EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
Acountryofopportunities
April 2014
1
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
ELSALVADOR
Ahuachapán
Santa
Ana
Chalatenango
Sonsonate San
Vicente
C...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
• Solid economic environment
• International view of El Salvador
• C...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
CentralAmericanMarket
Country
EL SALVADOR GUATEMALA HONDURAS NICARAG...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
Fringebenefits
represent 20.67% of nominal wage
* Effective since Ja...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
29.6
28.0
25.1
23.7
21.6
20.7
0 10 20 30
Costa Rica
Panama
El Salvad...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
ElSalvador
• Solid political & economic environment
• International ...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
InternationalviewofElSalvador
Index
El Salvador Guatemala Honduras N...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
ElSalvador
• Solid political & economic environment
• International ...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
LegalFramework
Investment Law
International
Services Law
Tourism Law...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
CommercialOpenness Access to a potential market of
1.2 billion peopl...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
Main Trade Partners*
Main Export Products*
Source: Central Reserve B...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
Main airlines serving
El Salvador
Strategic
Location
Main Freight Co...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
StrategicLocation
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
StrategicLocation
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
ElSalvador
• Solid political & economic environment
• International ...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
ForeignDirectInvestment
Stock 2013 USD 8,224.9 million (34% of GDP)
...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
Specialized Textiles and
Apparel
Aeronautics
Light ManufacturingEner...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador offers an aircraft
maintenance, repair and overhaul
(MRO...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador:
Quality in aircraft maintenance services
 Technical Un...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
For investors in agro industry and
entrepreneurs who seek a platform...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador:
A production and export platform
• El Salvador possesse...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador is an ideal destination for
companies wishing to do foot...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador:
An ideal platform for assembly and export of footwear
2...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador
Hub Energético y de Gas Natural
para la región CentroAme...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador:
Energy and Natural Gas hub for the CentralAmerican regi...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
International light
manufacturing companies will
find in El Salvador...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador:
A strategic partner in light manufacturing
• Strategic ...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
For offshore business service firms seeking
to enter markets in the ...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador:
Complementary strategic partner for multi-region operat...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador offers attractive
investment opportunities to
specialize...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador:
Specialized textile and apparel sector environment
• Mo...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador offers attractive tourism projects
in various stages of ...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador:
Variety of close-by touristic attractions
• Tax incenti...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador offers the opportunity to
invest in health establishment...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador:
Strategic location and excellent connectivity between t...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
 Information on investment opportunities in strategic industries, a...
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
Edificio D'Cor...
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El salvador country presentation april 2014

  1. 1. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR Acountryofopportunities April 2014 1
  2. 2. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR ELSALVADOR Ahuachapán Santa Ana Chalatenango Sonsonate San Vicente Cabañas La Paz La Libertad San Salvador Usulután San Miguel Morazán La Unión Gulf of Fonseca islands Capital San Salvador Official Language Spanish Area 21,041 Km2 / 8,124 sq mi Population 6.2 million (2012) GDP Nominal 24.2 billion USD (2013) Currency $USD Time Zone UTC -6 ElSalvador 2
