What makes San-José in Costa-Rica, one of the 15 best cities in the world for foreign investment?

What makes San-José in Costa-Rica, one of the 15 best cities in the world for foreign investment? 

 According to Fortune, San-José city, the Costa-Rica capital, is ranked among the 15 best cities in the world for foreign investment, based on a survey that interviewed executives about their prospective office, plant, subsidiary implementation abroad. Why foreign businessman should go to Costa-Rica?

 Costa-Rica is known as one of the most successful countries in Latin America in attracting manufacturing FDI, comparing to major emerging economies in the region such as Brazil, Argentina, Mexico. FDI have been increased in the country dramatically from 2006 to 2008 by 100% according to Datamonitor. Manufacturing is the most important sector and then high-tech that include medical equipment. Manufacturing sector include also textile, clothing, plastic. Government trade policies promote export which corresponds to the main source for country growth with textile and electronic equipment as leading commodities and the US, the major trade partner.

 To boost its competitive advantage the government has committed in a free-zone reform that grant foreign businessman attractive benefit. The free-zone is a restricted zone without any resident population and a minimum of $150,000 initial fix assets is required for establishing investment inside the zone, outside it is higher. Among the most welcomed firms are those working in assembling for export and export trade for re-export, service industries, support service companies, park –managing companies, scientific research firms involving in enhancing technology level of industry.

 Summarizing, benefit foreign businessman can gain in entering to Costa-Rica range up to all these facets:
1. Tax incentive: income tax exemption for significant employment increase contribution and establishing in rural areas; low income tax payment and differed payment.
2. Access to US market, particularly for textile, clothing product that gain advantage from US free-trade agreement with Central America countries; and specifically US apparel product assembling in those countries can reenter duty-free in the US.
 3. Highly developed manufacturing sector with a variety of sub-sectors or product type: electronic, textile, clothing etc…
4. Skilled workforce because government has been committed in sustainable policies and important expenditures toward education.
5. Also the financial sector is well developed to support various foreign investment needs (Insurance, investment banking and other business financing, mortgage bank, pension funds, house-building companies etc…)