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Foreign Direct investment has been playing a vital role in driving El Salvador’s rapid modernization. It has not only helped to sustain economic growth, but has also brought improvements in social conditions and in overall development indicators.
Aware of the variety of opportunities that El Salvador offers, international companies have been steadily making their way into different sectors of the economy by developing new projects. And, because of El Salvador’s growing network of free trade agreements, they not only target the domestic market, but also enjoy privileged access to almost 500 million consumers around the hemisphere.
 Mission |
Generation of employment and technology transfer in strategic areas through the attraction and permanence of foreign investment, in order to contribute to the social and economic development of El Salvador.
| Who we are |
PROESA is a government agency dedicated to promoting investment in El Salvador since June 2000. It was created through strong participation of the public sector and seeks to generate employment, transfer technology and aid the development of the country. The Agency’s primary objective has been to attract and assist foreign direct investment in industries such as: agroindustry, textiles and apparel, contact centers, light manufacturing and electronics, logistics and distribution center, software development, tourism and footwear.
Formed by a diverse group of professionals, PROESA not only promotes El Salvador abroad, but also provides an array of information that an investor requires in order to establish operations.
Our investment promotion advisors provide assistance helping the investor make the decision of investment in the country. The Aftercare department provides assistance to investors once the company is established in order to guarantee the company’s success and provide the investors with peace of mind.
PROESA has helped more than 138 transnational companies expand or establish local operations. Successful multinational enterprises have proved that El Salvador Works for their businesses and that its people work to make their firms even more productive and profitable.
| What we do |
PROESA, the National Investment Promotion Agency of El Salvador, is the government agency that assists foreign investors with professional guidance regarding investment environment and business opportunities in the country.
PROESA is a specialized institution that promotes El Salvador abroad and also provides an array of the information and technical support that an investor s requires need in order to establish successful operations . i n El Salvador.
PROESA offers assistance with:
- Comprehensive information on business opportunities in El Salvador, key business sectors and the Salvadoran economy.
- Tailor-made information and practical advice on how to proceed when setting up a business in El Salvador.
- Introductions to relevant contacts among Salvadoran authorities, utility providers and professional service companies providers such as lawyers, accountants, relocation specialists and recruitment companies.
- Assistance in finding and arranging visiting programs to the most suitable locations in El Salvador.
- Support in finding companies for possible joint ventures or other forms of cooperation.
- Analysis of business opportunities in El Salvador.
| El Salvador Works: A brand that travels around the world |
In July of 2002, PROESA and its international public relations agency conducted a study to understand perceptions of audiences in the United States, Japan, Korea, Taiwan, as well as established foreign investors in El Salvador. This study showed the strong points of our greatest resource, our people. The result was a new brand: El Salvador Works.
That same year, the first international investment promotion campaign in our nation’s history was launched with the new brand: El Salvador Works, reflecting the loyalty, capability and productivity of Salvadorans
The World Bank’s Multilateral Investment Guarantee Agency (MIGA) considers the campaign a success, “El Salvador Works campaign was a strategic investment that powered the direct investment attraction process, increasing the amount of potential investors and beginning a process of country image that would bring benefits in the future.” And adds “…the marketing initiative, part of the image building campaign “El Salvador Works” has helped in PROESA´s investment promotion capacity specialization.” Study’s fragment MIGA.
| aBOUT THE lOGO |
The slogan “El Salvador Works” has a double meaning: The people of El Salvador work and El Salvador works for businesses.
Warm colors were chosen for the logo. A circular shape that encloses 3 people united by the arms represents the human connection.
PROESA has used the logo “El Salvador Works” in promotional materials and souvenirs, as well as investment promotion presentations presented around the world. In addition, many Salvadoran companies use this logo on the packages of their exported products.
| eDUCATION |
El Salvador’s main richness asset is its people. The government of El Salvador considers believes that in order to reach a sustainable economic development it is essential to have a healthy and capable population.
