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Minas Gerais English Briefing PDF

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    AN ENTERPRISING INVESTMENTAN ENTERPRISING INVESTMENT

    PROMOTION AGENCYPROMOTION AGENCY

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    MINASINVEST is an alliance of individuals andcorporations committed to the sustainable growth ofMinas Gerais State, capitalizing on the extraordinaryinnovative capacities of its public- and private-corporate

    and academic organizations, forming a powerful alliance .

    MINAS INVEST leverages t he individual init iat ives into alarger, targeted program that aggressively promotes thest at es business development .

    MINASINVEST creat es an ef fect ive economic developmentmarket ing inst rument and accelerat es t he at t ract ion of

    quali t y invest ment ori ent ed t o the sust ained development .

    By identifying and attracting international companiesin strategic industry sectors, MINASINVEST increases the

    number of quality opportunities available and drivesthe overall success of Minas Gerais businessdevelopment strategies.

    ALL

    IANCE

    OFEFFORT

    S

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    MINAS GERAIS STATE :MINAS GERAIS STATE :

    THE IDEAL PLACE FOR YOUR INVESTMENTS IN BRAZILTHE IDEAL PLACE FOR YOUR INVESTMENTS IN BRAZIL

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    BRAZIL is definitely one of the most important emerging economies

    in the world, with a population of 175 million people.

    Brazilian GDP amounts to nearly 50 pct of the GDP of whole Latin

    America. Modern industrial park.

    Exceptional conditions for investments: 80% of the top 500

    corporations operate in Brazil.

    Inflation under control.

    Rapid and steady economic transformation

    Fully open to international investments with legal protections.

    Competitive business culture.

    Natural resources

    Stable democracy Tax reform attracting new investments.

    Steady growth over the last couple of years with continuous growth

    forecasted

    Leading world food producer and exporter

    BRAZIL:AS

    TEADILYRISING

    ECONO

    MY

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    THE IDEAL PLACE FOR YOUR INVESTMENTS IN BRAZIL

    Strategically located in the Southeast region of Brazil, whereconcentrates 78% of Brazilian consuming market is concentrated.

    18 million people. Territory greater than many European countries. Third largest South American economy. Excellent infra-structure Abundant energy and modern communication. Half of its budget is invested in education and health. Modern law recently approved law on Public-private partnerships,

    respecting obligations with investors and partners. Expedient and practical action from Public Administration Strong competitiveness for new enterprises Highly qualified labor

    MINAS GERAIS St ate st ands at a vibrant moment in i t s development ,int roducing ent repeneur ial changes, innovat ion, paradigm shi f t s, andopenness for considerat ion of new alt ernat ives and invest ment s.

    THE

    MINAS

    GERA

    ISSTATE

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    While the State of Minas Gerais assumes the role of promoter and clearinghouse

    for investments, it is aligned with the basic concepts of this new entrepreneurialculture, which involve:

    overcoming bureaucratic bottlenecks that inhibit the adoption of performance-

    based models of administration.

    breaking with inefficient management practices.decentralizing and opening spaces for the involvement of the private sector in the

    process of development.

    managing fiscal crises, economic externalities, and imperfect contracts in the

    credit markets;

    overcoming the lack of clear regulatory function and market credibility;

    Long-term planning: research and development programs that present an

    investment portfolio for attracting private sector interest;

    Coordination among diverse state development institutions: cutting waste,

    redundancies, and loss of efficiency.

