A Strong Boost to Economic Development

The Dominican Republic is strengthening its role as a top investment destination in Latin America through its successful free zone sector. During its third annual meeting, the National Council of Export Free Zones (CNZFE) under the direction of Minister of Industry, Commerce and MSMEs (MICM) Víctor “Ito” Bisonó granted approval for nine new free zone companies in the Dominican Republic which will bring RD$1.615 billion in investment and over 1,160 direct employment opportunities.

The rise in approval numbers represents a steady national initiative aimed at promoting foreign direct investment, while creating jobs and diversifying various economic sectors. The financial contributions from these newly established companies are expected to generate US$15.7 million in foreign exchange earnings, which will enhance both the country’s economic standing and its international trade reputation.

Strategic Investment in Key Sectors

Dominican Republic free zone companies that have recently received approval will start operating within various high-value business areas such as:

• Manufacturing
• International services and customer support
• Tobacco and cigar production
• Aircraft maintenance
• Packaging solutions

Jacagua Cigar Factory, alongside FL Technics Dominican Republic, which dominates aircraft maintenance operations with Gatekeeper Observation Division and Guten Packaging, stand out as new entrants that combine unique capabilities with international market access.

The strategic development model reflected in these businesses’ distribution aims to promote inclusive growth throughout various provinces such as La Altagracia, Hato Mayor, Santiago, and Santo Domingo. These regions will experience growth through new job openings and will also benefit from improved infrastructure development, along with higher local purchasing and workforce educational programs.

Expansion of Industrial Infrastructure

The CNZFE authorized the establishment of two new industrial parks and nine new businesses, which will bring about RD$630.2 million in investments. The new industrial parks will host businesses that will create about 1,800 jobs and generate an extra US$1.5 million in foreign currency.

Industrial parks function as essential centers within free zone ecosystems. Investors benefit from ready-to-use facilities along with nearby ports and airports, and integrated support services that simplify their operations. The Dominican Republic enhances its role as a regional logistics and manufacturing center through this active infrastructure development strategy.

A Public-Private Partnership That Works

The Dominican Republic achieves success in its free zone model through strong public-private sector partnerships. Government officials and private sector stakeholders work together at the CNZFE to jointly review and approve investment proposals and monitor their progress.

Key participants, including Johannes Kelner from Free Zones as Vice Minister, Nil de la Rosa serving as Deputy Director at Proindustria, and Lina Pichardo from ProDominicana, attended this session. The discussions included active participation from ADOZONA leaders Claudia Pellerano and José Manuel Torres, as well as representatives from ADOEXPO, Free Zone Operators, and Customs.

An inclusive governance model maintains policies that support investors while enabling rapid response and alignment with international trade requirements.

Sector Growth and Export Performance

CNZFE Executive Director Daniel Liranzo delivered an optimistic performance report about the sector during the same session, which examined data from the first four months of the year. Key highlights included:

• Continued growth in exports
• Medical devices continue to lead in export product rankings.

The tobacco industry, along with electronics manufacturers and textile producers, has made significant contributions.

The statistics confirm how the sector helps to expand the national export portfolio while strengthening the country’s trade balance. The successful global competition of Dominican Republic’s free zone companies in technically demanding sectors indicates the nation’s progression into an established industrial economy.

Historical Performance and Investor Confidence

Under President Luis Abinader’s leadership since 2020, the Dominican Republic granted approval for 380 new free zone companies, which generated cumulative investments of more than US$945.7 million. The continuous expansion shows strong investor trust in the nation’s legal system and its stable economic environment and workforce.

Every time a company gains approval for operating in the free zone sector, it broadens the sector’s scope and complexity while solidifying its crucial role in the national economy. The Dominican Republic’s ability to attract and maintain free zone companies better than its regional competitors demonstrates the strategic direction and dedication of its government officials.

Global Connectivity and Competitive Advantage

Dominican Republic free zone companies achieve success because of their nation’s geographic location and logistical strengths. The country functions as a critical junction for trade between North America, South America, and Europe while providing:

The nation provides access through its major sea ports and international airports

Dominican Republic maintains Free Trade Agreements with major partners, including the United States (DR-CAFTA), European Union (EPA), and CARICOM.

The country has developed a modern road network system, which continuously expands to link together different industrial zones.

The Dominican Republic attracts international service centers and scalable manufacturing operations through its skilled bilingual workforce, who receive competitive wages.

Real Impact on Dominican Families

Thousand of Dominican families experience direct benefits from the free zone sector beyond investment data and export increases. The jobs that nine new companies created directly, while two industrial parks support more roles, provide Dominican workers with actual income, along with better living standards and chances for career advancement.

Employees in free zones gain access to organized job opportunities alongside full training programs and benefits from social service access. When businesses grow and establish stronger connections within their host regions, they frequently support local communities by implementing projects that target education, health services, and infrastructure development.

