Holland House, the Dutch Chamber of Commerce in Panama, has produced a report for Dutch companies interested in expanding their operations in Panama as a port of entry to Central America and the region.

The development of new technological businesses in industries such as maritime, logistics, health, fintech, and government sector operations in Panama is the focus of the study "Digital Tech Sector in Panama, Business Opportunities for Dutch Companies."

Remco de Bruijn, author of the study highlighted that Dutch technology investment in Panama increased 29% in 2020 (the last year available), which has been a clear sign that Dutch companies see Panama's potential as a digital hub for the region.

“Panama is a small country, but it is big in logistics and banking, two sectors that are crying out for a digital transformation to stay competitive. These are two sectors in which Dutch technology companies can offer next-generation digital solutions,” says De Bruijn, who is managing director of Digitude SA in Panama.

He details that the Netherlands is one of the largest investors in Panama. ICT or information technology is the second largest investment sector for Dutch companies and it is growing.

Dutch technology companies such as Dutch VR, Elsevier Health, Ibis Management, and WEM are already doing business in Panama.

The study sees digital transformation as a key strategy to improve the competitiveness of the Canal and its ports.

It points out that the Canal plans to invest $500 million in projects that use new technologies (sensors, artificial intelligence, and virtual and reality augmented reality) to improve efficiency. There is also interest in also supporting ports where there is a need to improve information systems, real-time tracking and tracing, security solutions for ports, green technology, big data and cybersecurity solutions.

“Panama has an excellent physical infrastructure with tax and labor incentives to host Dutch technology companies, such as the City of Knowledge Technology Park. From here you can conquer the Panamanian market with high purchasing power. And it can be used as a hub to venture further into other Latin American markets,” highlights de Bruijn.