According to the Export and Investment Promotion Agency of El Salvador, the nation, through its robust network of trade agreements, has established relations with Central America, Chile, Colombia, South Korea, the United States, the United Kingdom, and the European Union, Ecuador, Panama and the Dominican Republic. In this way you can access a market close to 1.2 billion consumers located in 42 countries around the world.

Another interesting aspect of the nation is its modern port, airport and road infrastructure, which makes it easier for the nation's companies to execute their logistics operations efficiently, in fact, the World Economic Forum highlights them among the most competitive in the South and Central America.

On the other hand, every day there are more businessmen who arrive in the country attracted by Salvadoran human talent, characterized by its great capacity for performance, efficiency and work ethic, which is also capable of easily adapting to new market needs, qualities that highly appreciated by companies incorporated in the nation. The country's labor force is made up of 3.1 million people, of which 54.3% are under 40 years of age, which shows a young population with high production standards and that is efficient in manufacturing activities, agribusiness and the provision of services.

Through the dollarization of its economy in 2001, El Salvador created a reliable scenario for investors, who also benefit from incentive schemes that offer exemptions on income tax, municipal, real estate transfer, as well as rights Tariffs and other taxes on the importation of machinery, equipment and articles used in the production processes of goods and services.

The nation's strategic location also plays an important role in its logistics segment that makes it easy for them to receive and ship goods to North and South America. In addition to having the same time zone as the central zone of the United States (CST), it allows them to offer a bi-oceanic corridor, proximity to the Trans-Pacific route and the Panama Canal.

Strategic logistics point

Being located in Central America, El Salvador borders Guatemala, Honduras, the Gulf of Fonseca and the Pacific Ocean, and this strategic position makes it an important regional distribution center, ideal for companies that need to distribute their products in the Central American market.

This is how the country, in addition to having an excellent and up-to-date legal framework, has a modern port and airport infrastructure that makes it easier for companies to carry out their logistics procedures efficiently, so that its Service Parks and Regional Logistics Operators are key players in the activities of the national and regional logistics sector.

Currently, the Government is advancing initiatives contemplated in the Cuscatlán Plan to improve and consolidate its nation as a regional logistics center, where both national and foreign organizations generate jobs for the salvadoran population and in turn contribute to the growth of your economy.

For example, the Government is now working on the modernization and expansion of its Port of Acajutla, with which it wants to quadruple its total scope and enhance its cargo and logistics capacity. This year, through the structure, about 3,215,721 metric tons of imports and exports were mobilized and attention to ships increased by 8.97%.

El Salvador has a robust road and maritime infrastructure, which is essential for its logistics corridors, since the country's ports, highways and airports move cargo from North America to Honduras, Nicaragua, and Costa Rica and Panama.

On the other hand, in the segment of international services (offshoring and outsourcing), it benefits from the location of El Salvador because they share the same time zone as the central zone of the United States (CST, GMT -6) and this makes them a ideal point for the provision of remote business services and the maintenance of commercial aircraft.

Economic stability

El Salvador has managed to consolidate one of the most stable economies in Latin America and specialized in exports. It has a dynamic business environment structured with solid macroeconomic foundations and strong government institutions, which have fostered healthy competition and international integration, which has allowed both improving the quality of life of salvadorans, as well as promoting the economic development of the country.

According to the Central Reserve Bank (BCR), this nation is a safe destination to invest, in fact, in the first half of 2021 the country reached $135 million in direct investment, that is, an increase of 84.9%, compared to previous year, which evidenced an interesting process of Salvadoran economic recovery. Among the benefited sectors are manufacturing, finance and insurance, commerce and information and communications.

In this way, both investors and businessmen who come to the country are an important source of technological development and job creation, a vital aspect for strengthening the nation.

Since the dollarization of the economy of El Salvador in 2001, the country offers investors a scenario of great monetary stability, thanks to the elimination of exchange risk, as well as its low inflation.

Strategic Alliances

According to the Ministry of Economy of El Salvador, the nation has established several free trade agreements to access important foreign markets and take advantage of its robust logistics sector, appreciated by nations interested in increasing trade and investment flows.

The free trade agreements signed by El Salvador with various countries facilitate access to a potential market of 1,200 million customers around the world, thus the nation has the following treaties in force:

• EU-Central America Association Agreement
• DR CAFTA
• FTA with Mexico
• FTA with the Dominican Republic
• FTA with Chile
• General Treaty of Central American Economic Integration
• FTA with Colombia
• FTA with Taiwan
• FTA with Panama
• SPA with Cuba
• PSA with Ecuador
• FTA with South Korea

Productive workforce

The Salvadoran labor market is characterized by constant evolution and training of its population of productive age. According to the Household and Multiple Purpose Survey (EHPM) last year, the Working Age Population (PET) in El Salvador represented 74.5%, that is, about 4,995.74 people.

It can be seen that this population of active age, located in the range of 16 to 39 years old, represents 52.7%, while people between 40 to 59 years old reach 29.0%. Regarding the location of the PET, 63.4% reside in the urban area and 36.6% in the rural area.

This shows that its workforce is highly productive and capable of developing new skills in a short time, which is ideal for manufacturing, agribusiness, and service activities.

Salvadoran professionals are ready to join the productive sectors of the country, where annually nearly 200,000 new technicians and professionals will enter the labor market. El Salvador has 40 technical and higher education institutions: universities, specialized and technical institutes.

Support for foreign investment

The Government of El Salvador has understood the importance of investment in development, the strengthening of its economy and the modernization of the country, for this reason it has established a series of government policies that, through an interesting system of incentives, encourage foreign investment. and among which are: the Investment Law, the Industrial and Trade Law Free Zones, the International Services Law, Fiscal Incentives for the Promotion of the Renewable Energy Law, the Law for the Reactivation of Exports, the Special Law on Public-Private Associations and the Investment Funds Law, the Law on Legal Stability for Investments and the Tourism Law.

This regulatory framework seeks to encourage investment, especially foreign investment, to contribute to the economic and social development of the country, increasing its productivity, generating employment, promoting the export of goods and services, and promoting the diversification of national production.

The Government is working to continue guaranteeing a favorable business climate for investment, advancing in the implementation of public policies in the areas of security, economy, technology and innovation, as well as in the development of infrastructure for the development of productive activities in a sustainable way successful.