Download discover business opportunities in portugal

DISCOVER BUSINESS
OPPORTUNITIES IN
PORTUGAL
BUSINESS SWEDEN
2015
Lisbon
PORTUGAL; A SMALL COUNTRY WITH GLOBAL
PRESENCE AND EXPECTED POSITIVE GROWTH
EXECUTIVE SUMMARY
 Portugal consists of 10,6 million inhabitants and a BNP
per capita of 18,300 EUR. The BNP growth rate was
0,4% in 2014. The public debt is expected to decrease
with 4% as the unemployment rate, which already finds
itself down at 13,7%.
 Textiles, shoes and leather contributes to the Portuguese
export industry. Currently, Portugal is one of the largest
textile exporters in Europe due to advanced, highly
qualitative production and innovative textile materials.
 Several leading global companies within
telecommunications, pharmaceuticals, porcelain and
glass are headquartered in Portugal. Recently, Portugal
was ranked as one of the top 10 countries worldwide for
ICT outsourcing thanks to highly developed
infrastructure, focus on engineering and IT education,
language skills and the low labour costs.
 Portugal also benefits from strong connections with its
old colonies in Sub-Saharan Africa and South America.
BUSINESS SWEDEN IN PORTUGAL
Business Sweden Lisbon enable business for Swedish
Industry in Portugal and facilitate entrance towards the
Portuguese speaking markets in Africa.
More cost efficient solutions are needed in many sectors,
where Sweden offer cutting edge solutions. Swedish
Industry present in Portugal need a partner as Business
Sweden to support their business growth in Portugal and
towards markets such as Angola and Mozambique.
Our prioritized sectors, ICT and Health Care and Life
Science show potential for Swedish companies. Within
these, we have a strong commitment towards our industry
to support their business development in Portugal.
Portuguese is the 6th most
spoken language worldwide –
do as many others: use Portugal as your
door to enter the world!
Jennifer Ekström
Trade Commissioner Portugal
BUSINESS SWEDEN
13 AUGUST, 2015
2
GETTING CLOSER TO THE BENEFITS OF DOING
BUSINESS IN PORTUGAL
 Ease of doing business
 Portugal ranked 12 out of 30 EU members
 Strategic location on the global map with access to big markets
 Portugal opens the door to a market with nearly 750 million Portuguese speaking consumers, in
Europe, South America, Africa and Asia
 Getting around and staying connected with highly developed infrastructure
 Easy logistical access with modern railways, roads and ports
 Impressing information and communication technology platform
 Flexible labour market to secure excellence
 Academically skilled work force with high proficiency in English and other languages
 Lower salary levels

