what you need to know about Doing Business in Brazil.
Doing business in Brazil encompasses a numberof finacial and legal issues, and opportunities.
When doing business in Brazil you are at the forefront of deepwater production and exploration of oil and gas, as well as the production of bio-fuels. The country has developed advanced technology that allows the construction of platforms that make exploration of oil and gas in deep waters safer, and has the most successful program in the world to replace gasoline with energy from bio-fuels.
Brazil occupies a prominent position in the world as one of the 10 largest economies (and is expected to become the 4th largest by the year 20501), the largest country in Latin America and the region’s largest economy. Brazil represents a land mass of 8.5 million square kilometers, with more than 190 million people (pursuant to the 2010 census) and has a Gross Domestic Product (GDP) exceeding U.S. $ 1.3 trillion.
In this environment, given the current economic stability, strong currency, consolidated democracy and interesting investment rates of return, doing business in Brazil today one of the best and most fertile markets for foreign investment and has attracted a growing number of investors. This is especially true because Brazil is at peace in the world and respects cultural, racial, ethnic and religious diversity, welcoming foreigners who come here like no other. Countless sectors have the potential to attract foreign investment, but the energy (oil, gas, biofuels, wind and hydroelectric), infrastructure, technology and tourism markets merit particular note.
Brazil is also abundant in inland waterways and open fields, allowing the exploitation of its vast sustainable energy potential. Moreover, as a competitive differentiating factor, we should mention that Brazil has extensive still unexplored mineral and natural resources (especially the pre-salt layer, which recently was discovered to be rich in oil) and a stable regulatory structure that encourages market opening, permitting increased participation of international companies in the energy market and elevating Brazil’s status to one of the most attractive regions in the world.
Doing business in Brazil is facilitaed by important infrastructure currently, in Brazil there are 68 airports, 37 public ports (sea and inland), 42 port private use terminals, 3 port complexes which operate under concession to private enterprises2, about 89,552 kilometers of highway (Federal and State)3, 29,706 kilometers of railroad4, but with a growing population, selection as the country to host the 2014 FIFA World Cup and choice of the city of Rio de Janeiro to host the Olympic Games in 2016, these numbers should increase, opening a range of possibilities for foreign companies investing in the country.
Furthermore, in 2007, the Federal Government launched the Growth Acceleration Program (PAC), which provides for infrastructure investments in the range of R$ 503.9 billion, signaling to foreign investors the Brazilian government’s desire for growth and improvement.
As Brazil has the greatest diversity on the planet, abundant natural resources, a multiethnic populace, is a center of biotechnology research and is a strong candidate to assume a leadership position among countries that will supply food, renewable energy, technology and health related products to a rapidly growing global population. Due to these factors, Brazil is also an incomparable setting for clinical trials and development of new medicine. Doing business in Brazil in the healthcare space is quite attractive
In addition, the Brazilian market has had a high rate of growth in the consumption of services, durable goods and non-durable goods, which is seen by the increase in the number of personal computers, individuals with Internet access and subscribers to cellular phone service. This growing domestic demand also makes the technology sector one of Brazil’s most attractive markets in the world. Tourism is one of the fastest growing activities in Brazil, and is an important factor in economic development for all nations. Brazil has innumerous and breathtaking examples of natural beauty, very rich cultural diversity and, a particularly hospitable population. All these features coupled with the improvement in the infrastructure sector means that Brazil is one of the best tourist destinations in the world. Moreover, as already noted above, the implementation of major world sporting events (World Cup Soccer in 2014 and the Olympic Games in 2016) provides even more opportunities for international investors.
Finally, Brazil occupies a strategic position in Latin America: it borders 10 countries (Argentina, Bolivia, Colombia, French Guiana, Guyana, Paraguay, Peru, Suriname, Uruguay and Venezuela), is one of the strongest members of MERCOSUR and is a member of the so-called BRIC group of countries, allowing many opportunities for integration and growth for foreign investors wishing to enter the Latin American market. Doing business in Brazil is a great opportunity.