labour pool in this field

Science in Schools
Scale/10
4,4
3 2,93 2,64 2,3

Colombia Brazil Peru Mexico Argentina

Youngth interested in Science


Scale/10
4,35 3,86 3,62
2,75 2,5

Colombia Brazil Peru Mexico Argentina

Source: IMD, World Competitiviness Year Book, 2008

66
Colombia´s best asset is its humanMinisterio de Comercio ,
Industria y Turismo
capital . República de Colombia

Colombia is among the countries in Latin America with high standards in


education.

Number of Chemical Engineering Faculties


2008 With less than half the
population of Mexico and
6
Brazil, these countries
5 5 have approximately the
4 same number of chemical
engineering faculties
within the top 100

Mexico Brazil Argentina Colombia Peru

S o u rce : R a n kin g S h a n g h a iJia o To n g U n ive rsity , La tin A m e rica n


A sso cia tio n o f C h e m ica lE n g in e e rs stu d e n ts

67
Ministerio de Comercio ,
Industria y Turismo
Colombia becoming a net exporter República de Colombia

Increased national productivity is evidenced by the change in the cosmetics sector


trade balance
Exports e Imports of Cosmetics
US$ Thousand
413.445
Exportaciones Importaciones
375.096

299.650
248.118 309.845 362.770
221.570 219.126
243.504
186.568
150.206 144.839

2002 2003 2004 2005 2006 2007

By 2008 , Cosmetics
Source: Ministerio de Comercio, Industria y Turismo, DANE exports reached US$
496 . 394 thousand at
nominal values .

68
Highest female labour force Ministerio de Comercio ,
Industria y Turismo
participation in Latin República de Colombia

America

“Colombian women spend twice as much as European women as a ratio on their


income”. Spanish Embassy in Bogota

Women'sparticipationinthelabor market
2007(%)
44,6%
44,3%

42,4%
41,9%

39,9%

Colombia Brazil Mexico Peru Argentina

Source: INDEC (Instituto Nacional de Estadística y Censos de Argentina) IBGE (Instituto Brasileño de Geografía
y Estadística de Brasil), DANE (Departamento Administrativo Nacional de Estadísticas de Colombia), INEGI
(Sistema Nacional de Información Estadística y Geográfica de México), Ministerio de Trabajo y Promoción del
Empleo de Perú. Cálculos PROEXPORT.

69
Ministerio de Comercio ,
24 % growth in just 5 years Industria y Turismo
República de Colombia

Since 2003, its annual growth rate has averaged 7.2%, with production increasing
from US $1,904 million in 2003 to $2,370 million in 2007, cumulative growth of
24.5%.

Colombian Cosmetic Production


US $ Million ( 2003 - 2007 )
2.370
2.257 Vanit cosmetics productsand
2.042 perfumes
1.904 1.912

Personal HygieneProducts

of cleaning products

TOTALMiles USD

2003 2004 2005 2006 2007

Fu e n te : D A N E D e p a rta m e n to A d m in istra tivo N a cio n a ld e E sta d ística s


2 0 0 3 – 2 0 0 5 , A N D I A so cia ció n N a cio n a l d e E m p re sa rio s d e C o lo m b ia
2006 – 2007.
70
Ministerio de Comercio ,
Colombia emerges as the country with Industria y Turismo
República de Colombia
the greatest potential

Competitive Labor force


5
Participation of women in 4 Chemical Engineering
the labor market 3
Schools
2 Argentina
1 Brazil
Intellectual Property
Labor law 0 Colombia
Rights
Mexico
Peru
Young People interested
Existing Plants
in Science

Protected Areas

Argentina Brazil Colombia Mexico Peru

Potencialidad 14 28 36 23 21

71
Ministerio de Comercio ,
Country strategy for Industria y Turismo
República de Colombia
competitiveness : Focus on
global opportunities and local
strengths

World Strength
market Analysis
opportuniti Sectors Selection. for
es Colombia
identificat Filters
ion
Potential World Class Source: McKinsey
Sectors
1. BPO & O
2 . IT Services and Software
7. Automotive industry
3 . Health tourism
8 . Electric power
4 . Cosmetics and personal care products 9 . Textile , fashion & design
5 . Biofuels
10 . Infrastructure
6 . Forestry

Crisis Conclusio
ns
72
Ministerio de Comercio ,
Forestry Industria y Turismo
República de Colombia

73
17 millions hectares ( 42M Ministerio de Comercio ,
Industria y Turismo
acres ) suited for timberland República de Colombia

Department No restrictions With lower Department No With Lower


( Ha ) restrictions ( Ha ) restriction Restrictions
s ( Ha ) ( Ha )
Antioquia 1.477.221 2.137.309
CORPORINOQUIA ( Jurisdiction )
Atlántico (*) 35.820 40.152
Arauca   930.025
Bolívar (*) 355.475 94.177
Boyacá 2.892 2.877
Caldas 22.420 146.284 ( jurisdic .)
Cauca ( Cuenca alta 90.227 182.036 Casanare 24.295 1.705.973
río ) Meta 339.403 2.604.763
Cesar 376.935 392.104
Vichada 467.834 2.128.105
Córdoba 189.753 233.770 Total 5.127.650 12.185.356
Cundinamarca 150.116 150.887
Huila 50.022 163.283
Magdalena (*) 500.166 194.942
Nariño 365.621 295.872
Total Areas Suited
Santander 281.353 451.824
for Timberland
Sucre 136.263 167.934 17 . 313 . 006 hectares
Tolima 229.705 145.193
Quindío 32.130 17.846

Source: CONIF 2008

74
The Industry is Only Using Ministerio de Comercio ,
Industria y Turismo
1 . 5 % of the Forestry Potential República de Colombia

in Colombia

Colombia has 17 million hectares (42 million acres)


with soil suited for forests, but today 1.5% of that
potential (253.066 hectares – 625.326 acres) is in
use.

Source: CONIF.- MADR

75
The National Forestry Ministerio de Comercio ,
Industria y Turismo
Development Plan ( PNDF) República de Colombia

An Strategic View of the sector to 2025

§The development of the forestry sector is a long term


national plan. The goal is to have 1.3 million planted.

