Goiás: THE BEST INVESTMENT DESTINATION IN BRAZIL

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Goiรกs: THE BEST INVESTMENT DESTINATION IN BRAZIL


BRAZIL AND GOIÁS: BASIC DATA

Brazil Brazil is the largest country in Latin America and its continental magnitude makes possible to borders on all countries of South America, except Chile and Ecuador, revealing to be an ideal base to reach this entire market. Brazil counts on 8.5 million square kilometers of large cultivable land, abundant mineral resources, and rich biodiversity. There are 204 million inhabitants, known to be cheerful and hard-working people, responsible for half of South American economy. Brazil is composed of a pluralistic and democratic society with solid and consolidated institutions, which respects free market and private property.

Goiás The state of Goiás holds an area of 340,111 km2 and its economic growth has risen beyond national average in the last 10 years. Goiás’ main economic activities are agribusiness (Agriculture, Livestock, and Agro-industry) and mining. However, due to the easy availability of raw materials and incentive programs, the state also provides a diverse range of transformation industry products, of high added value, such as the fashion, automotive, and pharmaceutical industries.

INFORMAÇÃO

BRASIL

GOIÁS

Official name

República Federativa do Brasil

Estado de Goiás

Capital

Brasília

Goiânia

Language

Portuguese

Portuguese

Area

8,515,767

340,111 km²

Estimated population

204,451,000

6,611,000

Estimated Demographic Density

24.01

19.43

Number of Municipalities

5,561

246

HDI

0.755 (2014)

0.735 (2010)

No. of Higher Education Institutions

2,391

81

GDP (2013)

US$ 2,4 trillion

US$ 55 billion

GDP per capita (2013)

US$ 12,100.00

US$ 8,936.00

No. of people employed

49,571,510

1,514,532 (3.05%)

No. of Active Industries

592,753

22,474 (3.79%)

No. of people employed in Industries

11,446,679

341,626 (2.98%)


Economic profile of Goiás Share of sectors in GDP – Goiás and Brazil – 2012

70,0

66.6 59.3

60,0 50,0 40,0 30,0 20,0

14.1

10,0 0,0

28.1

26.6

Goiás

5.3

Agriculture

Industry

Services

Brazil


Key sectors of Goiás economy AGRICULTURE Agricultural production Goiás is among the largest producers in Brazil in several cultures (2015) Tomatoes

1st

Cotton

3rd

Beans

5th

Sorghum

1st

Maize

4th

Wheat

6th

Garlic

1st

Soybeans

4th

Rice

9th

Grain production (million tons) Year

Goiás

Brazil

Share % Goiás/Brazil

Ranking Position in Brazil

2005

11.35

113.42

10.00

5th

2015

19.17

212.63

9.02

4th

LIVESTOCK Livestock production Production (t)

2013

2014

2015

Bovine

840,632

844,344

786,796

Chicken

763,033

778,998

845,060

Pork

169,183

158,394

163,764

Milk (one thousand liters)

2,445,863

2,685,137

2,449,546

Source: IBGE (2015 - preliminary data)

Bovine cattle in Goiás • 22,000,000 heads • 10.2% of the Brazilian cattle herd • 3rd largest in the country Source: IBGE (2015)


MINING • Goiás is the

second largest ore producer in the country

• There are 7

mining industry hubs throughout the state Share of Goiás state in the production of national ore: Ore

