Why Chile?

In the past decades, Chile has become a haven for Spanish companies. The big ones, such as Telefonica, Endesa or Banco Santander, were the first to arrive. However, now in 2011 small and medium-sized enterprises as well as professionals of many different sectors, packed and came to this Andean country pursuing economic success. The reason is obvious, the Spanish economy is going through a bad patch. It has been three years since the recession hit, and not only is the national market weak, but our neighbor ́s are as well. Nevertheless, what is disconcerting is the fact that these companies never worried about internationalization until now that their businesses are threatened.

The situation is critical, thus, it is time to change directions, develop, take risks, and to expand in order to survive. Spanish firms are now truly convinced that internationalization is the way to do so, and it will be those that take a step further who will get a piece of the cake.

But, what makes Chile different from the other Latin American countries? Many business managers wonder, while they consider South America as a potential business destination for their products or services. Chile is a safe country with a stable economy and where the set of rules is very clear. These reasons, along with the lack of corruption and its reputation for strong financial institutions, are decisive when it comes to investing in a foreign country.

But Chile is not just about investment facilities. Let ́s not forget about the attractiveness that Chilean natural resources may offer. One of the areas with good outlook is non-conventional renewable energy, as well as the new energy efficiency practices. Spanish energy firms are well-known for being pioneers in this industry, and they all want to take part and start operations in Chile. Dozens of them arrived in Chile in the recent years and are already working on wind power, solar, photovoltaic and hybrid projects. Chile also has other economic sectors with great potential such as mining, fishing and cellulose in which new technologies and equipment are needed. For example, the north of the country holds the biggest copper mining industry in the planet. The south stands out for its forest industry and high quality fishing products. And the central area is known for its agriculture and wining. On top of that, the dynamic building industry attracts attention in most of the Spanish construction companies.

With only a market of seventeen million, it is the most developed country in Latin America and the one with the most Trade Agreements in the world. It is imperative to keep in mind though, that this development involves a high level of competition. However, with all its pros and cons, Chile is present in the majority of the Spanish firms ́ internationalization plans.