§To 2025 the sector will incorporate significant


involvement from the farming sector, employment generation
by incorporating sustainable use practices and the
management of native and planted forest.

76
Three potential regions for Ministerio de Comercio ,
Industria y Turismo
forestry development in República de Colombia

Colombia
Caribbean and
Upper Magdalena :
Altitudes 300-2500
ft asl
Species: Teak,
Melina, Ceiba,
Eje Cafetero and Acacia and
South West Region: Eucalyptus
Altitudes 3500–7000
ft asl
Species: Oak, Nogal,
Cedar,
Eucalyptus and Pine.
 

Priority
Department Orinoquia Region :
s Altitudes 300 – 1600
ft as l
Municipal Species: Eucaliptus
Districts and Pine.
with the Pacific Ocean
largest
planted
area
Source: MADR

77
More than 10 high value added Ministerio de Comercio ,
Industria y Turismo
commercial timber species República de Colombia

In Colombia commercial timber species need less time


to grow. Thus, operations can be more productive than
in other countries. For example, the Eucalyptus has a
yield of 30 m3/ha per year in an 8 years turnover.

Scientific Name Commun Name Yield ( m3 / ha / year ) Turnover


( years )
Eucalyptus grandis Eucalyptus 30 8
Acacia magnium Acacia 26 – 30 12
Bombacopsis quinata Ceiba Tolua 27 14
Cordia alliadora Laurel 25 – 28 20
Eucalyptus globulus Eucalyptus 15 – 35 8 – 12
Cedrela odorata Cedar 20 – 25 18
Gmela arborea Melina 20 – 25 10
Eucalytus pellita Eucalyptus 20 12
Eucalytus Eucalyptus 20 40.155
tereticornis
Schizolobium Brazilian Firetree 13 16
parahybum
Tabebuia rosea Pink Trumpet-Tree 8 – 15 25
Tectona grandis Teak 7 – 10 25 – 28
Cariniana pyriformis Colombian Mahogany 7 20

Source: MADR

78
In Colombia , consumption of raw Ministerio de Comercio ,
Industria y Turismo
timber has increased , supplied República de Colombia

for the most part by imports


Between 2006 and 2007, consumption of lumber, wood board
and paneling, and chips rose 7%. For the same period,
pulp consumption rose 3%. This increase has been fueled,
in large part, by imports of these materials.

Colombia - Trade Balance


( Exports - Imports ) ( M 3 )

Source: FAO. Proexport Statistics

79
High yields in softwood and Ministerio de Comercio ,
Industria y Turismo
hardwood timber República de Colombia

Species Country Turnover Yield - IMA


( years ) ( M3 / ha / year )

Softwood In Colombia, it is
P . tecunumannii Colombia 16 30 – 40 possible to obtain
P . radiate Chile 20-25 10 – 25 more than three times
Pinus spp . Uruguay 20 16 – 23 the yield in softwood
timber than Chile and
P . patula Colombia 16 20 – 30
twice that of Uruguay.
Pinus spp . Brazil 15 – 20 16
Pinus spp . E.U.A (South East) 25 10 – 15
Hardwood
In hardwood timber,
E . híbridos Brazil 7 45 Colombia followed
E . grandis Colombia 7 30 – 40 Brazil with the second
Eucalyptus spp . Uruguay 8 – 10 27 – 30 highest yield with 30
m3/ha per year for a 7
E . globulus Chile 10 – 12 20 – 30
year turnover.
E . globulus Portugal 8 – 10 12

Source: CONIF 2002, CENPAPEL 2003

80
Higher yield in four Ministerio de Comercio ,
Industria y Turismo
species than in República de Colombia

competing countries
As a result of climatic conditions,
biotechnology and genetic enhancement,
several species produce higher yields in
Colombia than in competing countries.
Species Yield Yield other Countries
Colom bia countries
( m3 / ha / year ) ( m3 / ha / year )

Acacia 26 – 30 8 – 19 Philippines, Malaysia, Haití,


India, Thailand, Indonesia,
Panama

Teak 15 – 20 10 – 12 Philippines, India, Indonesia,


Malaysia,
Myanmar, Nigeria, Tailand

Eucalypto 20 – 30 16 – 25 Argentina, Chile, Uruguay

Melina 20 – 25 12 – 19 Bolivia, Brasil, Costa Rica,


Philipines,

Source: CONIF FAO

81
Ministerio de Comercio ,
Real Pre - Tax Rate of 10 . 6 % to Industria y Turismo
República de Colombia
12 . 6 %

Region Range Real % In Colombia, it is possible to


achieve a real pre-tax rate
Brazil 8-12% (less inflation) of 10.6% to
12.6% for a forestry
Chile 10.5-14.5% investment
Colombia 10.6-12.6%
Specie IRR % Harvesting Net Income
Uruguay 6.5-8.5% s Age ( years ) from Wood
Eucalip 12 7 1( US$Ha
.388 )
Central América 10.8-15% tus
14 2.145
21 5.130
Source: Forisk Consulting 2005.
Teak 14 12 2.804
17 5.592
In terms of yield, the financial 21 12.906
evaluation made for the Magdalena
Region gives an IRR of 12% for
Eucalyptus and 14% for Teak.
*Income from the sale of timber stands,
depending on potential use (chips, rods,
post, sawn timber).
Source: CONIF

82
Ministerio de Comercio ,
Legal Incentives for Industria y Turismo
República de Colombia
Sector Investors

Permanent Income Tax Exemption


New forestry fields will be income tax exempt. This
exemption has no term. Additionally, sawmills related to new
forestry projects will be income tax exempt.

Forest Incentive Certificate (CIF)

The CIF is the monetary subsidy that recognizes 50% of the


investment for an introduced species and 75% for an
investment in autochthonous species to finance the
establishment and maintenance (from the second to the fifth
year) of new forest plantations. The CIF is neither
compatible with the tax benefits nor with other subsidies
from the government. For 2009, the government has $15
billion COP ($6.8 million USD) to subsidize reforestation in
Colombia.

