Textile And Apparel
Honduras, LATAMs Textile and Apparel Leader
Every proudly worn garment that belongs to a leading brand in the clothing industry has its own history. Many of which are created in hands of Honduran talent, whose capacity, dedication and high excellence standards are one of the many reasons why the most important textile companies choose and trust Honduras as the most profitable and competitive investment destination in the region.
It all began in the late 1970s, when the “Free Zone Law” was created. By 1998, the entire national territory was enjoying all of the benefits this law implied. Hence, joining international competitors through required incentives reaching foreign investment attraction.
Textile and apparel industry investment represents a great socioeconomic impact for both parties. The country where the investment takes place is provided with employment opportunities that reduce unemployment percentages and, on the other hand, investors are granted the benefit of improving their performance margins since their costs diminish due to highly productive labor force.
At the time, the country has a stable legal framework which guarantee the principle of free enterprise and production incentives. In addition, numerous free trade agreements add value to productivity and marketing processes which provide access to several international markets, rising global competitiveness levels.
Through the Tripartite Comission (Government – Workers – AHM) and Bipartite Comission (AHM – Textile Labor Unions), permanent dialogue mechanisms have been created with workers of the textile sector, reflecting the continued and shared interest on foreign investment attraction.
PROCINCO, the Integral Competitiveness Training Program, offered by the AHM in alliance with INFOP, the Honduran Vocational Training Institute, offer a series of training courses for operators, technicians, managers and executives. At the time, more than 562,000 employees have been trained since 2001.
Honduras offers important competitive advantages for investment:
- Honduras is the #1 worldwide cotton shirt and #2 sweater volume exporter to USA market.
- Its strategic geographical location represents a great competitive advantage, as it offers the largest and safest port in Central America, certified under the “Safe Container Initiative” achieving great exportation effectiveness. Port to port freight to United States takes an average of 2.4 days. Thanks to COPRISAO, the Presidential Comittee for Customs Reforms, clearance times were reduced from 12 days in August 2016 to an average of 2 days in March 2017, representing a time reduction of 83%.
- WRAP, Worldwide Responsible Accredited Production, which is an independent, non-profit organization dedicated to promoting labor, health, safety, environment and customs law compliances, ranks Honduras in second place for social compliance in Latin America and first place in Central America.
Within the framework of the Economic Development Program, Honduras 2020, a solid platform of facilities and benefits is articulated with the purpose of promoting foreign investment and ventures with outstanding conditions that are strengthened every day.
The vision for the Textile and Apparel Sector established by Honduras 2020 is to position the country as the textile export leader in the Americas to USA and Europe reaching a total of US$ 7.4 billion and creating 350,000 new jobs. All of this, through a textile hub with world class talent that pushes the frontier of knowledge in textile sustainable development.
The Textile and Apparel industry infrastructure has outstanding conditions for investment and expansion opportunities. 18 industrial parks have a construction area of more than 1.8 million square meters, advantages that reach airports, ports, highways, telephones, water and electrical supply, customs paperwork, low working costs, machinery and logistics.
According to AHM, the Honduran Manufacturers Association´s July 2017 member company data, the sector has generated 144,789 direct jobs and approximately 579,000 indirect jobs.
Focused on corporate social responsibility, AHM also promotes training initiatives, housing access opportunities, safety and occupational health standards, and also a new pilot project of child care centers. This provides residential areas with security, stability and comfort for all the textile working families.
As a result of the Honduras 2020 Program, 2 social housing proyects of private investments have developed in close proximity to industrial parks, built with high quality processes and technologies. Also, residential area projects that include green and recreation areas, churches, schools, nursery and easy access to public transport.
As an outcome of the country´s competitive advantages for this industry, a recent investment of US$ 78 million in a synthetic yarn plant is expected to manufacture 20,000 tons annually.
The Honduran Textile and Apparel Industry counts with important initiatives in terms of social responsibility and sustainable development, including programs aimed at education, health and environment.
The largest roof solar panel installation in Latin America has been implemented in Honduras in the last recent years. It has an installed capacity of 7.5 megawatts of clean energy. The Textile and Apparel Industry has the capacity of biomass production as well as waste water management technologies allowing high productivity in a sustainable manner.
Honduras is the new destination for your Textile and Apparel investment!
|Honduras Maquila Association (AHM)||http://www.ahm-honduras.com|