The Road Ahead: Innovation and Sustainability

Dominican Republic free zone companies must focus on technological innovation and sustainability to ensure their future growth. The country has begun to respond to the worldwide push for sustainable supply chains and digital advancement by promoting:

• Investment in clean energy solutions
• Dominican Republic free zone companies are encouraged to implement Industry 4.0 technologies, which include automation, artificial intelligence (AI), and the Internet of Things (IoT).
• The Dominican Republic is advancing both eco-industrial park development and waste management projects.
• The MICM and CNZFE collaborate to make free zones competitive while aligning them with global Environmental, Social, and Governance standards.

Conclusion: A Model of Success in Latin America

The approval of the nine new free zone companies in the Dominican Republic signifies another important step forward in the country’s ongoing industrial and economic transformation process. The Dominican Republic strengthens its role as a leading destination for export manufacturing, services, and investment in the region.

Strong collaboration between the public and private sectors, skilled labor force availability, modern infrastructure facilities, and a favorable business environment will sustain the free zone sector as a fundamental element of national development. The Dominican Republic is rapidly transforming into a world-renowned center for innovation and growth as more businesses establish their production and service operations there.

A presidential decree, designated for publication in the Official Journal of the Federation, will enable the government to grant preferential treatment to pharmaceutical firms that set up production facilities within the country. The “Mexico Plan” initiative will transform the pharmaceutical industry landscape and draw essential foreign investments from around the world.

Leveraging Government Procurement to Stimulate Industrial Growth

The strategy centers around the massive buying power of the Mexican government. The Mexican government spends over 300 billion pesos every two years through public procurement contracts, with a large portion of these funds designated for health services. The government decree specifies that pharmaceutical firms operating manufacturing facilities in Mexico will gain competitive benefits in government contract bids for the years 2027 and 2028, starting from 2026.

Only pharmaceutical companies that fulfill strict quality assurance requirements and provide affordable medicines will receive preferential treatment. The measure seeks to motivate firms from India, the United States, Europe, and Latin America to move or increase their manufacturing operations, ultimately strengthening pharmaceutical production in Mexico.

Economic Development Poles for Wellbeing (PODECOBI) Represents a Fresh Industrial Framework

The pharmaceutical initiative will become a key part of the government’s regional development program, Economic Development Poles for Wellbeing (PODECOBI), which aims to reduce inequality and promote local economic development. Investors and manufacturers will receive logistical and infrastructural assistance in these areas, which serve as ideal locations for new pharmaceutical facilities.

The government targets strategic regions for pharmaceutical development to achieve balanced national growth and create skilled jobs while supporting related industries such as packaging, logistics, and medical device production. This strategic approach will further drive pharmaceutical output in Mexico by decentralizing growth and stimulating regional economies.

A Rebirth for Laboratorios Birmex

The revitalization strategy assigns a key position to Laboratorios Birmex, which used to be an important public pharmaceutical company. Following a period of diminished operations, Birmex stands ready to restore its production capabilities and become an integral element of the country’s drug production sector. The company’s return to operations will help bolster pharmaceutical production in Mexico for vaccines, generic drugs, and vital medical treatments.

Deputy Secretary Eduardo Clark states that Birmex will work in partnership with private sector entities and government organizations to facilitate technology transfer and ensure regulatory compliance while optimizing supply chain operations.

Creating a Fertile Environment for Pharmaceutical Investment

The government plans to create a Commission for the Promotion of Pharmaceutical Investment to promote sector investments. The designated body will coordinate federal institutions and stakeholders to eliminate bureaucratic obstacles and streamline investment processes while supporting the development of new manufacturing plants.

The Commission will collaborate with regulatory bodies, including Cofepris and IMPI to speed up medicine and medical device registration while enhancing intellectual property safeguards and advancing clinical trials and biotechnological research. This environment is meant to nurture pharmaceutical production in Mexico by making it more appealing to global investors.

Coordinated activities between different stakeholders are essential for developing a business-friendly ecosystem that shows international companies Mexico’s dedication to taking an important position in the global pharmaceutical supply network.

The Development of Bio-Incubators Alongside Clinical Research Represents an Innovative Strategic Vision

The strategy includes establishing bio-incubators and research centers that focus on pharmaceutical development and medical innovation. The incubators will function as shared workspaces where startups, multinational companies, and academic institutions can work together to undertake clinical research and develop new drug therapies while exploring advanced biotechnology.

Through its investment in scientific research and innovative practices, the Mexican government plans to expand pharmaceutical production in the country while simultaneously improving the quality and development level of domestic medical products.

The collaboration of public and private sectors through joint ventures will support the development of clinical trial and laboratory research capabilities to establish the country as a dependable location for international pharmaceutical development and regulatory testing.

International Appeal: A Hub for Global Manufacturers

Mexico stands out as a prime destination for foreign manufacturers due to its strategic geographic location near the U.S. market and solid trade agreements, such as the USMCA, combined with its strong pool of skilled workers. Pharmaceutical production in Mexico remains an underutilized resource that has yet to reach its full potential.