83
Ministerio de Comercio ,
Country strategy for Industria y Turismo
República de Colombia
competitiveness : Focus on
global opportunities and local
strengths

World Strength
market Analysis
opportuniti Sectors Selection. for
es Colombia
identificat Filters
ion
Potential World Class Source: McKinsey
Sectors
1. BPO & O
2 . IT Services and Software
7. Automotive industry
3 . Health tourism
8 . Electric power
4 . Cosmetics and personal care products 9 . Textile , fashion & design
5 . Biofuels
10 . Infrastructure
6 . Forestry

Crisis Conclusio
ns
84
Ministerio de Comercio ,
Electric Power Industria y Turismo
República de Colombia

85
Ministerio de Comercio ,
An efficient sector structure Industria y Turismo
República de Colombia

“Colombia is one of the few countries in Latin America to have


successfully implemented a wholesale electricity market”. Business
Monitor

Ministry of Mines and Energy Colombia’s


Politics Presidency

Ministries
Regulation Regulatory Commission of National
Energy and Gas - CREG Planning
Commissioners

Market Users and Agents

Control Colombia’s
and Presidency
Monitoring Superintendent of Public
Services Home
The energy market in Colombia is Ministerio de Comercio ,
Industria y Turismo
composed by five types of República de Colombia

companies regulated by the CREG

Generators
44 Companies

C R
Transmitters
11 Companies EDistribution
23 Companies
G Marketing of goods
or supply
75 Companies

Short
Regulat Term
ed Operation
Customers Not and
Board
Long
Regulat Administrat Term
ed Bilatera
ion
l
Contract
s
87
Ministerio de Comercio ,
1 stin energy infrastructure Industria y Turismo
República de Colombia
in Latin America ( IMD 2008 )

Colombia ranks 24th and 32th in world ranking of Energy Infrastructure


and Future Energy Supply. Venezuela ranks 42th and 32th

Energy Infrastructure Future Energy Supply


Energy Infrastructure is Future energy supply is
adequate and efficient adequately ensured

Source: World Competitiveness Center – IMD 2008

88
14 , 5 GW of installed capacity , mainly
Ministerio de Comercio ,
Industria y Turismo
from hydroelectric plants . República de Colombia

Although Colombia has an important installed capacity, It has


many resources to increase the energy generation even to export
another countries

Generation Installed Generation


Share Capacity Share
(Average) (Scarcity)

Source: Los expertos en mercados, Association of Power


Exchanges. APEX Conference, Sydney Australia, October 2008.
Ministerio de Comercio ,
Fourth country with the largest Industria y Turismo
República de Colombia
hydro capacity in the world

Hydroelectric
Potential
üColombia ranks 33th in
Higher
world ranking of access
Upper- to water and second in
medium
Lower
L.A.
-medium ü
Low ü742,725 watersheds
Lowest
ü
üFlow of 52,075 m3 /seg
per year
ü
üAnnual rainfall :3,000
mm
ü
üPrecipitation of 1,313
km3
ü
üYield: 58 lt/seg/ km2
Source: Sistema de Información de
Eficiencia Energética y Energías
Alternativas
90
Six Colombian states above 1 , 200 Ministerio de Comercio ,
Industria y Turismo
Kwh / m2 / year and 3 states above República de Colombia

1 , 600 kwh / m2 / year .


Map of Global Solar
Radiation
Average multi - anual
Colombia has a great
opportunity to generate
clean energy for its
geographical position and
diverse climatic
conditions. Average daily
of 4.5 Kwh/m2.
Solar Energy
Kwh/m2/year ] 2.190
[Guajira

Costa 1.825
Atlántica
Orinoquia 1.643
Amazonia 1.551
Andina 1.643
Costa 1.278
Pacífica

Source: Atlas de Radiación Solar


de Colombia
More than 300 hot springs Ministerio de Comercio ,
Industria y Turismo
deposits República de Colombia

Stock of Hot Springs in Map of Potential


Parameters NColombia
° Location Temperature
Geothermal
Thermal Areas 298 Cundinamarca
- Boyaca
>200
Chemical 178 Nevado del 240-260 C° 150-200
Characterizatio Ruíz 130-150
100-130
n
Water neutral 17 Purace 220 C° 90-100
80-90
colors 70-80
Bicarbonate 102 Doña Juana 200 C° 60-70
50-60
40-50
10-40
Sulphate 37 Azufral 230 – 250 C° <10

Parameters N° Surface Maximum


Temperatur Temperature
Sulphated 24 e -50°C
30 115
waters
Presumption of 6 50-70°C 43
magnetic
contributionof 29
Presumption 70-95°C 15
deep fluid
contribution

Source: Utilización de la Energía Geotérmica – UPM


92
M o re th a n 7 re g io n s sh o w e d w in d Ministerio de Comercio ,
Industria y Turismo
in te n sitie s e q u a l o r g re a te r th a n 5 República de Colombia

m / se g th ro u g h o u t th e y e a r
üPotential of wind power: Peninsula de Average wind speed at
La Guajira, San Andres Island, Boyacá surface
and central sectors of the Caribbean
Coast
ü16 sites to use the wind Resource
Sites Period Speed

Galerazamba (Bolivar), All year 5 m/seg


Gachaneca (Boyacá) and
SanLegiosa
La Andrés (Huila
Caribbean
), ) All year 4 – 5
Providencia (San m/seg
Andres ) and Riohacha
Villacarmen (Boyacá), Certain times
(Guajira )
Obonuco or hours of
(Nariño ), Cúcuta y the year
Ábrego (Norte de
Santander), Urrao
(Antioquia ), Soledad
(Atlántico ), Santa
Marta (Magdalena),
Bucaramanga
(Santander ), Anchique
(Tolima ), Bogotá
(Cundinamarca )

S o u rce : A tla s d e V ie n to y e n e rg ía e ó lica d e


C o lo m b ia
93
Ministerio de Comercio ,
Country strategy for Industria y Turismo
República de Colombia
competitiveness : Focus on
global opportunities and local
strengths

World Strength
market Analysis
opportuniti Sectors Selection. for
es Colombia
identificat Filters
ion
Potential World Class Source: McKinsey
Sectors
1. BPO & O
2 . IT Services and Software
7. Automotive industry
3 . Health tourism
8 . Electric power
4 . Cosmetics and personal care products 9 . Textile , fashion & design
5 . Biofuels
10 . Infrastructure
6 . Forestry

Crisis Conclusio
ns
94
Ministerio de Comercio ,
A p p a re ls a n d Te x tile P ro d u cts Industria y Turismo
República de Colombia

95
Ministerio de Comercio ,
O v e r 1 0 0 y e a rs o f Industria y Turismo
República de Colombia
e x p e rie n ce a n d
d e v e lo p m e n t
Medellin one of the developed
cities in Colombia and the core
of Colombia textile market .

