1 Minas Gerais Business Guide - 2012 | ACMinas

Transcription

Minas Gerais Business Guide - 2012 | ACMinas
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The 2012 Minas Gerais Business Guide was produced by:
ASSOCIAÇÃO COMERCIAL E EMPRESARIAL DE MINAS - ACMINAS
Conselho de Assuntos Internacionais
(Commercial and Entrepreneurial Association of Minas - Foreign Affairs Council)
Av. Afonso Pena, 372 - Belo Horizonte / MG - Brazil - 30130-001
www.acminas.com.br
Roberto Fagundes - ACMinas President
Silvio Soares Nazaré - Foreign Affairs Council President
Luiz Fernando D. Moura e Castro - Organizor/International Analyst
Leonardo Faria Lima - Colaborator/Economic Advisor
FAZ! Comunicação - Graphic Design
Abelhaazul - Translation
Printing - Formato
From Minas to the World
The 2012 Minas Gerais Business Guide, is a publication of the Commercial and Entrepreneurial Association of Minas that is now in its third edition. This international business guide is aimed at disclosure of services, products and business opportunities and
investments in the State of Minas Gerais, Brazil, having its distribution aimed at foreign
governments representatives, chambers of commerce, businesses and international organizations, as well as focal points such as hotels and airports.
The purpose of this guide is to become a reliable source of information, presenting a
comprehensive overview of the economic scenario of the State, which included a comprehensive mapping of its private sector, including small, medium and large businesses
as well as the description of the legal procedures on investment inflow. It therefore represents a further contribution of ACMinas in the efforts expended by the private sector
and the state government in favor of business expansion and definitive globalization of
Minas Gerais.
This is a role, incidentally, in which the entity has a key part as a historical player: ACMinas was, for example, where we first spoke about the construction of the Belo Horizonte
International Airport in Confins, about the Expominas Exposition Center and about the
design and structuring of a intensively organized system capable to explore the enormous economic potential of the State.
By taking the initiative of publishing this Guide, ACMinas continues an on-going sequence
to a long history of collaborative action aimed at the perpetuation of the results already obtained by Minas Gerais in the process of developing and opening up new opportunities for
business and investments. I am positive that the Minas Gerais Business Guide will provide
you with useful information about Brazil and the potential of Minas Gerais.
Roberto Luciano Fortes Fagundes | ACMinas President
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Minas Gerais, a
land of possibilities
Luiz Fernando D. Moura e Castro
ACMinas International Analyst
Leonardo Faria Lima
ACMinas Economic Assessor
In 2010, the economic power of
Brazil´s image is already enshrined in the
international market. It reflects a rapidly
growing domestic economy, with big international aspirations, economic and political, seemingly beyond their reach. But
these aspirations do not come out of the
blue. They were built over the last ten years
through effective government policies, but
mainly supported by a private sector hungry for new market opportunities.
Foreign Investments in Minas Gerais (2001 through 2010)
Sectors
Total 2001 - 2010 (US$)
Growth %
Mining
14,774,328,713
49,69%
Steel Industry
7,355,397,188
24,74%
Automotive
4,209,305,857
14,16%
Chemical
951,466,520
3,20%
Services
735,238,478
2,47%
Non-metallic
432,944,888
1,46%
Energy
362,787,040
1,22%
Agribusiness
207,823,936
0,70%
Metallurgy
198,574,898
0,67%
Electronics
161,589,943
0,54%
Mechanical
145,882,535
0,49%
Textile
76,684,311
0,26%
Furniture
75,022,686
0,25%
Footwear and leather
35,860,333
0,12%
Electrical
10,250,758
0,03%
Total
29,733,158,086
100,00%
Source: INDI / ACMinas Economic Department
The economic capacity of some regions in this country and some sectors of
the economy are already known around
the world. However, Brazil still has a lot
of potential to be exploited by and for the
global market.
The State of Minas Gerais represents
this growing potential in the last decade.
In its underground bubbles the mineral potential of the state, while in its major cities
and its capital, Belo Horizonte, tech companies take root in large office buildings in
an ever growing city.
Minas Gerais is located in Brazil´s
southeastern region. The state is in a
mountainous area with a pleasant climate,
and home to peaceful and receptive people.
However, the peaceful character of the state
residents is not consistent with the aggressiveness of their business, always looking
to stay abreast of the latest market trends,
investing in innovation, new products and
methodologies for sustainable growth. This
attitude is one of the major market potentials
of Minas Gerais for the foreign investor.
In retrospect of foreign direct investment (FDI) in the State during the last decade and the growth of the sectors that
received such investments, it is possible
to have an overview of the opportunities
in Minas Gerais.
According to data from the government
agency supporting and attracting foreign investment, INDI (Institute for Integrated Development of
Minas Gerais) the flow of FDI in Minas in the last
10 years was US$ 29,733 billion.
This corresponds to an impressive growth
of 435% over the previous decade. From this
amount, 50% went to the mining sector, equivalent to US$ 14,774 billion. In addition, other
sectors such as steel, automotive, chemical,
furniture, textile and services also stand out as
attractive FDI between 2001 and 2010.
During this period, 2010 was the year the
state received the largest volume of foreign investment, or US$ 18,847 billion (63.39% of
total), an increase of 1,519% over 2009 (US$
1.164 billion).
The considerable growth of FDI in Minas
Gerais reflects two factors: 1) the foreign investor’s confidence in the Brazilian economy,
gained through a governmental economic pol-
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icy with firm
foundations,
2) the strength of
the domestic market, whose demand
for new products and services grows every day.
The internal Brazilian market has grown
in recent years mainly due to annual salary
increases (above inflation) and government
policies to eradicate poverty. These national
economic incentive policies were replicated in
Minas Gerais, decreasing poverty levels in the
state and increasing the strength of its domestic
market with the new Brazilian middle class.
Another highlight of Minas Gerais State at
the national level is the differential growth of its
Gross Domestic Product (GDP) that grew 10.9%
in 2010. The performance of Minas Gerais was
3.4 percentage points above the national result
of 7.5%. The differential growth of GDP of this
state was primarily due to the increased value
MINAS
GERAIS
Area
558.384 km2
Geography
Mountainous
Municipalities
853
Capital
Belo Horizonte
Mean annual
temperature
21°C - 69° F
Population (2010)
19,597 million
Highways
269.545,5 km
Railroads
5.322 km
GDP US$ (2010)
196, 443 billion
GDP per capita
US$ (2010)
9.721
Economically active
population (2009)
Source: INDI / ACMinas Economic Department
11,215 million
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of agricultural commodities, steel and iron
ore, influenced by the strong pace of exports to China.
But it is important to note that there are
other influential sectors such as the mining services sector. FDI in this sector grew
by more than 16,000% over the previous
decade (1991-2000), reaching a total of
US$735 million. The culmination of this
investment was measured in 2009, when
the sector received US$ 461 million (62%
of the total) FDI.
Minas Gerais ranks as a state full of FDI
potential, presenting an overview of diverse
sectors in which to invest. For example,
only in the first half of 2011, more than
US$1 billion was announced in ten major
sectors, totaling 60 different projects and
generating over 18,000 jobs. The amount
announced in 2011 already accounts for
35% of the total FDI in the ten year period
between1991 to 2000.
At the municipal level, Belo Horizonte
is the largest city in the state and also its
capital. As a service center, the city has
the largest number of companies active in
Minas Gerais, with a total of 260,836 companies accounting for 34.49% of the total
state enterprises.
The city is only 114 years old, and has
the Brazilian headquarters of large multinationals such as Fiat in the automotive
industry and the giant Google in the information technology sector, besides being
surrounded by large mining companies
like Vale and Anglogold.
Business tourism is another strong
point for Belo Horizonte; the city hosts national and international events in various
sectors in different areas, and is prepared
and ready to receive them. Finally, with the
approach of major sporting events, the
Total Investments Announced - 2011
Volume
(thousant US$)
%
Jobs
Created
%
Projects
%
1.438.082,62
6,59
13.983
27,96
31
15,58
AUTOMOTIVE
69.163,89
0,32
632
1,26
4
2,01
SHOES AND LEATHER
12.582,57
0,06
1.000
2,00
1
0,50
TRADE
25.228,06
0,12
532
1,06
5
2,51
EDUCATION
1.447,00
0,01
0
0,00
2
1,01
ELECTRIC
342.466,18
1,57
1.592
3,18
8
4,02
ELECTRONCS
52.664,67
0,24
933
1,87
25
12,56
ENERGY
673.192,83
3,08
365
0,73
10
5,03
1.405.185,91
6,44
0
0,00
3
1,51
INFRASTRUCTURE
437.760,30
2,01
58
0,12
6
3,02
MECHANICAL
439.903,58
2,02
3.776
7,55
12
6,03
METALLURGY
161.820,54
0,74
1.431
2,86
7
3,52
8.068.624,72
36,97
3.515
7,03
7
3,52
FURNITURE
520.918,53
2,39
500
1,00
1
0,50
NON-METALS
225.203,52
1,03
869
1,74
4
2,01
R&D
14.029,57
0,06
0
0,00
2
1,01
5.384.647,49
24,67
11.423
22,84
42
21,11
108.732,31
0,50
0
0,00
8
4,02
SECURITY
943,69
0,00
150
0,30
1
0,50
SERVICES
546.270,86
2,50
6.066
12,13
10
5,03
1.484.743,63
6,80
0
0,00
1
0,50
TEXTILE
169.367,73
0,78
2.990
5,98
6
3,02
AIR TRANSPORT
243.913,18
1,12
200
0,40
3
1,51
21.826.893,37
100,00
50.015
100,00
199
100,00
Sector
AGRIBUSINESS
GAS
MINING
CHEMICAL
HEALTH
STEEL
TOTAL
covering activities ranging from supply of
raw materials and equipment to providing
services. Other areas of interest are Information Technology, Wood and Furniture,
Textile & Garments, Tourism, Production
Associated with Tourism, Retail Trade,
Agribusiness and Services.
Belo Horizonte is also surrounded by
historic towns, dating from the eighteenth
century. Mariana, Tiradentes and the former capital of our state, Ouro Preto (recognized by UNESCO as a World Heritage
Site), are just some of the cities that shape
this tourist and historical complex that
dates back to colonial Brazil.
The text, data and articles that follow in the 2012 Minas Gerais International Business Guide touches in greater
depth on these and other capabilities
found in Minas Gerais. They were written by international relations and foreign
trade agents making up the mosaic of
the potential found in the State of Minas
Gerais. Every agent is committed to assist and ease the work of foreign investors who want to enter the Minas Gerais
market. They make themselves available
and provide information on your area of
expertise. Throughout this Guide more
useful information about agents who act
in Minas Gerais and the state market will
be provided.
Source: INDI - Updated through 31/12/2011
2014 World Cup and the 2016 Olympics
in Rio de Janeiro, the city’s hotel network
has been expanding and is modernizing in
order to receive the wave of tourists. These
investments are still being made, opening a
new front for FDI.
According to mapping commissioned
by government agencies with the Getúlio
Vargas Foundation, Belo Horizonte is the
capital in Brazil with more business opportunities looking to the 2014 World Cup.
The study found 699 opportunities in nine
sectors of the economy to be explored before, during and after the sporting event.
The construction industry is the sector which offers the most opportunities,
ACMinas
ACMinas is much more than a class
entity. That is how you can define the Commercial and Entrepreneurial Association
of Minas, which for over a century (since
1901) operates in pursuit of development
with social justice. The entity’s mission is to
meet the needs of businesses and entrepre-
neurs with ethics and competence through
institutional representation and services
provided. The Commercial and Entrepreneurial Association of Minas has a wide
range of products and services designed
to expedite business management, bringing
greater flexibility and convenience for the
companies in this state, especially those
associated with this entity.
International Affairs Council
The purpose of the International Affairs Council is to effectively contribute
to improve the integration of enterprises,
businessmen and the image of the State
of Minas Gerais in Brazil and abroad. Their
tools are the exercise of business intelligence and international relations. The
International Affairs Council
is available to investors,
government
officials and foreign
businessmen
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who want to know the market and the possibilities offered in Minas Gerais. For more
information on the articles and institutions
presented here, contact us.