The recent decree from President Sheinbaum should shift advantages toward the government. International pharmaceutical companies expanding into Mexico will achieve better access to government contracts while benefiting from reduced production costs and experiencing fewer regulatory delays.

Mexican operations offer Indian generics manufacturers a strategic hub for reaching Latin American and North American markets, given their status as global leaders in low-cost pharmaceuticals. European and American businesses aiming to reduce their Asian supply chain risks might recognize this as a chance to implement nearshoring strategies, further enhancing pharmaceutical production in Mexico.

Ensuring National Supply and Strategic Autonomy

The plan’s main goal is to decrease Mexico’s reliance on imported medicines. The Mexican government can enhance the stability and security of national medical supplies by increasing pharmaceutical production in Mexico, which remains an urgent priority following the COVID-19 pandemic.

Nations that maintained robust pharmaceutical manufacturing capabilities could address medical emergencies during the global crisis more swiftly and autonomously. The new Mexican policy serves as a direct reaction to earlier experiences and seeks to ensure a dependable national supply of essential medicines and treatments for years to come.

Challenges Ahead: Infrastructure, Workforce, and Coordination

The plan shows great ambition and organization, yet presents several difficult obstacles. The development or enlargement of pharmaceutical facilities requires heavy initial financial outlays for cleanroom facilities, together with cold chain management and specialized technical personnel. Mexico must prepare its vocational and higher education institutions to generate trained professionals who can handle pharmaceutical manufacturing complexities and support long-term pharmaceutical production in Mexico.

The coordination between agencies requires both agility and transparency to function effectively. Investor trust could be damaged by delayed regulatory approvals, communication breakdowns, or changing political priorities. To maintain progress, the new Commission requires immediate, decisive action.

Mexico Embarks on a Transformative Phase in Pharmaceutical Production

The decree issued by President Claudia Sheinbaum signifies a turning point for pharmaceutical production in Mexico. The administration creates a foundation for future growth and health security by integrating public procurement policies with industrial development objectives.

A comprehensive strategy encompassing investment promotion, infrastructure development, research incentives, and regulatory reform has established Mexico as a manufacturing hub and a rising global leader in pharmaceutical science innovation.

The Mexico Plan could transform pharmaceutical production in Mexico and throughout the Americas, while establishing the country as a key player in worldwide health supply chains if it achieves successful implementation. Mexico’s pharmaceutical sector stands on the brink of becoming an exemplary model for other nations because of its renewed dedication to excellence, affordability, and sustainability.

Conclusion

The announcement of this forward-thinking initiative sends a clear message to the global pharmaceutical industry: pharmaceutical production in Mexico is open for business and prepared to grow. With political determination, strategic coordination, and international partnerships, Mexico’s pharmaceutical production stands ready for swift growth and enduring achievement.

The proactive approach Mexico is taking toward pharmaceutical development can serve as a model for nations that want to create resilient and fair systems while promoting innovation.

A presidential decree, designated for publication in the Official Journal of the Federation, will enable the government to grant preferential treatment to pharmaceutical firms that set up production facilities within the country. The “Mexico Plan” initiative will transform the pharmaceutical industry landscape and draw essential foreign investments from around the world.

Leveraging Government Procurement to Stimulate Industrial Growth

The strategy centers around the massive buying power of the Mexican government. The Mexican government spends over 300 billion pesos every two years through public procurement contracts, with a large portion of these funds designated for health services. The government decree specifies that pharmaceutical firms operating manufacturing facilities in Mexico will gain competitive benefits in government contract bids for the years 2027 and 2028, starting from 2026.

Only pharmaceutical companies that fulfill strict quality assurance requirements and provide affordable medicines will receive preferential treatment. The measure seeks to motivate firms from India, the United States, Europe, and Latin America to move or increase their manufacturing operations, ultimately strengthening pharmaceutical production in Mexico.

Economic Development Poles for Wellbeing (PODECOBI) Represents a Fresh Industrial Framework

The pharmaceutical initiative will become a key part of the government’s regional development program, Economic Development Poles for Wellbeing (PODECOBI), which aims to reduce inequality and promote local economic development. Investors and manufacturers will receive logistical and infrastructural assistance in these areas, which serve as ideal locations for new pharmaceutical facilities.

The government targets strategic regions for pharmaceutical development to achieve balanced national growth and create skilled jobs while supporting related industries such as packaging, logistics, and medical device production. This strategic approach will further drive pharmaceutical output in Mexico by decentralizing growth and stimulating regional economies.

A Rebirth for Laboratorios Birmex

The revitalization strategy assigns a key position to Laboratorios Birmex, which used to be an important public pharmaceutical company. Following a period of diminished operations, Birmex stands ready to restore its production capabilities and become an integral element of the country’s drug production sector. The company’s return to operations will help bolster pharmaceutical production in Mexico for vaccines, generic drugs, and vital medical treatments.

Deputy Secretary Eduardo Clark states that Birmex will work in partnership with private sector entities and government organizations to facilitate technology transfer and ensure regulatory compliance while optimizing supply chain operations.

