Multi-International Corporations Eying Panama

Multi-National Corporations Eyeing Panama

Story by La Prensa English Edition

Panama is seeking $1 billion in foreign investment from multinational corporations.

Companies from the United States, Singapore, Taiwan, Japan and Europe are looking at Panama as a possible site to expand their operations, according to officials with the Ministry of Commerce.

The ministry is currently reviewing proposals from a number of companies seeking to take advantage of a special program established in 2007 that offers incentives to companies opening offices in Panama. Currently, 23 companies have set up offices in Panama under the program.

Minister of Trade and Industry Roberto Henríquez said that he preferred not to release any details about the ongoing negotiations until they are complete. But he said that the government wants to attract $1 billion of foreign investment a year for the next five years.

One deal that is complete is the decision by General Electric to move its regional operations from Costa Rica to Panama. The company is currently considering sites in places such as Clayton and the former Howard Air Force Base. It has 225 employees at its Costa Rica office, but that number could expand when the headquarters are moved to Panama depending on factors such as the availability of qualified personnel.

The ministry is also working on reviving the project to establish an oil refinery off the coast of Colón, an initiative that seems to have fallen off the radar screen since it was announced a few years ago.

One way that Panama is promoting foreign investment is by streamlining the immigration process for foreign managers and investors of international companies locating here.

The government also plans to add staff members to its embassies in countries with which Panama has free trade agreements. These employees would be focused on ways to increase trade with those countries.

Adolfo Linares, president of the Chamber of Commerce, said that the government's attempts to lure international companies to the country should be supported as it will lead to a positive direction for the economy.