Associação Comercial e Empresarial de
Minas (Commercial and Entrepreneurial
Association of Minas)
Adress: Av. Afonso Pena, 372m Centro,
Belo Horizonte, MG, BRAZIL
CEP: 30 130 001
Telephone: +55 31 3048 0703
www.acminas.com.br
[email protected]
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indi
Minas Gerais
The State of
:
A prominent location for Investment
Minas Gerais offers several competitive advantages to investors interested in
setting up production units or expanding
operations. Together with its geographic
position in southeast Brazil, the main consumption center of the country, the State
also represents a pathway between the
Midwest and Northeast regions, offering a
logistical advantage to entrepreneurs compared to other Brazilian States.
The most extensive highway and railway networks in Brazil, which connects
the State to the main seaport complexes,
are located in Minas Gerais, as well as
the first industrial airport in the country.
Minas Gerais government supports the investor in working force training, research
and development projects. It also offers
credit lines to meet financial demands of
investment, allows special tax treatment,
and offers a reliable energy infrastructure
and an operational development system
focused on quickly meeting the demands
of entrepreneurs, through the Minas Gerais
Institute of Integrated Development (INDI).
The State was a pioneer in establishing Private Public Partnerships (PPP’s) in
Brazil, having made the first concession of
a State highway, transferring operation of
MG-050 road to the private initiative. Minas
Gerais government has been working on
other potential PPP’s, to open new possi-
bilities for private investment in the State,
including the “Mineirão” soccer stadium.
In addition, companies interested in locating in the northern portion of Minas Gerais
or in the Jequitinhonha and “Mucuri” River
valleys are eligible for federal tax incentives
provided by the Northeast Region Development Authority (SUDENE) and loans granted
by the Bank of the Northeast of Brazil (BNB).
As a consequence of this set of natural and institutional attractions combined
with a focus on promoting private investment, Minas Gerais was the Brazilian State
that attracted more direct investment from
2003-2010 according to Ministry of Development, Industry and Foreign Trade
(MDIC). During this period, the amount of
announced investments that were recorded
by INDI reached US$143 billion1.
These investments are reached all State
regions and productive chains. However,
due to their economic dynamics, the most
benefited areas were the Central and “Rio
Doce” regions (44.05% and 10.8% of the
total announced), followed by the “Triângulo” (6.31%), Northern Minas Gerais
(5.22%), “Zona da Mata” (4.97%), Southern Minas Gerais (2.39%) and the rest of
the State (21.31%). In this last case investments on transportation and energy infrastructure are included.
The Central region stands out in this sce-
nario as the most dynamic area of the State
due to the fact that its economy is based
on capital-intensive productive chain industries, such as mineral-metallurgical and
automotive. In addition to the large-scale
investments naturally attracted due to its
production structure, the Central region, due
to economic growth, income improvement,
high demographic density and a skilled labor
force, has benefitted from a high number of
investment projects of companies operating in the diverse services sector, such as
health, education and trade; and in knowledge-intensive sectors, like information
technology, software and biotechnology.
The “Rio Doce” region, especially the
“Vale do Aço”, has benefitted from investments made by companies operating in the
mineral-metallurgical sector, in pulp production and in real estate projects.
In the “Triângulo Mineiro”region, the
main projects are tied to the agribusiness
sector. There was a large expansion of
sugar ethanol industry in this region during the 2003-2010 periods. Among the
projects being implemented there, Dow
Chemical/Crystalsev stands out, which
will be the world´s largest biopolymers
investment, filling a gap still existing in the
State’s ethanol/chemical industrial matrix.
The investments in Northern Minas
Gerais will create a new iron ore productive
chain in the State. Other important projects planned during the
period were: the establishment of
a biodiesel plant by Petrobras S/A,
the capacity expansion of “Novo Nordisk
Produção Farmacêutica do Brasil Ltda.”,
the main biotechnology company in Minas
Gerais, the establishment of an agroindustrial unit by the “Sada Group” and an electrical power production unit by “Arcadis
Logos Energia S/A”.
Southern Minas Gerais differs from the
other regions of the State due to the large
number of projects attracted, the number of
municipalities benefitting from announced
investments and the high number of jobs
generated from invested capital. This occurs
because the productive chain and prominent
are less capital intensive and more labor
intensive. In addition to investments in the
traditional fields like agribusiness and textiles
and clothing, Southern Minas Gerais has attracted a large number of electro-electronics
projects. Historically, the electro-electronic
sector in Southern Minas Gerais was restricted to the Electronics Valley in “Santa
Rita do Sapucaí”city but, currently, it has also
spread to other micro geographical regions
like Varginha, Pouso Alegre and Itajubá.
Projects that stand out in other parts of
the State include those of “Vale Fertilizantes”,
in Patrocínio city (“Alto Paranaíba region”),
“Rio Paracatu Mineração” in “Paracatu”
city (Northeastern Minas Gerais), “Bioenergética Vale do Paracatu S/A”, in “João Pinheiro” city (Northeastern Minas Gerais) and
the installation of
the “Irapé” power
plant by Cemig in the
“Jequitinhonha” River Valley (“Jequitinhonha/Mucuri”).
In order to support continuation of this
investment cycle, Minas Gerais government
has carried out important structural projects
to improve State infrastructure. Among this
set of initiatives, the investments related to
sanitation stands out for their large social and
economic scope, as well as the benefits they
provide for population significantly increasing water supply and sewage systems in all
regions. Another important project is “Proacesso”, which resulted in paved access for
almost all 853 State municipalities to the national highway network and “Pro-MG” which
restored State highways.
In 2011, as a result of the infrastructure
improvements and social advances achieved
over the last decade, together with the continuing development policies of the State
government, Minas Gerais remains an important location attracting private investment
at the national level.
In the period from January to October 2011, INDI recorded close to US$16,8
billion2 in investments for the State. Last
year, the regions that received most of the
investments were: Central region (53%),
“Alto Paranaíba” (16%), “Triângulo Mineiro”
(14%) and Southern Minas Gerais (6%).
The economic sectors that attracted more
investments were: mining (39%), chemicals
(14%), non-metallic minerals (13%), natural
gas (7%) and agribusiness (7%).
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INDI is the most traditional investment promotion agency in South
America, with 44 years of activity, being considered, consequently, a model
for the creation of similar institutions
by other Brazilian States. The institute is tied to the State Secretary of
Economic Development (SEDE) and
is supported by the State Electrical
Company (CEMIG) and the Minas
Gerais Development Bank (BDMG).
INDI provides assistance to investors
interested in establishing production
units in Minas Gerais and supports
projects already installed in the State,
helping them expand, relocate and increase competitiveness. All the work
developed by INDI is carried out at no
cost to investors.
Instituto de Desenvolvimento Integrado de Minas Gerais - INDI
(Minas Gerais Institute of Integrated
Development - INDI)
Cidade Administrativa Rod. Prefeito
Américo Renê Gianetti - Serra Verde,
Belo Horizonte / MG - BRAZIL
CEP: 31790-160
Telephone +55 31 3915-2866,
http://www.indi.mg.gov.br.
e-mail: [email protected]
1 - Ptax closing rate in January 6th, 2012.
2 - Ptax closing rate in January 6th, 2012.
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Belo Horizonte &
Metropolitan Area
Area
330,2 km2
Mean annual temperature
21º C
Population (2010)
6,234 million
Belo Horizonte:
A City of Opportunities
HDI
0,880
Distance by Highway
Brasília - 740 km
Rio de Janeiro - 435 km
São Paulo - 586 km
Vitória - 540 km
Distance by Railroads
Rio de Janeiro - 561 km
São Paulo - 845 km
Vitória - 705 km
GDP US$ (2008)
26,518 million
GDP per capta (2008):
7.313
Economically active population
(2009):
2,923 million
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Rodrigo Perpétuo
International Affairs Secretary
Belo Horizonte, the country’s first
planned city, a metropolitan center that
is home to nearly 5 million people, a metropolis which is experiencing a time of
positive transformatxion, consolidates its
position today as a city of opportunities.
The construction of a city that is attractive to business is not a mono-causal phenomenon. One can list some factors and
initiatives that contribute to this process:
appropriateness of the urban infrastructure, quality of public policies that promote
social inclusion and local development, a
lifestyle that combines tradition, sophistication as well as simplicity and modernity,
in a time of political and economic stability
Public and Private
Partnership (PPP)
Type of contract
Investment
Sanitary Landfill
Administrative
49,69%
PPP
R$ 760 million
24,74%
Barreiro Metropolitan
Hospital
Administrativa PPP
R$ 234 million
Qualification of the
Infrastructure Network
of Elementary Education
of the City
Administrative PPP
R$ 150 million
at the national level.
Another success factor that should
not be overlooked is education. Belo Horizonte is proud to be home to some of the
best institutions of higher education in the
country. In Belo Horizonte we have FDC Fundação Dom Cabral, ranked as the 5th
best business school in the world, in customized courses, according to the 2011
Executive Education ranking of the Financial Times; PUC-Minas, Catholic University
which is the best university in the state according to IGC - General Index of Courses
of the Ministry of Education of Brazil, and
UFMG - Federal University of Minas Gerais,
received for the third consecutive year the
highest IGC classification, combining an
environment conducive to innovation with
a highly qualified pool of applicants.
In addition to the opportunities directly
linked to the services in the mining industry,
base of the economy in the State of Minas
Gerais, the state capital also stands out in
fashion, design and gemstones, business
tourism, construction, automotive industry
and technology and biotechnology - since
1999, BiominasBrazil, located in BH, is a
private institution dedicated to promote
and develop biotechnology and life science
businesses in the country.
But the personnel in the Belo Horizonte
City Hall believe that we must go further.
So, without giving up the continuous improvement of public policies through various cooperative activities, PBH (Belo Horizonte City Hall), based on rigorous short,
medium and long term planning (www.
pbh.gov.br/bhmetaseresultados)
advances to consolidate a broad portfolio of
public-private partnerships that will allow
for a new milestone in the relationship of
the municipal government with the private
sector to promote local development.
In this sense, organizations such as
the centennial ACMinas play a key role in
promoting what is in the best interest of
the city and its government: “Development
with Social Justice”.
The integration between people,
companies, cities, organizations and
countries around the world is now a reality. The speed of technological and communication advances in the globalization
era, a growing interaction between different cultures. Belo Horizonte fits more in
this scene of intense cultural and commercial exchanges.
Municipal International Relations Assistant Secretariat
The inclusion of our capital in the
international community is the direct
responsibility of the Assistant Secretary
for International Relations, linked to the
Secretary of Municipal Development.
The agency shall work so that Belo
Horizonte remains an attractive center
for major international events and will
also undertake actions that may contribute to local economic and social
development.
The Secretariat is responsible for establishing and maintaining relationships
and partnerships with international multilateral agencies, sister cities of the Municipality of Belo Horizonte, among other
networks and organizations, to formulate, plan and coordinate, in conjunction
with other agencies and government entities, policies and actions aimed at raising funds and negotiating with the international bodies and institutions; provide
technical support to the Administration
in the development and drafting of agreements and international cooperation
projects among others.
Secretaria Municipal Adjunta de Relações Internacionais Secretaria Municipal de Desenvolvimento
(Municipal International Relations Assistant Secretariat Municipal Development Secretary)
Address: Av. Álvares Cabral, nº 200, 10th floor - Centro
CEP: 30170-000 Belo Horizonte, MG, Brasil
Telephone: +55 31 3246 0027 / 0031 / 0032
[email protected]
www.pbh.gov.br/international
Twitter: twitter.com/smari_bh
14
15
Minas Gerais breaks
historical records in exports
With support from
the State Government
through investments
in infrastructure, tax
incentives and projects
for the development
of export, products
“made in Minas Gerais” are winning over
the world as the word
gets out.
