2018News

Good year for free zone industries

Luisa Fernández Durán / Presidency

2017 was a stable year for light manufacturing operations at export free zones in the Dominican Republic, according to statistics compiled by the National Free Zone Industry Council. The numbers showed small growth in regards to number of companies, free zone parks in operation, jobs, wages, accumulated investment, exports, local spending and others.
Luisa Fernández Durán, executive director of the National Free Zone Council (CNZFE) says 665 free zone industries are in operation at 71 industrial parks. The number of industries is up from 645 in 2016. 49.2% of these are located in the northern region of the country, 24.4% in the National District and Province of Santo Domingo, 14% in the southern region and 12.5% in the eastern region.

As of December 2017, free zone industries employed 165,725 workers, up 1.6% compared to 2016, when there were 163,147 at year’s end. Of those employed, 71% are laborers, 20.3% technicians and 8.7% administrative staff.

Apparel operations continue to lead in number of jobs, with 40,864 direct jobs, or 24.7%. These are followed by service industry jobs with 27,442 for 16/6%, tobacco and by products with 27,272 for 16.5%. Medical devices and pharmaceuticals employed 22,666 for 13.7%, footwear 13,807 or 8.3%.

Accumulated investment in the sector had reached US$4.47 billion, up 3.3% compared to 2016. The United States is the leading investor in the sector with 39.3% or US$1.75 billion. Next is the Dominican Republic with 25.3% or US$1.13 billion, Canada with 7.2% or US$320.6 million, the UK with 4.7% or US$211.5 million, Germany with 3.3% or US$148.4 million.

Free zone exports were US$5.69 billion in 2017, up 3.5% compared to 2016. The total is 56.3% of the total exports of the Dominican Republic. In value of exports, medical devices and pharmaceuticals were 26.1% of the total, followed by apparel with 18.8%, electrical products with 15.5%, tobacco and by products with 13.9% and footwear with 6.9%.

As reported, the sector had local expenditures for US$1.48 billion, compared to US$1.46 billion in 2016, up 1.7%.

Read more in Spanish:
Presidencia

19 March 2018