  3. 3. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR • Solid economic environment • International view of El Salvador • Commercial openness & strategic location • Investment Opportunities in El Salvador ElSalvador 3
  4. 4. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR CentralAmericanMarket Country EL SALVADOR GUATEMALA HONDURAS NICARAGUA COSTA RICA PANAMA Central America Capital San Salvador Guatemala City Tegucigalpa Managua San Jose Panama City Official Language Spanish Spanish Spanish Spanish Spanish Spanish Area (‘000 Km2) 21.0 108.9 112.1 130.4 51.1 75.4 498.9 Population (‘000,000) 6.2 15.5 8.1 6.1 4.8 3.7 44.4 GDP PPP 2013 (Bn USD) 47.5 81.5 39.2 27.9 61.4 61.5 319.0 GDP per capita PPP (USD) 7,505 5,265 4,844 4,548 12,874 16,540 7,185 Average inflation rate 2009-2013 1.9% 3.9% 5.2% 6.4% 4.8% 4.4% Currency Dollar USD Quetzal GTQ Lempira HNL Cordoba NIO Colon SJC Dollar USD Time Zone UTC -6 UTC -6 UTC -6 UTC -6 UTC -6 UTC -5 Source: Multi –Purpose Household Survey, Central Reserve Banks, and IMF. 70% of the population and commerce concentrates in ES, GT, and HN. 4
  5. 5. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR Fringebenefits represent 20.67% of nominal wage * Effective since January 2014 ** Provision in case of termination of contract *** Applies to companies with more than 10 employees Source: Ministry of Labor El Salvador Sector Monthly Minimum Wage* Daily Wage Agriculture $ 113.70 $ 3.79 Maquila $ 202.80 $ 6.76 Industry $ 237.00 $ 7.90 Commerce & Services $ 242.40 $ 8.08 0% 20% 40% 60% 80% 100% 120% 140% 1 Nominal Wage 100% Fringe Benefits + Annual SeveranceProvision 29% Social Security (ISSS) 7.50% Retirement Fund (AFP) 6.75% 4.17% Annual Severance Provision** 8.33% Fringe benefits paid by the employer (20.67% of nominal wage) Christmas Bonus Vacations paid yearly 1.25% Training Fund (INSAFORP)*** 1.00% 5
  6. 6. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR 29.6 28.0 25.1 23.7 21.6 20.7 0 10 20 30 Costa Rica Panama El Salvador Nicaragua Honduras Guatemala M 23.7 F 26.6 EAP: 2,724,754 years YoungPopulation Average Age (Estimates) Source: Multi-Purpose Household Survey 2012, CIA World Factbook 6 0.0% 5.0% 10.0% 15.0% 0 - 4 5 - 9 10 - 14 15 - 19 20 - 24 25 - 29 30 - 34 35 - 39 40 - 44 45 - 49 50 - 54 55 - 59 60 - 64 65 - 69 >= 70 Female 52.8% 0.0%5.0%10.0%15.0% Male 47.2%
  7. 7. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR ElSalvador • Solid political & economic environment • International view of El Salvador • Commercial openness & strategic location • Investment Opportunities in El Salvador 7
  8. 8. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR InternationalviewofElSalvador Index El Salvador Guatemala Honduras Nicaragua Costa Rica Panama Human Development Index (2012) 107 133 120 129 62 59 Index of Economic Freedom (2014) 59 83 112 102 53 71 Ease of Doing Business (2014) 118 79 127 124 102 55 Freedom in the World (2013) Free Partially Free Partially Free Partially Free Free Free Global Competitiveness Report (2013-2014) • Global Competitiveness • Procedures to start a business • Infrastructure • Roads • Airports • Mobile Telephones • Taxes 97 88 72 58 56 31 61 86 129 78 90 71 32 85 111 135 115 114 97 102 80 99 88 105 79 99 107 132 54 129 76 125 57 42 125 40 47 37 48 5 4 89 8
  9. 9. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR ElSalvador • Solid political & economic environment • International view of El Salvador • Commercial openness & strategic location • Investment Opportunities in El Salvador 9
  10. 10. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR LegalFramework Investment Law International Services Law Tourism Law Free Zones Law • Equal treatment to national & international investors • Liberty to transfer funds and profits abroad • Access to local financing • Incentives to strategic sectors (contact centers, BPO’s, maintenance and repair of airplanes, logistics, etc.) • Total permanent tax exemptions (income and municipal taxes) and import duties. • Incentives to industrial activities • Tax exemptions (income, municipal taxes and real estate transfers) and import duties. • Requires minimum of USD 25,000 investment • Corporate tax exemption (income and municipal) • Real estate transfer and import tax exemptions Renewable Energy Incentives Law • Customs duties exemption on imports of machinery, equipment and materials • Income tax exemption for a period of 5 to 10 years • Total tax exemption on revenues from the sale of Certified Emission Reductions 10 Construction Projects Procedure Streamlining Law • Creation of a One-Stop-Office for the reception and processing of construction and land fragmentation project applications. • Development of a centralized computer system to track applications. • Publication of updated information about requirements, administrative procedures, criteria and environmental and cultural zoning. • Procedure streamlining (if a public authority does not resolve within the established deadlines, it shall be understood that the resolution has been issued in favor of the applicant).