Minas Gerais has experienced in recent years, a tremendous growth in foreign
trade, not only in total exports and imports
value, but also the diversification of our export basket with the inclusion of new cities
and companies from this state in foreign
markets as well as the number of countries of destination and origin. In 2010, for
the first time in history, the state surpassed
US$31 billion in exports, an increase of
60% compared to 2009.
As the second exporting state (behind
only São Paulo), Minas Gerais had growth
above the national average. In 2010, state
participation in total Brazilian exports
was, on average, 15.5% above the same
period from the previous year (12.8%).
But this state´s trade balance exceeded
US$ 21 billion, a growth of 74.7% compared to 2009 and even higher than the
total balance of the country, which was
US$ 20.27 billion.
The latest data shows this state´s exports for the first half of 2011 totaled US$
18.68 billion - a growth of 51.5% over the
same period in 2010 - 32.6% higher than
the growth of national exports. As a result,
the state share of the total in Brazil´s exports increased to 15.8% (it was 15.5%
in 2010 and 10.3% in 2003). In the same
period, the trade balance of Minas Gerais
was US$ 12.92 billion while the national
balance was US$ 12.98 billion; a growth of
63.2% over the first six months of last year.
The Export Agenda - Although Minas
Gerais is characterized as a major exporter of iron ore and coffee (representing
56.4% of the total exports by the state),
the export basket has been enhanced by
the inclusion of high technology products
and services - particularly in the software
and engineering areas- as well as products with higher added value, including the
entire food chain, especially fruits, pasta
and beverage. In 2010, 258 municipalities
of Minas Gerais exported 2,874 different
products to 182 countries. The main destinations were China (leading for the third
consecutive year), Japan, Germany, USA,
Argentina, Netherlands, United Kingdom,
Italy, South Korea and Belgium in that order. The Middle East has also increasingly
acquired food products, minerals, fashion
goods, industrial products and services
from Minas Gerais.
All this diversification is evidence that
exporting is not restricted to large companies. Indeed, the large companies are a
minority when we analyze all the exporting
companies in the state. Although mining
and metallurgy account for 51.6% of the
export value, of the 1664 companies that
exported in 20091, 1071 were micro and
16
small businesses.
On the agenda of micro and small companies are mainly textiles, metals, gems,
jewelry, electrical, electronics, chemicals,
machinery, and mechanical appliances.
Thus, it is clear that while most products
exported by large companies in Minas
Gerais are commodities, exports from this
states´ micro and small companies are
mainly composed of products with higher
added value, often with a high degree of
industrialization.
Investments - Aware of the evolution
in the new economy, the State Government invests in the development of the
Tancredo Neves International Airport
(AITN), which exceeded seven million
passengers in 2010, with an increase of
domestic connections and opening new
flights to Europe, United States, Central
America and South America. With the
large dimensions of the airport site for
company installations, the International
Airport is the first in Brazil to operate in
the customs-airport industry regime.
Under this new concept, the airport has
aircraft maintenance centers and companies in the aeronautical sector.
All this growth is not by chance. The
State Government has been investing
heavily in export promotion. An example
was the creation in 2004 of Exportaminas.
A public-private development and promo-
tion of this state´s foreign trade, Exportaminas Center was created by the State
Secretariat for Economic Development
and includes in its network of partners
the Institute for Integrated Development
of Minas Gerais (INDI), the Federation of
Industries in Minas Gerais (FIEMG), the
Federation of Agriculture and Livestock of
Minas Gerais (FAEMG), the Brazilian Service of Support to Micro and Small Enterprises of Minas Gerais (MG-SEBRAE)
and Stock Exchange, Commodities and
Futures (BM & F Bovespa).
Projects - The Exportaminas Center
provides free services to Brazilian and
foreign entrepreneurs interested in increasing their international business; it
operates as an intelligence unit, promotes
international trade and manages a series
of projects for the development of state
exports. All projects are coordinated by
the Exportaminas Center in line with the
Minas Gerais Foreign Trade Strategic
Map. The map defines the vision and
establishes a shared strategy for Minas
Gerais State trade by 2030. Minas Gerais
is the only Brazilian state that has a specific strategy for foreign trade. “Under this
umbrella are projects on extensionism,
training, globalization of Micro and Small
Companies, promotion of international
trade, competitive intelligence, exportpilot, as well as projects focused on spe-
cific sectors such as horticulture and the
‘Perishables’, ‘Food Clusters’, ‘Marketing
in the Arab World’ projects, among others,” according to Jorge Leonardo Duarte
de Oliveira, Exportaminas Center Director.
RTPO - The Exportaminas Center is
the first Brazilian institution to participate
in the Regional Network of Trade Promotion Organizations (RTPO), established
in 2008. The network brings together
17 government agencies at sub-national
levels in 13 countries. Their affiliation occurred during the General Assembly in
November 2010 in Johannesburg, South
Africa, and was unanimously approved.
The outlook for 2011 is to participate
in the agenda of cross trade marketing,
professional exchanges and joint funding
resources from international agencies,
among other projects.
Another important project is an Exportaminas participation in social networks like Twitter, Facebook, LinkedIn,
Slideshare and in particular the social
network aimed at partners, students and
professionals related to their projects:
www.exportaminas2030.net. In the network, the participants discuss initiatives
of interest to the state export trade.
1 - We do not have consolidated data for 2011.
17
Exportaminas Center
The Exportaminas Center - linked
to the Special Coordinator for Foreign Trade of the State Secretariat of
Economic Development - was established in 2004 by the State of Minas
Gerais in order to simplify exports,
expanding opportunities for state
products in the international market.
Its mission is to promote sustainable economic development of
Minas Gerais by attending to the
exporters from our state and international commercial promotion of
Minas Gerais State, providing a more
competitive environment, generating
employment, income and reducing
regional inequalities.
As institutional partners, it has
the Instituto de Desenvolvimento
Integrado de Minas Gerais - INDI
(Institute for Integrated Development of Minas Gerais), the BM & F
Bovespa (Commodities and Futures
Exchange), the Federação da Agricultura e Pecuária do Estado de
Minas Gerais - Faemg (Federation of
Agriculture and Livestock of Minas
Gerais), Federação das Indústrias
do Estado de Minas Gerais - Fiemg
(Federation of Industries of Minas
Gerais) and Serviço Brasileiro de
Apoio às Micro e Pequenas Empresas de Minas Gerais - Sebrae (Brazilian Service to Support Micro and
Small Enterprises in Minas Gerais).
Among its services are:
- Provide free assistance to state
entrepreneurs in their exporting efforts;
- Identify new opportunities for integration in the international market of
products and services for companies
in our state;
- Promote the integration of state
enterprises in global markets;
- Contribute to the consolidation of
functional structures within the State
to expand the diversification of the export base;
- Coordinate and / or enter into partnership interests of international trade;
- Contribute to the provision of
new services and improvement of
legislation that aims to add value to
export products and services;
- Provide conditions to increase the
amount exported and imported through
customs units in Minas Gerais;
- Develop projects to increase
the competitiveness of companies in
Minas Gerais;
-Foster relationships and cooperation with national and international
credit;
- Participate in international events
Central Exportaminas
Coordenação Especial de Comércio Exterior - Secretaria de Estado
de Desenvolvimento Econômico
Governo de Minas Gerais, Brasil
(Exportaminas Center
Special Coordination of Foreign
Trade - State Department of Economic Development Government
of Minas Gerais, Brazil)
Address: Av. Afonso Pena, 2910 Térreo, Centro Belo Horizonte MG
BRAZIL. CEP 30130-007
Telephone: +55 31 3269-5500
www.exportaminas.mg.gov.br
email: [email protected]
18
Minas Gerais and China, exploring
new markets: coffee and cachaça
CHINA & MINAS GERAIS
The Sino-Brazilian relations have intensified each year, jumping from US$ 2.3
billion in 2000, growing by approximately
1000%, exceeding the threshold of US$ 20
billion. In addition, the future is even more
promising. Projections indicate that bilateral trade will reach US$ 35 billion in 2011.
With these results, China is now Brazil´s
2nd largest trading partner, and establishes itself as an attractive and competitive
market for the business community. On
the global level, China is the country with
the highest level of growth in the last 25
years and today has become the 2nd largest power in trade volume and the second
in GDP purchasing power parity.
Over the past few years, Minas Gerais
has drawn the attention of foreign investors, especially the Chinese, who invested US$10 billion in this state in FDI between 2003 and 2011. Companies in the
Coffee, Infrastructure and Construction
sectors begin to gain prominence in the
diversification of the relations between
Minas Gerais and China, traditionally oriented toward businesses in the Mining
and Metallurgy sectors.
The Sino-Brazilian relations have excellent prospects and on-going visits of
Brazilian and Chinese delegations open up
opportunities for trade exchanges, investment and partnerships. As an example, in
July 2011, Belo Horizonte, the State Capital, received a delegation of businessmen
and government officials from the city of
Nanjing, a large Chinese financial and commercial hub, seeking partners in
Infrastructure and Transport
sectors. On the other hand,
the Brazil-China Chamber
of Commerce and Industry
(CCIBC) followed a group
of businessmen and coffee
producers in the state participating in the 2011 International Coffee
Industry Exhibition in China.
The corporate mission has identified a large Chinese interest in Brazilian
coffee, but also the need to disclose the
characteristics of different coffees produced in the country since the main obstacle to export coffee to China is the lack
of information from Chinese buyers. In this
sense, CCIBC is developing a project that
maintains contact with about 60 Chinese
importers and passes information about
the coffee produced in Minas Gerais, and
intends to invite them on guided tours of
properties producing coffee in our state.
In addition to coffee, another product
of great interest to the Chinese identified
by CCIBC is high quality Cachaça (alcohol
distilled from sugar-cane, comparable to
rum), the main ingredient of the famous
Brazilian Caipirinha. Minas Gerais already
exports it to Europe with great success.
Several Brazilian brands of Cachaça have
started their integration in Eastern markets, including the Chinese market, and
the results have been very good.
However, a study conducted by CCIBC
showed that changes in the beverage and
packaging are often required to suit the culture and custom of alcohol consumption in
China, as the alcohol content, for example,
which in China is generally higher than in
Brazil. Ypioca Cachaça produced in northeast Brazil, for example, now sells in China
for about US$40 a bottle while Cachaça 51
is marketed in Australia for up to AUS $ 50
In general, it has been observed that
as the various branches of the industry
in this state gained importance, new markets are opened, enabling the creation
of new businesses and stimulating the
economy of the State of Minas Gerais
as a whole. For instance, more than investment for the acquisition of mines and
power stations, the state also received investments for food production. The largest consumer of food in the world due to
its population of over 1.3 billion people,
China has less than 15% of arable land
in its territory, a number that is falling in
recent months due to its expanding population and industry.
Thus, Brazil is one of the strategic
partners to maintain the food supply for
the Chinese and even the Minas Gerais traditional treat, the “pão de queijo” (cheese
bread), is already being introduced into the
Chinese market. However, the good business opportunities are not restricted to
19
typical Brazilian food, but all ingredients in
Chinese cuisine, be it traditional or westernized to some degree.
Brazil-China Chamber of Commerce and Industry
With 24 years in the market, the
Brazil-China Chamber of Commerce
and Industry (CCIBC) has promoted
closer commercial ties between Brazil and China.
In order to increase the business
of our associates, our team works
on several fronts: incoming Chinese
and Brazilian delegations, scheduling
and encouraging meetings, fairs and
events, conferences and business
meetings, training, trade missions to
China, scheduled visits, dissemination of information on Chinese and
Brazilian companies, research in
China from Chinese suppliers and
potential buyers of domestic products, in addition to the disclosure
in our bilingual Portuguese-Chinese
site (www.camarabrasilchina.com.
br), of services and products of our
affiliates.
In each area, the CCIBC unites
its efforts, to help our associates as
much as possible. We customize the
job with our partners according to
their market needs, assisting in the
development of a special strategy for
the Chinese market.
