VESTEXThe Apparel and Textile Commission of Guatemala that promotes exports and watchesover the interests of the industry through strategic alliances and lobbying with public andprivate entities at the national and international levels.

We are a highly productive, innovative and flexible sector composed of apparel companies, textiles mills, accessories and service companies, all of them working side by side in Guatemala and selling abroad.

The apparel and textile sector is nationally and internationally perceived as a competitive and responsible sector because of its versatility and speed to attend and respond with high quality products, always satisfying the clients and final buyers need.

Mission

Vision

Services for the textile industry

Representativeness

Integral Services ComercialOpportunities

Compliance Tools

Textile Industry Academy

Representativeness

Integral Services

The interests of the apparel and textile industry arerepresented in forums, spaces and national andinternational institutions, promoting initiatives thatallow the growth and sustainable development ofthe sector and its employees. This includes constantevaluation of new markets for garments made inGuatemala, as well as attention to investorsinterested in the country.

These were designed to give answer to all needs ofcompanies, providing timely information from specializedadvisers. Among the main services are:

•Directory of companies from thesupply chain•Weekly bulletin•Administration of international treaties•Consultancy in logistics and export processes•Consultancy in legal themes•Market requirements

•Strategic programs of corporate social responsibility•Resolution of doubts about requirements: legal, labor, fiscal and environmental•Maqcore: coreanbusinessmen.

ComercialOpportunities

Compliance Tools

VESTEX has as a priority to find andgenerate opportunities to present theexportable offer of the apparel andtextile industry. It focuses on fosteringan international network of contacts topromote the interest of potentialbuyers in the country through:

• Access to markets (use of free tradeagreements, benefits and advice)•Apparel Sourcing Show•Directory of the industry•Specialized international fairs participation•Contact with potential international buyers

A wide range of tools are available forcompanies to help exporters to beprepared to comply with the auditscarried out by clients and governmententities.

Certified auditors perform evaluationsto obtain diagnosis of the company.

VESTEX has the following compliancetools:

•Companies compliance under thedecree 29-89•Occupational health and safety•Environment•Labour / Organizational climate•Corporate social responsabilitypromotion activities.•Promote tax and accounting obligations compliance

VESTEX has created the academy for the textileindustry with the objective of professionalizing andstrengthening the human resource in a practicaland experienced – based way.

The Academy opens its doors with theManagement for the Textile Industry Diploma, aimedat supervisors and middle managers who wish todevelop managerial skills and improve their skillsfor decision making and conflict resolution.

GUATEMALA

Apparel and Textile Industry

8.9%National PIB

180,000Direct and indirect

employment

Its production is 2.5%and contributes with6.4% in otherindustries related tothe sector.

In apparel companies

46% are women.

Competitive Advantages

Infrastructure and integration of

Central America Market

Qualified workforce

Strategic location between two

oceans.

Innovation culture

Volume production flexibility

Integrated and complete supply

chain

• Accessories:

Buttons, zippers, labels, collars, laces

• Embelishments:

Embroidery, sublimation, serigraphy, dyeing

• Services:

Design, cutting, textile laboratory, transportand logistics

Apparel Companies

Textile Mills

Suppliers

Contractors

Supply ChainIntegrated by more than 290 companies:

Stage 1

Stage 2

Stage 3

Stage 4

Sew

Cut and sew

Cut, sew and use accessories

Full Package, Quick Response

Yarns + Fabrics + Dyeing + Cutting + Sewing + Screen Printing + Embroidery + Accessories + Chemicals

TO COMPETE IN THE INTERNATIONAL MARKET, APPAREL COMPANIES HAVE

MANAGED MORE COMPLEX PRODUCTION STAGES = GREATER VALUE

Free tariff access in different markets

Export StatisticsMarch 2018-2019

Source: Bank of Guatemala (BANGUAT)

Industry Exported Products

Synthetic trousers, pants and shorts for men,

women and children

Underwear

Hosiery

Knit tops for men, women and children (cotton and synthetic

Baby wear

Cotton knit dresses

Cotton and synthetic sweaters, pullovers

Cotton and synthetic skirts

Main export destinations

77%United States

*Central America 16%

México 2%

Canadá 1%

Other 4%

* Exports to the Central American market are mainly of yarn and cloth that are used for garments arriving to the United States.

