Transcript Presentacion Pais ES Eng Apr 2013

A country of opportunities
April 2013
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EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador
Capital
San Salvador
Official Language
Spanish
Area
21,041 Km2 / 8,124 sq mi
Population
6.2 million (2011)
GDP Nominal (2012)
23,787 million USD (2012)
Currency
$USD
Time Zone
UTC -6
Chalatenango
Santa
Ana
Cabañas
Ahuachapán
EL SALVADOR
San
Salvador
Sonsonate
La
Libertad
La Paz
Morazán
San
Vicente
Usulután
San
Miguel
La
Unión
Gulf of
Fonseca
islands
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EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador
• Solid political & economic environment
• International view of El Salvador
• Commercial openness & strategic location
• Investment Opportunities in El Salvador
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EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
Central American Market
Central
America
Country
EL SALVADOR
GUATEMALA
HONDURAS
NICARAGUA
COSTA RICA
PANAMA
San Salvador
Guatemala City
Tegucigalpa
Managua
San Jose
Panama City
Spanish
Spanish
Spanish
Spanish
Spanish
Spanish
Area (‘000 Km2)
21.0
108.9
112.1
130.4
51.1
75.4
498.9
Population (‘000,000)
6.2
14.7
8.0
5.8
4.6
3.5
42.8
GDP PPP (Bn US$) 2011
44.6
74.8
35.7
18.9
55.0
50.6
279.6
GDP per capita PPP (US$)
7,550
5,079
4,444
3,206
11,923
14,096
6,533
Average inflation rate
2007-2011
3.5%
5.9%
6.9%
9.8%
7.9%
5.3%
Currency
Dollar
USD
Quetzal
GTQ
Lempira
HNL
Cordoba
NIO
Colon
SJC
Dollar
USD
Time Zone
UTC -6
UTC -6
UTC -6
UTC -6
UTC -6
UTC -5
Capital
Official Language
70% of the population and commerce
concentrates in ES, GT, and HN.
Source: Multi –Purpose Household Survey,
Central Reserve Banks, and IMF.
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EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
Fringe benefits
represent 19.28% of nominal wage
140%
Fringe Benefits + Annual
Severance Provision
27.61%
120%
Sector
Monthly
Minimum Wage*
Daily Wage
100%
Agriculture
$ 105.00
$ 3.50
80%
Maquila
$ 187.50
$ 6.25
Industry
$ 219.30
$ 7.31
Commerce & Services
$ 224.10
$ 7.47
60%
Nominal
Wage
100%
40%
20%
0%
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Fringe benefits paid by the employer (19.28% of nominal wage)
Social Security (ISSS)
7.50%
Retirement Fund
(AFP)
6.75%
Christmas
Bonus
* Effective since May 2011
** Provision in case of termination of contract
*** Applies to companies with more than 10 employees
Source: Ministry of Labor El Salvador
Annual Severance
Provision**
8.33%
2.78%
Training Fund
(INSAFORP)***
1.00%
Vacations paid yearly
1.25%
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
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Young Population
Male
47.7%
Female
52.3%
Average Age
(Estimates)
>= 70
65 - 69
60 - 64
55 - 59
50 - 54
45 - 49
40 - 44
35 - 39
30 - 34
25 - 29
20 - 24
15 - 19
10 - 14
5-9
0-4
10.0%
5.0%
0.0%
20.4 years
Guatemala
Honduras
21.3
Nicaragua
23.4
El Salvador
24.7
M 23.4
F 26.2
0.0%
5.0%
Panama
27.8
Costa Rica
29.2
10.0%
0
10
20
EAP: 2,641,133
Source: Multi-Purpose Household Survey 2011, CIA World Factbook
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
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El Salvador
•
Solid political & economic environment
•
International view of El Salvador
•
Commercial openness & strategic location
•
Investment Opportunities in El Salvador
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EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
International view of El Salvador
Index
El Salvador
Guatemala
Honduras
Nicaragua
Costa Rica
Panama
Human
Development Index
(2012)
107
133
120
129
62
59
Index of Economic
Freedom (2013)
53
85
96
110
49
71
Ease of Doing
Business (2013)
113
93
125
119
110
61
Freedom in the
World
(2013)
Free
Partially
Free
Partially
Free
Partially
Free
Free
Free
101
66
52
42
70
37
56
83
67
91
58
67
23
79
90
97
92
71
106
79
92
108
106
75
90
100
108
130
57
95
131
60
42
94
119
40
44
49
6
43
2
96
Global
Competitiveness
Index (2012 – 2013)
Infrastructure
Roads
Airports
Energy
Mobile Telephones
Taxes
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
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El Salvador
•
Solid political & economic environment
•
International view of El Salvador
•
Commercial openness & strategic location
•
Investment Opportunities in El Salvador
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EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
Legal Framework
• Equal treatment to national & international investors
Investment Law
• Liberty to transfer funds and profits abroad
• Access to local financing
International
Services Law
Free Zones Law
• Incentives to strategic sectors (contact centers, BPO’s,
maintenance and repair of airplanes, logistics, etc.)
