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The best deal that the Dominican Republic can do as a state is to invest in the development of the free zone sector, since it has been shown that this activity yields RD $ 7.00 for each peso accounted for in the incentives.
José Manuel Torres, Director of the Dominican Free Zone Association (Adozona), who understands that tariff exemptions should not be considered as a tax expenditure. He asserts that inputs imported by the sector are re-exported.
A report submitted by Adozona to elDinero establishes that the Dominican Republic is among the leaders of the generation of formal jobs in Latin America with 165,724, exceeding Honduras (146,00), Nicaragua (115,050), Brazil (87,851), Costa Rica (82,086), El Salvador (74,000) and Colombia, which employs 67,605 people in the sector.
export line in the region with $ 5,695 million, surpassing Costa Rica (4,729 million), Chile (3,710 million), Colombia (3,093 million), Puerto Rico (3,000 million) and Nicaragua ($ 2,752 million) and El Salvador, which exports $ 2,521 million
. With regard to investment, the sector accumulates $ 4,474 million. 39 European Union, Canada, Brazil, Taiwan and South Korea. In operation, there are 665 distribution companies in 26 of the 32 provinces with a gross domestic product (GDP) contribution of 117,080.7 million R & D in 2017. The cumulative growth has been 43.3% over the past five years. years.
Promotion
The only thing that the Dominican Republic should do, emphasizes Torres, is to establish a stronger promotion strategy, although it recognizes the efforts made by the National Council of Zones of Free Trade (CNZFE), an entity that recognizes it as the ally of the public sector. "On other occasions, there have been major challenges in terms of legal certainty, fiscal pact, but I would say that the education and promotion part is currently the one where we have the most interest to work He says
. they should review the pensum to update them with topics, and in some cases careers, more in line with what the local industry requires. "There is a fundamental problem, that of bilingualism, according to which one of the sectors with the greatest growth potential is call centers, which has increased by 300% in the last four years. "he explains. He points out that the alliance with the National Institute of Technical Vocational Training (Infotep) has been very effective, entity that has prepared medical and electronic device operators. Indicates that any young person who integrates any of these courses into his or her curriculum has a better chance of getting a safe and decent job in the free zones.
According to him, the establishment of diplomatic relations with China, it opens a great moment to go to this big market to sell the free zones as a sector ideal investment. Affirms that the raising of capital is one of the main benefits that this new diplomatic scenario with the Chinese could have for the country. "In fact, a few months ago, President Danilo Medina opened an aluminum profile business in Monte Plata," he explains.
"The main thing to sell is to have a good product We have a very attractive law and a country with world-class port infrastructure, airports and communications, as well as access to major markets, "says Torres
. 39, it is still possible to make more foreign investment.It states that the conditions are now ripe for the country to redouble efforts and strengthens the CNZFE in terms of budget for the promotion.
Challenges and opportunities
The Executive Vice President of Adozona considers that among the main challenges he has The country, as far as the international environment is concerned, is identifying new markets. it, because the two-digit growth es registered so far this year is mainly due to the growth of the US economy, indicating that there is a strong dependence on the behavior of this market.
Explain that there is a problem to be solved with the frequency of ships because the volume of goods has increased because a large part of Manzanillo's exports now pass through the Multimodal Caucedo. "There is not enough space and we must give priority to perishable products, so that manufactured products remain for the next trip, resulting in delays of one and two weeks" he says.
A great opportunity for the Dominican Republic. Affirms that the export market is very competitive. Said that political and economic instability in other countries, unfortunate for them, has benefited the country because some of these investments have entered the country.
Torres claims that the port of Manzanillo is a pending issue concerning infrastructure in the country. , considering it as extremely necessary. He says that there is great potential in logistics operations.
Growth
According to the Executive Vice President of Adozona, between 2010 and 2017, the free zones exported goods for 40,866.8 million US dollars. If we compare the results of seven years ago, there is a 35% increase in the value of exports.
Regarding the main export activities in 2017, the CNZFE points out that the country exported $ 1,485.4 million equivalent to 26% of the total exported by the free zones during the year. last year. In second place were textile confectioneries with 1,067.8 million US dollars, or 19%, followed by electrical and electronic products in the amount of 883.1 million dollars, or 16%.
Exports of tobacco and derived products also occupy an important position with US $ 793.6 million, 14%. Meanwhile, total exports of footwear and its components amounted to US $ 391.3 million, or 7% of the total
Participation in the Cake
The Free Zone Sector has undergone remarkable diversification over the past decade. last seven years. In 2010, clothing and textiles accounted for 53%, while they now represent only 19%, depending on the value exported.
Medical and pharmaceutical devices, which were 7% seven years ago, are now 26%, electrical and appliance products have gone from 12% to 16% during this period. Tobacco and derivatives, as an activity, rose from 6% to 14% between 2010 and 2017. However, jewelry lost space from 10% to 7%.
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