Tax incentives to boost corporate activities
 Government incentive to stimulate market with lower corporate income tax from 25% to 23% in 2014
with forecast of decreasing to 17%-19% in 2016
SOURCE: WTO 2015, AICEP 2015 (PORTUGUESE TRADE AND INVEST AGENCY),
BUSINESS SWEDEN
14 MAY, 2013
3
POSITIVE OUTLOOK IN TIMES OF RECOVERY
PORTUGAL HEADING TOWARDS BETTER TIMES FOR GROWTH
DEVELOPMENT OF PORTUGUESE GDP (BILLION EUR)
 In 2014 the Portuguese Government announced the end
of the Economic and Financial Assistance Programme
PAEF. The Portuguese economy has been able to make
progresses by reducing public debt, increase private
consumption and increase employment rate.
 Portugal has over the last decades increased activity
within the service sector which now counts as the most
important characteristic in the Portuguese economy and
contributed with 76,6% of GVA and employed 67,7% of
the population.
 Coming from a more traditional industry, the market now
focus on new sectors and technological development
which is and will make an impact in its economy. Sectors
such as automotive and components, electronics,
energy, pharmaceuticals and IT have gained great
importance to the market growth.
190
185
180
175
170
165
160
2011
2012
2013
2014
2015E 2016E
SOURCE: AICEP 2015 (PORTUGUESE TRADE AND INVEST AGENCY)
BUSINESS SWEDEN
13 AUGUST, 2015
4
PREDICTION OF INCREASED EXPORT IN 2015-2017 WILL
BOOST THE ECONOMY IN PORTUGAL
DEVELOPMENT OF PORTUGAL'S EXPORT, (BILLION USD) PRODUCTS REPRESENTING PORTUGAL'S EXPORT IN
2014
70
 Machinery and tools
60
 Vehicles and transport material
 Oil products
50
 Base metals
40
 Plastics and rubber
 Agricultural products
30
 Clothing
 Chemical products
20
 Food
10
 Minerals and mineral products
 Pulp and paper
0
2006 2007 2008 2009 2010 2011 2012 2013 2014
 Textiles, footwear, leather products
 Wood and cork
SOURCE: WORLDBANK 2015, EUROMONITOR, EUROPEAN COMMISSION 2015
BUSINESS SWEDEN
13 AUGUST, 2015
5
A SMALL COUNTRY WITH LONG PRODUCTION
TRADITION AND INCREASED EXPORTS
Textiles
Shoes
Wine, port wine and olive oil
Cork
Pulp and paper
Wood and furniture
Glass and ceramics
Plastic and moulding
Fruit
Automotive components
Pulp and paper
Cork
Wine
Tourism
Fruit
TEXTILE PRODUCTION REPRESENTS 9% OF PORTUGAL'S TOTAL EXPORTS
SOURCE: AICEP 2015 (PORTUGUESE TRADE AND INVEST AGENCY)
BUSINESS SWEDEN
13 AUGUST, 2015
6
SCANDINAVIAN COMPANIES
 THAT MOVED PRODUCTION
FROM PORTUGAL TO ASIA OR
EASTERN EUROPE NOW
RETURN TO PORTUGAL
BECAUSE OF ITS QUALITY,
CLOSENESS AND PRICE
COMPETITIVENESS
ANA PAOLA DINIS, HEAD OF INTERNATIONAL DEPARTMENT
THE ASSOCIATION OF TEXTILES IN PORTUGAL (ATP 2014)
BUSINESS SWEDEN
13 AUGUST, 2015
7
PORTUGAL WAS RANKED THE WORLD’S 35TH MOST
ATTRACTIVE DESTINATION FOR FDI IN 2013
THE FLOW OF FOREIGN DIRECT INVESTMENTS
KEY FACTORS IN PORTUGAL'S
ATTRACTIVENESS FOR FDI
Billion USD
12
2004
production
decreased
while public
deficit
increased
affecting the
FDI
10
8
 The Portuguese governments stabilisation efforts
after crisis 2007-2010
Crisis hit hard and forced
Portugal into strong
recovery program
foremost 2007 until 2011
 Privatisation of state-owned companies
 Being ranked 25th (out of 189) in classification
Doing Business 2015 by the World Bank
 Offering a diversified economy and benefits from
its EU membership
 A popular Real Estate destination in 2014
6
LARGEST SECTORS OF FDI INFLOW
 Trade
4
 Manufacturing
Positive outlook and
commitment to recovery
program affects FDI positively
2
0
 Financial intermediation
 Information & Telecommunication
 Electricity, gas and water supply
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
 Construction
SOURCE: OECD FOREIGN DIRECT INVESTMENT STATISTICS 2014
BUSINESS SWEDEN
13 AUGUST, 2015
8
PORTUGAL IS THE FIRST STEP AND DOOR OPENER
TOWARDS THE WORLD
EU
GDP: $18.45 tn
Population: 507.4 mn
Brazil
GDP: $2.35 tn
Population: 202.7 mn
Angola
GDP: $131.4 bn
Population: 24.3 mn
Mozambique
GDP: $16.39 bn
Population: 26.4 mn
BRAZIL, ANGOLA AND MOZAMBIQUE ARE AMONG THE FASTEST GROWING ECONOMIES IN THE WORLD AT THE MOMENT
SOURCE: WORLDBANK 2014
BUSINESS SWEDEN
13 AUGUST, 2015
9
MORE THAN 100 SWEDISH COMPANIES HAVE LOCAL
ESTABLISHMENT IN PORTUGAL
EXAMPLES OF SWEDISH COMPANIES DOING BUSINESS IN PORTUGAL
Large sized companies
Small and medium
sized companies
Local production
activities

