Private, nonprofit, apolitical organization, established in 1982 - PowerPoint PPT Presentation


PPT – Private, nonprofit, apolitical organization, established in 1982 PowerPoint presentation | free to view - id: 7b5ff-ZDc1Z


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation

Private, nonprofit, apolitical organization, established in 1982


Source: National Institute of Statistics and Census. ... Costa Rica: Total Diplomas on Engineering Careers. Human Resources Availability ... – PowerPoint PPT presentation

Number of Views:38
Avg rating:3.0/5.0
Slides: 50
Provided by: carlos80


Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Private, nonprofit, apolitical organization, established in 1982

(No Transcript)
CINDECosta Rican Investment Promotion Agency
  • Private, non-profit, apolitical organization,
    established in 1982
  • Active promotion of foreign investment, local
    support, and post- establishment services
  • Declared of public interest by the Costa Rican
    government in 1984
  • Currently holds a seat in the steering committee
    of the World Association of Investment Promotion

Why Costa Rica?
  • Strategic Location
  • Political and Social stability
  • Legal Security
  • Economic Stability
  • Human Resources
  • Incentives
  • Infrastructure
  • Quality of Life
  • Great Potential
  • Electronics Sector

Strategic Location
  • In the middle of the Americas
  • Central Standard Time Zone
  • More than 20 daily direct flights to the USA
  • 250 hours flying time to Miami
  • 2-3 days delivery time by major express services
  • Daily world-wide air cargo through 14 daily
  • Over 24 world cargo shipping lines with regular
    departures on Pacific and Caribbean Oceans

Political and Social Stability
  • Tradition of peace and stability
  • Army abolished in 1948
  • Highest ranked in Political Stability and Absence
    of Violence index in Latin America (World Bank,
  • Government
  • More than 100 years of democracy
  • 3 independent powers
  • 4 year-term with reelection
  • Presidential system

Political and Social Stability
Source World Bank, 2007.
Legal Security
  • Foreigners have no limits of property handling
    and they can drive business activities freely.
  • Foreigners have constitutional equality of rights
    and obligations.
  • Free capital movement, no foreign exchange
  • Intellectual property laws in accordance with WTO

Economic Stability
Over 20 years of economic stability
Source CINDE, based on Costa Rican Central Bank
Economic Stability
  • As a result, Costa Rica benefits from good access
    to the worlds capital markets and moderate risk
  • Costa Rican Long Term Bond Ratings
  • Moodys Ba1 (stable)
  • Fitch Ratings BB (stable)
  • Standard Poors BB (stable)

Source Central Bank of Costa Rica.
Foreign Direct Investment
FDI Inflows
Source CINDE, based on the Central Bank of Costa
Foreign Direct Investment
Reinvestment in Free Trade Zone Regime
Total Investment from 2000 to 2006 2 Billion
Source CINDE based on the Central Bank of Costa
Open Economy
Source Central Bank of Costa Rica.
Strategic Market Access
  • Duty free access to
  • USA through the CBI
  • Mexico
  • Canada
  • Central America
  • Chile
  • Dominican Republic
  • Preferential access through the GSP to
  • Europe and Asia
  • Free Trade Agreements negotiations
  • USA (signed)
  • Panama (signed)
  • EU (negotiations started Oct. 2007)
  • China (to be confirmed)
  • Investment Promotion and Protection agreements
    with several countries

Human Resources
  • Population to July, 2007
  • 4.44 million
  • 34.2 of population is 15 to 35 years old
  • Labor force 2007 2.01 million
  • Unemployment, July 2007 4.6
  • Underemployment, July 2007 7.4
  • Universal Health Care and Education System
  • Pillars for the national stability
  • 6 of the GDP is allocated to education

Age structure by gender
Human Resources
Source National Institute of Statistics and
Educational System
  • Education is universal, free and compulsory since
    1870 (the first in Latin America)
  • Academic Schools
  • Computer labs in 18 of the public elementary
    schools and 82 of public high schools
  • English teaching in 38 of public schools and
    almost all of private schools
  • Technical Education
  • Technical High Schools 89
  • National Training Institute (INA)
  • Universities
  • Total of 59 4 public, 55 private
  • Technological Institute of Costa Rica
  • University of Costa Rica
  • INCAE (Harvard University)

Source Ministry of Public Education.
World Class Standards
Source The Global Competitiveness Report
Source Human Development Report 2006
World Class Standards
Source The Global Competitiveness Report
Source The Global Competitiveness Report
World Class Standards
Source The Global Competitiveness Report
Source The Global Competitiveness Report
Technical High Schools
  • 4 year program includes academic and technical
  • Computer repair, microelectronics, precision
    mechanics, industrial electronics, industrial
    maintenance and electro-mechanics in 18 schools
  • Service Center Executive new area of
  • Informatics and IT review and adjustments to
    academic curricula.