10 Main export productsPeriod: 2017-2018Expressed in US$

0.00

200,000.00

400,000.00

600,000.00

800,000.00

1,000,000.00

1,200,000.00

1,400,000.00

1,600,000.00

Apparel articles

Sugar Banana Coffee Fats and oils

Cardamom Plastic Materials

Fruits Drinks Paper and cardboard

manufacture

2017 1,416,473. 731,628.30 724,772.70 764,089.10 519,273.30 317,153.70 297,703.10 263,405.70 303,283.20 218,051.00

2018 1,530,190. 765,162.30 656,927.00 571,660.80 512,663.40 370,573.30 295,731.30 290,505.40 290,360.20 272,150.90

$US Millions

Source: Bank of Guatemala

Export BehaviorPeriod: March 2018-2019

Expressed in US$

0

500

1000

1500

2000

2500

Traditional

Non traditional

Apparel and textile

Traditional Non traditional Apparel and textile

2018 775 2098 399

2019 783 2039 424

$US Millions

Source: Bank of Guatemala

United States Apparel Importin square meter equivalent

Source: International Development Systems

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

CHINA 34.32 40.45 41.98 40.81 41.73 41.75 42.03 41.84 41.50 41.91 41.92

VIETNAM 6.73 7.56 7.72 8.37 9.06 9.78 10.73 11.52 12.45 13.28 13.39

HONDURAS 5.87 4.72 5.14 4.96 4.72 4.32 4.23 4.09 4.01 3.80 3.56

MEXICO 4.56 4.14 3.85 3.96 3.79 3.66 3.58 3.30 3.27 3.09 1.79

EL SALVADOR 3.68 3.03 3.31 3.28 3.33 3.21 3.08 2.99 3.06 2.88 2.74

GUATEMALA 1.50 1.36 1.26 1.39 1.26 1.30 1.32 1.29 1.35 1.29 1.39

NICARAGUA 1.46 1.44 1.46 1.72 1.73 1.77 1.88 1.78 1.97 1.96 2.01

HAITI 1.02 1.10 1.14 1.23 1.22 1.24 1.24 1.20 1.31

-

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

Source: International Development Systems

United States Apparel ImportsMarket share in Square Meters Equivalent

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

HONDURAS 5.04 5.24 5.87 4.72 5.14 4.96 4.72 4.32 4.23 4.09 4.01 3.80 3.56

EL SALVADOR 3.20 3.47 3.68 3.03 3.31 3.28 3.33 3.21 3.08 2.99 3.06 2.88 2.74

GUATEMALA 1.89 1.61 1.50 1.36 1.26 1.39 1.26 1.30 1.32 1.29 1.35 1.29 1.39

NICARAGUA 1.12 1.22 1.46 1.44 1.46 1.72 1.73 1.77 1.88 1.78 1.97 1.96 2.01

HAITI 1.02 1.10 1.14 1.23 1.22 1.24 1.24 1.20 1.31

-

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Source: International Development Systems

U.S. Apparel Top Suppliersin SME and US$ 2018

Country 2018 2017 % 2018 2017 % 2017

SME SME change US$ US$ change SME valueTotal 27,841.58 27,081.93 2.80 82,880.76 80,171.98 3.38 2.98

China 11,670.30 11,358.35 2.75 27,371.07 27,009.44 1.34 2.35

CAFTA 2,985.97 2,953.86 1.09 8,342.04 7,935.22 5.13 2.79

Vietnam 3,727.33 3,599.49 3.55 12,219.09 11,551.03 5.78 3.28

Honduras 991.25 1,028.26 -3.60 2,568.89 2,460.95 4.39 2.59

México 850.04 835.1 1.79 3,362.63 3,568.03 -5.76 3.96

El Salvador 763.23 773.21 -1.29 1,907.68 1,906.85 0.04 2.50

Nicaragua 559.68 531.27 5.35 1,627.12 1,479.78 9.96 2.91

Guatemala 385.32 350.41 10.25 1,459.23 1,335.07 9.30 3.78

Haiti 365.51 323.35 13.04 916.47 857.77 6.84 1.51

Rep. Dom 283.63 268.63 5.59 761.62 732.78 3.94 2.69

Costa Rica 1.85 2.10 11.66 17.51 19.79 11.54 9.46

Main export markets of the Guatemalan Textile & Apparel Industry

• 79%United States

• 14%Central America

• 3%Mexico

• 1%Canada

• 3%Other countries

Total Apparel imports from United States by type of fabricBased on March 2019 – in Square Meters Equivalent

Knit apparel83.22%

Woven apparel16.78%

Source: IDS International Development Systems

Tariff Preferences used by Guatemala under CAFTA-DR AgreementData in US$ - Year ending Marc 2019

Source: IDS International Development Systems

14 calle 14-30, zona 13 2do nivel01013 Ciudad de Guatemala

Tel.: 502 2410 8323vestex@apparel.com.gt

www.vestex.com.gt