The President has institutions to identify new investments in 90 days to increase existing ones in free zones and prioritized sectors.
Santo Domingo. – More and more companies are set up in free zone parks, a special regime that provides facilities to this sector, through which the Dominican economy achieves a large injection of foreign investment.
The president of ADOZONA, Luis José Bonilla Bojos. This sector also generates foreign exchange and jobs and contributes to boosting the economic sector, for which the government of President Luis Abinader has trusted that its development to face the effects of the COVID-19 pandemic.
This Thursday the National Day of Free Zones was celebrated, with an activity led by President Luis Abinader. On the occasion, the event “Free Zones, Opportunity Zones” (ZFZO) was held, where the positioning of the Dominican Republic as a regional model of this sector was demonstrated, with a historical growth in exports of 884 million dollars, equivalent to 32.2% in the first half of the year compared to the same period of 2020.
The sector, which has become one of the main engines of economic recovery and job creation, also achieved an increase of 21.0% compared to the same period in 2019, before the pandemic, according to the data provided. in the event, organized by the Dominican Association of Free Zones (ADOZONA), in coordination with the Ministry of Industry, Commerce and MSMEs (MICM), with the special support of the National Council of Export Free Zones (CNZFE) and the participation of Gustavo González, president of the Association of Free Zones of the Americas (AZFA).
Millions of dollars in investments
Likewise, it was reported that in the first semester of 2021, exports showed a growth of 28%, going from 4,492.8 million dollars in the same period in 2020, to 5,751.6 million dollars in the same period of 2021, a difference of 1,258.8 million dollars which are driven, to a large extent, by free trade zones, which account for 70% of this growth.
These results, which reflect the potential reached by the free zones with their diversification, are evidenced in the performance of different subsectors, among them, tobacco and its derivatives, which exhibited an extraordinary growth of 80.3%, as well as textiles that grew by a 73.6%, followed by electrical and electronic products with a growth of 10.1% and, finally, medical and pharmaceutical devices, the subsector with the highest participation, which grew by 3.7%.
700 million in exports
The president of ADOZONA, Luis José Bonilla Bojos, said that if this growth rate is maintained, it is very likely that the Free Zones will close in the year 2021, for the first time in history, with an export level of 7,000 million dollars. He also stressed that this growth is due to legal stability, respect for the business conditions of the sector, and in large part to the public-private alliance, which in this Government has been fundamental.
“The free zones, with its 77 industrial parks, 700 companies, and its more than 172,000 collaborators, present in 25 of the 32 provinces, is the platform our country has to make the most of the current realities of international markets,” said Bonilla Bojos.
The MICM minister, Víctor -Ito-Bisonó, on the opportunities offered by the sector, highlighted that previously 70% of the managerial positions of the multinationals installed were held by foreigners. “Today we proudly say that 90% of these positions are occupied by Dominicans. The free zones are much more than areas of work and production, they are areas of pride, of growth, they are areas of opportunity for all Dominicans. ”, He stressed.
Abinader has to identify new investments in 90 days
President Luis Abinader instructed that a review process be initiated, in consultation with the private sector, to identify the opportunities and challenges that have arisen for the Dominican Republic as a result of the reconfiguration of global supply and value chains, as well as nearshoring, whose main purpose is to identify new investments and increase existing ones in free zones and prioritized sectors.
The disposition of the president instructs the MICM to direct the work, the Ministry of Foreign Relations (MIREX) and the National Competitiveness Council (CNC), in order to produce a report whose elements are composed of a survey of the economic sectors that have the potential to take advantage of the process of reconfiguration of these chains for the country.
International speaker
Likewise, Gustavo González, president of the AZFA, described the free zone regime in the Dominican Republic as an example of success for the world and stressed that the keys to this success have been legal security, the institutional support of the Government, and the public-private collaboration, which has allowed a sustained growth of the sector, the generation of formal jobs and economic diversification.
In 2020, the MICM, ADOZONA, and the CNZFE presented the plan to relaunch free trade zones as the ideal formula to attract foreign investment, generate jobs, and achieve a sustained increase in exports, which are the main generators of foreign exchange and development. for the country. The Dominican Republic exports products to more than 135 countries, several of which have reached the category of world leaders.
Source:
Diario Digital RD
