Investment environment analysis

1. socio-economic development and political stability assessment

Bolivia is located in the middle of South America. It is a landlocked country and one of the poorest countries in South America. The average annual income of Bolivians ($65,438+$0,000) is only one third of that of Latin Americans, and most of them are still very poor. Bolivia has a single economic structure, no developed heavy industry and light industry, lack of high value-added minerals and other products for export, and backward agriculture and animal husbandry infrastructure. Therefore, Bolivia's economic development mainly depends on foreign aid, including food and most daily consumer goods. Since the 1990s, the Bolivian government has carried out a series of reforms in the economic and financial fields, and its export products have changed from single mineral products to non-traditional products. The GDP of 1995 is $665,438+0.31.001.00 billion, and the average annual growth rate of 1990- 1.995 is 5.4. The total import value was US$ 654.38+US$ 42.4 million, with an average annual growth rate of 654.38+0.990-654.38+0.995. 1995, total international reserves 1005 billion USD, and foreign debt of 5.266 billion USD. 1997 Bolivia's GDP is US$ 7.968 billion, per capita income is about US$ 1000, foreign exchange reserves are US$ 100 billion, foreign debt is US$ 4.5 billion, inflation rate is 6.7%, and total foreign trade is US$ 3.072 billion, of which import is US$185 billion and export is US$. Bolivia's main export products are mineral products, such as lead, tin, zinc, gold, silver, natural gas and oil, and agricultural products. Imported products are raw materials, intermediate products, industrial equipment, consumer goods and automobiles. Bolivia's main trading partners are Argentina, Brazil, the European Union, the United States, Andean countries and Southern Cone countries.

Agriculture is one of the pillar industries in Bolivia, and its employment accounts for 47.4% of the national labor force. The main crops are rice, potatoes, corn, wheat, sugar cane, cotton, coffee and soybeans. Agricultural development is slow, and food has long been dependent on imports.

The industrial base is relatively weak, mainly in food processing, textile, shoemaking, cigarettes and other industries, mostly semi-handicraft production. Metallurgical, petrochemical and steel industries are in the stage of construction or planning. In the more than 60 years since independence, it has experienced more than 90 coups and replaced nearly 70 presidents. 1September 1982, under the pressure of domestic mass movements and worsening economic crisis, the military government was forced to hand over power ahead of schedule, and the democratic government was restored in the same year 10.

The current coalition government has inherited the macroeconomic reform policies of the previous government: believing in free market economy, decentralizing management power, privatizing state-owned property, tightening monetary control, and reducing poverty by promoting education and health. These decisions received a lot of support.

In April, 2000, because a water supply project plan that might raise water charges triggered political turmoil in Bolivia, the government declared a 90-day state of emergency on April 8, further intensifying the conflict.

2. Evaluation of economic and trade relations with China.

People's Republic of China (PRC) and Bolivia established diplomatic relations in 1985. 1988 165438+ The first bilateral mixed committee was held in La Paz, Bolivia in 10, and the second bilateral mixed committee was held in Beijing in March 1992. 1In May 1992, the Chinese and Bolivian governments signed the Trade Agreement between the Government of People's Republic of China (PRC) and the Government of Bolivia. The economic and trade relations between China and Bolivia have been strengthened and developed.

Non-governmental trade between China and Bolivia has a long history. In the 1960s, I exported hundreds of thousands of dollars to Bolivia every year, but I didn't import any. In the early 1980s, the bilateral trade volume between China and Bolivia increased rapidly, and I exported about $5 million to Bolivia every year. At the same time, due to my indirect import of cotton from Bolivia, the bilateral trade volume has reached more than 10 million US dollars. However, in recent years, due to Bolivia's economic difficulties, bilateral trade has declined. My exports to Bolivia mainly include: hardware, machinery and equipment, automobiles, tractors, light industry, textiles and daily necessities. My textiles are very popular in the Bolivian market, but I can buy very few goods. I haven't imported cotton from Bolivia since I stopped importing cotton.

In recent years, China has developed a series of mutually beneficial cooperation projects in Bolivia, and the business circles of both sides have also established some joint ventures.

