Doing Business in Honduras

Subject (Course): International Trade and Business in Honduras - Tegucigalpa. Syllabus:

1. Introduction to the Republic of Honduras (Central America).
2. Honduran Economy.
3. International Trade of Honduras.
4. Foreign Direct Investment (FDI) in Honduras.
5. Doing Business in Tegucigalpa and San Pedro de Sula.
6. Case Study: Business Opportunities in Honduras:
   - Manufacturing
   - Textile
   - Agribusiness
   - Services
7. Introduction to Spanish
8. Access to the Honduran Market
9. Business Plan for Honduras

Objectives of the subject “Doing Business in the Republic of Honduras”:

1. To analyse the Honduran economy and foreign trade
2. To evaluate business opportunities in the Republic of Honduras
3. To explore Honduras' trade relations with the student's country
4. To know Honduras' Free Trade Agreements (FTAs)
5. To develop a business plan for the Honduran Market

Sample of the subject - Business in Honduras

Subject Description: Foreign Trade and business in Honduras.

The Republic of Honduras.

Honduras is governed by a democratic system with steady institutions, a transparent legal system, and political and social stability since 1980.

1. Honduras is situated in the heart of the American continent. Only two hours by air and 48 to 72 hours by sea to the United States
2. Honduras has a population of 8.7 millions of people
3. Capital: Tegucigalpa
4. Area: 112,492 square kilometres
5. Honduras shares borders with Guatemala, El Salvador, and Nicaragua.
6. The main language: Spanish.
7. The main religion in Honduras: Christianity - Catholicism (7 million) and Protestantism (1 million)
8. Honduras belongs to the Latin American area of the Western Civilisation
9. Honduras gained independence from Spain in 1821
10. Abolition of slavery in Honduras: 1824
11. African Diaspora in Honduras: 0.1 millions of people (2% of the Honduran population)

Honduran Economy.

1. The Republic of Honduras is an interesting place to do business in Central America
2. In the last years, 300 companies have established operations in the Republic of Honduras (America) under “maquila” - (manufacturing and light assembly) in sectors such as textile and apparel, agro-industry, automotive components, electronics, and furniture production,
3. Honduras is near the production centres of North America and the biggest market in the World.
4. Honduras is today the hub of the Central American garment industry.
5. Honduras serves as a distribution platform to regional markets of Central America, among the lowest logistical costs in the region.
6. The main Honduran economic activities are financial services, communications, manufacturing, trade, agriculture, livestock, forestry, and fisheries.
7. Agribusiness represents 40% of the GDP of Honduras.
8. Honduran Currency: Lempira

Emerging Sectors in Honduras:

1. In traditional sectors (agriculture, textiles, tourism)
2. In value-added industries (agribusiness, sustainable tourism, light manufacturing, and business services)
3. A flexible manufacturing sector, capable of exporting in varying scales, supported by a favourable tax and customs code
4. A growing services sector
5. A tourism sector that attracts international travellers
6. A forestry industry that supplies a broad variety of non-traditional wood species 32 million hectares (80 million acres) at highly competitive prices, with different climates and a large potential for low irrigation agriculture

The main business opportunities in Honduras:

1. Traditional sectors: agriculture, textiles, and tourism
2. Value-added industries: agribusiness, sustainable tourism, light manufacturing, and business services.

Foreign Trade of Honduras.

1. Exports of the Republic of Honduras are led by the activities related to the maquilas.
2. The total Honduran exports grew by 7.2%.
3. Honduras is the third largest exporter of apparel to the US market.
4. The main markets of Honduran export: the United States, the European Union, El Salvador, Guatemala, and Mexico.
5. Major importers of Honduras: the United States, Guatemala, El Salvador, the European Union, and Costa Rica
6. Puerto Cortés is the only deep-water port in Central America; is the engaged (busiest) among Honduran and Central American ports.
7. Construction of the Inter-oceanic Highway will allow communication by road between the Atlantic and Pacific oceans
8. Laws that protect and promote foreign direct investment provide export-oriented companies fiscal and legal incentives highly favourable to investment.
9. Any part of Honduras can be an Industrial Processing Zone/Free Zone where companies are exempt from all taxes.

FIDE Investment and exports is a private non-profit organisation that works in partnership with Government and other private agencies to improve the business climate in Honduras and promote foreign direct investment (FDI).

Honduras' Free Trade Agreements (FTA) and Market Access

1. Central American Integration System (SICA)
2. Central American Common Market - Integrated with SICA -
3. Products and services from Honduras have direct access to many international markets thanks to Trade Agreements with the United States, Canada, Colombia, Panama, Central America, the Dominican Republic, Mexico, Japan, the European Union, Taiwan, Chile, or Australia.
4. Association of Caribbean States (ACS)
5. Mesoamerica Project

Honduras is a member of:

1. Latin American and Caribbean Economic System (SELA)
2. Bolivarian Alternative for the Americas (ALBA)
3. Economic Commission for Latin America (ECLAC)
4. Inter-American Development Bank (IDB)
5. Organisation of American States (OAS)
6. Forum for East Asia Honduras
7. Africa-South America Summit (ASA)
8. World Bank (WB)
9. International Monetary Fund (IMF)
10. World Trade Organisation (WTO)
11. United Nations (UN)

Taiwan-Honduras FTA

Canada-Honduras