Colombia

3 Chapter Investment Environment

    • Investment environment in Colombia

      ■ Current status of business environment From 2016 (questionnaire)
      The World Bank and the International Finance Corporation (IFC) jointly announce "the current state of business environment 2016" in 2015. From this questionnaire we will look at Colombia's evaluation of the world.

      Colombia's ranking is ranked 54th in 189 countries and regions (34th in 2015) in the overall ranking. Mercosur's Brazil (116th), Argentina (121th), Venezuela (186), and Melkoser in Brazil, which are equivalent to Chile (48th) and Peru (50th) in the Pacific alliance steadily achieving economic development in Latin America It is a great deal of water to open up.

       

       

      【World Business Environment Ranking】

      Indicator item

      2015

      2016

      Up/Down

      Business start

      84

      84

      No change

      Construction permission procedure

      61

      38

      23 rank ↑

      Procurement of electricity

      92

      69

      23 rank ↑

      Creating assets

      42

      54

       12 rank ↓

      Financing

      2

      2

      No change

      Protect investors

      10

      14

      4 rank ↓

      Tax payment

      146

      136

      Rank 10 ↑

      Cross-border transaction

      93

      110

      17 rank ↓

      Performance of contract

      168

      180

      12 rank ↓

      Withdrawing business

      30

      30

      No change

      Overall Ranking

      34

      54

      20 rank ↓

      Source: World Bank · International Finance Corporation (IFC)

      "Present state of business environment 2015" "Current state of business environment 2016"

       

      In the ranking of 2016, Columbia is ranked higher than the overall ranking by four items, "construction permission procedure", "fund procurement" "investor protection" "business withdrawal".

    • Financial (stock) market

       It was formerly the "Bogota Stock Exchange" founded in 1928, merged with Medellin and Cali exchanges in 2001 and became the current "Colombian Stock Exchange" (BVC: Bolsa de Valores of Colombia) It was. The market capitalization is US $ 202.6 billion (December 2013), which is the second largest in Latin America next to Sao Paulo's BM & F Bovespa (Brazil), Mexico Stock Exchange and Santiago Stock Exchange (Chile).
      With peaks in the first half of 2013, stock prices have been on a downward trend, following the international situation such as the decline in oil prices, the shrinking of US monetary easing, the slowing of the Chinese economy, but also showed signs of recovery slightly from the end of 2015 I will.
       
      The Pacific alliance (Colombia, Peru, Chile, Mexico), which is promoting economic integration, is promoting the integration of stock exchanges and established the MILA (Mercado Integrado Latinoamericano) in 2011. Stock exchanges in Colombia, Chile and Peru will be able to trade securities in their respective countries, and in 2014 the Mexican stock exchanges are joining. Once market integration is completed, the market capitalization is the second largest after Sao Paulo's BM & F Bovespa, and Latin America is the largest number of listed companies.
       
       

       

       

      【Trend of Colombian Stock Exchange Stock Price (COLCAP)】

         

      * COLCAP: market capitalization weighted average index of the 20 most highly liquid stocks of listed shares

      Source: Bloomberg

    • Exchange rate

       The Colombian currency peso became a controlled float system that induces the exchange rate within a certain range in 1994, but it triggered the worldwide currency crisis in emerging countries that originated from the Asian currency crisis in the latter half of the 1990s In 1999, it was changed to floating exchange rate system (complete float system).


      Although the peso's decline continued after the shift to the floating exchange rate system, the second year of the Uribe regime with the prospect of improvement of security, the economic growth will become full-fledged, and at the same time the peso will turn to a high tone. It recovered from the one that plummeted for a while with the Lehman shock, and it has been moving at a high peso till mid 2014.


      However, due to the decline in international crude oil prices, the shrinking of US monetary easing, and the deceleration of the Chinese economy, the drastic lira depreciation started in the second half of 2014. In September 2014 it was 1 US dollar 1,800 lira, but in February 2016 the lowest price of 3,360 lira was renewed, which means that the US dollar fell by 80% in the year and a half. However, Colombia's macroeconomy is robust and the foreign currency reserves are equivalent to about seven months imports, so the risk of the imminent currency crisis is expected to be low.