3. Analysis and evaluation of policies to encourage foreign investment

From 1982, the military stopped its direct intervention in politics. Since then, the economic policies of successive Bolivian governments have tended to attract domestic and foreign investment and invest in urgently needed areas, so as to promote the development of the private sector and enable public investment to focus on the improvement of social public utilities and infrastructure. As a part of this reform measure, the 199 1 mining law has established a free policy for domestic and foreign companies in mineral exploration and mining licenses, as well as a more transparent tax system. Bolivia's new mining law requires land registration for mining to reduce troublesome land litigation. At the same time, the law clearly stipulates the environmental responsibility of miners and adopts a more transparent tax policy, which greatly encourages mineral exploration activities. According to this regulation, mining profits are subject to 25% income tax or 3% ~ 7% of gross income, whichever is higher. Mining royalties can offset income tax.

The Bolivian government passed the investment law 199 1 in February. The main contents of the Investment Law include: encouraging and protecting domestic and foreign investment, recognizing that foreign investors are treated equally with domestic investors in terms of rights, obligations and protection (the principle of national treatment), freedom of capital remittance and remittance, freedom of currency exchange, freedom of import and export, freedom of signing investment insurance contracts, freedom of dispute arbitration, allowing joint venture company contracts to be signed, and employers and employees can directly sign agreements to determine monthly wage income. According to relevant policies and regulations, foreign investors' foreign exchange remittance and remittance are not subject to any restrictions, and a simple fiscal and taxation system is established at a low tax rate. If a free trade zone is established and a factory is invested in the free trade zone, the capital of more than 200,000 US dollars will be exempted from tax for five years, including local tax and comprehensive tax, and the investment farm will be exempted from tax for a long time. The Bolivian government particularly welcomes investment that can provide employment opportunities.

The Bolivian government attaches great importance to the utilization of foreign capital. By the end of 1996, there were about 50 foreign mining companies operating mines in Bolivia, five times that of 1990. In recent years, the United States, European countries and Japan have successively invested in Bolivia. American investment in Bolivia is mainly concentrated in the fields of construction and mining, while European countries tend to invest in ecological environment and civil engineering, while Japanese investment is mainly concentrated in manufacturing and large-scale construction projects.

4. Business management policies

Bolivia has basically the same regulations for foreigners to set up joint stock limited companies, limited liability companies and foreign branches in the country. At the beginning of the establishment of a joint stock limited company, shareholders need to sign a legal contract, stating the company's relevant terms such as shareholder's name, address, company name, manager's name, capital structure, profit distribution clause, cooperation term, termination clause and dispute mediation measures, and then register with the competent department according to law. The establishment of a limited liability company requires a partnership contract, which is published in a newspaper or announced to the Ministry of Commerce. If foreign businessmen set up branches in Bolivia, they need to appoint a local representative to handle the establishment, operation and bankruptcy procedures like local companies.

Provisions on the establishment of foreign trade companies

To set up a representative office in Bolivia, the procedure is simple. Generally, it is only necessary to register the name, capital and legal address of the representative office with the competent department. Specifically, it includes the following aspects: ① the procedure of registering a company: register with the tax bureau and apply for the taxpayer's unique registration certificate; Registered in the local municipal government; Registered in the Trade and Stock Company Registry; Register with the corresponding chamber of commerce (voluntary). (2) Other documents to be prepared for the establishment of a wholly-owned or joint venture in Bolivia: documents approving the establishment of a domestic dispatched company; Articles of association, business license and business license of the domestic dispatched company; Power of attorney issued by the legal representative of the domestic company to the legal representative of the joint venture company; Domestic dispatched personnel have no criminal certificate and identity certificate; Professional title certificate of domestic dispatched personnel (voluntary), and other documents that the dispatching company thinks need to be prepared.

All the above documents must be translated into Spanish by a translation company, notarized in a notary office, certified by the Consular Department of the Ministry of Foreign Affairs, certified by the Bolivian Embassy in China, and re-certified by the Ministry of Foreign Affairs upon arrival in Bolivia.

After the above information is fully prepared, according to the relevant procedures for establishing a company in Bolivia, entrust an accounting firm officially opened in Bolivia to bid for the company.

