Tag: manufacturing in Nicaragua
Nicaragua has been making the news in international media, heralded as one of the world’s best kept secrets as far as affordable tourist destinations are concerned. True, but Nicaragua may not remain a secret much longer because of its increasing popularity as a retirement destination, and as a developing economy, it’s attracting foreign investment in its manufacturing section. Nicaragua’s location in the heart of the Americas means the country is in the perfect position to be a highly competitive export platform to world markets.
Nicaragua has become a very attractive investment prospect for export manufacturers. Because of its high productivity rates, competitive labor costs, close proximity to major markets, significantly improved infrastructure, benefits of being a DR-CAFTA member, attractive investment incentives, and the country’s Interpol rating as Central America’s safest nation, Nicaragua is the place for foreign investment.
Nicaragua’s textile and apparel industry accounts for nearly 60% of total free zone exports. The industry generates US$1.4 billion in earnings and employs 70,000+ people. “Made in Nicaragua” apparel is sold in the USA by major retail chains such as Target, JC Penney, Wal-Mart, and Kohl’s. Likewise, renowned international brands like Adidas, GAP, Liz Claiborne, Wilson, Under Armour, Wrangler, Levi’s, Lee Jeans, Patagonia, North Face, Docker’s and Dickies all trust their brands to Nicaraguan manufacturers.
In a study titled “Benchmarking the of Nicaragua’s Apparel Industry”, conducted by O’Rourke Group Partners, it was found that Nicaragua is not only a competitive option for sourcing numerous apparel products in this hemisphere, but in some cases compares to China, Vietnam and Bangladesh.
Furthermore, Nicaragua offers some of the most competitive labor costs in the region, making it an ideal investment destination for labor-intensive operations.
Nicaragua has actively engaged in negotiations to enable the country to integrate into the global economy. As a result, Nicaragua has gained preferential access to key markets such as the USA, Mexico and Europe. Still, the country continues to seek opportunities to further assure its successful engagement in world trade.
Nicaragua is part of the Central American Common (MCCA) and has established free-trade agreements with Mexico, Dominican Republic, the United States, Panama, Chile, and the European Union. The country also benefits from the Generalized System of Preferences (GSP) with countries such as Canada, Norway, Russia, Switzerland and Japan, and has signed bilateral investment treaties with a number of countries to promote and protect investments. In total, Nicaragua has earned preferential access to a global market of over 1.5 billion people.
The population of Nicaragua is young overall, with 77% being under the age of 39. The country’s labor force is approximately 3.2 million and one of the most competitive and productive in the region. Nicaragua also has a large number of English speaking professionals who have been educated and trained abroad.
The Government of Nicaragua has focused its efforts on improving the country’s business climate. It has created an Advisory Board, whose responsibility is implementing policies, structures and programs for investment and export promotion with the purpose of fostering the country’s economic growth.
To learn more about opportunities available investing in Nicaragua’s manufacturing sector, contact Nica Investments.