MANUFACTURING SECTORS
Ministry of Trade, Industry and Tourism
The
ONE OF
Republic of Colombia
believes in transforming the Colombian economy by creating tools that deliver results and boost growth, productivity and competitiveness in Colombian companies.
THESE TOOLS IS THE
A PUBLIC-PRIVATE PARTNERSHIP THAT: Coordinates work between public and private actors
Improves productivity and competitiveness within economic sectors
Helps companies and sectors benefit from Free Trade Agreements: more exports
The National Development Plan 2010-2014 established that the Productive Transformation Program, created by the Ministry of Trade, Industry and Tourism in 2008, would be administered by The PTP works with 16 key sectors in executing business plans built around 4 key pillars: (i) Human Capital (ii) Industry Development, Promotion and Innovation, (iii) Infrastructure and Sustainability and (iv) Regulation and Legal Affairs.
Promotes a better way of living for Colombians: more and better jobs
STRATEGIC GOAL Promote productivity and competitiveness in economic sectors with high exporting potential, through synchronized work between the Colombian private and public sectors.
The Productive Transformation Program is a worldwide innovation example. — McKinsey & Company & Oxford University —
ECONOMIC SECTORS
SERVICES BPO&O Software & IT
MANUFACTURING
AGRO-INDUSTRIAL
Editorial and Graphic Communications Industry
Chocolate, Confectionery and Raw Materials
Fashion System
Health and Wellness Tourism
Beef and Cattle
Auto Parts and Vehicles Industry
Palm, Oils, Vegetable Fats and Biofuels
Ecotourism
Cosmetics
Electric Energy and Services
Steel, Metalworking and Shipyard Sector
Shrimp Aquaculture Dairy Horticulture
AUTO PARTS AND VEHICLES INDUSTRY VISION Colombia will be a manufacturing and exporting platform of vehicles and auto parts in the region, including the markets of Mexico, Brazil and Argentina, while becoming the engine of the innovation locomotive, as defined by the Colombian Government.
OPPORTUNITIES IN COLOMBIA 4 Colombia has a wide network of suppliers that meet the highest
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international quality standards and provide companies like Renault, GM, Mazda, Hino and Daimler. Highly skilled human capital for the automotive industry, with competitive costs in the region and higher productivity than the average ofthe manufacturing industry. Significant growth potential of the local market as a result of: ŸOne of the lowest vehicle penetration rates in the region. ŸTwo consecutive years of record sales and increasing growth rate forecasts. ŸIncrease in financing for new vehicles. ŸGrowth of both urban and working- age population. ŸIncreasing demand for freight and passenger vehicles. Schemes that enable imports of CKD material without the payment of trade tariffs and VAT. Preferential access to other markets in the region under Free Trade Agreements.
WHAT ARE WE WORKING ON? 4 Investments over USD$ 250 million by vehicle assemblers for stamping
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processes, automation and new assembly lines that will enable exports of vehicles to Mexico and Brazil, among other markets in the region. Daimler’s new bus assembly plant. Strengthening of human capital based on the automotive industry’s needs, through technical and technological education, bilingual programs and specialized training programs, in partnership with SENA. Cooperation agreement with the Republic of Korea for a suppliers development program. Attraction of FDI for joint ventures and acquisitions of auto parts companies, resulting in technology transfer and higher competitiveness.
EDITORIAL AND GRAPHIC COMMUNICATIONS INDUSTRY VISION The Graphic Communications Industry will be recognized in 2032 as a regional champion and will be a key player in regional exports . The sector must increase the offer of value added services, its outward orientation, achieve high maturity and cooperation among its members and reduce informality.
OPPORTUNITIES IN COLOMBIA Development of: 4 New value added services such as the editing and processing of digital content in Spanish for Latin America and the U.S. Hispanic market, through the introduction of new technologies in the production process. 4 Competitive products in international markets, with quality and environmental certifications. 4 Technical cooperation agreements with international agencies that enable the execution of strategies for continuous innovation to improve the competitiveness of the industry in the markets served. The Colombian industry can take advantage of its position in the book market to develop innovative services related to the publishing market.
WHAT ARE WE WORKING ON? 4 Support the development of ICT integration projects
in several companies of the industry. 4 Coordination of actions with other entities to expand
educational opportunities for industry workers. 4 Actions to improve bilingualism within the industry. 4 Development of a joint work program with the private
sector to design strategies that reduce the impact of informality in the industry. 4 Support in obtaining quality certifications in the use of color in printed products.
FASHION SYSTEM: TEXTILE, CLOTHING, DESIGN AND FASHION
COSMETICS AND PERSONAL CARE PRODUCTS
VISION Colombia will attain international recognition as an innovative country regarding its products and processes, with a highly qualified and internationally competitive human talent that adds value to the sector. Colombia will become a design hub and a supplier of high value added, specialized products.
