Continued economic deterioration during the government of Porfirio Lobo has led businessmen to prefer the leftist opposition candidate over the ruling party man.
An article in Elnuevoherald.com reports that Adolfo Facussé, president of the National Association of Manufacturers, said that the current government "... is an economic disaster, giving out money in political campaigns, increasing public administration and making unnecessary tenders which are not very transparent".
Harassment and a business climate of animosity in the country has forced 25 Honduran companies migrate to Mexico and Nicaragua.
Latribuna.hn reports that "15 of them moved to Nicaragua and the rest to Mexico to the Yucatan area, because they have found better conditions to invest and grow, therefore, the National Association of Industrialists (ANDI), is anlaysing setting up branches in these places in order to continue serving its members. "
They point to the mining potential as a decisive factor for the country’s development, having the capacity to attract investments of $14 billion.
An article in Tiempo.hn reports that "The National Association of Industrialists (ANDI) is urging the National Congress to approve the new Mining Act in order to attract foreign investment in the order of 280 billion lempiras, about $14 billion.
Amid complaints of government harassment of private enterprise, its noted that in Nicaragua the costs are lower and "there are not too many obstacles."
Given some recent actions and tax proposals by the government of Honduras that have note been well received by employers due to their potential impact on business competitiveness, the president of the National Association of Industrialists (ANDI), Adolfo Facussé, is advising entrepreneurs to invest in neighboring countries, pointing in particular to Nicaragua.
The president of the National Association of Manufacturers, Adolfo Facussé, reportedly stated that the owner of the tobacco company informed him that they will move their operations to Nicaragua.
According to Wendy Mejia in her article in Elheraldo.hn, the cigar factory, located in the department of El Paraíso, is one of the largest in the country, currently employing 1,500 people, who would become unemployed if this move goes ahead.
Some companies are moving their offices to other countries in the region and others are abandoning the idea of settling up in the country because of insecurity.
So said the president of the Chamber of Commerce and Industry of Tegucigalpa (CCIT), Aline Flores, in light of the revival of agrarian conflict in the Lower Aguán region, requesting swift action by the government.
High operating costs and the lack of modernization are making Puerto Cortes lose competitiveness against the Guatemalan terminal.
Angel Vargas, president of the Honduran Federation of Customs (Fenaduanah), noted that Salvadoran exporters, who would find it more convenient to operate in Puerto Cortes, are opting for the terminal in Guatemala because of its better operating costs. Vargas added, "... the Guatemalan ports have acquired better equipment than Puerto Cortés."
Employers are not opposing the tax, but say that its adoption should be supervised by the private enterprise.
Adolfo Facussé, president of the National Association of Industrialists (ANDI), said they have not been consulted on the implementation of the tax, to which they are not opposed, but argue that resources should be managed by private enterprise.
U.S. suspension of visa services will affect business climate, remarked Honduran business and producers.
Considering that over 50% of the country's exports go to the U.S., Enrique Núñez, president of the National Small and Medium Industry Association, remarked: "The visa issue has a very negative effect, especially because it affects the purchase of raw materials, necessary for productive processes in small and medium industries".
The reduction of the legal reserves to zero percent that was adopted by the Central Bank of Honduras does not guarantee resources for small businesses.
When the Central Bank lowers the interest rates so that more resources are available in the market, this money does not reach the small producer, but goes to banks which do not lend to small producers because they have no guarantees, bank accounts or profit and loss statements and are therefore excluded from these benefits, the president of the Association of National Industries (ANDI), Adolfo Facusse, lamented.
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