There is a lot that both countries
can offer each other, and we hope
that your company can be a part of
these opportunities through our help
Thus, we are available to answer
your questions and we hope to begin
a prosperous partnership.
Câmara de Comércio e Indústria Brazil - China (CCIBC)
(Brazil-China Chamber of Commerce and Industry)
Address: Rua Felipe dos Santos, 521, 805, Lourdes - Belo Horizonte / MG,
BRAZIL. CEP: 30140-060
Telephone: +55 31 2552-7414
Email: [email protected]
www.ccibc.com.br
21
20
Minas Gerais and India:
A Growing Partnership
INDIA & MINAS GERAIS
Minas Gerais has become a preferred
destination of several companies seeking
to expand their business markets. With
the state’s economy growing at promising rates, the demand for products and
services increases, and those who provide these services must advance and innovate alongside the market in order to
sustain growth. The state has a widely
diversified economy that enables growth
across various sectors. As the second
most industrialized state of Brazil, Minas
Gerais has an economic and financial stability that is directly reflected in the GDP,
the optimum balance of trade results, and
the growth of foreign investments. India,
due to its wide range of products, can
become an even greater partner in the
estate. In 2010, Minas Gerais’ exports to
India totaled approximately US$140 million (FOB), and imports totaled approximately US$150 million (FOB) across various sectors.
Brazil is proud to have become the
second leading market of interest (behind
China) from the BRIC countries (Brazil,
Russia, India and China) in terms of investment industry with private capital and
of venture.
The main areas of potential growth between India and Minas Gerais are:
Mining
The mining sector is an anchor of
Minas Gerais’ economy, and is forecasted
to continue to grow substantially. Minas
Gerais is responsible for 44.05% of Brazil’s mineral production, largely due to
the growing interest of companies in the
exploitation of large reserves of iron ore,
gold, diamond, phosphate, zinc, and ornamental rocks, amongst others. Influential
mining companies that are already present
in Minas Gerais include ArcelorMittal, Ferrous (NMDC), and BEML, amongst others.
Information Technology - IT
The IT sector in Minas Gerais is growing at a rapid pace. In the last seven years,
the sector has grown by 385%, and in
2010 alone, the sector’s revenues reached
US$1.6 billion. Over the course of 2007
- 2010, US$ 9 million was invested in
projects of Local Productive Arrangement
(APL). Because of the World Cup in 2014
and subsequent necessary adjustments
that Belo Horizonte and the state of Minas
Gerais will implement, the IT industry is
increasingly investing in infrastructure
and skilled manpower to meet the growing demand from the companies of Minas
Gerais. As companies from Minas Gerais
are increasingly becoming aware of the
necessity of technology in modernizing
and leveraging their business, the IT sector in this state has experienced remarkable growth, and many high-profile Indian
companies have established subsidiaries
in Belo Horizonte, such as Aptech, a company that develops training activities for
professional careers in IT since 1986; and
Infosys, an IT company with an extensive
range of products, and recognized worldwide for its work.
Automobile
Minas Gerais is home to the second
largest fleet of vehicles in Brazil, representing about 30% of the national production.
The presence of the largest automobile
companies of Brazil in Minas Gerais has
attracted a multitude of auto parts manufacturers to Minas Gerais. Both Fiat and
the Indian company Tata Motors have
signed partnerships in this sector.
Beverage
The exportation of the Brazilian drink
“Cachaça” has grown significantly in recent
years, and Minas Gerais, which produces
a well-known and artisanal “Cachaça”,
has brought numerous investments to this
sector, spurring growth and job creation in
many inner cities which are home to
concentrations of large numbers
of producers. In 2010, exports
of “Cachaça” from Minas Gerais
accounted for 10% of the country’s
total exports of this product. Recently,
India has become one of the destinations of the “Cachaça” exports from
Minas Gerais.
Steel Production
Minas Gerais is responsible for
35.6% of the total Brazilian production of crude steel. Due to the restructuring processes of many companies which
allows for reduced costs and greater
added value to production, Minas Gerais’
steel sector offers competitive prices and
flexibility in trading. The five largest Brazilian steel producers are located in Minas
Gerais.
INDIA BRAZIL CHAMBER OF COMMERCE
The India-Brazil Chamber of Commerce (IBCC) was created in November
of 2003 with the support of the A.H.
Indian Consulate in Minas Gerais. The
Chamber has as its main goal to instigate and consolidate commercial, industrial, agricultural and economic relations
between India and Brazil, celebrating
agreements, developing business, and
orienting and helping its associates. In
this sense, the IBCC offers specific professional assistance in all relative matters
concerning the Brazilian-Indian relations,
putting our operational infrastructure at
our associate’s services.
As a competitive advantage, the IBCC
has strategic contacts in India and Brazil,
profound knowledge of both cultures, and
great capacity to explore the Indian market. Throughout the year, the Chamber
promotes numerous meetings which aim
to consolidate the relations between both
countries and to organize missions to India.
The IBCC has been influential in initiating and establishing many successful
cases of joint ventures between Brazilian
and India companies. The results of our
work can be seen in the joint venture between the Brazilian group EMBRASIL and
the Indian group Sabero; Marcopolo’s
partnership with Tata Motors to construct
the biggest bus plant in Lucknow, India,
and other important achievements.
Câmara de Comércio Índia- Brasil
(India-Brazil Chamber of Commerce)
Adress: Rua Paraíba, 523 - Funcionários
CEP: 30150-321
Telephone: +55 31 3264-5444
email: inteligência@indizbrazilchamber.
org / www.indiabrazilchamber.org
22
Minas Gerais is ready to lead
the economic integration
between Brazil and Africa
MOZAMBIQUE & MINAS GERAIS
In the seventeenth century, the Bandeirantes (Brazilian pioneer explorers)
started exploiting the Brazilian coast in
search of mineral resources, especially
gold. In their journey for wealth, the explorers discovered a region rich in fertile
soil, with a lush rainforest and abundant
mineral resources. They named the
region Minas Gerais. More than three
centuries later, Minas Gerais remains a
potential producer of mineral resources
and hosts the largest companies of the
segment operating in the State.
Occupying about the same area as
France, and the second largest population in the country, with approximately
20 million inhabitants spread over 853
municipalities, Minas Gerais calls the
world’s attention especially for its natural
beauty. Its strategic location, fertile soil,
natural resources and a well-developed
agribusiness sector are other reasons for
the investment success in this state.
The territory of Minas Gerais also
contributes to the development of the region, for it is one of the country’s largest
with an area of 588,384 km2, the fourth
Brazilian state in size with one of the
highest rates of population participation
in Brazilian GDP (approximately 11%).
Since the beginning of the twenty
first century, Minas Gerais has had one
of the highest rates of GDP growth in
Brazil, twice the national average over
the same period. This state also has a
diversified economy. The service sector
accounts for 58% of the GDP, while the
industrial segment represents 32% and
the primary sector is responsible for the
remaining 10% (2010).
In agriculture the highlights are sugar
cane, coffee, soybeans, corn, pineapple,
onions, beans, bananas among others.
In livestock, the greatest performers
are cattle, swine and poultry. In addition to the primary sector, Minas Gerais
has one of the largest industrial parks in
Brazil, which propelled this state to a position among the largest GDPs in Latin
America, representing approximately
10% of the national GDP in 2010. Behind only São Paulo and Rio de Janeiro,
Minas Gerais stands out in the mining
industry and aggregated sectors such as
metallurgy. Other important industries
are automobile and automobile parts
manufacturing, textile, chemical and
construction sectors.
The service sector is the most developed in the region, as the State’s Capital,
Belo Horizonte, with over 5 million inhabitants, is a national reference in Information Technology. The financial and business management sectors in the state are
also a reference, given the presence of
some of the most prestigious universities
and business schools in Latin America.
Due to the impressive development of
its GDP in recent years, its range of different sectors attractive to investment and
its similarities, geographical and cultural,
with Mozambique and Angola, Minas
Gerais was chosen to host the Headquarters of the Chamber of Commerce, Industry and Agriculture Brazil-Mozambique.
Minas Gerais is in second place among
the Brazilian states that has a relationship
with Mozambique, with an export rate of
15.5% of Brazil’s total. And the overseas
sales are still growing, both with respect to
trading partners about the goods / services
and companies. In 2010, this increase was
60%, recording an amount of US$ 31.2 billion, a new annual record.
23
As the years go by, relations between
Brazil and Mozambique have intensified,
and there is still enormous potential for
promoting this relationship. Projections
indicate that bilateral trade and investment between the two countries will increase sharply in coming years.
Minas Gerais presents perfect conditions to be the integration center between Brazil and Africa, and it is now
globally recognized as the world center
for services in the Portuguese language
countries. Minas Gerais is the perfect
destination for foreign investments and
to accommodate offices, companies
and global organizations interested in
investing in Brazil.
Brazil - Mozambique Chamber of Commerce, Industry and Agriculture
The main objective of the institution is to strengthen relations between
Brazil and Mozambique through receptions, advisory services to Brazilian and Mozambican delegations,
trade fairs and promotional events,
business roundtables, training and
individual business missions, scheduling visits, dissemination of business/government information in both
countries, in addition to publishing on
the website the Products and Services
of Partners and Associates, focusing
strictly on business deals.
Mozambique, according to the authoritative British weekly newspaper
The Economist, in a study released in
early 2011, had the 8th highest rate
of economic growth worldwide, with
7.9% in the first decade of this century. For the next 5 years, the study indicates that the country will be among
the 4 countries with the highest average rate of world economic growth.
In each area, CCIABM joins efforts
to meet in the best possible way the
Brazilian and Mozambique business
community. We do a custom job with
our partner companies, according to
their needs, assisting in the expert development of its strategy to markets
of its interest.
Câmara de Comércio, Industria e Agricultura Brasil-Moçambique
(Brazil-Mozambique Chamber of Commerce Industry, and Agriculture)
Address: Rua da Paisagem, 220, Belvedere
Belo Horizonte / MG - BraZIL
CEP: 34000-000
Telephone: +55 31 3243-3012
www.cciabm.com / twitter: @CCIABM
Other Locations - Brasil: Brasília/DF - Belo Horizonte/MG - São Paulo/SP Porto Alegre/RS - Goiânia/GO - Fortaleza/CE Moçambique: Maputo
25
24
A new vision on trade
relations between Minas
Gerais and Portugal
portugal & MINAS GERAIS
Gone are the days when Minas Gerais
exports were based only on primary products with low added value to the world,
and in particular to Portugal. Gone are the
days that imported Portuguese products
were only wine, cod, olive oil and olives.
As the saying goes “Time passes,
time flies,” and it has been so for the
economies of Minas Gerais and Portugal.
Both evolved in its list of export products,
and began to add more value to products
produced by them. This is due to investments made by both governments.
It is an indisputable fact that the safe
haven exports from Minas Gerais to the
world is still mining activities. However,
when we look at our list of exports, we find
a huge variety of industrial products with
high value added in sectors ranging from
consumer electronics, footwear, apparel,
and more recently, products generated
by agribusiness, especially of fruits from
Jaíba Valley, on the State’s northeast.
On the other hand, Portugal has also
increased the number of products it exports, also with high added value products, but not forgetting the traditional and
appreciated Portuguese wine, cod, and
olive oil. Still, the differences evident in the
trade balance between Minas Gerais and
Portugal is clearly favorable to our state.
In recent years we have seen a major
process of globalization in Portuguese
companies from diverse industries, the demand for bigger and more stable consumer markets, lower costs, etc., starting to
act globally. So it has been with construction, IT, cement, real estate, hotel services,
financial services, etc.
Today we can see Portuguese companies excelling in the world market in many
areas, and several of them arrived in Brazil
and Minas Gerais. Why is this?
It is a fact that the Brazilian economy
has experienced a moment of strong and
sustained growth. The current solid foundations of the Brazilian economy associated with an expanding domestic market,
both in quantity and in purchasing power
in general; and Minas Gerais, which has
grown above the national average, in particular. These are the reasons why we are
attracting many Portuguese investments.
