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Specialized Textiles and Apparel

Vertical integration of the supply chain, allowing easy market access The textile and apparel sector is one of the main engines for the development of El Salvador, with a value chain that has been consolidating and integrating towards more value added products. The dynamic process of vertical integration of the industry has incorporated all production activities of the textile and apparel chain, from the production of fibers, manufacture of yarns and fabrics, product design, garment manufacturing and the associated logistics, besides offering countless opportunities to enter new businesses in the upper and lower end of the value chain and related activities. Investment Opportunities The sector offers attractive opportunities for companies venturing in international markets on favorable terms in an expedited manner.
  • Manufacture of Yarns and Fabric (Natural and Synthetic): the fabric deficit in Central America makes textile investment appealing; especially for fabrics produced with synthetic fibers (nylon, polyester, microfibers and others), as these are given preferential access to the United States.
  • Manufacture of knitted garments with accessories and embellishments (embroidery, screen printing, heat transfers, etc.), athletic wear, sportswear, performance wear and swimwear: global industry increasingly demands shorter delivery times for these products. El Salvador has a vertically integrated supply chain and a geographical location close to target markets. This allows companies to provide high turnover and value added niches within deadlines.
  • Manufacture of garments included in the “cut and assemble” rule of origin: bras, girls’ dresses, sleepwear and luggage, among others: Garments under the single transformation category enter duty free into the United States.This category allows a company to make garments in the country using fabrics from anywhere in the world.
Advantages of Investing in El Salvador.
  • El Salvador has significant competitive advantages for the location of textile and apparel companies, highlighting the speed to market and geographic proximity, complemented with free trade agreements that give access to an important customer market. The free trade agreements El Salvador has with several other countries creates access to a market of 1.2 billion potential customers worldwide.
  • The yarn-forward rule of origin granted by the CFTA-DR allows free access for qualifying textile and apparel products made using yarns or fabrics from the US, Central America or the Dominican Republic. These same products pay a 32% tariff when imported from Asia through the US.
  • El Salvador has one of the most competitive labor costs in Central America, including fringe benefits and a qualified workforce that outstands in the region.
  • It is the only country in Central America that has been able to develop a full synthetic cluster.

Need more information on the sector?

Contact PROESA to receive all the information and advice you need to invest El Salvador.

Javier Galdámez

Digital Technologies & BPM Investment Specialist


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