       


      [Exchange rate transition] (US dollar / peso)

       

      Source: OANDA "Forex Trading and Exchange Rates Services"


       The exchange rate as of March 24, 2016 is 1 US dollar = 3,097.36 pesos (OANDA "Forex Trading and Exchange Rates Services").

    • Foreign direct investment

       In the latter half of the 1990s, foreign direct investment (FDI) to Colombia was sluggish under the influence of the currency crisis of Asia, Brazil, etc. and the deterioration of security by anti-government armed guerrillas. However, due to security restoration under the Uribe regime, in 2005 the manufacturing investment soared to US $ 10 billion. After that, while increasing and decreasing repeatedly, investment in exploration and drilling of petroleum and coal is actively carried out, and it reaches the highest amount of US $ 16 billion in 2013.
      As in the previous year, 2014 is in the order of US $ 16 billion, but it can be seen from the perspective of industry. Mining related investment such as petroleum and coal somewhat stagnated due to a decline in crude oil prices in the latter half of 2014 and delay in licensing procedures for large projects. It decreased by 20% from 8 billion US dollars to 6.4 billion US dollars, and the share of the total accounted for 50% to 40%.
       
      Meanwhile, financial, real estate, transportation, warehousing, and communications, which are booming with domestic consumption and demand for infrastructure that show strength, are growing strongly. Investment from Europe is particularly popular, and in 2014, Millcom International Cellular Company (Luxembourg) acquired a 51% stake in Colombia Communication Giant UNE, Swiss Lee Company in Switzerland (Switzerland) and the world reinsurance company Also large investment by the major insurance company AXA Group (France) is decided. In 2015, investment projects in the manufacturing industry are also continuing, including the construction of a motorcycle factory for the hero (India) and the construction of a small commercial vehicle plant by Fukuda Automobile (China) of the Beijing Automobile Group.
       
      Trends in Japanese manufacturers include Nissin Foods aiming for new markets of instant noodles by advancing to Bogota in 2013, Isuzu Motors, which established bus and truck production lines in the outskirts of Bogoda, Buena Pentura at the Pacific coast in 2014 Vigorous investment, such as Furukawa Electric Works, which began operation of optical fiber cable factory in near Kari, has begun.
       
      Investments aimed at entering the Colombian domestic market are expected to be promising in the future, and not only the mining sector but also the diversification of investment target industries will advance, and it will be expected to transform into a more multilayered industrial structure .
       

       

      【Foreign Investment (FDI) Acceptance Amount (Flow)】 (Unit: US $ 1 million)

       

      2007

      2008

      2009

      2010

      2011

      2012

      2013

      2014

      Foreign Investment Amount

      9,049

      10,596

      7,137

      6,899

      13,438

      15,529

      16,200

      16,054

      Source: JETRO

       

       

      【Foreign Investment Payment by Industry (Flow)】 (Unit: US $ 1 million)

       

      2013

      2014

      Amount of money

       Composition ratio

      Amount of money

      Composition ratio

      Growth rate

      oil

      5,112

      31.6

      4,837

      30.1

      -5.4

      Mining (including coal)

      2,977

      18.4

      1,582

      9.9

      -46.9

       (Mining sub-total such as oil and coal)

      8,089

      49.9

      6,419

      40.0

      -20.6

      Manufacturing industry

      2,590

      16.0

      2,928

      18.2

      13.0

      Finance / real estate

      1,606

      9.9

      2,478

      15.4

      54.4

      Transportation/warehouse/communication

      1,386

      8.6

      1,921

      12.0

      38.6

      Commercial/dining out/hotel

      1,136

      7.0

      840

      5.2

      -26.1

      construction

      378

      2.3

      661

      4.1

      74.9

      Electricity, gas, water supply

      395

      2.4

      458

      2.9

      15.7

      Agriculture, Forestry and Fisheries

      296

      1.8

      199

      1.2

      -32.9

      Total (including others)

      16,200

      100.0

      16,054

      100

      -0.9

      * Balance of payments basis, net

      Source: JETRO

       

       

      【Foreign Investment Amount by Country / Region (Flow)】 (Unit: US $ 1 million)

       

      2013

      2014

      Amount of money

      Composition ratio

      Amount of money

      Composition ratio

      Growth rate

      North America (NAFTA)

