São Paulo, Number 1 State in Brazil

Transcription

1 São Paulo, Number 1 State in Brazil Sergio Costa Director January 2014 Investment Promotion Agency

2 Mission Being the gateway to new investments or expansion of existing businesses, generating innovation, employment and income, in addition to the continuous improvement of the competitive environment and of the image of the State of São Paulo

3 Areas of Activity Business Prospection Identification of sectors and companies with investment potential Investment Projects Technical support and orientation to investors: site location, taxes, infrastructure Contact with public and private institutions aiming as investment facilitation Institutional Activities Reception of foreign delegations and organization of international missions Support and guidance for municipal governments SP Actions for the Promotion of Competitiveness Labor training, Taxation, Innovation, Infrastructure and Licensing Studying and proposing public policies Promotion of the image of the State of Sao Paulo

4 Our Website SP in Maps

5 International Cooperation Agreements America Europe Asia USA: R20 BRATECC Charlotte RP Norway: BNCC United Kingdom: UKTI Spain: ICEX Portugal: AICEP Italy: ITALCAM Toscana Promozione Czech Republic: CzechInvest South Korea: Kotra, Kobras Japan: JETRO Bank Tokyo-Mitsubishi UFJ China: Bank of China

6 Our Customers Investments US$ 11,861 bi Direct jobs 49, announcements

7 Brazil on the Worldstage

8 Brazil, the 7th economy of the planet GDP - US$ billions 2, th Canada 6 th UK 1,770 3,366 4 th Germany 9 th Russia 1,953 15,653 1 st USA 2,580 5 th France 1,980 8 th Italy 10 th India 1,946 8,250 2 nd China 5,984 3 rd Japan 2,245 7th Brazil 12 th Australia 1,493 Source: IMF - year 2012

9 Selected Countries: Territory, Population and Economy Territory > 3 million km 2 Population > 100 million Pakistan Bangladesh Russia India China Canada Australia Indonesia Nigeria United States Brazil Japan Mexico United Kingdom Germany France Netherlands Italy South Korea Spain Economy (GDP) > US$ 750 billion Source: IMF, World Bank

10 Brazilian Age Structure Opportunity Larger contingent of working-age population = possibility of increasing productivity Challenges Increase on health and social security expenditures Source: IBGE / Revista Veja, December 2010.

11 Social Mobility Year A e B C D E 2014 projection 15.5% 56.5% 20.0% 8.0% % 50.5% 23.4% 15.4% % 37.7% 26.9% 28.0% Source: Banco Central do Brasil/ FGV Percentage of Inhabitants

12 São Paulo state in the Brazilian Context

13 Brasil and São Paulo Comparison São Paulo s Share Territory Km² Km² 3% Population million million 22% GDP nominal US$ billion US$ 750 billion 33% GDP per capita US$ 11,611 US$ % larger Source: IBGE, Banco Central e SEADE Exchange Rate: US$ 1 = R$ 1.95 Agência Paulista de Promoção de Investimentos e Competividade

14 São Paulo Competitive Advantages Largest Consumer Market in LATAM Environmental Responsibility Largest Brazilian Investor in R&D São Paulo Competitive Advantages Skilled Workforce Supply Chain World-class Infrastructure

15 Brazilian State Capitals where the consumer market grows most Sales increase (US$ billions) São Paulo - SP Rio de Janeiro - RJ Brasília - DF Belo Horizonte - MG Curitíba - PR Salvador - BA Fortaleza - CE Recife - PE Porto Alegre - RS Manaus - AM (1) 45 product categories analyzed Source: Exame Magazine McKinsey Exchange rate US$ 1 = R$ 1.67

16 São Paulo Consumer Market Map USD billion % 49.8% Inland Capital metropolitan region The largest Brazilian consumer market USD 390 billion Source: IPC marketing 2012

17 São Paulo s share of the Brazilian output Selected Sectors 33.52% 36.76% 47.77% 55.28% 58.13% 58.34% 67.83% 72.92% 95.84% 60% Electromedical and Manufacture Computer of equipment pharmaceutical and electrotherapeutic Communications Machinery Electronic Petroleum Chemicals Biofuels Aircraft and components products equipment apparatus chemicals peripherals and pharmaceuticals and equipment of irradiation