Creating a Fertile Environment for Pharmaceutical Investment

The government plans to create a Commission for the Promotion of Pharmaceutical Investment to promote sector investments. The designated body will coordinate federal institutions and stakeholders to eliminate bureaucratic obstacles and streamline investment processes while supporting the development of new manufacturing plants.

The Commission will collaborate with regulatory bodies, including Cofepris and IMPI to speed up medicine and medical device registration while enhancing intellectual property safeguards and advancing clinical trials and biotechnological research. This environment is meant to nurture pharmaceutical production in Mexico by making it more appealing to global investors.

Coordinated activities between different stakeholders are essential for developing a business-friendly ecosystem that shows international companies Mexico’s dedication to taking an important position in the global pharmaceutical supply network.

The Development of Bio-Incubators Alongside Clinical Research Represents an Innovative Strategic Vision

The strategy includes establishing bio-incubators and research centers that focus on pharmaceutical development and medical innovation. The incubators will function as shared workspaces where startups, multinational companies, and academic institutions can work together to undertake clinical research and develop new drug therapies while exploring advanced biotechnology.

Through its investment in scientific research and innovative practices, the Mexican government plans to expand pharmaceutical production in the country while simultaneously improving the quality and development level of domestic medical products.

The collaboration of public and private sectors through joint ventures will support the development of clinical trial and laboratory research capabilities to establish the country as a dependable location for international pharmaceutical development and regulatory testing.

International Appeal: A Hub for Global Manufacturers

Mexico stands out as a prime destination for foreign manufacturers due to its strategic geographic location near the U.S. market and solid trade agreements, such as the USMCA, combined with its strong pool of skilled workers. Pharmaceutical production in Mexico remains an underutilized resource that has yet to reach its full potential.

The recent decree from President Sheinbaum should shift advantages toward the government. International pharmaceutical companies expanding into Mexico will achieve better access to government contracts while benefiting from reduced production costs and experiencing fewer regulatory delays.

Mexican operations offer Indian generics manufacturers a strategic hub for reaching Latin American and North American markets, given their status as global leaders in low-cost pharmaceuticals. European and American businesses aiming to reduce their Asian supply chain risks might recognize this as a chance to implement nearshoring strategies, further enhancing pharmaceutical production in Mexico.

Ensuring National Supply and Strategic Autonomy

The plan’s main goal is to decrease Mexico’s reliance on imported medicines. The Mexican government can enhance the stability and security of national medical supplies by increasing pharmaceutical production in Mexico, which remains an urgent priority following the COVID-19 pandemic.

Nations that maintained robust pharmaceutical manufacturing capabilities could address medical emergencies during the global crisis more swiftly and autonomously. The new Mexican policy serves as a direct reaction to earlier experiences and seeks to ensure a dependable national supply of essential medicines and treatments for years to come.

Challenges Ahead: Infrastructure, Workforce, and Coordination

The plan shows great ambition and organization, yet presents several difficult obstacles. The development or enlargement of pharmaceutical facilities requires heavy initial financial outlays for cleanroom facilities, together with cold chain management and specialized technical personnel. Mexico must prepare its vocational and higher education institutions to generate trained professionals who can handle pharmaceutical manufacturing complexities and support long-term pharmaceutical production in Mexico.

The coordination between agencies requires both agility and transparency to function effectively. Investor trust could be damaged by delayed regulatory approvals, communication breakdowns, or changing political priorities. To maintain progress, the new Commission requires immediate, decisive action.

Mexico Embarks on a Transformative Phase in Pharmaceutical Production

The decree issued by President Claudia Sheinbaum signifies a turning point for pharmaceutical production in Mexico. The administration creates a foundation for future growth and health security by integrating public procurement policies with industrial development objectives.

A comprehensive strategy encompassing investment promotion, infrastructure development, research incentives, and regulatory reform has established Mexico as a manufacturing hub and a rising global leader in pharmaceutical science innovation.

The Mexico Plan could transform pharmaceutical production in Mexico and throughout the Americas, while establishing the country as a key player in worldwide health supply chains if it achieves successful implementation. Mexico’s pharmaceutical sector stands on the brink of becoming an exemplary model for other nations because of its renewed dedication to excellence, affordability, and sustainability.

Conclusion

The announcement of this forward-thinking initiative sends a clear message to the global pharmaceutical industry: pharmaceutical production in Mexico is open for business and prepared to grow. With political determination, strategic coordination, and international partnerships, Mexico’s pharmaceutical production stands ready for swift growth and enduring achievement.

The proactive approach Mexico is taking toward pharmaceutical development can serve as a model for nations that want to create resilient and fair systems while promoting innovation.

The initiative aims to enable innovation while promoting inclusion and creating competitive prospects for the future.