    Minas Gerais presents Brazil with a new management model. Wehave left behind that motto that Public services are inefficient bynature. We are bringing private sector management methods , with

    performance evaluation and the establishment of goals to beachieved. ( Governador Aecio Neves)EN

    TREPRENEURIALSTATE

    CULTURE

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    BH

    SP RJ

    WITHIN A RANGE OF 800 KM OF ITSCAPITAL BELO HORIZONTE, MINAS

    GERAIS CONCENTRATES:

    48% of the Brazilian population

    58% of National GDP

    62% of retail sales in Brasil

    Source : Industrial Development Institute - INDI

    ECON

    OMICP

    OTENT

    IALS

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    TRANSPORT: Largest road network in Brazil: 265.000 km and extensive railroadnetwork: 5.080km, ensuring logistics and easy flow of products to main domestic

    markets and export through the most efficient ports in Brazil: Santos, Rio de

    Janeiro/Sepetiba and Vitoria.

    COMMUNICATION: 5 million fixed lines and 3 million mobile lines. Fiber opticlinks connect the State to the main cities. Minas is reckoned as the benchmark for the

    quality of its communications.

    EDUCATION: the high quality of Minas education has been internationallyrecognized by UNICEF: 15.945 basic education schools, largest university network.

    ENERGY: one third production of the electric power of the country.INTERNATIONAL TRADE in 2005: About 21 billion (20pct of Brazilian turn-over)INVESTMENTS: it is forecasted about USD 20.6 billion in the next couple of yearsLEGISLATION: modern and operative regarding investments, keeping up withinternational standards. Minas people and institutions are traditional in their respect

    and commitment to agreements and contracts

    INTERNATIONAL AIRPORT: The Tancredo Neves Airport is one of the most modernairports and, for its exceptional conditions, has been chosen to be the first one to set

    up the industrial park concept, creating a free trade zone for import, export and

    distribution. Companies will receive from State exceptionally favorable fiscalconditions and other incentives.ECONOMICOV

    ERVIEW

    OFM

    INAS

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    AUTO AND AUTOPARTS: The state accounts for 27% of the national production.BIOTECHNOLOGY: The State hosts around 100 national andinternational companies..FASHION: footwear (ranked as the 3rd producer in Brazil) and cosmeticsTEXTILE AND CLOTHING:

    The State comprises more than one hundredplants with outstanding reputation in this sector.CEMENT: Leading producer as a result of investments in high technologywith abundant reserves of lime available.ORNAMENTAL STONES: 160 different tradable varieties; reserves are

    among the largest in the world.ELECTRO-ELECTRONIC: Great potential: excellent labor andtechnological conditions and financing programs.LOGGING INDUSTRY AND FURNITURE PLANTS: Minas is a nationalbenchmark; 50% of eucalyptus reforestation areas in Brazil are in Minas

    representing nearly 1 million hectares.MINING: production has gone up steadily in view of dramatic worlddemand and high prices. Minas plays host to huge reserves of gold, iron,diamond, phosphate, zinc, aluminum and limestone.STEEL: 40% of overall production in Brazil (around 30 million tons),

    concentration of the largest national and multinational corporationsO

    PPORTU

    NITIES

    IN

    INDU

    STRIES

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    COFFEE: 900 thousand hectares planted area, exporting annually aboutUS$ 1 billion (about 58% of national exports).MILK: Leading producer with annual production of 6.42 billion liters.

    BEEF: 20.3 million head, the State boasts the second largest herd inthe country.CORN: 1.26 million hectares planted area.SUGAR CANE: Ranked as the fourth leading producer in Brazil, Minashas a great potential in this sector, particularly in the ethylic alcohol

    (ethanol), which is rising dramatically in demand in the world.SOY BEANS: With 900 thousand hectares planted area, Minas is thesixth largest producer and exporter in Brazil.LEATHER: concentrates approximately 22% of the tanning and leatherprocessing plants in Brazil.

    CHARCOAL: 2 million hectares of planted areas makes the State thenations largest producer.WOODPULP AND PAPER PRODUCTION: great potential in view ofextensive reforestation areas and environment concern.

    Favorable cl imat e, r ich soil and enormous wat er reserves: US$ 17 bi l l ion GDP

    JAIBA: largest i r r igat ion proj ect in Sout h Amer ica. Wit h ext ensiveinf rast ruct ure invest ment s, JAIBA, si t uat ed in the Nort h of t he St at e, represent st remendous oppor t uni t ies in t ropical f rui t plantat ion and agro-indust ry.