ØColtejer(founded in 1907), Tejicondor


and Fabricato (founded in 1920
and they made a fusion in 2002
as one) sell and trade textiles and
apparels for local and international
markets.
Ø
ØTextile market in Colombia is well set
up:
production accounts for 11 % of
manufacturing production
and 1 . 7 % of GDP.

ØColombia has nearly 531 textile


mills.
Ø

96
Ministerio de Comercio ,
C o lo m b ia p ro d u ce s h ig h q u a lity o f Industria y Turismo
República de Colombia
a p p a re l a n d sh o w s a p o te n tia l m a rk e t
in p ro d u ctio n o f fib e rs , y a rn s a n d
th re a d s
Textile products´ shares of total value
of textile market

Source: National Department of Statistics, DANE

97
T h e m a in ca tw a lk s o f Ministerio de Comercio ,
Industria y Turismo
L a tin A m e rica ta k e p la ce in República de Colombia

C o lo m b ia


Colombia has become one of the main


fashion centers in Latin America, featuring
trade shows such as Colombiatex and
Colombiamodawhich bring together
recognized companies from many countries
around the world.

98
Colombia has the Ministerio de Comercio ,
Industria y Turismo
infrastructure to produce República de Colombia

and export fibers , yarns ,


woven and apparels
Textile industry
production grew by 13 %
(US$ 2,117 million) between
2006 and 2007.

There are more than 800,000


direct and indirect jobs and it
represents 12% of the total
labor force provided by the
manufacturing Industry.

Textiles exports´ share is


7% of the total exports
in 2007 and 12%
of non traditional
exports.

99
Colombia mainly imports raw products
Ministerio de Comercio ,
Industria y Turismo
and exports finished textiles República de Colombia

Imports of raw products to textile sector accounted 34% of the


total cost, while 15% of the total sales was exported.

Textile size market in Colombia 2007


Total production to sell US$ million

Domestic Exports* Total


Consumption
2,590 457 3,047
Production costs US$ million
Local inputs Imported** inputs Total
1,864 957 2,821

* FOB prices
** CIF prices
Source: Department of Societies (Superintendencia de Sociedades) and
National Department of Statistics, DANE

100
Ministerio de Comercio ,
Industria y Turismo
Artificial fibers show good República de Colombia

performance in sales

Products sales´ share of total


sales in 2006 (%)

By 2006, the textile and


apparel sales value was
US$ 3,322 million, where:

Source: DANE Encuesta Manufacturera


Exchange rate: Col$ 2,361 per dollar

101
th e U n ite d
S ta te s Ministerio de Comercio ,
Industria y Turismo
República de Colombia
m a in b u sin e ss
p a rtn e rs o f
C o lo m b ia Textiles and apparel exports - destination 2008
Venezuela is the main destiny of Colombian textile and
clothing exports with a 60% of total share, followed by the
United States with 15%.

million
Exports 2008 $ 2 , 088

Source: DANE

102
Exports are mainly concentrated Ministerio de Comercio ,
Industria y Turismo
on value added garments República de Colombia

Textiles and apparels – categories 2008

ØThe main textiles exported were knitted


and crochet fabrics.

ØThe main confections exported were


$ 2 , 088 Million
men´s and boys´ trousers.
Total Exports 2008

Source: DANE

103
Ministerio de Comercio ,
Colombia exports are oriented Industria y Turismo
República de Colombia
to apparel products

By 2008, textile and apparel exports accounted 12% of the total


non-traditional exports and 2.8 % of total exports. Mostly
knits, denim, jeans and cotton t-shirts were exported.

Exports US$ million

Source: DANE - PROEXPORT

104
Ministerio de Comercio ,
C o lo m b ia sh o w s co m p e titiv e g e n e ra l Industria y Turismo
República de Colombia
w a g e s in L a tin A m e rica

US$ per Month

Colombia has a qualified and


competitive human capital


resource in terms of costs.

F: E stim a te
F: Fo re ca st
S o u rce : E IU ,
2009
105
C o lo m b ia sh o w s co m p e titiv e Ministerio de Comercio ,
Industria y Turismo
República de Colombia
w a g e s in its re g io n

 SENA’s (National
Education Service
Organization) works
out to teach and
encourage the
technical and
technological
education through
free learning
programs in diverse
disciplines.

Fu e n te : W e rn e r In te rn a tio n a l, 2 0 0 7

106
Ministerio de Comercio ,
Colombian workers productivity outstands Industria y Turismo
República de Colombia

in the region

Colombia is on second place in


workers productivity in 2009
according with EIU. The
following are the criterions:

 Number of strikes through


year.

 Workers productivity

E sca le : 10 : good – 0 : bad .


