export and investment promotion agency of el salvador 1 a country of opportunities december 2012
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EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
1
A country of opportunitiesDecember 2012
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador
Ahuachapán
Santa Ana
Chalatenango
Sonsonate
SanVicent
e
Cabañas
La Paz
LaLiberta
d
SanSalvado
r
Usulután
San Miguel
Morazán
LaUnión
Cuscatlán
Gulf of Fonseca islands
Capital San Salvador
Official Language Spanish
Area 21,041 Km2 / 8,124 sq mi
Population 6.2 million (2011)
GDP Nominal (2011) 23,054 million USD (2011)
Currency $USD
Time Zone UTC -6
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
• Solid political & economic environment
• International view of El Salvador
• Commercial openness & strategic location
• Foreign direct investment in El Salvador
El Salvador
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
4
Political StabilityMore than 25 years of free and democratic elections
• Balance of power in congress
LegislativeAssembly
• Alternating governancePD
C
AREN
A
FMLN
Presidential election: % of votes for Presidential Candidate of winning partySource: Supreme Electoral Court of El Salvador (TSE ).
President for 5 year term with no possible consecutive reelection
1 chamber with 84 seats for 3 year terms
March 2012 Congress election results, seats won by each party
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
Central American Market
Country
EL SALVADOR GUATEMALA HONDURAS NICARAGUA COSTA RICA PANAMA
Central America
Capital San Salvador Guatemala City Tegucigalpa Managua San Jose Panama City
Official Language Spanish Spanish Spanish Spanish Spanish Spanish
Area (‘000 Km2) 21.0 108.9 112.1 130.4 51.1 75.4 498.9
Population (‘000,000) 6.2 14.7 8.0 5.8 4.6 3.5 42.8
GDP PPP (Bn US$) 2011 44.6 74.8 35.7 18.9 55 50.6 279.6
GDP per capita PPP (US$) 7,550 5,079 4,444 3,206 11,923 14,096 6,533
Average Inflation rate 2010-2011 3.6% 5.8% 6.0% 8.6% 5.3% 5.6%
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.
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
Fringe benefits represent 27.61% of nominal wage
* Effective since May ** 2011 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 $ 105.00 $ 3.50
Maquila $ 187.50 $ 6.25
Industry $ 219.30 $ 7.31
Commerce & Services $ 224.10 $ 7.47
NominalWage100%
Fringe Benefits27.61%
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
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M 23.4
F 26.2
EAP: 2,641,133
years
Young Population
Average Age(Estimates)
Source: Multi-Purpose Household Survey 2011, CIA World Factbook
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador
• Solid political & economic environment
• International view of El Salvador
• Commercial openness & strategic location
• Foreign direct investment in El Salvador
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
International view of El Salvador
IndexEl Salvador Guatemala Honduras Nicaragua Costa Rica Panama
Human Development Index
(2011)105 131 121 129 69 58
Index of Economic Freedom (2012)
41 82 93 101 44 55
Ease of Doing Business (2013) 113 93 125 119 110 61
Freedom in the World(2012)
Free Partially Free
Partially Free
Partially Free Free Free
Global Competitiveness
Index (2012 – 2013)Infrastructure
RoadsAirportsEnergy
Mobile TelephonesTaxes
101665242703756
83679158672379
90979271
1067992
1081067590
100108130
5795
131604294
119
4044496
432
96
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador
• Solid political & economic environment
• International view of El Salvador
• Commercial openness & strategic location
• Foreign direct investment in El Salvador
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
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Legal Framework
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• Total permanent taxes exemption (income and municipal
taxes) and import duties.
• Incentives to industrial activities• Total permanent taxes exemption (income and municipal
taxes) and import duties.
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
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
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Commercial Openness Access to a potential market of 1,200 million people
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
Main Trade Partners
Main Export Products
Source: Central Reserve Bank
Main Trade Partners and Export Products
El Salvador Exports 2011USD 5,308.8 million
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
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Main airlines serving El Salvador
Strategic Location
Main Freight Companies
Air Cargo•DHL•UPS•Arrow
Regular charter flights
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.
(Montreal, Toronto)
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
Strategic Location
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
Strategic Location
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador
• Solid political & economic environment
• International view of El Salvador
• Commercial openness & strategic location
• Foreign direct investment in El Salvador
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
Foreign Direct InvestmentStock 2011 USD 8,141 million (35.3 % of GDP)
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
Specialized Textiles Aeronautics Electronics Medical Devices
Offshore Business Services Health Services
Tourism Agro-industry Logistics and Infrastructure Footwear
Investment Opportunities
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.
AeronauticsCompliance with international certifications ensuring the highest quality required in aircraft maintenance services.
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador: Quality in aircraft maintenance services
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.
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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.
AgroindustryClimate, tax incentives and a platform
connected to additional markets.
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador: A production and export platform
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.
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
International medical device
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.
Medical DevicesRapid access to markets
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador: A strategic partner in medical devices
Investment Opportunities in Medical Devices:• Disposable laboratory and diagnostic equipment.
