Discover Guatemala's attractive garments & textiles sector

According to InvestInGuatemala, the supply chain in the garments and textiles industry in Guatemala also includes a myriad of companies related to accessories and services, yarn industry, buttons, labels, and logistics services.

Total production by the garments and textiles sector in guatemala was US$1.2 billion in 2012. Foreign Direct Investment in the sector between 2007 and 2011 totalled US$210 million. This is a sector that employs 90,000 people, 46% of which are women. More than 80% of the exports in this sector go to the United States. 

The key factors of success for this sector in Guatemala are: (i) Garments and Textiles Industry Association (VESTEX), a cluster in charge of promoting the sector through technical assistance, training, information, marketing, exports promotion, and contacts at international and governmental levels, (ii) Guatemala boasts 140 garments companies, 41 textiles and yarn plants, and 260 companies for accessories and services, (iii) free trade zones in Guatemala provide the perfect opportunity for establishment. As of December 2012, Guatemala had 18 free trade zones registered under the Decree 65-89, located in the main zones of the country. There are other fiscal incentives for those who invest in this sector, and (iv) the labor related to this sector has more than 30 years of experience. It is renowned for its skill in manufacturing products under high quality standards. This, added to the different training programs from institutions like INTECAP, the Garments and Textiles Industry Association -VESTEX-, and the different higher education programs at local universities in Guatemala, provide the sector with skilled labor for the quality requirements demanded by this sector.

For more information on the specific benefits of DR-CAFTA and tariff preferences for the sector, free trade zones, main products, main export markets, and more. please click here.