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categoria boletin inversiones ingles 

PROESA attended the Second Belt and Road Forum (BRF) held in Beijing on April 25-27. About 5,000 participants from more than 150 countries and 90 international organizations attended the forum. A total of 283 items of practical outcomes were achieved, cooperation agreements worth more than 64 billion U.S. dollars were signed. The leaders enriched the concept of the Belt and Road Initiative cooperation and reaffirmed their commitment to a high-quality development path, while clarifying the priorities for the future cooperation and deciding to strengthen overall cooperation in all areas.

 

On April 29, as a part of the Trade Mission to China, El Salvador Trade and Investment Forum was held in Beijing. The event gathered more than 150 representatives of Chinese business, interested in establishing trade relations with El Salvador, as well as its investment potential.

 

During the forum, representatives of Salvadoran business got an opportunity to establish contacts with potential Chinese partners.

 

This event was organized with the support of the Chinese Council for the Promotion of International Trade (CCPIT) and the Embassy of El Salvador in China.

The Export and Investment Promotion Agency of El Salvador (PROESA) with the support of the United States Agency for International Development (USAID) inaugurated on May 15th the VI Business Meeting "A World to Export 2019".

 

This activity was executed as part of the development of the “Plan of Events El Salvador 2019”. It also aims to make available to small and medium-sized Salvadoran companies, tools for commercial promotion that facilitate their competitive participation in international markets.

 

The VI Business meeting allowed a more direct commercial approach between Salvadoran exporters and buyers from different countries from Central America, North America, South America, and Europe. These interactions drive in a great way the diversification of the sectors and destination countries of Salvadoran exports. It also provides them with an additional platform so they can show their exports offer.

 

As a result of the event, 150 business appointments were developed with the objective of showing the national companies’ export offers and to establish business relationships. The event had the participation of 58 Salvadoran companies that met with 18 potential buyers from the United States, Canada, Greece, Guatemala, Panama, Spain, and Ecuador. Also, there are projections of US$1.3 million in medium or long-term sales of the participating companies. 

The Ministry of Economy (MINEC) in partnership with the Ministry of Foreign Affairs made available the Commercial Intelligence System of El Salvador. This system aims to expand national productive capacities and to promote the supply of Salvadoran products, being a very useful tool for the society, the entrepreneur people, the government, and the public policy formulators.

 

The system presents in an integrated and systematized way, all the information necessary for the decision making in the commercial matter. At the same time, it identifies opportunities in the national and international market. The information to be presented to the system users are statistics of the trade, goods, tariffs that are confronted in each market, details of commercial agreements, studies and profiles for sectors or markets, logistic profiles, information of fairs and events, as well as news that are relevant to the world.

 

Within the new aspects that compose this system, we find the methodology for the identification of the competitive potential of the products exported by El Salvador, as well as the identification of the potential of demand of the markets. Where through the estimation of indexes, there is a calculation of an approximation to the conditions of supply or demand for the products and markets.

 

The implementation of the commercial intelligence system is expected to contribute to economic growth and job creation, which are translated into greater well-being for the Salvadoran society.

 

For more information about the Commercial Intelligence System, you can access the website: http://inteligenciacomercial.minec.gob.sv/

Indufoam starts in 1982 with American and Central American capital. In 1984, Salvadoran investors bought the shares, making Indufoam a 100 percent Salvadoran company. Then in 1993, the family Toruño acquires the company.

 

Currently, Indufoam produces daily 1,200 beds (2,400 pieces) and 4,000 accessories (pillows, bedsheet sets, mattress protectors, duvets, among others)  50% of the production is sold in the local market, and the remainder is destined for exports. Indufoam also manufactures 400 living room furniture each month, a category through which it attends the local market, but for which it already has plans to export.

 

The company produces the brand of Indufoam beds as well as private lines such as “Sueña” (local), “Simmons” (from the United States), “Pikolín” (from Spain), and some exclusive brands to La Curacao, such as the Smart Support. In the Salvadoran market, the manufacturer occupies 60% of participation.

 

Since August of the last year, the Indufoam seal arrived in the United States to gain more ground in that market. The first export of the company was destined to a hotel chain of Florida, which is developing plans of expansion to several markets of the American continent.

 

The high-end beds now offered by the hotel chain were made with mosquito repellent, antibacterial, and fire-fighting fabrics, among other technological features. And while there has not been even a year after the first shipment to that location, Indufoam is already preparing the second dispatch. This time, it seeks to attend a hotel chain based in New York City.

 

In addition to the hotel segment, Indufoam explores the direct-to-consumer sales channel in several regions of that country. In this segment, they plan to sell mattresses and accessories.