18 Higher Education 577 college level institutions 1,542,415 students enrolled The State Government is responsible for three of the best universities in Latin America Largest number of technological students graduated in Brazil 59 thousand students 56 technology colleges 65 courses in the areas industry, services and agribusiness Source: INEP

19 Technical Schools 1274 technical schools 357,000 students enrolled The largest program of technical education in Brazil: Your company can have specific courses tailored to the project needs Technical Schools Etecs 226 thousand students 211 technical schools 124 courses in the fields of industry, services and agriculture Source: INEP, Centro Paula Souza

20 R&D / Innovation More than 13% of the São Paulo State revenue is used in high quality education, research and development. The State also hosts federal universities and research institutions. Fundação de Amparo à Pesquisa Científica e Tecnológica (Fapesp) 3 universities among the ones that most develop scientific research in Brazil US$ 513 million annual budget USP, Unicamp and Unesp 19 research institutes International recognition 19 initiatives of Technology Parks All over the state

21 State funds invested in R&D (2010) 5,012.2 (R$ millions) SP Demais Other states Estados 28% 72% SP RJ PR MG SC BA RS DF CE PE Source: Coordenação-Geral de Indicadores(CGIN)- ASCAV/SEXEC - Ministério da Ciência e Tecnologia

22 Technology Park System 19 implementation initiatives São José dos Campos São Carlos - Damha Campinas Piracicaba Ribeirão Preto Sorocaba Source: Secretariat of Development.

23 World-Class Infrastructure 19 out of the 20 best highways Largest Pipeline 5, international out km Km Km of port railways of Waterways the railways airports 20 best 32 2 international in highways South industrial domestic airports America centers Brazil 32 domestic airports Largest port in South America 800 km of Waterways Pipelines in industrial centers Highway Railway Waterway Pipeline Home airport International airport River port Sea port

24 Environmental Responsibility Energy matrix with 55% of renewables Competitive advantages for energy production from biomass New opportunities in environmental technology markets Brazil s most advanced conservation system 17.5% of the state area is of environmental preservation 27 State Parks 21 Ecological Stations 17 Experimental Stations 13 State Forests Source: Energy Secretariat of State of Sao Paulo, Forest Foundation

25 FIRJAN Index of Municipal Development Ranking IFDM Ranking IFDM Income State IFDM Education Health Nacional Base year 2010 and job 1º SP Indaiatuba 0,9486 0,9394 0,9585 0,9479 2º SP São José do Rio Preto 0,9357 0,8941 0,9650 0,9479 3º SP Itatiba 0,9276 0,9167 0,9330 0,9332 4º SP Amparo 0,9259 0,8748 0,9525 0,9503 5º SP Barueri 0,9258 0,8865 0,9525 0,9385 6º SP Ribeirão Preto 0,9230 0,9223 0,9258 0,9209 7º SP Marília 0,9195 0,8449 0,9825 0,9311 8º SP Louveira 0,9194 0,8611 0,9681 0,9291 9º SP Jundiaí 0,9171 0,8983 0,9276 0, º SP Paulínia 0,9159 0,8551 0,9675 0, º SP Bauru 0,9127 0,8964 0,9402 0, º SP Campinas 0,9117 0,8954 0,9136 0, º SP Santos 0,9108 0,8689 0,9400 0, º SP Valinhos 0,9107 0,9318 0,8916 0, º RS Bento Gonçalves 0,9102 0,9474 0,8471 0, º SP Bragança Paulista 0,9097 0,9075 0,9088 0, º SP Araraquara 0,9092 0,8465 0,9600 0, º SP Americana 0,9091 0,8453 0,9700 0, º SP São Caetano do Sul 0,9072 0,8206 0,9675 0, º SP Atibaia 0,9067 0,9102 0,9286 0, out of the 20 best ranked Brazilian municipalities are in the State of São Paulo

