Haiti - FLASH : Koreans in Caracol, transfer their extension projects in DR - HaitiLibre.com : Haiti news 7/7

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Haiti - FLASH : Koreans in Caracol, transfer their extension projects in DR
02/04/2019 09:18:48

Haiti - FLASH : Koreans in Caracol, transfer their extension projects in DR
Two bad news for the Haitian economy. The first, S&H Global S.A, a Haitian subsidiary of Sae-A Trading Co. Ltd., one of the largest Korean garment companies in the world, which has invested $78 million to develop its operations in the Industrial Park of Caracol (PIC) https://www.haitilibre.com/en/news-4360-haiti-economy-laying-of-the-foundation-stone-for-the-caracol-industrial-park.html , created more than 13,000 jobs and which planned to increase this number to 20,000, decided to install in the Dominican Republic its next production facilities planned initially in Haiti.

Because in addition to the problems of mismanagement and security at the PIC and most likely the prospect of an increase in the minimum wage of 78.5% of workers in the subcontracting voted in first reading in the Lower House https://www.haitilibre.com/en/news-27310-haiti-politic-minimum-wage-the-lower-house-threatens-the-economy-of-haiti.html

The second bad news, the Inter-American Development Bank (IDB) has decided to suspend temporarily, a donation of $41 million approved in December 2015 https://www.haitilibre.com/en/news-16117-haiti-economy-$41m-from-idb-for-caracol-industrial-park.html , intended to finance the construction of new industrial buildings and other infrastructures within the Park of Caracol, considered with its 246 hectares, as one of the biggest and most modern in the Caribbean at its inauguration in October 2012.

The stopping of the S&H Global S.A expansion project in Haiti, the first Korean company and the largest to settle in the PIC, the risk of an increase of nearly 80% of the minimum wage in the sector Subcontracting following a vote of the deputies and its unforeseeable consequences, problems of insecurity insalubrity, energy too expensive and political uncertainties and social unrest frequent among others, are all factors that make today this infrastructure is less competitive and attractive to international investors, factors that were probably considered by the IDB in its decision.

Let's recall that the IDB has already disbursed $200.5 million since 2011 for the Caracol Industrial Park, where 25% of workers in textile subcontracting in the country work.

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