10 local firms to join LA investment confab

At least 10 private companies in the CNMI would send representatives to the 2004 Business Opportunities Conference in Los Angeles next week, the Governor’s Office disclosed yesterday.

Galvin DeLeon Guerrero, the governor’s special assistant for special projects, said the 10 companies represent diverse industries on the islands.

The conference, which is being organized by the U.S. Department of the Interior, will be held at the Marriott Hotel in downtown Los Angeles on Sept. 23 to 24.

Guerrero earlier said the conference would provide local companies the opportunity to partner with U.S.-based firms for possible investments and projects in the Commonwealth.

In an interview yesterday, Guerrero refused to reveal the identity of most of the companies that would send representatives to the conference, but said they are involved in retail, manufacturing, wholesale, agriculture, energy, education, and legal services.

Some of these companies are Saipan Shipping, International Business Professional College, and a hot pepper production business on Rota. The DFS Galleria is one of the event’s co-sponsors.

Guerrero said the CNMI government has already begun talks with some prospective investors from the United States.
Some of the prospective investors are eyeing the possible establishment of call centers and back offices in Micronesia, he said. Among the prospective investors are education institutions.

Guerrero earlier said that the CNMI listed 10 priority industry clusters for the conference, which include telecommunication-based industries such as call centers; education, which entails the invitation of learning institutions to expand services in the Northern Marianas; and tourism development, such as the cruise industry and ecotourism.

The list also includes retirement communities, privatization of public services, transshipment and U.S. Customs pre-clearance, retirement communities, film industry, and gaming.
He highlighted the advantages of doing business in the CNMI, citing its duty-free status for eligible goods exported to the United States and a favorable wage structure. He also said the CNMI provides tax incentives through the issuance of qualifying certificates for major investments, tax rebates, and the security and familiarity with the currency and the American judicial system.
Besides control of its own immigration and labor, the CNMI’s other competitive advantages are its proximity to major East Asian markets and its status as a U.S. territory. The CNMI government also wants to privatize certain public services such as waste and water management, and also utility services.