With the reform proposal to the Law of Free Zones presented to Congress, it is intended to reduce from 20 to 10 the requirements that must be met to approve a new free zone.
After several months of working on the proposal to make changes to the law, the file was submitted to the legislative chamber and prepared by the Honduran Maquiladora Association (AHM), the Ministry of Finance, the Central Bank of Honduras and the Ministry of Economic Development (SDE).
The business sector and executive authorities are working on a proposal for reforms to the Law of Free Zones of Puerto Cortés, a project that aims to expand existing incentives for this regime.
The modifications that will be discussed in next week's mobile congress in San Pedro Sula seek to reform decrees 1, 2, 3, 12, 16 and 22 of the Free Zone Law of Puerto Cortés.
In Honduras, the goal that companies in the sector have set is to create 15,000 jobs in 2018, and the number of posts generated from January to August adds up to 11,234.
According to figures from the Honduran Maquila Association (AHM) at the end of 2017 the number of positions in companies in the sector totaled 145,595, and the goal they have set is to end 2018 with 160,000 people working in maquilas.
In Honduras, the union of maquiladoras reported that in June 2018 jobs in the sector totaled 151,667, 4% more than those reported in December 2017.
During the first half of the year, the Honduran Maquila Association (AHM) recorded an increase of 6,072 jobs, rising from 145,595 at the end of 2017 to 151,667 at June 2018.
The Honduran government has announced that from 11 to 15 March, a delegation of investors from South Korea will be visiting the country to assess business opportunities under the new FTA with Central America.
Authorities from the Ministry of Economic Development explained that in addition to investors from South Korea, the arrival of Taiwanese businessmen is also expected. This group plans to arrive in the country on March 15, and they will be interested in exploring business opportunities in sectors such as agroindustry, floristry and tourism.
Nine days after the presidential elections in Honduras an official winner has still not been announced, and the business sector estimates that the losses caused by looting, violence and paralyzed activities amount to $50 million a day.
Blockades in the main roads of the country, demonstrations, looting of businesses and widespread violence is what can be seen in some areas of Honduras, eight days after the disputed presidential elections.
The union of maquila companies estimates that this year exports will grow 10% compared to 2016, reaching $4.5 billion, driven by increased demand in the United States.
According to the Honduran Maquiladora Association (AHM), in 2016 exports of textiles and clothing were worth close to $4.1 billion, and this year it is hoped the figure will go up to $4.5 billion.
Until December 7 a group of businessmen and investors will be in the country to meet with local businesses and explore business opportunities.
The trade mission was organized by the government of Honduras, after having participated last month on a tour of the Asian country to promote the arrival of more Taiwanese investment in the country.
The maquila industry approves of the government's decision to apply for formal admission into the agreement, which would improve conditions for textile companies competing with countries like Vietnam.
The Honduran Maquila Association (AHM) is one of the unions in the country which is most interested in being part of the trade union agreement, because the United States is the main destination for its production, and where textiles also come from countries that are already part of the agreement, such as Vietnam.
80% of the volume exported by the Honduran maquila sector in the first half of 2014 corresponds to textiles, 15% to harnesses, and the remaining 5% to other goods.
A report by the Central Bank of Honduras (BCH) specifies that when comparing the figure for the first half of this year with the same period of 2013, "... A slight increase of $8.2 million is observed. "
Textile entrepreneurs anticipate an increase in Canadian investment once the trade agreement with this country takes effect on October 1st, 2014.
Daniel Facussé, president of the Honduran Maquila Association reported that "... representatives of three Canadian companies visited the country and showed interest in investing in maquila and buying sportswear.
In March this year, the textile and manufacturing industries, including the manufacturers of wire harnesses and garments, grew by 3% compared to the same period in 2013.
A report by the Office of Textiles and Apparel (OTEXA), at the International Trade Administration of the United States, details the recent performance of the maquila industry in Honduras and locates the country as the fourth largest producer of fabrics in the world.
The maquila industry and the Honduran government have agreed on an innovative formula that enables funding of $90 million to be used to install a fifth turbine at El Cajon dam.
The government and industry have agreed to work together in favor of the economy. With an investment of $90 million for the maquila industry a fifth turbine will start operating at El Cajon dam, which will increase its generation capacity by 75MW.
In Honduras there are plans to develop free zones to attract companies from El Salvador who have shown their fears about the business climate in the country.
Several Salvadoran companies have shown fear over the FMLN party winning the presidential election for the second time. Aware of the concerns of Salvadorans regarding the business climate in the Central American nation, Hondurans are working on attracting those companies.
Companies from the sector are consolidating their operations in plants in order to improve production efficiency.
The President of the Honduran Maquila Association, Daniel Facussé, announced that the purpose of the relocation is to become more competitive, following a system already used in other companies in different sectors.
Moreover he added that "the aim is not to have plants scattered all over, but rather to have them all in one place, because it is much more economical for production"
español
3485
