HONDURAS IS GROWING, BE PART OF THE CHANGE INVEST IN HONDURAS
A COUNTRY IS ATTRACTIVE FOR INVESTMENT WHEN IT OFFERS: A. A stable legal framework, that guarantees the principle of free enterprise, that contains incentives for production and trade treaties that makes Honduras globally competitive. B. Modern highways, 5 international airports and the largest port in Central America, Puerto Cortés, which facilitates the importing and exporting processes. C. An energy infrastructure to ensure productivity. D. Highly qualified and trainable workforce. E. Competitive wage policies. F. Competitive costs in relation to productivity. G. Close proximity to the U.S. market. H. Tax incentives
HONDURAS HAS ALL THOSE ATTRACTIVES, Therefore, world s most important brands have chosen Honduras as a destiny for investment.
LEGAL FRAMEWORK LAWS THAT PROTECT AND PROMOTE INVESTMENT Free Zone Law Law for the promotion of investments Law on foreign currency earnings from exports. Law for the promotion of public and private partnerships Law for the promotion of call centers and BPO s Laws for the creation of employment and development areas. Hourly Labor Law Law for the production and consumption of biofuels. Law promoting the generation of electricity from renewable resources. Laws that protect industrial and intellectual property.
FREE TRADE AGREEMENTS CAFTA DR. TLC with Mexico TLC with Taiwan TLC with Canadá TLC with Colombia TLC with Panamá TLC with Chile TLC with the European Union Central American Bank for Economic Integration (BCIE) TLC with Perú TLC with South Korea (will soon be in effect)
INCENTIVES FOR PRODUCTION PROTECTED BY STABLE LAWS A. 100% exemption on income taxes, net assets and solidarity contributions and sales tax. B. 100% exemption on municipal taxes. C. Exemption from taxes on petroleum based fuels that are used for production. D. Foreign currency is owned by the exporter. E. Access to different markets on prefferential terms (trade agreements) F. Permanent employment subsidy program. (Government subsidizes 50% of the minimum wage for each worker hired permanently during the first 3 months) G. Domestic market sales: 1. For industrial companies up to 100% of its production 2. For commercial companies up to 50% of its products
THE STABILITY OF OUR LEGAL FRAMEWORK ENSURES THAT OPERATING COSTS ARE NOT DISTORTED BY TAXES OPERATION COSTS: Monthly Minimum Wage US$ 279.00 Minimum Wage per hour US$ 1.16 Collateral Percentage on Minimun Wage: 60% MINIMUM WAGE AND COLLATERALS OF THE TEXTILE MANUFACTURING INDUSTRY Collateral Charge US$ per Month US$ per Hour Minimum Wage 279.00 1.16 Social Security 8.03% 22.40 0.09 Training 1.00% 2.79 0.01 Christmas Bonus 8.33% 23.24 0.10 Half Year Bonus 8.33% 23.24 0.10 Bonus for Education 1.85% 5.16 0.02 Vacations 4.17% 11.63 0.05 National Holidays 3.67% 10.23 0.04 7th Day 14.0% 39.06 0.16 Option for Annual Severance 9.66% 26.95 0.11 TOTAL COLLATERAL CHARGE 60 % 166.7 0.69 Wage w/collateral charge 446 1.86
THE STABILITY OF OUR LEGAL FRAMEWORK GURARANTEES THAT THE OPERATION COSTS ARE NOT DISTORTED BY TAXES OPERATION COSTS: (CONT.) 1. Energy Electricity 110/230/60 Volts/ 60 Hz $ 0.10-0.13 Kw/h 2. Square meter industrial building lease $ 3.50 4.50 mt 2 per year (Negotiable with each industrial park & depending on the customers needs or requirements) 3. Cubic meter of water For industrial use: $ 0.08 per galon For domestic use: Cost included on the lease 4. Others
HONDURAS
STRATEGICALLY LOCATED Los Angeles Charleston Nueva York Europa Houston Miami Asia
PILLARS Mexico 2 Honduras 14 Honduras 2 Mexico 15 TO LATEST TRENDS IN SUPPLY CHAIN & CONSUMER PREFERENCES China 17 Bangladesh 18 Vietnam 20 Vietnam 19 Bangladesh 21 China 24 SOURCE: Foreign Trade Information System (Organization of American States) 11
INFRASTRUCTURE THAT SUPPORTS INVESTMENT MARITIME PORTS PUERTO CORTES: The largest and most secure port in Central America a. The Container Security Initiative Program developed and managed by the U.S. Customs, unique in Central America, allows U.S. customs agents to take part in the security processes of foreign ports. b. First port in Latin America to pass two port security programs by the United States government and to have the U.S. Customs offices in situ. c. Also operates with the Container Security Initiative Program, which consolidates Just in Time services to help the buying companies and supply its market in less time. d. This provides more effectiveness to the companies established in the country arriving at the most important ports of the U.S. in less than 48 to 72 hours by sea and only 2 hours by air. e. Puerto Cortés is only an hour drive away from the industrial zones in the northern region of Honduras.
