Investment Opportunities in Honduras and El Salvador

by | Mar 31, 2025 | FDI Latin America

Honduras and El Salvador are jointly charting a path toward the productive integration of their border region to attract foreign investment and establish a strategic economic corridor. Recognizing the potential for economic transformation, both nations are implementing a comprehensive plan that aligns infrastructure development with business incentives to create an attractive investment destination.

Historically left behind in economic development, the border area between Honduras and El Salvador is about to turn a new page. With a shared agenda, both countries have agreed to collaborate in transforming the southeastern region into a regional investment hub. The primary objective is to leverage geographic advantages and sectoral strengths to present compelling investment opportunities in Honduras and El Salvador.

Both nations are betting on a logistics and industrial strategy that could reshape the economic landscape of the Northern Triangle. By enhancing connectivity and facilitating trade, they aim to stimulate economic activity, generate employment, and attract sustainable investments that will contribute to long-term regional development.

A Shared Vision with Presidential Backing

This initiative is not occurring in isolation. It is part of broader commitments made by Presidents Xiomara Castro and Nayib Bukele, who are advancing an economic diplomacy agenda through concrete plans and initiatives. Their administrations recognize that regional cooperation is crucial to overcoming historical economic challenges and ensuring that growth benefits all regions of both nations.

The recent high-level binational technical meeting brought together officials from the National Investment Council (CNI) of Honduras, the Office for Investment Promotion, and their counterparts from El Salvador. During this meeting, they defined key actions aimed at attracting sustainable investments and positioning the region as a competitive platform in the international arena.

The technical teams focused on five strategic sectors: agribusiness, tourism, infrastructure, manufacturing, and energy. These industries hold transformative potential for the region and offer direct access to the Pacific Ocean, a key point in global value chains. By fostering growth in these sectors, Honduras and El Salvador seek to provide a fertile ground for foreign direct investment while ensuring sustainable economic benefits for local communities.

Dry Canal, Ports, and Border Crossings

One of the agreement’s most significant pillars is integrating key infrastructure: Honduras’ Dry Canal, El Salvador’s Port of La Unión, and Puerto Cortés. These considerable projects represent critical logistical assets that can enhance the movement of goods, making the region a key node in international trade.

In addition to these significant projects, border crossings will be modernized to facilitate the flow of commerce and reduce bureaucratic bottlenecks that have historically hindered trade. The modernization efforts will allow businesses to operate more efficiently, improving the overall investment climate.

Representatives from both delegations emphasized the importance of these efforts: “The objective is clear: to transform the southeastern region into an efficient and competitive hub within international value chains.” With improved infrastructure and a commitment to streamlining trade, the governments of Honduras and El Salvador are working to unlock significant investment opportunities, creating an economic environment that attracts multinational companies and regional enterprises alike.

A Binational Presentation of Opportunities

Both countries have agreed to move forward with a Binational Presentation of Opportunities as part of the strategy. This initiative will showcase the competitive advantages of investing in the border region between Honduras and El Salvador. The presentation will accompany a joint country profile, a trade mission in October, and coordinated participation in the Regional Expo Fair in June, with support from the Honduran Ministry of Foreign Affairs.

These coordinated efforts align with CNI’s Vision 2030, which includes Guatemala’s consolidation of an integrated regional investment offering. By working together, these three nations aim to create a unified investment region that appeals to international markets and enhances economic resilience.

A Strategic Corridor for Development

Southeastern Honduras and eastern El Salvador have historically been marked by migration and economic stagnation. However, this narrative is shifting. Today, the region is emerging as the heart of a new cross-border economic corridor, capable of attracting investment in dynamic sectors such as clean energy, export-oriented agribusiness, and sustainable tourism.

By focusing on these high-growth industries, the governments of both countries are addressing long-standing development gaps while opening new economic frontiers. The commitment to creating a stable, business-friendly environment ensures that companies considering expansion will find compelling investment opportunities in Honduras and El Salvador.

A Border That Unites, Rather Than Divides

At a time when regional challenges seem to be multiplying, Honduras and El Salvador are opting for a bold response: integration as a path to development. By fostering a shared economic vision and implementing concrete measures to support investment, both countries are demonstrating that cooperation yields tangible results.

This binational cooperation represents more than just an economic alliance; it is a geostrategic vision aimed at integrating both countries into 21st-century trade routes. By developing a robust, connected, and sustainable logistics platform, Honduras and El Salvador are ensuring that their economies remain competitive in an increasingly globalized world.

With agreements that go beyond rhetoric and an ambitious yet tangible vision, both nations are laying the foundations for a new economic narrative in Central America. The southeastern region will no longer be a forgotten borderland but rather a regional growth engine where investment and cooperation drive prosperity. If the roadmap is successfully implemented, investors will discover unparalleled investment opportunities in Honduras and El Salvador, transforming the region into a beacon of economic progress for the entire Northern Triangle.