SOLUCION GREEN CONSULTING takes part in the Spain – Brazil Business Forum celebrated in Sao Paulo April 24th – 26th 2017.
The Forum was chaired by the President of the Government of Spain, Mr. Mariano Rajoy Brey, the Secretary of State for Commerce of Spain, Ms. Maria Luisa Poncela, Mr. Marcos Antonio Pereira, Minister of Industry, Foreign Trade and Services of Brazil, among others Personalities of the Government of Brazil and the business world of both countries.
In this event, the participants were informed of the great possibilities that come from investing in Brazil, a country with almost 208 million inhabitants. The most common questions that arise when investing in Brazil were answered in order to better understand the Brazilian market, as well as the existing bilateral relations between Brazil and Spain.
It should be noted that Brazil is the country with the highest Foreign Direct Investment (FDI) in Latin America and the fifth destination of FDI inflows in the world. Today, there are about 367 Spanish companies established in Brazil.
The Fondo para la Internalización de la Empresa Española (FIEM) is a financial instrument in support of the Spanish industry that promotes exports and direct investments abroad financing medium and long term operations. Spanish exports between January and November 2016 showed a growth of 1.6% compared to the same period of the previous year, according to the Foreign Trade Monthly Report prepared by the Secretary of State for Trade in January 2017. The Strategic Objectives of FIEM in 2017 include:
• Maximization of the drag effect for the Spanish economy.
• Expansion of the export base, paying attention to the financial needs of the Small and Medium Companies.
• Development of the financing of foreign investment operations.
• Diversification of the geographical markets for the internalization destination.
• Complementarity with the private sector and other public or multilateral sources of funding.
• Efficiency in the management of the instrument, financial self-sustainability, diversification and balance of risks incurred.
FIEM can finance any country but the existence of strategic objectives established by the Spanish commercial policy in order to reach a diversified portfolio causes a special interest in the financing of countries such as Brazil, South Africa, and Philippines, among others.
Furthermore, the target economic sectors, which include power generation plants, petrochemical and renewable energy plants, companies in the naval sector and the airport and port sector.
During the event, SOLUTION GREEN CONSULTING discovered the costs that arise when establishing a business. The advantages and difficulties stemming from such action were also analyzed. This analysis includes:
• The incorporation of a company
• Patents, trademarks, intellectual property, etc.
• The tax system – corporation tax and other taxes, IRPF.
• Real estate costs – industrial, non-industrial and construction land.
• Business center
• Premises and warehouses
• Expatriate staff conditions – visas and permits, hotel stay, private transport, housing, household expenses.
• Labor costs – non-wage perceptions, aids.
• Cost of supplies – electricity, water, gas, mobile and fixed telephony, and internet.
Regarding the State’s support to investments, the federal government has planned its strategy to attract investment through the following entities:
• Export and Investment Promotion Agency (APEX Brasil)
• National Information Network on Investment (RENAI), linked to the Ministry of Industry, Foreign Trade and Services
• National Confederation of Industry.
It was also stated the legal principles regarding foreign investment in Brazil, as well as the prohibitions and restrictions.
Finally, the economic and commercial report of Brazil was analyzed:
• Political situation
• Economic framework – different types of industry
• Economic situation – main macroeconomic indicators. Exports and imports by country. Tourism. Foreign investment. External debt.
• Bilateral economic relations.
• Multilateral economic relations.
During the event, SOLUCION GREEN had the opportunity to present one of its most advanced technologies: CARBONE CAPTURE NEUTRALIZATION, consisting in the capture and mitigation of C02 for the creation of BIOMASS with high added value, with the intention of opening doors into the Latin-American market through Brazil in order to be the pioneers with this state-of-the-art technology.
A heartfelt Thank You to Brazil, brotherly country, for the great opportunity to continue to grow and develop together in a green and sustainable way.