Technology and agroindustry, most competitive sectors to attract investments from Brazil into Bogota
A delegation of representatives from Bogota companies and organizations is in Santiago, Chile on a mission to promote their home city in the areas of investment, exports, tourism, and international relations. The Bogota Chamber of Commerce, the District Institute of Tourism, the District Department of Development, the District Department of International Relations, and Invest in Bogota, with support from the business office of Proexport in Chile, have an agenda that particularly includes a multisectoral investment seminar and export promotion activities. In turn, liaison meetings are being held with government agencies and business associations in addition to one-on-one meetings with potential investors.
In 2013, Chile generated a GDP of US$ 276.9 billion. According to the World Bank’s Doing Business ranking, the country is the first among 18 countries in Latin America and 34th among 189 countries around the world. In turn, according to the 2014–2015 Global Competitiveness Report of the World Economic Forum, Chile also ranks first among 18 Latin American countries and 33rd among 144 countries around the world. The World Competitiveness Yearbook 2014 (IMD) places it first among 7 Latin American countries and 31st among 60 countries from around the world.
Seven Bogota entrepreneurs are participating in the Santiago mission to explore the market potential among Chilean business leaders in the fields of auto parts, car bodies and mass transit; footwear, leather, and leather goods; clothing; construction furniture; outsourcing services; finance; and manufacturing.
Mónica de Greiff, President of the Bogota Chamber of Commerce, explains: “We lead efforts to contribute to the international positioning of the city, and are thus actively participating in promoting Bogota’s multisectoral mission to Santiago. The CCB is present in the business promotion component, accompanying the exploratory mission by Bogota entrepreneurs who are interested in doing business with Chile; we will also have an interagency agenda that includes environmental issues and projects aimed at improving the cities’ competitiveness.”
Bogota’s internationalization has fostered the emergence of a city that actively pursues the development of innovative projects and solutions tailored to the complexities of urban Latin American. The promotion of the city during this mission will invite exploring and sharing business opportunities and an exchange of experiences in urban development that may lead to the signing of an agreement with the city of Santiago.
Gustavo Torres, Director (e) of the District Department of International Relations, said: “The mission is important for the capital’s international recognition as a destination for business, tourism, and investment and even more so, for the dissemination of the local government’s program championed by Mayor Gustavo Petro, Bogota Humana, where human beings are seen as the center of the development process. In that context, the project addresses land use, mobility, and climate change, among other issues. Therefore, different entities are providing further information and demonstrating the results and expectations.”
According to Proexport, Colombia is the seventh destination of choice for residents in Chile; Chile is the ninth largest source of tourists arriving in Colombia, accounting for 2.5% of all travelers entering the country. In 2013, Bogota was one of the most visited cities by Chileans in Colombia with a visit rate of 41%; this figure represents about 37,381 visitors. The 14 flights per week between Santiago and Bogota offer a total of 3,262 seats.
Tatiana Piñeros Laverde, Director of the Institute of Tourism, said: “We want to strengthen our tourism value chain to improve the economic, social, environmental, and cultural sustainability of Bogota as a tourist destination.”
In the last decade, Chile has made new investments in Colombia reaching a total value of US$ 3.178 billion, 26.7% of which comes to Bogota. Chile was also the most important source among Latin American countries in terms of new investment in Bogota. Estimates from Invest in Bogota, based on fDi Markets, ranking the origin countries of new investments in Bogota, place Chile fourth with US$ 849.2 million coming after the United States (US$ 3,323.3 million), Spain (US$ 1,578.9 million), and France (US$ 1,371.1 million). During this period, new investment of Chilean origin in Bogota flowed to following sectors: consumer products (27.7%); communications (25.8%); financial services (15.9%); food (11.8%); paper, printing and packaging (8.8%); real estate (3.9%); and wood products (3.7%).
The top 10 Chilean-origin multinationals in Bogota are: Cencosud, Falabella, Arauco, LAN, Sonda, Ripley, Sigdo Koppers, Empresas CMPC, CSAV, and MASISA.
Juan Gabriel Pérez, CEO of Invest in Bogota, the city’s investment promotion agency, states: “This mission is part of our strategy to promote investment in value-added sectors and a key element of the city’s international positioning. We will meet potential Chilean investors with clear intentions to expand their operations in the priority sectors established by Bogota to attract investment. This prioritization is based on the ability of firms to generate quality jobs, knowledge, and technology transfers, as well as to support the city’s economic development.”