Brazilian Foreign Trade Secretariat releases bulletin of foreign investment in Brazil
Atualizado: 11 de Set de 2019
By the end of this first quarter of 2019, the Brazilian Foreign Trade Executive Secretariat (CAMEX) launched the Foreign Investment Bulletin, outlining the trend of FDI (Foreign Direct Investment) from China, the United States, Japan, France and Italy, countries with which the Secretariat has Memoranda of Understanding and Cooperation.
According to the Bulletin's analysis, at the end of the last decade, the most significant figures came from the US, which invested US$ 58 billion from 2003 to the first quarter of 2019, but since 2010 there has been a clear predominance of Chinese resources, which invested US$ 71 billion in the same period. There was also a significant participation of Japanese investments in this period, but the main highlight in 2018 and the first quarter of 2019 is the participation of Italian investments.
Of the investments made by the five countries, there was a clear concentration in the Southeast and South regions, with a predominant concentration on the State of São Paulo, followed by Rio de Janeiro and Minas Gerais, and the preponderance of brownfield projects (enlargement or reformulation of existing projects ), which were mostly made through mergers and acquisitions, reflecting the entry of foreign investors as controllers of large Brazilian companies and the low pace of expansion of production capacity.
Analysed separately, since 2016 China has been concentrating its investments in projects in the electricity field (generation and transmission); while the US, since 2013, has been concentrating its efforts on telecommunications projects; France opts to invest in various projects, such as trade, telecommunications, real estate and industry; Italy, for its turn, has had the highest rate of investment in electricity in this group of countries since last year; and Japan, since 2011, has had a greater concentration of its investments in the industrial sector, associated in some years (2013, 2016, 2017) with investments in the services field.