Brazil is a fascinating country – at the size of a continent - with an extraordinary diversity in geography, population, traditions, and heritage. It is the fifth largest country in the world, and the largest in South America, with a surface of over 8,5 million square kilometers – which is 200 times the size of the Netherlands and it spans 4 time zones.
Its 26 states enjoy a high degree of autonomy, each with their own regulations and business environments. This complexity presents challenges, but also tremendous opportunities with a youthful population and steadily increasing purchasing power.
Doing business in Brazil requires preparation, patience, and insight. As the saying goes, “Brazil is not for beginners.” But we believe that nothing is impossible for well-prepared and determined minds equipped with the right information and support.
Doing Business in Brazil
Before starting to do business in Brazil, it is important to consider the cultural gap between Brazil and The Netherlands. The Brazilian complexity such as the government and legal system, the political uncertainty, compliance, and corruption, are also key elements to keep in mind before entering the market.
However, no Dutch company has to navigate Brazil alone — with the many experienced Dutch businesses, local specialists, and a powerful local network, challenges turn into opportunities and ambitions into achievements.
At Dutcham, we have decades of experience in helping companies from the Netherlands navigate the Brazilian market. We offer you not only insights, but also access to a trusted network of multinational firms, SMEs, entrepreneurs, and local service providers. Key sectors such as agriculture, energy, and life sciences & health offer tangible opportunities for Dutch businesses of all sizes.
Cultural Insights
Brazilians are proud of Brazil, always try to highlight the positive side and never stop to be optimistic. Many Brazilians draw energy and motivation from the idea of a brighter tomorrow.
Hierarchy, class, and status play important roles in Brazilian society. Personal relationships are highly important in Brazil, and this is reflected in the fact that Brazilians mix personal and professional life to a high degree.
Brazilians are creative and more resistant to contrariety since they often experienced difficult economic circumstances. This creativity is directly related to having dealt with high uncertainty and economic instability in its history. Flexibility is the Brazilian remedy to near future problems. Punctuality however is a relative concept in Brazil. Especially for Dutch nationals the Brazilian notion of time is quite different than what they are used to.
Brazilians are not very direct in their communication. There is a lot of ‘reading between the lines’. Direct communication might come off as being aggressive in Brazil.
The country's challenges
Brazil has faced significant challenges related to corruption and bureaucratic inefficiencies. Significant progress has been made in recent years. Public demand for transparency and accountability has intensified, placing increasing pressure on institutions to modernize.
Brazil remains one of the most unequal countries in the world in terms of income and wealth distribution, poverty remains a pressing challenge. Lack of education is an often-heard comment on Brazilian society. Since Brazil invested little in education, public education’s standards dropped, and the middle class moved their children to private schools. Overall, the standard of public health care in Brazil is fair. The Unified Health System (SUS), is managed and provided by all levels of government, being the largest system of this type in the world. On the other hand, private healthcare systems play a complementary role. Over the years, labor productivity in Brazil has remained stagnant—and at times, has even declined— especially when compared to other emerging and developed economies. Reforms on infrastructure, business environment and financing systems are essential to increase productivity and competitiveness for the future.
While Brazil is Latin America’s largest economy, its infrastructure still presents significant bottlenecks that impact logistics, productivity, and competitiveness. Public safety in Brazil faces several challenges, ranging from high crime rates to structural problems in the police force. Urban violence, organized crime, and corruption are issues that require ongoing attention and innovative strategies to be effectively combated.
Land of opportunities
Brazil is the fifth largest country in the world and the largest in South America. Its economy is the world’s ninth largest and the biggest in Latin America. It is diverse and robust, with sectors like services, industry, tourism, and agriculture playing crucial roles in its economic stability and growth. Brazil is a leader in renewable energy with solar and wind energy being the most prominent.
The Dutch private sector can play a leading role in all these sectors, with its strong presence and expertise in innovation, technology, and sustainability.
Brazil’s membership in Mercosur at the same time, provides access to a larger market and enhances its position as a base for regional expansion.
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