      3,674

      22.7

      3,263

      20.3

      -11.2

          USA

      2,861

      17.7

      2,213

      13.8

      -22.7

        Mexico

      565

      3.5

      618

      3.9

      9.5

        Canada

      248

      1.5

      432

      2.7

      74

      Europe

      6,083

      37.6

      7,061

      44.0

      16.1

        Swiss

      2,084

      12.9

      2,814

      17.5

      35.1

        Spain 

      951

      5.9

      2,155

      13.4

      126.7

        UK

      1,416

      8.7

      1,080

      6.7

      -23.8

        Netherlands

      580

      3.6

      419

      2.6

      -27.6

      Caribbean Islands Area

      3,222

      19.9

      2,162

      13.5

      -32.9

        Bermuda Islands

      846

      5.2

      1,070

      6.7

      26.4

        Barbados

      418

      2.6

      535

      3.3

      27.9

      Central America

      2,070

      12.8

      2,519

      15.7

      21.7

          Panama

      2,055

      12.7

      2,453

      15.3

      19.4

      South America

      891

      5.5

      944

      5.9

      5.9

        Chile

      319

      2.0

      456

      2.8

      43.1

        Peru

      76

      0.5

      266

      1.7

      251.5

        Venezuela

      91

      0.6

      115

      0.7

      26.7

      Asia-Pacific

      131

      0.8

      137

      0.9

      4.6

        Japan

      67

      0.4

      56

      0.3

      -16.9

        Australia

      7

      0.0

      34

      0.2

      384.8

        China

      22

      0.1

      29

      0.2

      33.6

      Total (including others)

      16,199

      100.0

      16,054

      100.0

      -0.9

      * Balance of payments basis, net

      Source: JETRO

       

    • infrastructure

       According to the World Economic Forum's "The Global Competitiveness Report 2015-2016", Colombia's comprehensive evaluation of infrastructure is 84th among 140 countries. It is ranked lower than Chilean 45th in Latin America, 59th in Mexico, 74th in Brazil, and it is an evaluation with infrastructure development delayed with 87th in Argentina and 89th in Peru. Evaluation of each infrastructure is 126 roads in the road, 106 in the harbor, 85 in the airport, 74 in the airport, 59 in the electric power, 72 in the fixed telephone and 72 in the mobile phone, especially the transport infrastructure such as roads and railroads It is an evaluation that it is.
      In Colombia, foreign investment has increased sharply due to recent improvements in security, but it has been said that infrastructure development has problems. The Santos administration said that it will strengthen inflation by fully developing the public-private partnership (PPP: Public Private Partnership), and the Public-Private Partnership Act (APP, Asociaciones Público Privadas) came into effect in 2012.
       
      This is because infrastructure development and operation is mainly done by concession method (a method of transferring operation rights to private enterprises and organizations, etc.), it is possible to turn private and domestic private investment into effective infrastructure development, and finance expenditure Can be suppressed to some extent.
       
      The Colombian government has positioned infrastructure development as the national development plan 2010-2014 (PND: Plan Nacional de Desarrollo 2010-2014) and further develops it in PND 2014-2018. If the government is committed to issues that private citizens can not deal with, such as the opposition movement of local residents, it is thought that infrastructure development will proceed faster than ever before.

       

      ■ Road


      Colombia is the only country in South America that is in contact with the Caribbean and the Pacific Ocean, so it has a geopolitical advantage with good access to North America, Europe and the Asia Pacific region. However, an Andean mountain range of 3,000 meters to 5,000 meters in height divided into three parts is divided through the national south and divided nationwide. Major cities such as Bogota and Medellin are located in the center between Andean and away from the ports of Cartagena and Barranquilla facing the Caribbean Sea and to the port city of Buenaventura on the Pacific Ocean side, Because it crosses two mountain systems, access is bad, it has been considered as a long-term task.


      In particular, Bogota has only one route from Buenaventura, and it is often said that Bogota can not pass due to natural disasters, and it is said to be a bottleneck in logistics. There are times when it takes more days between Buenaventura Port and Bogota than the Pacific route from Asia and transportation costs are high in reality. There are also cases using the Caribbean route through the Panama Canal as a struggle against the desperation. For Colombia, which aims to expand trade with the Asia-Pacific region, maintenance of the East-West Road is the biggest challenge.


