Agenda
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[ C L I E N T N A M E ]
Presentation2
October 2013
Dominican Republic Investor
Presentation November, 2015
Dominican Republic
Investor Presentation
José Ramón Peralta
Administrative Minister of the Presidency
One of the six countries in the world with Free Trade Agreements with both the European Union and the United States…
Preferential Market Access to:
876 million Consumers
GROSS DOMESTIC PRODUCT(In billions of US$, 2015)
67.562.6
25.920.1
Dominican
Republic
Guatemala El Salvador Honduras
The largest economy in Central America and the Caribbean
AVERAGE ANNUAL GDP GROWTH(2010-2015)
5.4%
3.6% 3.4%
1.9%
Dominican
Republic
Guatemala Honduras El Salvador
The highest economic growth in Central America and the Caribbean and 2nd in Latin America after Panama…
GDP PER CAPITA(In PPP US$, 2014)
13,012
8,021 7,503
4,729
Dominican
Republic
El Salvador Guatemala Honduras
…with a GDP per capita twice as much as the average of El Salvador, Guatemala and Honduras.
AVERAGE ANNUAL INFLATION RATE(Dec-Dec, 2010- 2014)
5.6%
4.7% 4.5%
1.8%
Honduras Dominican
Republic
Guatemala El Salvador
Sustainable economic growth with low inflation,…
EXCHANGE RATE(DR$ per US$1.00)
20152014201320122011201025
30
35
40
45
50
…remarkable exchange rate stability…
UNEMPLOYMENT(% of labor force unemployed, 2014)
7.5%
6.0% 5.6%
4.0%
Honduras Dominican
Republic
El Salvador (2013) Guatemala
…and declining unemployment.
POVERTY(% of population living in poverty, 2013)
64.5%
53.7%
40.9%
32.1%
Honduras Guatemala El Salvador Dominican
Republic (2015)
Poverty is significant, but has been declining rapidly.
Among the Latin America countries with lower political risk. (Marsh-
Maplecroft Report 2014)
50 years of continuous democracy, peace and
institutional development: relatively low political risk
Free Trade Zones are “100% tax exemption zones”.
Corporate income TaxValue Added Tax on Goods and Services (Itbis)
Tariff and Import Duties; Construction, Loans, and
Real State Property Transfer Tax; Export and Re-Export Tax;
Property, Assets and Patent Tax;and Local Taxes
FREE TRADE ZONES EXPORTS BY PRODUCTS
MM US$
After the Great Recession of 2009, Free Trade Zones exports has been showing a sustained growth.
1st world’s cigar exporter, 2nd USA’s circuit breakers supplier, and 4th USA’s medical devices and leather footwear exporter
Leatherfootwear Silver jewelry
Medical Devices
Cigars
Knitted fabricsof cotton
Circuit Breaker
Woolen coats
Dental Floss
FREE TRADE ZONES OR MAQUILA EXPORTS(In millions of US$, 2014)
5,243
3,9783,481
1,024
DominicanRepublic
Honduras Guatemala El Salvador
DR is the most important free trade zone exporter in Latin
America, after Mexico.
Famous world brands has chosen DR ‘s Free Trade Parks
to manufacture its goods.
1,451product lines
exported in 2014
to 136 countries
in 5 continents
ACCUMULATED INVESTMENTS: US$3,795 MILLIONS(at the end of 2014)
1,034
589
311
197
129
511
841
183
Textiles & Apparel
Medical &PharmaceuthicalProductsTobaco & Cigars
Services
Shoes
Agri-industrials products
Electronics
Others
40% of total accumulated investments in Free Trade
Zones is Foreign Direct Investment (FDI)
FREE TRADE ZONES PARKS(2015)
2418 17
63
Dominican
Republic
Honduras Guatemala El Salvador
...higher than the sum of all parks in Honduras,
El Salvador and Guatemala.
*a Junio
NUMBER OF FIRMS IN INDUSTRIAL FREE TRADE ZONE PARKS
637 firms are operating in the Free Trade Zone Parks,…
NUMBER OF FIRMS IN FREE TRADE ZONES PARKS(2015)
637
320282
200
DominicanRepublic
Honduras Guatemala El Salvador
… almost doubling the 320 that operates in Honduras.
