Mexican entrepreneurs are looking for investment opportunities in Honduras.

Tegucigalpa, May 2018. A Mexican business mission from the State of Jalisco visited Honduras in search of investment opportunities and commercial exchange within the framework of the Honduras 20/20 program. The purpose of the business meeting was to strengthen commercial ties and increase business opportunities between both countries.

The business mission of entrepreneurs of the state of Jalisco was integrated by Mexican investors representing financial sectors, pharmaceuticals, agrifood industry, vehicle assemblers, among others.
These businessmen were received by public sector officials and representatives of the private sector, which was headed by Honduras 20/20, visiting several companies during their visit in order to present the country’s business opportunities

“The business mission has had very satisfactory preliminary results with an excellent reception, we carried out the international promotion to attract investment to Honduras, as we promote investment there will be job creation.” Expressed Peter Fleming, executive director of Honduras 20/20.

The Honduran delegates presented in depth to Jalisco entrepreneurs the legal framework to invest in Honduras, the Free Trade Agreement between Central America and Mexico, the macroeconomic situation of the country, special and fiscal regimes, as well as the progress in security matters, show the dynamic economy of the country.

“In this effort to diversify markets, Central America is a great opportunity for us in particular Honduras because of its geographical position, its port that is very important, the port of Puerto Cortés, to sell not only in Honduras but to establish a commercial relationship with the rest of Central America based in the country. ” Mentioned Miguel Landeros, president of COMCE (Mexican Business Council of Foreign Trade).

The Mexican delegation participated in a business conference, with the idea of establishing direct links with their Honduran counterparts. The business agenda of Jalisco continued in Roatán, where the advantages of the tourism sector were detailed.

Honduras launches new attractive Tourism Promotion Law to foster investment

Tegucigalpa, MDC, August 17, 2017 – As an outcome of the Honduras2020 program, several public and private sector institutions accompanied President Juan Orlando Hernández in the approval act of the new Tourism Promotion Law, submitted by the National Congress with attractive benefits to detonate investment and employment in the tourism sector of Honduras.

Honduras set itself, the task of innovating country incentives to the investor, thus achieving the goal of 250,000 jobs in that sector, an additional 1 million tourists annually and double the amount of tourism exports for the national economy, proposed in the Honduras2020 Program.

The country lacked the right conditions to attract investment in the sector. Despite being one of the Central American countries with the most varied tourism offer with an enormous wealth of natural resources, its level of growth in this sector is barely 0.5% comparing to the rest of the region whose average annual growth reaches levels up to of 7%.

Several institutions joined forces to materialize the new legal framework for the promotion of tourism, including the private public partnership Honduras2020, the Honduran Tourism Institute (IHT), the Honduras National Tourism Chamber (Canaturh), the Honduran Business Council (Cohep) and the Honduran Business Association of Small Hotels, among other institutions and businessmen from all over the nation, who presented to the Congress the law.

This law, which was approved by President Juan Orlando Hernández, includes a package of attractive incentives for local and international investment and at the same time ensures a profitable fiscal benefits over time. It also becomes an important instrument to generate new sustainable jobs through the investment expected over the next few years.

Part of the characteristics of the Tourism Law are:

  • Equal treatment to motivate small, medium and large Honduran and foreign entrepreneurs to invest in the tourism sector of Honduras.
  • A new legal framework for existing companies that make additional new investments for more than 35% of their initial investment.
  • Fiscal stability agreements
  • Incentives for the investment of natural or legal persons
  • Fund to support land and air transportation companies in tourism.
  • Possibility of setting up investment trust funds
  • Special provisions on municipal permits and taxes
  • Fund for Investment, Promotion and Promotion to Tourism (FITUR) with concessional conditions
  • Investor obligations

It is important to mention that the tourism promotion law guarantees a substantial return to the incentives provided, which is achieved – among others – by:

  • Sales tax collection for lodging, purchase of food and alcoholic beverages, recreation and others
  • Income tax / Sales tax collection paid from the hotel suppliers
  • Sales tax collection increase for consumption of workers generated from new jobs
  • Tourism Service Fee collection

Estimates suggest that additional tax revenues of approximately US $ 4 billion over the next 18 years could be achieved using a 60% hotel occupancy model.

