Reasons to invest in Chile
A healthy business environment
Chile possesses a healthy business environment, which is the result of a policy-driven strategy. This is anchored in strong institutions and solid macroeconomic fundamentals that include sustained growth, low inflation, balanced fiscal accounts, and a low level of public debt. Public policies also promote competition and international integration and seek to increase social cohesion, via the aim to benefit all the country’s citizens from economic development.
An internationally open economy
Chile’s open economy, under the open regionalism foreign policy, combined with its bilateral, regional and multilateral trade agreements, has meant a steady increase in foreign trade and in the country’s international competitiveness. Thanks to these trade agreements, companies in Chile have privileged access to a market of almost 1.2 billion consumers and, between 1996 and 2003, exports expanded at an average annual rate of 6.5%, while imports rose at an average 5.1%.
A successful record of foreign direct investments
Foreign investment has played a key role in driving Chile’s growth. Overseas companies have not only bought into privatised companies and invested in Chile’s Public Works Concessions Program, but have also undertaken new projects in mining, manufacturing, service industries and non-traditional export sectors. More recently, they are also using Chile as a regional business centre from which to export goods, or provide services, to other countries.
Competitive business costs
Chile offers foreign investors some of the world’s most competitive business costs. Privatisation and deregulation have created sophisticated public utility and telecommunications industries, while real estate investment has produced a plentiful supply of modern offices at very competitive costs. Moreover, corporate taxes and labour costs are moderately low, while Chile’s tradition of transparency and its high level of personal safety also help to contain hidden costs.
A skilled workforce
Chile’s sustained economic growth has gone a long way to improve social conditions. In addition, since the return of democracy in 1990, the government has implemented active social investment policies, including a major reform of state education. A National Census illustrated its success in this field in 2002, which revealed rapid advances in almost all fields and, particularly, in educational and training standards.
A high telecommunications and information technologies convergence
Regarding telecommunications and IT infrastructure, Chile is widely recognized as an advanced country, offering an excellent service level. E-Readiness Ranking 2004, the Economist Intelligence Unit, underlined Chile’s status in this field, placing the country in the 29 th position out of 64 countries in the worlds’ ranking.
A globally connected country
As well as high-standard telecommunications infrastructure, Chile has strong “real” connections with the planet. Efficient communications and transport services -one of the cornerstones of the country’s export-driven development strategy- effectively bridge the geographic distance between Chile and the main world business centres. In addition, Santiago offers Latin America’s most frequent air connections and the wider coverage with other capitals in the region.
Quality of life – Chile’s business bonus
For expatriate staff, Chile and its capital Santiago offer a cosmopolitan quality of life that is regarded as among the highest in Latin America. A report by the AméricaEconomía business magazine, released in April 2004, identified Santiago as the best city from which to do business around the region, highlighting, among other advantages-, its high level of personal safety and excellent communications.
Targeting Latin America and the world from Chile
Many foreign investors, drawn by Chile’s stability and its attractive business environment, are increasingly using it as a base from which to develop markets in -and export to- other countries in Latin America, as well as other regions. In addition, many companies have selected Chile as the location for call centres, software development facilities, front and back-office and shared services centres, and for regional headquarters.
Foreign investor’s views
Please see foreign investor’s views at www.cinver.cl , look for Foreign Investor’s Views
Shell (UK): “Chile’s rules-based policies are key for foreign investors”
General Motors (US): Using Chile as an export platform
Motorola (US): “Chile has one of the world’s most advanced telecommunications industries”
BBVA (Spain): “We like Chile’s combination of growth potential and low risk”
Santista Textil (Brazil): “Our investment in Chile has been a great economic and financial success”
Citigroup (US): Tapping into Chile’s competitive advantages
Grupo ACS (Spain): “Chile’s reliability enables us to finance infrastructure projects there”
Casa Lapostolle (France): “Chile has some of the world’s best wine-producing land”
Marine Harvest (Netherlands): “Chile is the country in which Marine Harvest has grown most”
Grupo Agbar (Spain): “I feel very much at home in Chile”
3M (US): “Chile is one of our company’s star subsidiaries”
Burson-Masteller (US): “We’re already seeing an impact from the Chile-US FTA”
Praxair (US): “The Chile-US FTA means new growth prospects for our customers”
NIKE (US): “We’re helping to change Chilean life styles”
IBM (US): “Our new platform is a gesture of confidence in Chile and its investment climate”
Goodyear (US): “At our plant in Chile, we achieve world-class productivity and better”
Kodak (US): “We’re exporting technology and a business model that we developed here in Chile”
Nestlé (Switzerland): “Chile’s competitiveness is reflected in Nestlé”
Beiersdorf (Germany): “Chile is South America’s most competitive country on price, services and quality”
Unilever (Great Britain – Holland): “Chile has emerged as a very competitive regional business platform”
Methanex (Canada): “As well as having good skilled labour, Chile is ethically a very reasonable place”
BHP Billiton (Australia): “We find the Chilean Government accessible and supportive”
Ericsson (Sweden): “In Chile, firms dare to invest in the future”
ABN-Amro (The Netherlands): “The Chilean banking industry is highly efficient”
Chilean-American Chamber of Commerce: “Chile: a unique business environment”
Confederation of British Industry: “Chile and the UK, a close business partnership” VERAMONTE Vineyard (US): “Chile is a unique place to produce top-quality wine”
Guts (US): “Cran Chile is the largest cranberry producer outside North America”
Mitsubishi Chile (Japan): “Mitsubishi is extremely interested in using Chile as an investment platform”
Hoyts Cinemas (Australia): “We’ve changed Chile’s cinema-going habits”