Ten years ago the economic development of Taiwan had just began to soar. Low-cost labor attracted foreign investment and the export processing zones exported one container after another and brought in bundles of foreign currency.

Today, wages in the Dominican Republic range from about 400 to 500 pesos (about US$80-100) and the export-processing zone is playing an important role in its economic development. There are presently nine export processing zones which are home to 182 factories from various countries. With few exceptions everything is exported. Things have changed. Now, businessmen from the R.O.C. have become the foreign investors.

In 1983 the Dominican Republic made revisions in law concerning foreign investment and increased incentives for foreign investment, so as to increase job opportunities and the earning of foreign currency. According to regulations, factories established in the export processing zones (also known as "free districts") must export all goods. The benefits, however, are many. Raw materials and imported equipment are tax-free. If the profit doesn't exceed one-fourth of the capital, then it may be remitted unconditionally. There are also incentives for investment in local necessities.

In 1984, U.S. President Reagan advocated CBI in order to assist Caribbean nations to develop economically and stabilize America's "back yard" by giving reduced tax incentives on goods exported to the U.S. and larger quotas.

At the end of 1986, investment in the Dominican Republic suddenly became very popular. On their own initiative, people from the R.O.C. went to the Dominican Republic to invest and have built seven factories in the export-processing zone with each factory hiring about 400 employees on the average. Two more factories are under construction. Of these factories five of them manufacture clothing.

"Three or four years ago everyone was still full of hesitation and just came to take a look. It wasn't until last year when the NT dollar appreciated that people considered building factories outside the R.O.C.," says Chang Shui-chin, an investor in Sido toilette tissue.

Parkson Cheng, manager of Trap Rain feels that Taiwan's labor-intensive industry is in a pinch. There is pressure from the outside for the NT dollar to appreciate and for quota limits. On the inside there is the problem of wage increases and labor shortages. Under these kinds of conditions "there are only two roads to take--automation or relocating factories abroad."

People in the Dominican Republic, like those in other Central and South American countries, are pure, friendly, and romantic. With or without money, it's a pleasant occasion to sing or dance along the shores of the Caribbean.

People get joy out of life from this secluded paradise, yet from a practical business perspective, work initiative is not strong enough and efficiency is not high enough.

"This is not to say that it's difficult getting things done, it's just that they are not used to it," says Robert S. C. Ho from Hong Kong. "When buying in Hong Kong you make a phone call and the person selling will come. In the Dominican Republic the buyer has to go to the seller's door and talk over the price. He may promise to deliver on that day, but that may not be the case."

There are two sides to everything. A scarcity of goods also means that there is money to be made. There are more than six million people in the Dominican Republic and there is much room in the industrial market. The technology needed in this area is not very advanced and the capital needed is limited. This is an area in which small and mid-sized enterprises in the R.O.C. are particularly competent. Outwardly, the U.S. is very close, and then there is the CBI which can switch the relationship between the R.O.C. and the U.S. buyers to the Dominican Republic so that both countries can make use of low-cost wages for production. There is still space for the development of labor-intensive industry.

"Doing business here is not as competitive as it is on Taiwan," says Chang Shui-chin. Before he set up a factory in the Dominican Republic he couldn't speak any Spanish and didn't have any friends there. Going to the market by himself he discovered that even the toilette tissue was imported. He calculated the cost, and knowing that the technology involved in making the toilette tissue was not difficult, he decided to make an investment.

Increased R.O.C. investment can result in greater influence. Allowing the U.S. and other countries to make this a buying market is beneficial to everyone. Kuo Pao-fu hopes that the Dominican Republic will find itself in the same situation as Taiwan as buyers from around the world come to purchase goods. As more Chinese invest, competition will increase. Kuo is making plans to invest in a dye factory and hopes to sell his products to latecomers in the textile and clothing business.

"Now, all the yarn that people use is dyed on Taiwan and shipped in. An order has to be placed six months ago in order to make it on time, but if we dye the yarn here we can get the colors we want at any time and the elasticity is much greater." He is full of hope for the factory. "There definitely will not be a shortage of customers. Wherever there's money to be made the Chinese people will be sure to follow."

[Picture Caption]

Hsu Tzu-yen, a Chinese, has invested in this export-processing zone which is under construction. It's the first export-processing zone established by Chinese overseas.

Kuo Pao-fu (front row, second from right) and the employees he brought with him to get the job done have their photo with R.O.C. Ambassador to the Dominican Republic Wang Meng-hsien in front of the factory.

Chang Shui-chin has set up a factory which produces toilette tissue. "Si" stands for China and "Do" for Dominican Republic in the company's trademark "Sido."

Seen above is a local worker on the job at Chang Shui-chin's paper factory.

With the advise of consultants Kuo Pao-fu is very meticulous when it comes to managing.

Labor laws in the Dominican Republic stipulate that female workers are entitled to three months maternity leave. So investors in factories do their best to employ male workers.

(Above) Ambassador Wang Meng-hsien visits a shrimp farm. Seen to the right is investor Kang-ming Ho. (Below) The shrimp farm.

Industry in the Dominican Republic has just gotten off the ground so industrial products are scarce. All the articles seen here in this shrimp farm are from Taiwan.

Electrical power in the Dominican Republic is not sufficient so gas lanterns are a necessary household item.

Hsu Tzu-yen, a Chinese, has invested in this export-processing zone which is under construction. It's the first export-processing zone established by Chinese overseas.

Chang Shui-chin has set up a factory which produces toilette tissue. "Si" stands for China and "Do" for Dominican Republic in the company's trademark "Sido.".

Seen above is a local worker on the job at Chang Shui-chin's paper factory.

With the advise of consultants Kuo Pao-fu is very meticulous when it comes to managing.

Labor laws in the Dominican Republic stipulate that female workers are entitled to three months maternity leave. So investors in factories do their best to employ male workers.

Ambassador Wang Meng-hsien visits a shrimp farm. Seen to the right is investor Kang-ming Ho.

The shrimp farm.

Industry in the Dominican Republic has just gotten off the ground so industrial products are scarce. All the articles seen here in this shrimp farm are from Taiwan.