      The Colombian government launched the "Prosperity Roads Project" in 2013 as an infrastructure development plan based on the "National Development Plan" (PND: Plan Nacional de Desarrollo), and by the year 2021 a highway of 5,200 km Road maintenance including the plan is scheduled. Also planned are the first and second Linea tunnel between Bogota and Buena Bentura, two lanes improvement, the Magdalena bridge crossing on the north-south route and the development of two lanes. In Colombia, tunnel construction and cross-linking unique to steep mountainous areas is one of the keys to road maintenance.


      It is expected that the reduction of physical distribution cost by road improvement will enhance Colombia's international competitiveness and promote foreign investment, it will become a major factor in domestically strengthening ties between major cities that are tending to be divided, and to revitalize the economy It is done.


       


      【Road maintenance plan (~ 2021)】

       

       

       

                                                                    

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      Source: METI

       

      ■ Port


      Colombia faces the Caribbean Sea in the north, the Pacific Ocean in the west, and is also close to the Panama Canal, so it is in a position blessed with shipping worldwide. Furthermore, it is said that the importance of Colombian shipping is increasing more and more due to expansion of trade with the Asia-Pacific region, expansion of the Panama Canal completed in 2016, and so on.


      Privatization of harbor management began in the 1990s, and under the supervision of the government, an independent profitable regional company (Sociedad Portuaria Regiona) will be responsible. Therefore, there are many ports operating 24 hours by efficient operation, and if infrastructure development progresses, it seems to strengthen the position as a hub of Latin America as a more dynamic shipping base.


      On the Caribbean coast, the estuary delta topography of the Magdalena River and the Cauca River expands and there are many ports such as Cartagena Port, Barranquilla Port, Santa Marta Harbor, etc., because access to the inland is relatively good. These harbors are the starting point of the route leading to the Asia-Pacific region through the Caribbean Sea, the Atlantic Ocean through North America, Europe, the Panama Canal, which can be said to be the lifeblood of Colombia, which promotes free trade.


      In contrast, the coast of the Pacific Ocean has a steep topography, so there are few suitable harbors, so it is limited to Buenaventura Port and so on. Access to some inland areas of major cities has been an issue, but as the trade with the Asia-Pacific region in recent years has expanded, the importance of the Pacific coastal port has increased significantly, and development has been advanced as a top priority issue It is.

       

       

      [Trucking by Main Port (2013)] (Unit: 100 tons)

       

      Import

      export

      Other

      total

      Cartagena

      71,982

      97,744

      155,330

      325,056

      Santa Marta

      63,509

      124,018

      67

      187,594

      Buenaventura

      116,028

      42,045

      5,158

      163,231

      Palankia

      54,944

      41,260

      1,462

      97,666

      Moroskejo Bay

      na

      369,995

      5

      370,000

      Total (including others)

      314,891

      1,341,357

      174,491

      1,830,739

      Source: JETRO

       

       

      [Port of Cartagena]


      Cartagena Port has the geographical conditions such as close access to the United States which is the largest trading partner country, close to the Panama Canal, and has a route to both the shipping companies based bases, one of Caribbean's leading hubs It is a port. Container freight, bulk export, transshipment freight etc. A wide range of handled cargo volume doubled from 16.3 million tons in 2006 to 32.5 million tons in 2013. As deep as 15 to 20 m deep, we can accept large vessels such as "Panamax" (the largest vessel size that can pass through the Panama Canal) and also deal with "post · manamax" associated with Panama Canal expansion work doing.


      In recent years, operation has been carried out for 24 hours with highly efficient operation, and it is highly appreciated such as collection and unloading of containers in the management system from the satellite, crackdown on smuggling by surveillance cameras, strengthening security, and prompt custom clearance.


      A lot of foreign capital companies related to petrochemicals have advanced to Cartagena and it is also an industrial base where many free trade areas are located in the surrounding area. In addition, the Old Town is a tourist site called the World Heritage Site, and it is also famous as a cruise ship's destinations. It is expected to develop as one of the most important port cities in the Caribbean Sea.


