NEW YORK, Jan. 24, 2011 /PRNewswire/ -- Brazil remains an attractive market for foreign investment, especially for companies seeking to expand their customer base in the country and the surrounding region, according to a survey from KPMG LLP, the U.S. audit, tax and advisory firm.
In the KPMG survey, 41 percent of more than 185 business executives with current investments in Brazil said they were interested in expanding in the country. Separately, when asked to identify the primary driver for their company to invest in Brazil, 66 percent said expanding their customer base through access to local and regional markets.
"Brazil's economy is rebounding more quickly than most after the economic downturn, and long-term growth also has been forecasted, as the country has been a hotbed for companies looking to acquire commodities and natural resources," said Mark Barnes, principal-in-charge of KPMG LLP's U.S.-High Growth Markets practice. "Brazil's strong, growing middle class with disposable income and an appetite for new goods and services also makes it an appealing market for companies looking to expand their customer base.
"In addition to providing access to the local market, Brazil can serve as a gateway to the Latin American and Caribbean region for companies setting up operations in the country," added Barnes.
According to the KPMG survey, 53 percent of respondents said their current or intended business model for Brazil is foreign direct investment, while trade (25 percent), financial (12 percent) and capital (10 percent) markets also were cited.
However, some factors were noted as potential barriers to investment in Brazil such as complex and high taxation, cited by 52 percent of respondents.
"The challenges presented by Brazil's tax regime can require assistance from professionals who can help navigate this area," said Barnes. "Risk, governance and compliance-related issues also are important considerations for any organization looking to establish a presence in a high-growth market such as Brazil and working with the right professionals can help here as well.
"While every market has its shortcomings, Brazil is still one of the fastest growing economies in the world and its upside and positives make it an attractive market," he added.
The survey was conducted in November 2010 during a KPMG U.S.-High Growth Markets practice-sponsored event focused on investing in Brazil.
About KPMG LLP's U.S.-High-Growth Markets practice
The KPMG LLP U.S.-High-Growth Markets practice provides audit, tax and advisory services to U.S.-based companies in their pursuit of outbound investment opportunities in high-growth and emerging markets such as China, India, Brazil, Russia, Mexico and Vietnam, and high-growth market-based companies with inbound investment interest in the United States.
About KPMG LLP
KPMG LLP, the audit, tax and advisory firm (www.us.kpmg.com), is the U.S. member firm of KPMG International Cooperative ("KPMG International"). KPMG International's member firms have 140,000 professionals, including more than 7,900 partners, in 146 countries.
SOURCE KPMG LLP