ABB
 Aura Light
 H&M

Alfa Laval
 Bahnhof
 Hästens

Astra Zeneca
 Bluefish Pharmaceuticals
 IKEA

Atlas Copco

 Infracontrol
 Filippa K
Diaverum

 Seamless
 Nudie Jeans
Ericsson

H&M
 Trustly
 Acne

IKEA

Oriflame

Sectra

Securitas

SKF

SSAB

Systemair

Volvo Cars
TODAY MANY LARGE SWEDISH COMPANIES ARE PRESENT ON THE PORTUGUESE SPEAKING MARKETS IN AFRICA
SOURCE. BUSINESS SWEDEN
BUSINESS SWEDEN
13 AUGUST, 2015
10
SWEDISH SUBSIDIARIES USE PORTUGAL AS A GATEWAY
FOR BUSINESS TO SUB-SAHARA AND LATIN AMERICA
BUSINESS SWEDEN PRESENCE IN LISBON IS FUNDAMENTAL TO SUPPORT THEIR INTERNATIONALIZATION
SOURCE: INTERVIEWS WITH EMBASSY OF SWEDEN IN LISBON, MOZAMBIQUE AND THE MENTIONED SWEDISH COMPANIES
BUSINESS SWEDEN
13 AUGUST, 2015
11
BUSINESS SWEDEN PORTUGAL IS ACTIVE IN
SUPPORTING SWEDISH COMPANIES IN ALL SECTORS
Other business areas
 Wood
ICT
Healthcare & Life
Science
Creative Industries
Safety & Security
 Packaging
 Construction
 Utilities
 Chemicals
Industrial Equipment &
Vehicles
Energy &
Environmental
Technology
Transport Systems
Food
SOURCE: BUSINESS SWEDEN
BUSINESS SWEDEN
13 AUGUST, 2015
12
THE MOST PROMISING SECTORS IN PORTUGAL
The ICT market has an
estimated turnover of 18.5
billion euros generating an
added value of about 5.7
billion euros. The sector has
over 14 thousand companies
employing a total labor force
of 79.000 people
Production value of the
sector forms 4% of total
GDP in Portugal with 5
primary producer and 200
suppliers employing more
than 40.000 workers
Privatization of national
freight transport CP and
maintenance company
EMEF, city metro
transport company Carris
will raise new sector
investment opportunities
ICT
Automotive
Transports
Healthcare
Public health care system
is undergoing changes
with focus to increase
efficiency to cut costs.
Plans to increase health
tourism presents
opportunities for investors
Agriculture
The sector represents 2
billion Euros of business
volume and 16% of the
total industry. Portugal
aims to double and reach
2 billion EURO in exports
of fruits and vegetables
Investment of €220
million in wind energy
projects to strengthen
national renewable
energy cluster in 20152016
Energy
Real estate
Portugal has become an
attractive destination for
real estate investors. In
2014 it became the 4th
most popular destination
for Chinese citizens.
Attractive prospects in a
friendly economy
SOURCE. AICEP 2015 (PORTUGUESE TRADE & INVESTMENT AGENCY)
BUSINESS SWEDEN
13 AUGUST, 2015
13
VISION FOR PORTUGAL WITH INCREASED EXPORTS TO
PUSH ANNUAL GDP GROWTH BY 2020
 Reach annual growth rate above 2%
 Increase employment level with 75%
A selection of
Portugal’s
governmental
vision 2020
targets
 Investment of 3,3% of total GDP in R&D and innovation
 Have a 31 percent share of renewables in energy generation
 Exports shall reach 52% of total GDP, and industry should account
for 20% of GDP
 Double and reach 2 billion EURO in exports of fruits and
vegetables
SOURCE: MINISTRY OF ECONOMY IN PORTUGAL 2015
BUSINESS SWEDEN
13 AUGUST, 2015
14
CONTACT US
BUSINESS SWEDEN IN PORTUGAL
Business Sweden
Rua Vitor Cordon 37, 5E
1200-482 Lisbon - Portugal
T +351 214 249 780
F +351 214 171 304
[email protected]
www.business-sweden.se/portugal