       


      [Buena Bentura Port]


      Major Port of the Pacific Ocean Buena Bentura Port is the most imported port in Colombia, as most cargoes from the Asia-Pacific region are landed. However, it is said that it already exceeds capacity of handling. In addition to being anticipated to expand import volume, in the future there are plans to make it a base for exporting resources to the Asia-Pacific region, and there is a high potential port that is expected to expand logistics.


      The current Buenaventura Port is located on the small island of Kalkahar Island and has little expansion space for ports, so new port facilities will be built in the neighboring Aguadulce area, Delta Del Rio / Douga area, Malaga Bay I have plans to do. Among them, it is said that when the port of Aguadulce built under construction of the current port is completed, it will be possible to handle 12 million tons of container per year and export 7 million tons of coal, not only dredging and terminal construction but 21 km The development of the surrounding road covering the area is also advanced at a rapid pace.


      There are issues such as access to major cities, expediting customs clearance procedures, poor security in the Buenaventura area, but there will be no doubt that further progress will be made as a major base for future Asia-Pacific trade.


       


      [Barranquilla Port]


      Located in the mouth of the Magdalena River facing the Caribbean Sea, Palanquaha Port is a trade port connecting 122 countries (as of 2014) with routes, mainly for general cargo and liquid cargo such as oil and petroleum products.


      Also, since the port of Palankja is located in the mouth of the estuary, the depth of water is slightly shallow as 12-15 m, which can not correspond to a large ship, but it occupies an important position as a key to transporting domestic rivers. The largest river in Colombia The Magdalena River is said to be suitable for water transport for about 1,000 kilometers to the middle district, so you can connect to Cartagena via the dike canal. The Magdalena River plans to invest around 400 million US dollars by 2019, construction of revetment, dredging, water gate maintenance will be carried out, and river transport will be further activated.


      Even Paranquilla, a new port construction plan with a water depth of 22 m has started, and a large-scale public and private project has started to aim for sharing in 2030.


       


      [Santa Marta Harbor]


      The Santa Marta port facing the Caribbean Sea is the largest resource-harboring port in Colombia, which is mainly for bulk transportation of coal, oil, palm oil and grain. It is expected that Colombia's only port, currently accepting Post · Panamax, will become more important as the Panama Canal expands.


       


      [Moroskejo Bay]


      Located in the southern part of the Caribbean Sea, Moroskyjo Bay has several exclusive shipping ports for exporting petroleum, making it the base for the most export of resources in Colombia. Annual exports of 36.9 million tons (2013) are taking place.

       

                                             

       


       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      出所:JETRO

       

       

       

      ■ Railway


      Although it is said that a railroad of about 3,000 km is laid in Colombia, since maintenance and equipment renewal has not been done in many sections, the current operation is about 900 minutes in about 1/3/1 . Some passenger transport is also done, but most are used for cargo shipping.


      The main route connects coal mines situated in the inland and shipping ports, such as the Chilliguana - Santa Malta line, Celephone - Puerto Bolivar line, of which 76.68 million tons of rail freight cargoes (2013) It is coal, which is more than 99%. The operation is the National Railways of Colombia and Privatization.


      The Colombian government plans to restore existing routes by investing US $ 500 million, plans to launch a new line by investing 2.6 billion US dollars, and scheduled to be operated by approximately 1,400 km by 2021 is.

       


      【Railway development plan (~ 2021)】

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      出所:経済産業省

       

       

      ■Airport


      The number of passengers in Colombia has continued to increase with the improvement of security and economic growth since entering the 21st century and has tripled in the decade since 2004.


      In Colombia where there are more than 50 large and small airports scattered around the country and the steep Andean divides the country which is about three times the size of Japan, the situation of undeveloped roads and railway infrastructure between urban areas is supplemented .


      The international airport is located in major inland cities such as El Dorado International Airport in the capital Bogoda, Jose Maria Cordoba International Airport in the outskirts of the second city Medellín, Alphonso Bonilla Aragon International Airport in the third city of Cali , Cartagena and Barranquilla along the Caribbean coast, Cucuta in the center of the Venezuelan border, São Andre Island in the Caribbean resort, and so on. Among them, El Dorado International Airport in Bogota is the entrance to Colombia's sky, where the largest number of passengers on both domestic and international flights and air cargo are spared.