At present Currently there are private and public elementary and secondary schools ; it also counts with . There are also forty three 43 private and public institutions for higher education as well as centers for technical education, some of which offer graduate courses and master’s degree s in different areas. Most of these institutions offer technical and information technology specialized courses, which annually continue to every year add new professionals to the country's existing skilled labor pool.
- 26 Universities
- 9 Technological Institutes
- 6 Specialized Institutes
- 9 Technical Schools (Middle Education)
Furthermore, there are 14 television stations, two of them dedicated exclusively to education and culture.
Skilled Labour
- An average of 5,000 students graduate s in with a technical majors degree per year
- An average of 110,000 students are enrolled annually in universities annually.
- More than 3,000 students, who speak English proficiently A large pool of new English speakers (basic - intermediate) graduate annually : over 3,000 students
- Over 7,000 students graduate annually from fully bilingual schools
There is a Large large availability of trained people with computer skills.
| sTRATEGIC lOCATION |
El Salvador is strategically located in Central America, between the North and South American continents. El Salvador is bordered by Guatemala at the west, Honduras at the north, by Nicaragua and the Gulf of Fonseca at the East, and by the Pacific Ocean at the South. Its territory , of approximately 21,040 kms 2, has a coastline of 320 km. with the Pacific Ocean that extends lengthwise along all the country.
The strategic location of El Salvador, at the center of the isthmus El Salvador’s strategic location at the center of the isthmus , provides access to important markets in Latin America and in the United States. Additionally In addition, the capital city of distances between San Salvador is equidistant to and the capital cities of Guatemala, Honduras and Nicaragua, are equidistant, a very important fact a significant advantage when 70% of the regional commerce is concentrated in these four countries.
“The proximity to the United States market offers a very particular advantage over China; it allows production in regular cycles and to respond more timely than Asia to market demands ,” says a textile and apparel business representative already established in our country.
Nearly 2.5 million Salvadorans have immigrated El Salvador has a population of approximately and they and nearly 2.5 million Salvadorans reside and work outside the country, mostly the United States.
Location is a natural advantage, but it is not the only one El Salvador has to offer. just one of the many advantages El Salvador offers. “The human quality of our people makes our work force a very special one, so special that the Salvadoran laborforce is recognized throughout the region and the world”, says Patricia Figueroa, Executive Director of PROESA.
| INVESTMENT OPPORTUNITIES |
AGROINDUSTRY
In El Salvador, we understand the importance of growing, cultivating and processing quality goods that are highly valued on the global market.
The Salvadoran government is committed to the diversification of its agricultural sector, promoting programs and reforms which foster development and technological transfer, mainly in the areas of vegetable and fruit production and processing, ornamental plant and flower production, and marine industries.
El Salvador’s dry tropical climate makes it an excellent environment for a wide variety of agricultural products. The annual average temperature (25°C/77°F), the average mean of monthly rainfall (300 mm during the six month rainy season) and the constant length of growing period allows for year round production.
TEXTILE & APPAREL
El Salvador’s garment industry has served as an engine for the country's economic development over the past 20 years. This sector has, by far, increased its manufacturing capacities, and the services offered range from yarn spinning to the full production of the garment; this has resulted in the reception of more investment than the other sectors. Currently, more than 260 textile and apparel companies, including many of the apparel industry’s top brands, already call El Salvador home. The country offers a variety of services, including embroidery, industrial laundry, dyeing and finishing, cutting rooms and packaging, which have helped Sara Lee’s manufacturing operations and many other brands such as Levi’s, Liz Claiborne outsource their production and compete in today’s crowded marketplace.
Given the industry’s growth, many of the existing companies in the country are converting to full package and developing the supply chain through distribution centers for the necessary provision of materials required for the vertical integration and sustainability of the industry.
CONTACT CENTERS & BACK OFFICE PROCESSING
Quality customer service is the key to attracting and maintaining customers in these industries. Technology can quantify your company’s productivity, but nothing can replace the most vital element of all - the human touch.