• Hospital linen and disposable clothing.
• Hospital furniture.
• Orthopedic products.
• Packing and packaging of disposable medical devices.
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
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. This has enabled the country to acquire and
implement state-of-the-art technology and know-how.
The high quality, efficiency and productivity of
operations in El Salvador have ensured the transfer of manufacturing plants from
England, the Czech Republic, Mexico, China and the U.S., achieving continued expansion
in all processes.
ElectronicsHigh productivity and quality manufacturing at competitive costs.
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador: A platform for electronic components manufacturing
Investment Opportunities in Electronics:• Electronic component manufacturing and production.
• Electronic equipment and parts assembly.
• Cell phone electronic component repair.
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 ServicesCost effective near-shore location, based on a state of the art
telecommunications platform which guarantees your global offer.
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador: Complementary strategic partner for multi-region operations
Investment Opportunities in Offshore Business Services:• Voice Business Process Outsourcing (Call Centers)
• Non-voice Business Processes Outsourcing (BPOs)
• Shared Service Centers (KPOs)
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..
Health ServicesGeographical proximity to the main countries of origin of
medical tourism, offering quality services at low costs
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador: Strategic location and excellent connectivity between touristic sites
Investment Opportunities in Health Services:• Hospitals
• Specialized clinics
• Rehabilitation centers
• Medical spas
• Hospitals Resorts for treatment of chronic diseases.
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 ApparelVertically integrated industry with easy access to markets
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador: Specialized textile and apparel sector environment
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.
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.
TourismSurf, fishing, adventure tourism and the
Maya world ... all in one place.
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador: Variety of close-by touristic attractions
Investment Opportunities in Tourism:• Mixed-use developments .
• Hotels: Urban, Resort, Boutique, Bed & Breakfast, Eco-lodge, Hostels.
• Vacation homes.
• Properties with tourism potential
• Marinas
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
For companies producing consumer
goods seeking to sell to larger markets,
El Salvador, the ‘logistics hub of Central
America,’ provides air and seaport zones
with tax incentives for manufacturing,
logistics and distribution, becoming a
gateway to U.S., Asian and European
markets.
El Salvador has the infrastructure,
geographical proximity and free trade
agreements to ensure easy and timely
access to large markets.
LogisticsEasy and timely access to large markets.
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador: Strategically located and available infrastructure
Investment Opportunities in Logistics:• Logistics activity zones in the proximity of seaports.
• Airport logistics center
• Distribution centers
Puerto de Acajutla, located in Sonsonate Puerto La Unión, located in La Unión
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
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For companies producing footwear
seeking to sell to larger markets, El
Salvador, the ‘logistics hub of Central
America,’ provides air and seaport zones
with tax incentives for manufacturing,
logistics and distribution, becoming a
gateway to U.S., Asian and European
markets.
El Salvador has the infrastructure,
geographical proximity and free trade
agreements to ensure easy and timely
access to large markets.
LogisticsEasy and timely access to large markets.
FootwearA platform to export to large markets.
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
Began in the city of Santa Ana with local artisans.
El Salvador:
Footwear Industry Currently: Big companies as ADOC, DURAMAS, CARICIA, GARBAL,
exports to United States, Central America and The Caribbean, Europe and Asia.
16 small enterprises, primarily produce to the Salvadoran market.
390 handicraft workshops producing for the small and large companies located in San Salvador and Santa Ana.
ASPC: Salvadoran Association of Footwear Producers with 125 companies of La Libertad, La Paz, La Unión, San Vicente and San Salvador.
2011 Exports: US $42 million (12% annual growth
over the last 6 years -2005/2011-). El Salvador has the 26th position as a
footwear supplier of the United States. El Salvador exports to the US market grew 28% in 2011. Source: USITC
The Imports grew by 23% compared to 2010 (US $106 million) and 9% annually in the last 6 years.
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
Services provided by PROESA
Information on the business climate, economic factors, set-up and operational costs, regulations, availability of human capital and any other information required in the early stages of the evaluation process.
Personalized attention to specific enquiries.
Informationand Advisory
Facilitates the evaluation process of the country by offering:
Advises international companies on investment opportunities in El Salvador by providing:
Information on investment opportunities in strategic industries, as well as incentives and investment advantages of those industries.
Statistics and customized industry information.
Works to identify contacts and locations for international investors through: Finding of specific locations and sites for each project. Facilitating contacts of potential partners, government institutions and
providers of goods and services including legal, financial, customs, real estate, among others.
Organization and coordination of customized site visits to El Salvador.
Assists potential and established investors with: Integral support on procedures required to establish or expand business
operations in the country.
Establishment and Expansion
Assistance
Business Opportunities
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADORTEL +503 2246 6400
Edificio D'Cora Primer Nivel, Urb. Santa Elena, Antiguo Cuscatlán, La Libertad, El Salvador, C.A.
www.proesa.gob.sv
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