Nicaragua

The apparel industry is one of Nicaragua’s most important manufacturing sectors in terms of employment generation and national income, and is seen as crucial for the future growth of the Nicaraguan economy. In February 2010, the sector comprised 70 factories that employed around 51,300 workers, the majority of whom are women. These factories are located in four major areas of the country, namely in Managua, Masaya, Granada and the Pacific coast. Garment industry investors are primarily North Americans, Nicaraguans, Mexicans, Koreans and Taiwanese.

Within the global apparel industry, Nicaragua has a comparative advantage based on: (i) its proximity to the US market; (ii) its low labour costs; and (iii) the financial incentives offered to investors within the export processing zones. Notwithstanding, Nicaragua faces strong competition from China, Vietnam and other Asian apparel exporters. In addition, the Nicaraguan Association of the Textile and Garment Industry (ANITEC) claims that the sector has still not completely recovered from the negative impact of the global economic crisis. In 2009, several factories in the free-trade zones had to decrease their production or even close their operations due to reduced demand from the United States. Indeed, exports to the US market in terms of volume have decreased by around 5 per cent in 2009. However, since the beginning of 2010, signs of improvement have become visible. In January and February 2010, two new factories have opened.

The Better Work Nicaragua team is now is place and factory registration is available. Assessments are scheduled to begin in autumn 2011.

For more information on Better Work Nicaragua, please contact:

Better Work Nicaragua
Ofiplaza El Retiro
Edificio 8, Oficina 826
Managua, Nicaragua
Tel. (505) 2254 7995/96

Better Work Nicaragua is funded by the United States Department of Labor.