VALENCIAN REGION THE BEST BET

Transcription

1 VALENCIAN REGION THE BEST BET

2

3

4

5 TABLE OF CONTENTS Why invest in the Valencian Region? 5 01 General data and economic trend in Spain 7 02 Foreign investment in Spain 9 03 General data and economic trend in the Valencian Region Foreign investment in the Valencian Region Key factors for investing in the Valencian Region Location Human capital Diversified industrial base Business opportunities Quality of life Institutional support Investor support: INVEST-CV 29 Contact information 33

6 4

7 Why invest in the Valencian Region? Because the Valencian Region is a land of opportunity, resources and strengths that favour investment. Because the Valencian Region is a highly-competitive, enterprising and innovative region that stands out from other regions. Because the Valencian Region is strategically located, has well-developed infrastructure, and offers expert training, culture and quality of life and business. Because our past, the legacy of diverse cultures, a tradition of industrial development and export capacity has brought together present consolidation and a future of growth and stability. Because the Valencian Region offers investors all this and a dynamic, open and modern character. Because the Valencian Region is the best investment. 5

8 The growth forecast for 2015 is 2.2%, which is higher than Germany and France 6

9 01 General data and economic trend in Spain Spain is the fourth-largest country in Europe and has the 13th-largest economy in the world. It is very much a multicultural region and contributes to the creation of a unique identity, Brand Spain, characterised by design, creativity and hard work. In 2014, growth emphatically returned to Spain with figures that have not only confirmed various international organisations forecasts but exceeded them. It is the Eurozone country whose GDP grew fastest in the second quarter at a year-on-year rate of 1.4%. This is particularly praiseworthy when compared with stagnation in the Eurozone and even recessions in Italy and France. The revised forecasts for 2015 are again positive. Spain is set to lead Eurozone GDP growth at a rate of 2.2%, ahead of Germany, France and Italy. Spanish exports, which now exceed 140 billion, are enjoying a new golden age, driven mainly by the motor industry, food and consumer goods manufacturing. Spain is at the forefront of renewable energies in terms of both production and management, as well as development of environmental, high-speed, motor industry, transport, logistics, IT, communication and healthcare technologies, thanks to the experience built up in its national health system and the encouragement of industries such as biotech. 7

10 Spain: an attractive place for foreign investment 8

11 02 Foreign investment in Spain Spain is back on the growth path and has positioned itself again as an attractive destination for foreign investment. Reforms undertaken in recent years notably include making the labour market more flexible. A large pool of qualified professionals, innovation policies, and a favourable RDI tax system, plus the existence of high-tech infrastructure and companies, are just some of the economic attractions for investment. The Support for Entrepreneurs and International Expansion Act 14/2013 of 27 September is notable in having a section dedicated to residence permits for foreign investors. Spain is the country with the 9th-highest Foreign Direct Investment (according to UNCTAD s latest report, World Investment Report 2014). The main countries investment flows in from are: Germany, France, the United Kingdom, the Netherlands, Italy and Switzerland. 9

12 10

13 03 General data and economic trend in the Valencian Region It is the 4th Spanish region in terms of GDP (10% of the total) and population with 5.1 million inhabitants. It is of key importance to the Spanish economy due to the large size of some industries, such as tourism, the motor industry, plastics, chemicals and food and agriculture. With 1.3% GDP growth in 2014 and a foreseeable 2.4% in 2015, growth in the Valencian Region is speeding up. The region stands out as one of the most stable regions in legal, political and social terms. It is also necessary to stress its connection with the Mediterranean and Spain s capital city through efficient infrastructure enabling it to be a point of connection between Europe and the world. The region is clearly focused on international markets and its openness to foreign trade is above the WTO average (46%). The Valencian Region is among the top 4 exporting regions in Spain. It is the region where exports have grown at the fastest rates (9.7% each year since 2012) mainly thanks to the diversity of target markets, with growing share among emerging economies rather than the EU, and increased specialisation of exports (motor industry, ceramic products, fruit and vegetables). It is not only foreign markets that are driving the region s economy forward: the increase in domestic demand is also benefiting from greater economic certainty, stabilisation of the property market, a resurgence of private consumption, an increase in financial wealth and falling unemployment. All these aspects have brought about a real and tangible recovery in the Valencian Region. Main data for the Valencian Region 11

