Foreign direct investment

Companies that set up in the state of São Paulo are in the largest consumer market in Latin America, with plenty of qualified labor, international class infrastructure, a diversified supply chain and advanced environmental legislation. These ingredients, allied with multicultural receptivity, give the state an excellent competitive edge. São Paulo city has the most offices of large multinationals in the world, after New York.

Over the past ten years, Brazil has received around US$ 365 billion in foreign investment in the production sector of the economy. In 2012, the figure was US$ 65 billion. The most attractive segments were sanitation and transport infrastructure; the automotive industry, the air industry and other transport materials; telecommunications, electricity generation and distribution; financial intermediation; sugar and ethanol production; and real estate.

The capital city São Paulo comes fourth in the KPMG consultancy’s ranking of the world metropolises receiving most foreign investment in 2011 – behind only London, Shanghai and Hong Kong. According to The Economist Intelligence Unit, São Paulo is the Brazilian state best prepared to receive the intense flow of foreign investments foreseen over the coming years from the 2014 FIFA World Cup and the 2016 Olympic Games.

The growing incorporation of population segments enjoying significant increases in income in recent years means that the São Paulo consumer market is open to a range of related business opportunities, ranging from civil construction and real estate to personal service provision and industries launching products aimed at this market.

To meet this requirement for foreign investment, São Paulo’s Agency for the Promotion of Investments and Competitiveness (Invest SP) was created in 2008. The agency is an entry point for companies intending to set up in the state and encourages the expansion of existing developments in São Paulo.

A specialized team, Invest SP offers free strategic information to help investors find the best locations for their businesses, and facilitates company contacts with public and private bodies. The agency also proposes policies that contribute to attracting new national and international investments to the state of São Paulo with the objective of making São Paulo’s economy more competitive, reducing regional inequalities and creating jobs and income for the population, as well as encouraging technological innovation.

Another important aspect of Invest SP’s work is to help São Paulo municipal districts meet the requirements of investors and of business environment development, as well as establishing exchanges with counterpart bodies and financial agents.

More info: 
Invest São Paulo (link)
São Paulo: the Number 1 State of Brazil (video)