In his keynote address on the occasion of the opening of the CEI-RD Invest in DR Summit at the JW Marriott Hotel in Santo Domingo yesterday, Thursday 4 September 2014, President Danilo Medina encouraged investors to make the most of the optimum time for investing, stressing the DR’s booming economy, geographically strategic position and public-private trust relationship.
Medina stated that the DR is the leader in foreign direct investment in the Caribbean with more than US$5 billion in the past two years. This investment has contributed to the strong 5% GDP growth rate. Medina mentioned that the DR’s strategic geographical position is being enhanced with the start of operation of the post-Panamax and super post-Panamax ships with the expansion of the Panama Canal scheduled to be completed in 2015. This will open many new opportunities for transshipment and new maritime routes.
The President announced that the DR is developing its port and maritime infrastructure, export free zones and tourism industry in preparation for these changes. He mentioned the Merchant Marine and Air Connectivity Law that is aimed at turning the DR into “the hub of the Caribbean.”
The President said that the DR is a signatory of DR-CAFTA and EPA trade agreements with the US and the European Union, which provide the country with privileged access to 882 million consumers around the world. “Through the trade agreements we have negotiated favorable and flexible rules of origin that grant many advantages to companies doing business in the Dominican Republic,” he said.
Medina added that the DR has the second best transport infrastructure in the region. He said that with an area of around 48,000 square kilometers, the DR has a 5,400km highway and roads network. He also mentioned the country’s eight international airports, 12 cargo ports, and four cruise ship ports with easy and fast land access from all points of the country.
Describing his initiatives aimed at promoting foreign investment, he mentioned the many incentives for foreign investment included in the Foreign Investment Law that offers the same treatment to foreigners as to residents, including free repatriation of capitals and investment treatment to technological transfers.
He called on investors to consider investing in tourism, recalling that the DR received around five million visitors last year, US$5 billion in revenues, making it the leading destination in the Caribbean. Medina went on to say that there are already around 70,000 hotel rooms in the country and that investors can benefit from tax exemptions of up to 15 years.
Focusing on agribusiness, he said fruit and vegetables can be grown here 365 days a year, and there is a law that grants zero taxation for farming equipment and machinery imports.
He spoke about the export free zones, with 55 parks in operation and around 600 companies installed. “We are proud that large companies and brands have entrusted us to manufacture their products,” he said.
Medina highlighted the recent work by the National Footwear Commission to attract new international partners, which is helping the DR to become an attractive cluster for that sector, creating thousands of jobs for the country.
In less traditional areas, he said that Law 57-07 grants tax exemptions to producers and self-generators of alternative energy sources, as the aim is to increase the share of renewable energies in the country’s energy matrix.
President Medina also called on investors to look into the movie industry. He said incentives provide for fiscal credits of up to 25% of spending, plus additional incentives on profits and the authorization of temporary import of equipment.
He spoke of call centers that currently generate 35,000 jobs at 112 locations nationwide.
He mentioned incentives for development of industry at the border, and tax incentives for those who retire in the DR on foreign pensions.
In his closing words, the President declared that the trust between the government and productive sectors has generated a “virtuous circle.”
“That trust is strengthened every day, because we have proven that we govern the same for all,” he said. He also stressed that people can trust that when he gives his word, it will be fulfilled.
He said that his government has focused on transparency to achieve people’s trust.
“To have a professional administration without privileges is the best guarantee that business will be able to operate in a context of equality, predictability and clear rules of the game,” he said. He added that the government was working to modernize the state, especially in procurement and the creation of 24 oversight commissions at the leading government entities.
He said that these initiatives have resulted in social and political stability.
“We have made decisive steps to build a society of middle classes,” he said. “And we are committed to providing, both for our citizens as well as for national and international investors, a favorable climate for the creation and expansion of business,” He invited those present to be part of what he described as “the historic times the DR is experiencing” and to invest in the DR.
http://presidencia.gob.do/noticias/presidente-danilo-medina-invita-invertir-y-confiar-en-republica-dominicana