BUSINESS OPPORTUNITIES
IN PERU
1
Business environment
nd
Peru ranked 2
rd
/ 3
best to do business in South America
Doing Business Index (2013)
Forbes Ranking (2013)
Source: World Bank, Forbes
Investment grade among the best in South America
Source: S&P, Fitch, Moody’s
A favourite destination of foreign investment in Latam
Foreign Direct Investment as percentage of GDP (2012)
Source: BID, BCRP, Proinversión
Stable tax regime
1.
Class of tax
Rate
Corporate tax
30%1
Tax on dividends
4.1%
Tax on royalties
30%
Interests on external loan
4.9%
VAT
18%
Tax on financial transactions
0.005%
Corporate tax is lower for companies based in the Amazon region (5 or 10%) and for production of certain agriculture products (15%)
Source: Proinversión
FTAs generate stability…
Source: EY
… and very low import tariffs
Evolution of import tariffs
Source: Proinversión
Engagement to an open economy within and beyond the Pacific Alliance
GDP per capital > US$ 6,000 means growing demand for added value
GDP per capita (current US$)
Source: World Bank
A growing demand for added value
Source: World Bank
Modern retail is growing fast and facilitates new product entry
2001
2011
Modern retail is growing fast and facilitates new product entry
KEY TRADE FACTS
• Flemish exports to Latin America: 5.2 bn € (2013)
• +30.61% increase over 2012 – highest increase worldwide
• 1.77% of total Flemish exports (293.6 bn €) – potential!
• Flemish exports to Peru (2008/2013): 101.2 mio €/207.2 mio €
• + 17.85% increase over 2012
• No. 76 market worldwide
KEY TRADE FACTS
• Most important Flemish export products (2012):  Machinery and mechanical devices (30,47%)
 Mineral fuels (15,19%)
 Vehicles/tractors (8,87%)
 Pharmaceutical products (6,15 %)
 Confidential trafic (4,31%)
• ‘Pacific Alliance’ versus Mercosur
Belgian companies in Peru
2
Economic sectors of interest
Mining, oil and gas, agro, fishing and textile Source: Ernst & Young Peru
Mining exports above US$ 25 billion annually; mainly copper and gold
Mining exports by product (US$ FOB)
Source: Ministerio Energía y Minas
Peru among top destinations wordwide for mining investments
Main destinations for mining investments (2013)
Source: Grupo Económico de Metales
More than 40 on‐going projects
Source: Ministerio Energía y Minas
US$ 60 billion of investment planned until 2020, 60% in copper
Source: Ministerio Energía y Minas
Companies and opportunities
Mining
• Companies
• Antamina ‐
www.antamina.com/
• Yanacocha ‐
www.yanacocha.com.pe/
• Southern Peru ‐
www.southernperu.com/
• Shougang ‐
www.shougang.com.pe/
• Barrick ‐
www.barrickperu.com/
• Cerro Verde ‐
http://www.fcx.com/operat
ions/Peru_Arequipa.htm
• Las Bambas ‐
www.rrhhlasbambas.com/
• Chinalco ‐
www.chinalco.com.pe/
• Opportunities
• Security equipment
• Specialized products
Electricity production is growing at a fast speed to satisfy demand
Electricity production in Peru in GWh Source: Ministerio Energía y Minas
Mainly hydraulic & thermal production; renewables on the rise
Source: Ernst & Young Peru
More than US$ 6 billion in investment planned in energy generation and transmission
Source: Proinversión
Companies and opportunities
Energy
• Companies
• Generation
• EDEGEL (Endesa) ‐
www.edegel.com/
• Electroperú (Peruvian State) ‐
www.electroperu.com.pe/
• Enersur (GDF Suez) ‐
www.enersur.com.pe/
• EGENOR (Duke Energy) ‐
www.duke‐energy.com.pe/
• Transmission
• Red de Energía del Perú (ISA) ‐ www.rep.com.pe/