DISTANCES FROM PUERTO CORTES TO THE MAIN PRODUCTIVE AREAS OF THE COUNTRY Distance between Puerto Cortés and main cities Distance between Puerto Cortés and customs borders Kilometers Miles Choloma 43 30 San Pedro Sula 55 34 El Progreso 83 52 Villanueva 81 50 Naco La Ceiba 258 160 Tegucigalpa 299 186 Choluteca 438 272 Danli 389 242 Country Customs Kilometers Miles Agua Caliente 325 202 Guatemala Corinto 60 37 El Florido 241 150 El Salvador El Amatillo 328 203 El Poy 311 193 Nicaragua Guasaule 487 302 Las Manos 429 267
San Lorenzo Roatán Castilla La Ceiba La Ceiba (Atlantic) Roatán (Atlantic) ALTERNATE PORTS Castilla (Atlantic) San Lorenzo (Pacific) Amapala (Pacific)
INFRASTRUCTURE THAT SUPPORTS INVESTMENT AIRPORTS International National Ramón Villeda Morales, San Pedro Sula. Toncontin, Tegucigalpa +30 Palmerola, Comayagua Goloson, La Ceiba Juan Manuel Gálvez, Roatán, Bay Islands
INFRASTRUCTURE THAT SUPPORTS INVESTMENT ROADS Canal Seco Connects with Nicaragua, Guatemala and El Salvador, ending in Puerto Cortés. Road Network Connects with the Atlantic Ocean and the Pacific Ocean and interconnects with the whole country.
ARCOS 1 MAYA 1 INFRASCTRUCTURE THAT SUPPORTS INVESTMENT TELECOMMUNICATIONS A. Fiber optic network that connects undersea cables Maya 1 y Arcos 1. B. Cellular, satellite, Internet, teleports and other communication services (public and private) C. Reliable international direct dialing system (AT&T, Sprint, MCI)
18 Industrial Parks 1,800,000 m2 Of construction INFRASTRUCTURE THAT SUPPORTS INVESTMENT INDUSTRIAL PARKS
2 4 6 1 3 5 7 THESE INDUSTRIAL FACILITIES PROVIDE WORKING CONDITIONS THAT MOTIVATE PRODUCTIVITY: 1. Air conditioned facilities. 2. Lighting that meet or exceed international standards. 3. Optimal sanitary and hygienic conditions 4. Environmentally responsible (water treatment plants, maintenance of green areas, solid waste management services). 5. Services readily available such as: banks, medical clinics, cafes, telecommunications, electricity, water supply, recruitment and consultancy. 6. Corporate Medical System Program. (In partnership with the Honduran Institute of Social Security) 7. Every industrial park is equipped with a customs office to facilitate the import and export operations ot its clients.
1. Young population represents 40% of the economically active population (18-29 years old). 2. High percentage of young bilingual population. HIGHLY QUALIFIED WORKFORCE 3. The training of the Honduran workforce has taken the country to occupy the 4th place as a worldwide exporter of apparel to the U.S. market and the 4th place as an exporter of electric harnesses, which shows that the Honduran workers are easily trainable and productive. 4. For mid-level management, there is a large availlability of highly educated professionals with experience in production, marketing, administration and logistics. 5. Public and private job data bases to help facilitate recruitment processes.