University of Costa Rica
  • Public university founded in 1940
  • 22 research centers, including
  • CELEQ (Chemistry Electricity), since 1978
  • Corrosion, lubricants, and fuels among others.
  • CICIMA (Material Science), since 1990
  • Metals and ceramics, biocompatible coatings,
    semiconductor optical properties, thin film
    properties, superconductors.
  • INII (Engineering), since 1979
  • Quality control, equipment calibration, etc.

Costa Rica Institute of Technology
  • Public university founded in 1977
  • 13 research centers, including
  • CIC (Computer Applications), founded in 1992
  • Research artificial intelligence and the creation
    and adaptation of computer applications to user
  • CETMA (Electro mechanics), founded in 1991
  • Training, consulting services, and fabrication of
    medium scale parts using PLC, CNC mills and
    lathes, Auto CAD, Edge CAM, etc.
  • Electronics, founded in 1978
  • Research services in microelectronics and
    electronics, semiconductor technology, and
    microelectronic applications
  • Material Science, founded in 1982
  • Research on corrosion, magnetic sands, thermal
    treatments, extractive metallurgy and non
    destructive testing.

Human Resources Availability
Costa Rica Technical High School Graduates
Source Ministry of Education of Costa Rica.
Human Resources Availability
Costa Rica Total Diplomas on Engineering Careers
Source Ministry of Education of Costa Rica.
Human Resources Availability
Graduates on Computer Sciences by degree year
Source Ministry of Education of Costa Rica,
Human ResourcesA Qualitative Approach
  • Costa Ricans are healthy and motivated learners
  • High productivity and fast learning curve in Free
    Zone Companies
  • Low turnover
  • Favorable labor environment non-existent unions
    in private sector (Solidarismo)

Minimum Wages
Category C o s t Annual
costs per hour
Non qualified 2.31 5,756 Semi
qualified 2.50 6,246
Qualified 2.69 6,710
Specialized 3.11 7,745 NOTES All
costs include all labor charges paid by the
company, Christmas bonus and reserves for
vacations, holidays and severance (47.98 in
total). Minimum salaries effective from January
to July 2008. Exchange rate used 500 colones per
US. Normal week of 48 hours and 8 hours per day.
Average Wages
Occupation Annual Cost (US)
1 Manufacturing Manager 139.0 Production
Manager 72.3 Plant Manager
59.1 Plant and Process Engineer Sr.
26.1 Quality Engineer 23.1 Production /
Process Supervisor 17.3 Milling Machine
Operator 11.0 Specialized Technician
10.7 Specialized Plant Operator
8.1 Non-Specialized Plant Operator 5.9
1 Thousands of dollars. Cost includes all the
social charges paid by the company, Christmas
bonus and reserves for vacations, holidays and
severance. Source Consulting companies, survey
for the second semester 2007.
Fringes Benefits Breakdown
Investment Incentives
  • 100 exemption on
  • Import duties on equipment, components,
    computers, furniture, software licenses, etc.,
    necessary for the production process
  • Export taxes, local sales tax, excise taxes, etc.
  • Profit repatriation tax
  • Income tax (All export based subsidies must
    comply with WTO Guidelines by December 31st, 2015
    for manufacturing companies)
  • Services companies have 8 year income tax
    exemption, 50 exemption for the following 4

Investment Incentives
  • Minimum investment requirement
  • US 150,000 inside an Industrial Park
  • US2 million stand-alone free zone
  • Service companies can sell up to 50 to the local
    market and processing companies up to 25
  • There is a 0.3 fee on sales or a minimum fee of
    200 a month. If the company doesnt generate the
    invoicing in CR, the fee will be calculated based
    on the operations total expenses. Processing
    companies are charged by productive space (0.25
    or 0.5 per
  • Guaranty deposit.