The Dominican Republic took a significant industrial development step when Proindustria joined forces with the Japan International Cooperation Agency (JICA), United Nations Development Program (UNDP), and the Loyola Polytechnic Institute to establish a ground-breaking agreement that will assist local industrial startups. The Startup Ecosystem Development and Acceleration Program creates a solid base for future industrial innovation and entrepreneurship alongside inclusive growth. The Dominican Republic strategic alliance between JICA and UNDP focuses on transforming the national economy through joint efforts in innovation and capacity-building, together with international cooperation.

Laying the Groundwork for Industrial Innovation

The Startup Ecosystem Development and Acceleration Program aims to boost technological and industrial entrepreneurship by delivering extensive training along with mentorship and prototype development support. The program aims to build new and emerging businesses to succeed in the industrial sector by offering essential tools and networks for scaling their operations.

The initiative’s primary component involves creating the Industrial Innovation Laboratory, which operates from the San Cristóbal industrial park. This advanced facility will function as the central hub for startup development while providing project development tools, including access to cutting-edge technologies and expert support from international and national specialists. Strong international organizations back the Dominican Republic’s strategic alliance uniting innovation with academia and industry. This partnership creates a strong foundation for building a successful industrial startup ecosystem that supports inclusion and dynamic growth while preparing for future challenges.

Institutional Synergy: A Multilateral Approach to Development

The multi-institutional agreement demonstrates a strong union of professional knowledge. Proindustria will spearhead coordination efforts by utilizing its understanding of the Dominican industrial sector to support entrepreneurship and bridge connections between startups and established industry entities.

JICA provides its globally recognized technical knowledge in innovative development and industrial growth by sharing valuable insights and methods from Japan’s development experience. UNDP brings necessary inclusion components as well as sustainability and equity aspects into the program. The alliance adopts a comprehensive development strategy that extends past economic measurements by delivering progress to marginalized groups and underserved populations.

As a respected academic institution, the Loyola Polytechnic Institute will provide project support through its infrastructure resources and skilled personnel alongside its dedication to research and training programs. Through this Dominican Republic strategic alliance, we can see how sustainable development now depends on cross-sectoral and cross-border partnerships. Through their collaboration, these institutions will establish an environment that fosters innovation and helps local entrepreneurs rise to national leadership positions.

Training Tomorrow’s Industrial Leaders

The Startup Ecosystem Development and Acceleration Program seeks to discover and nurture the next wave of industrial innovators. During its first stage, the program intends to educate 100 entrepreneurs about startup methodologies, along with business modeling and innovation management. The program will choose 20 exceptional projects from the selected pool to receive expert assistance throughout their validation and prototyping stages.

A newly established national network of mentors will deliver customized guidance to these entrepreneurs in areas like product development and financial planning. The mentorship network delivers continuous support to participating startups to enhance their chances of achieving long-term success. The program targets the creation of impactful businesses that scale and grow the national economy through a quality-focused approach rather than quantity. The Dominican Republic’s strategic alliance understands that supporting visionary entrepreneurs today will establish the foundation for a robust industrial sector in the future.

Promoting Regional Inclusion and Equity

This initiative stands out for its dedication to fostering inclusion alongside regional equity in its operations. The Dominican Republic has experienced persistent difficulties in providing equal economic opportunity access throughout its various regions and social groups. The program combats regional inequalities by working with other technical institutes throughout the nation, which lets entrepreneurs in less urban areas gain access to its resources and training programs.

Priority will be given to increasing involvement among women, young people, and vulnerable groups. The program supports UNDP’s wider goal to provide equitable access to entrepreneurship while addressing structural obstacles that block development. The strategic partnership in the Dominican Republic concentrates on creating a startup environment that embodies the nation’s demographic diversity through dedicated outreach and assistance. Ana María Díaz, UNDP Representative, described the initiative as “a blueprint that addresses structural deficiencies while expanding industrial entrepreneurship opportunities.”

A Vision for Sustainable Industrial Growth

This alliance intends to achieve objectives that extend well past the creation of several startups. The alliance seeks to convert the Dominican Republic’s industrial sector into a more technologically advanced and resilient growth engine through diversification. The country’s economy will become stronger and more competitive by creating an environment that supports innovation and entrepreneurship, which reduces dependency on traditional economic sectors.

As Rafael Cruz Rodríguez, General Director of Proindustria, emphasized: “Innovation is no longer optional. Embracing innovation remains essential as the sole sustainable route toward development according to the statement. The Dominican Republic strategic alliance seeks to establish a virtuous cycle of innovation and job creation through investment by merging startups into the broader industrial ecosystem.

Global Partnerships to Amplify Local Impact

With JICA representing Japan the initiative gains an additional source of strength. The Japan International Cooperation Agency (JICA) demonstrates its track record in developing industries within emerging markets through a combination of technical skills and dedication to building local capacities while facilitating knowledge transfer. Kota Sakaguchi from JICA confirmed during the signing ceremony that Japan is dedicated to generating new experiences and local opportunities.

Through international collaboration the Dominican Republic’s development initiatives benefit from alignment with world-leading practices. Dominican startups will have new chances to collaborate internationally and receive investments while gaining access to global markets. The strategic partnership of the Dominican Republic connects domestic goals with worldwide possibilities.

