Campinas Investment Guide Indicators of Excellence 2010 edition Campinas to invest, produce and live. Brazil, a global investment target Reasons to invest in Campinas ■ A privileged location ■ Logistics ■ Viracopos ■ Infrastructure ■ First-world water and sanitation ■ State of the art health services ■ Business synergies ■ Human capital ■ Consumer market ■ Academic and technological center ■ A benchmark for public safety ■ Availability of real estate ■ Cosmopolitan vocation ■ Foreign presence Campinas, a city where you live well ■ Tradition in culture and sport ■ A green city ■ Respect for the environment ■ A center for leisure and entertainment How to get started in Campinas ■ First steps ■ Tax incentives ■ Maps of Campinas ■ Contacts Now is the best moment to invest in Campinas ampinas occupies a strategic location close to A large number of technical and professional people li- São Paulo, the capital of Brazil’s most developed ving in the city speak English and Spanish and even other state. It is now enjoying its best moment in languages such as Japanese and Mandarin. It reflects the Cdecades, in both economic and social terms. The city has active presence of the best language schools, many of them never been better prepared to receive new investments and internationally recognized. new businesses: here in Campinas, companies, investors To complete the description of the city, Campinas offers and entrepreneurs will find a city with enviable logistics: you a great standard of living. With over one million inha- 1) The best and most modern highways; bitants, the city boasts varied commerce, large green areas and innumerable facilities for leisure, sports and culture. 2) The largest cargo airport in Latin America; Sanitation levels are comparable to developed countries, 3) A rail network that connects with the port of Santos, with close to 100% of homes and properties served by the most important in South America, and one of Brazil’s sewage collection and treatment systems. The health ne- most beautiful highways, with 100% of accessibility; twork is among the best in Brazil. Surveillance cameras and an electronic monitoring system cover the main are- 4) Within two years, Campinas will be linked to São Pau- as, and the city has built a public security system that was lo by a High Speed Train. And come 2015, the same rail adopted as a benchmark by the federal government. line will run all the way to Rio de Janeiro, a journey of just an hour and 40 minutes. It is no coincidence that Campinas is today one of the 10 cities that most create jobs in Brazil. According to a study Other factors are helping make Campinas such a special by the Getúlio Vargas Foundation, a business school, ex- place. It is a technological center that the United Nations cluding state capitals Campinas is the best place to work has described as the second most important in the Sou- in Brazil. Here, everything is conducive to good business, thern Hemisphere - the first being São Paulo itself. More both for the reasons I have already mentioned and for the than 400 of the 500 largest companies in the world are existence of a series of tax incentives offered by city autho- present in Brazil, and 50 have offices in the Campinas me- rities. On the following pages, readers of this guide will tropolitan region. find several other good reasons to invest in the city. The universities in Campinas are among the best in Bra- Welcome to Campinas, a city to invest, produce and live in. zil and it reflects directly in the supply of highly qualified labor. Moreover, the city’s elementary and middle-level schools enjoy national recognition for their teaching ex- cellence. Brazil, a target for global investment razil represents an attractive investment option More than 20 million people have emerged from in a world economy that is going through major poverty to join the middle class in recent years, creating changes after the 2008 international financial a strong and vigorous domestic market. Management of Bcrisis. The country was less affected than most by the the national economy has followed orthodox policies for impacts of crisis, thanks to its solid financial system, the a decade, and the country received Investment Grade stable regulatory framework, the growing per capita in- status from major international rating agencies in 2008. come and the firmly established democracy and rule of law. Imports and exports are very diversified, both in Campinas has the Center for Bioethanol Technology terms of products and trading partners. and Research, an outstanding resource in the global search for cleaner and more efficient energy sources. The country has the world’s eighth biggest GDP, and the largest in Latin America. Brazil stands out among As part of its strategy to maintain its quality of life the BRIC countries - the group of large emerging and protect the environment, the city