Summary:
60% of Brazilian entrepreneurs now prefer Portugal for international expansion over the US.
Significant investments from Brazil are diversifying across Algarve, Alentejo, and Northern regions.
Minas Gerais leads the charge with notable investments in wine and construction.
EU incentives are making Portugal an attractive market for Brazilian businesses.
The Aproxima Portugal-Brasil award will recognize efforts to strengthen bilateral trade.
Growing Brazilian Interest in Portugal
Recent surveys by ApexBrasil, echoed by the Luso-Brazilian Chamber of Commerce, reveal that 60% of Brazilian entrepreneurs looking to expand internationally are now turning their sights towards Portugal, surpassing the United States. This shift signifies a substantial change in the trade dynamics between the two nations, according to Otacílio Soares, president of the Chamber.
Increased Inquiries and Investments
Soares noted that his chamber receives at least one inquiry weekly from Brazilian business owners about business opportunities in Portugal. Conversely, Portuguese interest is also rising, with monthly inquiries observed. He predicts a reciprocal investment trend, with Brazilian companies establishing themselves in Portugal and Portuguese suppliers looking towards Brazil.
This year alone, two Brazilian companies have established operations in Portugal, with one nearing completion. These investments span across sectors such as food, furniture, and recycling. The total Brazilian investment in Portugal this year is estimated between €11 million and €12 million (approximately R$ 66 million to R$ 72 million).
Diverse Investment Landscape
Soares highlighted that investments are not just confined to Lisbon, but are also distributed across the North, Algarve, and Alentejo regions. Notably, Minas Gerais is leading this investment wave, with Soares himself investing €10 million in the wine sector through his brand Domínio do Açor. He also runs businesses in construction and storage, emphasizing the positive reception Brazilian investors have received in Portugal.
The European Market Advantage
Despite the allure of a domestic market of over 200 million people, Soares argues that Brazilian entrepreneurs should consider Portugal’s strategic position within the European Union, giving access to around 550 million consumers. He also pointed out the significant EU incentives that reduce investment costs by up to 30% and a 1% annual tax reduction over three years.
Trade Dynamics Shifting
As investments increase from both sides, Soares predicts a diversification in trade between Brazil and Portugal. Currently, Brazil mainly exports oil to Portugal, while Portugal’s exports consist primarily of olive oil and wine. With the two countries approaching 200 years of diplomatic relations, the expectation is that these ties will enhance trade.
Recognition of Entrepreneurs
In efforts to strengthen Brazil-Portugal relations, the Chamber is launching the Aproxima Portugal-Brasil award to recognize entrepreneurs who foster business ties across the Atlantic. The awards will be presented on September 12 across various categories, including female entrepreneurship, culture, and social responsibility. Soares believes these awards will celebrate strategic visionaries who contribute to the cooperation between both countries.
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