  11. 11. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR CommercialOpenness Access to a potential market of 1.2 billion people 11
  12. 12. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR Main Trade Partners* Main Export Products* Source: Central Reserve Bank MainTrade Partnersand Export Products El Salvador Exports 2013 USD 7.6 billion Goods: USD 5.5 billion Services: USD 2.1 billion 12*The trade partners and export products´ share are calculated as a percentage of total goods exports . United States 45% Central America 38% Panama 2% México 2% Spain 1% Canada 1%Dominican Republic 1% Germany 1% Taiwan 1% Indonesia 1% Japan 1% Other 6% Apparel 40% Agroindustry 15% Food and beverages 8% Plastics and rubber 6% Paper products 5%Metal-mechanic Industry 5% Machinery and mechanical products 5% Textiles 5% Chemical products 5% Mineral products 3% Others 3%
  13. 13. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR Main airlines serving El Salvador Strategic Location Main Freight Companies Air Cargo • DHL • UPS • Arrow Regular charter flights Maritime • MAERSK • CROWLEY • MSC • SEABOARD • NIPPON • CSAV • APL • Hamburg Süd Close to key markets • Closeness to the vital maritime routes. • A natural bi-oceanic logistics corridor. • Container terminal ready for post panamax ships. • A dominant airport certified A1 by the FAA linking important cities. • Direct flights to 32 different destinations and excellent air traffic connections. (Montreal, Toronto) 13
  14. 14. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR StrategicLocation
  15. 15. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR StrategicLocation
  16. 16. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR ElSalvador • Solid political & economic environment • International view of El Salvador • Commercial openness & strategic location • Investment Opportunities in El Salvador 16
  17. 17. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR ForeignDirectInvestment Stock 2013 USD 8,224.9 million (34% of GDP) 17
  18. 18. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR Specialized Textiles and Apparel Aeronautics Light ManufacturingEnergy Offshore Business Services Tourism Agro-industry Medical Tourism Footwear InvestmentOpportunities 18 18
  19. 19. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR El Salvador offers an aircraft maintenance, repair and overhaul (MRO) industry for commercial aircraft, which has successfully placed the country on the global aviation map. The successful operations of Aeroman, a member of Canadian MRO group Aveos, are widely recognized within the emerging Latin American aeronautical clusters. Aeronautics Compliance with international certifications ensuring the highest quality required in aircraft maintenance services. 19
  20. 20. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR El Salvador: Quality in aircraft maintenance services  Technical Universities and Institutes have specialized curricula developed in conjunction with the private enterprise to ensure the availability of skilled labor.  In addition to maintenance services for commercial aircraft, a variety of other companies in the emerging aerospace clusters offer the following services: • R44 helicopter and corporate airplane maintenance. • Distribution and warehousing services for aircraft parts. • Component maintenance shops. • Ground Services. • Light sports aircraft (LSA) airframe, wing tip, and engine part manufacturing in composite materials, etc. • Aircraft harness system assembly. • Refurbishment on older Light Sports Aircraft (LSA) models.  A Free Trade Zone Law and an International Services Law which provides tax incentives to these types of industries  Available land for the development of industrial operations next door to the International Airport of El Salvador, under Public Private Partnership (PPP) mode. Investment Opportunities in Aeronautics: • Commercial aircraft maintenance service operations. • R44 helicopter maintenance operations. • Light Sports Aircraft (LSA) airframe part manufacturing. • Painting and maintenance of commercial aircraft interiors. 20
  21. 21. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR For investors in agro industry and entrepreneurs who seek a platform to produce and export, El Salvador offers attractive opportunities in the following sectors: • Fruit Farming • Aquaculture • Ornamental plant farming • Food & Beverages These sectors are highly favored by good weather and easy access to regional and international markets. Agroindustry Climate, tax incentives and a platform connected to additional markets. 21
