Honduran Minister of Industry and Commerce Jose Adonis Lavaire visited the ROC Ministry of Economic Affairs’ Department of Investment Services June 6 to exchange views on enhancing investment relations between the two countries.
In their meeting, DOIS Director-General Chiu Yi-cheh raised the issue of recent minimum wage, petrol price and electricity rate hikes in Honduras that have resulted in steep increases in production costs for Taiwan companies operating there, as well as the difficulties they face in obtaining bank financing, the department said.
In response, Lavaire noted that the Honduran government reached an agreement last year with enterprises in the country on the minimum wage issue and that basic salaries are not likely to rise further in the near term.
As for energy prices, Lavaire pointed out that average prices were adjusted slightly downward last month, adding that although the minimum wage and energy prices have gone up, the efficiency of Honduran export processing zones is extremely high.
Honduras’ free trade agreements with Canada, Colombia, the EU and U.S., among others, provide another advantage to setting up business operations in his country, he noted.
Lavaire said the trouble Taiwan firms have getting financing stems from the low level of banking automation in his country and shortcomings in the financial system.
Noting that the Export-Import Bank of the ROC is currently the only Taiwan bank engaged in cooperation with Honduran banks, the minister recommended that more Taiwan banks establish bases of operation in Honduras to provide financing to Taiwanese enterprises, and expand their services to ordinary citizens.
Chiu pointed out that Taiwanese businesses operating in Honduras are mainly in the textile industry. He recommended boosting bilateral cooperation involving Taiwan’s well-developed information technology and management sectors.
As Taiwan companies are relatively unfamiliar with the investment environment in Honduras due to language differences and geographical distance, Chiu suggested that the Honduran Ministry of Industry and Commerce regularly put on investment presentations in Taiwan introducing the nation’s competitive industries and business opportunities. (SB-THN)