14 12

15 04 Foreign investment in the Valencian Region The Valencian Region offers economic and geostrategic factors, infrastructure and quality of life, among other aspects, which have attracted foreign investment into the region over the years. More than 11,000 foreign companies have set up in the Valencian Region, 800 of which are industrial companies wholly-owned by foreign investors. Ford, UBE Industries, CETCO Spain, Vossloh, BP Oil, IKEA, ArcelorMittal, Roquette, Plastic Omnium, Hasbro, Mediterranean Shipping Company and Hewlett-Packard are just some of the foreign countries that have placed their trust in our region rather than others in Spain and Europe. The largest investor countries in order of size in the region are: Germany, Italy, France, the United Kingdom, the Netherlands and Switzerland. 13

16 14

17 05 Key factors for investing in the Valencian Region 5.1 LOCATION: Logistic hub Well-developed infrastructure Gateway to Europe 5.2 HUMAN CAPITAL: Extensive training Low staff turnover Highly competitive salary costs 5.3 DIVERSIFIED INDUSTRIAL BASE: Strong support for RDI Strong network of supplier companies High volume of patents registered 5.4 BUSINESS OPPORTUNITIES: Numerous industries to invest in Industries that drive investment Strategic industries 5.5 QUALITY OF LIFE: Excellent climate Mediterranean cuisine Political stability 5.6 INSTITUTIONAL SUPPORT: Speeding up bureaucracy Aid and incentives Advising investors on the path to follow 15

18 5.1 LOCATION The Valencian Region has an exceptional geostrategic position in the middle of the Western Mediterranean Arch. This provides quick access to both the national and European markets and makes it a true logistic hub in the South of Europe. The port joins North Africa and Europe and is a key link with Latin America, with which we have strong historical and cultural connections. It has excellent transport connections through an extensive network of quality motorways and railways and well-developed infrastructure providing an ideal platform for businesses looking to sell outside the region. Infrastructure in the Valencian Region Port system in the Valencian Region: there are 5 ports in the region: Castellon, Alicante, and Sagunto, Valencia and Gandia, grouped together as ValenciaPort. ValenciaPort is the largest commercial port in Spain and the Mediterranean, the 5th-largest in Europe and the 31st-largest in the world in terms of the number of containers handled. It is the natural port for the capital city, Madrid and inland cities such as Saragossa. As a logistic hub with 140 shipping lines it can efficiently distribute goods within a radius of 2,000 kilometres, reaching 243 million consumers. Alicante Port ships to North Africa, the Balearic Islands and the Canary Islands. It is also the emerging natural port for industrial exports from Alicante. Castellon Port stands out as the epicentre for exports from the chemical and ceramics industries. Expanded facilities, increased shipping lines, improved indoor infrastructure and active commercial efforts have contributed to maximising its performance in recent years. 16

19 05 Road network: the Valencian Region is connected by road to the rest of Spain and Europe through a network of fast roads. One notable example is the A-3 which reaches Madrid in 3.5 hours and from there links up with the rest of the motorways connecting all of the other major Spanish cities. The A-7 (E-15) crosses the Valencian Region along the Spanish Mediterranean connecting France with Algeciras. The approximate distance from Valencia to France is 500 km and takes an average of 5 hours. Railways: we have excellent railway connections for passengers and goods. Spain is the country with the 2nd-longest high-speed railway network in the world, a total of 2,230 km. The AVE (Spanish high-speed trains) connects Valencia and Alicante to Madrid. Travel time to the Spanish capital is 100 and 150 minutes, respectively. The Valencian Region is part of the Mediterranean Corridor, the main railway from France to Murcia. It is used by local, medium-distance and long-distance passenger trains and goods trains. The so-called Third Line is now reality; it allows international gauge rolling stock to travel at a speed of more than 200 km/h on intercity stretches and is part of the so-called European D corridor connecting Valencia with Budapest. It is also part of the Cantabria-Mediterranean Corridor, which improves connections between Valencia and Aragon and the Bay of Biscay, and strengthens connections between the ports of Sagunto, Valencia and Bilbao. Air connection: we now have 3 international airports located in Alicante (El Altet), Valencia (Manises) and Castellon. Alicante airport is the 3rd-largest in the Iberian Peninsula in terms of passenger numbers, handling more than 9.5 million people in 2013, 8.8% up on the previous year. Valencia airport stands out in terms of the volume of goods handled: more than 11 million tonnes. 17

