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• Goiás – 9th Economy in Brazil • Brasil – 6th World’s Economy Goiás at Glance • • • • • • Capital: Goiânia Distance from Brasília: 200km Municipalities: 246 Population: 6,154,996 Area: 340,000km² (4% of the Brazil’s area) Eletric Power: 9,951 MegaWatt (4th in Brazil) Industrial Development • • • • • • Biggest Pharmaceutical Polo of Latin America 6% of production of Brazilian Automatic 4th National/Domestic Producer of Grains 2nd Largest Ethanol Producer 2nd Largest Gold Producer in Brazil (16.9%) 82.8% of National Production Nickel Secretary of State for Industry and Commerce (SIC-GO) GOALS • The inclusion of Goias in the world scenario • Business experience working with national and international corporations • Corporate vision focused on final results • Segmentation into Economic Sectors and Micro-regions (18 in Goias) • FCO (Constitutional Fund for the Middle West) : In 2011 the FCO in Goiás • PRODUZIR ● "Microproduzir" (incentives to the micro enterprises) ● "Teleproduzir" (incentives to the implementation of call centers) ● "Centroproduzir" (incentives to build distribution centers) ● "Logproduzir" (incentives to companies operating on logistics) ● "Comexproduzir" (Incentives to foreign trade operations EVOLUTION – US$ FOB – 2011/2012 Janeiro/Novembro 2011 US$ Janeiro/Novembro 2012 US$ % Export 5,605,193,073 7,135,690,058 27.3% Import 5,728,429,088 5,124,601,115 -10.5% Total -123,236,015 2,011,088,943 * Foreign Trade: Export - Goias 2000-2011 Destination 2010 2011 Growth European Union 307,293,714 1,512,895,758 392.33% Main products of Goiás exported to Germany in 2012 • • • • • • Soybean oil Beef Sugar Leather Coffee Copper Main Germany products imported to Goiás in 2012 • • • • • • Pharmaceuticals Plastic Grains and vegetal products Machinery, mechanical appliances Fertilizers Sugar IT is Brazil - Information Technology • Brazil is the sole representative of Latin America with prospect for short-growth in sector of information technology • Gains of 0.3% for the private sector puts the country in 3rd place in the global ranking in 2012 • Goiás has more than 800 companies in the software area • 02 Technology Parks – (PGTec) Goiano Program of Technology Parks (PGTec) • The project seeks to gather in specifc land, technology companies, public and private universitites, research laboratories, certification institutes and all events • 04 Technology Parks have being worked in Secretary of Science and Technology • The main objetive of PGTec is to attract, create, promote and maintain technology-based companies and research institutions and development in the municipalities, enabling new products and services to be rapidly placed at the disposition society. Why Agriculture is important to Brazil? • • • • • • • • GDP of $2,5 trillion in 2011 - 6th economy in the world Almost 200 million consumers with increased purchasing power Agricultural superpower 20% of GDP (US$ 492 billion) 37% of Brazilian exports (US$ 95 billion) Agribusiness employs 37% of Brazil’s workforce Grain production: 1990 - 58 million tons / 2011 - 166 million tons Grain production 2012/2013: 172 – 182 million tons (estimated) Soybean accounts for 76 million tons / 27 million hectares (est.) Brazil’s Global Ranking in Agribusiness Production A large portion of Brazil’s Agriculture is focused around six states. Permanent Crops & Arable Land (Percentage Intensity) Sparsely Vegetated Undetermined (0 - 30) 30 - 40 40 - 60 > 60 Water No Data Total Agricultural Equipment Market Economic Sectors • Food: The Midwest region is responsible for more than 60% of the grains and meat produced in the country, generating internal wealth and surpluses for export. • Expanding economic frontier • Goias has more than 2,400 companies in the food industry • Automotive: Consolidating the automotive sector in Goias with new automakers and car parts manufacturers. • The automotive sector has been consolidated in Anapolis, Itumbiara and Catalao. Economic Sectors • Mining: • Mineral Water • Phosphate • Agricultural Limestone • Limestone • Amianthus • Copper • Nickel • Vermiculite • Niobium • Gold • Emerald • Cobalt Economic Sectors • Ethanol • The second largest Brazilian producer of Ethanol • Only 6% of the state area has been already used • 3rd largest Sugar Plant in the world Competitive Advantages • Incentive programs and tax benefits • Lines of credit for development of the state, ranging from micro to large enterprises. • Direct channel with other State agencies and departments. • New ventures studies • Speed and efficiency in monitoring processes • Link between the government and the private sector • Tools required to completely fulfillment of the demands of companies wishing to invest, expand or set up in Goias • INPI – patenting agency Competitive Advantages ●Goias has many taxes incentives for businesses that want to expand their activities and/or to settle in the State. ●Produzir is a Program in the State of Goias that encourages industries to revitalize, expand, and settle in the state. The company becomes more competitive thanks to the tax defferements that will result in gains for its botton of line and in more income/employment for the State of Goias. ●FCO is the Midwest Fund for productive enterprises in the State of Goias. It is a line of credit for funding the rural and entrepreneurial sectors. FCO contributes to the socioeconomical development of the region, funding programs to support investments in the productive sectors. Competitive Advantages - Incentives for industry • PRODUZIR Program State Law no 13.591/00 and Decree no 5.265/00; Financing of the ICMS (VAT: due monthly) ●Finances 73% of the ICMS due; ●Pays 27% of the ICMS due; Antecipates and additional 7.3% (10% of the monthly amount financed) to the Produzir Fund; 2.4 % rate (per year – simple interest); Available until 2020; The unpaid balance will have a 12-month grace period and will be reduced as the “discount factors” are audited and approved. After the discount the Unpaid balance could reach up to 100% (over those 73%); An investment of 20% is required, so that the benefit can be applied (audit made by SIC); Financial viability project is also required (signed by a registered economist of CORECON GO). Competitive Advantages - Incentives for industry COMEXPRODUZIR ― Law no 14.186/02 and Decree no 5.686/02 ● At least 95% of trade company operation must be import/export ●ICMS (tax over goods and services) finance: Credit of 65% on the ICMS . ● Antecipates 5% over the ICMS financed value; ● This credit will be available untill December 31st, 2020. ● Must present Import Certificate registered at SISCOMEX and register at RADAR – Receita Federal (Internal Revenue Service) ● Must present a financial viability project Competitive Advantages – Company that intents to Industrialize Thank you. Alexandre Baldy de Sant’Anna Braga Secretary of Industry and Commerce of State of Goiás Leantho Limirio Gonçalves Executive Secretary of PromoGoiás