Building a Future of Opportunity and Impact

The primary purpose of this initiative extends beyond business development because it focuses on generating opportunities that create measurable social impact. Through its programs, the alliance works to enable individual empowerment and community strengthening while building an inclusive economy that generates benefits for all people. The program establishes a new standard for public-private-international partnerships to create meaningful change through its dedication to innovation, mentorship, and inclusion.

The creation of the Industrial Innovation Laboratory alongside young entrepreneur training and marginalized population inclusion with strategic international partner engagement reflects a visionary development approach.

Looking Ahead: A National Blueprint for Industrial Transformation

The Dominican Republic finds itself at a critical juncture in its ongoing development process. The Startup Ecosystem Development and Acceleration Program launch demonstrates its commitment to developing a modern industrial sector that is inclusive and competitive globally.

The strategic partnership in the Dominican Republic demonstrates what institutions can accomplish when they combine their strengths under a unified vision. A definitive roadmap, along with robust support networks and a dedicated focus on equity, positions this initiative to reshape industrial innovation across the Dominican Republic. Today’s initiatives in San Cristóbal and other locations will develop into businesses and technological advancements that will drive national economic growth for many years.

El Salvador has steadily emerged as a competitive destination for light manufacturing, logistics, and export-oriented industries in Central America. A key contributor to this success is the country’s network of industrial parks, which offer specialized infrastructure, proximity to international markets, skilled labor, and favorable business conditions. Among these, the International Free Zone (Zona Franca Internacional) and several other industrial parks in El Salvador have become pivotal for foreign direct investment and global supply chain integration.

Leading Industrial Parks in El Salvador

International Free Zone (Zona Franca Internacional)

Located near Comalapa International Airport and the Port of Acajutla, the International Free Zone (IFZ) is one of the most prominent and strategically located industrial parks in El Salvador. Spanning over 220 hectares, it is designed to accommodate export-oriented manufacturers, logistics providers, and service companies. Tenants benefit from proximity to the Pan-American Highway, streamlining domestic and international freight movements.

Key industries represented include textiles and apparel, electronics assembly, packaging, and distribution. Tenants like HanesBrands and Delta Apparel have operations in the IFZ, leveraging El Salvador’s favorable trade status under agreements such as CAFTA-DR and the Generalized System of Preferences (GSP) with the U.S.

San Marcos Free Zone

Situated near San Salvador, this zone has long been a hub for garment and apparel production. Its urban location offers easy access to El Salvador’s largest labor pool, reducing commuting times and costs for workers. The zone is fully serviced with power, water, waste management, and telecommunications infrastructure, making it an attractive site for labor-intensive industries.

American Industrial Park (AIP)

The AIP is a modern industrial park located in the municipality of Ilopango. It houses several multinational companies in the electronics, automotive parts, and call center sectors. With direct access to El Salvador’s main roads and just 20 minutes from Comalapa International Airport, AIP is optimized for quick product-to-market cycles. The park boasts high-spec buildings, robust security services, and a reliable supply of utilities.

Together, these industrial parks in El Salvador form an integral part of the country’s economic development strategy, enhancing its appeal as a nearshoring destination for North American companies.

Access to Markets, Suppliers, and Labor Pools

El Salvador’s geographic location offers fast and efficient access to the U.S. East and Gulf Coasts within 3 to 5 business days via maritime routes. Air freight from Comalapa International Airport reaches major U.S. cities in less than five hours. For regional trade, the Pan-American Highway connects the country with Guatemala, Honduras, and Nicaragua, creating efficient overland shipping options.

In addition to U.S. market access through CAFTA-DR, El Salvador maintains trade agreements with the European Union, Mexico, Colombia, and Taiwan, among others. This favorable positioning is further enhanced by a local supplier network specializing in textiles, plastics, packaging, and basic electronics assembly.

Labor-intensive industries benefit from the urban proximity of many industrial parks in El Salvador, which reduces worker absenteeism and improves operational efficiency. The capital and surrounding departments account for over 40% of the national workforce, making these locations ideal for scaling operations.

Labor Availability, Cost, and Regulations

El Salvador has a young and abundant labor force with over 60% of the population under the age of 35. The availability of semi-skilled labor is strong in sectors such as textiles, light manufacturing, and customer service. Basic manufacturing wages average between $300 and USD 350 per month, significantly lower than in neighboring countries like Costa Rica or Panama.

The country’s labor laws are generally pro-business. The standard workweek is 44 hours, with overtime paid at 100% of the base wage. The minimum wage is sector-dependent and reviewed periodically. Union activity exists but is not pervasive in most industrial parks in El Salvador. Where unions are present, industrial relations are generally stable, especially in export processing zones.

Government initiatives have also increased the availability of training programs through institutions such as INSAFORP (Salvadoran Institute for Professional Training), which offers subsidized workforce development in collaboration with private industry.