S o u rce : E IU ( E co n o m ist In te llig e n ce U n it)
2009.
107
Ministerio de Comercio ,
Country strategy for Industria y Turismo
República de Colombia
competitiveness : Focus on
global opportunities and local
strengths

World Strength
market Analysis
opportuniti Sectors Selection. for
es Colombia
identificat Filters
ion
Potential World Class Source: McKinsey
Sectors
1. BPO & O
2 . IT Services and Software
7. Automotive industry
3 . Health tourism
8 . Electric power
4 . Cosmetics and personal care products 9 . Textile , fashion & design
5 . Biofuels
10 . Infrastructure
6 . Forestry

Crisis Conclusio
ns
108
Ministerio de Comercio ,
A u to m o tiv e Industria y Turismo
República de Colombia

109
Ministerio de Comercio ,
Colombian production , 36 th in the World Industria y Turismo
República de Colombia
Ranking

World Ranking production Production and sales in


Automotive ( 2006 - 2007 ) Unit Colombia ( 2008 )

Rank. Country 2006 2007 % Growth 2 2 9.30 4


1 Japan 11.146.162 11.072.529 -1% 181 .9 41
1 52.315
2 USA 10.813.135 10.500.317 -3% 116.3 93
3 China 6.679.256 8.032.913 20%
4 Germany 5.313.032 5.712.062 8%
5 Korea 3.776.673 4.012.642 6%
20 07 2008
6 France 3.156.569 2.986.769 -5% P ro d u c tio n S a le s

7 Spain 2.717.805 2.901.486 7%


8 Brazil 2.277.970 2.649.851 16%
The production and sales in Colombia
9 Canada 2.496.659 2.542.150 2%
fell in 2008 as a result of a high fuel
10 Mexico 1.934.560 1.981.150 2% prices, increased interest rates,
...36 Colombia 136.640 181.941 33% reduced overall demand for imports
37 Venezuela 155.239 155.799 0%
(depreciation of the peso) and the
Effect of the global financial crisis in
...41 Ecuador 50.235 58.968 17%
the last quarter 2008.
...43 Chile 5.389 9.084 69%

Source: Statistical Yearbook 2008, Ministry of Transportation – Ministry of transportation Peru


(MCT) – Acolfa 2008
110
Not including last year, the automotive
Ministerio de Comercio ,
Industria y Turismo
República de Colombia
industry has experienced a sustained
growth during the last 5 years
Domestic Market ( Units )

300.000
2002 - 2008
increases 250.000
 200.000
Production
increased by 45%. 150.000

Unit sells: 140% 100.000

50.000

0
2002 2003 2004 2005 2006 2007 2008
Production 79.921 62.816 93.547 109.333 138.690 181.946 116.393
Exports 23.124 9.357 28.396 41.899 48.654 70.593 26.472
Imports 33.595 34.707 55.688 78.196 112.173 151.117 126.626
Apparent consumption 90.392 88.166 120.839 145.630 202.209 262.470 216.547

S o u rce : C o lo m b ia n A sso cia tio n o f A u to Pa rts M a n u fa ctu re rs ( A C O LFA b y its


a cro n ym in S p a n ish ) 2 0 0 8

111
Ministerio de Comercio ,
Industria y Turismo
T h e C o lo m b ia n M o to r V e h icle fle e t República de Colombia

h a s g ro w n 3 6 % sin ce 2 0 0 2
Motor Vehicle Fleet Evolution ( units )
6000000

5000000

4000000

3000000

2000000

1000000

0
2 002 2003 2004 2005 2006 2007 2008

Total Motor Vehicle Fleet : 5 . 300 . 769 units


During the past year , 349 . 544 new units entered to
the Motor Vehicle fleet

S o u rce : S ta tistica l Ye a rb o o k 2008, M in istry of


Tra n sp o rta tio n
112
L a rg e O E M ’ s co n sid e r C o lo m b ia a s Ministerio de Comercio ,
its ce n te r o f Industria y Turismo
República de Colombia
p ro d u ctio n a n d e x p o rts fo r th e
A n d e a n re g io n

GM Colmotores’ production plant in Bogota


generates 57 thousand units per year in order to
fulfill the local market and exports.

Sofasa Renault produces 40 thousand units per


year in its plant located in Medellin, Antioquia.


The CCA produces over 19 thousand units of


Mazda, resulting the only CKD plant for the region.


Hino Motors’ brand new production plant will


generate 4 thousand units in Bogotá for the region.

113
T h e d y n a m ism o f th e a u to m o tiv e Ministerio de Comercio ,
in d u stry h a s m o tiv a te d th e g ro w th o f Industria y Turismo
República de Colombia

th e a u to p a rts in d u stry in th e la st
y e a rs

US$ Thousand

2.500.000

2.000.000
During 2006 and 2008 the

1.500.000 Colombian exports of auto


parts increased by 46%,
1.000.000 increasing from U$355
million to
500.000
U$ 518 million.

0
2002 2003 2004 2005 2006 2007
Exports 156.569 150.359 166.715 274.116 355.837 503.739
Imports 905.228 916.620 1.397.744 1.524.663 1.690.109 2.238.304

Source: Colombian Association of Auto Parts Manufacturers


(ACOLFA by its acronym in Spanish), 2008

114
The national production of auto Ministerio de Comercio ,
Industria y Turismo
República de Colombia
parts has increased in order to fulfill
the needs of the local assemblers

Purchase of national auto parts U$


Thousand
OEM ’ s like General
Motors , Renault and
Mazda annually purchase
over U$600 million in auto
parts to local producers,
in order fulfill the
requirements made by trade
agreements.

Source: Colombian Association of Auto Parts Manufacturers (ACOLFA by its


acronym in Spanish), 2008

115
Excellent geo-economic position in Ministerio de Comercio ,
Industria y Turismo
República de Colombia
order to serve other regional
markets

Due to Commercial Agreements and FTAs , we have access to a


Motor Vehicle Fleet of over 37 million units

Motor Vehicle Fleet ( 2007 ) Volume of Vehicles Production +


Imported ( 2007 )
Ecuador 1.100.000 2.500.000

Perú 1.442.700
2.000.000

Chile 2.599.425
1.500.000

Venezuela 3.537.902
1.000.000

Colombia 4.432.684
500.000
México 24.970.879
0
Mexico Ecuador Venezuela Colombia

Production Imports

Total Motor Vehicle Flee Colombia 2008: 5.300.769 units

Source: INEGI, Mexico. CIDATT, Peru. AEAD, Ecuador. INE, Chile. Transportation Institute of Venezuela. 2006
Source: ACOLFA 2008

116
Well - known auto parts Ministerio de Comercio ,
Industria y Turismo
companies are established República de Colombia

in Colombia

Michelin and Goodyear produce in Colombia.


