The reasoning behind foreign investment being so high in Colombia is due to many reasons. In addition to its economic stability and GPD growth remaining constant for the past 70 years, Colombia is also the perfect place to do business. It is perfectly situated, has the most qualified labor force available in the region and labor regulations are the least restrictive to business activities (according to studies performed by non for profit business school IMD in Switzerland.) Colombia also has the best management in the South American region (according to studies performed by Pricewaterhousecoopers) and attracts an abundance of foreign investment due to its extremely low labor costs, yet multitalented work force.
Geographically, Colombia is also located very well and this is another advantage in terms of attracting foreign investment, not only is the weather great year round, it is also located at a very close proximity to the United States, Canada and Brazil, the biggest economies in the western hemisphere. Colombia is situated in a way that allows it to possess seaports on both the Atlantic and Pacific coasts, reducing shipping costs by an average of one third over other South American competitors. Colombia has a Free Trade Agreements (FTA) and an International Investment Agreements (IIA) with 48 countries, in addition to a Double Taxation Agreement (DTA) with 22 countries further enhancing the ability to participate in the worldwide business market with increased ease and profitability. Since 2010, having such agreements with these organizations has created preferred access to over 1.5 billion additional customers.
Colombia sets itself apart from other neighboring South American countries in respect to foreign investment. In Colombia, foreign investment in looked upon as favorable and not much resistance is demonstrated. Colombia is greatly a resource based economy and in turn, the Colombian government welcomes investment from foreign countries. Colombia’s economy is in a rising stage and has grown a tremendous fourteenfold since 2001, with no signs of slowing down. Due to increased trade with countries such as The United States and Brazil, direct investment and capital inflows has more than doubled.
Colombia is also a leader in attracting foreign investment as according to the, “Invest in Colombia Website” provides world class Incentives for investors. These incentives include, “The Doing Business Report” ranking Colombia as the third most business friendly country in Latin America and the first country in the region that best protects investors. Some of the incentives to lure investment into Colombia are brought forth by the government and these include free trade zones, legal stability contracts and huge tax breaks including financial transactions and technological developments. Colombia was also the best performer in the region in 2009.
We also highly recommend to visit and read the information from Colombia’s Official Investment Portal.