26 Brazilian Investment Competitiveness Ranking Economist Intelligence Unit The Economist

27 General Ranking CLASSIFICATION VERY GOOD GOOD FAIR POOR # Scale 100 for best, 0 for worst SP RJ MG RS PR SC DF ES BA AM MS GO MT PE CE SE PA PB RO AL RN TO AC RR MA PI AP Source: The Economist, Centro de Liderança Pública e Veja

28 Human Resources CLASSIFICATION VERY GOOD GOOD FAIR POOR # Scale 100 for best, 0 for worst SP RJ MG PR RS SC DF ES AM BA GO MT CE MS PE RO PA RN AC AL AP PB RR SE MA PI TO Source: The Economist, Centro de Liderança Pública e Veja

29 Highways Quality CLASSIFICATION VERY GOOD GOOD FAIR POOR # Scale 100 for best, 0 for worst SP PR RJ RS BA DF PB SC AL ES MG PI RN RO SE AC AM AP CE GO MA MS MT PA PE RR TO Source: The Economist, Centro de Liderança Pública e Veja

30 Innovation CLASSIFICATION VERY GOOD GOOD FAIR POOR # Scale 100 for best, 0 for worst SP RJ MG RS SC AM PR BA PE CE GO MS MT SE AL DF ES PA PB TO MA RN AC AP PI RO RR Source: The Economist, Centro de Liderança Pública e Veja

31 One of the lowest national death rate by gunfire Death rate by gunfire in Brazilian States ( per 100,000 inhabitants ) 55,3 32,8 34,4 34,6 30,3 18,9 7,1 8,0 8,5 9,3 10,0 10,5 13,4 13,8 14,5 15,8 16,3 19,9 20,6 22,0 23,0 23,6 25,0 25,3 26,4 26,4 39,4 RR PI SC SP AC TO MG MA MS AP RS AM MT RN GO SE RO CE DF PR RJ PE PB BA PA ES AL Source: Violence Map 2013 ( reference data 2010)

32 ITC Sector

33 Brazil IT Market - Highlights 5 th Largest internal market of the planet US$ 123 BILLION IT Revenues US$ 2,5 BILLION Brazilian IT Exports 2.5 MILLION IT Professionals 5.2% of BRAZILIAN GDP MOST IMPORTANT SECTORS Finance services Production Communication Oil and Gas Sales market Agriculture Government Source: BRASSCOM 2012

34 Brazilian IT Market Software 9,5 BPO 5,8 Exports 3 Values in US$ Billion Services 15,4 IT in House 54 Source: BRASSCOM 2012 Hardware 35,3

35 IT Market Growth World Comparison Brazilian Growth 2012/ ,8% 5,9% World Growth 2012/2011 Main Growth in IT market 12/11 China: 15% Brazil: 10,8% India: 10,1% Source: BRASSCOM 2012

36 Broadband Access in Brazil Broadband access Mobile Fixed 19% 114,7 MILLION TOTAL BROADBAND ACCESS 39% OF BRAZILIANS HOMES HAVE BROADBAND ACCESS 81% Source: Telebrasil 2013

37 Average Time Online Average hours / month United States 40,9 UK 35,6 South Korea France Brazil Germany Russia 31,1 27,5 26,7 25,2 25,1 Japan 21 China India 14,1 13 Source: 2012 Brazil Digital Future in Focus Report

38 Some Technological Companies in SP (Industrial Plant, Brazil Headquarters or Offices) Source: The List of World s Largest Hardware Companies 2010

39 IT Graduation (2011) Information Systems Computer Engineering Computer Science Total ITC SP MG RJ RS SP MG RJ RS SP MG RJ RS SP MG RJ RS Source: INEP, Ministry of Education.