Infrastructure: Transportation, Utilities, and Telecommunications

Industrial parks in El Salvador benefit from a growing investment in transportation and utility infrastructure. The recently modernized Port of Acajutla and expanding Comalapa International Airport provide reliable logistics options for exporters. The proposed Pacific Airport and Dry Canal connecting El Salvador to Honduras’ Atlantic coast are expected to reduce transportation bottlenecks further.

Power costs in El Salvador average $0.13 to $0.17 per kWh for industrial use. Renewable sources now account for over 60% of electricity generation, enabling companies to meet their sustainability targets. The water supply is generally adequate. Telecommunications are robust, with fiber-optic networks and nationwide 4G LTE coverage.

Security services are prioritized across all major parks, often including perimeter fencing, private security guards, surveillance systems, and coordination with national law enforcement agencies. Waste management, particularly for hazardous materials, is regulated but manageable, with several certified providers operating in-country.

Tax Incentives and Regulatory Environment

Export-oriented companies operating within designated free zones enjoy a suite of fiscal incentives, including:

• 100% exemption from income tax for up to 15 years.
• No import duties on raw materials, machinery, and equipment.
• Exemption from municipal taxes and real estate transfer taxes.

Incentives are governed by the Free Zones and Inward Processing Law and administered by PROESA (now part of Invest in El Salvador), which offers one-stop facilitation services. These advantages make industrial parks in El Salvador especially attractive for companies seeking cost efficiencies and preferential trade access.

The regulatory environment is considered business-friendly. According to the World Bank’s Ease of Doing Business index (before its discontinuation), El Salvador ranked well in categories like starting a business and trading across borders.

Lease Rates, Construction, and Operating Costs

Industrial space within El Salvador’s top parks typically leases from $4.00 to $6.00 per square meter per month, depending on building specifications, services, and location. Build-to-suit options are available, with construction costs ranging from $400 to $600 per square meter.

Operating costs are low to moderate by regional standards. Facility management services—including cleaning, maintenance, waste management, and 24/7 security—can cost between $0.50 and $1.00 per square meter per month.

Reliable electricity, water, and telecom services help reduce downtime and ensure compliance with international quality and safety standards. Environmental regulations for wastewater discharge and emissions are enforced but not prohibitively strict, particularly in designated industrial zones.

Logistics and Freight Costs

Logistics costs vary depending on the distance to customers and the type of transport. Average container shipping costs to U.S. ports range from $1,500 to USD 2,500, with door-to-door LCL (less-than-container load) services available through freight forwarders. Air freight to U.S. destinations costs around $2.00 to $5.00 per kilogram, depending on volume and urgency.

Domestically, last-mile delivery is efficient due to El Salvador’s compact geography. Most urban zones are within a three-hour drive from major ports and airports. Proximity to Guatemala and Honduras offers access to suppliers and regional distribution hubs, supporting cross-border logistics strategies.

Tenant Mix and Cluster Benefits

The tenant mix across the most prominent industrial parks in El Salvador includes global names in apparel (Hanesbrands, Fruit of the Loom), electronics (Yazaki, Jabil), and business process outsourcing (BPO) services (Teleperformance). These clusters create shared labor pools, supplier networks, and training initiatives, allowing businesses to scale operations efficiently.

For example, the textile and apparel cluster centered around San Marcos Free Zone and American Industrial Park provides collective access to dyers, weavers, sewing operations, and logistics providers. Similarly, call center and electronics firms benefit from shared training pipelines and multilingual labor availability in urban parks.

The track record of these parks in retaining and expanding global tenants demonstrates their reliability and strategic value. Many firms that entered El Salvador in the early 2000s have expanded capacity, citing infrastructure reliability and labor quality as key drivers.

Conclusion

Industrial parks in El Salvador offer a compelling value proposition for companies seeking to manufacture or distribute goods across the Americas. With strategic market access, competitive labor costs, well-maintained infrastructure, and strong government support, these zones continue to attract global investment. Parks like the International Free Zone, San Marcos Free Zone, and American Industrial Park have established themselves as anchors of the national economy, enabling El Salvador to compete in global manufacturing and service sectors.

As regional and global supply chains continue to shift, industrial parks in El Salvador will play a crucial role in enhancing Central America’s integration into nearshoring and reshoring strategies. With thoughtful planning and ongoing infrastructure upgrades, El Salvador is well-positioned to expand its footprint in global trade.

A Consolidated and Rapidly Expanding Channel

Digital commerce in Chile has not only arrived to stay, but it has also become a consolidated sales force that continues to expand year after year. This is confirmed by the latest NielsenIQ study on eCommerce in Chile, which shows a 12.3% increase in revenue compared to 2023. This figure reflects the dynamism of all digital sales channels, including supermarkets, durable goods, marketplaces, and other mass consumption sectors.

One of the most significant findings of the study is that total product sales through e-commerce already account for 14.7% of overall sales in the country—a figure that underscores the growing importance of this channel in the national economy.

