In Guatemala, a Korean business group plans to invest in the start-up of a fabric factory in the municipality of Villa Nueva.
The fabrics that will be manufactured in the new industrial plant will be specialized and will supply other factories in the region, informed authorities and businessmen of the sector.
According to directors of the Garment and Textile Commission (Vestex), Korean businessmen interested in investing have already visited industrial parks in the country to learn about the operations of other factories.
From January to September 2019, the country received $671 million in foreign direct investment, 6% more than in the same period in 2018.
Figures from the Bank of Guatemala show that between the first nine months of 2018 and the same period in 2019, foreign direct investment (FDI) that reached the country increased by $39 million, from $671 million to $632 million.
During the first half of this year, it is expected to implement in Guatemala the single window for the facilitation of imports, which would operate through an electronic platform.
The Ministry of Economy reported that to implement the single window, there is already a working group in which representatives of the productive sector and authorities of the portfolios of Health and Agriculture to agree.
The plan proposed by the Morales administration to increase the country's competitiveness focuses on the development of forestry, agriculture, textiles, clothing and footwear, metalworking, light manufacturing, tourism and construction, among other things.
Authorities at the National Program for Competitiveness -Pronacom- presented guidelines for the National Competitiveness Policy 2018-2032. This set of strategies, which aims to establish guidelines on competitiveness at the national and regional level for the next 15 years, was developed jointly by the productive sector, public sector, academia and civil society.
In Guatemala, four bills are being prepared to facilitate registration of one-person companies, export and import of goods and to regulate bankruptcy of a company.
The goal of the National Competitiveness Program (Pronacom) is to implement a series of measures to help improve the country's deteriorating business climate, which, in addition to being affected by political problems, continues to face the serious problem of excessive bureaucracy.Pronacom is working on four bills that it plans to present next year.
A tender for a feasibility study to modernize Guatemala City airport was annulled because of alleged non conformities, and will be convened anew.
The process was canceled by the National Competitiveness Program (Pronacom), and although no specific details are recorded on the Guatecompras website, a series of non conformity issues raised by some of the participating companies may be the reason for the decision to cancel.See details of thetender.
The Government aims to create Proguate, an entity that will focus on attracting foreign investment and implementing a competitiveness strategy.
The Guatemalan government aims to create an agency to promote investment in the country. Proguate will focus on designing a brand for the country in order to attract foreign investment and implement a competitiveness strategy.
The new site, Asisehace.gt, provides information on starting a business, paying taxes, licenses, staffing and social security matters, among other things.
From a press release by the Ministry of Economy in Guatemala (Mineco):
The Minister of Economy, Sergio de la Torre, and the Presidential Commissioner for Competitiveness and Investment, Juan Carlos Paiz, presented the system asisehace.gt, an initiative by the National Competitiveness Program (Pronacom) run by the Ministry of Economy.
Among the changes requested by the Guatemalan private sector, are the elimination of insurance for theft of goods in transit and the current billing method.
Private sector representatives together with the Tax Authority (SAT) are working on a draft for a new law, which introduces changes to almost 80% of the current Customs Act.
"... The American Chamber of Commerce has asked for changes to the billing method prescribed in current law, which provides for the entry of the net price of the merchandise. It opposed the $250 fines for invoices that do not comply with the new format, and also severe measures such as the suspension of customs agents. It is alsoagainst criminalizing a shipment arriving which is, for example, 5 percent over weight or over value", reports Elperiodico.com. gt.
In Guatemala, legislative barriers are delaying 3 loan approvals for infrastructure, competitiveness and development.
Three loans totaling $179 million are in danger of being lost due to delays in Congress in approving the loans, despite having them on the agenda.
One is for $29 million for a National Programme for Competitiveness (Pronacom), which is on the verge of collapse due to lack of funds, reports El Diario de Centro America.
In the 80's, feasibility studies, essential guides to the interest of investors, were not carried out.
The lack of feasibility analysis is affecting investment flows coming into the country, as many investors are withdrawing from participating in projects where there are no feasibility studies.
This not only affects the attraction of investments, but also the potential for banks to finance the projects, because they also need to rely on feasibility analysis for their decision making.
According to the country's agency responsible for encouraging foreign direct investment (FDI), the agro-industrial sector is the most promising and important.
Fanny Estrada, director of the Guatemalan Exporters’ Association (AGEXPORT), commented that in several cases, "while demand exists for a product there is insufficient supply capacity," and added that, "there is potential to increase output in these areas".
The objective is to provide unified direction to the different public and private efforts in trade and investment promotion.
The new entity could be named Guatemala Trade and Investment (GTI), and would coordinate the activities of Invest in Guatemala, the national competitiveness program (PRONACOM), and the Commercial Attachés (PACIT), through an executive committee composed by members of the public and private sector.
Poor roads and complex bureaucracy reduce the markets in Central American cities.
The term “local market” was created in China to refer to the consumers which can be reached in eight hours in a truck loaded with products, including all the paperwork necessary.
According to an article by Louisa Reynolds on Elperiodico.com.gt, under this definition, the “local market” of Guatemala City includes San Salvador, but not other important cities like San Pedro Sula and Tegucigalpa (which take 12-14 hours to reach), Managua (18 hours) and San Jose (26 hours).
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