40 SIBRATEC Innovation Centers Network São Carlos UFSCAR USP - ICMC Limeira UNICAMP- CESET Microeletronic Eletronic for products Campinas UNICAMP UNISAL CPQD CTI ELDORADO VON BRAUN Digital Technologics of Information and Communication São Paulo LSITec Mackenzie Source: Sibratec

41 Research partnerships Intel Strategic Research Alliance (ISRA) Software Implementation of Cryptographic Algorithms Asymmetric Cryptography for Embedded Systems Institute Microsoft Research FAPESP of studies in IT

42 Pro-Informatica Goals To stimulate investment in: Modernization or expansion of industrial plant Greenfields projects Development of new technologies Strengthen the informatics sector in the State Benefits for companies with operations in São Paulo Possibility of use of ICMS credits for investments If the company has not accumulated ICMS, allows it to make the deferral / suspension of ICMS on the purchase of equipment suppliers established in the State of São Paulo Source: Secretaria da Fazenda

43 Unicamp Undergraduate Courses Scenario (2010) Master Degree and PhD Statistics Maths Applied Math Enrolled Graduates Computer Sciences Computer Engineering Master Degree PhD Patents applied Accumulated Source: Statistical Yearbook Unicamp 2010 (*) IC Institute of Computing and IMECC Institute of Mathematics, Statistics and Computer Science

44 USP Intelectual Property - USP Unit Patents Sotware Register(*) Statistics and Math Institute- ICMC 52 2 The campus of São Carlos traditionally focused on applied research and entrepreneurship in new business creation and development of joint projects with the private sector and has strong partnerships with: Engineering School of Sao Carlos- EESC 4 1 Evolution of Graduated Students per course USP - São Carlos Area Computation Sciences and Computational Mathematics Master Graduated PHDs Mathematics Computation Engineering Mathematics Applied Mathematics and Cientific Computation

45 Number of graduates forecast Computer Science 2009 a Source: MEC / INEP / DEAES, Prepared: RCR Consultoria, Forecast RCR Consultoria

46 Number of graduates forecast Information Processing 2009 a Source: MEC / INEP / DEAES, Prepared: RCR Consultoria, Forecast RCR Consultoria

47 Brazilian Software Market Scenario and trends

48 IT World Market 2012 (US$ bi) Canada US$ 51 TOTAL US$ 2,023 billion USA US$ 638 UK US$ 110 Germany US$ 101 China US$ 173 France US$ 76 Mexico US$ 21 49% is the brazilian share of Latin America market Japan US$ 172 Colombia US$ 6,5 India US$ 40 Argentina US$ 7,8 Brazil US$ 60,2 Source: ABES Associação Brasileira das Empesas de Software Mercado Brasileiro de Software Panorama e Tendências 2012 Australia US$ 42 Agência Paulista de Promoção de Investimentos e Competividade

49 Brazilian IT Market Evolution (US$ billion) 30 Software Services Growth 26,7% ,6% 24% 9, % 2,3% 6,3 5,51 22,3% 22,7% 3,92 4,52 23,5% 3,19 17,5 2,5 15,14 2,16 13,53 1,93 11,09 10,84 4,07 5,25 6,59 7, Source: ABES Associação Brasileira das Empesas de Software Mercado Brasileiro de Software Panorama e Tendências 2012 Agência Paulista de Promoção de Investimentos e Competividade

50 ITC Market in Brazil Total ITC Market in Brazil by segment 2011 (US$ billion) Market Segmentation Domestic Market Export Market Total Market Software services Subtotal Hardware Telecom Other Services In-House TI Total Market 6,177 0,123 6,3 13,306 1,834 15,14 19,483 1,957 21,44 23,01 0,22 23,23 94,96-94,96 5,61 0,47 6,08 46,12-46,12 189,18 2, ,83 Source: ABES Brazilian Association of Software Companies Brazilian Software Market Report 2012

51 Brazilian software and services market Brazilian software and services market by origin Origin Volume (US$ bi) Share (%) 2011 / 2010 Domestic Production ,7% 21,5% + Domestic Production for Export 123 2,0% 11,8% + Foreign Production ,4% 12,7% + Software Subtotal ,0% 14,3% + Taylor Made Software ,9% 21,6% + Services Domestic Market ,5% 10,7% + Services Export ,1% 12,5% + Foreign Production 73 0,5% 7,3% + Services Subtotal ,0% 11,9% + Software and Services Total ,6% + Source: ABES Brazilian Association of Software Companies Brazilian Software Market Report 2012