20 5.2 HUMAN CAPITAL We have 11 universities (6 private and 5 public, which in turn have 5 science parks), providing a fertile environment for training human capital in the Valencian Region. 160,000 university students are currently enrolled and 85,700 students are doing vocational training. The Valencian Region s main added value is having highly competitive professionals in terms of educational qualifications as well as pay. The latter is due to the recent nationwide labour reforms, which have made working conditions and costs more flexible. Employment situation and average pay: according to the Organisation for Economic Cooperation and Development (OECD), Spain is one of the most competitive economies in terms of unit labour costs. Average annual pay in Spain is also below the average. Average pay in the Valencian Region is 10% below the Spanish average, and 25% lower than the Madrid Region. This pay difference is offset by the lower cost of living in terms of key items such as buying or renting a home or offices, acquiring industrial land, energy costs and telecommunications. On top of this, companies can hire top-quality labour and benefit from various regional and central government incentives for hiring, training and work experience. 18

21 05 LABOUR COSTS PER WORKER PER MONTH Madrid Region Basque Country Navarre Principality of Asturias SPANISH AVERAGE Valencian Region Extremadura 3.037, , , , , , ,83 Average educational level: 43% of Spain s adult population aged 25 to 64 has been to university 1. Our region s population is one of the highest qualified in Spain and the South of Europe thanks to an educational system based on excellence. Universidad de Valencia (UV) has a history stretching back more than 500 years. It is among the world s top 300 universities according to Jiao Tong University and among the top 350 in the world according to the ranking produced by THE, a prestigious British publication. Universidad Politécnica (UPV) is the leading Spanish university in terms of research and licence income. It is considered to be the 9th-best Spanish university according to the SIR World Report and has risen to 354th place in the global ranking. Centro de Estudios Universitarios (CEU) is the leader among the 23 Spanish private universities. It has 63 research groups, placing it among the top 4 private universities in research. 1. OECD Report Education at Glance

22 5.3 DIVERSIFIED INDUSTRIAL BASE The Valencian Region has undergone a major economic transformation in recent decades. Its industrial base is characterised by predominantly small and medium-sized enterprises, high geographic and industrial concentration, and being clearly export-focused. These aspects enhance the region s dynamic business outlook. Companies in the Valencian Region use a system of strategic subcontracting which lends them flexibility, rapid response, greater focus on investment in their core business and greater opportunities for creating competitive advantages. To achieve this we have a robust network of connected suppliers and industrial companies, which are highly competitive, are enjoying excellent domestic and export growth, and have a fine international reputation. There are also well-established, internationally-focused clusters in the region such as ceramics, agrochemicals, furnishings and footwear. The Valencian Government is working to bring about industrial groupings in the region with a focus on creating clusters. Support for RDI RDI is one of the main tools being used to strengthen the region s economy. The Valencian Region is committed to RDI innovation policies that help companies improve their productivity, competitiveness and excellence. This effort can be seen in the firm institutional support for innovative projects, as well as the creation of various RDI networks: the Network of Technology Institutes, the Network of Scientific Research Centres and the universities own research centres. 20

23 05 The Network of Technology Institutes (REDIT) meets companies needs for RDI and hightech services in both traditional industries and in various technology and knowledge areas. The Network of Valencian Universities has set up collaboration agreements between the 5 public universities and private universities (CEU and Universidad Católica de Valencia) to promote scientific research and technological development as well as innovation in all knowledge areas. The joint proposal made by the UV, the UPV and the Spanish National Research Council (CSIC) has culminated in the creation of a campus of international excellence called VLC/ Campus, the aim of which is to attract and retain talent. VALENCIAN REGION S Technology Institutes IBV Biomechanics AIMME Metallurgy AICE-ITC Ceramics ITE Energy AINIA Food & agriculture AIMPLAS Plastics AIJU Children s and leisure products AIDO Optics, colour and image AIDIMA Wood, furniture, packaging et al. INESCOP Footwear AITEX ITENE Textiles Packaging, transport and logistics ITI ICT - information and communication technologies 21

