Over two-thirds of Portuguese firms in Brazil based in commerce, service sectors – report

28 December 2005

Lisbon, Portugal, 28 Dec – More than two-thirds of Portuguese firms doing business in Brazil are based in the commerce and service sectors, with the northeast of the Latin American state being most popular with investors from Portugal, according to a study released Wednesday.

Portugal’s state export agency, ICEP, says that 69 percent of the 666 Portuguese companies trading in Brazil are in commerce and services, including telecoms and IT, which account for the biggest Portuguese investments in Brazil.

Some 10 percent of companies from Portugal operate in the hotel sector, 9 percent in fishing and farming and 7 percent in Brazil’s construction industry, ICEP says.

Northeast Brazil is the most popular region for Portuguese firms to base their operations, followed by Sao Paulo and Rio de Janeiro.

Portuguese companies have invested nearly 11 billion euros in Brazil over the past few years and the country was the main destination for Lisbon’s direct foreign investment between 1996 and 2001 during privatization of energy and telecommunications sectors in Latin America’s biggest economy.

Both Portugal Telecom and the EDP power utility moved into Brazil during this period. (macau)