Many are concerned about whether new factories of different products can be established in the Venezuelan market. Being a country with a volatile economy and a deep political situation, economic growth projections are not always favorable. But Venezuela has proven to maintain its commercial activities, while at the same time satisfying needs by importing those products that have not been manufactured here. The truth is that the low competition of national brands has led to the positioning of new brands every day, as it happens in the food industry. In that sense, in this article we will delve into some reasons to open a factory in Venezuela.

Can new factories be opened in Venezuela?

Throughout these years, it has been seen that there are different investment opportunities in conventional and non-conventional areas. Much of this progress has been made thanks to the use of foreign currency in the country's banks. Given that in a macroeconomic environment where the bolivar is in an unfavorable position, the dollar and other currencies have been able to replace the use of the national currency in the country's large commercial activities.

This has allowed companies already established in the country to begin with the technological modernization of their processes, since they no longer depend on the state to acquire foreign currency. Consequently, the chemical and food industries have been able to increase their production to counteract the effects of the shortage of goods experienced in previous years. In this sense, if it is possible to open a factory in Venezuela, what is needed is to identify the business opportunity that will make it sustainable over time.

Risky business terrain with high returns in emerging markets

From these experiences, companies manufacturing household cleaning products and companies dedicated to the production of flour have managed to maintain their operations in this risky environment. In fact, Venezuela appears as an emerging market in different industries, due to its high raw material production capacity. Thanks to this, many foreign businessmen have been able to understand that Venezuela's situation can be taken advantage of. At the same time, alternatives to the traditional commercial processes are being proposed, such as the case of online sales where the product can be sent anywhere in the world. Or electronic currency exchanges, which have proven to work as tools to combat inflation in different parts of the world.

While it is true that Venezuela is a land of many businesses, these also have many risks. You should be accompanied by lawyers and other experts who can identify the risks inherent to your business activities and avoid them in practice.

Slight approaches that promise new investment opportunities

One of the most evident examples observed in 2021 is the commercial exchange between Venezuela's border areas. In the case of states such as Mérida and Trujillo, textile factories have been consolidated that cooperate and trade with neighboring areas of Colombia and the rest of the world.

Entrepreneurs in the area have been able to establish commercial relationships that allow for the profitability of their businesses. And thanks to foreign capital investments, they have been able to modernize their facilities to establish new fabric and shoe factories.

One example of these factories is the Discovery Factory who specialize in the manufacture of safety footwear. This factory is located in the Capital District and with the help of private and public capital has been able to begin exporting its products without neglecting domestic demand. They have been able to achieve this thanks to the modernization of their machinery, which allows them to have better performance and production.

Opportunities in the manufacture of tires and other products

In the case of economic activities in Venezuela, there are many investment opportunities in different industries. The manufacture of tires and other plastic and oil derivatives is one of the opportunities that have always been present. In fact, before many companies sold their assets to the State, they used to produce and export this type of products. Currently, production cannot compete against tire imports, but with a manufacturing project it is possible to increase domestic production.

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