# Paraguay industrial and technological expansion

> Live situation record from CLSTR: https://clstr.news/situations/paraguay-industrial-and-technological-expansion
> Updated: 2026-09-10T18:59:51.000Z. Sources: 11. Developments: 4.

Paraguay is experiencing industrial and technological expansion. Initially, the focus was on the tech sector, where companies prioritized digital transformation to address manual processes. In sectors such as agribusiness, livestock, and manufacturing, technology is increasingly viewed as an “operational necessity” to reduce waste. Following infrastructure improvements, the manufacturing sector grew by 26%, contributing approximately 19% to the national GDP with a production value of USD 8.548 billion in 2024. The industry is diversifying from raw agricultural transformation into specialized areas like auto parts, textiles, plastics, and metallurgy, driven largely by the maquila regime.

Recent developments show a strategic push toward value-added industries. The government is targeting the forestry sector to transform low-yield cattle ranching lands into productive areas capable of exporting processed wood rather than unprocessed logs. Minister of Industry and Commerce Marco Riquelme noted that forestry can generate between 80 and 100 formal, specialized jobs per thousand hectares, aiming to combat rural exodus by bringing manufacturing to the interior. To support this, the government utilizes the Competitive Intelligence Map to provide data on infrastructure and energy to investors.

Paraguay has also emerged as an attractive destination for Brazilian industries seeking more favorable business environments. Over 227 Brazilian companies have established operations, drawn by a simple tax regime and less bureaucratic labor relations. The Chamber of Brazilian Businesspeople in Paraguay reports steady interest from small and medium-sized enterprises, with 20 to 40 entrepreneurs visiting monthly to explore opportunities.

## Timeline

### 2026-09-10: Paraguay targets value-added forestry industry and job growth

Paraguay seeks to expand its forestry industry by focusing on value-added wood exports and decentralized job creation in rural regions.

2 sources. https://clstr.news/cluster/paraguay-targets-value-added-forestry-industry-and-job-growth

### 2026-09-10: Paraguay attracts growing number of Brazilian industries

Brazilian industries are increasingly relocating to Paraguay, drawn by competitive tax incentives, strategic location, and less bureaucratic labor laws, according to business leaders and Paraguayan officials.

4 sources. https://clstr.news/cluster/paraguay-attracts-growing-number-of-brazilian-industries

### 2026-09-08: Paraguay manufacturing sector grows 26% amid rising investment

Paraguay's manufacturing sector has grown by 26%, contributing 19% to the national GDP and driving significant employment through diversification and the maquila regime.

4 sources. https://clstr.news/cluster/paraguay-manufacturing-sector-grows-26-amid-industrial-expansion

### 2026-09-04: Paraguay tech sector sees digital growth and logistics expansion

Paraguayan businesses are increasingly adopting digital technologies to optimize operations, while tech firm Pargos Tech has opened a new distribution center to expand its logistics capacity.

2 sources. https://clstr.news/cluster/paraguay-tech-sector-sees-digital-growth-and-logistics-expansion

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Cite as: Paraguay industrial and technological expansion. CLSTR, https://clstr.news/situations/paraguay-industrial-and-technological-expansion