 

As for new markets, last year they also ratify a business with a hotel chain of the Dominican Republic, a country where there are wide growth plans and that has established several hotel chains with high-end products.

 

Among its projects, in July they will begin the export of strings units of the line BeautyRest Black to licensees of Simmons in Panama, Ecuador, Colombia, Peru, and the Dominican Republic.

 

Currently, Indufoam exports to Mexico, Belize, Guatemala, Honduras, Nicaragua, Costa Rica, Panama, Colombia, and Peru. These are markets where the company is expecting to grow around 12%. However, this year's goal is focused on markets outside Central America.

The Central Reserve Bank through the Network of Researchers of the Central Reserve Bank (REDIBACEN) presented the results about the research "Characterization and Determinants of Foreign Direct Investment in El Salvador". This study seeks to characterize foreign direct investment (FDI) in El Salvador depends on the origin of inputs and the destination of sales, and to know what internal factors have been determinants of their entry and permanence.

 

In El Salvador, the evidence of the first foreign companies is registered during the period from 1960 to 1980, mainly of industrial origins such as Kimberly Clark, Bayer S. A, McCormick, and AVX. The privatizations of the electricity, telephone, and sales of local banks of the years following 1995 raised the flows of the net foreign direct investment. And, from the decade of the 2000s, the net FDI grew again because of the entry of the international banking industry and the consolidation of the industrial sector.

 

The results of the study showed that the share of exports of FDI companies increased in the period from 2005 to 2017, from 59% to 64%, ending in 2017 with US$3, 713.1 million. In addition, exports of intermediate and capital goods show participation in global value chains. Representing the intermediate goods 16.6% in the category of low-tech manufactures and capital goods while they represent 78.4% in the category of high-tech manufacturers. For its part, imports of FDI companies have shown stable behavior in the period of 2005-2017, from 51.2% to 50.1%.

 

On the other hand, it was stated that horizontal FDI, where all production and all inputs are sold and obtained locally, stands out with higher investment amounts (US$3, 699.2 million) and 130 companies in 2017. Vertical FDI, where all inputs come from the parent company and part of the production is sold locally, presents the highest companies’ stock (US$43.4 million) and flows (US$30.9 million). The FDI of the export platform generates the highest proportion of formal employment with 45,148 workers. Here, all inputs come from the parent company and all production is exported. In addition, the types of FDI seeking efficiency are the largest value-added generators.

 

As for the type of FDI, most companies prefer the creation of a wholly owned subsidiary as a form of entry. The results have shown evidence of the existence of a greater presence of FDI in search of a market, where it stands out the national, the American, and the regional markets. In addition, the technological level of the subsidiaries in El Salvador evidence the transfer of technology from the parent company, in the form of equipment, facilities, and processes.

 

At the level of all FDI companies, the main motivations for direct investment are the search for lower rent and financing costs, the expansion of product range in other markets, and the search for lower international costs of transportation and communications.

 

Some main relevant factors at a country level for FDI companies are opportunities in the sector of activity, attractiveness, tax incentives, modernization and qualification of human capital, dollarization, and strategic location.

 

International trade, employment, paid salaries, and the national market for goods and services demonstrate the importance of FDI in the country. The main motivations of FDI are related to the interest in the local and regional market and the search for cost efficiency. Therefore, it is necessary to retake the country's economic development objectives and identify opportunities, for the planning and implementation of key actions to determine which sectors and companies can contribute to achieving such objectives.

COLABORA group led by Alfredo Atanacio and Rodolfo Schildknecht provided the progress of the construction of the Colabora Building located on 105 South Avenue and Paseo General Escalon, which they expect to finish at the beginning of 2020. The amount of investment in the work is US$ 5 million.

 

The Colabora Building will offer a panoramic view of the city of San Salvador in its 6 levels, which will house the offices of Uassist.ME. The building will have two modalities: 13 executive offices that are for sale and the rent of 3 commercial offices. It will also offer 2 meeting rooms and a cafeteria. According to the representatives of Colabora, 20% of the profits obtained will be destined to the Colabora foundation with the objective of promoting the education and the entrepreneurial culture in the country.

 

The construction of the eco-friendly building will be carried out in an area of 1,550 m². The total construction area will be 7,400 m², with a useful area of 4,349 m². The property will have 120 general parking spots, 4 parking spots for handicapped people, and 19 parking spots for motorcycles.

 

There will be 50 direct jobs and 100 indirect jobs created with the construction of the building. It is expected that 400 sources of indirect jobs will be generated later.