52 Brazilian software and services market Software and Services Brazilian Market Segmentation Segment Volume Share 2011 / 2010 Applications ,46% 48,2% + development environments ,67% 6,0% + Infrastructure and Security ,92% 6,4% - Export Software 123 1,95% 11,8% + Software Subtotal ,00% 14,3% + Outsourcing ,46% 114,9% + Support ,10% 3,1% - System Integration ,21% 33,8% - Exported services ,11% 12,5% + Taylor Made Software ,88% 21,6% + Consultancy ,61% 14,7% - Training 397 2,62% 12,7% - Services Subtotal % 11,9% + Software and Services Total ,6% + Source: ABES Brazilian Association of Software Companies Brazilian Software Market Report 2012

53 Brazilian IT market trend (US$ billion) ,5% 61,9 3,8% 71,2 3,9% 76,9 4,0% 83 4,2% 89,7 4,3% 96,8 4,5% 4,6% 104, ,8% 122 4,9% 131,8 5,1% 142,3 5,3% 153,7 5,0% 4,0% 3,0% 2,0% 40 1,0% IT Market IT/GDP 0,0% Source: BRASSCOM - Brazilian Association of ITC Companies, ABES - Brazilian Association of Software Companies, IDC Brazilain Software Market - Scenarios and Trends 2010 RCR Consultancy

54 Brazilian IT exports trend 19% 7 25,0 19% 6 20,0 15,0 10,0 5,0 18% 3,0 3,5 20% 4,2 19% 5,0 18% 5,9 18% 7,0 20% 8,4 19% 10,0 19% 11,9 18% 14,1 16,8 20, , Exports Annual Growth 0 Source: BRASSCOM - Brazilian Association of ITC Companies, ABES - Brazilian Association of Software Companies, IDC Brazilain Software Market - Scenarios and Trends 2010 RCR Consultancy

55 Automotive Industry in Brazil

56 The State of São Paulo is the 15th largest producer in the world Over 1.4 million vehicles produced in 2012 in SP Brazil is the 7th largest producer in the world Top Vehicles Producers in the World Ranking Country Units (thousand) 1 China USA Japan Germany South Corea India Brazil Mexico Thailand Canda Russia Spain France United Kingdom Czech Republic Turkey Source: Anfavea Brazilian Automotive Industry Association (2013), International Organization of Motor Vehicle Manufacturers.

57 Consumer Market for Vehicles in Brazil Brazilian Production per State (2012) 25,2% 15,4% 4,4% 5,6% 6,1% 1,9% SP MG PR 41,5% RJ BA RS GO Largest Brazilian Producer Fleet by State (2012) Largest Brazilian market Source: Anfavea, DENATRAN (2012) 8% 8% 11% 8% 5% 26% SP 34% MG PR RJ RS SC Others

58 Distribution of suppliers units in Brazil São Paulo 472 units 68% of total Source: Sindipeças (2012) Minas Gerais 76 units Rio Grande do Sul 37 units Paraná 35 units (5%) Santa Catarina 24 units Bahia 23 units Rio de Janeiro 15 units Amazonas 11 units Pernambuco 4 units Ceará 1 unit (0,1 %) Espírito Santo 1 unit (0,1 %) Goiás 1 unit (0,1 %)

59 Autoparts Sector Perfomance REVENUES US$ BILLION EXPORTS (FOB) US$ 10,471 BILLION IMPORTS (FOB) US$ 16,258 BILLION EMPLOYEES 218 MIL PESSOAS Exports 9% Aftermarket 15% Autoparts destination Intrasector 7% Assemblers OEM s 69% Source: Sindipeças (2012)

60 Foreign participation in the Autoparts Sector Revenue by capital origin 15% 5% 1% Foreign National 23% 56% Foreign majority National majority Mixed capital Companies distribution according to the foreign participation Source: Sindipeças (2012) 25,2% 23,0% 8,6% 8,1% 8,1% 5,4% 21,7% Germany USA Spain Italy Japan France Other

