business in peru - flandersinvestmentandtrade.com · peru ranked 2nd / 3rd best to do business in...
TRANSCRIPT
BUSINESS OPPORTUNITIES
IN PERU
Business environment1
Peru ranked 2nd / 3rd best to do business in South AmericaDoing Business Index (2013) Forbes Ranking (2013)
Source: World Bank, Forbes
Investment grade among the best in South America
Source: S&P, Fitch, Moody’s
A favourite destination of foreign investment in Latam
Foreign Direct Investment as percentage of GDP (2012)
Source: BID, BCRP, Proinversión
Stable tax regime
Class of tax RateCorporate tax 30%1
Tax on dividends 4.1%
Tax on royalties 30%
Interests on external loan 4.9%
VAT 18%
Tax on financial transactions 0.005%
1. Corporate tax is lower for companies based in the Amazon region (5 or 10%) and for production of certain agriculture products (15%)
Source: Proinversión
FTAs generate stability…
Source: EY
… and very low import tariffsEvolution of import tariffs
Source: Proinversión
Engagement to an open economy within and beyond the Pacific Alliance
GDP per capital > US$ 6,000 means growing demand for added value
GDP per capita (current US$)
Source: World Bank
A growing demand for added value
Source: World Bank
Modern retail is growing fast and facilitates new product entry
2001 2011
Modern retail is growing fast and facilitates new product entry
KEY TRADE FACTS
• Flemish exports to Latin America: 5.2 bn € (2013)
• +30.61% increase over 2012 – highest increase worldwide
• 1.77% of total Flemish exports (293.6 bn €) – potential!
• Flemish exports to Peru (2008/2013): 101.2 mio €/207.2 mio €
• + 17.85% increase over 2012
• No. 76 market worldwide
KEY TRADE FACTS
• Most important Flemish export products (2012): Machinery and mechanical devices (30,47%)Mineral fuels (15,19%) Vehicles/tractors (8,87%) Pharmaceutical products (6,15 %) Confidential trafic (4,31%)
• ‘Pacific Alliance’ versus Mercosur
Belgian companies in Peru
Economic sectors of interest2
Mining, oil and gas, agro, fishing and textile
Source: Ernst & Young Peru
Mining exports above US$ 25 billion annually; mainly copper and gold
Source: Ministerio Energía y Minas
Mining exports by product (US$ FOB)
Peru among top destinations wordwide for mining investments
Main destinations for mining investments (2013)
Source: Grupo Económico de Metales
More than 40 on‐going projects
Source: Ministerio Energía y Minas
US$ 60 billion of investment planned until 2020, 60% in copper
Source: Ministerio Energía y Minas
Companies and opportunitiesMining• Companies
• Antamina ‐www.antamina.com/
• Yanacocha ‐www.yanacocha.com.pe/
• Southern Peru ‐www.southernperu.com/
• Shougang ‐www.shougang.com.pe/
• Barrick ‐www.barrickperu.com/
• Cerro Verde ‐http://www.fcx.com/operations/Peru_Arequipa.htm
• Las Bambas ‐www.rrhhlasbambas.com/
• Chinalco ‐www.chinalco.com.pe/
• Opportunities• Security equipment• Specialized products
Electricity production is growing at a fast speed to satisfy demand
Electricity production in Peru in GWh
Source: Ministerio Energía y Minas
Mainly hydraulic & thermal production; renewables on the rise
Source: Ernst & Young Peru
More than US$ 6 billion in investment planned in energy generation and transmission
Source: Proinversión
Companies and opportunitiesEnergy• Companies• Generation• EDEGEL (Endesa) ‐www.edegel.com/
• Electroperú (Peruvian State) ‐www.electroperu.com.pe/
• Enersur (GDF Suez) ‐www.enersur.com.pe/
• EGENOR (Duke Energy) ‐www.duke‐energy.com.pe/
• Transmission• Red de Energía del Perú (ISA) ‐ www.rep.com.pe/
• Distribution• Luz del Sur (Ontario Quinta) ‐www.luzdelsur.com.pe/
• Edelnor (Endesa) ‐www.edelnor.com.pe/
• Opportunities• Security equipment• Specialized products
Booming agro exports demand increasing industrialization
Agro exports (US$ FOB)
Source: Proinversión
Companies and opportunitiesAgro• Companies• Citrus (mostly Mandarins)
• Consorcio de Productores de Fruta ‐www.cpf.com.pe/
• Procesadora Larán ‐ www.lacalera.com.pe/• Avocado
• Camposol ‐ www.camposol.com.pe/• Consorcio de Productores de Fruta –
www.cpf.com.pe• Grapes
• Agrokasa ‐ www.agrokasa.com.pe/• Camposol – www.camposol.com.pe
• Mangoes• SUNSHINE EXPORT ‐
www.sunshineperu.com• CAMPOSOL – www.camposol.com.pe
• Asparagus
• COMPLEJO AGROINDUSTRIAL BETA ‐www.beta.com.pe/
• CAMPOSOL – www.camposol.com.pe• Milk products
• Gloria ‐ www.gloria.com.pe/• Laive ‐ laiveesvida.com
• Opportunities• processing and packaging equipment • bottle filling equipment • machines for the dairy industry • heat exchangers • machines for wheat and grain
processing • machines for conditioning of fruits,
vegetables and nuts.
