SANTO DOMINGO - The Dominican Association of Hardware Importers (Adoimfe) states that this sector feels threatened by the existence of some 638 informal Chinese stores, scattered throughout the national territory, because they claim they constitute unfair competition.
This was explained to the newspaper El Inmobiliarioby the president of that entity, Rafael Bueno, who noted with concern that "since January 2022, sales have been decreasing month by month, but in the last three months they have been felt more deeply throughout the generalized commerce as the participation of foreign investors (the Chinese) increases.".
Another factor that, he points out, has an impact on the decrease in his profits is the low public investment in the construction sector, which, in his view, was reflected between the months of June, July and August last year with a drop in sales, of between 30 to 35 percent, in relation to the previous year.
In that regard, the spokesperson for that business sector said that they have reports that in the areas of education, health and housing, among others, construction and remodeling at the state level have decreased compared to previous years.
When asked if the hardware store owners' concerns had been made known to government authorities, Bueno responded affirmatively and explained that representatives of the Executive Branch had recommended that they participate in a working group to join forces to address the situation together with representatives from the General Directorates of Customs (DGA) and Internal Revenue (DGII).
The president of Adoimfe clarified that the sector is not opposed to the participation of foreign businesses in the national market, as long as they comply with the payment of taxes and the business rules established in the country.
He argued that it is impossible for them to compete with lower prices than those offered by these Chinese businesses and reiterated that they represent unfair competition because these foreign investors hire employees informally and evade paying taxes.
Adoimfe filed its complaint several months ago, and other sectors such as the American Chamber of Commerce (Amchamdr), which represents 1,600 companies, have also deplored the proliferation of Chinese businesses because they evade taxes and represent unfair fiscal competition.
In response to concerns expressed about alleged inequality, the director of the DGII, Luis Valdez, also assured last June that the government was working to reduce existing distortions with the implementation of electronic invoicing.
Hardware stores import items to the Dominican Republic for plumbing, electrical work, tools, steel, wood, plywood, among others.
Rafael Bueno stated that the prices of construction materials have remained relatively stable in recent months.