  22. 22. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR El Salvador: A production and export platform • El Salvador possesses suitable climatic and soil conditions for fruit and ornamental plant farming. • Suitable soil and climatic conditions for the production of a wide variety of tropical fruits. • The country has optimal interconnections for the trade and transport of agro industrial products. • Availability of water resources for the sustainable development of aquaculture. • Negotiated trade agreements open the possibility for the sector to expand to regional and international markets. • Competitive labor costs. Investment Opportunities in Agro Industry: • Aquaculture Sector: Development of the production chain through the supply of young fingerlings, feed and other inputs to attain productivity and quality of aqua cultured products. • Fruit Farming Sector: Development of supporting industries for the provision of supplies, equipment, quality vegetative materials and processing technology for the expansion of crops of avocado, Persian lime, coconut and organic products. • Processed Foods Sector: Opportunities in the development of complementary industries in a sector in continuous growth in areas such as: packaging, process technology, machinery and equipment. 22
  23. 23. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR El Salvador is an ideal destination for companies wishing to do footwear manufacturing operations at competitive costs, and offers: FTAs with flexible rules of origin and preferential access conditions Attractive tax incentives, and A productive and young labor force El Salvador's commitment is to develop a vertically integrated production chain, ranging from the manufacture of components to the production of finished footwear. Logistics Easy and timely access to large markets. Footwear A platform to export to large markets.
  24. 24. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR El Salvador: An ideal platform for assembly and export of footwear 24 Sector opportunities • Manufacturing and production of footwear. • Assembling components of footwear. • Manufacturing of components and supplies footwear industry. Advantages: • The Free Zones Law offers attractive tax incentives to this type of manufacturing. • Availability of a competitive, productive and committed workforce. • There is a developed industry with over 50 years of experience and with the participation of foreign investors such as Nanyang Footwear, that already has assembly operations in the country. • The FTAs signed by El Salvador provide flexible rules of origin to facilitate the entry of this product in important markets: • The rule of origin issued by the United States allows the manufacturer to incorporate prefabricated components in third countries and access the market without tariffs. This rule of origin does not set a minimum requirement of value added. • The Association Agreement with the European Union gives free and immediate access to this market for footwear products manufactured in El Salvador. The rules of origin allow use of third-country raw materials and parts, and export the final product duty free. • The FTA with Mexico allows the aggregation principle to meet the requirement of 50% of nationalvalue added.
  25. 25. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR El Salvador Hub Energético y de Gas Natural para la región CentroAmericana 25 El Salvador offers an attractive platform of investment in the energy sector: • Market based on production costs • Bids based on long-term contracts • Investment opportunities in renewable energy • Clear rules under a legal framework that promotes the diversification of our energy matrix, at small and large scale • Attractive tax incentives for renewable energy investments • First country in Central America! That will include LNG as fuel resource in its energy matrix. Success story: First power plant of 355 MW of Natural Gas-based power generation. Energy El Salvador Energy and LNG Hub for the Central America Region
  26. 26. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR El Salvador: Energy and Natural Gas hub for the CentralAmerican region Installed capacity 1,547 MVA Hydro: 31 % / Geo: 13 % / Thermal (oil-based): 49 % Biomass: 7% Annual projected growth demand: 3.6 % National Energy policy: Oriented to diversify our current energy matrix, by developing and promoting renewable energies, and thus eliminate the dependence on petroleum-based thermal generation and strengthen the Central American energy integration. Available renewable resources: Wind, PV Solar and Thermal Solar, Geothermal, small hydroelectric power plants, Biogas, Biomass. Diversification oriented to: Natural gas, coal, and new technologies. Existence of a tax incentives law for the promotion of renewable energy Technical team of governmental inter-agency work in support of renewable energy investment. Electrical system network with installed capacity for strong expansions, SIEPAC Central American Electrical interconnection Grid with a transmission capacity of 300 MW. Available land available at Puerto La Unión. Master Plan for the development of renewable energy Investment opportunities in energy: • Bids based on long term contracts of up to 20 years • High potential for distributed generation projects • Potential in renewable natural resources: Hydroelectric: Projects less than 20 MW: 157 MW; Projects greater than 20 MW: 2,000 MW Biomass: 50 MW; Wind power: 72 MW; Geothermal : 330 - 400 MW; Solar photovoltaic : 5 Kwh/m2 or 6 hours sun
