Relocation opportunities in the manufacturing sector
The Government’s strategy to make Colombia more attractive based on its economic reactivation plan ´Compromiso por Colombia´ is ready. According to the Minister of Trade, Industry, and Tourism, José Manuel Restrepo, the goal is reach US $11.5 billion in direct foreign investment by 2022.
In this way, the Government is betting on having more facilitation tools, creating regional and sectoral drivers, regulating the tax and non-tax incentives created in the last reform, and advancing with an investment relocation plan.
This, in addition to the tension between the United States and China, could become an opportunity for Colombia.
Taking all of this into account, advances have been made with a relocation strategy for companies interested in investing in Colombia. This process will give the country competitive advantages in several economic sectors, the manufacturing industry, footwear materials, textiles, clothing, and the automotive industry, amongst others.
ProColombia has identified North American, European, and Latin American companies, which are interested in potential relocation processes in Colombia. It is worth noting that several North American companies with production in Asia have started exploring closer and more efficient supplier options, which, additionally, reinforces regional value chains.
Colombia is very attractive to investors, given its growing consumption and the quality of its urban workforce, which is specially adapted to different sectors and has a high number of graduates who hold technical degrees.
It is also important to note that the Colombian government maintains its commitment to increasing the reliability and diversification of supply chains through infrastructure and is seeking to liberalize extractive industries to attract investment.
Other areas in which the country excels at the regional level are the reliable utility sector that produces few disruptions to business operations, a relatively high inclusion of women in the workforce compared to neighboring countries, and national security, which has improved significantly over the last ten years.
Finally, Colombia has well-developed ports that allow solid connections with maritime trade routes, reducing transport times and making the import and export of products much more competitive.