Cyber Events: The Engine of Digital Evolution

According to Maximiliano Narducci, Retail Vertical Leader at NielsenIQ, “This is undoubtedly a significant number that continues to develop. It represents an increase of 1.3 percentage points compared to 2023 and is driven every year by peak sales during Cyber events.”

Events like CyberDay and CyberMonday have become major drivers of digital consumption. They attract thousands of new shoppers with enticing discounts, broad product availability, a diverse assortment, and the convenience of home delivery. These factors are encouraging more consumers to adopt the digital channel as their primary shopping choice.

New Users and Evolving Digital Consumer Profiles

The study also highlights that the growth of eCommerce in Chile has been driven primarily by middle (C2) and upper (ABC1) socioeconomic groups, with the latter accounting for 54% of total online purchases.

In terms of age demographics, Millennials (ages 30 to 42) are the primary users of this channel, accounting for 87% of total digital buyers. This generation, either digitally native or highly adaptable, values convenience, speed, and personalized experiences, all of which have contributed to their loyalty to eCommerce.

Chileans’ Favorite Online Purchases

Among the most frequently purchased product categories online in Chile are clothing (16%), supermarket groceries (11%), and food delivery (10%). Other popular categories include technology, travel tickets, and footwear, each with approximately 9% participation.

The durable goods channel (Durables 1P) has demonstrated strong performance in mobile phone sales, with a 16% growth. Monitors and hair dryers followed, with growth rates of 41% and 33%, respectively. These figures indicate that consumers are not only purchasing everyday products but also high-value technological and home-use items online.

Marketplaces: Leading Platforms for Durable Goods

Marketplaces also demonstrate noteworthy trends. While mobile phones remain the top-selling item, there has been significant growth in less traditional categories such as electric blankets (+371%) and mattresses (+87%).

This suggests that marketplaces are expanding their offerings to meet new consumer demands and that buyers are increasingly confident purchasing bulky or long-term-use items online—items that were previously limited to in-store purchases.

Online Supermarkets: Growth in Grocery and Perishable Purchases

Another channel gaining prominence within eCommerce in Chile is the online supermarket segment. According to the study, grocery purchases increased by 26%, while perishable goods rose by 29%. These types of products, which traditionally faced logistical barriers to digital sales, are now breaking that mold thanks to improved distribution networks, refrigeration systems, and faster deliveries.

Additionally, the personal care segment is also showing strong growth, primarily driven by digital pharmacy sales. This demonstrates that eCommerce in Chile is evolving into a comprehensive retail experience, where consumers can find everything from basic household items to specialized goods.

Durable Goods: 50% of Sales Are Now Online

One of the study’s most striking findings is that 50% of durable goods purchases in Chile are now made through eCommerce. This milestone marks a turning point in the digital transformation of the Chilean retail sector and positions the country as a regional leader in adopting digital platforms for high-value purchases.

Narducci noted: “We’ve moved beyond an eCommerce market centered solely on TVs, cell phones, and electronics. Now, we’re looking at a much more comprehensive online market, one in which all channels are participating. We’re also beginning to see increased purchases of food and perishable goods, with Chile emerging as a leader.”

Regional Comparison: Chile Leads in Mass Consumption eCommerce

Across Latin America, the average eCommerce penetration in the supermarket channel is 4.3%. However, countries such as Colombia (6.9%), Chile (6.7%), and Peru (5.2%) significantly exceed this average.

In Q1 2025, Chile reached a 7.2% participation rate in mass consumption eCommerce, leading the regional rankings. This not only reflects the maturity of the eCommerce channel in the country but also the growing trust of Chilean consumers in using digital platforms for everyday purchases.

Infrastructure and Logistics: Keys to Success

The success of eCommerce in Chile would not be possible without a highly efficient logistics infrastructure. Rising demand has pushed companies to invest in modern distribution centers, order-tracking technologies, same-day delivery options, and last-mile solutions.

Both local and international businesses have implemented innovations such as smart lockers, in-store pickup (also known as click-and-collect), and electric delivery fleets. These initiatives enhance customer satisfaction while also contributing to the sustainability of the supply chain.

The Future of eCommerce in Chile: What’s Next?

All signs point to an even more promising future for eCommerce in Chile. We expect to see greater use of artificial intelligence, augmented reality for virtual product testing, and increased personalization based on big data analytics.

In addition, more secure and faster digital payment options, combined with regulations that protect both consumers and merchants, will support the continued upward trajectory of the digital marketplace.

Conclusion: A Structural Transformation of Commerce

eCommerce in Chile has evolved from being an alternative shopping method to becoming a foundational pillar of the country’s retail ecosystem. Its consolidation across sectors such as supermarkets, pharmacies, technology, and fashion, combined with its leadership in regional mass consumption eCommerce, proves that Chile is at the forefront of digital transformation in Latin America.

With increasingly demanding and tech-savvy consumers, eCommerce in Chile is poised to keep growing, diversifying, and solidifying its role as one of the most important sales channels of the near Future.