Ranking position

% Goiás/Brazil

Asbestos

1st

100%

Vermiculite

1st

70.7 %

Nickel

1st

90.4 %

Phosphate

1st

56.4 %

Copper

2nd

30.6 %

Gold

2nd

27.4 %

Niobium

2nd

5.4 %


Foto: Silvio Quirino Goiás Turismo

Pirenópolis - Church Nossa Senhora do Rosário

INDUSTRY Growth 2005 - 2015 (%) Indicator

Goiás

Brazil

Industrial GDP – deflated

194.90%

119.07%

No. of jobs in the industry

100.26%

56.48%

No. of industrial establishments

98.67%

63.33%

ICMS tax collection from the Industry

202.87%

200.11%

Export value of industrialized products

436.42%

22.05%

TOURISM • The world’s largest hydrothermal site is located in the municipalities of Caldas Novas and Rio Quente • Largest caves complex in Latin America • National reserves: Parque Nacional das Emas and Parque Nacional dos Veadeiros • Cidade de Goiás: World Historical and Cultural Heritage (UNESCO) • Pirenópolis: National Heritage (IPHAN) • Rio Araguaia: Freshwater beaches


Goiás vs. Brazil industry • Goiás Ranking in Brazil’s GDP: 9th • Goiás Participation in the Brazilian industrial GDP: • 2005: 2.22% • 2015: 2.98%

• Goiás achieved the 4th best industrial performance in the Brazilian states ranking in 2015 • Largest producer of tomato products in the country • Second largest producer of medicines • Second largest producer of ethanol • Its industrial hub has more than 20,000 industries and 32 industrial districts

INDUSTRY MAJOR SEGMENTS IN GOIÁS The industrial activity of Goiás state is diverse, ranging from mining extraction up to drugs manufacturing. Food and beverages occupy the main sector, but many others are dynamic and important in Goiás economy, mostly the following segments:

Food and beverages

Construction

Mineral products

Chemicals/ Pharmaceuticals

Sugarcane-based energy sector

Metalworking automotive

Clothing manufacturing

Leather and footwear




International trade Exports - 2015 (US$ FOB) Soybeans and related products

1,813,367,368.00

Meat

1,387,434,026.00

Mineral products

1,129,492,474.00

Maize

662,809,439.00

Leather

325,164,967.00

Others

559,994,422.00

TOTAL EXPORTED

5,878,262,696.00

Imports - 2015 (US$ FOB) 931,018,098.00

Supplies for the pharmaceutical industry

1,161,582,515.00

Supplies for agriculture

447,693,091.00

Machines and equipment

64,404,503.00

Others

758,521,156.00

TOTAL IMPORTED

3,363,219,363.00

Share in Brazilian exports

3.0%

Share in Brazilian imports

2.0%

Trade balance (US$)

2,515,043,333.00

Trade Balance – Goiás Performance 1996 - 2015 – Accumulated until December

7.800 6.800

Values in US$ Million FOB

Motor vehicles and parts

5.800 4.800 3.800 2.800 1.800 800 -200 19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

Exports

03

20

04

20

Imports

05

20

06

20

07

20

08

Balance of Trade

20

09

20

10

20

11

20

12

20

13

20

14

20

15


Why invest in Goiás? Competitive advantages: • Central geographical position • Privileged logistics for the domestic market • Great quality of life • Abundance of raw material • Abundant water resources • Flat and fertile land • Regular rainfall cycle • Great Lakes - tourist activities and fish farming • Tropical region - sun high incidence

Investment opportunities for productive chains strengthening • Food and beverages (meat, soybeans, and corn by-products, dairy products, and others) • Packaging for food and medicine • Building materials (steel and plastic by- products, glass, paints, and others) • Auto parts for vehicles and machines • Fine chemicals - drugs active ingredients • Cosmetics and other beauty products • Information Technology • Farming machinery and tractors • Fertilizers • Fabrics and trimmings for clothing • Footwear and leather by-products • Storage logistics and transportation • Power generation and transmission (photovoltaic, hydraulic, and others)


Production incentive Programs

• Produzir Program – finances up to 73% of ICMS

(Value Added Tax on Sales and and Services), up to 15 years, turning part of the financing into non-refundable values, according to compliance with the Program goals.

• FCO – Federal Government Fund that finances

companies in the state of Goiás through long-term and low interest special conditions.

