Download Format: Country Profile

Country Profile
Dominican Republic
Information Provided by the
Centre for Export and Investment of the Dominican Republic (CEI-RD)
2012
1
Country Profile
Dominican Republic
Contents
 Quick Facts
 Other Facts about the Dominican Republic
o Economy
o Culture
o Education
o Labour Standards
o Media
o Targeted Sectors for Investment
o Targeted Sectors for Export
o Bilateral Investment Treaties
o Double Taxation Treaties
o Other Regional Agreements signed
o Competitive Advantages
 Major Internationally Renowned Brands within the Dominican
Republic
 Cost of Doing Business in the Dominican Republic
 Success Stories
 Official/relevant government links for investors
For more information, please contact:
Centre for Export and Investment of the Dominican Republic (CEI-RD)
Ave. 27 de Febrero, Esq. Ave. Gregorio Luperón, Plaza de la Bandera, Santo Domingo,
Dominican Republic
Tel: 809-530-5505
Fax: 809-534-4447
Key contact name: Ms. Mildred Santos
Email: [email protected]
Website: www.cei-rd.gov.do
2
Quick Facts – The Dominican Republic
Capital of country:
Population:
Official Language:
Santo Domingo
10,056,000 persons (2011)
The official language is Spanish, but English is also
GDP growth (%):
GDP per capita:
Inflation:
Unemployment:
Labour force:
Major Exports:
4.5% preliminary figures (2011)
USD$5,405 (2011)
7.76% (2011)
14.6% (2011)
4.7 million (2011)
Medical Devices, Hand Made Cigars, Woven cotton
fabrics, Footwear, Electric Equipments, Iron and Steel,
Sugar Cane and Rum, Organic Bananas and plantains,
Organic Cocoa Beans. (October 2011)
Major Imports:
Key Productive sectors:
Major trading partners:
Government (type):
President:
spoken throughout the country.
Foodstuffs, petroleum, cotton and fabrics, chemicals
and pharmaceuticals
Tourism, call contact centers and BPO’s, ferronickel
and gold mining, textiles and manufacturing, cement,
tobacco, Agro industries.
The major trading partners for The Dominican Republic
are: United States (46% of overall exports), Haiti (16%),
European Union (10%), Puerto Rico (6%), People’s
Republic of China (3.5%), Republic of China, Taiwan
(1.5%) and Venezuela (1.3%), those countries represent
more than 80% of Dominican exports. (October 2011)
Democratic Republic
Danilo Medina
-
Other Facts about the Dominican Republic
Economy:
The Dominican Republic is the second largest country in the Caribbean region with
48,381 square kilometers. In terms of economic growth and economic performance is one
of the leading countries not only in the Caribbean region, but also in Latin America.
Dominican Republic is a small country in term of population with 10.05 million people,
with a GDP around US$53,000 millions in 2010, in the last 40 years grew in an average
3
growth rate of 5% annually, presenting only 3 years with an economic downturn 1985,
1990 and 2003.
Culture:
The Dominican Republic has a rich and interesting culture, the people and their customs
have origins mixing of Spanish, African and Taino roots. The country has an
amalgamation of influences, with a combination of European Spanish and Latin
American. Dominican people are by nature, friendly and warm hearted.
Education:
Education in the Dominican Republic is free and compulsory, there is a large selection of
schooling options, and quality can be found in public, private schools. Along with the
many options for grade school education, the Dominican Republic also offers a large
selection for higher education, with curriculums linked to American and European
programs.
Labour Standards:
• Excellent work ethics
• Globally competitive wages
• Flexible work force
• Absenteeism rate less than 3%
• Turnover rate less than 2.5%
• Engineering talent
• Multilingual talent
• Specialized educational facilities
Media
News Paper
Listin Diario: http://www.listin.com.do/
Radio and Tv
Z 101 :
http://www.z101digital.com
El Nacional:
Grupo Telemicro:
http://www.elnacional.com.do/
http://grupotelemicro.com
Diario Libre:
Telesistema Dominicano:
http://www.diariolibre.com/index.php?l=1 http://www.telesistema11.tv/
Targeted Sectors for Investment
a) Manufacture:
Medical Devices, Textiles, Footwear, Cosmetic and plastics, Auto parts, Agribusiness,
electric and electronic components.
b) Services
Contact Centers and BPO’s, Software Development, Audiovisual and Entertainment, Film
Industry.
