Browse Honduras Daily Stories

Chinese-backed stores expanding across Honduras since the 2023 diplomatic opening have left small merchants reporting sales drops of up to 70% and facing unfair competition through alleged tax breaks and inflated rent bids, prompting calls for equal regulatory oversight.

Small business owners in three Olancho municipalities are protesting the possible opening of Chinese-owned retail stores, saying they cannot compete and fear loss of sales and income.

The head of Honduras's small-business chamber, Victorino Carranza, called on Congress's recent electricity system reforms to cut operating costs for micro and small enterprises, saying companies should pay only for energy consumed and that unpredictable rates now hamper financial planning.

José Castañeda, president of Honduras's small and medium enterprise federation, argues that weak domestic production and outdated economic policies—not Chinese immigrants—are the real obstacles to Honduran competitiveness, as Congress investigates the entry of approximately 13,000 Asian citizens since 2022.

Economic Development Minister Eddy Ordóñez said the government is shifting from steep fines to warnings and guidance for small businesses, has conducted over 1,500 compliance trainings, and expects to announce a manufacturing-sector expansion creating more than 1,600 jobs.