On the other hand, the economic and
financial crisis that hit Europe, in spite of its
severity, can make a difference to Brazilian
companies that seek the globalization of its
activities, the basis of their survival in the
global market. In other words, good busi-
We can highlight sectors where Portugal has emerged as the generation of alternative energy, providing services in information technology, design, templates,
etc. Therefore, we can observe that both
Minas Gerais and Portugal are rich in opportunities for investors.
For the Portuguese investors that target
the Brazilian market, Minas Gerais offers
opportunities as Public Private Partnerships (PPPs) for the modernization of public transit systems (Light Rail, BRT, Metro),
modernization of highways throughout the
ness opportunities can be found. At this
point, we firmly believe that Portugal could
be the safe haven for investors in Brazil,
focusing on the European market, and the
Portuguese speaking countries.
Since its entry into the European Common Market, Portugal has invested heavily
in modernizing and improving its road, rail,
port, and airport infrastructure. It also invested heavily in its communication and power
generation infrastructure. And most importantly, invested heavily in its human capital!
Today, Portugal has one of the best
qualified workforces in the European Community, with outstanding professionals in
several new areas in the new Portuguese
industry, structured from an excellent
school system, with programs designed to
qualify them and continually enable them,
in several segments. It also carried out important work to simplify the bureaucracy
of the economy, reducing and streamlining processes, time and cost for start-ups,
and modernizing the tax system.
state, airports, power generation (hydro /
PCH ‘s, wind , photovoltaics, gas, biofuels), health services, hotels, convention
centers and events. Moreover the technological parks of Santa Rita do Sapucaí, the
aeronautical park in Lagoa Santa, furniture
from Uba, Nova Serrana footwear, and
agribusiness (West, South, Jaíba Valley
etc.) further strengthen the menu of options that Minas Gerais has to offer.
For state investors looking for good
opportunities, the timing could not be
better. Sectors such as metal-mechani-
cal, equipment for power generation, IT
services, real estate, tourism, distribution centers, academic, among others,
offer excellent opportunities for those
who want to invest in the form of acquisition, total or partial transfer of technology, and human resources training and
qualification.
Time is of essence! It’s time for Portugal to rediscover Minas Gerais, and vice
versa, in the search for strong and sustainable growth of trade relations between
the two countries.
Portuguese Chamber of Commerce in Brazil - Minas Gerais
The Portuguese Chamber of Commerce in Brazil - Minas Gerais, founded
in 1996, it is an association dedicated to
the growth of commercial, technological, social and cultural relations between
Minas Gerais, Portugal and Portuguesespeaking countries. We support the
achievement of international business,
bringing companies together that are
seeking a competitive insertion in the
global scenario.
In this sense, the Chamber assumes an increasingly dominant role
in strengthening economic relations
between Minas Gerais, Portugal and
all businesses of Portuguese origin.
The common elements that unite the
two countries, especially the language,
culture and history, clearly favor the
achievement of new business opportunities and generate promising opportunities. Add to this the prime location of
Portugal, considered the most strategic
point of Europe, which allows the development of globalization in the entire
European Union, due to the existence of
a common economic market.
Among the objectives of the
Chamber, are the encouragement and
strengthening of trade and cultural exchange between the two countries, as
well as creating business opportunities
in various industries: exports, imports,
technology, food, transportation, infrastructure, construction, financial inspection, tourism and health.
Our mission is to promote a network in Minas Gerais of international
business-generating opportunities in the
Portuguese speaking countries.
Câmara Portuguesa de Comércio no
Brasil - Minas Gerais
(Portuguese Chamber of Commerce in
Brazil - Minas Gerais)
Address: Av Contorno, 4.520, 7th floor,
Funcionários - Belo Horizonte / MG BRAZIL
CEP:30.110-916
Telephone: +55 31 3213-1557
e-mail: [email protected]
26
Agribusiness: Opportunities
for Foreign Investors
italy & MINAS GERAIS
Minas Gerais is a traditional farming state. It is the largest milk and coffee
producer in Brazil and holds the second
largest cattle herd. Also noteworthy is the
national production of corn, beans, soybeans, potatoes, garlic, carrots, tomatoes,
fruits and eggs. It is the largest national
producer of reforested coal and planted
forests in the country.
The state has a population of about
19,597 million inhabitants (2010 census), with a territory of 588,383.6 square
kilometers and is the first state to have
its Gross Domestic Product (GDP) calculated monthly by the Center for Advanced
Studies in Applied Economics (CEPEA
). The GDP related to agribusiness in
Minas Gerais represents about 35% of
the state’s total, and 12% of the Brazilian
agribusiness GDP.
Minas Gerais is the leading producer
of coffee, with about 50% of the national
production. The State also leads in the
milk industry, responsible for one third
of the national production. It is also the
second largest producer of eggs. The
State has the second largest cattle herd,
with 22,4 million, and the largest herd
of horses, with about 800,000 animals.
The state also leads the production of
Cachaça and is famous nationwide for its
cheese production.
With the main focus on the agricultural
opportunities in Minas Gerais, the state
has established itself as one of the most
significant development centers of Brazil, when, in 2010, it received the “Quattro Motori per l’Europa” (Four Motors for
Europe) mission, which featured the participation of 12 European companies and
about 40 representatives from six European countries in politics, research institutes
and major universities.
The Association “Four Motors for Europe” is the union of the most important
regions in Europe, when it comes to high
development and technology, whose aim
is to contribute to the globalization of their
business and their citizens. The Association also foresees for cooperation in science, research, education, environment,
culture, and other sectors. The purpose
of this Association is to join forces to increase the economic growth of four regions which are: Lombardy (Italy), RhôneAlpes (France), Catalunya (Spain) and
Baden-Württemberg (Germany) and has
a partnership with the regions of Flanders
(Belgium) and Wales (United Kingdom).
In 2010, the presidency of this Association was the Lombardia Region and, ac-
cording to an agreement signed in 2008 between the Government of Minas Gerais and
the Lombardy region, the State was elected
as the target of this initiative.
The mission program, sponsored by
the “Four Motors for Europe” Association
in partnership with the Italian Chamber of
Minas Gerais, featured an: Opening Seminar
- with an economic presentation of Minas
Gerais and the “Four Motors of Europe”,
followed by Technical Seminars focused on
agribusiness opportunities in Europe and in
Minas Gerais. Technical and scientific workshops were also performed - focused on
academia, B2B, scientific and institutional,
including a meeting with the Minas Gerais
State 2014 World Cup committee.
The Technical Seminars explored issues of excellence in European regions
and also an overview of the State of
Minas Gerais on the matters raised by
the Europeans, such as the integrated
management of agribusiness products,
plant biotechnology and industrial traceability of food products of animal origin,
management of the milk network for the
European and international markets and
the effects of the financial crisis on the
international trade in meat. Speakers included professors from renowned institutions and researchers from major European technology centers in Minas Gerais.
27
Italian-Brazilian Chamber of Commerce, Industry and Craftwork of Minas Gerais
We define the Italian Chamber of
Commerce of Minas Gerais as a business environment, focusing on the
promotion of global trade. A Chamber
recognized by the Italian government
since 1998, which promotes bilateral
relations between Italy and Brazil, as
well as with the relationships between
all major markets.
The Chamber is part of a network
of more than 75 Italian Chambers of
Commerce in the world, supporting
approximately 25,000 members in 48
countries. By promoting services and
products at the global level, this network
becomes central in the globalization process of the companies.
To boost cooperation in trade, the
Chamber offers customized services to
meet the needs of businesses. Through
exhibitions, seminars, missions, and
match making events, the associate
companies update and expand their social network. The Italian Chamber prospects business opportunities, support
for technology transfer and joint ventures. In addition to this, it is committed to sustainability, judging as a smart
choice for a management committed to
the future.
The Italian Chamber of Minas Gerais
is therefore a direct and strategic link between the Brazilian companies, the Italian
companies and world trade.
Câmara Ítalo Brasileira de
Comércio Indústria e Artesanato
de Minas Gerais
(Italian-Brazilian Chamber of Commerce, Industry and Craftwork of
Minas Gerais)
Address: Rua Piauí, 2019, 5th floor,
Funcionários - Belo Horizonte / MG
- BRAZIL
CEP: 30150-321
Telephone: +55 31 3287-2212
www.italiabrasil.com.br
Email: [email protected]
28
Minas Gerais: The opportunities
are here to capture now
FRANCE & MINAS GERAIS
Although the economic and financial
environment of major developed countries are marked by the financial crisis,
Brazil appears as an increasingly promising market. Our institutions are stable and
the economy and finance of the country
follow the same line.
The country is open to foreign investment. Almost all the large French industrial groups are present here, often in a
position as market leaders. The top 1000
companies in Brazil are subsidiaries of
multinational groups. The domestic market is huge: nearly 200 million inhabitants of whom 30 million just came out
of poverty in recent years. Domestic
consumption, which represents 80% of
Brazil’s GDP, is what mainly propels our
growth.
Therefore, Minas Gerais, which asserts itself in this country with a growth
differential greater than the national average, has the potential to attract companies from around the world. Public
investments are growing at around 20%
per year. The infrastructure of the state is
in the process of modernization through
a public entrepreneur administration.
Minas Gerais was the first Brazilian state
to adopt and ratify the Law on Public-
Private Partnerships (PPP) agreements
between the public and private sectors
to develop various sectors, particularly
with a view to the 2014 World Cup and
the installation of metro branches, improving roads, building prisons, etc.
Minas Gerais has the largest highway
network (269.545,5 km) and the second
railroad network in this country, which
connects the State directly with 4 ports
(Vitoria, Sepetiba, Rio de Janeiro and
Santos), greatly assisting in the implementation of new business.
The state is also the first to propose
the concept of industrial airport with the
Tancredo Neves International Airport:
importing and exporting companies domiciled around the airport will benefit
from tax exemptions, special conditions
and the metropolitan region is ready to
accommodate development projects for
the next 30 years. The State concentrates
numerous business opportunities in the
most promising sectors.
Our list of export products includes
metallurgical products, coffee, gems,
footwear and mechanical products. We
have a rich agri-business industry, which
represents 33,3% of the State GDP. The
country has the one of the largest hydroelectric potentials in the world (255
million KW) largely produced in Minas
Gerais. The Vale group is the second
largest producer of minerals and Embraer is the 3rd largest aircraft manufacturer in the world.
The relationship between France and
Brazil is dynamic in terms of both trade
(+33% in the first half of 2010) and in
terms of direct investments: France was
the 5th direct investor in Brazil in 2010.
France invests more in Brazil than in any
other BRIC country. The market and cultural proximity are great attractions for
French companies and, when well orchestrated and combined into a business
project, the French and Brazilian cultures
tend to form a mutually beneficial partnership. This means that the possibilities
are vast in both directions.
Minas Gerais, because of its geographical position, is a gateway to Brazil
and the vastness of its territory is focused in several areas. As Minas is to
Brazil, the region of Nord Pas de Calais,
which has several trade agreements with
our state, is to France, because of its location and logistical infrastructure, acts
as an extremely important gateway for
the market not only in France but for all
of Europe.
The development of mineral and steel
centers in our state (68 billion U.S. dollars investment in new units expected
between 2008 and 2015) and modernization of the highway and railroad in-
frastructures are probably the two economic sectors most attractive to foreign
investors.
The France-Brazil Chamber of Commerce (CCFB) is present in the state and
in all initiatives aimed at increasing trade
between the two countries. We feel that
this is particularly suitable moment and
we are available to all who are interested
in investing in our state, promoting contacts, searching data, bringing institutions together and working effectively in
the development of our business agenda.
29
France-Brazil-Minas Gerais Chamber of Commerce
Founded just over 100 years ago,
the France-Brazil Chamber of Commerce now has over 1000 members
between French and Brazilian companies of all sizes, areas and individuals.
We are an association that aims at
the development of economic, financial, commercial, industrial, technical,
cultural and social links between France
and Brazil. In Brazil, CCFB has offices in
São Paulo, Rio de Janeiro, Paraná and
Minas Gerais, thus creating a network
of joint action in Brazil.
