Economists and public officials who oversee business and industry in Costa Rica are extremely worried about the ongoing exodus of foreign firms that are moving their operations to other countries. This bleeding of capital has been taking place over the last few years, and it became exacerbated in recent days with the announcement of a textile manufacturer moving to Vietnam and laying off 1,250 workers.

 

Cartex, a textile manufacturer better known for its affiliation with major underwear brand Hanes, is the latest “maquiladora” to leave Costa Rica. According to a DPA wire report published by online daily El Pais, Cartex is part of an unpleasant trend of textile firms that have been packing their bags over the last six years. The economic fallout is considerable: More than 10,000 jobs have been lost in the textile sector alone.

 

As previously reported by The Costa Rica Star, the high-profile departure of Intel’s chip manufacturing operations a few months ago seemed like a harbinger. Both Cartex and Intel chose Vietnam as their new outsourcing partner, but the chip manufacturer still operates a research and development center here. Bank of America and various other  outsourcing operations have also ceased their operations in our country, leaving behind hundreds of people unemployed.

 

To add insult to injury, even domestic firms are downsizing and seeking greener, meaning cheaper, pastures. Plastics manufacturer Yanber plans to lay off close to 200 workers as it increases its operational presence in Nicaragua. Yanber executive Samuel Yankelewitz explained to Tatiana Gutierrez of online daily CRHoy.com that the company’s motivation for moving to Nicaragua is based on cost reduction. He also mentioned that he knows of Costa Rican companies in the agricultural sector that are weighing cheaper options elsewhere in Central America.

 

CRHoy.com also cited comments from a former president of the Union of Private Business Chambers, who explained that salaries are a major consideration when it comes to companies leaving our country. Whereas in Costa Rica a skilled worker’s salary plus mandatory contributions to the public health system, welfare schemes, employee associations, disability fund, taxes, that pesky aguinaldo, and liability insurance can easily reach $1,000 per month, in Nicaragua a similar employee would cost less than $275 per month.

 

According to an article published by online publication Around in Vietnam, the average monthly salary in that Asian country was around $150 in 2013.