61 Units and Job Distribution Geographic distribution of business units ( factories and offices) 32,4% 12,6% 26,9% 16,3% 11,8% SP s countryside SP capitol SP s metropolitan region SP - ABCD Other states Companies distribution by the number of employees 13,8% 18,6% 18,0% 21,3% 13,4% 8,4% 6,3% Source: Sindipeças (2012) > 2001

62 Automotive Industry in Brazil and São Paulo

63 Automotive Companies Investments in Brazil US$ million Source: Anfavea (2012)

64 Employees in the Sector Autoveículos Vehicles Máquinas Agricultural Agrícolas Machines Source: Anfavea (2012)

65 Brazilian Automotive Market Evolution Net Revenues US$ million Veículos Vehicles Máquinas Agricultural Agrícolas Machines Source: Anfavea (2013)

66 Green Fleet Vehicles Production by Fuel Type Gasolina Gasoline Etanol Ethanol Flex Diesel Source: Anfavea/UNICA

67 Truck and Bus Industries

68 Brazilian Production of Trucks and Buses Truck Production Bus Production Source: Anfavea 2012

69 Brazilian Fleet of Trucks and Buses Trucks Fleet (2011) Buses Fleet (2011) 8% 5% 6% 4% 4% 24% 8% 3% 6% 4% 25% 10% 12% 27% 7% 7% 12% 28% SP MG PR RS SC RJ BA GO Outros others SP MG PR RS SC RJ BA GO Outros others

70 Pro-Vehicle Investment Incentive Program for the Automotor Vehicle Producer

71 Pro-Vehicle Goals Stimulate investments in the: Modernization or expansion of production facilities Greenfiled investment Development of new products Improve the automotive sector in the State Agricultural machines and equipment, construction, buses and trucks. Benefits for companies with plants in São Paulo Possibility of using ICMS credits for investments Reduction of charging the ICMS on the purchase of machinery and equipment used in production.

72 Pro-Vehicle Operation Payment of products and goods, electrical energy included Payment of ICMS in the importation of industrial goods Transfer to others contributors suppliers Beneficiaries Automotive production in the State of São Paulo Suppliers of materials and equipment for building in the State of São Paulo Suppliers of industrial products in the State of São Paulo Incentives for acquirement of Capital Goods Possibility of deferment with pro-vehicle The Payment of ICMS charged in the acquirment of capital goods is postpone. As a result, the investor doesn t have to pay the tax charged in this case.

73 Municipality Incentives

74 Municipality Incentives Most Frequent Isention Urban Territorial Property Tax (IPTU) Reduction Service Tax (ISS) Isention (for plant construction) - Service Tax (ISS) Others Special conditions for terrain acquiral Labor force training support Infrastructure Road access Fonte: Investe São Paulo Agência Paulista de Promoção de Investimentos e Competividade

75 PPPs e MIP

76 Investment with Fiscal and Social Responsibility São Paulo State Investment Plan of US$ 65,8 billion Public Funds Treasury Financing State companies US$ 47,3 billion PPPs 15 projects US$ 18,5 billion

77 Innovative Fast Track for PPP Projects State Decree dated August 30, 2011 allows interested investors to present proposals for PPPs Projects PRIVATE SECTOR INITIATIVE (MIP) EVALUATION by State Commission APPROVAL REJECTION PRELIMINARY PPP PROPOSAL PUBLIC CALL for detailed technical studies, including alternatives $ Technical studies Technical studies Technical studies CONTRACT (PPP Project winner reimburses selected technical study author) PUBLIC BIDDING for the PPP PPP Project APPROVAL REJECTION EVALUATION by State Commission

78 Major Events

79 Major Events World Cup 2014 R$ 300 million of state investments in public works around the arena Opening Stadium for 65 thousand spectators Increase from 42 thousand hotel rooms to 50 thousand Olympic Games 2016 R$ 28.8 billion until 2016 R$ billion in infrastructure R$ 5.62 billion for operations São Paulo is expected to host selected contests

80 Thank You! Sergio Costa Director Telephone: investesp@investesp.org.br sergio.costa@investesp.org.br SECRETARIA DE DESENVOLVIMENTO ECONÔMICO, CIÊNCIA E TECNOLOGIA