  27. 27. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR International light manufacturing companies will find in El Salvador a strategic partner to be used as a platform for export to markets in North America, Central America and the Caribbean. Light Manufacturing Strategic location, high productivity and quality at competitive costs 27
  28. 28. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR El Salvador: A strategic partner in light manufacturing • Strategic location in the center of the Americas to be used as a logistics platform • Free trade agreements with major markets • Free Zone Law offers tax incentives to this type of manufacturing. • Wide local supply chain in place in the areas of metalworking, plastics, support systems, automation systems, engineering, chemicals, among others. • Low operating costs • Highly-qualified human capital Investment Opportunities in light manufacturing: • Auto parts (harnesses, safety belts, inflators and modulators for airbags, shock absorbers, brake drums & rotors, etc.) • Medical devices (medical supplies, orthopedic products, hospital furniture, etc.) • Passive electronic components • El Salvador offers a successful platform for electronic component manufacturing, with over 30 years of proven credibility. The country has experience in the manufacture of ceramic and tantalum capacitors in compliance with required international standards. 28
  29. 29. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR For offshore business service firms seeking to enter markets in the U.S. and Spanish- speaking countries, El Salvador is a strategic partner for providing quality multi-region business services. Our dynamic business environment, strategic location for near-shoring, time- zone complementarity and the outstanding performance of our bilingual human resources (English/Spanish), makes us a strategic platform for companies offering global services. The modern and advanced local telecommunications infrastructure ensures the delivery of quality services and cost- effective location for this industry. Offshore Business Services Cost effective near-shore location, based on a state of the art telecommunications platform which guarantees your global offer. 29
  30. 30. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR El Salvador: Complementary strategic partner for multi-region operations • Strategic location in relation to English- and Spanish-speaking customers (shorter flight times from North and South America). • Same time zone for primary customers (U.S. and Canada) and Spanish-speaking markets (91% of the global Spanish-speaking population). • Time-zone complementarity for customers in Europe and Asia (24/7 possibility). • Friendly, hardworking and service-oriented people with neutral English and Spanish accents. • Exceptional performance against key indicators (KPIs) such as Sales, C-Sat, FCR, etc. • Complementary service to other geographical areas and high- end front-office services. • Young and committed workforce (60% of the population under 35 years). • Cultural affinity of the workforce with priority markets. Investment Opportunities in Offshore Business Services: • Voice Business Process Outsourcing (Call Centers) • Non-voice Business Processes Outsourcing (BPOs) • Shared Service Centers (KPOs) 30
  31. 31. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR El Salvador offers attractive investment opportunities to specialized textile and clothing companies wishing to enter the regional Central and North American markets based on the favorable tariff conditions of FTAs with the U.S. (CAFTA) and the European Union. El Salvador offers a vertically integrated industry, which promotes a competitive high-fashion, high- turnover garment manufacturing industry. Specialized Textiles and Apparel Vertically integrated industry with easy access to markets 31
  32. 32. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR El Salvador: Specialized textile and apparel sector environment • More than 260 textile and apparel companies have established themselves in the country, including internationally recognized companies such as Pettenati, George C. Moore, UNIFI, Swisstex, CS America and APS. • The rule of origin granted by the CAFTA-DR Free Trade Agreement allows free access for textiles manufactured in the region with yarn produced in Central America. • A cluster of companies that use synthetic fibers (nylon, polyester, micro fiber, among others –products paying a 32% tariff when imported from Asia through the U.S.) is in the process of consolidation. • The country offers a wide variety of services, including embroidery, industrial laundry, dyeing