NewsWhore
09-13-2007, 06:50 PM
Free zones in the DR have taken on the challenge of globalization and are evolving from the days when manufacturing men's pants were the main export, according to the National Council of Export Free Zones, as reported in the Listin Diario. DR free zone industries today manufacture plastic bags, medical components, aviation components, mannequins and their parts for vehicular impact tests, and a wide spectrum of other products. To survive the impact of lower costs of Chinese exports, the industry has diversified. Enter the sophisticated manufacturing of jewelry, assembly of solar molds, bricks, even roofing materials, wooden pallets, gas sensors and even trailers. Companies that would manufacture musical carrousels for babies have applied for installation in the DR. And seeking greater value added, the government is encouraging the installation of software developers, computerized design and other high tech businesses.
According to the National Council of Export Free Zones (CNZFE), from January-August of this year, 43 free zone industries were approved for operation in Dominican industrial parks. Of these, only 4 (9%) will manufacture apparel. Others are in services (14%), agribusiness (9%), informatics, footwear, jewelry, luggage, and others. These would add 4,245 new jobs to the free zone sector, and have called for a RD$3.16 billion investment. They are expected to generate US$38 million in hard currency. At present, there are 57 free zone parks nationwide and 560 companies.
Free zones located outside of established parks are also increasing in number. According to the CNZFE, there are now 83 exporter industries, of which only 14% manufacture apparel, with special free zone category operating outside the free zone parks. Investment in these is more than RD$4.85 billion. Projected exports of US$83.8 million and job creation of 10,976 posts. The special free zones are very diversified with exports ranging from food products, airline tickets processing, and architectural drawings.
As reported in Listin Diario, today apparel makes up only 41% of total production at free zone industries, down from more than half a decade ago. According to official statistics, in 2005 there were 556 free zone companies in operation, and in 2006, 564. The number of employees in the sector during 2006 was of 147,959 jobs, for a 4.4% decline compared to 2005, when there were 154,781 registered workers. From January to November 2006, the DR exported US$1.42 billion in apparel to the US market. In the same period in the previous year, the country exported US$1.69 billion, according to Major Shippers Report, January 2007.
The CNZFE report acknowledges the decline in apparel exports from the DR to the US. These were down 26.02% in June 2007 alone. The decline for the first half of the year is 19.21%. Global apparel sales was up 6.76%, and China's apparel exports increased 45.98%, Indonesia exports 18.29% and Vietnam 21.8%. Mexican apparel exports were down 14.67%. DR-CAFTA member nations, El Salvador (up 10.8%), Nicaragua (up 20.84%) and Honduras (up 2.5%).
More... (http://www.dr1.com/index.html#11)
According to the National Council of Export Free Zones (CNZFE), from January-August of this year, 43 free zone industries were approved for operation in Dominican industrial parks. Of these, only 4 (9%) will manufacture apparel. Others are in services (14%), agribusiness (9%), informatics, footwear, jewelry, luggage, and others. These would add 4,245 new jobs to the free zone sector, and have called for a RD$3.16 billion investment. They are expected to generate US$38 million in hard currency. At present, there are 57 free zone parks nationwide and 560 companies.
Free zones located outside of established parks are also increasing in number. According to the CNZFE, there are now 83 exporter industries, of which only 14% manufacture apparel, with special free zone category operating outside the free zone parks. Investment in these is more than RD$4.85 billion. Projected exports of US$83.8 million and job creation of 10,976 posts. The special free zones are very diversified with exports ranging from food products, airline tickets processing, and architectural drawings.
As reported in Listin Diario, today apparel makes up only 41% of total production at free zone industries, down from more than half a decade ago. According to official statistics, in 2005 there were 556 free zone companies in operation, and in 2006, 564. The number of employees in the sector during 2006 was of 147,959 jobs, for a 4.4% decline compared to 2005, when there were 154,781 registered workers. From January to November 2006, the DR exported US$1.42 billion in apparel to the US market. In the same period in the previous year, the country exported US$1.69 billion, according to Major Shippers Report, January 2007.
The CNZFE report acknowledges the decline in apparel exports from the DR to the US. These were down 26.02% in June 2007 alone. The decline for the first half of the year is 19.21%. Global apparel sales was up 6.76%, and China's apparel exports increased 45.98%, Indonesia exports 18.29% and Vietnam 21.8%. Mexican apparel exports were down 14.67%. DR-CAFTA member nations, El Salvador (up 10.8%), Nicaragua (up 20.84%) and Honduras (up 2.5%).
More... (http://www.dr1.com/index.html#11)