With the global economic scenario becoming increasingly competitive, several Brazilian states have adopted the strategy of creating business offices abroad. These offices play a crucial role in promoting local exports and attracting foreign investment, in addition to facilitating networking with potential international partners. But what are the strategies behind these initiatives and how have they impacted regional development? Find out in this week's article.
What are state business offices abroad?
Some Brazilian states have established commercial representation offices in major global hubs such as New York, London and Shanghai. These offices function as an extension of state governments abroad, aiming to promote the state as an attractive destination for investment and a competitive source of exports.
These structures aim to:
- Facilitate the entry of local products into global markets;
- Attract investors to strategic sectors of the states;
- Promote commercial and technological partnerships;
- Strengthen the institutional and economic image of the state abroad.
Successful strategies and success stories
São Paulo and the office in Shanghai, China
The state of São Paulo, one of Brazil’s leaders in innovation and exports, opened its Shanghai office in 2019. The office was designed to expand the state’s presence in the Asian market, facilitating negotiations in areas such as technology, infrastructure and agribusiness. In its first two years of operation, the São Paulo office assisted in more than 200 commercial partnerships and bilateral cooperation projects, generating significant investments in the technology and agribusiness sectors.
According to the government of the state of São Paulo, in 2021 alone, the office brokered US$1.4T 500 million in new investments and exports to Asia.
Piauí and its international offices
The state of Piauí, as part of its internationalization strategy, opened three offices abroad in 2023: in Lisbon (Portugal), Boston (USA), and Tallinn (Estonia). These offices were created to attract foreign investment, strengthen commercial ties, and promote innovation in strategic sectors such as tourism, health, and education. With these initiatives, Piauí seeks to expand its global operations and establish partnerships that can foster the state's economic growth.
The challenges faced by these offices
Despite the success of many initiatives, state business offices abroad face significant challenges:
Bureaucracy and lack of national coordination: Although states act independently, the lack of an integrated strategy with the federal government can generate disagreements and make it difficult to align trade policies.
Budgetary limitations: The continued funding of these offices is a hurdle for many states. Maintaining an international operation requires robust financial resources, as well as qualified professionals to serve in these missions.
Culture and language: Cultural differences and language barriers still pose considerable challenges for states seeking to expand their commercial operations abroad, especially in complex markets such as Asia and the United States.
Opportunities and the future of these initiatives
As Brazil seeks to strengthen its position as an attractive investment destination and improve its trade balance, state business offices abroad will continue to be a key component of regional development. In addition to São Paulo and Piauí, other states such as Minas Gerais and Rio Grande do Sul have stood out with similar strategies, expanding their exports of industrial and agricultural products.
For Brazilian states, internationalization is a promising path to diversify their economies and attract new investments. However, the success of these initiatives depends on efficient coordination between state governments and their international counterparts. With greater coordination, financing, and adaptation to global market dynamics, state business offices abroad can consolidate Brazil as an even more competitive player on the international stage.
At Bring Consulting, we help Brazilian states and companies identify and implement strategies to expand their global operations and attract investment. Want to know how our expertise can boost your results? Contact us and discover the opportunities we can create together!