Yazaki Ciemel produces installations and electric cables


for the automotive industry. Its plant is located in the Free
Trade Zone of Bogotá.

Saint Gobain has two production plants, one of them is


located in Barranquilla where panoramic glass, laterals,
laminated and template for vehicles are produced.

Espumaltex is a company that manufactures polymerized


products for the automotive industry.


IMAL produces leaf spring, coil springs, security seatbelts,


noiseless coil springs and parabolic springs, within others.


Thermoform S.A. produces door panels, transmission


covers, interiors and consoles, within others.

117
Important motorcycle brands are Ministerio de Comercio ,
Industria y Turismo
currently produced in Colombia República de Colombia

118
Deposits enabled for transformation or Ministerio de Comercio ,
assembly assure free custom duties for auto Industria y Turismo
República de Colombia
parts and materials (updated adaptation with
FTZ regime)
 For automotive and auto parts transformation and assembly operations, the Transformation
or Assembly Deposits (DHTE by its acronym in Spanish) of final goods established in the
Andean Automotive Agreement:

 - 0% custom duties on auto parts, raw materials and


materials that enter to the DHTE

- 0% custom duties for the imports made by


 members of the Andean Automotive
 Agreement of produced or assembled
 vehicles, as well as production of auto
 parts and materials produced in
 deposits that fulfill the requirements.

S o u rce : C o lo m b ia n A sso cia tio n o f A u to Pa rts M a n u fa ctu re rs ( A C O LFA b y its a cro n ym in S p a n ish ), 2 0 0 7

119
Ministerio de Comercio ,
Qualified and competitive cost for Industria y Turismo
República de Colombia
human resources

R e m u n e ra tio n o f th e Estimate wages of the


m a n u fa ctu re se cto r workers of the automotive
( wages + benefits ) U$ / industry , 2007
U$ / Hour
H our

S o u rce : T h e W o rld C o m p e titive n e ss Ye a rb o o k


2 0 0 7 -IM D

120
Ministerio de Comercio ,
Country strategy for Industria y Turismo
República de Colombia
competitiveness : Focus on
global opportunities and local
strengths

World Strength
market Analysis
opportuniti Sectors Selection. for
es Colombia
identificat Filters
ion
Potential World Class Source: McKinsey
Sectors
1. BPO & O
2 . IT Services and Software
7. Automotive industry
3 . Health tourism
8 . Electric power
4 . Cosmetics and personal care products 9 . Textile , fashion & design
5 . Biofuels
10 . Infrastructure
6 . Forestry

Crisis Conclusio
ns
121
Ministerio de Comercio ,
Tourism Industria y Turismo
República de Colombia

122
Ministerio de Comercio ,
Infrastructure Industria y Turismo
República de Colombia

123
Ministerio de Comercio ,
Infrastructure Industria y Turismo
República de Colombia

US $ 1.4 Bn, 8%
US $ 1.7 Bn, 9%
US $ 1.2 Bn, 6%

US $ 2.4 US $ 11.8
Bn, 13% Bn, 64%

Minning and energy Transportation Urban Transportation

Telecommunications Water utilities

US $ 18 , 6
Bn
124
Ministerio de Comercio ,
Infrastructure Industria y Turismo
República de Colombia

US $ 18 , 6 Bn

Source: DNP estimates.

125
Ministerio de Comercio ,
Infrastructure Industria y Turismo
República de Colombia

•Road Concessions
•Airport Concessions.
Transport •Railroad Concessions.
•Urban transport.

Mines & Energy •Energy company´s stock sales

•Search for strategic operator for postal


Telecomunicaciones services
•Improvement of tv and radio networks.
•Telecommunication improvements for San
Andres and other rural areas.

•CDM projects.
Housing , water & sanitation
•Housing mega-projects.
•Residual waste treatment plans.
•Dams

126
Ministerio de Comercio ,
Infrastructure - Transport Industria y Turismo
República de Colombia

Subsector Project Description Est . Investment


( US$ )

Roads Complementary arteries to Consolidation of road $ 1 billion


improve competitiveness network: 19 corridors by
public works

Vial Ruta del Sol Road concession for 1.098 Km $ 2.5 billion
Concession (Villeta-Ye de Cienaga)

Vial Ruta de la Montaña Connection of Antioquia´s $ 2.3 billion


Concession productive areas with the
Atlantic Coast

Arterias del Llano road Estimated length: 1.022 Km TBD


corridor Connection between the
interior of the country and
the oriental planes

Autopista de las Américas Rehabilitation: 850 Km TBD


Concession 2 lane construction: 1.600 Km

Airports Center and northeast Santa Marta, Valledupar, $ 80 million


airport concessions Barrancabermeja, Riohacha,
Cúcuta & Bucaramanga

127
Ministerio de Comercio ,
Infrastructure - Transport Industria y Turismo
República de Colombia

Subsector Project Description Est . Investment


( US$ )
Ports Future port developments Bahía Málaga, Tribuga & Turbo TBD

Railroads Central railroad system 1.045 Km road (Buenos Aires – $ 420 million
concession Chiriguaná) – Construction,
rehab, maintenance &
operation
Carare train Construction of railroad TBD
corridor to Construcción del
corredor férreo para
capitalize on the
exploitation of coal
resources located in
Tren de Cercanías Cundinamarcaof
Development , Boyacá and line $ 1 billion
railroad
Santander
to connect Bogotá and nearby
population centers. 106 Km.

128
Ministerio de Comercio ,
Infrastructure - urban transport Industria y Turismo
República de Colombia

Subsector Project Description Est . Investment


( US$ )

Integrated massive SITM Bogotá, Soacha, Medellín, $ 2.3 billion


transport systems Barranquilla, Cartagena, Cali,
Bucaramanga, Pereira & Cúcuta
Strategic public SETP Santa Marta, Valledupar, $ 1.76 billion
transport systems Sincelejo, Montería,
Manizales, Armenia, Popayán,
Pasto, Buenaventura, Ibagué,
Neiva, Villavicencio

Includes investments to be executed.

