The Challenges of FDI in Chile: An Optimistic View
Managing Director of InvestChile
We are undoubtedly living in challenging times. The crisis generated by the pandemic, with its devastating social and economic consequences, has pushed us to reinvent ourselves. It has also spurred us to make the effort to look beyond the crisis.
That is exactly what foreign companies established in our country are doing. The Chile Foreign Direct Investor Confidence Index, released last month by a group of bi-national Chambers of Commerce along with the Studies Center in Economics and Business at Universidad del Desarrollo, showed that investors see a clear improvement in the general conditions of the country and are now feeling "slightly optimistic", while back in September 2020, they felt "neutral". Beyond this ‘snapshot of the moment’ – measured based on the opinions of 188 companies that represent 55% of Chile's FDI –perceptions were especially positive when they were asked how they saw our country over the next three years.
And, on the subject of reinvention, we as an agency have also been making changes. Firstly, we have a new, aggressive commercial strategy, which includes a plan for attracting new investment focused on some of the world’s foremost companies -flagships-, digital marketing, support for reinvestment and organizing more than 35 activities during the first half of the year. Furthermore, we are also deepening our efforts in the Middle East, a highly attractive and hitherto largely unexplored market and exploring India’s business ecosystem.
The potential is enormous. The investment funds of countries like Saudi Arabia, Qatar, Dubai and Kuwait, which together manage assets worth more than US$2 trillion, have already been showing great interest and are exploring the opportunities that Chile offers.
Of course, these challenging times present obstacles. But they also offer opportunities: the opportunity to reinvent ourselves; the opportunity to think outside the box and discover new ways of doing things; and the opportunity to look ahead with ever greater optimism.
I invite you to discover these opportunities in our new series of InvestChile Insights ebooks, where you will find key information on some of the most dynamic sectors of the Chilean economy. Let’s keep working together and let’s keep pushing Chile beyond our frontiers.
FDI CONFIDENCE INDEX
OPTIMISM RISES: The Chile FDI Confidence Index shows a clear improvement, with investor perceptions advancing from “neutral” in September 2020 to “slightly optimistic”. This study draws on opinions from 188 companies from different industries and countries of origin, which together represent 55% of the foreign direct investment in Chile. Read more
INVESTCHILE LEGAL REPORT: Read all about the latest laws published in Chile this month, the bills currently being processed in Congress, the decrees and regulations issued by the government and autonomous agencies, as well as important jurisprudence on matters that may impact foreign investment in Chile. Download here.
INCENTIVES TO FOREIGN INVESTMENT
GREEN HYDROGEN: With the potential to create the cheapest green hydrogen on the planet, Chile has launched a US$50 million financing round to leverage projects among both domestic and foreign companies. These are the ten points that you need to know if your company wants to apply for these grants.
FOREIGN COMPANIES IN CHILE
TECH IN MINING: Anglo American Chile has inaugurated in Santiago its first Integrated Remote Operation Centre in the world, which uses artificial intelligence, augmented reality and remote operation technology to conduct work at Los Bronces copper mine in real-time.
MUST READS FROM APRIL
DIGITAL HUB. The 10 milestones of Google’s first decade in Chile. The company not only has multiplied its services but it has also invested in critical infrastructure for Latin America's digital transformation.
SUCCESS STORY. Peruvian retailer aims to open 16 SuperZoo stores in Chile. The potential for growth shown by their pet shop chain in Peru led Grupo Mulder to expand abroad and today, besides Chile, they have 300 stores in Spain and France.
GREEN HYDROGEN. France and Chile join forces to make progress. The two countries are developing a program of actions to exchange knowledge and promote strategies in this field.
START-UP INNOVATION. Firm uses clean energy to produce water from the air. Chilean company Lader Energy has just inaugurated the first plant in the country, which will produce 10,000 liters of water per month using the AWA Solar system.
CLIMATE BONDS. Chile awarded the Largest Emerging Market Certified Climate Bond. The Ministry of Finance is firmly committed to climate action and has pioneered the issuance of sovereign green bonds in the Americas since 2019.