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GUATEMALA APPAREL AND TEXTILE INDUSTRY

Guatemala Apparel and Textiles Industry

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Presentation made by Mr Juan Carlos Prato, VESTEX (Assn of Textile & Garment manufacturers), Guatemala at the India LAC Investment Conclave. The conclave is being organised by FICCI in New Delhi. More details at indialacconclave.com

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Page 1: Guatemala Apparel and Textiles Industry

GUATEMALA APPAREL AND TEXTILE INDUSTRY

Page 2: Guatemala Apparel and Textiles Industry

INDUSTRY IN GUATEMALA• Guatemala is the largest country of the Central American region,

both in terms of production (GDP) that amounts to US$55 thousand million, and in terms of a population of 15.6 million inhabitants. It is also the most diversified economy.

• The apparel and textile Industry represents 4% of the country´s production (GDP) and 19% of industrial production (industrial GDP).

• The apparel and textile sector includes 149 apparel manufactures, 39 textile mills, and more than 200 services and trimming companies and 18 agents.

• The industry generates more than 90,000 direct and indirect jobs, of which 46% are held by women.

Page 3: Guatemala Apparel and Textiles Industry

INDUSTRY ADVANTAGESo This industry believes in performing responsibly and for

that reason it abides by national and international laws.o The apparel and textile industry in Guatemala has

evolved over the years to meet customer needs: in response time, quality, supply chain integration

and technologyo The country has 12 active Free Trade Agreements with

USA, México, Panama, Colombia, Chile, DR, Customs Union with El Salvador, Ecuador, Belize, Cuba, Venezuela, Taiwan, EU.

o The evolution of this industry has strengthened the value chain of our goods, leading to export higher quality goods that bring greater benefits to the country.

Page 4: Guatemala Apparel and Textiles Industry

EXPORTS OF GUATEMALA 2012-2013

0.0

200,000.0

400,000.0

600,000.0

800,000.0

1,000,000.0

1,200,000.0

1,400,000.0

1,600,000.0

Apparel & Textile

Sugar Coffee Banana Metals Oil and fats Bevarages Dryed fruits

Plastics Petroleum

Year 2012 1,414,551.2 803,015.0 958,113.3 499,847.3 612,930.5 360,978.3 321,511.2 204,886.6 299,242.9 291,675.6

Year 2013 1,512,048.3 941,901.9 714,522.7 623,435.2 482,676.1 361,835.5 338,005.8 303,426.6 290,397.7 277,345.4

Millions of US

Page 5: Guatemala Apparel and Textiles Industry

Top products produced in Guatemala

70% of exports

Page 6: Guatemala Apparel and Textiles Industry

INDIA as a potential investor in Guatemala

October 2014

Page 7: Guatemala Apparel and Textiles Industry

FIBER IMPORTS TO GUATEMALA

Imports from Asia Region 10.92%

Page 8: Guatemala Apparel and Textiles Industry

YARN IMPORTS TO GUATEMALA

Imports from Asia Region 33.08%

Page 9: Guatemala Apparel and Textiles Industry

FABRIC IMPORTS TO GUATEMALA

Imports from Asia Region 60.73%

Page 10: Guatemala Apparel and Textiles Industry

TRIMMINGS IMPORTS TO GUATEMALA

Imports from Asia Region 28.38%

Page 11: Guatemala Apparel and Textiles Industry

Facts & PotentialoGuatemala imports more than than a third of its raw

material in order to integrate its supply chainoGuatemala has the largest appare & textile industry within

the regionoAs a strategy Guatemala is focused into accessing new

markets such as Europe and México. The rules or origin varies in each trade agreeement which represents an opportunity of sourcing for new raw material

oGuatemala has a lack of textile offer, therefore the imports focused more into fiber, yarns and fabric

oThe total imports of Guatemala are 530 million US dollarso India´s market share of the imports is 26 million US dollars,

which represents 5% of the market shareoNeed of synthetic and cotton textile mills in Guatemala as

the region

Page 12: Guatemala Apparel and Textiles Industry

The only apparel and textile

tradeshow in the region is held in Guatemala and

organized by the Association