weighted score 4.6 · ten dimensions
Sourcing Attractiveness Index · ten dimensions
Dominican Republic
Labour cost, supply base depth, logistics infrastructure, trade access, and innovation scores for the Dominican Republic as a sourcing destination.
Labour cost competitiveness
6
Wages competitive for Caribbean region but higher than Central American alternatives. FTZ labour costs are moderated by tax incentives and duty exemptions.
Supply base depth
4
FTZ clusters in medical devices, textiles, and cigars are well developed. Broader manufacturing supply chain depth is limited compared to larger economies.
Logistics & infrastructure
5
Caucedo port modernised with post-Panamax capacity. Road network adequate for FTZ corridors. Air connectivity strong due to tourism infrastructure.
Workforce skills
5
Young workforce with growing technical education. Medical device sector has built skilled labour pool. English proficiency moderate in FTZ-oriented sectors.
Scalability
6
FTZ model supports rapid onboarding of new operations. Scalability constrained by domestic market size (11M population) but FTZ export orientation mitigates this.
Ease of doing business
5
FTZ regulatory framework is streamlined and investor-friendly. Outside FTZs, bureaucratic complexity increases. Corruption perception remains a concern.
Trade access & tariffs
3
CARIFORUM EPA provides preferential EU access. DR-CAFTA provides US preferential access. Dual preferential access is a distinctive competitive advantage.
Sustainability baseline
4
Renewable energy share growing but grid still fossil-dependent. ESG reporting among FTZ multinationals is generally strong; domestic firms more variable.
Innovation & IP
3
Limited domestic R&D investment. IP framework exists but enforcement capacity is modest. Innovation driven primarily by multinational FTZ tenants rather than domestic firms.
Quality standards
5
Medical device FTZ operates to FDA and ISO 13485 standards. Cigar and textile sectors have established quality benchmarks. Standards outside FTZs are more variable.
Trade Access & Free Trade Zones
Trade Access & Free Trade Zones
- CARIFORUM EPA
- The Dominican Republic is a signatory to the CARIFORUM-EU Economic Partnership Agreement, providing duty-free or reduced-tariff access to the EU market for most goods. This is a significant trade advantage over competitors without equivalent EU preferential access.
- Free trade zones
- Over 70 free trade zones operate across the country, specialising in medical devices, textiles, cigars, and electronics assembly. FTZ firms benefit from tax exemptions, simplified customs procedures, and duty-free import of raw materials for re-export.
- Caucedo logistics hub
- DP World Caucedo is the Dominican Republic's premier container port, modernised with post-Panamax capacity and direct shipping connections to the US East Coast, Europe, and Latin America. The adjacent FTZ supports integrated manufacturing-to-export logistics.
Labour, Market & Infrastructure
Labour, Market & Infrastructure
- Population & workforce
- Approximately 11 million population with a young demographic profile. Labour costs are competitive relative to nearshore alternatives for the US market, though skilled technical labour availability is more limited than in larger economies.
- Tourism infrastructure
- Decades of tourism investment have built substantial airport, road, and hospitality infrastructure. This infrastructure supports general business logistics and connectivity, with direct flights to major US and European hubs.
- Key export sectors
- Medical devices (the largest export category), cigars, textiles and apparel, electrical components, and gold. The medical device cluster in the Cibao FTZ is well established, with several multinational manufacturers operating at scale.