       


       


      【Changes in Passengers Number of Passengers in Colombia】 (Unit: Thousand)

       

      2004

      2005

      2006

      2007

      2008

      2009

      2010

      2011

      2012

      2013

      2014

      Passenger number

      8,829

      9,984

      10,616

      11,631

      12,339

      12,115

      16,932

      18,769

      22,012

      25,993

      25,053

      Source: World Bank

       

       

      Power


      Looking at the supply-demand balance of electric power, consumption has increased by 1.5 times in the past 10 years with economic growth, but privatization, separation of power generation, power transmission and retailing has been carried out from early on, The amount also increased 1.3 times. Since the amount of electricity generated is always higher than the consumption amount on an annual average, the supply-demand balance seems to be stable in general.


      Since Colombia is blessed with water resources, hydroelectric power generation accounts for 79% (2013) of the power supply composition. Because of the high development potential of domestic hydroelectric power supply and the fact that it is sustainable energy with low greenhouse effect, hydroelectric power generation is considered to be an important power source. However, there is a disadvantage that hydroelectric power is greatly influenced by precipitation. In the most recent years there was a sharp decline in hydroelectric power generation due to the drought caused by the El Niño phenomenon in 1991 to 1992, 1997 to 1998, 2009 to 2010, the hydro power ratio fell below 50%, and planned blackouts also occurred Occurred. For this reason, while focusing on hydroelectric power generation, more importance was placed on stable supply of electric power due to diversification of power supply, expansion of power plants by coal and natural gas decided, the geothermal power generation project also started.


      In addition, the fact that the electricity charge is expensive compared to neighboring countries is also a subject. Electricity charge per 1 kWh (for business use) is Santiago (Chile) 0.09 US dollars, Lima (Peru) 0.11 US dollars, but it is high as US $ 0.19 for Bogota and US $ 0.15 for Medellin, It is required.

       

       

      【Power composition of Colombia (2013)】 (Unit:%)

      Power supply

        Percentage (%

      Hydraulic power

      79

      gas

      13

      coal

      4

      Bio · waste

      3

      Other

      1

      total

      100

      Source: METI

       

      【Trend of Electricity Supply and Demand】 (Unit: TWh)

       

      2001

      2002

      2003

      2004

      2005

      2006

      2007

      2008

      2009

      2010

      2011

      2012

      Electric-generating capacity

      42.5

      44.1

      45.6

      48.8

      49.3

      52.7

      54.2

      55.0

      55.8

      55.4

      59.2

      57.8

      Consumption

      33.9

      34.7

      35.4

      37.4

      37.8

      40.5

      42.2

      42.8

      46.4

      45.5

      50.3

      49.4

      Source: EIA: U. S. Energy Information Administration

       

       

      Communication


      As is often seen in emerging markets, the spread of fixed telephones has reached a plateau in Colombia, and mobile phones are rapidly spreading. In 2000, it is only 5.7%, but it will exceed 100% in 2012 and 113.1% in 2014. In addition to state-owned EPN, Mobister, Columbia, Avantel, Claro under umbrella of America · Mobile (Mexico), Tigo · Columbia under the affiliation of Millicom International · Cellular (Luxembourg), DirecTV You are in a race condition you did. Also, smartphones are rapidly spreading, and it is about one third of subscribers (2013).


      The Internet has also spread rapidly, and the penetration rate has exceeded 50% in 2013. However, there are possibilities in the future, such as large difference by region, the penetration rate of broadband is still less than 10%.


      In the television broadcasting, national RTVC (3 channels), private coloration television and RCN television broadcast nationwide, there are multiple stations that are broadcasting locally.