This law is part of a larger strategy that will make the tourism sector a pillar of real growth to improve the quality of life of thousands of Hondurans. Which includes customer service training programs for the workforce and the necessary hotel, entertainment and urban infrastructure to compete as a world class tourist destination.

In addition, functionaries from Honduras2020 announced that there are already national and international investors are interested in investing in Honduras from the opportunities that this new Tourism Promotion Law will create, which will announce new investments and new sources of employment in the coming months.

More information:

  • Honduran Tourism Institute (IHT)
  • Honduras National Tourism Chamber (CANATURH)
Fotografìa Cortesía de David Waimin

VENTU: a new mixed infrastructure project in southern Tegucigalpa

Tegucigalpa, March 2nd, 2018. The Honduras 20/20 program, achieved a new investment for the country with an amount of $12.7 million through Vizion Development and Grupo Jamar initiative, corporations which have launched a groundbreaking infrastructure project called VENTU.

VENTU is a new type of project with a construction area of approximately 26,900 m2, with different spaces, such as an office service center with a modern and ideal work environment for work well-being, a commercial center, gastronomic and recreational activities, green area designed for visitors and Honduran family and a parking lot with 4 levels. The tower for the office area will be built in the capital city suited for companies in the BPO / ITO sector, such as call centers, software development companies, outsourced business services under the optimal conditions for this type of industry and the highest technology.

Orlando Avilés, Vizion Development’s general manager, stated that “VENTU is a complex which will facilitate comfortable and safe access to tenants and visitors, while providing the neighboring community with new leisure areas”.

During the building phase, 400 direct jobs will be created and according to project managers, 2100 indirect jobs will be generated as well. The private sector with this new investments, through the Honduras 20/20 program, will be contributing to the well-being of the citizens of Tegucigalpa and speeding up the development of the country.

“Honduras 20/20 constantly pursues this type of investment due to the fact that it boosts job creation. VENTU will stimulates BPO/ITO expansion, because it responds to the needs of Honduran and foreign capital investors in terms of technology, and optimal work conditions for outsourced entrepreneurial services. The innovation we achieve in these type of projects raises Honduras’ competitiveness, and positions us in the field of vision for world leaders in this area. Another benefit of VENTU is that it contributes to the economic reactivation and improves the urban landscape of the capital’s southern area”, added Peter Fleming, Honduras 20/20 director.

Honduras in the BPO/ITO sector has increased up to 6% annually. The country in terms of infrastructure, has the specific requirements for the growth of the sector. Furthermore, over 10,000 bilingual Honduran youngsters graduate every year.

“VENTU will be the first project for mixed use in southern Tegucigalpa, providing an outstanding space for commerce, business, lifestyle, and leisure for the rapidly growing surrounding community”, stated José Maymir Jarquín, Grupo Jamars’ Administrative Manager.

VENTU, projected to be finished by 2019, came to enhance all the country’s competitive advantages for foreign companies that seek to invest in Honduras.

Honduras 20/20 has already created 50,000 jobs out of 600,000 estimated

Tegucigalpa – Secretary of Labor, Carlos Madero, announced that Honduras 2020 has already created 50,000 jobs out of 600,000 estimated.

– January has left us with 5, 500 jobs, said Madero.

– The estimated job creation of the employment iniciative “Fuerza de Tarea” will not be the same as those created by Honduras 2020.

Honduras 2020 main objective is to achieve the creation of 600,000 new jobs in a five year term. Just in the year 2017, the program created  more than 50,000 new jobs, having this year already created a significant number.

¿What is your opinión regarding “Fuerza de Tarea’s” mission to create 20,000 new jobs during the first months

He stated that last week 2,300 jobs were offered in a job fair held at San Pedro Sula thanks to Honduras 2020. As well as today in Choluteca, were 500 jobs are being offered.

“Honduras 2020 program’s first years were dedicated on creating an efficient attraction strategy. As of today, this strategy is already put into action. The next steps are portraying confidence so that companies can invest and achieving investment deals.”