• Distribution
• Luz del Sur (Ontario Quinta) ‐
www.luzdelsur.com.pe/
• Edelnor (Endesa) ‐
www.edelnor.com.pe/
• Opportunities
• Security equipment
• Specialized products
Booming agro exports demand increasing industrialization
Agro exports (US$ FOB)
Source: Proinversión
Companies and opportunities
Agro
• Companies
• COMPLEJO AGROINDUSTRIAL BETA ‐
www.beta.com.pe/
• CAMPOSOL – www.camposol.com.pe
• Citrus (mostly Mandarins)
• Consorcio de Productores de Fruta ‐
www.cpf.com.pe/
• Procesadora Larán ‐ www.lacalera.com.pe/
• Avocado
• Camposol ‐ www.camposol.com.pe/
• Consorcio de Productores de Fruta –
www.cpf.com.pe
• Grapes
• Agrokasa ‐ www.agrokasa.com.pe/
• Camposol – www.camposol.com.pe
• Mangoes
• SUNSHINE EXPORT ‐
www.sunshineperu.com
• CAMPOSOL – www.camposol.com.pe
• Asparagus
• Milk products
• Gloria ‐ www.gloria.com.pe/
• Laive ‐ laiveesvida.com • Opportunities
•
•
•
•
•
processing and packaging equipment bottle filling equipment machines for the dairy industry heat exchangers machines for wheat and grain processing • machines for conditioning of fruits, vegetables and nuts.
Industry requires technology and specialized goods
Companies and opportunities
Industry
• Companies
• Food and Beverages
•
•
•
•
Alicorp ‐ www.alicorp.com.pe/
Aje Group ‐ www.ajegroup.com
Lindley ‐ www.lindley.pe/
Gloria – www.gloria.com.pe
• Cement and Concrete
• Unacem and Unicon –
www.unacem.com.pe –
www.unicon.com.pe
• Pacasmayo ‐
www.cementospacasmayo.com.pe
• Yura ‐ www.yura.com.pe/
• Steel
• Aceros Arequipa ‐
www.acerosarequipa.com/
• Sider Perú ‐ www.sider.com.pe/
• Pharma
• Medifarma ‐
www.medifarma.com.pe
• Farmaindustria ‐
www.farmindustria.com.pe/
• Textile
• Creditex ‐ www.creditex.com.pe
• Cotton Knit ‐ www.cottonknit.com/
• Hialpesa ‐ www.hialpesa.com/
• Opportunities
• Processing and packaging equipment • Bottle filling equipment • Handling equipment (concrete)
• Chemicals
• High‐tech equipment
Large investments in infrastructure Planned investments in infrastructure 2014 ‐ 2016
Source: Ministerio Transporte y Telecomunicaciones
6 metro lines to be built in Lima in the next few years
Source: Proinversión
US$ 5 billion will be spent on housing construction in 2014
Real estate prices in Lima are catching up with the other S.A. capitals
Main companies & opportunities
Construction and real estate
• Main companies
• Infrastructure and construction
•
• Graña y Montero ‐
www.granaymontero.com.pe/
en/
• Cosapi ‐ www.cosapi.com.pe/
• JJC ‐ www.jjc.com.pe/
• Real Estate
• Inmobiliari ‐
www.inmobiliari.com.pe/
• Viva GyM ‐
www.vivagym.com.pe/
• Imagina ‐
www.imagina.com.pe/
Opportunities
• Machines and tools for automatization of construction
• Chemicals and additives for special construction (e.g. corrosion, moisture)
Peru’s growing economy requires better logistics
Airports
Metro
Railway
Harbours
Companies and opportunities
Infrastructure Operators
• Main companies
• Airport operators
• Lima Airport Partners ‐
www.lap.com.pe/
• Talma – www.talma.com.pe
• Metro operator
• Linea 1 ‐ www.lineauno.pe/
• Railway operator
• Ferrocarril Central Andino ‐
www.ferrocarrilcentral.com.pe/
• Perurail ‐ www.perurail.com/
• Harbour operator
• DP World Callao (Dubai Port) ‐
www.dpworldcallao.com.pe/
• APM Terminals Callao ‐
www.apmterminals.com/
• Tisur ‐ www.tisur.com.pe/
• Opportunities
• Handling equipment
• Logistics software and technology
More than 3 million tourists visited Peru in 2013
