FITA helps you find
service providers for:


flag Argentina Argentina: Investing

In this page: FDI in Figures | Why You Should Choose to Invest in Argentina | Procedures Relative to Foreign Investment | Investment Opportunities

 

FDI in Figures

FDI influx into Argentina was reduced by half in 2009 under the effect of the global economic recession, they started to recover again in 2010; however, in 2013 the FDI inflows were strongly reduced again. Argentina ranks 4th amongst the South American countries in terms of FDI stocks (after Brazil, Chile and Colombia) and 6th in terms of FDI influx. The three main investors in Argentina are the United States, Spain and France. Argentina has certainly strong assets: its natural resources are considerable (copper, gas and oil) and its workforce is highly-skilled and competitive. However, it suffers from a disastrous image conveyed by the country during the economic crisis of late 1990s and early 2000. Restrictions have been placed on FDI in the agricultural sector, which is strategically important for the country's food security, and the more recently implemented measures (a restrictive property law, nationalizations in the energy sector which have affected the Spanish oil giant Repsol) could discourage potential investors. According to the World Bank, between 2012 and 2013 the country's business climate was deteriorated, it went down five places in the classification Doing Business (it ranked 126 out of 189 countries in 2013).

 

Country Comparison For the Protection of Investors

  Argentina Latin America & Caribbean United States Germany
Index of Transaction Transparency* 6.0 4.0 7.0 5.0
Index of Manager’s Responsibility** 2.0 5.0 9.0 5.0
Index of Shareholders’ Power*** 6.0 9.0 5.0
Index of Investor Protection**** 4.7 5.0 8.3 5.0

Source: Doing Business - Last Available Data.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.

 
Foreign Direct Investment 201120122013
FDI Inward Flow (million USD) 10,72012,1169,082
FDI Stock (million USD) 96,029103,158112,349
Performance Index*, Ranking on 181 Economies 94--
Potential Index**, Ranking on 177 Economies 14--
Number of Greenfield Investments*** 1537988
FDI Inwards (in % of GFCF****) 10.611.78.5
FDI Stock (in % of GDP) 21.421.623.0

Source: UNCTAD - Last Available Data.

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.

Return to top

Why You Should Choose to Invest in Argentina

Strong Points
A wealth of raw materials, good level of education, a human development indicator noticeably above the Latin American average, and strong growth for several years now.
Weak Points
The banking sector is fragile and under-capitalized; investments in energy are insufficient and inflation is high.
Government Measures to Motivate or Restrict FDI
The government has established various measures to encourage foreign investment in the form of incentives to invest in capital goods and infrastructures, financing programs, capacity promotion (employment and quality amongst others), encouraging innovation and technological development, geographic incentives and sectorial investments.
For further information, consult the ProsperAr website.
Bilateral Investment Conventions Signed By Argentina
Argentina has signed bilateral agreements on investments with 60 countries.
To see the list of countries, click here.
To see the conventions, click here.

Return to top

Procedures Relative to Foreign Investment

Freedom of Establishment
Yes
Acquisition of Holdings
All sectors of the economy are open to foreign investors, on an equal footing with national investors.
The investment regime is a liberal regime. Foreign investment is not subject to any authorization or declaration, whatever the amount or the activity envisaged, and even if this means taking a majority share in the capital of a local company.
Obligation to Declare
In principle, no declaration.
Requests For Specific Authorizations
There is no declaration, in principle, except for large projects which require the agreement of the competent ministry. For example: the TGV (high speed train) with the Ministry of Infrastructure.

Learn more about Foreign Investment in Argentina on Globaltrade.net, the Directory for International Trade Service Providers.

Return to top

Investment Opportunities

Investment Aid Agency
Prosperar Foundation
Invertir - PyMEs
Sepyme, Secretaría de la Pyme y Desarrollo Regional
Invierta en Argentina
Tenders, Projects and Public Procurement
Globaltenders, Tenders & Projects from Argentina
Tenders Info, Tenders in Argentina
DgMarket, Tenders Worldwide
Other Useful Resources
Centro de Economia Internacional
Ministerio de Industria
Invierta en Argentina,Ministerio de Relaciones Exteriores
Régimen de Promoción de Inversiones en Bienes de Capital y Obras de Infraestructura
 
 

Return to top

Any Comments About This Content? Report It to Us.

 

Learn more about Investing in Argentina on Globaltrade.net, the Directory for International Trade Service Providers.

© Export Entreprises SA, All Rights Reserved.
Last Updates: December 2014