El Salvador is entering a pivotal era for industrial growth, according to the country’s leading industrialists. Backed by a favorable global trade environment and strong domestic conditions, the Salvadoran Association of Industrialists (ASI) has launched the Industrial Plan 2025–2029, aiming to accelerate economic development and expand the nation’s position in international trade.
This initiative follows the establishment of the Industrial Council of El Salvador in April, and aligns with President Nayib Bukele’s broader economic strategy for his current five-year term. The plan lays out 12 major objectives to foster collaboration between the private sector, government, and academia, with a focus on production, innovation, and industrial sustainability.
Karla Domínguez, ASI’s Manager of Industrial Intelligence, noted that El Salvador is uniquely positioned to benefit from current global trade dynamics, particularly due to its strong diplomatic and commercial relationship with the United States. “The U.S. tariff policies are affecting other destinations more severely than us, and that opens an opportunity for El Salvador to gain ground,” she said in an interview with Diario El Salvador.
Among the country’s top competitive advantages is its geographic location at the heart of the continent, making it highly accessible to the U.S. market. Domínguez emphasized that El Salvador could become a key supplier of raw materials, finished products, and services as global markets pivot away from Asian sourcing.
The ASI plan also includes the development of a new industrial zone in the eastern region, leveraging national infrastructure projects such as the Pacific Airport, the reactivation of La Unión port, and the dry corridor to Puerto Cortés in Honduras.
Key components of the 2025–2029 strategy include:
- Training 20,000 youth for industry-ready jobs
- Boosting production of goods and services
- Expanding value chains and markets
- Developing innovation and technology hubs
- Improving infrastructure and industrial policy frameworks
“The plan is rooted in the idea that poverty is fought through production,” said ASI President Jorge Arriaza. “There is no other sustainable path to growth.”
The industrial sector currently represents 12% of El Salvador’s GDP, generates 96.3% of all goods exports (over $6 billion in 2024), and provides 23% of formal employment, with more than 235,000 jobs, according to the ISSS.
El Salvador’s favorable conditions — including political stability, pro-business reforms, and strategic global positioning — are driving optimism about its potential as a rising industrial power in Latin America.
