Presidente Lic. Danilo Medina
The president of the Dominican Association of Free Zones (ADOZONA) Jose Tomas Contreras revealed yesterday that the sector accounts for 3.2% of GDP, 10% of cumulative foreign investment, 12% of formal employment in the private sector and more 50% of exports.
Delivering a speech at the monthly luncheon of the entity chaired by President Danilo Medina held at a hotel in the capital, Contreras said that according to the Treasury of the Social Security that put the industry zones between the major contributors to the system, to exceed the figure of RD $ 4.700 million annually.
He also said that in the tax area, we are pleased to announce that the Directorate General of Internal Taxes (DGII) announces that free zones exceeded last year’s figure of RD $ 41,000 million in local purchases. “This means the purchase of goods and services to companies and industries that serve the domestic market to support the manufacture of products to be exported by the companies in the free zones,” he said.
ADOZONA’s president said that despite the enthusiasm and positivism that prevails in the Dominican free zones, you should pay attention to international events that are happening and that can have a negative impact on the country.
He drew attention to the recent development of the Free Trade Trans (TPP), which will provide access to the US market on highly concessional terms to countries such as Vietnam, Malaysia, Singapore and Japan among others.
“This arreciará competition and impose more pressure on our exports, particularly in the sub sectors of textile and footwear in free zones,” said the engineer Contreras.
He considered that to face this new challenge “is required to develop a public-private strategy that allows us to identify concrete actions to improve the country offer”.
Contreras said that the rate of formality in employment in the sector is 100%, so that in addition to providing decent work, that condition favors employees providing adequate protection through the Social Security System in Health , labor and pension risks.
“This reality has also favored enterprises, promoting the necessary job stability, as evidenced by the low staff turnover rate,” he said.
Motorized says trade zones
During the course of lunch, Sultan Ahmed Bin Sulayem, Dubai, where he gave a lecture highlighted the development of free zones in the country and how the Dominican Republic can benefit from the experience.
Ahmed Bin Sulayem said that free zones help to motorize the global supply chain, to develop trade and create business.
He added that they also share a common legacy “there are hundreds, if not thousands, around the world, facilitating the movement of goods and products to the markets without interruption.”
“I noticed that free zones represented a misunderstood concept, the governments envisioned as a place where companies took advantage to avoid paying taxes and duties and is not,” he said.
Adozona the monthly luncheon, attended by businessmen linked to the sector as well as government officials such as Jose Ramon Peralta, Gustavo Montalvo, among others.
Article published at Diario Libre