An estimated $300 million has been invested between January and November 2015 by companies operating under the free zone incentive scheme, which are focused on the textile industry mainly in the manufacture of harnesses, production of tobacco and more recently, services such as call centers.

"... Alvaro Baltodano, technical secretary of the National Commission of Free Zones (CNZF) and presidential delegate for investments, said that in recent years the free zone regime has been promoting economic development. 'The challenge going forward will be to design new strategies and one of them is to vertically diversify the textile industry, promoting development of production chains.' "

Baltodano said in an article on Elnuevodiario.com.ni that "... the aim is to diversify economic activities entering international markets with a variety of agribusiness products, 'because our country provides the right conditions for their development, [products] such as shrimp, ornamental plants, among other things. Also, expanding into new business opportunities in the auto parts, medical products and footwear, among other 'sector. "

Source: elnuevodiario.com.ni

More on this topic

Textile School for Free Trade Zones

June 2014

In Nicaragua a proposal has been made to create a training center to improve the labor performance in free zones and attract more foreign investment to the sector.

In order to improve employees skills and increase the productivity and competitiveness of enterprises, the National Commission of Free Zones (CNZF) is proposing the creation of a textile school, where ongoing training on production techniques would be provided for the sector.

More and More Free Zones in Nicaragua

February 2013

With a record $2.207 billion in exports last year in 2012, the nation aims to continue growing its free zone regime, both in terms of the number of companies and volume of exports.

Beyond having obtained these successful figures, the aim is to attract more businesses and diversify economic activities.

Free Zones in Nicaragua Growing

March 2012

The growth is reflected in the steady growth in employment in production firms operating under the regime, which together exceed 100 thousand jobs.

The number of employees in factories in free zones reached 103,000 people in March, a record for the sector in Nicaragua, said Alvaro Baltodano, President of the National Free Zone Commission, CNZF. There are 68,019 employees in the textile sector alone.

El Salvador: New Law on Free Zones Delayed

August 2011

There is a growing demand for textiles and clothes manufacturing, but a new Law on Free Zones is needed in order to bring fresh investments to this sector.

The World Trade Organization (WTO) has determined, after two extensions, the country should, in 2015, replace the law that has been in force since 1998, which grants tax benefits such as a total and permanent exemption from taxes, among others.