129
Ministerio de Comercio ,
Infrastructure - Energy Industria y Turismo
República de Colombia

Subsector Project Description Est . Investment


( US$ )

Sale of stock (4 electric Santander, Norte de Santander, TBD


Energy companies) Cundinamarca & Boyacá

Sale of stock (3 electric Huila, Neiva & Caquetá TBD


companies)

Sale of stock (3 generation Gecelca & Urra TBD


companies)

ISAGEN stock sale Nation owns 57.6% $ 1.1 billion *

* National Planning Department estimates based on BVC close as of February 20 de 2009.

130
Ministerio de Comercio ,
Infrastructure - Telecommunications Industria y Turismo
República de Colombia

Subsector Project Description Est . Investment


( US$ )

Postal Postal services Search for strategic operator TBD

Radio / TV Operation of public tv and Improvement of networks $ 120 million


radio networks

Communications Underwater cable – San Cable set up and operation $ 21 million


Andrés

Communications satelite Satellite construction set up $ 190

131
Ministerio de Comercio ,
Industria y Turismo
Infrastructure - Housing , water & República de Colombia

sanitation
Subsector Project Description Est . Investment
( US$ )
Environment - Portfolio of Clean 107 projects formulated to access Estimated CO2 emission
Climate change Development Mechanisms carbon markets. reduction potencial : 119
projects millones / ton
(pending market value)
Megaprojects of Projects in 14 cities for a 800 million – first phase
Housing National Social interest total of 214 thousand homes
(73.500 on the first phase)
Departamental plans for Investments in water, sewage and
Drinking water water and sanitation clean up services in 32
and basic departments between 2009 and 2012. 2.2 billion
sanitation Expansion of Salitre-Bogota Expansion to 8 m3/seg with 400 million
river treatment plant secondary treatment and hidraulic
adequacy of the river
Residual water treatment Plant construction (2 phases) for 850 million
plant of Canoas -Bogota volume of 14 m3/seg
river

132
Ministerio de Comercio ,
Industria y Turismo
Infrastructure - Housing , water & República de Colombia

sanitation

Subsector Project Description Est . Investment


( US$ )
Residual water treatment Secondary treatment plant
plant of Bello-Medellin construction for a volume of 5 400 million
River m3/seg
Drinking water Bucaramanga dam Dam construction with storage
and basic capacity of 12.2 million m3 90 million
sanitation Quindio dam Dam construction with storage
capacity of 14.3 million m3 30 million

133
Ministerio de Comercio ,
Colombian Infrastructure Investment Fund - Industria y Turismo
República de Colombia
CIIF

Investments in energy, transportation, water and sanitation,


telecommunications infrastructure projects or companies

(greenfield , brownfield , projects /enterprises already incorporated )

General partners: Ashmore* and Inverlink S.A**. Technical advisor:
Macquarie Group***

Fund size: USD 500 – 750 MM; First closing: USD 250 MM

1 3 4 134
Ministerio de Comercio ,
Country strategy for Industria y Turismo
República de Colombia
competitiveness : Focus on
global opportunities and local
strengths

World Strength
market Analysis
opportuniti Sectors Selection. for
es Colombia
identificat Filters
ion
Potential World Class Source: McKinsey
Sectors
1. BPO & O
2 . IT Services and Software
7. Automotive industry
3 . Health tourism
8 . Electric power
4 . Cosmetics and personal care products 9 . Textile , fashion & design
5 . Biofuels
10 . Infrastructure
6 . Forestry

Crisis Conclusio
ns
135
Ministerio de Comercio ,
Industria y Turismo
República de Colombia

A well prepared country face


to the global downturn

136
Colombia has designed a strategy Ministerio de Comercio ,
Industria y Turismo
to face the global economic República de Colombia

downturn

üReasonably counter-cyclic fiscal policy in conditions of debt


sustainability and prioritization of expenditure in
infrastructure and in social and productive support programs.

üTotally secured external financing in 2009: US$2.4 billion by


means of multilateral banks and US$1 billion by means of issuing
a global bond in international capital markets.
ü
üFacilitation of production financing aimed at smaller companies:
-IADB-Bancoldex (External Trade Bank of Colombia ): US$650
million.
-CAF-Bancoldex : US$300 million and capitalization of Fondo
Nacional de Garantías (entity that supports loans to small and
medium size companies) by US$31 million.
ü
üFlexibilization of monetary policy: since late 2008 the Central
Bank of Colombia’s benchmark interest rate has been reduced by 200
basis points.

137
Minor impact on Latin America Ministerio de Comercio ,
Industria y Turismo
economies by world crisis República de Colombia

GDP Growth : World and Latin America %

Source: The world Bank Group (Quick Query), EIU (Market


Indicators & Forecasts)
Note: 2008 Estimated, 2009-2012 Forecast
138
In 2012 the average GDP growth Ministerio de Comercio ,
Industria y Turismo
of Latin American countries will República de Colombia

be greater than 3 %

GDP Growth : Latin America Countries (%)

Source: The world Bank Group (Quick Query), EIU (Market


Indicators & Forecasts)
Note: 2008 Estimated, 2009-2012 Forecast
139
Colombia has a Steadiest GDP Ministerio de Comercio ,
Industria y Turismo
growth in Latin America República de Colombia

Volatility and GDP Growth in Latin


America ( 1970 - 2007 )
%

5%
PRY
ECU BRA CHL
4% COL MEX
PER
3% Average* VEN
BOL ARG
2% URY

1%

0%
w
D
G
P
g
th
oA
e
ra
v

0% 1% 2% 3% 4% 5% 6% 7%

StandardDeviationofGDP Growth

* The average is calculated based on the


current sample.
Source: World Bank (Quick Query)

140
Colombia : Significant Ministerio de Comercio ,
Industria y Turismo
market potential República de Colombia

Nominal GDP in Latin America Population in Latin America


( 2007 ) ( 2007 )
USD Billion ( PPP ) Million of Inhabitants

S o u rce : E IU ( M a rke t In d ica to rs & Fo re ca sts), W o rld


B a n k ( Q u ick Q u e ry )

