Taiwanese garment manufacturers with factories in Central America could axe their production plants due to sluggish business and cultural differences.

According to a report in the Liberty Times, labour disputes and a slump in demand for their products may force the firms to axe the plants and shift production to other countries such as Vietnam.

Many Taiwanese textile makers have set up factories in Central America in recent years as they look to take advantage of its close proximity to the lucrative US market.

However, the paper said many are now looking to relocate as the situation has soured due to flagging business and workforce problems caused by language and cultural barriers.