We provide services to members
located in this country and represent
the French business community.
In Minas Gerais, CCFB supports
French companies in their first steps
stimulating associations, businesses
and partnerships.
As a privileged dialogue partner for
French business organizations, such as
Association des Chambres Françaises
de Commerce et d’Industrie (ACFCI),
Union des Chambres de Commerce et
d’Industrie Françaises à l’Etranger (UCCIFE), Mouvement des Entreprises de
France (MEDEF) and partner in several
regional chambers of commerce and
industry in France, we seek to foster
relationships between members and
these organizations.
The CCFB also includes the Council of
Chambers of Commerce and Industry of
the European Union, which favors a united
action of European business in Brazil.
Câmara de Comércio França-BrasilMinas Gerais
(France-Brazil-Minas Gerais Chamber of Commerce)
Address: Avenida do Contorno, 4520,
7th floor, Funcionários - Belo Horizonte / MG - BRAZIL
CEP: 30110 916
Telephone: +55 31 3213-1576
Fax.: +55 31 3213-1577
[email protected]
www.ccfb.com.br
MINAS GERAIS
30
FOTO BH TEC
Minas Gerais’ R&D
R&D and Education
In recent years the Research & Development profile of Minas Gerais has
changed very fast. The responsibility
for this change is given mainly by the
increase in public resources devoted to
science and technology and partnerships
with the private sector.
The main government organization for
this movement, which created an environment ripe for innovation, is the Minas
Gerais State Research Support Foundation (Fapemig). In 2010, the institution
received nearly 40% of the resources provided by the Government of Minas Gerais
for science and technology. The amount
provided was nearly US$ 150 million of
the total US$ 394 million invested, 13%
more than in 2009.
The challenge faced by FAPEMIG and
other institutions working in the state is to
create a sustainable and sustained innovation culture in the private sector. The main
objective is to bring scientific knowledge
to industry to perfect it. This action would
provide a more competitive industry in
Minas Gerais, generating more jobs and
making businesses more profitable.
The major industries in the state
have a productive mission with innovation. Agribusiness, software and metal
mechanic companies come from sectors receptive to innovations from bio-
technology, information technology and
nanotechnology. The scenario in the
State of Minas Gerais is further strengthened with the establishment of three
state technological centers: the BHtec of
Belo Horizonte, the state capital, with a
multi-sectorial mission, the PVT-Centev
of Viçosa, focusing on agribusiness, and
the ParCtec Itajubá, focusing on energy.
In addition to the technology centers, Minas Gerais has some of the best
schools in the country, which also act as
31
referral centers for domestic R&D.
The Federal University of Minas Gerais
(UFMG) was mentioned in the first QS University Rankings: Latin America, as the third
in Brazil. Fundação Dom Cabral, already
mentioned more than once throughout this
publication was considered in 2011 as the
5th best business school in the world. This
is an institution that began and was developed in the heart of Minas Gerais. For more
information about Fundação Dom Cabral,
read the article that follows.
BH-Tec Building Project: 90,525 square feet
Fapemig - Fundação de Amparo à Pesquisa do Estado de MG (Minas Gerais
Research Support Foundation)
Rua Raul Pompéia, nº101 - São Pedro Belo Horizonte / MG - BRAZIL
CEP: 30.330-080
Telephone: +55 31 3280-2100
www.fapemig.br
Source: Valor Econômico Newspaper; Minas Gerais Secretariat of Science,
Technology and Higher Education; ACMinas Economics Department. *Forecast
BH-Tec Parque Tecnológico de Belo
Horizonte
(BH-Tec Belo Horizonte Technological
Park)
Rua Professor José Vieira de Mendonça,
770 - Engenho Nogueira Belo Horizonte MG- BRAZIL
CEP: 31310-260
Telephone: +55 31 3409-7391
www.bhtec.org.br
Secretaria de Estado de Ciência, Tecnologia e Ensino Superior de Minas Gerais
(Cience, Techology and High Education
Secretary of Minas Gerais)
Cidade Adminstrativa Presidente Tancredo
NEves - Rodovia Prefeito Américo Gianetti,
s/n - Serra Verde - Edifício Gerais, 8th floor
- Belo Horizonte / MG - BRAZIL
CEP: 31.630-901
Telephone: +55 31 3915-5124
www.tecnologia.mg.gov.br
Fundação Dom Cabral
(Dom Cabral Foundation)
Av. Princesa Diana, 760, Alphaville, Lagoa
dos Ingleses Nova Lima / MG - BRAZIL
CEP: 34000-000
Telephone: +55 31 3589 7300
www.fdc.org.br
UFMG - Universidade Federal de MG
(Federal University of Minas Gerais)
Av. Antônio Carlos, 6627 - Pampulha Belo Horizonte / MG - BRAZIL
CEP: 31270-901
Telephone: +55 31 3409.5000
www.ufmg.br
PUC Minas - Pontifícia Universidade
Católica de Minas Gerais
(Catholic University of Minas Gerais)
Av. Dom José Gaspar, 500 - Coração Eucarístico - Belo Horizonte / MG - BRAZIL
CEP: 30535-901
Telephone: +55 31 3319-4444
www.pucminas.br
32
Executive Education
with overall quality
Campus Aloysio Faria
agement topics, FDC conducts hundreds
of programs customized to meet specific
demands and challenges of companies,
government organizations and the third
sector. A specialty of the Fundação Dom
Cabral business partnership are companies that gather in groups to exchange experiences and best management practices
which is also a consortium manner to hire
our educational solutions.
Working with companies and not just
for them is a hallmark philosophy and work
practice at FDC. Our faculty is made up of
Brazilian and foreign professors trained
in the best schools in the world with extensive experience in the corporate world
as entrepreneurs, executives, consultants
or researchers. A group of managers and
program directors meet business chal-
Centro Alfa - Guilherme Bergamini
Fundação Dom Cabral, was established in 1976, and is considered one of
the leading business schools in the world.
Through a network of cooperation with
schools in Latin America, BRICs, Europe
and the United States it offers its educational solutions for business development
in several countries in the world. Fundação Dom Cabral provides the main Bra-
zilian and multinational corporations with
development and training programs for
their managers and executives. The AMBA
and EQUIS certifications were obtained in
recognition of the worldwide standard of
programs and courses offered by FDC.
Ranked 5th in executive education by the
Financial Times in 2011 and 1st place in
the America Economia magazine attest to
the recognition by companies and executives participating in the quality and applicability of the solutions developed by FDC.
Annually about 30,000 business owners and executives participate in various
programs offered by FDC in Brazil and
elsewhere. In addition to a diversified portfolio of specialized courses, MBAs and
open programs on various business man-
lenges after a scheduled meeting to understand their challenges and effectively plan
the best solutions.
Our programs are developed and incorporate knowledge from the Centers
for Knowledge Generation which focus on
major themes of contemporary issues and
challenges to companies such as Leadership, Innovation, Sustainability, Corporate Governance, International Business,
among others. The Nuclei are the work
area of a competent and experienced team
of teachers and researchers, that conduct
research, develop methodologies and create new programs and solutions to the
needs of the organizations.
To meet a growing demand for information about the opportunities and challenges of investment and trade with Brazil,
33
FDC has received groups of entrepreneurs,
executives and foreign MBA students offering courses tailored to the interests of
a platform which we call Brazil Business
Environment. Lectures, workshops, lectures, interviews and business managers
and public visits to companies that offer
this program are lectured in English and
Spanish.
Fundação Dom Cabral - Campus Aloysio
Faria
Av. Princesa Diana, 760, Alphaville, Lagoa
dos Ingleses - Nova Lima / MG - BRAZIL
CEP: 34000-000
Telephone: +55 31 3589 7300
www.fdc.org.br
35
The Minas Gerais’
colonial circuit
Tourism & Culture
Estrada Real (Royal Road)
The Estrada Real (Royal Road) was
created by the Portuguese crown in the
seventeenth century with the intention of
monitoring the circulation of wealth and
goods transiting between Minas Gerais
- gold and diamonds - and the coast of
Rio de Janeiro - capital of the colony from
where the ships returned to Portugal. As
it was forbidden to make the journey by
another route, the road was used by emperors, soldiers, merchants, musicians,
adventurers and intellectuals, who in addition to products, took ideals, such as how
to transform Brazil into an independent
republic.
Today, the Estrada Real Institute (IER)
is a nongovernmental organization (NGO)
established in 1999 by the Federation of
Industries of Minas Gerais (Fiemg). A team
of technical experts in tourism transformed
the old road, open for over 300 years by
the Portuguese Crown, in a recognized
tourist destination in Brazil and abroad. Today, the ER (Royal Road) passes through
199 municipalities - 169 in Minas Gerais,
22 in São Paulo and 9 in Rio de Janeiro
- and is 1600 km long. With the strengthening of the productive chain of tourism,
the IER (Royal Road Institute) seeks sustainable development of municipalities of
the Royal Road. The demand generated
by millions of visitors to this destination is
able to move more than 50 industry sectors, creating opportunities for profitable
businesses, more jobs and income, contributing effectively to the reduction of social inequalities in Minas Gerais and Brazil.
For more information go to:
site.er.org.br
Ouro Preto
The capital of Minas Gerais until 1897,
Ouro Preto is a fabulous seventeenth
century town nestled in a deep valley of
mountains in Minas Gerais. Anachronistic,
amazing, fascinating... The feeling for the
first time visitor is excitement! Suddenly it
seems that time travel is a reality. A pilgrimage of the living is mixed with a procession
of the dead. Historical and anonymous figures mingle with the contemporary.
The city, center of gold mining in Colonial Minas Gerais, has more than 20
churches and temples of baroque architecture, each with its own history.
For its value, Ouro Preto was declared
a National Monument City in 1933. The
interest and world recognition came in
1980, when UNESCO declared it a World
Heritage Site.
For more information go to:
www.ouropreto.org.br
36
37
37
Museums in Belo Horizonte
Inhotim - Institute of Contemporary Art and Botanical Garden
Inhotim is a unique and impressive tourist destination. Only 60 km from Belo Horizonte, it offers a collection of works of art,
displayed outdoors, as well as in both temporary and permanent galleries. It is situated
in a botanical garden with rare plant species,
arranged landscape, five lakes and a preserved forest reserve. In this space, research
projects are developed in the environmental
area, educational activities and programs of
inclusion and citizenry for the population that
surrounds it. The Inhotim Institute is a public
interest civil society organization.
Contemporary Art
The art collection houses over 500
works by artists such as Adriana Varejao,
Helio Oiticica, Cildo Meireles, Chris Burden, Matthew Barney, Doug Aitken, Janet
Cardiff, Rivane Neuenschwander, among
others. Inhotim offers conditions unique
for the artist to perform their work.
Botanical Garden
Covering an area of 97 hectares (approximately 240 acres), Inhotim is a
botanical garden with a collection of approximately 4800 species in cultivation,
and 145 acres of preserved Atlantic forest.
Most notable are the collection of palms,
the world’s largest number of species, and
the collection of the Araceae family, both
with global reach, but with emphasis on
Brazilian species.
Inclusion and Citizenry
The Inhotim Institute has become a key
vector for the socio-economic development of its municipality, Brumadinho, and
its surrounding areas. Projects like Inhotim
Encanto e Coral and the musical initialization appreciates the region´s vocation
and gets the children, youth and adults
involved. There is also dialogue with entrepreneurs in the region to increase their
economic activities and projects in partnership with local government.
Gastronomy
With several dining options, Inhotim offers
a diverse cuisine for you to try. Restaurants
featured are Tamboril and Oiticica, which offer
an integrated environment with the botanical
garden and an international menu.
visit Inhotim
Inhotim is located in the town of Brumadinho, 60km from Belo Horizonte on
Highway BR-381 and 70 km if you travel
on Highway BR-040. Busses travel nonstop from Belo Horizonte to Inhotim and
back, the busses depart from the Belo
Horizonte Bus Station,
Tuesday through Sunday and holidays.
