Honduras Processing Export Area Textile Industry Growth Momentum

(1) the export growth of Honduras's processing export area in 2018, and the growth momentum of the textile industry.

Honduras's processing export area mainly takes the United States as the export market, along with the sustained recovery of the US economy, and promotes the stable growth of the processing export area.

According to data from the Central Bank of Honduras, the export volume of processing export areas in 2018 amounted to US $4 billion 263 million, up 4.5% from US $4 billion 79 million in 2017, an increase of US $184 million.

The main export products are ready-made garments ($3 billion 517 million) and electronic accessories for cars ($680 million).

In the region, more than 7 of the products sold and sold in the United States, and more than 1 of the Central American countries were exported and sold. About 6% of them were exported and sold, Canada and Mexico accounted for 6%, and the European Union accounted for 2%.

(two) the sustainable development of Honduras's textile industry can be expected.

Honduras is one of the world's main sportswear and T-shirt producers, and has become the tenth largest supplier of textiles in the United States.

The free trade agreement signed between Honduras and Canada in October 2014 and the signing of the free trade agreement with Peru were effective in January 1, 2017. In 2018, it signed a trade cooperation agreement with Ecuador and South Korea and signed a partial tariff reduction agreement with Cuba in 2019. Under these many conditions, it has attracted some garment and electronic parts assembly plants to expand production in Honduras.

According to the analysis, the textile and garment industry in Honduras will continue to develop in 2019. The reasons include the steady recovery of the US economy and the sustainable growth of the demand for textile garments in Honduras. The government of Honduras has decided to gradually increase the minimum wage of the textile and garment industry (an increase of 8% in 2019, a monthly salary of 7652.46 in the current minimum wage), a 7.5% increase in 2020, a 7.5% increase in 2021, a 7.5% increase in 2022, and a 8% increase in 2023.

(three) the amount of foreign investment increased in Honduras, and the processing export area is the main axis of investment.

In 2018, Honduras outsiders invested 1 billion 225 million 800 thousand US dollars, an increase of 3.4% compared with 1 billion 185 million 700 thousand US dollars in 2017.

In 2018, foreign investors in the processing export area invested 252 million 300 thousand US dollars, which accounted for nearly 20.5% of the total investment of outsiders in Honduras.

At present, the largest foreign investment in Honduras's processing export industry is still the largest in the United States, accounting for 36%. The main investment industries are textile industry and auto spare parts. The president of the association of processing export zones said that the export investment of processing export areas will increase by 300 million US dollars in 2019, which will provide 18000 jobs.

Take the Green Valley Industrial Park (GreenValleyIndustrialPark) in the Honduras processing export area as an example, all foreign investors are mainly export oriented clothing and automotive electronics assembly industry.

In addition, the important industrial parks include B ffalo Industrial Park and Villanueva Industrial Park, and have also attracted foreign investment.