VISION In 2032 Colombia will be recognized as a world leader in the production and export of high quality cosmetics, household cleaners and absorbents, based on natural ingredients of the Colombian biodiversity.
OPPORTUNITIES IN COLOMBIA OPPORTUNITIES IN COLOMBIA
4 Colombia is a destination for international fashion, with the exclusive 4 4
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presence of global luxury brands. Colombia is an ideal destination for Research, Development and Innovation: Government’s commitment with attractive incentives. Colombiamoda and SPFW (Brazil) are the most important fashion and clothing fairs in Latin America, with over 10,000 visitors a year. Colombiatex is the second largest textile fair in Latin America. Opportunity to invest in the production of textiles and cotton fiber products to meet the domestic demand of Colombian clothing manufacturers. Preferential access through Free Trade Agreements. We currently have FTAs with USA and Brazil, among other, large consumers of textiles and clothing. High quality confection, as well as efficiency and speed in production and delivery of products. Colombia’s high potential in the development of markets such as medical, biofibres, military and optical textiles, due to the evolution of different industries, local needs, potential and other factors.
4 Second most biodiverse country worldwide. 4 Legal framework for research and development. 4 Export platform. 4 Growth of the Colombian market of cosmetics and
toiletries: ŸGrowth of 8.7% compounded annually between 2006 and 2014. ŸFifth market in Latin America. ŸProduction doubled in the last 6 years. ŸExports increased 6 times in the last 10 years. 4 Compulsory Health Notifications are issued automatically.
WHAT ARE WE WORKING ON?
WHAT ARE WE WORKING ON? 4 We signed an agreement between the SENA - AITEX
4 Coordinate and manage the creation of the
ŸDiagnosis of 5 training centers in major cities across the country. ŸDetection of technology gaps in Textiles & Clothing. 4 An agreement was signed in ALIANZA SENA-SENAI to strengthen training
institutions, through knowledge transfer and technological upgrading complying with international standards, for developing human talent. ŸAs part of the agreement, an upgrade of the 2007 diagnosis is being performed for Leather, Footwear and Leather Goods. 4 770 people enrolled in the first module of Bilingualism. 4 A pilot test of Organic Cotton will be carried out in cooperation with Corpoica and the Ministry of Agriculture. 4 A Business Sponsoring Plan will be launched to achieve the formalization of the sector in different regions in the country, in partnership with the Colombian Chamber of Clothing and Leather,Footwear and Leather Goods.
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Biodiversity Biocorredor, Bioscience and Natural Ingredients. Development of the CRIBICA Red Centre project and support the creation of the Office of Cosmetics and Sanitation in Invima. Support the regulatory process of the Andean Decision 391 to access genetic resources. Structure – with Proexport - the strategy for export promotion and FDI in the sector 2012-2032. Certify 2500 workers in GMP (Good manufacturing Process), through an agreement with SENA. Present a case for tariff reduction in 5 critical raw materials that are not produced in the country.
STEEL, METALWORKING AND SHIPYARD SECTOR VISION Transform into a world class production chain (steel, metalworking and shipyards sectors) through the creation of value, the development of innovation, competitiveness, productivity while contributing to the employment and development of the country. The industry will be able to generate changes –under ethical, ecological, environmental and social principles – that will allow us to be the largest sector, as a percentage of the industrial GDP in Colombia, and double the per capita consumption of steel in the Colombian market, for the year 2019.
4 Lead times/delivery periods are shorter than those of the international competition. 4 Colombia has unexplored iron mines, which are located over
different geographical areas of the country. This will allow the sector to produce pig iron, which is an important raw material for steel. 4 The geographical location will allow industries to quickly and
efficiently provide to foreign markets. 4 The sector has opportunities to become more competitive by
OPPORTUNITIES IN COLOMBIA
following a horizontal integration to enhance "forward and backward Linkages" with suppliers and buyers.
4 High levels of export openness that allow companies to easily reach new markets.
4 Important technological knowledge and skilled labor as a result of increased training of the workforce, use of new technologies, foreign investment and technology transfer.
4 Colombia is a market with room for strengthening the domestic
market supply and the access to new niche markets at an international level. 4 Innovate in current production processes that are supported by
new technologies, such as clean technology.
4 The country has a good production capacity due to the increment in infrastructure and capacity investment.
4 Modern manufacturing equipment. 4 Companies are able to produce smaller batches than other foreign producers, and make deliveries of less value.
WHAT ARE WE WORKING ON? 4 To select and co-finance -with the private sector- the study and
development of the business plan.
www.ptp.com.co
Ministry of Trade, Industry and Tourism Republic of Colombia
www.ptp.com.co