Business Opportunities in Brazil

Brazil remains a hotbed of opportunity for those interesting in doing business internationally.

Brazil is the world’s 11th largest economy. Agriculture and agribusiness have played a key role in Brazil’s recent economic performance, accounting for more than a third of Brazil’s export earnings. Brazil holds a tremendous amount of opportunity for manufacturers and vendors today, as it is one of the easiest of the BRIC countries (Brazil, Russia, India and China) in which to conduct business, according to Jerry Owen, president of Intrix Americas LLC.

It’s in the same time zone, friendly to outside businesses, has a growing and young population, a bounty of natural resources, an economy that has done well despite the economic recession, and it’s stable politically, The main constraints in that country are poor infrastructure, high taxes and bureaucracy, but it also has several huge upcoming events that may help move things along, including the World Cup in 2014 and the Olympics in 2016. A potential Brazilian partner is essentially looking for two things; someone they like and trust as well as someone who is competent in business. The most important of these is to build a strong relationship first which will then naturally lead to trust. Time must be invested in getting to know people on a personal level in order to allow for open and honest discussions in business.

Any investor thinking in doing business in Brazil needs to have key information regarding: (a) how to enter the market, (b) sources of funding, (c) investment incentives, (d) taxes, (e) labor, and (f) international trade," said Luis Fernando Lopez Cobo, in a special for the Miami Herald.

Population of 200 million that is 80% urbanized, the nation’s need for infrastructure is enormous, and the water and wastewater industries present a major investment opportunity.Going forward, Owen predicts that Brazil’s economy will grow a healthy 5.3% for 2010 and 5% per year for the next five years after that.

Owen suggested that valve manufacturers who want to enter the Brazilian market develop partnerships or relationships within the country’s borders. “The channel structure is similar to yours (U.S./Canadian) working through engineering groups for large projects and integrators to bring projects and companies together,” he said. “develop a presence within this structure,”

Source: ibtimes