       

       

      【Trends in Number of Mobile Phone Registration and Diffusion Rate】 (Unit: thousand%)

       

      2000

      2001

      2002

      2003

      2004

      2005

      2006

      2007

      2008

      2009

      2010

      2011

      2012

      2013

      2014

      Mobile phone subscription

      2,257

      3,265

      4,597

      6,186

      10,401

      21,850

      29,763

      33,941

      41,365

      42,160

      44,478

      46,200

      49,066

      50,295

      55,330

      Mobile phone penetration rate

      5.7

      8.1

      11.2

      14.8

      24.5

      50.6

      67.9

      76.3

      91.6

      92.0

      95.8

      98.1

      102.9

      104.1

      113.1

      Source: ITU (International Telecommunication Union)

       

      【Trends in Internet penetration number and penetration rate】 (Unit:%)

       

      2000

      2001

      2002

      2003

      2004

      2005

      2006

      2007

      2008

      2009

      2010

      2011

      2012

      2013

      2014

      Internet penetration rate

      2.2

      2.9

      4.6

      7.4

      9.1

      11.0

      15.3

      21.8

      25.6

      30.0

      36.5

      40.4

      49.0

      51.7

      52.6

       

      Source: ITU (International Telecommunication Union)

       

       

    • Regulations and incentives

        Colombia has been promoting the liberalization of foreign investment from early on, and investor protection and investment freedom is one of the most advanced countries in Latin America. There is little regulation on foreign investment, there are few differences between incentives on investment and foreign capital. Although the preferential treatment system is somewhat complicated across laws related to trade and taxation, a series of rules are set in total.

       

      ■ Protection of investors


      Foreign investment is regulated by "New Foreign Exchange Law - Law No. 9" (1991), "Cabinet Order 2080 on International Investment General Rules" (2000), "Reform Regulation Decree 4800" (2010) Principle investor protection is done. In addition, according to "Legal stability ensuring law No. 963" (2005), new investment above a certain standard is also protected from legal system change risk.

      Three principles of foreign investment

      Grant equivalent treatment of foreign capital and internal funds

      Automatic approval of registration of foreign capital

      Guarantee freedom of external remittance of capital · profit

      (Limited to circumstances in which foreign exchange reserves are not equal to or less than the three-month equivalent amount of imports)

       

       

      ■ Regulation


       


      Investment-prohibited industries are extremely few, and investment regulated industries are very limited.

      [Prohibited industries]

      Prohibited industries

      Fields related to defense, security and security

      Disposal of waste disposal of harmful substances and radioactive materials produced abroad

       

       

      [Regulated industry]

       

      環境住宅地方開発省

      Investment area

      Supervisory and approval agencies

      Reliance law

      Remarks

      Financial institution

      Insurance department

      Financial Supervisory Authority

      "Basic Law on Financial System"

      Cabinet Order No. 663 (1993)

      Cabinet Order No. 2080 Article 18 (2000)

      Prior approval is required in case of ① ~ ③

      ① Acquired over 10% of the issued shares / assets of institutions / companies supervised by the Financial Supervisory Authority.

      ② Acquire at least 5% of outstanding shares / convertible bonds.

      ③ Acquire over 5% of voting stock with investment through foreign investment fund.

       

      Hydrocarbon sector

      Mining

      Ministry of Mining and Energy

      Cabinet Order No. 2080 20-25 (2000)

      ※ Coal mines · mining rights are granted by contract with the government.

       

      Securities investment

      Financial Supervisory Authority

       

      Cabinet Order No. 2080 26-40 (2000)

      * Prior approval is required when investing in securities through foreign investment funds.

      Television broadcasting

      National Television Committee

      (Comisión Nacional de Televisión)

      Law No. 640 (2001)

      ※ The foreign capital ratio is up to 40%.

      * Provided that investment countries are guaranteed equivalent investment opportunities for Colombian companies.

      * It is necessary to review the technology transfer by the National Television Committee.

      Environment related

      Ministry of Environment Residential Regional Development

      City Environment Office

      Local Autonomy Corporation (CAR)

      etc

      Law No. 99, Article 8 (1993)

      Law 491 (1999)

       

      Projects that have a serious impact on the environment and that may significantly alter the landscape require regulatory approval (environmental licensing).

       

       

       

       Investment preferential treatment

       

      In Colombia, free trade zone (ZF: Zona Franca), export special economic zone (ZEEE: Zonas Especiales Economicas de Exportacion), etc. are established in order to promote foreign investment and expand trade. You can also benefit from using bilateral and multilateral free trade agreements with many countries / regions.

