If an analysis of Brazilian outbound investment trends is to be believed, Georgia Gov. Nathan Deal’s planned trip in June might be coming at just the right time.
The stock of Brazilian investment in the U.S. has doubled over the past five years to about $14.8 billion, according to a new report by PiB magazine, which chronicles the internationalization of Brazilian companies. That level of investment, the article points out, surpasses most of the other so-called BRIC nations.
For evidence of Brazilian companies’ newfound outward focus, the article happens to cite both the current and former heads of the Georgia trade and investment office in Sao Paulo.
“Many Brazilian companies are rethinking strategies and accelerating their internationalization processes. The option for the United States is the safest, but a significant challenge because it is a very competitive market with low margins,” PiB quotes Fabio Yukio Yamada, head of Tradebrz, as saying.
Mr. Yamada was Georgia’s representative in Brazil before 2012 and continues to represent multiple states in the country. Read a 2009 article on Mr. Yamada
The article also cites AmCham Brasil as noticing increased trade mission activity to the United States and major acquisitions by Brazil-based conglomerates and funds like 3G Capital Partners, which has invested tens of billions of dollars to take ownership stakes in the likes of Burger King and Heinz.
During a visit to Atlanta in March, AmCham representatives told Global Atlanta that downloads on its resources outlining how to invest in the United States have been skyrocketing. The PiB article puts a number on it: up from 838 downloads in 2013 to 3,500 just from January to August of last year.
The PiB article cites Georgia’s wins in attracting companies like Gerdau Long Steel, Coteminas, Votorantim, Embraco and WEG. Brazilian poultry giant JBS in 2009 bought Pilgrim’s Pride, which controlled many poultry farms and processing facilities in Georgia. Brazilian companies are mainstays at the world’s largest poultry expo, held every January in Atlanta.
Combined, 47 Brazilian companies employ more than 6,000 Georgians, according to Jose Madeira, the current managing director of Georgia’s Brazil office, who is also cited in the article. Chinese firms, on the other hand, employ just 400 or so.
Read a translated version of the article on the Brazilian-American Chamber of Commerce Southeast’s website here.
More Brazil coverage at www.globalatlanta.com/brazil.