Our roadmap clearly defines which jobs are created by Honduras2020 and which are not, establishing the program’s and the private sector’s objectives still in the need to be met.

Task Force – Fuerza de Tarea

“Fuerza de Tarea” Program was launched this week by President Juan Orlando Hernández at Centro Cívico Gubernamental stating that the Program’s initial objective is achieving L 3,400 million investment and the creation of 20,000 new jobs in agribusiness, tourism and housing sectors, as well as financial aid.

Madero stated that this Friday “Fuerza de Tareas’” roadmap will be officially handed to President Hernández, declaring that quick pace actions for job generations will be taking place, some by the private sector and others by the government.

Concerning the Organic Budget Law, Madero confirmed that unfaithful information in the media regarding labor right payments is completely untrue. Benefits have always been guaranteed and every Ministry Office pays them with their own budget.

Source: Proceso.hn
Translation: H2020 Team.

 

HONDURAS20/20: Latest trends in retail market and branded wholesale in U.S. to explore for HONDURAS Textil Apparel Sector

Co-Creation adds value to your organization and elevates the relevance of your company in the retailers’ or brands’ matrix of A, B, and C suppliers.

Retailers and brands are pivoting to outsource to their A suppliers design, trend development in finished garments. Instead of wholly relying on internal design teams to drive seasonal product development, retailers and brands are leveraging their supply chain to hire designers and creative directors to drive trend and product development for them season to season and in some cases “season less” when a trend or fashion item is hot. Remember that “season less” design, product development is now possible because of ease in adding new styles to their web sites vs the old model of loading brick and mortar locations seasonally. E-comm makes launching new trend product product at any time in the development calendar.

Co-creating makes your company more relevant in the E-comm space.

In response to this latest trend at retail and brands, many of these A garment suppliers (i.e. Koreans, Taiwanese) are hiring design teams and housing them in offices close to retail and brand headquarters in USA so their design and concept teams can interact directly with merchants and sourcing teams regularly.  The AHM membership should know that this trend to outsource design, product development to suppliers is growing. For the textile or garment supplier that meets the challenge, this business model creates a dependency for the retailer to have to book the order with the supplier that brought the design development to the table because then there is no time to replace the development with another supplier.  The future for A suppliers is to add value by owning the fashion, trend development for their retail and brand customers to final commercialization.

How do you achieve success in driving Co-Creation proactively to differentiate from your competition?

  • Own the value chain from concept to commercialization. Don’t wait for your customer to provide the trend, bring trend to your customer with quarterly appointments.
  • Create a company culture that emphasizes newness, trend & innovation to disrupt your market competition.
  • Allocate company resources to hire a design and creative team to drive trend in seasonal color, materials and silhouette
  • Attend fabric and supplier fairs that are hosted by your retail and brand customer to work closely with the retailer and / or brand to understand the brand story and design into the brand story custom
  • Think “season-less” in newness with quick reaction times with a narrow fabric palette for speed to market
  • Attend global trade shows like Premier Vision and Outdoor Retailer Show annually or bi-annually for inspiration in driving trend, newness
  • Lean on your supply chain for research & development (i.e. chemical, dyestuffs, yarn, equipment suppliers)
  • Be focused and knowledgeable in your selected category researching aspirational brands for trend guidance
  • Create a dependency between your customer and your creative teams to increase market share and reduce internal work load of your customer whose resources are tight due to internal margin pressure
  • Carry and show trend line of fabrics, garments to your customer appointments
  • Understand your customers’ development calendar – timing is everything. The internal retail and brand seasonal development calendar drives the sample development timelines and merchant buy due dates. Ask for appointments to show the trend line at critical moments in the calendar by season.
  • Align with the design team’s aesthetic to deliver trend appropriate sample development.
  • Co-Creation = Higher Market Relevance = Dependency = Higher Margins

For further details on this topic, Mr. Joe Cuervo, Textile and Apparel Manager for the Honduras 2020 Program can be reached at the following email address: jcuervo@honduras2020.com