141
Since September 15th devaluation Ministerio de Comercio ,
and volatility in Colombia have Industria y Turismo
República de Colombia

been lower than countries such as


Mexico, Brazil and Chile.
Exchange Rate
(Var. Since Sept. 15th 2008)

Exchange Rate
Var. Coef. Since Sept. 15th 2008

Source: DNP. Bloomberg. DGPM-Ministry of Treasure


Data updated on January 27th 2009

142
Reduction in Stock prices has Ministerio de Comercio ,
Industria y Turismo
been lower than Peru’s and has República de Colombia

shown lower relative volatility


Latin- American Stock Exchange
(% Var. Since Sept. 15th 2008)

Latin- American Stock Exchange


(Var. Coef. Since Sept. 15th 2008)

Source: DNP. Bloomberg. DGPM-Ministry of Treasure


Data updated on January 27th 2009

143
debt spread is similar to countries Ministerio de Comercio ,
Industria y Turismo
such as Peru, Mexico and Brazil. República de Colombia

Volatility has been homogenous


among these countries
Sovereign Debt Spread
(% Var. Since Sept. 15th 2008)

Sovereign Debt Spread


(Var. Coef. Since Sept. 15th 2008)

Source: DNP. Bloomberg. DGPM-Ministry of Treasure


Data updated on January 27th 2009

144
premium on the Credit Default Ministerio de Comercio ,
Industria y Turismo
República de Colombia
Swaps (CDS) have been lower in
Colombia than in other Latin-
American countries
Credit Default Swap 10 years
(% Var. Since Sept. 15th 2008)

Credit Default Swap 10 years


( Var. Coef . Since Sept . 15th 2008 )

Source: DNP. Bloomberg. DGPM-Ministry of Treasure


Data updated on January 27th 2009

145
inflation has been possible as Ministerio de Comercio ,
Industria y Turismo
a result of proper República de Colombia

coordination between fiscal


and monetary policies
Inflation
Inflation Rate
Rate Change
Change (January
(January 2007
2007 –– September
September 2008)
2008)

Latin-America
Other Countries
Colombia

Growth
Growth Vs
Vs Inflation
Inflation in
in Latin
Latin America
America (Annual
(Annual Variation
Variation 2007)
2007)
Growth - Inflation
balance is positive
compared to other
countries in the
region

Source : Central
Banks.
146
Only Mexico is safer than Ministerio de Comercio ,
Industria y Turismo
Colombia with respect to the República de Colombia

EMBI +

JP Morgan – Emerging Market Bond Index

Source: Bloomberg

147
Ministerio de Comercio ,
F o re ig n d e b t w ith re sp e ct to Industria y Turismo
República de Colombia
G D P,
th e fifth lo w e st in L a tin
A m e rica

Foreign Debt / GDP per


country
Latin America ( 2008 )

S o u rce : La tin
Fo cu s
148
Ministerio de Comercio ,
C o lo m b ia is th e o n ly co u n try in Industria y Turismo
República de Colombia
L a tin A m e rica th a t h a s tw o
d e p o sit in su ra n ce in stitu tio n s

Country Deposit Insurance Institutions in


Argentina Latin
SegurosAmerica
de Depósito Sociedad Anónima
Brazil Fondo Garantizador de Créditos (FGC)
Chile Superintendencia de Bancos e Instituciones
Colombia Financieras
Fogafin and Fogacoop
Ecuador Agencia de Garantía de Depósitos (AGD)
Mexico Instituto para la Protección al Ahorro
Peru Bancario (IPAB) de Depósitos
Fondo de Seguro

Source: International Association of Deposit Insurances, Fogafin


(Monthly Reports, 2008)

149
C o lo m b ia is th e fo u rth co u n try w ith Ministerio de Comercio ,
Industria y Turismo
th e lo w e st risk o f fin a n cia l crisis , República de Colombia

a cco rd in g to M e rrill L y n ch

Country Risk Ranking (Merrill Lynch,


2008)
Greater Risk Lower Risk
1 Australia 1 Nigeria
2 Switzerland 2 Mexico
3 Korea 3 Philippines
4 Rumania 4 Colombia
5 Hungary 5 Egypt
6 Sweden 6 Oman
7 Bulgaria 7 Indonesia
8 Euro Area 8 Peru
9 United Kingdom 9 China
10 United States 10 Russia

S o u rce : M e rrillLyn ch ,
N o ve m b e r 2 0 0 8

150
Ministerio de Comercio ,
Country strategy for Industria y Turismo
República de Colombia
competitiveness : Focus on
global opportunities and local
strengths

World Strength
market Analysis
opportuniti Sectors Selection. for
es Colombia
identificat Filters
ion
Potential World Class Source: McKinsey
Sectors
1. BPO & O
2 . IT Services and Software
7. Automotive industry
3 . Health tourism
8 . Electric power
4 . Cosmetics and personal care products 9 . Textile , fashion & design
5 . Biofuels
10 . Infrastructure
6 . Forestry

Crisis Conclusio
ns
151
Ministerio de Comercio ,
Industria y Turismo
República de Colombia
Conclusions

 In the last few years, Colombia has experienced a marked improvement in its macroeconomic performance,
internal security and stability for businesses. As a result social indicators have improved dramatically.


Colombia has achieved a solid structural growth, based on an increase in the investment rate and higher
 productivity levels.


The country has guaranteed its external funding for 2009 trough multilateral institutions such as IADB, WB
 and CAF.



152
Ministerio de Comercio ,
Conclusions Industria y Turismo
República de Colombia

• Colombia is aggressively negotiating trade and investment


agreements expanding its markets and becoming more
attractive to investors.

• The Colombian Government is committed to generating the


most favorable conditions for domestic and foreign
investment instruments such as the free-trade zones
regime and legal stability contracts.

153
Ministerio de Comercio ,
Industria y Turismo
República de Colombia

Ministry of Commerce: www.mincomercio.gov.co


Investment Promotion Agency:
www.investincolombia.com.co
154