In a recent interview, El Salvador’s Minister of Economy, María Luisa Hayem, revealed that several companies from Germany, South Korea, the United States, and other countries are nearing the start of their operations in El Salvador. These companies are reportedly motivated by favorable business conditions, including physical security and tax incentives offered by the country.
Minister Hayem stated that these companies are in advanced talks with the government, highlighting that many of these discussions originated from official visits. She cited the meetings held by President Nayib Bukele and members of his cabinet, including herself, with U.S. companies following their participation in the United Nations General Assembly, as well as similar engagements in Argentina.
“There are companies close to establishing operations in El Salvador, including firms from Germany, South Korea, and the United States, along with Argentine infrastructure and technology companies interested in investing here,” Hayem explained.
According to the minister, key factors driving this growing interest include the improved security situation in the country, streamlined business processes, and the digitalization of government services. A partnership with Google is playing a significant role in the latter area.
“If we didn’t have the security we do now, it would be hard to convince investors to initiate projects here […] The Investment Directorate of the Ministry of Economy handles these projects, and all paperwork can be completed digitally. Investors receive confirmation via email with my electronic signature,” she added.
Hayem also emphasized the importance of legislation, such as the Law for the Promotion of Innovation and Technological Manufacturing, in attracting investment. This initiative, which targets fast-growing sectors, has already made a significant impact on the national economy.
“The Law for the Promotion of Innovation and Technological Manufacturing has been in place for about a year, and over 30 companies have taken advantage of it […] Among the 31 registered companies, some are Salvadoran, while others are from the U.S., Canada, Ecuador, Bolivia, and Europe,” she noted.
Finally, Hayem pointed out that El Salvador is experiencing a substantial influx of capital through three main channels: reinvestment from long-standing businesses in the country, contributions from the Salvadoran diaspora, and new foreign direct investment.
“Many sectors are growing. We’re seeing various sources of investment. One comes from companies that have been here for years and have decided to significantly expand their operations. For instance, Bimbo recently invested $200 million. There’s also investment from the diaspora, particularly in the hospitality and tourism sectors, alongside foreign direct investment. It’s also important to mention the growth of small and medium-sized enterprises and startups,” she concluded.