seeks to attract nations that also includes Russia, India and China - as companies that generate alternative energy. Some are an important supplier of raw materials and food, and now in the process of moving to the city. is on the way to becoming a major oil producer as it develops the offshore sub-salt petroleum fields. Brazil is one of the great players in the global economy, and Campinas is the best destination for domestic and Other noteworthy factors now driving growth are access foreign investments. to credit and the expansion of the labor market. These have increased the purchasing power of the Brazilian population. GDP is now projected to grow 7.3% in 2010. Growth and crisis GDP - Ranking of the world’s largest ■ In the last decade, growth of world GDP prior to economies (in US$ billion) the crisis was explained by: □ 2007 2008 2009 Globalization Country US$ billion US$ billion US$ billion □ Information USA 14.077,65 14.441,43 14.258,25 □ Technolog y Japan 4.376,19 4.885,99 5.073,45 ■ The crisis: China 3.458,31 4.415,99 4.908,98 □ Reduced financial wealth Germany 3.323,36 3.668,83 3.353,23 □ Restricted the supply of external credit France 2.593,94 2.863,49 2.676,30 □ Diminished the flow of foreign investment UK 2.800,17 2.682,69 2.185,75 Italy 2.114,26 2.310,92 2.117,80 ■ In this scenario, Brazil’s prospects will be influenced by: Brazil 1.366,29 1.637,92 1.531,51 Spain 1.440,82 1.600,10 1.464,25 □ The sophistication and independence of its financial system Canada 1.427,20 1.499,55 1.343,16* □ The low degree of openness to trade India 1.187,33 1.260,04 1.284,82* □ The indicators of external and fiscal solvency Russia 1.294,05 1.660,01 1.229,15 ■ *Estimates Campinas enjoys autonomous drivers for growth Source: Economist Intelligence Unit; Folha de S. Paulo newspaper based on: “Money” section, March 28, 2010 □ Logistics □ Technolog y □ Generation of knowledge BRAZIL: second economy in the Americas in 2009 world ranking □ Health 10th place ranking in 2007 □ Standard of living and a demanding, high-income 9th place ranking in 2008 consumer market that ranks ninth in Brazil, 8th place ranking in 2009 according to research by IPC Marketing. GDP - US$ billion (2009) - Major world economies 14,3 14.000 12.000 10.000 8.000 6.000 5 4,9 3,4 4.000 2,7 2,2 2,1 1,5 1,4 1,3 1,28 1,2 2.000 0 USA Japan China Germany France UK Italy Brazil Spain Canada* India* Russia *Estimates Source: Economist Intelligence Unit 6 Gross Domestic Product (GDP) - Countries in South America at 2008 current values - in US$ billion 1.613 1.600 1.200 1.000 800 600 400 314 328 242 169 200 127 53 16 17 32 0 Paraguay Bolivia Uruguay Ecuador Peru Colombia Chile Venezuela Argentina Brazil Source: IMF What’s driving Brazilian growth The strength of the economy can also be measured by Brazil’s investments in other countries. Brazilian Brazil occupies a leading position in Latin America companies like Vale, Petrobras, Embraer, Itautec, thanks to: Odebrecht and Ambev are already investing abroad, and make Brazil the second largest outward investor among ■ Its continental dimensions - Brazil is the fifth largest developing nations. country in the world, measuring 8.5 million square kilometers and occupying 42% of Latin America and Mergers and acquisitions involving Brazilian companies 50% of South America. continue to grow. It has become increasingly common for Brazilian firms to acquire companies abroad. Expanding ■ Its location - counting the Guyanas, Brazil borders 10 consumption is the key driver - local industries are countries. setting successive production records - together with the ■ Its economic strength - Brazil has the world’s 8th increasing availability of credit, the reduction of interest largest GDP and the largest in the region (36% of all rates throughout the year, the falling country risk and Latin America and 55.31% of South America). the rising international reserves. ■ The business environment and the prevalence of the The continued development of capital markets has democratic rule of law. stimulated investment by domestic companies. This underscores the reliability of the Brazilian economy, ■ Population - approximately 200 million inhabitants. and the moment is propitious for investment and market entry by multinational companies. 7 Business Competitiveness Ranking Brazil is the best option for investment 2008 / Quality of the Business in Latin America Environment (South America) ■ Size of the internal market ■ Inflation is under control Chile 1 ■ The growing purchasing power of the population Brazil 2 ■ More than 20 million Brazilians joined the middle Colombia 3 class in recent years Uruguay 4 ■ Legislation for foreign capital dating from 1964 Peru 5 provides total security for the repatriation of profits Argentina 6 ■ The country has been awarded Investment Grade Venezuela 7 status by ratings agencies Fitch, Standard & Poor’s and Ecuador 8 Moody’s.