    O

    PPORTU

    NITIES

    IN

    AGR

    OBUSINESS

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    HISTORY: 18th century cities offer historical, cultural, religious andgastronomic attraction.Among them, Ouro Preto, Diamantina and

    Congonhas have been listed by UNESCO as Heritage of Humanity.

    ECOLOGY: splendid mountains, hills, caves, rivers, brooks lie out inover 200 thousand hectares, besides 656 thousand hectares of

    preserved sites, including archaeological sites and cave paintings.

    ROYAL ROUTE PROJECT: an audacious project of the State restoringand investing in 162 cities/counties along the historic road of thecolonial times.

    Great opportunities for companies in more than 50 different sectors,including industry, services and agri-business.The project will attract investments in infrastructure, creating aroute of international interest (as Santiago de Compustela in Spain)

    along 1.460 km of outstanding beauty and history.

    TOU

    RISM:G

    REATV

    OCATIO

    N

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    Clusters offer great opportunities for new investments owing totheir natural resources and locally accumulated skills.

    INNOVATION

    PERFORMANCE

    BUSINESS

    CLIMATE

    COLLABORATION

    SPECIALIZATION

    ECONOMICCOMPOSITION

    PRODUCTIVITY

    STRATEGY

    CLUSTER

    Minas Gerais hosts 40productive sectors that findthemselves in varying

    stages of maturation andconsolidation.

    In order for t hem t o grow

    and be compet i t ive, t heef fect ive par t icipat ion oft he pr ivate sect or isneeded.

    (Minas do Sculo XXI BDMG)

    C

    LUSTER

    S:GREA

    TOPPO

    RTUNIT

    IES

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    In its efforts, MINASINVEST counts with a number of efficient State organizations, working

    together to accelerate and stabilize the implementation of your investments, such as:

    SEDE The State Secretariat of economic development: is in charge of the overall activitiesrelated to the economic development of the State.

    BDMG The Development Bank of Minas Gerais: manages state funds and financesenterprises.

    CDI- The Company of Industrial Districts of Minas: is in charge of industrial areas makingavailable full infra-structure.

    FIEMG: The Federation of industries of the State of Minas Gerais -congregates 130 industryassociation, representing 80.000 industries in Minas Gerais. It has an international

    division to assist international affairs.

    INDI Integrated Development Institute: It carries out research, elaborate investmentopportunities in the State and assists interested investors.JOO PINHEIRO FOUNDATION: renders technical services related to economic and socialdevelopment.

    CETEC Technological Center Foundation of Minas: researches projects and technologicalservices.

    EUROCENTRO/AL-INVEST: is a cooperation program between European and Latin Americancompanies and institutions.

    BRAZIL TRADE NET/SIPRI: created by the Ministry of Foreign affairs to foster Brazilianexports.

    PARTNERSHIP SEARCH DATABASE: managed by the European Commission, it is an importanttool to assist small and medium size enterprises search for partners for transnational

    cooperation.

    COMPR

    EHENS

    IVEFA

    CILITIE

    S

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    To achieve the efficacy the State Government has undertaken a

    profound revision of its structure, including the empowerment of the

    development apparatus with a greater flexibility in order to meet the new

    demands of society .

    The objective of Minas Gerais development is now to increase the

    competitiveness of its economic base, targeting the states supply chains,

    transforming comparative advantages into real and enduring competitive

    advantages.

    The new model requires the primacy of private initiative in determining

    the economys dynamic as well as an elevated degree of openness to the

    international economy.

    State development agencies in partnership with the private sector, can

    expand their activities in ways that serve the demand for investment

    with more efficiency and rapidity and democratizes the access to the

    States products and services.INTEGRATING

    MINASEFFORTS


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