“We are very worried,” he said. “We are losing a lot of competitiveness, especially with El Salvador and Nicaragua, which have much lower production costs.”
According to the spokesman, Honduran wages are 38% and 48% higher than in El Salvador or Nicaragua, respectively. Energy prices are “the highest in Central America,” he added, making it more attractive for textile companies to produce elsewhere.
Nicaragua also has a more favourable import duty and investment environment, he noted, adding that the Honduran government must work to help the industry or that it will likely disappear in a few years.
“We can’t continue like this,” the spokesman said. “We are asking the government to help but we have no reason to be optimistic that it will do anything.”
Continue news article: HONDURAS: Textile mills shift to El Salvador, Nicaragua