Information: +55 31 3419 1800
www.inhotim.org.br
Pampulha Art Museum
Pampulha Old Casino, a member of
architectural Pampulha, focuses on
trends in various artistic exhibitions,
research and conceptualization. In
its collection, there are works of
contemporary Brazilian art. It is one
of the buildings built by Oscar Niemeyer around Lake Pampulha, Belo
Horizonte, Minas Gerais, Brazil, at
the request of then Mayor Juscelino
Kubitschek in the early forties.
Address:Av. Otacílio Negrão de Lima,
16585, Pampulha - Belo Horizonte /
MG - BRAZIL
Telephone: +55 31 3277 7996
www.map.art.br
Arts and Crafts Museum
The Arts and Crafts Museum - MAO
- is a cultural space that houses and
disseminates a collection representative of universal work, arts and
crafts from Brazil. A meeting place of
the worker with himself, with his own
history and his own time.
Address: Praça Rui Barbosa, s/nº,
Cidade Jardim - Belo Horizonte / MG
- BRAZIL
Telephone: +55 31 3248 8600
www.mao.org.br
EBX-Mine and Metal Museum
Minas Gerais and its history: Learn
the process of economic, social and
cultural development that has mining in its state´s name and find an
important mining and metallurgy
collection. With a lot of technology,
visitors will be fascinated with this
universe so rich and its importance
to human life.
Address: Circuito Liberdade Praça
da Liberdade, s/nº - Belo Horizonte
/ MG - BRAZIL
Telehone: +55 31 3409 8350
www.circuitoculturalliberdade.mg.gov.br
TIM UFMG Knowledge Area
The fascinating world of science
and knowledge awaits you in this
area. One of the places preferred by
younger audiences presents a fun
and interactive place. Visit a planetarium which is among the most
modern in the world and an astronomical observatory in the central
area of Belo Horizonte. The exibit
“Too Human” is another interesting
attraction for visitors to the Freedom
circuit.
Address: Praça da Liberdade, s/nº Belo Horizonte / MG - BRAZIL
Telephone: +55 31 3409 8350
www.circuitoculturalliberdade.mg.gov.br
Museu Abílio Barreto
Opened un 1943, Museu
Abílio Barreto is an institu-
tion which holds a significant part
of the History of Belo Horizonte. Its
function is to collect ant preserve
items which contribute to the comprehension of the socio-historic dynamics of the city, with a multiple
and revealing collection of the several paths taken by the capital and its
citizens. Its purpose is to make public the access to preserved cultural
items, fomenting the participation
of citizens in the construction of the
city’s memory.
Address: Avenida Prudente de Morais, 202, Cidade Jardim
Telephone: +55 31 3342-1268
Associação Dos Amigos do Museu
Histórico Abílio Barreto:
www.amigosdomhab.org.br
39
How to Invest in
Brazil & Minas Gerais
foreing capital & legislation
Brazil currently lives, a unique moment
in its history. By taking an opportunity of the
solid macroeconomic stability of this century,
Brazil, which was claimed to be a high risk for
investors, became in 2011, the fourth largest
recipient of direct external investment in the
world. By matching sustainable growth, fiscal balance and investments in infrastructure,
Brazil ranks third among the safest countries
for investment in the Americas, according to
the risk grading agency Standard&Poor’s, in
addition to being considered an ascension
symbol of developing countries. The fifth
largest Stock Exchange in business volume
in the world, BOVESPA, is located in Brazil; a
State bank which has higher financial capacity than the World Bank, the National Bank of
Economic and Social Development (BNDES);
and the fourth largest company in market
value in the world, Petrobras. Besides, the
country counts on five great industrial plants,
which ally technology, high productivity and
sustainability.
One of these plants is in the state of
Minas Gerais; the second richest state
of the country, the city of Belo Horizonte
is its capital and is responsible for 50%
of the Gross Domestic Product (GDP) of
the State. Currently, Minas Gerais GDP
is around 200 billion dollars annually;
it is the largest exporter of iron ore and
Arabica coffee in the world. The State of
Minas Gerais still is a national reference
in sugar production, meat, automobiles,
chemical products and food in general,
besides ranking second among the Brazilian exporting states, responsible for 15.7%
of the international transactions of export
products of the country. Its economy is
stronger than countries like Peru, Egypt
and New Zealand. For these reasons, the
State of Minas Gerais is considered one of
the best places to receive foreign investment in Brazil.
CONCEPT OF FOREIGN CAPITAL
According to Law 4.131, dated
09.03.1962, foreign capital are goods,
machines and equipment introduced into
Brazil without initial payment, designated
for the production of goods and services,
as well as the financial or monetary resources introduced into the country for
use in economic activities. In both cases,
foreign capital must belong to companies
or individuals with permanent residence or
headquarters in foreign countries.
Foreign capital is safe and has the
same legal treatment as agreed to with national capital.
TYPES OF DIRECT
FOREIGN INVESTMENT
Foreign investment in Brazil can be made
as a direct investment or in an investment
portfolio. Foreign Direct Investment (FDI) is
characterized when the investor withholds
10% or more of common stock or right to
vote in a company residing in Brazil, whereas
Foreign Portfolio Investment (FPI) is constituted when that percentage is less than 10%.
Portfolio investment refers to foreign applications in the financial Market and of Brazilian
capital, in the form of share acquisition or
fixed-income or equity securities, traded in
Brazil or abroad.
Foreign Direct Investment is divided
into two main types, which are (i) capital participation and (ii) intercompany
loans.
MOST COMMON LEGAL ENTITIES
Most common entities used by foreigners in Brazil to start up a business are Sociedade Anônima (that is similar to a Corporation) and Sociedade Limitada (that is similar
to a Limited Liability Company).
40
Sociedade Limitada is governed
by the Brazilian Civil Code, organized
through the Articles of Association and
has limited liability partners.
• The partners have their responsibility limited to the value of their
shares and are liable for the payment of the capital stock.
• The capital stock is divided into
corporate shares that represent the
amount in money, credits, rights or
assets by which the shareholder
contributes (subscribes) for the formation of the company’s capital.
• There is no minimum capital required to start up this type of company.
• Minimum of two partners (Brazilian or Foreigner)
Sociedade Anônima is governed by
Law number. 6.404 of 1976, organized
through By Laws and it is a business corporation by legal definition, with the purpose to earn profits to be disbursed to its
shareholders. Its capital is represented by
previously outstanding shares.
• Minimum of two partners (Brazilian or Foreigner).
• Generally, there is no minimum
capital required, only for some special activities, like financial, banks
and others.
There are two types of Sociedades
Anônimas: (i) publicly held company
which obtains funds through public offers
and subscriptions and is supervised by the
Brazilian Securities Commission (CVM);
and (ii) privately held company which obtains capital from its own shareholders or
subscribers.
Permanent Visa
• Officers/Managers of Brazilian
companies shall be Brazilians or
Foreigners only with a permanent
Brazilian Visa;
• The permanent visa is conditioned to registration of the company’s Articles of Association or
By Laws and must be approved
HOW TO START UP A COMPANY IN BRAZIL
by the Ministry of Labor, Ministry
• The visa is also conditioned to
exercise the work for which the
• Foreign shareholders must appoint
and be represented by a local attorney in fact, with specific powers to
act on their behalf in several administrative and judicial proceedings;
• Foreign citizens and companies
must be enrolled before the Federal
Revenue to obtain the Company’s
Tax Registration Number (CNPJ) or
Individual’s Tax Registration Number
(CPF);
• Articles of Association or By Laws
of the investors’ foreign companies
and Powers of Attorney shall be legalized at the nearest Brazilian Consulate in the foreign country before
their respective sworn translation;
• The manner by which the capital
stock will be subscribed in the Brazilian companies (goods, cash, and
rights) shall be described in the Articles of Association or By Laws;
• After translation, Articles of Association or By Laws shall be duly
filed before the Brazilian Local
Trade Register (a certified Lawyer
shall analyze and sign the Articles
of Association or By Laws);
work license was required;
• After filing the company’s deeds,
the investors shall register the foreign capital (cash, rights, goods,
equipment) before the Brazilian
Central Bank Information System
(SISBACEN) in the software called
RDE-IED (Electronic Registration).
The capital registration in RDE-IED
is also important to ensure remittance of profits, profit reinvestment
and capital repatriation in the future;
that such investment must be reg-
• Before starting operation, the
company must be registered under
the State Revenue Agency, Municipal Revenue Agency and Social Security Agency (INSS).
Capital admission Categories
1) Money;
2) Import of goods without exchange
coverage. The goods may be tangible (machines, equipment) or intangible (rights);
3) Reinvestment of profits, “interest on
own capital” or future profits reserve.
Manucci Law Firm
Rua Felipe dos Santos, 521, 7th floor,
Lourdes - Belo Horizonte/MG - BRAZIL
/ CEP: 30180-160
Telephone: +55 31 2552-2009
Website: www.manucciadv.com.br
BRAZILIAN TAX
SYSTEM OVERVIEW
• To apply for a permanent visa
for its officer/manager, the foreign
company must have, at least, US$
200,000.00 invested in Brazil, for
each officer/manager, provided
istered before the Central Bank of
Brazil;
• It is also possible to obtain the
permanent visa for its officer/
manager if the foreign company
invests, at least, US$ 50,000.00
and is committed to hire within the
following 2 (two) years, at least 10
(ten) new Brazilian employees for
the Brazilian Company;
• The permanent visa may also be
granted to individuals who invest,
at least, US$ 50,000.00 in a Brazilian company, either existing or
recently formed.
Brazilian Taxation System has 3
(three) spheres of taxation:
•Federal; •State; •Municipal.
• Taxation will vary depending on the
activity of the company and the place
where it is located (City and State);
• Brazilian companies constituted or
controlled by foreign capital, in general, have no special tax benefits in
relation to companies constituted or
controlled by Brazilians; (Cities and
States generally offer tax benefits and
concessions of lands for substantial
foreign investments).
Taxation
• The profits/dividends distributed
by Brazilian companies to partners
based or resident in foreign countries
have not been subject to income tax
since 1996;
• Capital gain (which is the result of
the positive difference between the acquisition value of goods and rights and
its sale value) has income taxed at the
41
Manucci Advogados and all its staffs
are available for clarifications to all the
interested companies regarding investments in Brazil.
of Foreign Relations and Federal
Police;
Formal proceedings
Manucci Law Firm
rate of 15% over the gain;
• Services provided by foreigners,
residents or domiciled abroad, to individuals or companies in Brazil are
subject to income tax at the rate of
25%, plus Municipal taxes over services, depending on the service and
location where it is provided;
• Royalties paid to controlling companies based in foreign countries are
subject to a total taxation at the rate
of: 15% of income tax and of CIDE tax
(nondeductible under double taxation
agreements).
Double Taxation Agreements
Brazil has entered into Agreements to
avoid double taxation with the following countries: South Africa, Argentina,
Austria, Belgium, Canada, Chile, China,
Korea, Denmark, Ecuador, Spain, Philippines, Finland, France, Netherlands,
Hungary, India, Israel, Italy, Japan,
Luxemburg, Mexico, Norway, Portugal,
Czech Republic, Slovak Republic, Sweden and Ukraine.