• BNDES – Federal Government Bank - finances investments and working capital of companies under special conditions, providing grace period for first payments and long-term for settlement, according to the project.

• Agência de Fomento de Goiás – Finances

small and medium-sized businesses with loans for working capital and investments, working with its own resources and financing lines from BNDES and FCO.

Investor support system Political and institutional support (FIEG) The Federation of Industries of the State of Goiás (FIEG), supports the State’s industrial companies, defending their legitimate interests and representing the industry before governments, other sectors of the economy, and society in general. FIEG works in close cooperation with the Government of Goiás, universities, and associations of other states industries.

International Business Center (CIN) FIEG’s International Business Center is part of a national network named Rede CIN (CIN Network), supporting companies wishing to export or import several products, raw materials, equipment, and technology, and also supporting foreign investors wishing to settle in the state of Goiás or to import raw materials and products from the same. Rede CIN counts on experts for the preparation of international events such as trade and industrial shows and missions, round of negotiations; counseling and offer of courses for international trade transactions; guidance and information on Goiás and Brazilian markets; receptive services for business and government missions, among other services.


Professional qualification - operational, technical, and technological (SENAI) The National Service for Industrial Learning - (SENAI), managed by FIEG and financed with funds raised from companies, keeps an extensive network of vocational schools, colleges, and technology centers, providing short, medium, and long term programs for qualifying teenagers and adults to the industrial labor market, for several positions, assisting the most different levels of business - from managerial and technical to operational. SENAI holds a network of 59 Technology Institutes, strategically distributed throughout the country, providing consulting services to Brazilian industries, transferring technology to companies and preparing people for many different industrial areas. Two of them are located in Goiás, one in the industrial automation area, and the other in the food sector.

Support for industry workers and their families (SESI) The Industry Social Service (SESI) is an entity present in Brazil and in the state of Goiás, created to support industry workers and their dependents. Its activities priorities are strategically directed to basic education for children and adolescents - up to high school, and education for adults who did not have the chance to conclude their studies as adolescents. More than five thousand students per year enrolled in elementary or high school in SESI only in Goiás, and high school students can choose to combine general education with vocational technical education offered by SENAI. SESI also carries out activities for the workers’ health, especially preventive medicine and workplace safety, leisure and cultural activities, along with an extensive network of sports and cultural units, throughout the main industrial hubs in the the state of Goiás and in the country.

Consulting, market research, and university-companies interaction (IEL) Instituto Euvaldo Lodi - IEL, aims at promoting interaction between universities and companies, coordinating a broad placement program and follow-up of thousands of trainees in Goiás businesses; the institute also carries out activities in market research, with a portfolio of more than 400 research projects already concluded; it also offers consulting and advisory services to small and medium-sized companies in management, including preparing its clients to obtain process and product certifications; offering training courses in management improvement, in programs open to the general public or in company.

Certification of products and services (ICQ Brasil) The Quality Certification Institute - Brazil - is a non-profit institution created by FIEG to assist entrepreneurs interested in continuous quality activities. It is a certification body accredited by the National Institute of Metrology, Quality, and Technology - INMETRO - to perform audits in Management, Products, And Services Systems.



Alto Paraíso - Salto Rio Preto

Foto: Silvio Quirino - Goiás Turismo


FEDERATION OF INDUSTRIES OF STATE OF GOIÁS - FIEG Av. Araguaia, nº 1.544 Edifício Albano Franco, Casa da Indústria Setor Leste Vila Nova – Goiânia, Goiás, Brazil Zip Code: 74645-070 www.sistemafieg.org.br

For further information on business or investments in Goiás please contact International Business Center of Goiás Rua 200, Nº 1121 Ed. Pedro Alves de Oliveira, Setor Leste Vila Nova Goiânia, Goiás, Brazil – Zip Code: 74645-230 Phone: +55 62 3501-0040 www.cinfieg. org.br cin@sistemafieg.org.br


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