Our contribution as partners – regional strengths
Multicultural population. Communities belonging to indigenous people deliver a seal of quality to the production of local goods and services. This is the region in Chile concentrating the greatest presence of indigenous population communities.
Tourism attractions. Five national Parks, six national reserves and two natural monuments, volcanoes, lakes, and rivers are a perfect scenario. Together with the world view of its ethnic communities, they create an ideal atmosphere for productiveness with respect for the environment, biodiversity and multiculturality.
Innovation ecosystem. The presence of entrepreneurs, private companies, and universities, together with a public sector enabling interaction spaces among such entities allowing for development opportunities in this area.
The capability to “build companies” includes initiatives such as Araucanía Digital, that intends to convert the region into a technological development center which is a reference not only at a domestic, but also at a Latin American level.
Potential to grow
La Araucanía is much more than the forestry industry with which it is usually associated to at a first glance.
We have already identified nine clear investment opportunities in the region, that offer a great potential to generate productive synergies and opportunities to diversify its production model and register a higher development in different areas.
Opportunities have been identified in:
- Touristic sectors, promoting natural attractions and cultural diversity provided by native indigenous communities.
- Agricultural sector, thanks to the new scenario generated by the climate change.
- Energy sector, specially in the field of renewable energies sources.
- Fishing, specially sawfish, sea bass, silverside, maigre, sole and salmon extraction.
- Technological industry and computer services.
Regional economy profile
The main activity in the region is farming and forestry, given its climate and soil conditions. The most important are traditional cropping, livestock and forestry production, areas in which it has an outstanding position in the country.
The agricultural activity includes crops of oat, barley, and rye, in addition to lupine and potatoes. They represent the greatest areas cultivated in the country (except for potatoes). The growth experienced in the production of hazelnuts and berries should also be highlighted (especially export blueberries).
Livestock production also plays a significant role in the regional economy, particularly the bovine sector, being the second region with the greatest production in Chile.
Services also represent a significant sector of the dynamic local economy.
During the last few years, a significant growth in the forestry activity of pine and eucalyptus has been observed, mainly in Malleco province.
The region has a great tourism potential given the beauty of its landscape composed by forests, lakes, rivers, volcanoes, and mountains, with a wide offer of hotel and tourism complexes services.
Despite its relatively small size, La Araucanía region has shown a dynamism higher than the average in the country since 2015 and up to date. In 2018, La Araucanía region recorded an economy expansion of 4.3% compared to 3.9% for the Chilean economy. In 2019, this growth amounted to 1.7% and 1.1% for the region and country, respectively.
Regarding the main economic activities performed by workers in La Araucanía, in 2019 the greatest number of employees was concentrated in: agriculture; trade, teaching and construction, with 17.9%; 17.6%; 11.7% and 10.8% of the total individuals employed respectively (see chart).
Since 2018 statistics have shown an increase in the labor force, and a decrease in the unemployment rate to 6.9% below the national average.
Steps for investment
What you need to know
Chilean economic policies are among the country´s main strengths. Chile´s natural resources richness, the stability of its macroeconomic system, growth potential, legal certainty, low risk level, and it´s high quality infrastructure, attract foreign investors (Santander Trade Markets, Foreign Investment in Chile – Santandertrade.com).
Foreign Direct Investment (FDI) in Chile, is defined in the Article 2 of the Law 20.848, as the “transfer of overseas capitals or property assets of a foreign investor or of an entity controlled by the foreign investor, to Chile from abroad, for at least US$ 5 million or its equivalent in other currencies, made in a freely convertible foreign currency, physical goods in all their forms or states, reinvestment of profits, loan capitalizations, technology in all its forms provided it may be capitalized, or loans associated to the foreign investment from related companies”. This definition also applies for amounts higher than US$ 5 million designated for the acquisition of a company, or part of it, in Chile.
The Law also specifies, in its Article 3, who will be considered as foreign investors, indicating that to meet this criteria, they must meet the following requirements: natural person or legal entity established overseas; not resident or domiciled in Chile; that transfers capital to Chile in accordance with the terms described above.
Encouragment and promotion strategy of FDI
In Chile FDI decisions are made by the Law 20.848 (2015). Under this legal frame operates InvestChile, government agency responsible for promoting our country in the global market as a destination for foreign direct investment.
At a local level, the Regional Unit for Promotion and Attraction of Foreign Investment is InvestAraucanía, organism which depends from the Regional Government and is responsible for promoting the arrival of companies and capitals from abroad to La Araucanía.
Need more information? Don’t hesitate to contact us!