Numbre of tourists visiting Peru:
Source: Mincetur
Tourism can still grow thanks to its numerous assets
• Important cultural and archeological destinations (e.g. Machu Picchu)
• Mega bio‐diversity
• Bird watching
• Lima is considered as the “gastronomic capital” of Latin America
• Important investments in prestigious hotel chains
• Higher air connectivity
• Investment opportunities in new touristic destinations
Source: Mincetur
Companies and opportunities
Tourism Operators
• Main companies
• Condor Travel ‐ www.condortravel.com/
• Nuevo Mundo ‐ www.nuevomundoviajes.pe/
• Inka Travel ‐ www.inkatravelperu.com/
• Opportunities
• Integration of services between Flanders and Peru –
South America
3
Doing business in Peru
Free trade agreement between EU and Peru‐Colombia brings opportunities
• Tariff elimination for goods:
•
•
•
•
•
•
•
•
•
•
•
• Simplified Labelling Requirements
Construction equipment
• Customs and Trade Facilitation
Medical devices, optical instruments
• Equal opportunities for government Machinery
procurement
Electrical and electronic equipment
• Higher protection of intellectual Pharmaceuticals
property
Chemicals, rubber and plastics
Textiles and clothing, footwear
Ceramics
Cosmetics
Processed pork meat (after 7 years)
Milk powder, some cheeses and processed dairy products
Distributor or partner generally required due to complexity
Food and drinks
Modern vs traditional channels
20%
30%
70%
Modern
Number of points of sale
Construction materials
Pharmaceuticals
40%
60%
80%
Traditional
170,000
Modern
Traditional
14,000
Modern
Traditional
10,000
Make sure you perform an extensive check of potential distributors
• Visit the distributor’s own facilities
• Check references with other producers working with the distributor
• Check the company’s registration and manager’s right to sign contracts
• http://www.sunat.gob.pe/cl‐ti‐itmrconsruc/jcrS00Alias
• Check the distributor’s recent imports
• http://www.aduanet.gob.pe/cl‐ad‐
itconsultadwh/ieITS01Alias?accion=consultar&CG_consulta=1
• Flanders Investment and Trade can help
Visiting your potential partners and clients in Peru is highly recommended
Trust will not be built at a distance
Tips for first meetings in Peru (1)
• Spanish spoken, almost no English (translator)
• Don’t forget your business cards and small gifts (e.g. Belgian chocolates or beer)
• Peruvian purchasing criteria: delivery time, after‐
sales guarantees, price/quality, innovative character of the product/service
• Take a taxi recommended by your hotel (inexpensive and safe)
• Formal dress code (especially with larger and more traditional companies)
Tips for first meetings in Peru (2)
• Business breakfast (8AM) and business lunch (1PM) are common
• Meeting time at the office is normally from 9:30AM to 6PM, although time is flexible in Peru
• Expect your Peruvian client to be late – punctuality and traffic are big issues in Peru
• Peruvians are sensitive to what foreigners think of their country ‐ Share your enthousiasm about Peruvian gastronomy, landscapes and people!
75% of large companies are based in Lima
Participating at a local fair is ideal for a first follow‐up visit
FIT is here to help you
Local
Antenna
Santiago
Office
Alexis Bossuyt
Investment and Trade Commissioner FIT Santiago
Koning Albert II‐laan 37 | BE‐1030 | BRUSSELS | BELGIUM
www.flandersinvestmentandtrade.com | info@fitagency.be
twitter.com/fitagency | twitter.com/InvestFlanders | www.linkedin/groups