  • Free Zone Industrial Office Parks
  • Business Centers
  • Designated areas for Free Trade Zone companies
  • Privately owned and managed
  • Other services customs services expedited on
    site, security etc.
  • Several private construction projects in the
    Great Metropolitan Area
  • With access to main labor pool concentration

  • Telecommunications redundant fiber optic
    submarine cables (Maya Arcos), satellite and
    terrestrial microwave network in place to meet
    demand in fixed, mobile and Internet services
  • Redundant electricity 97.5 is generated from
    renewable sources (hydroelectric, geothermic and
  • Abundant water supply

__ Maya I .... Arcos
  • On-line customs (FTZ Companies)
  • On-site customs at free zone parks to expedite
    the import/export process
  • Costa Rica Provee office (
  • Local manufacturing capabilities
  • Electronics assembly
  • Machine and tooling shops (CNC lathe, mill, EMD
    and conventional)
  • Grinding, stamping
  • Mold (maintenance, repair, limited manufacturing)
  • Limited heat treatment and plating
  • Local machinery
  • Plastic injection molding
  • Packaging (cardboard, thermoformed, flexible)

Quality of Life
San José ranks third among the cities in Latin
America with the best quality of life. The
countrys capital maintains a leadership over
its competitors, such as China, Malaysia,
Mexico, India, and others.
Source The Economist Intelligence Unit, 2006
Great Potential
  • Central American Country of the Future
  • 2007-2008 FDI Magazine,
  • 2nd Most Globalized country in Latin America
  • The Globalization Index 2007, A.T. Kearney and
    Foreign Policy
  • 5th High-Tech exporter of the world
  • World Development Indicators 2007, World Bank

Electronics in Costa Rica
  • More than 20 years of experience
  • US 162 million in FDI in 2007
  • 12,500 skilled workers employed
  • Over 50 companies
  • Main Export Products (by US)
  • circuits and semiconductors
  • electrical apparatus
  • high frequency and sound amplifiers
  • parts for motors and generators

Compliance with world wide quality standards
ISO, QS, TS, TL, UL Boeing and FAA
certification Clean rooms class
Electronic Cluster
Main Processes
  • PC Board Assembly and Test
  • SMT, TH, BGA
  • Thick thin film substrates
  • Printed wire bonding and others
  • Harness, cable and connector assembly
  • Semiconductor packaging and testing
  • Subassemblies (microwave, RF, electrical,
    electromechanical, electronics)
  • RF Tuning

Intel in Costa Rica
Costa Rica continues to be a strategic site for
us and now our best products are manufactured
here. I believe this speaks for itself Paul
Otellini, President and CEO, Intel Corporation
Micro Technologies in Costa Rica
Over the past 5 years, our activities in Costa
Rica have gone from a small satellite facility to
the primary manufacturing center for our global
operations Michael Tucci, President, The Micro
Group, Inc.
Bourns / Trimpot in Costa Rica
Bourns is extremely proud of our presence in
Costa Rica based upon the eagerness from all our
manufacturing team to apply to lean tools and
commitment to continue becoming stronger and
sustain our World Class Manufacturing
position Mario Zuchovicki, Vice President and
General Manager, Bourns Inc, Resistive Products
Medical Devices
  • 6,500 direct employees through 2007
  • US 156 million in FDI in 2007
  • Product Lines
  • Cardiovascular
  • Orthopedic
  • It is one of the most dynamic and productive
    sectors in Costa Rica.
  • Exports increased by 12 during 2006
  • Baxter Healthcare and Hospira, leaders of the
    industry, have operations in Costa Rica
  • Industry growth has created the need to attract
    new company suppliers to provide the industry
    with molding, filters, packaging, resins and
    other supplies

Medical Devices
Medical Devices
  • US 64 million in FDI in 2007
  • 20,000 direct jobs through 2007
  • Costa Rica offers the right conditions to
    companies for added value to their production
    with cost effective infrastructure, its labor
    forces characteristics, and world wide services,
    such as
  • Shared service Centers
  • Back Offices
  • Software Development
  • Call Centers
  • Engineering, Architecture Design

Thank you for considering Costa Rica!
Alvaro Cedeno Deputy Director, Costa Rican Trade
Promotions Agency Commercial Counselor, Embassy
of the Republic of Costa Rica Beijing, China Tel.
(10) 6532.7115
Solidarista Associations
  • Employer-sponsored workers associations
  • Each company has an organization, in which white
    and blue collar workers participate
  • The organization operates as a credit union which
    provides multiple benefits to workers
  • It is funded by employers, with part of the
    severance provisions, and by employees
  • Solidarista organizations ARE NOT sector-wide
    bargaining instances, as American unions