El Salvador’s state-of-the-art telecommunications system allows instant access to U.S. mainland and international markets and is ready to handle your contact center business in both English and Spanish. It provides a dynamic environment and offers a skilled and customer-oriented workforce, competitive labor costs, low risk pro-business environment, abundant bilingual force and a neutral Spanish accent.
A bilingual workforce with a low turnover rate makes El Salvador the ideal Contact Center and Back Office Processing center. It provides quick start-up, high-performance knowledge economy for both. Existing Centers deliver cost reduction, increased efficiencies, great customer service, and drive sales.
LIGHT MANUFACTURING & ELECTRONICS
El Salvador’s focus today is firmly on the future and the technologies, which will form the backbone of the next generation of devices and applications. As the industry makes the transition from the PC-centric to a digitally driven world, El Salvador is opening up new frontiers of opportunity.
In El Salvador, we understand the importance of manufacturing quality products that are highly valued on the global market. For more than 20 years, the country has successfully manufactured electrical components and refrigerators for export to the United States, Europe, Asia and the Caribbean.
Multinational electronic corporations like AVX, (Kyocera), have already set up successful assembly operations in El Salvador, learning first-hand the value of El Salvador’s modern technology and automation systems, and its skilled technical labor force.
DISTRIBUTION CENTERS
Better response times are being demanded and there is switch in emphasis from larger quantities of goods being stored and transported, to multiple orders being dispatched in small batches, more frequently. The ability to store goods used in the production process closer to where the manufacturing takes place is increasingly evident. These structural spaces meanwhile are creating new patterns of demand for industrial space in terms of both location and specification.
The geographical scope of the distribution industry has been changing for some time, from national to regional an widening into global marketplace. At the same time e-commerce, just in time delivery, postal deregulation and changing transport policies are also placing more emphasis on local distribution
Infrastructure is the foundation of economic, industrial and social development. The multiplier effect of infrastructure development on the economy is significant and it’s role as a stimulator of economic growth is indisputable.
In such a competitive global market, it is important for businesses to choose the best location for their centralized distribution system. As many larger companies pioneer new logistics services and technologies, El Salvador is now firmly placed at the forefront of Central America’s logistics industry. It is strategically positioned to become the Distribution Hub for Central America.
TOURISM
Tourism and leisure are currently some of the most exciting sectors in El Salvador. Though developing fast in the last years, the industry is still at an early stage of development. The sector is developing throughout the country but the major projects are currently being planned in the metropolitan area and other major cities in Western and Northern parts of El Salvador.
In response to current economic, social and political realities in the hemisphere:
Travelers are choosing more rural and out-of-the-way destinations, focusing in part on cultural, historic and natural resources.
Regional and hemispheric travelers are taking more trips closer to home and the average leisure trip is 3.4 nights.
By the year 2020, tourism will be the world's largest industry.
Why Invest in El Salvador’s Tourism Industry:
- Tourism product is as diverse as it is warm and beautiful
- Attracts more than 1 million tourists annually
- Unique combination of unparalleled natural beauty, temperate climate and thousands of years of history
- Offers excellent climatic conditions for year round tourism
- Comparatively, low operating costs
- Generous financial incentives
FOOTWEAR
El Salvador´s competitiveness as a center for footwear manufacturing increased with the recent negotiation of a free trade agreement DR-CAFTA signed by the Central American countries and the US.
By way of the CAFTA, the United States grants the region the most liberal rule of origin granted to-date, requiring simple assembly to grant origin. For most categories, pre-manufactured components manufactured in third countries can be incorporated, assembled in El Salvador, and enter the United States tariff and quota free.
The footwear industry in El Salvador is formed by 15 companies that currently represent more than 7500 jobs in the Salvadoran economy and exports 60% of its production to the United States.
Exports grew 31% between years 1999 and 2003 and for the period 2002-2003 the industry grew in 8%.
When combining this factor with others such as lower investment incentives, the idea of complementary manufacturing operations in El Salvador becomes a logical option for the foreign investor. |