• Total permanent tax exemptions (income and municipal taxes) and
import duties.
• Incentives to industrial activities
• Tax exemptions (income, municipal taxes and real estate
transfers) and import duties.
• Incentives to industrial activities
Tourism Law
• Total permanent taxes exemption (income and municipal
taxes) and import duties.
Renewable
Energy
Incentives Law
• Customs duties exemption on imports of machinery, equipment and
materials
• Income tax exemption for a period of 5 to 10 years
• Total tax exemption on revenues from the sale of Certified Emission
Reductions
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EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
Commercial Openness
Access to a potential market of
1,200 million people
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EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
Main Trade Partners and Export Products
Main Trade Partners
United States
46%
El Salvador Exports 2012
USD 5,339.1 million
Others
5%
Japan
1%
Chile
1%
Canada
Central America
38%
1%
Germany Spain
1%
1%
Mexico
Dominican
2%
Republic
Panama
2%
2%
Main Export Products
Apparel
37%
Agroindustry
16%
Food and
beverages
8%
Others
5%
Mineral
products
4%
Textiles
4%
Chemical products
5%
Machinery and Metal-mechanic
mechanical
industry
products
5%
5%
Source: Central Reserve Bank
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
Plastics and rubber
6%
Paper products
5%
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Balance of Trade El Salvador - Taiwan
Main Export Product
Sugar: US$23.5 Million
(Jan-Feb 2013)
200.0
150.0
139.8
Main Import Product
PET: US$16.25 Million
119.2
87.5
100.0
US$ MILLIONS
157.4
97.8
(Jan-Feb 2013)
33.4
50.0
8.0
14.8
14.7
7.8
25.4
24.8
33.1
1.8
0.0
-50.0
-100.0
-150.0
Exports
Imports
Balance
2008
2009
2010
2011
2012
8.0
119.2
-111.2
14.8
87.5
-72.7
14.7
97.8
-83.1
33.4
139.8
-106.4
7.8
157.4
-149.7
Jan-Feb
2012
1.8
25.4
-23.7
Jan-Feb
2013
24.8
33.1
-8.3
Source: Central Reserve Bank
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EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
Strategic
Location
Close to key markets
•
•
•
•
•
Closeness to the vital maritime
routes.
A natural bi-oceanic logistics
corridor.
Container terminal ready for
post panamax ships.
A dominant airport certified A1
by the FAA linking important
cities.
Direct flights to 33 different
destinations and excellent air
traffic connections.
Main airlines serving
El Salvador
Main Freight Companies
Air Cargo
Maritime
• DHL
• UPS
• Arrow
•
•
•
•
MAERSK
CROWLEY
MSC
SEABOARD
•
•
•
•
NIPPON
CSAV
APL
Hamburg Süd
Regular charter
flights
(Montreal, Toronto)
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EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
Strategic Location
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
Strategic Location
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador
•
Solid political & economic environment
•
International view of El Salvador
•
Commercial openness & strategic location
•
Investment Opportunities in El Salvador
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EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
Foreign Direct Investment
Stock 2012 USD 8,634.9 million (36.3 % of GDP)
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EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
Taiwan - Foreign Direct Investment
Stock 2012 US$19.1 Million
Number of companies from Taiwan
More than 40
MAIN SECTORS
2012
Alexander Segovia, Technical Secretary to the President of El Salvador,
and Ko-Chien Chu, General Manager of Speedtech Energy, 2012
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
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Source:
Central Reserve
Bank & ONI
Investment Opportunities
Specialized Textiles
Aeronautics
Medical Devices
Offshore Business Services
Tourism
Agro-industry
Electronics
Health Services
Logistics and Infrastructure
Footwear
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EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
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El Salvador offers a successful platform for
electronic component manufacturing, with
over 30 years of proven credibility. The
country has experience in the manufacture of
ceramic and tantalum capacitors in
compliance with required international
standards.
This has enabled the country to acquire and
implement state-of-the-art technology and
know-how.
The high quality, efficiency and productivity
of operations in El Salvador have ensured the
transfer of manufacturing plants from
England, the Czech Republic, Mexico, China
and the U.S., achieving continued expansion
in all processes.
Electronics
High productivity and quality manufacturing at competitive costs.
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EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador:
A platform for electronic components manufacturing
• Setting of strategic alliances with academia to ensure availability
of skilled workforce.
• Existence of a Law on Free Zones offering tax incentives to this
type of manufacturing.
• E-cluster in formation around the AVX Kyocera Company in El
Salvador.
• The best international airport in the region just 35 minutes from
San Salvador, and 2.5 hours from Miami.
• Wide local supply chain in place in the areas of metalworking,
plastics, support systems, automation systems, engineering,
transport and chemicals, among others.