EMPLOYMENT IN FREE TRADE ZONES AND/OR MAQUILAS(2014, Jul 2015 for DR)
75,939
95,600106,673
124,941
159,000
El Salvador Guatemala Nicaragua Honduras DominicanRepublic
Source:
…the higher in the Free Trade Zones of Central America
and the Caribbean
MINIMUM WAGE IN FREE TRADE ZONES (In US$, 2015)
183
203
222
224
240
262
275
296
303
323
325
DR
Hainan
Hunan
Tibet
Sichuan
Inner Mongolia
Beijing
Tianjin
Guangdong
Shanghai
Shenzhen
…but also, more competitive that those paid in China.
REAL AVERAGE WAGE AND LABOR PRODUCTIVITY IN FREE TRADE ZONES
100.0
222.5
103.02
154.76
Average Labor Productivity Index(1993=100)
Real Montlhy Average Wage in1993 US$
1993 2014
122.5% 50.2%
Real average wage has increased at a lower pace than the
increase in labor productivity in Free Trade Zones.
% OF LABOR FORCE WITH SECONDARY & TERCIARY SCHOOL(2012)
55
3530
23
DominicanRepublic (2014)
Guatemala Honduras El Salvador
Firms have access to a labor market where qualified human capital
is more abundant than in Central America’s labor markets.
DR was the Latin America country with the higher advance
in the English Proficiency Index in 2014.
ENGLISH PROFICIENCY IMPROVEMENTS
Education First
ENGLISH PROFICIENCY INDEX (EPI)(2014, Education First)
43.70
45.77
46.12
48.53
48.54
48.75
49.61
49.83
49.96
51.05
51.46
53.66
59.02
Panama
Guatemala
Venezuela
Costa Rica
Colomnbia
Chile
Uruguay
Mexico
Brazil
Ecuador
Peru
Dominican Republic
Argentina
English Proficiency in the Dominican Republic is 2nd in Latin
America; only Argentina ranks above.
AVERAGE ELECTRICITY TARIFF FACED BY INDUSTRIES(US$ Cents per kWh, 2014)
0.11 0.12
0.15 0.16
0.190.21
Costa Rica DominicanRepublic
Honduras El Salvador Nicaragua Guatemala
UNRtariff
Free Trade Zones in the DR consume electricity under the Non-
Regulated Consumer Regime, facing a competitive tariff.
QUALITY OF ROADS(World Competitiveness Report 2015-16, World Economic Forum, Index & Country Position)
4.3 4.23.9
3.6
DominicanRepublic
El Salvador Honduras Guatemala
53 5772
87
More than 19,000 kilometers of roads provide easy access
of manufactured FTZ’s goods to maritime ports.
NUMBER OF MARITIME PORTS(2015)
12
6
32
DominicanRepublic
Honduras El Salvador Guatemala
12 maritime ports provide a competitive infrastructure for
shipping to the world markets.
AVERAGE TRANSIT TIME TO THE US EAST COAST FROM SELECTIVE COUNTRIES
(In days by ocean)
35
13 14
3235
38
Dominican
Republic
Guatemala Nicaragua El Salvador China Vietnam Indonesia
Competitive wages + geographical advantage for shipments to US East
Cost, makes DR the best option for manufacturing in the region.
NUMBER OF INTERNATIONAL AIRPORTS(2015)
8
4
2 2
DominicanRepublic
Honduras El Salvador Guatemala
8 International Airports makes the DR one of the region’s most
accessible countries; 130 flights depart daily from the DR’s airports.
HOMICIDES PER 100,000 INHABITANTS(2014)
68.6 66.0
31.0
15.3
El Salvador Honduras Guatemala Dominican
Republic (2015)
The Dominican Government has intensified its efforts to prevent crime;
the target is to reach a one digit index in the next three years.
Invest in the Dominican Republic and be part of the best success secret in Latin America
MANY THANKS!