Portugal Capital Lisbon Currency Euro (EUR) Language Portuguese Population 10.6 million EU status member GDP 2006 $203.1 billion Employment 98.5% Exports $46.77 billion f.o.b. (2006 est.) Imports $67.74 billion f.o.b. (2006 est.)

setting up business Number of days to start business 8 Cost (% of income per capita) 4.3% Nonwage labor cost (% of salary) 23.8% Total tax rate (% profits) 47%

 

Portugal

Portugal is home to several major chemical clusters

Portugal is perhaps best known on continental Europe for its service and tourism industry. But this is a country with an array of natural resources, and an increasingly diversified and service-based economy that is looking to establish itself as an international center for innovation. A skilled and educated workforce, good telecommunications infrastructure, a strong transport system that is undergoing extensive upgrades, free movement of goods within the EU, and comparatively low labor costs are all points in Portugal’s favor.

Foreign direct investment

In 2005, a World Bank report ranked Portugal in the top 10 “reformer” countries that were implementing probusiness changes in the investment climate. The success of these measures, which have included cutting corporate tax to 20%, and the increasing levels of investor confidence in the country, can be seen in the continued growth of FDI since 2004. In 2006, overall FDI was $3.2 billion, and this level of investment looks likely to continue – by the end of February 2007, FDI for the year so far had already reached some $710.6 million. In another indication of how the FDI sector is booming, Portugal moved from 53rd to 17th position regarding its capacity to attract foreign direct investment, from 2005 to 2006, according to an annual survey carried out by A.T. Kearney and Foreign Policy magazine.

introducing innovation

Portugal encourages the development of industry clusters to maximize investment potential. Substantial incentives are available to companies establishing business with a strong R&D component in Portugal, and this has proved attractive to several multinational corporations, that are now either establishing or expanding their research operations within Portugal. Many of these companies have existing operations in Portugal within one of several well-established sectors.

These include:

Automotive

The automotive sector includes both auto and parts manufacturers, supported by the Centre for Excellence and Innovation in the Auto Industry (CEIIA), and R&D cluster set up specifically to benefit the auto industry in Portugal. Major investors who have chosen to establish manufacturing operations in Portugal include VW, Citroen, Opel and Toyota. Most recently, the tyre manufacturer Continental Mabor, announced its decision to invest a further EUR 18.8 million in its Portugal-based manufacturing facilities.

Chemical

There are some 850 companies active in the chemicals business in Portugal, at every stage of the value chain from refineries to laboratories producing specialist chemicals in small quantities. Major investors in this sector include Borealis, ADP, Colgate, Bayer and CIN. There are two main clusters for the chemical industry, located in Porto and Lisbon. Three-quarters of Portugal’s chemicals companies are located in these two clusters, which offer good access to transport corridors, both by land and by sea.

Electric and electronic

R&D and ICT expertise attract high-profile investors

In addition to a strong automotives electronic sector, Portugal has a number of companies actively involved in both the production and development of electric and electronic products ranging from semiconductors to telecoms components. Siemens has based a software research and development team consisting of more than 500 people in Portugal.

ICT

There are almost 8,000 ICT companies in Portugal, including international investors such as Nokia, Siemens, Oracle and IBM. Portugal’s emerging R&S sector has attracted a number of investors recently, including Vodafone, which has established a center of excellence in Portugal that will concentrate on R&D in the area of commercial transactions, including mobile commerce and transaction security.

business services

The 1998 Expo put Lisbon on the international stage

The Massachusetts Institute of Technology (MIT) has launched a joint project in co-operation with the Portuguese Ministry of Science, Technology and Higher Education to significantly expand research in engineering and management in seven of Portugal’s major universities, together with a number of research centers and laboratories.

AMCHAM POrtugal

In 2005, the American Chamber of Commerce in Portugal completed 54 years of work. During the past years this Chamber of Commerce has played a crucial and successful role in reinforcing economic, financial and cultural relations between Portugal and the United States. Also important is that during this period of time the Chamber has played a decisive part in increasing understanding and personal relationships between entrepreneurs, members of governments and institutions of our two countries.

 

Contact Information

American Chamber of Commerce in Portugal
Rua D. estefania 155-5 Esq
1000-154 Lisbon
Portugal
Tel: +35 121 357 2561
E-mail: amchamportugal@mail.telepac.pt
Website: www.amchamportugal.org

 

Useful websites

www.american-embassy.pt	US Embassy in Lisbon
www.investinportugal.pt	Government investment agency
www.ine.pt	National Institute of Statistics
www.dgep.pt	Economic research and forecasting
www.min-nestrangeiros.pt	Ministry of Foreign Affairs
www.visitportugal.pt	Tourism and travel

 

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