and finishing, cutting and packing, which have been a great support to the manufacturing operations of companies such as HBI, Fruit of the Loom, Adidas and Lacoste, among others. • The evolution of the manufacturing scheme from "maquila" to "full package" has developed the supply chain through materials distribution centers, required for vertical integration and sustainability of the industry. Investment Opportunities in Specialized Textiles and Apparel: • Manufacture of yarn and fabrics. • Manufacture of knitted garments with accessories and embellishments (embroidery, screen printing, heat transfers, etc.). • Manufacture of garments included in the “Single Transformation” category: bras, girl dresses, boxer shorts, sleepwear and luggage. 32
  33. 33. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR El Salvador offers attractive tourism projects in various stages of development that take advantage of a wide array of attractions located close to each other (surf spots, beaches, mountains, lakes, volcanoes). The country has a historical past inherited from the Maya, a pleasant climate all year round, competitive pricing of land, low construction costs and proximity to important markets of origin of international tourism. Tourism Surf, fishing, adventure tourism and the Maya world ... all in one place. 33
  34. 34. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR El Salvador: Variety of close-by touristic attractions • Tax incentives regulated by a Law on Tourism. • Foreign investors have the opportunity of acquiring property in their own name. • Competitively priced land and low construction costs. • Rapid access to a variety of tourist attractions. • Short flight times from North and South America. • The International Airport of El Salvador handles more than 470 arrivals and departures every week. • Pleasant climate all year round. • Warmth and friendliness in tourist service. Investment Opportunities in Tourism: • Mixed-use developments . • Hotels: Urban, Resort, Boutique, Bed & Breakfast, Eco-lodge, Hostels. • Vacation homes. • Properties with tourism potential • Marinas 34
  35. 35. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR El Salvador offers the opportunity to invest in health establishments catering to patients living in the U.S. and Canada, taking advantage of the geographical proximity to those markets, the low costs of health professionals and the fast connections between medical facilities and enviable landscape sites.. Medical Tourism Geographical proximity to the main countries of origin of medical tourism, offering quality services at low costs 35
  36. 36. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR El Salvador: Strategic location and excellent connectivity between touristic sites • The strategiclocation of El Salvador and the presence of TACA airline's hub in the countryprovide excellent air connectivityto the U.S. and Canada(2 hours from Miamiand 5 hours from Los Angelesby direct flight). • The best road infrastructurein the region allows visitingthe wide varietyof tourist attractionsthe country offersin a short time (beaches,lakes,volcanoes,colonial cities,etc.) . • The communityof Salvadoransabroad, about 2 million people, is A naturalmarket who constantlyvisitsthe countryand buys health treatmentslocally. • The existence of qualified medical professionalswho have earned postgraduatedegreesabroad offer their services at very competitivecosts. • There is a Law on InternationalServices thatencouragesthe establishmentof health centers. Investment Opportunities in Health Services: • Hospitals • Specialized clinics • Rehabilitation centers • Medical spas • Hospitals Resorts for treatment of chronic diseases. 36
  37. 37. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR  Information on investment opportunities in strategic industries, as well as of the incentives and investment advantages of those industries.  Statistics and customized industry information. Business opportunities  Organization, logistics and coordination of tailored agendas for visits to El Salvador.  Specialized support before, during and after the investment.  Assistance to potential investors in the generation of local business contacts.  Comprehensive support in procedures required to establish or expand business operations in the country. Advisoryand technical assistance Servicesprovidedtoinvestors Strategic information  Information on set-up and operational costs, regulations, availability of human capital, business climate and any other information required in the country evaluation process.  Personalized attention to specific enquiries. 37
  38. 38. EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR Edificio D'Cora Primer Nivel, Urb. Santa Elena, Antiguo Cuscatlán, La Libertad, El Salvador, C.A. www.proesa.gob.sv 38 @Proesa_sv inversiones@proesa.gob.sv +503 2241 6456  PROESA El Salvador

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