24 5.4 BUSINESS OPPORTUNITIES The Valencian Region offers investors attractive business opportunities in various industries. Industries that attract investment, account for a high share of the region s economy and strategic industries with great potential and which have an appropriate framework for their development in our region. Industries that drive investment Motor industry, machinery and capital goods: the motor and vehicle components industry in the region is made up of around 128 companies that provide more than 9% of the Spanish motor industry s turnover. 20% growth in motor industry turnover is forecast. Chemicals (plant protection products and chemical processing): the chemical industry in the Valencian Region produces more than 6,600 million, 8% of the national total and accounts for 11% of the region s GDP. It is also one of the industries of the future, as it is expected to grow more than any other by It is the 2nd-largest exporting industry in the region. Tourism (complementary products and services - leisure and sport): each year the tourist industry in the Valencian Region attracts 23 million tourists, 6 million of which are international tourists. The Valencian Region has an outstanding competitive position in the national and international tourism industry thanks to the action included in the Global Strategic Plan for Tourism for the Valencian Region , the aim of which is to strengthen an industry of strategic importance to the regional economy and employment. 22

25 05 Plastics (technical plastics and biopolymers): we are the second-highest exporting region with 8% of the Spanish total. Almost 21% of Spanish companies in the plastics industry are in the Valencian Region, providing 15% of national jobs in the industry and 12% of the industry s turnover in Spain. Food and agriculture: the Valencian Region is the region that exports the third-highest amount of food and agricultural products, accounting for 15% of the Spanish total. Fruit is the leading export product for this industry (14% of the total value of Valencian products). We have around 1,756 companies in this industry, which is 7% of the country s total. In addition to those mentioned above, the Valencian Region has other industries with a strong tradition such as toys, footwear, furniture and textiles. These export large numbers of products and have contributed to our region s economic development. Strategic industries Logistics: using the best possible logistics is key to international expansion. One notable future project is the Mediterranean Corridor, which will connect all of the major cities in the east of Spain. This will cut passenger and goods transport times and provide railway access to Spanish Mediterranean ports with the resulting economic and environmental savings. Information and Communication Technologies (ICT): in 2013, exports of ICT industry products reached almost 166 million euros. The Valencian Region was the region with the third-highest exports of such products (8% of the national total). Senior/Healthcare Services: the Valencian Region is the main destination for EU citizens who want to live and grow old in Spain thanks to a framework providing all possible healthcare, legal and social guarantees. Technology companies: these are a means of attracting investment into the region with science parks, business incubators and research centres. These companies grow quickly and are highly-focused on innovation. 23

26 5.5 QUALITY OF LIFE The Valencian Region is one of the most stable regions in the EU in legal, political and social terms, creating a framework that provides guarantees and complete peace of mind for investors. The Valencian Region s stable business climate combines with various key factors that make it the place chosen by a large number of foreigners who see it as an ideal place to live and work. The climate is one of the aspects most appreciated by foreign residents together with our cuisine, a leading exponent of the Mediterranean diet with high-quality products. Its highlyvalued historic heritage is a testimony to the Valencian Region s contribution to universal culture. The Valencian Region is a low-crime area, which allows foreign companies to enjoy low security costs for their employees and property. Lastly, there is factor that provides economic potential of the highest order: language. Spanish is a language shared by 470 million people around the world and is a basic tool for cutting commercial transaction costs between our country and others. It simplifies economic exchanges by eliminating language comprehension barriers and reduces the psychological distance between different markets. This makes our region one of the main tourist areas in Europe and visitor figures are improving year by year. 24

27 05 Foreign residents in the Valencian Region: Ours is a region that welcomes immigrants, as seen in the fact that 17% of our population was born abroad. It is the Spanish region with the second-highest percentage of foreign residents, behind the Balearic Islands alone. There are more British inhabitants in the region (143,272) than any other foreign nationality. The Valencian Region is the Spanish leader in sales of homes to foreigners, accounting for a third of all such deals. People from Russia and Britain head the list. Finland, Sweden and France have seen the highest percentage rise in property purchases with increases of more than 40%. The cost of housing is lower than in other Spanish regions. It is around 80% cheaper to buy a home in the Valencian Region than in Madrid or Barcelona. Foreign schools: the Valencian Region has many schools that teach in foreign languages, making it easier for foreign residents to integrate. In the case of English, two kinds of systems are available: the American system, taught in two schools (in Valencia and Alicante) and the British system, taught in schools all around the region such as the British School and Caxton College. Classes are given in French at the Lycée Français in Valencia and Alicante. And German is taught at the Deutsche Schule in Valencia. Comprehensive healthcare: this is another of the aspects most highly-valued by foreign residents. With more than 34 hospitals, 910 health centres and more than 60,000 health professionals, the Valencian Region has a quality public health system that is free at the point of use. Some facilities, such as Hospital Universitario and Politécnico La Fe have an excellent reputation both nationally and internationally. 10 Top 20 hospital awards and a total of 11 awards for being Best in Class in the public national health system acknowledge that our hospitals produce the best results in terms of quality, clinical practice and efficiency. 25

