Guatemala's Emerging Industrial Hub

By Mayora IP

Guatemala's industrial sector is poised for potential growth with the development of an industrial park aiming to be the largest industrial park in Central America. Located in Escuintla, Synergy Industrial Park is designed to cater to businesses in logistics, manufacturing, and production.

According to Invest Guatemala, a government agency promoting foreign direct investment, Synergy Industrial Park boasts a vast area of over 4,700 hectares, roughly equivalent to a quarter of Guatemala City.  This large-scale project is planned for development in phases, offering a variety of options to suit diverse business needs.

The park is situated with easy access to major highways, placing it within 50 kilometers of both the Pacific port and Guatemala City. This accessibility offers businesses proximity to a readily available workforce, as well as cost-effective energy and water supplies.

The project is part of the Partnership for Central America (PCA), an initiative led by the U.S. government that seeks to create economic opportunities through the creation of decent and inclusive jobs in Northern Central America.

The development of the park is one data point in Guatemala's evolving industrial landscape. According to the World Bank's Doing Business Report 2020, Guatemala ranks 99th out of 190 economies on the ease of doing business metric. The report highlights areas for improvement, such as obtaining construction permits and dealing with traders across borders.

However, Guatemala also offers potential benefits for businesses considering the region. The World Bank report points to Guatemala's relatively low corporate tax rate of 25% and its strategic location within Central America.