• Available land for the development of industrial operations next
door to the International Airport of El Salvador under Public
Private Partnership (PPP) mode.
• Electrical network system with strong capacity for expansion.
Investment Opportunities in Electronics:
• Electronic component manufacturing and production.
• Electronic equipment and parts assembly.
• Cell phone electronic component repair.
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
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El Salvador offers an aircraft
maintenance, repair and overhaul
(MRO) industry for commercial aircraft,
which has successfully placed the
country on the global aviation map.
The successful operations of Aeroman,
a member of Canadian MRO group
Aveos, are widely recognized within the
emerging Latin American aeronautical
clusters.
Aeronautics
Compliance with international certifications ensuring the
highest quality required in aircraft maintenance services.
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EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
For offshore business service firms seeking
to enter markets in the U.S. and Spanishspeaking countries, El Salvador is a strategic
partner for providing quality multi-region
business services.
Our dynamic business environment,
strategic location for near-shoring, timezone complementarity and the outstanding
performance of our bilingual human
resources (English/Spanish), makes us a
strategic platform for companies offering
global services.
The modern and advanced local
telecommunications infrastructure ensures
the delivery of quality services and costeffective location for this industry.
Offshore Business Services
Cost effective near-shore location, based on a state of the art
telecommunications platform which guarantees your global offer.
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EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
For companies producing footwear
seeking to sell to larger markets, El
Salvador, the ‘logistics hub of Central
America,’ provides air and seaport zones
with tax incentives for manufacturing,
logistics and distribution, becoming a
gateway to U.S., Asian and European
markets.
El Salvador has the infrastructure,
geographical proximity and free trade
agreements to ensure easy and timely
access to large markets.
Logistics
Footwear
Easy to
andexport
timely access
to large
markets..
A platform
to large
markets
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EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador offers attractive
investment opportunities to
specialized textile and clothing
companies wishing to enter the
regional Central and North American
markets based on the favorable tariff
conditions of FTAs with the U.S.
(CAFTA) and the European Union.
El Salvador offers a vertically
integrated industry, which promotes a
competitive high-fashion, highturnover garment manufacturing
industry.
Specialized Textiles and Apparel
Vertically integrated industry with easy access to markets
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EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
For investors in agro industry and
entrepreneurs who seek a platform to
produce and export, El Salvador offers
attractive opportunities in the following
sectors:
• Fruit Farming
• Aquaculture
• Ornamental plant farming
• Food & Beverages
These sectors are highly favored by
good weather and easy access to
regional and international markets.
Agroindustry
Climate, tax incentives and a platform connected
to additional markets.
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EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
International medical device
manufacturing companies will
find in El Salvador a strategic
partner to be used as a
platform for export to markets
in North America, Central
America and the Caribbean.
Medical Devices
Rapid access to markets
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EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador offers the opportunity to
invest in health establishments
catering to patients living in the U.S.
and Canada, taking advantage of the
geographical proximity to those
markets, the low costs of health
professionals and the fast connections
between medical facilities and
enviable landscape sites..
Health Services
Geographical proximity to the main countries of origin of medical
tourism, offering quality services at low costs
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EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
El Salvador offers attractive tourism projects
in various stages of development that take
advantage of a wide array of attractions
located close to each other (surf spots,
beaches, mountains, lakes, volcanoes).
The country has a historical past inherited
from the Maya, a pleasant climate all year
round, competitive pricing of land, low
construction costs and proximity to
important markets of origin of international
tourism.
Tourism
Surf, fishing, adventure tourism and the
Maya world ... all in one place.
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EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
For companies producing consumer
goods seeking to sell to larger markets,
El Salvador, the ‘logistics hub of Central
America,’ provides air and seaport zones
with tax incentives for manufacturing,
logistics and distribution, becoming a
gateway to U.S., Asian and European
markets.
El Salvador has the infrastructure,
geographical proximity and free trade
agreements to ensure easy and timely
access to large markets.
Logistics
Easy and timely access to large markets.
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EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
Services provided by PROESA
Business
opportunities
 Information on investment opportunities in strategic industries, as well as of
the incentives and investment advantages of those industries.
 Statistics and customized industry information.
Strategic
information
 Information on set-up and operational costs, regulations, availability of human
capital, business climate and any other information required in the country
evaluation process.
 Personalized attention to specific enquiries.
Advisory and
technical
assistance
 Organization, logistics and coordination of tailored agendas for visits to El
Salvador. Specialized support before, during and after commercial and
recognition visits.
 Assistance to potential investors in the generation of local business contacts.
 Comprehensive support in procedures required to establish or expand
business operations in the country.
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EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
www.proesa.gob.sv
EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR
TEL +503 2241 6400
Edificio D'Cora Primer Nivel, Urb. Santa Elena, Antiguo Cuscatlán, La Libertad, El Salvador, C.A.
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EXPORT AND INVESTMENT PROMOTION AGENCY OF EL SALVADOR