28 5.6 INSTITUTIONAL SUPPORT Investors in the Valencian Region enjoy strong institutional support from the public authorities, which are committed to minimising bureaucratic barriers to make it easy to set up businesses here and create the right climate for investment. We also benefit from various national measures that have been put in place in recent years. These have helped improve Spain s macroeconomic situation. Examples include making the labour market more flexible, creating a tax system to encourage RDI and the publication of the Support for Entrepreneurs and International Expansion Act 14/2013 of 27 September, which has a section dedicated to residence permits for foreign investors. Governmental and regional support: In addition, the region offers a wide range of regional incentives and aid. These are divided into: Incentives for investment in - fixed assets - RDI Incentives for hiring, work experience and training Energy and environmental incentives Financing Governmental and regional support 26

29 05 Strong institutional support, reduction in bureaucratic barriers and investment incentives Industrial land: Our government sells quality industrial land, which is considerably cheaper than in other major Spanish industrial areas. The Valencian Region has more than 188 million square metres of industrial land in 660 industrial parks, plus as much as a further million square metres of public industrial land made available through novel forms of leases: Ad aedificandum lease: the land is provided at zero cost, the lessee undertakes to industrialise the land and create jobs. Building rights: companies are given access to public land, which they do not own but can build on in exchange for a fee. We also have more than 7 million square metres of reserved public land. All of this public land is strategically well-located, adapted to the landscape and environmentallyfriendly and sustainable. The procedures to set up new companies are being speeded up through institutional stability and the entry into force of Decree-Law 2/2011 on Strategic Territorial Action, the Environmental Prevention, Quality and Control Act 6/2014 and the Spatial Planning Act 5/

30 POLAND UNITED GERMANY KINGDOM RUSSIA MEXICO COLOMBIA NEW YORK MIAMI PANAMA MOROCCO TURKEY ALGERIA AZERBAIJAN IRAN SAUDI ARABIA INDIA CHINA SOUTH KOREA VIETNAM HONG KONG PERU BRAZIL ANGOLA SOUTH AFRICA PRIORITY STRATEGIC Our staff will work with you and advise you on each step 28

31 06 Investor support: INVEST-CV IVACE Internacional has been working for more than 25 years to support the international expansion of the industrial base in the Valencian Region. It uses INVEST- CV to attract foreign investment into the Valencian Region. INVEST-CV seeks to provide a comprehensive response to potential investors in the various areas of business competitiveness. This is achieved through a group of experts in international expansion, industrial land, energy, innovation and financing. We work with investors step-by-step and make use of the recently-created REDEX (IVACE s network abroad) to act as a source of information and advice for potential investors. 29

32 Our services Project Management We work with investors on all stages of the project (from the start to final implementation). We offer: Personal service and information on the key factors for the success of your investment project. To act as a go-between with the public authorities and provide the necessary institutional support. Business location We work to get your implementation project underway by offering the most attractive conditions for industrial land in the best location. We provide advice on finding land, industrial units or production facilities for investment or reinvestment projects. FINDKAPITAL programme We inform investors of companies with sound, value-added businesses or those that need an injection of funds to expand and/or diversify their business. LOYALTY programme (After Care) Foreign companies based in the Valencian Region can count on support from INVEST-CV. We exhaustively monitor investments made in order to identify their current needs. We assist with expansion projects and make it easier to reinvest in our region. We also provide information about local suppliers who meet your quality standards, so you can consider switching suppliers to make the best use of resources and save costs. 30

33 31

34 32

35 Contact information IVACE Telephone: Fax: Ciutat Administrativa 9 d Octubre - Torre 2 - Semisótano C/ Castán Tobeñas, 77 C.P.: VALENCIA 33

36

37

38