42
Helpful facilities for foreign investors
in Belo Horizonte and Minas Gerais
Executive Branches
Sede do Governo Estadual - Cidade
Administrativa Pres. Tancredo Neves
(State Government Headquarters
- Administrative City President Tancredo Neves)
Rodovia Prefeito Américo Gianetti, s/n
- Serra Verde - CEP: 31630-900 - Belo
Horizonte / MG - BRAZIL
Telephone: +55 31 3915-0635
www.cidadeadministrativa.mg.gov.br
Assistance on Trade Promotion and
International Marketing of the Municipal Deputy Secretariat on International Relations and Affairs
Rodovia Prefeito Américo Gianetti, s/n Serra Verde
CEP: 31630-900 - Belo Horizonte / MG BRAZIL
Telephone: + 55 31 3246-0027
www.pbh.gov.br/internacional
Licensing
Receita Federal (Federal Revenue)
Rua Levindo Lopes, 357 - Funcionários
CEP: 30.140-170 - Belo Horizonte / MG
- BRAZIL
Telephone: +55 31 3546-9000
www.receita.fazenda.gov.br
Polícia Federal (Federal Police)
Rua Nascimento Gurgel, 30 - Gutierrez
CEP:30430-340 - Belo Horizonte / MG BRAZIL
Telephone: +55 31 3330-5200
www.dpf.gov.br
CEP: 31.630-900 Belo Horizonte/MG BRAZIL
Telephone: +55 31 3915-2866
www.indi.mg.gov.br
Agência Nacional de Vigilância Sanitária - Anvisa / Secretaria Municipal
de Vigilância Sanitária
(National Agency on Health Surveillance / Municipal Secretariat on
Health Surveillance)
Av. Afonso Pena, 2300, 5th floor - Funcionários
CEP 30130 007- Belo Horizonte / MG BRAZIL
Telephone.: +55 31 3215-7212
portal.anvisa.gov.br
CODEMIG - Companhia de Desenvolvimento Econômico de Minas Gerais
(Economic Development Company of
Minas Gerais)
Rua Aimorés, 1697 - Lourdes
Telephone: +55 31 3273-3060
www.comig.com.br
Trade, Industry & Investment
ACMinas - Associação Comercial e
Empresarial de Minas
(Commercial and Entrepreneurial Association of Minas)
Av. Afonso Pena, 372, Centro - Belo Horizonte / MG - BRAZIL - CEP: 30130-001
Telephone: +55 31 3048-0703
www.acminas.com.br
INDI - Instituto de Desenvolvimento
Integrado de Minas Gerais
(Institute of Integrated Development
of Minas Gerais)
Rodovia Prefeito Américo Gianetti,
s/n 2º andar - Serra Verde - Cidade
Administrativa
FIEMG - Federação das Industrias do
Estado de Minas Gerais
(Federation of Industries of the State
of Minas Gerais)
Av. Contorno, 4520 - Funcionários
Telephone: +55 31 3263 4200
www5.fiemg.com.br
Federaminas - Federação das Associações Comerciais e Empresariais
de Minas Gerais
(Federation of Commercial and Entrepreneurial Associations of Minas
Gerais)
Av. Afonso Pena, 726 - 15th floor - Centro
Telephone: +55 31 3078-7000
www.federaminas.org.br
Junta Comercial do Estado de Minas
Gerais
(State of Minas Gerais Board of Trade)
Av. Santos Dumont, 380 - Centro
Telephone +55 31 3226-5111
www.jucemg.mg.gov.br
Convention & Expo Centers
Auditório JK - Cidade Administratiava
Presidente Tancredo Neves
Rodovia Prefeito Américo Gianetti, s/n
- Serra Verde - Belo Horizonte / MG BRAZIL
Telephone: +55 31 3915-0635
emali:marilenabretas@planejamento.
mg.gov.br
Expominas
Av. Amazonas, 6.030 - Gameleira - Belo
Horizonte / MG - BRAZIL
Telephone: +55 31 3334-5145
www.expominas.com.br
Minas Centro
Rua Curitiba, 1.264 - Centro Belo Horizonte / MG - BRAZIL
Telephone: +55 31 3217-7900
www.minascentro.com.br
Serraria Souza Pinto
Av. Assis Chateaubriand, 809 - Centro
Telephone: +55 31 3213-3434
www.fcs.mg.gov.br
Uberlândia Convention Center
Av. João Naves Ávila, 1331 - Uberlândia /
MG - BRAZIL
43
Telephone: +55 34 3239 8400
www.centerconvention.com.br
Hotel Gloria Caxambu
Av. Camilo Soares, 590 - Caxambu / MG
- BRAZIL
Telephone: +55 31 3341 9200
www.hotelgloriacaxambu.com.br
Tauá Grande Hotel Termas & Convention
Avenida do Contorno, 80, Estância do
Barreiro, Araxá / Minas Gerais - BRAZIL
Telephone: + 55 31 3236 1900
www.taua.com.br/araxa
Hotels
Belo Horizonte
Ouro Minas Palace Hotel
Av. Cristiano Machado, 4001 - Ipiranga
Telephone: +55 31 3429-4001
www.ourominas.com.br
Reservations: [email protected]
Mercure
Av. do Contorno, 7315 - Lourdes
Telephone: +55 31 3298-4100
www.mercure.com.br
Reservations: reservas.mercurebh@
accor.com.br
Belo Horizonte Othon Palace
Av. Afonso Pena, 1050 - Centro
Telephone: +55 31 2126-0000
www.othon.com.br
Ceasar Business Belo Horizonte
Av. Luis Paulo Franco, 421 - Belvedere
Telephone: +55 31 2123-9898
www.caesarbusiness.com
AIRPORTS
Tancredo Neves Internacional
Airport- Confins, MG - BRAZIL
Area: 15 Km²
Aviation serviced: Domestic , International
Aircraft Patio: 86,000 m²
Passenger Terminal: 61,000 m²
Air Cargo Terminal: 9,828 m²
Aircraft Parking: 17 slots
Two Runways: 1-3,000 m X 45 m
2-3,552 m X 23 m
Car Parking: 2,560 slots
Distance to Center of Belo Horizonte
from the airport: 37 km
Rodovia MG-10, Km 39, Confins /
MG - BRAZIL
Telephone: +55 31 3689 2240
Pampulha Airport - Belo Horizonte, MG - BRAZIL
Area: 1,8 Km²
Aviation serviced: Domestic,
Executive and General
Aircraft Patio: 40.470 m²
One Runway: 45m x 2.540m
Passenger Terminal: 4.500 m²
Automobile Parking: 226 slots
Distance to Center of Belo Horizonte from the airport: 9km
Praça Bagatelle, s/n°, Bairro
Aeroporto - Belo Horizonte / MG BRAZIL
Telephone: +55 31 3490 2296
44
Bristol Metropolitan Apart Hotel
Av. Getúlio Vargas, 286 - Funcionários
Telephone: +55 31 2057-1200
www.redebristol.com.br
Reservations: metropolitan@redebristol.
com.br
Confidence Câmbio
BR-356, 3049, Belvedere
BH Shopping - Belo Horizonte / MG
Telephone: +55 31 3264-0079
Royal Golden Hotel
Rua Rio Grande do Norte, 1015 - Savassi
Telephone: +55 31 2101-0000
www.royaltowers.com.br
Reservations: gerencia@royalgonden.
com.br
FEDERAL REPUBIC OF GERMANY
Av. Protásio de Oliveira Penna, 366/101,
Buritis - CEP: 30575-360 - Belo Horizonte
/ MG - BRAZIL
Telephone: +55 31 3213-1568
REPUBLIC OF HONDURAS
Av. do Contorno 4747 - 12th floor, Serra
Telephone: +55 31 3280-1800
ARGENTINE REPUBLIC
Rua Ceará 1566 - 6th floor, Funcionários
Telephone/ fax: +55 31 3281-5288
REPUBLIC OF INDIA
Rua Paraíba, 523, Funcionários
Telephone: +55 313264-5444
AUSTRIAN REPUBLIC
Rua José Américo Cançado Bahia 199,
Cidade Industrial - CEP: 32210-130 Belo Horizonte / MG - BRAZIL
Telephone: +55 31 3333-5363
REPUBLIC OF ITALY
Rua dos Inconfidentes, 600, Funcionários
Telephone: +55 31 3524-1002
CANADA
Rua da Paisagem, 220 -3rd floor
CEP: 34.000-000 - Nova Lima / MG BRAZIL
Telephone: +55 31 3047-1225
HONORARY CONSULATE OF JAPAN
Rua Prof. José Vieira de Mendonça,
3011, Engenho Nogueira
Telephone: +55 31 3499-9620
At Ouro Preto
Solar do Rosário
Rua Getúlio Vargas, 270
Telephone: +55 31 3551-5200
www.hotelsolardorosario.com.br
At Tiradentes
Solar da Ponte
Praça das Mercês, s/n
Telephone: +55 32 3355-1255
www.solardaponte.com.br
Foreign Exchange Agencies
Banco do Brasil 1
Agência Praça da Liberdade
Rua Sergipe, 1062, Funcionários - Belo
Horizonte / MG
Telephone: +55 31 3271-3000
Banco do Brasil 2
Agência Belo Horizonte
Rua Rio de Janeiro, 750, Centro - Belo
Horizonte / MG
Telephone: +55 31 3284-1400
Minas Câmbio
Av. Amazonas, 507 - Belo Horizonte / MG
Telephone: +55 31 3272-0545
Consulates in Belo Horizonte
FRENCH REPUBLIC
Av.do Contorno 5417 - 2nd floor, Cruzeiro
Telephone: +55 31 4501-3649
REPUBLIC OF CHILE
Avenida Raja Gabaglia 1587/1, Luxemburgo
Telephone: +55 31 3286-7249
HONORARY CONSULATE OF SENEGAL
Address: Rua Tulipa, 215, Esplanada
Telephone and fax: +55 31 3586-1044
REPUBLIC OF FINLAND
Av. Afonso Pena 3111 conj. 1007
CEP 30130-008 - Belo Horizonte / MG BRAZIL
Telephone: +55 31 2101-0700
GRAND DUCHY OF LUXEMBOURG
Av. dos Andradas, 1093, Santa Efigênia
Telephone: +55 31 3048-6307
REPUBLIC OF EQUADOR
Avenida do Contorno, 4747 - 11th
floor/1112, Serra - CEP: 30110-090 Belo Horizonte / MG - BRAZIL
Telephone +55 31 3284-6564
HUNGARY
Rua Tenente Anastácio de Moura, 676,
Santa Efigênia
Telephone: +55 31 3481-2990
FEDERATION OF MALAYSIA
Rua Alagoas 1314/313, Savassi
Telephone +55 31 3284-7627
KINGDOM OF MAROCCO
Rua Bernardo Guimarães 1998/8th floor,
Lourdes
Telephone: +55 31 3292-2666
KINGDOM OF THE NETHERLANDS
Rua Sergipe 1167/1203, Funcionários
Telephone: +55 31 32217377
REPUBLIC OF NICARAGUA
Avenida Alvares Cabral, 397 501/502,
Centro
Telephone: +55 31 3274-5251
REPUBLIC OF PARAGUAY
Rua Guandaus 60/102, Santa Lúcia
Telephone: +55 31 3344-6349
REPUBLIC OF POLAND
Rua Pernambuco 353/1012, Centro
CEP: 30.130-150 - Belo Horizonte / MG
- BRAZIL
Telephone: +55 31 33096874
REPUBLIC OF PORTUGAL
Av. Álvares Cabral 1366, 9º andar,
Lourdes
Tel: +55 31 3291-8192
SYRIAN ARAB REPUBLIC
Rua Santa Rita Durão, 1030, Funcionários
Telephone: +55 31 3261-1015
45
SPAIN
Rua São Paulo, 893/1210, Centro
CEP:30170-131 - Belo Horizonte / MG BRAZIL
Telephone: +55 31 3213-0763
SWISS CONFEDERATION
Rua Paraíba, 476/1002
Telephone: +55 31 3261-7732
REPUBLIC OF TRINIDAD & TOBAGO
Rua Curral Del Rey, 581, Padre Eustaquio
Tel/Fax: +55 31 3411-4970
REPUBLIC OF TURKEY
Rua Alvarenga Peixoto, 295 - 3rd floor,
Lourdes
CEP 30180-120 - Belo Horizonte / MG BRAZIL
Telephone: +55 31 2122-6700
REPUBLIC OF URUGUAY
Av. do Contorno, 6777/1301, Santo
Antônio
Telephone: +55 313296-7527
47
48

1 Minas Gerais Business Guide - 2012 | ACMinas

Transcription

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