In a global context where economic stability and sustainability are increasingly valued, Chile is emerging as an attractive destination for foreign investment. According to recent data from the Central Bank, in the first half of 2024, the country received a net flow of US$8,432 million in foreign direct investment (FDI), which represents an increase of 20% over the average of the historical series (2003-2024).
Although this figure is 26% lower compared to the previous year due to a high base of comparison, it reflects the country's attractiveness for international investors. In this scenario, InvestChile's Director, Karla Flores, analyzed the country's values and comparative advantages and how institutional stability and leadership in key sectors position it as a reliable and strategic partner in the global arena.
What are Chile's main comparative advantages for attracting foreign investment?
Chile has clear strengths: institutional soundness, a clear commitment to fiscal responsibility and macroeconomic management, legal certainty and investment opportunities in high potential sectors, especially related to decarbonization and the digital revolution. We have demonstrated the ability to face and resolve challenges in an institutional and orderly manner, which is highly valued by foreign investors. In addition, as an Agency we have worked to better articulate the country's capabilities for a more efficient international promotion. Today we have opportunities in high potential sectors, such as critical minerals, technological infrastructure and green hydrogen.
Which Chilean areas or industries would have the best projections and why?
Chile is in a privileged position to offer investment opportunities that are key to face global challenges such as climate change and the digital revolution. Not only are we one of the most attractive emerging economies to invest in clean energy, but we also produce critical minerals for the energy transition, such as lithium and copper. In addition, we are on track to become the world's cheapest producer of green hydrogen by 2030. We are also a regional technology infrastructure hub and are committed to digital transformation and the development of the knowledge-based services sector.
If it's green hydrogen, the world starts with Chile
In a world increasingly focused on sustainability, how does Chile position itself as an attractive destination for sustainable investments?
Sustainability is a key factor for international investment. Chile has a privileged position to contribute to global problems related to climate change. For decades we have been the main copper producers worldwide and we have more than 40% of the global lithium reserves. We also possess optimal conditions to produce clean energy and fuels of the future. The level of our talent is also recognized regionally, enabling us to provide answers to global challenges.
In this context, what role does the green hydrogen market play and what specific actions are being carried out by InvestChile to promote it?
Green hydrogen represents a great opportunity for Chile, with an estimated potential to generate 200 billion dollars in investment and 100,000 new jobs over the next 20 years. This market has the potential to approach Chile's current main source of income, copper mining. InvestChile is working on US$15 billion in green hydrogen projects, mainly in the Magallanes region. Together with the Ministry of Energy, we are developing an international agenda to promote green hydrogen opportunities, including international roadshows, meetings with key actors and generation of specialized material.
A country brand as an asset
How do you evaluate Chile's institutional stability as a differentiating factor for foreign investors?
Institutional stability is a distinctive pillar of Chile. In a context of regional and global competition for foreign investment flows, being recognized as a country capable of solving its challenges in an institutional manner is very valuable. Despite the global decline in foreign investment flows in 2023, Chile's stability remains an important attraction for investors.
With a view to attracting more foreign investment, what actions do you think should be implemented to further strengthen the country brand?
Chile is already working to attract more foreign investment through a strategy that ranges from the subnational level to promotion offices abroad. It is crucial to highlight values such as democratic vocation, respect for human rights, macroeconomic seriousness and vocation for the future. The country brand must project Chile as a reliable partner committed to development.
Why is it important for Chile to have a Country Brand? How does the country brand contribute to attracting investment?
The country's image is fundamental to promote investment opportunities abroad. A positive reputation, such as the one Chile has built, is a valuable asset that we must take care of and strengthen. The country brand reflects Chile's seriousness, democracy and openness to the world, which allows us to face conversations with investors from a position of trust and credibility.
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