Industry requires technology and specialized goods
Companies and opportunitiesIndustry• Companies• Food and Beverages
• Alicorp ‐ www.alicorp.com.pe/• Aje Group ‐ www.ajegroup.com• Lindley ‐ www.lindley.pe/• Gloria – www.gloria.com.pe
• Cement and Concrete• Unacem and Unicon –
www.unacem.com.pe –www.unicon.com.pe
• Pacasmayo ‐www.cementospacasmayo.com.pe
• Yura ‐ www.yura.com.pe/• Steel
• Aceros Arequipa ‐www.acerosarequipa.com/
• Sider Perú ‐ www.sider.com.pe/
• Pharma• Medifarma ‐
www.medifarma.com.pe• Farmaindustria ‐
www.farmindustria.com.pe/• Textile
• Creditex ‐ www.creditex.com.pe• Cotton Knit ‐ www.cottonknit.com/• Hialpesa ‐ www.hialpesa.com/
• Opportunities• Processing and packaging equipment
• Bottle filling equipment • Handling equipment (concrete)• Chemicals• High‐tech equipment
Large investments in infrastructure
Planned investments in infrastructure 2014 ‐ 2016
Source: Ministerio Transporte y Telecomunicaciones
6 metro lines to be built in Lima in the next few years
Source: Proinversión
US$ 5 billion will be spent on housing construction in 2014
Real estate prices in Lima are catching up with the other S.A. capitals
Main companies & opportunitiesConstruction and real estate• Main companies• Infrastructure and construction• Graña y Montero ‐www.granaymontero.com.pe/en/
• Cosapi ‐ www.cosapi.com.pe/• JJC ‐ www.jjc.com.pe/
• Real Estate• Inmobiliari ‐www.inmobiliari.com.pe/
• Viva GyM ‐
www.vivagym.com.pe/• Imagina ‐www.imagina.com.pe/
• Opportunities• Machines and tools for automatization of construction
• Chemicals and additives for special construction (e.g. corrosion, moisture)
Peru’s growing economy requires better logistics
HarboursMetroAirports
Railway
Companies and opportunitiesInfrastructure Operators• Main companies• Airport operators• Lima Airport Partners ‐www.lap.com.pe/
• Talma – www.talma.com.pe• Metro operator• Linea 1 ‐ www.lineauno.pe/
• Railway operator• Ferrocarril Central Andino ‐www.ferrocarrilcentral.com.pe/
• Perurail ‐ www.perurail.com/• Harbour operator
• DP World Callao (Dubai Port) ‐www.dpworldcallao.com.pe/
• APM Terminals Callao ‐www.apmterminals.com/
• Tisur ‐ www.tisur.com.pe/
• Opportunities• Handling equipment• Logistics software and technology
More than 3 million tourists visited Peru in 2013
Numbre of tourists visiting Peru:
Source: Mincetur
Tourism can still grow thanks to its numerous assets• Important cultural and archeological destinations (e.g. Machu Picchu)
• Mega bio‐diversity• Bird watching• Lima is considered as the “gastronomic capital” of Latin America
• Important investments in prestigious hotel chains• Higher air connectivity• Investment opportunities in new touristic destinations
Source: Mincetur
Companies and opportunitiesTourism Operators• Main companies
• Condor Travel ‐ www.condortravel.com/• Nuevo Mundo ‐ www.nuevomundoviajes.pe/• Inka Travel ‐ www.inkatravelperu.com/
• Opportunities• Integration of services between Flanders and Peru –South America
Doing business in Peru3
Free trade agreement between EU and Peru‐Colombia brings opportunities• Tariff elimination for goods:
• Construction equipment• Medical devices, optical instruments• Machinery• Electrical and electronic equipment• Pharmaceuticals• Chemicals, rubber and plastics• Textiles and clothing, footwear• Ceramics• Cosmetics• Processed pork meat (after 7 years)• Milk powder, some cheeses and
processed dairy products
• Simplified Labelling Requirements
• Customs and Trade Facilitation
• Equal opportunities for government procurement
• Higher protection of intellectual property
Distributor or partner generally required due to complexity
Food and drinks Construction materials Pharmaceuticals
Modern vs traditional channels
Number of points of
sale
30%
70%
Modern Traditional
20%
80%
Modern Traditional
60%
40%
Modern Traditional
170,000 14,000 10,000
Make sure you perform an extensive check of potential distributors• Visit the distributor’s own facilities• Check references with other producers working with the distributor
• Check the company’s registration and manager’s right to sign contracts• http://www.sunat.gob.pe/cl‐ti‐itmrconsruc/jcrS00Alias
• Check the distributor’s recent imports• http://www.aduanet.gob.pe/cl‐ad‐itconsultadwh/ieITS01Alias?accion=consultar&CG_consulta=1
• Flanders Investment and Trade can help
Visiting your potential partners and clients in Peru is highly recommended
Trust will not be built at a distance
Tips for first meetings in Peru (1)• Spanish spoken, almost no English (translator)• Don’t forget your business cards and small gifts (e.g. Belgian chocolates or beer)
• Peruvian purchasing criteria: delivery time, after‐sales guarantees, price/quality, innovative character of the product/service
• Take a taxi recommended by your hotel (inexpensive and safe)
• Formal dress code (especially with larger and more traditional companies)
Tips for first meetings in Peru (2)• Business breakfast (8AM) and business lunch (1PM) are common
• Meeting time at the office is normally from 9:30AM to 6PM, although time is flexible in Peru
• Expect your Peruvian client to be late – punctuality and traffic are big issues in Peru
• Peruvians are sensitive to what foreigners think of their country ‐ Share your enthousiasm about Peruvian gastronomy, landscapes and people!
75% of large companies are based in Lima
Participating at a local fair is ideal for a first follow‐up visit
FIT is here to help you
SantiagoOffice
LocalAntenna
Koning Albert II‐laan 37 | BE‐1030 | BRUSSELS | BELGIUMwww.flandersinvestmentandtrade.com | [email protected]
twitter.com/fitagency | twitter.com/InvestFlanders | www.linkedin/groups
Alexis BossuytInvestment and Trade Commissioner FIT Santiago