Paraguay industrial and technological expansion

Paraguay is experiencing industrial and technological expansion. Initially, the focus was on the tech sector, where companies began prioritizing digital transformation to address manual processes and administrative costs. In sectors such as agribusiness, livestock, and manufacturing, technology is increasingly viewed as an “operational necessity” to reduce waste. This period also saw infrastructure improvements, such as the inauguration of a new distribution center by Pargos Tech to support industrial and educational demand. Following these developments, the manufacturing sector demonstrated significant growth, with industrial manufactures increasing by 26%. The sector now contributes approximately 19% to the national GDP, reaching a production value of USD 8.548 billion in 2024. Exports of manufactured goods have also increased by 26% compared to the previous year. There are currently over 29,700 manufacturing establishments employing between 333,000 and 355,000 people. Efforts to bolster this growth include the launch of a digital competitive intelligence tool by the Ministry of Industry and Commerce to help foreign investors identify regional industrial capacities. The industry is diversifying from raw agricultural transformation into specialized areas like auto parts, textiles, plastics, and metallurgy, driven largely by the maquila regime, which has seen investments reach approximately USD 800 million. However, the Union Industrial Paraguaya (UIP) has called for long-term certainty, emphasizing the need for improvements in infrastructure, logistics, reliable energy, financing, and legal security to allow the industry to scale effectively. More recently, Paraguay has emerged as an attractive destination for Brazilian industries seeking more favorable business environments. Over 227 Brazilian companies have established operations in the country, drawn by a simple tax regime and less bureaucratic labor relations compared to Brazil. President Santiago Peña has actively invited Brazilian entrepreneurs to invest, citing the nation’s strategic location, competitive taxes, and young population.