Rio Grande do Sul is the southernmost state of Brazil. It has the fourth highest Human Development Index (HDI) in the country. It also boasts of a comprehensive infrastructure network supporting a diversified and dynamic economy. It’s the leading producer of grain in Brazil, and ranks second in trade and exports services.

Rio Grande do Sul is one of the most prosperous states of Brazil. It has a flourishing foreign trade and exports products such as footwear, tobacco, leather and fur, transportation equipment, food products and machinery to the markets of Argentina, Germany, China, Chile, Italy, Russia, Spain, Uruguay and the US.

The Rio Grande do Sul state government devotes special attention to investors by using modern tools of financial and mechanical support.

 

A competitive economy:

 

A comprehensive and diversified industrial structure, backed by an excellent infrastructure and skilled human resources of international standards, have made  Rio Grande do Sul the fourth regional economy of Brazil. Due to this, business giants from various sectors including Information Technology and automotive, steel and food segments have set up their branches in the state.

The presence of both small-scale and micro-scale companies account for around 46% of Rio Grande do Sul’s workforce and contributed greatly towards the economic growth of the state. Medium-scale and large-scale companies employ 15% and 39% respectively of the workforce. This cooperative existence among the large, medium, small and micro companies has given the state a competitive advantage over the other Brazilian states.

 

Incentives by the government:

 

The Rio Grande do Sul state government works in association with local communities to attract investments to the state. The State Department of Development and International Affairs (SEDAI) is in charge of ameliorating the quality of life of the local population and fighting regional inequalities, poverty and social exclusion. This department is in charge of executing appropriate measures to ensure integrated, decentralized and sustainable economic and social development.

 

Financial incentives:

 

The Fund Operation Company of Rio Grande do Sul (FUNDOPEM/RS) is the state government’s key mechanism of financial assistance to encourage the development and growth of the businesses in the state. It’s a financial assistance program based on the ICMS (State Tax on the Circulation of Merchandises and Services) and contemplates projects associated with installation, expansion and modernization of businesses. 

Local, national and foreign companies integrated to the decentralization process targeted at the state’s development and the reduction of regional socio-economic inequalities can apply to seek incentives from FUNDOPEM/RS.

The amiable coexistence of the local population and the state government offers a pleasing and welcoming business environment. Rio Grande do Sul offers a highly qualified, skilled and abundant workforce. The population of the state is the result of the integration among different races, and is of a hardworking and cordial nature.

Another reason that makes Rio Grande do Sul an investment-friendly destination is its strategic geographic location. It is located at the heart of Mercosur, and thus it allows investors to have direct access to the economic centers of South America.