      In addition, not only domestic foreign capital but also a limited amount of income tax, value added tax (IVA), duty reduction measures are taken in several training fields. (Crops with a long period from planting to harvesting of cacao, citrus, rubber, palm palm, etc.), river transport (ferry), electricity (sales of electricity by renewable energy), publication (cultural and scientific fields), sightseeing (Newly added / expanded hotel), forestry (new afforestation, establishment of sawmills), ecotourism, real estate and so on.

       

      [Free Trade Zone (ZF: Zona Franca)]


      ZF has been established in major cities such as Bogota, Medellín, Cali, Cartagena, Santa Marta, Barranquilla and near the port. In 2007, related laws and regulations were compiled in the new law (Cabinet Order No. 383), and the permanent ZF (ZFP: Zona Franca Permanente), Special ZF (ZFP: E Zona Franca Permanente Especial), Temporary ZF (ZFT: Zona Franca Transitoria) It is now integrated and classified.

      At that time, the ZFP which is expected to have high economic effect newly established after 2007 has been approved as ZF (Zona Franca Unipersonal) as a single corporation. Unlike traditional geographically restricted ZF, if a single company applies for ZFU application and is approved, it can receive preferential treatment as ZF anywhere in Colombia. Therefore, new approvals are on the rise, and about 100 ZFs including ZFU have been approved.

       

      【Main ZF distribution】

      Main ZF

      Location area

      place

      Cartagena ZF

      Caribbean coastal area

      Cartagena

      La Candelaria ZF

      Caribbean coastal area

      Cartagena

      Parque Central ZF

      Caribbean coastal area

      Cartagena

      Santa Marta ZF

      Caribbean coastal area

      Santa Marta

      Barranquilla ZF

      Caribbean coastal area

      Barranquilla

      Bogota ZF

      Andean Region

      Bogota

      Rionegro ZF

      Andean Region

      Medellin

      Pacifico ZF

      Andean Region

      Cali

      Palmaseka ZF

      Andean Region

      Cali

      Eha Cafe Terror

      Andean coffee production area

      Caldas Province, Quindio Province, Lisararda County

       

      The main preferential treatment in the permanent free trade zone (ZFP) and single corporate free trade zone (ZFU) are as follows.

       

      [Main preferential treatment measures]

      Major preferential items

      Remarks

      Income tax, fair tax· 

      · Companies ZF certified before December 2012 are 15% (income tax 15% + fair tax exemption)

      · 23% of enterprises ZF certified after December 2012 (15% income tax + 8% fair tax)

      ※ Usually 33% (25% income tax + 8% fair tax)

      Value added tax (IVA), customs duty

      · Goods brought from overseas to ZF are IVA and customs duty free.

      · Goods brought from Colombia to ZF are IVA exempted.

      Domestic sales of products produced at ZF

      · Customs duties, IVA can be paid domestic products.

      · It is possible to pay customs duties on the import of raw materials and make them into domestic products.

      Construction equipment, machinery

      · Construction machinery and machinery for ZF manufacturing plants are tax free.

      Foreign currency holding and remittance

      · Have the right to hold foreign currency in the checking account of domestic and foreign financial institutions and trade in foreign currency.

      · ZF user's overseas remittance tax exempted.

       

       

      [Export Economic Zone (ZEEE: Zonas Especiales Economicas de Exportacion)]


       

      The export special economic zone is a system established in 2001 to promote export-oriented investment, to realize employment creation, technology transfer, regional development, etc. Currently located in the Pacific coastal port city Buena Ventura, near the Venezuelan border Cucuta and Valle du Pearl, the Ecuadorian border town Ipearez and Tumaco City are designated as ZEEE It is.

       

       

      It is stipulated by the "Export Economic Special Zone Law" (Law No. 677) and Cabinet Order No. 1227 (2002), Cabinet Order No. 045 (2003), No. 2484 (2003) Advance contract (period: 5 to 20 years) is required.

       

       

       

      [Conditions and preferential treatment for applying ZEEE]

      Applicable condition

      Preferential treatment

      New investment

      Exemption from import duties

      Investment amount lower limit 2 million US dollars

      (Initial investment is US $ 1 million)

      VAT exemption

      80% or more of products and services exported

      Elastic application of labor contract

       

       

       

       

       

       

      【Distribution of ZEEE】