Over the past two decades, one of the most significant developments in the garments and textiles industries has been the rise of the global manufacturing triangle, consisting of American and Western European retailers and distributors, East Asian contractors, and Caribbean manufacturers.
This study examines East Asian garments and textiles manufacturing investment in Honduras, as an increasing number of East Asian firms have relocated their production units in Export Processing Zones in Honduras.
Data was collected from personal interviews with government officials and East Asian manufacturers in Honduras and various statistical sources.
The study argues that East Asian manufacturers have invested in Honduras not only for lower wages and its proximity to the US market but also for the Honduran government’s business friendly policies and the import quotas imposed by the US government. Helped by East Asian manufacturers’ investment, Honduras has emerged as a global production site of garments and textiles.