Investor Presentaiton
14 How to INVEST in São Paulo
STATES 15
Largest exporter of beef in Brazil (approximately
USD 2 billion per year);
Sugarcane ethanol is produced sustainably,
regarding social, economic and environmental
aspects and it currently represents the best and
most advanced existing option for the large-scale
production of biofuels;
• The use of biomass has been the focus of the
development of new technologies.
Industry
São Paulo State concentrates approximately 37% of
the Industrial Transformation Value (VTI) in Brazil. The
high technological complexity of the industrial
productive structure in São Paulo is reinforced by the
significant presence of innovative companies and the
concentration of knowledge-intensive and
information-intensive services, which ultimately add
high qualification to the development of new
products, processes and research and development
activities.
Major Sectors:
Automotive vehicle manufacturing;
Chemical products;
• Food;
• Machines and equipment;
Metal products;
⚫ Petroleum and biofuel by-products;
⚫Pharma chemicals and pharmaceutical products;
Rubber and plastic;
Trucks and truck bodies.
In addition, São Paulo is the largest exporter in the
aerospace industry in Brazil.
International Trade
São Paulo State exported approximately USD 52
billion in 2010, accounting for 26% of Brazilian
exports. Approximately 38% of this value was
generated by 15 products, among which the most
important are sugar (derived from sugar cane and
sucrose), airplanes, automobiles, ethanol, boneless
beef, orange juice and mobile devices. Industrialized
goods accounted for 89% of exports.
Main Destinations of Exports from São Paulo (%)
United States
10%
Others
26%
Asia
12%
Mercosur
19%
Aladi
16%
European
Union
17%
Regarding imports, São Paulo accounted for 39% of
Brazilian external purchases of industrialized
products. With regard to basic products, the
participation of São Paulo corresponded to
approximately 24% of the total imported by the
country. The United States, São Paulo State's major
supplier, represented 19% of imports, followed by
China (13%) and Germany (10%).
Main Origins of Imports in the São Paulo
Africa
Mercosur
5%
Others
12%
5%
United States
19%
European Union
28%
Ministry of Development, Industry and Foreign Trade, 2010.
Asia
31%
In 2010, the state's volume of international trade grew
by approximately 23% in exports and 34% in imports,
compared to the previous year, which confirms the
recovery of external sales and the strength of the
State's economy after the global crisis of 2008.
Investments in São Paulo State
According to Fundação Seade (São Paulo Satate's
statistical agency), USD 50.8 billion in public and
private investments were announced in 2010,
approximately 79% higher than the amount verified in
the same period in 2009 (USD 27.9 billion). These
investments were made mainly by companies in the
automotive, beverage, telephone and sanitation
sectors.
FOREIGN DIRECT INVESTMENT
In the past 10 years, Brazil has received approximately
USD 255 billion of foreign investments in the
economy's productive sector. In 2010, USD 48 billion
were received and the Central Bank estimates USD 55
billion for 2011. In the first half of 2011 alone, this type
of investment reached USD 32.5 billion, the greatest
value recorded since 1947, when this figure started
being measured by the Central Bank.
Over the last few years, São Paulo State has received a
substantial amount of this foreign direct investment
flow, mainly in the telecommunications, energy,
infrastructure, services, agribusiness and automotive
sectors. These investments come from a wide variety of
countries, with the United States and China standing
out.
STATE INVESTMENT
Between 2011 and 2014, USD 39.4 billion from the
State treasury is forecast for the following projects: rail
passenger transport (USD 22.5 billion); road transport
(USD 16 billion); ports (USD 406 million) and airports
(USD 277 million). All these projects represent
excellent opportunities for potential foreign and
domestic investors through concessions or public-
private partnerships (PPPs).
• Machines, devices and electric materials;
Ministry of Development, Industry and Foreign Trade, 2010.View entire presentation