As of June 2012 the amount of FDI attracted by the country fell by 52% compared to the same period last year.
According to information from the Central Reserve Bank and the Agency for Investment Promotion and Export of El Salvador (Proesa), from January to June 2012 FDI was $116 million, while in the same period of 2011 it reached $242.2 million.
"In the view of ex vicepresident of the Republic, Ana Vilma de Escobar, El Salvador still has the capacity to attract investors, but the problem is that the government does not understand the impact of this variable in the economy.
Twenty-Seven Salvadoran food companies have allied to reach the United States under a single label.
With support from the Salvadoran Export Promotion Agency (EXPORTA), food classified as "ethnic" or "nostalgic" is being successfully exported to states like New York, New Jersey, Washington, Virginia and Maryland.
There were $242 million worth of this type of food exported to the world in 2008.
With an investment of less than $1 million, the Wallenius Wilhelmsen Logistics Company began operations in the country.
The company, which specializes in BPO (Business Process Outsourcing), has 30 job openings and it expects to have a staff of 50 people by the end of the year.
Laprensagrafica.com reported statements from John Felitto, executive vice president of Wallenius Wilhelmsen Logistics: "Installation investment has been for less than $1 million, but we expect to inject more funds into the training of human capital. Wallenius Wilhelmsen Logistics has a presence in 80 countries around the world, including Brazil, Argentina, Colombia, Venezuela and Panama."
Mediterranean Shipping Company (MSC) expects to attract between 10% and 12% of the Salvadoran market in its first year of operation.
The company plans to move 50 to 60 thousand containers per year, focusing on routes to Asia, Mexico and South America.
MSC manager Jose Bodewing indicated in an Elsalvador.com article that around 20 to 25 thousand dollars are moved for each docking a ship makes, so the shipping business will generate over 120 indirect jobs because they hire transport, warehousing, port services and others."
A recent trade mission did $2 million in business in software and call center services, and found strong interest in other areas such as medical services.
The delegation from the Export Promotion Agency (PROESA), headed by Vice President Ana Vilma de Escobar, found good business prospects in India for the Salvadoran service sector, mainly in the area of call centers, software development and distribution, medicine and medical services, in transactions that would include training for Salvadorans in the Asian country.
The president of Proesa, on tour in India, met with the second largest manufacturer and exporter of software in the country, INFOSYS Technology.
Elsalvador.com reports: "It is one of the largest information technologies (IT) companies in India, with nine development centers in India, more than 100,000 employees and more than thirty global offices. The vice-president highlighted the private initiatives already functioning in the field of software development and which can begin a relationship with Infosys."
The Association of Medical Tourism (ATM) of the United States is in the country accompanied by tour operators to learn about medical possibilities.
Elsalvador.com publishes in its website: “...the work of promoting medical services is encouraged by institutions such as: Cámara de Exportadores de Servicios de Salud de El Salvador (Exportsalud), Agencia de Promoción de Exportaciones de El Salvador (Exporta), Agencia de Promoción de Inversiones (Proesa) and the Ministerio de Turismo (Mitur)."
In the month of January, investment management activity in the country decreased by 30% in comparison to the same month in 2008.
Laprensagrafica.com publishes: "The president of PROESA, Ana Vilma de Escobar, indicated further that textiles is one of the sectors most affected by the difficult economic environment in part based on the fact that several stores in the United States have closed due to lower demand.
The government will send the bill to the Legislative Assembly with a proposal for 90% of the shares to be owned by foreign investors and 10% by the State.
According to elsalvador.com: "The completed La Union Port will be turned over to President Elias Saca next Wednesday. That same day he will send the draft legislation for the concession of the port to the Legislative Assembly.
Transactel, a corporation with Guatemalan and Salvadoran capital, made an investment of $2 million in the new center of operations.
Elsalvador.com reports that "In his speech, the Transactel CEO said that they were proud to inaugurate the second center of operations which will provide jobs to an initial 450 bilingual employees, especially young people between 20 and 24 years, thereby contributing to the economic development of the country.
During the last 15 years, foreign investment rose only with the sale of banks and privatizations.
In 2007 $494.8 million entered the country compared to the $189.9 this year.
The reason for the drastic reduction in FDI is simple. In 2007 the sale of Salvadoran banks were completed, causing the investments to increase disproportionately compared to investments in 2006.
For vice president Ana Vilma de Escobar, it will be difficult to consider the port concession again due to the political situation.
"I think we are at the point where recognize that international operators are willing to do business with the country, however we are in the middle of an electoral season and this makes its harder to discuss the project," Escobar said.
Everything appears to indicate that the port system will be granted in a public/private concession, said Ana Vilma de Escobar, Vice-president of the Republic.
"The idea is to seek a public/private association, where the State will provide the least possible amount, since we are talking about $1 billion in investment over 25 years... as we do not have to capacity to provide this amount," she added.
The Government is evaluating a public-private design for the operation of the country's port system.
"What is clear is that there must be a concession, although at the moment a master concession is not supported," Ana Vilma de Escobar, vice-president of the Republic, admitted. She has been in charge of promoting the concession of the La Union port and the Acajutla port to international companies.
Yesterday the Vice-president of the Republic headed the first meeting of the committee established to analyze the future concession process for the Salvadoran port system.
The schedule established by the Autonomous Executive Port Commission to grant concessions for the ports of Acajutla and La Union is being delayed due to the refusal of some lawmakers to approve the Government’s proposal.
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