PROESA participated in 23nd North American Shared Services & Outsourcing Week 2019 that realized from March 11th to 14th, 2019, at Disney´s Coronado Spring Resort, Orlando, Florida, United Sates.

 

The purpose of the participation was to present El Salvador as predilected destine for investment by U.S companies in the business services sector at a distance, as well as a display country information, in the event had to oppotunity to hold one-on-one meetings with participans of the fair who have investment potential in the country. 

 

In addition, a visit was made to the Coca-Cola HR Shared Services Center in Orlando.

El Salvador recorded a growth rate of 2.5 % in 2018, an increase of two decimal points compared to 2017. The factors that contributed most to this growth were final consumption of 2.4 % and investment 6.8 %, according to the Central Reserve Bank (BCR).

 

 The economic activities with greater dynamism during the year were: Exploitation of Mines and Quarries with an interannual growth rate of 6.8 %; Construction, 6.6 %; Administrative and Support Services Activities, 4.8 %; and Housing and Services Activities, 4.2 %.

 

In the Foreign Sector, exports registered a value of US$ 5,904.06 million in 2018 with an increase of US$ 144.6 million with respect to the previous year.  Exports from the Manufacturing Industry 2.8 % and Maquila 14.3 %, were the sectors of greatest growth. Agricultural goods had a reduction of 3.3 % due to the drop in sales of plants with which drinks are prepared, such as coffee, and the environmental effects caused by drought.

 

Imports, on the other hand, amounted to US$ 1,258.3 million presenting a growth of 11.9 %. The items with the highest growth were consumer goods with a rate of 8.7 %, intermediate consumer goods, 11.4 %; and capital, 8.8 %.

 

At the end of 2018, investment increases totaled US$ 1,855.1 million, representing an interannual variation of 5.4 %. In net terms, Foreign Direct Investment (FDI) ended the year with US$ 839.6 million. FDI flows received by the country are mainly linked to Industrial Activity of 49.2 %;  Trade, 11.7 %; and Financial Sector, 10.6 %.

El Salvador stands out as the leader in cross-border trade in America with a score in the global index of 65.41 points, being higher than the average for Latin America and the Caribbean with 58.97 points, according to the Doing Business 2019 report.

 

The country´s avanced is due to the improvement in times at the border, highlighting the success in times of export, this due to the introduction of an intermediate customs in Santa Ana, for exports and imports that transit the border of Anguiatú. In addition, the improvement in import and export costs is highlighted which from 2010 to date has improved by 17 positions.

 

The high profundization in the comercial opening, multilateral agreements and the formation of the Customs Union protocol make El Salvador a dynamic country in trade facilitation, maintaining leadership at the level of Latin America.

Energía del Pacífico – EDP is the developer of the first electric power generation project based on Liquefied Natural Gas in the municipality of Acajutla, Sonsonate.

 

The construction began in January on a 126,000 square meters site. The first phase is expected to be carried out in a period of 5 months between January and May this year. Later on, the second stage of construction will be developed focused on the foundations of equipment and buildings. The third stage concentrated on structures and a last stage that includes specific works with buildings.

 

The works that are being carried out in this initial phase consist in the preparation of the site that includes cleaning and terracing, stabilization and improvement of the soil, leveling of the soil, rainwater collection systems, rainwater retention pond, erosion control and discharge, erection of perimeter wall, Access roads and habilitation of the internal circulation and parking areas.

 

The project consists of three major components: the LNG generating plant and maritime terminal for storage and regasification; the submarine LNG pipeline, which will run from the maritime terminal to the plant; and a 230 Kilowatt transmission line.

 

The total construction of the plant will be executed with an investment of US$ 1,000 million dollars, the largest investment in the history of El Salvador, 70 % financed by multilateral agencies and the rest will be private capital of the firms Invenergy LLC, Chicago, United States; and Quantum, El Salvador the developers of the projects.

 

Among the international financiers are: Overseas Private Investment Corporation (OPIC); the European Finnvera-KFW and the International Finance Corporation (IFC) and the World Bank Institution.

 

The benefits of the plant, once it begins opertaions, will be the diversification of the energy matriz, the increased energy availability and the promotion of gasification in El Salvador and Central America.

 

 In addition, the company makes social investment in Acajutla, as it has annually commited to contribute to the social development of the municipality with an anual investment of UD$ 532,000 for 20 years, a contribution that began in 2016.

 

The sources of Jobs that the project will generate 1,000 will be for employees during the construction stage and another 60 when it comes into operation, between technical and administrative positions.

 

The plant is expected to be operational in July 2021, supplying 30 % of the country´s energy consumption and with an installed power of 378 megawatts.

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