Think Global, think Portugal 2008
CONTENTS www.portugalglobal.pt 3 About aicep Portugal Global Structure and Services Recent Awards 4 6 About Portugal Portugal Offers Investors Access to Markets Investment Environment Human Resources Backup: Economic Data 7 8 9 17 19 2
www.portugalglobal.pt 3
About aicep Portugal Global AICEP results from the merger of API (investment) and ICEP (trade) aiming at: The worldwide promotion of Portugal and its companies The better and further integration of services provided to companies and investors The adoption of a focused and sound message on the advantages of Portugal An increase in internal synergies 4
Structure and Services Investment Business Opportunities Public Business Entity Flexible, free of charges and streamlined services Dynamic approach focused on the client / investor Coordination of investment projects Investors INCENTIVES Commercial Department Client Management AICEP VENTURE CAPITAL Procedural Department Formalities & procedures Public Entities BUSINESS PARKS Pre-investment Single Point of Contact Incentives Settling in Aftercare.. negotiations Providing information Facilitating contacts Identifying suitable locations Considering workforce requirements, etc Tailoring incentives package (merit) Assisting with formal procedures Providing information for day-to-day business running Facilitating contacts and business procedures Ongoing relationship with investors on all subsequent phases of project execution Ensuring that investment contract obligations are kept 5
About aicep: Recent awards WAIPA - World Association of Investment Promotion Agencies THE WAIPA WORLD INVESTMENT CONFERENCE 2007 : ranked 1st in After Care A.T. KEARNEY AND FOREIGN POLICY magazine Globalisation Index Portugal moves 36 positions up in investment attraction 6
Available funds for new investments About Portugal Portugal offers Developed infrastructure Networks Stategic location Competitive cost Advantage High skilled workforce Track Record Quality of life investors Business - friendly climate Available area for industrial location 7
Access to Markets Portuguese Speaking Countries (inhabitants) (GDP, mln USD) Portugal Market 10,6 Mln 194,790 Iberian Market 51 Mln 1,420,540 European Market Portuguese Speaking Countries 494 Mln 230 Mln 14,609,836 1,030,826 Brazil: one of the BRIC countries Angola: one of the fastest growing economies Macau: gateway to China Source: International Monetary Fund, World Economic Outlook Database, October 2007 / World Economic Outlook Database, October 2007: World & EU. Data for the year 2006. 8
Investment Environment Stable democracy with predictable policies, committed to the European Growth and Stability Pact Portugal was one of the first members of the European Union (1986) and in 2002, along with the first group of countries, Portugal adopted the Euro as its national currency Similar regulatory and institutional environment to the heart of Europe Labour law comprises an extensive reform, namely in what concerns adaptability, flexibility and improvement of work organization Lisbon Madrid Free flow of capital and goods within the European Union Distance by air Stockholm London Paris Berlin Rome 1 h 2 h 3 h 4 h 9
Investment Environment The country has a diversity of qualified, multilingual workforce and a cost competitive modern telecoms network, combined with cut-rate real estate readily available Technological plan: Mobilizing Portugal for the information society; providing a new strength for company innovation Administrative Simplification Program: improve the efficiency and effectiveness of administrative procedures by easing the regulations on starting a business 10
Investment Environment Viana do Castelo Chaves National Logistic Platforms Network: 11 Logistic Platforms Oporto Guarda 2 Major Air Cargo Centres (Porto and Lisbon) Aveiro Figueira Da Foz Lisbon Setúbal Sines Beja Faro Badajoz Train station Airport Port Freeway Site selection criteria: Excellent location served by good infrastructures Good access with several transport options Competitive costs Dimension / Availability of space Specialization Associated services 11
Investment Environment Portugal is the 9th most peaceful country in the World The Global Peace Index was the first study to rank countries around the world according to their peacefulness. Factors examined by the authors include levels of violence and organized crime within the country and military expenditure. Rank Country Score 1 2 3 4 5 6 7 8 9 10 Norway New Zealand Denmark Ireland Japan Finland Sweden Canada Portugal Austria 1.357 1.363 1.377 1.396 1.413 1.447 1.478 1.481 1.481 1.483 Source: Global Peace Index 2007 Economist Intelligence Unit Nations considered the most peaceful have lower index scores 12
Investment Environment Friendly population, enviable climate and Europe s lowest criminality rate 10,0 9,0 8,0 7,0 6,0 5,0 4,0 3,0 2,0 1,0 0,0 Portugal Molestation rate Percentage of total population, 2000 or latest available year Japan Italy Poland Belgium Switzerland Assaults and threats France Spain Austria West Germany Netherlands Sexual incidents Sweden England and Wales Safe urban centers and a secure environment Living conditions are renowned: unique climate, extensive choice of leisure & tourism activities and an active foreign community. In 2007, more than twelve million tourists visited Portugal Source: OECD 2005 13
Investment Environment Ranking of Portugal in Starting a Business - Compared to best practice and selected economies. Source: Doing Business 2008 - World Bank Group 14
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Investment Environment Cisco sets up the primary European sales center in Portugal May 2007 Nokia Siemens Networks plans an optical network lab and network management system June 2007 Our decision comes as recognition of the hospitality and commitment of the Portuguese Government, the multi-lingual capabilities of the local people, and finally their professionalism and proven ability to innovate Nokia Siemens has 5 R&D centers in Portugal with 1.500 Highly-qualified engineers. In 2007 Nokia Siemens will invest Eur 95 million mn an optical network lab and network management system serving also African countries. Pescanova to build new cultured fish center in Portugal May 2007 Repsol proceeds expansion and modernization of the petrochemical complex March 2006 Pescanova expects to invest Eur 135 mn to build the cultured fish center for the production of 3500 tons /year, where 200 jobs will be directly created. Expansion and modernization of the petrochemical complex in Sines, construction of a polypropylene plant and a linear polyethylene plant, as well as the construction of a unit of co-generation. 16
Human Resources Microsoft - Language Development Center "Portugal is a tremendously viable location for software development because the country has creative and highly educated engineers, a history of embracing new technologies and can produce quality at a price that cannot be beaten anywhere in Europe" Nokia Siemens Networks -Labs "Portugal provides one of the best workforces in Europe. It is experienced and can learn and adapt quickly. It is highly productive and yet labour costs are low" Bosh Vulcano-Water heaters "very little difference in the quality of Portuguese and German universities. This means the calibre of graduates available to employers is similar. It is unlikely that this statement could be made by an investor in Prague or Warsaw 17
Human Resources Labour costs: Higher value-added and more competitive Portuguese labour force is known by its motivation, adaptability and willingness to work. Despite the raise of the skills of the work force, necessary to shift towards higher value-added and more competitive products, wages continue to competitive Average hourly Labour costs in Euro 2006 18 Source: Eurostat, January 2008
Backup: Economic Data 2005 2006 2007* Population (Thousands) 10,570 10,599 GDP at current prices (Millions Eur) 149,010 155,167 121,315 GDP per capita at current prices 14,098 14,640 Total Exports at current prices (Million Eur) 42,427 48,238 39,469 Total Imports at current prices (Million Eur) 55,330 60,403 47,497 Current-Account Balance (% GDP) - 9.7-9.4 Inflation (HICP) % 2.1 3.0 2.4 Unemployment Rate 7.6 7.7 Inward FDI Net (Million Eur) 3,188 5,875 4,273 Outward FDI Net (Million Eur) 1,671 2,796 4,970 Corporate Tax Rate % 25 25 25 * Accumulated 3rd Quarter Source: Statistics Portugal and Bank of Portugal 19
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