4
c) Strategic Project
Infrastructure, Renewable Energy, Mining, Tourism, Real State.
Targeted sectors for Export:
a) Medical Devices, Textiles, Footwear, Cosmetic and plastics, Auto parts, Agribusiness,
electric and electronic components.
b) Mining
c) Non Traditional Products (agricultural, agribusiness, industrial, Hand craft)
Bilateral Investment Agreements /International Investment Agreements signed
Spain
France
Taiwan
Chile
Ecuador
Switzerland
Panama
Morocco
Finland
Netherlands
Italy
South Korea
Cuba
Argentina
United Kingdom
Double Taxation Agreements signed
- Canada
Other regional agreements signed
- Caribbean Community (CARICOM)
- Central America Common Market (MCCA)
- US-Central America- Dominican Republic Free Trade Agreement (DR-CAFTA)
- Economic Partnership Agreement with European Union (EPA)
These agreements refer to trade agreements, but also have some provisions about Investment.
Competitive advantages
When a country has as much to offer as Dominican Republic, it’s impossible to pinpoint
a single reason to invest in one of the most dynamic economies in the world. DR boasts
multiple advantages and unparalleled potential, a place where businesses can achieve
excellence on a global scale.
People Advantage: Dominican Republic is a nation of intelligent, hard working people.
5
Business Environment Advantage: The Economic Intelligence Unit has rated
Dominican Republic as one of the most favorable place to do business in the Caribbean
region.
Tax Advantage: Dominican Republic offers businesses low tax rates, boasting the lowest
payroll taxes among the Caricom countries. Duty free is offer through the free trade
zones regime (Law 8-90).
CAFTA the Central America Gateway and Corridor Trade: Take advantage of
Dominican Republic’s strategic location as the crossroads between the North American
marketplace and the booming economies of Latin America.
Transportation Advantage: Dominican Republic has sophisticated infrastructure and a
highly developed transportation network.
Major Internationally Renowned Brands
Barrick Gold
Phillip Morris
The Bank of Nova Scotia
Hard Rock Hotel
America Mobile
Grupo Edrington
France Telecom
(Orange)
AES Energy
IKEA
Grupo Odinsa
Consorcio Remix
Exxon Mobile
Corporation (Esso)
Cost of Doing Business in the Dominican Republic
Corporate Income tax rate: Profit tax:
29%
Personal income tax rate:
25%
Average wage per hour:
Private Sector: US$ / Hour 1.38
Public Sector: US$ / Hour 0.71
Average hours per week
40 hours
Cost Category
Notes
Unit
DR
6
Transport
Source: Navieras B&R
From factory to
source port
From source port to
Miami
From source port to
California/Long
Beach
US$ / 40-ft
container
US$ / 40-ft
container
US$ / 40-ft
container
$300
$1,400
$2,000 $2,500
Success Stories
1. The Autopista del Nordeste (ADN) and Boulevard Turístico del Atlántico (BTA)
projects, built by a Dominican-Colombian Consortium, consists of the
rehabilitation and the design, construction, operation, and maintenance of a
highway toll road that links Santo Domingo to the northeastern peninsula of
Samaná and continues around the peninsula. These projects have a total
extension of 106-km and 123.6-km respectively, and have a total investment of
US$ 338 million, creating 1,492 direct jobs. They have a long economic
development, Social and Environmental impact.
2. Tim Searcy CEO, American Teleservices Association (ATA) said: “The
Dominican Republic has proven to be an outstanding choice for many firms
seeking near shore cost advantages for call center and BPO opportunities. With
an eager and educated workforce as well as the many training programs put in
place by the government, companies have found the ideal blend of lower costs
and high quality. Unlike some other offshore choices, the DR also enjoys easy
access from the United States with many direct fights from Florida air ports.
Personally, I recommend the Dominican Republic as well because of the
friendliness of the government and it support for our industry.”
Other official/relevant government links for investors
- Ministry of Tourism: www.sectur.gob.do
- Ministry of Foreign Affairs: www.serex.gov.do.
- Ministry of Economy, Planning and Development: www.economia.gob.do
- Ministry of Industry and Commerce: http://www.seic.gov.do
7