Provisions on the application procedures for ordinary people to go to Bolivia for business visas

According to the mutual visa exemption agreement signed by the two governments, holders of diplomatic and official passports can be exempted from visas. Holding an ordinary or ordinary passport for business needs to go through visa and anti-visa procedures. Specifically, it includes the following aspects: ① Time required: you need to apply to the Bolivian Embassy in China 1 month in advance. Requirements: The name of the inviter, the company name, the applicant's date of birth, place of birth, industry unit and foreign identity should be indicated on the note or official letter. Provide invitations and phone calls. ③ Visa status: Bolivia generally issues one-time entry and exit visas valid for three months. Anyone who goes to a third country via Bolivia must apply for a visa. ④ countersigning procedures: the economic and trade delegation visiting Bolivia should fax its name, passport number, position, purpose of visiting Bolivia, duration of stay and application for countersigning to the Economic and Trade Counsellor's Office of our embassy in Bolivia in advance. On the basis of the above materials and the note of our embassy in Bolivia, the results will be notified to the Bolivian embassy in China in writing after being accepted and agreed by the Consular Department of the Bolivian Ministry of Foreign Affairs. Under normal circumstances, it takes about 20 days to countersign.

5. Tax system

Bolivia's tax policy is as follows:

VAT13%; The transaction tax is 3% of the turnover; The enterprise income tax is 25% of the profits in the annual financial accounts of the enterprise; Foreign beneficiary tax: 12.5% foreign beneficiary tax is paid when Polish income is remitted abroad; Mining surtax: mining enterprises no longer pay corporate profit tax, but pay mining surtax instead; Hydrocarbon compensation fee: the risk contract for oil and gas exploration, exploitation and sales stipulates the participation of Bolivian oil companies and the subsidy measures given to relevant departments. With the approval of the government, tax incentives can be provided by accelerating depreciation. Profits and dividends can be completely tax-free if they are reinvested in mining.

6. Financial and foreign exchange management system

Foreign exchange is freely convertible and remitted. Foreign investors are allowed to remit their profits, share transfers and other income abroad in freely convertible foreign exchange.

7. Foreign Trade Management and Policy

Restricted goods

Drugs that are not registered in Bolivia, sick animals, plants that carry bacteria or harmful parasites or are declared to contain toxic substances by the Ministry of Agriculture, foreign lottery tickets, waste fabrics, hemp ropes, textiles, toxic and radioactive mineral wastes, counterfeit money advertisements, bank bills, stamps or other valuable securities, except books that introduce coins and stamps.

Commodities that need to be submitted for approval in advance

Weapons, ammunition and related parts, explosives and explosives must be reported to the Ministry of National Defense for approval; Machines or instruments for manufacturing coins, stamps, securities and stocks, coins and banknotes must be reported to the Ministry of Finance for approval; Basic education courses must be reported to the Ministry of Education for approval; The transmitting and receiving devices, radar devices, helicopters and planes of radio stations and television stations shall be reported to the Ministry of Transport and the Ministry of Civil Aviation for approval; Narcotic drugs, drugs for treating nervous system diseases, alkaloids and their auxiliary drugs, which pose a threat to human body and environment or are toxic, shall be reported to the Ministry of Health for approval.

8. Tariff policy

Bolivia joined the GATT on September 8, 1990. In recent years, the Bolivian government has adopted a series of flexible trade policies, abolished the uniform provisions of tariffs, imposed export taxes on some products, and simplified export procedures. No license is required for the import of all kinds of goods, and the value-added tax is levied on the imported goods according to the CIF price of the goods. If the imported raw materials have paid import duties, they will be refunded after processing, manufacturing and exporting, and the use of local materials will not be restricted during the processing. Companies from all countries are encouraged to engage in processing with supplied materials, temporary bonded warehousing and wholesale business in Bolivia.

tariff

Bolivia's current unified tariff rate is 10%, the tax rate of books, periodicals and magazines is 2%, and the tax rate of capital goods is 5%.

bonded area

The industrial bonded zone, built in the area specially designated by the government, is fully enclosed and equipped with necessary infrastructure to carry out various production activities. The industrial bonded zone is mainly used for assembly and processing industries; The main function of the free trade zone is to store goods in a limited time, and at the same time, it can distribute the goods to Bolivia's domestic market.

9. Economic justice and arbitration system

Bolivian enterprises and individual residents are subject to the triple evils of market, corruption, crime and unpredictable judicial system, and the judicial system can hardly bring any traceable future.

Bolivia's judicial system is seriously inefficient, corrupt and faces political interference. In order for the new legislative and administrative bodies to operate more effectively, the judicial system must operate fairly and effectively. Bolivia has carried out necessary reforms, including legal education, improving judicial management and case flow management, and procedural reforms, including the development of an alternative out-of-court dispute mediation system. They also need to strengthen the criminal justice system to solve the growing crime and violence related to drug smuggling in the region.