WHY INVEST IN PARAGUAY

Paraguay: Potential in Agribusiness and Added Value

Paraguay stands out in the production and export of meat, soybeans, corn, rice and other products
agroindustrial. Now it seeks to increase industrial added value and develop products
advanced to compete in global markets. Its advantages in labor costs, energy,
land and international logistics drive their competitiveness.

Meats and derivatives with high added value

Paraguay has potential in the export of meats and fats with high added value. The demand for protein continues to grow, especially in Asia. In 2022, it exported 474.297 tons of bovine, ovine, goat, pork and poultry meat, leather, leather articles, leather footwear, as well as canned and prepared meat. The goal is to boost processing and added value, attracting local and foreign investment.

grains and oils

Paraguay seeks to expand exports and added value in grains and oilseeds, such as soybeans, rice, corn and sunflower. The country has potential in the production of oils and by-products, including biofuels (2nd and 3rd generation) and bioplastics, taking advantage of crops such as soybeans, sunflowers, and cassava.

Aromatic and medicinal herbs and infusions

Paraguay stands out in the use of aromatic and medicinal herbs and infusions, with opportunities in alternative medicine and essential oils. The supply chain is based on associations and cooperatives of small producers, promoting economic and social development. With their wide availability, Paraguay can develop its own brands and attract investment for the production and manufacture of final products.

In short, Paraguay seeks to increase added value in agribusiness. With its cost competitiveness, it seeks to develop advanced products in meat, grains, oils and herbs, attracting investment and competing in global markets.

Documents of interest

• Sector sheet of Meat and Derivatives:
  • Portuguese: Meats and Derivatives
  • English: Meat and Meat Products
  • Spanish: Meat and Derivatives sector file
• Food and Beverages sector file:
  • Portuguese: Food and drinks
  • English: Food and Beverages
  • Spanish: Food and beverage sector file
• Artavia tab:
  • Spanish: Artavia file – Value-added agroindustry

Links of interest

• National Institute of Food and Nutrition: More information
• Ministry of Agriculture and Livestock: More information
• National Animal Health and Quality Service: More information
• National Service for Animal and Seed Quality and Health: More information
• Ministry of Environment and Sustainable Development: More information

Forest Potential of Paraguay: Opportunities in a Growing Industry

Paraguay has enormous potential in the forestry industry due to its latitude, fertile land, subtropical climate, and abundance of water resources. Although not yet fully exploited, the country is in a strategic position, as the neighboring provinces of Brazil and Argentina have developed a thriving value-added forestry industry. The growing global demand for wood, especially in Asia, together with factors such as climate change and the relative cost of land in other countries, make Paraguay a destination with high potential in this industry.

Growth cycle and comparative advantages

The increase in population and world average income generates a greater demand for agricultural products and support activities. Paraguay stands out for its unique species of wood and a short payback period of 6 years. In addition, the country ranks first in the Environmental Performance Index's sustainable nitrogen management index. (CHECK) With abundant water, fertile land and competitive costs, as well as a subtropical climate and optimal latitude for commercial species, Paraguay has significant comparative advantages in the forestry sector.

Programs and growth prospects

Decree 2285 of 2014 declares of national interest the forestry programs and undertakings that promote the sustainable use of the soil and the generation of biomass for energy and cellulose purposes. In addition, the National Reforestation Plan establishes the goal of creating 450,000 hectares of forest plantations in 15 years. These programs provide a favorable framework for the growth and development of the forestry industry in Paraguay.

In summary, Paraguay has vast untapped forestry potential and is in a strategic position to capitalize on the growing global demand for timber. Its comparative advantages, government programs and growth prospects make the country an attractive destination in the ever-growing forestry industry.

Documents of interest

• Forest sector sheet:
  • Portuguese: Forestry and Floriculture
  • English: Forestry
  • Spanish: Forestry sector sheet
• Artavia tab:
  • Spanish: Artavia File – Forestry

Links of interest

• Ministry of Environment and Sustainable Development: More information
• National Forestry Institute: More information
• Ministry of Agriculture and Livestock: More information

Potential of the Creative Industries

In Paraguay we have the Federation of Creative Industries, formed in 2018, it includes content software industries, inventions, video games, news agencies.

The strong combination of human capital focused on design, art and technology, with an environment that fosters entrepreneurship in creative industries ‒textile and fashion design, arts and musical composition, graphic and digital arts, audiovisual design and production, advertising, etc. ‒ and a strong local culture based on a rich history, living culture, artistic, craft and textile tradition and unique natural resources, make the development of the orange economy ‒one where history, culture and tradition come together with local talent and economic growth‒ has enormous potential in Paraguay.

All of this is also supported by our real advantage in costs, stability and location in sectors that require moderate investment and quick installation.

Documents of interest

• Creative Industries sector sheet:
  • Portuguese: Creative Industries and Services
  • English: Services and Creative Industries
  • Spanish: Creative Industries tab
• Artavia tab:
  • Spanish: Artavia File – Creative Industries

Links of interest

• Ministry of Information and Communication Technologies: More information
• National Council for Science and Technology: More information

Paraguay as MERCOSUR Logistics HUB

As the central heart of Mercosur and a river bridge between Bolivia and the Pantanal region in Brazil, Paraguay has enormous logistics potential ‒river and land transportation, distribution and regional collection, storage, maquila services and value-added industry, service and maintenance of boats, supply and care of boats, etc.‒ that must be consolidated in all its scopes since it not only constitutes an industry that offers high potential by itself, but it is an essential part of the ability to export and import of the nation and its neighbors, as well as adding value ‒design, primary transformation, manufacturing, brand development, distribution‒ to Paraguayan production and its neighboring nations.

A sector with triple potential

1. Activation of local investments and generation in a deep value chain with maintenance services for tugboats and barges, supplying ships, preparation and deployment of crews, provision of logistics services – customs, storage, distribution, documentation, traceability, etc.
2. Investment attraction at three levels: maintenance and development of waterway infrastructure and its complementary logistics system; international transport and logistics companies; and attraction of complementary investments in industries boosted by the waterway in Bolivia, Brazil and Paraguay.
3. Export of direct services, complementary services and transformation of regional raw materials – our little St. Louis (Missouri), Panama or Singapore – around the waterway.

Strengths of Paraguay that make investment attractive

• 3.500km of navigable rivers, linking 5 countries
• 25 million tons transported per year (grains, soybean meal, iron ore, general cargo and fuels)
• 500 workers directly
• Stable and functioning international agreements: River Transport Agreement for the Paraguay Paraná Waterway, CIH – Intergovernmental Waterway Committee and CDA – Waterway Agreement Commission

International companies active in the waterway:

Documents of interest

• National Logistics Plan:
  • Spanish: National Logistics Plan
• Artavia tab:
  • Spanish: Artavia File – Regional Logistics

Links of interest

• Ministry of Public Works and Communications: More information
• National Administration of Navigation and Ports: More information
• National Electricity Administration: More information
• National Customs Directorate: More information

Paraguay: An Attractive Destination for Light Manufacturing

The light manufacturing industry has experienced sustained growth over the last 35 years, becoming an engine of development throughout the world. Paraguay stands out as an attractive destination for light manufacturing, especially in sectors such as textiles, leather, auto parts, metallurgy (light and heavy), plastics, assemblies, and other sectors, due to its high competitiveness, macroeconomic stability, and advantages in productivity and costs. of human capital and energy.

Opportunities in textile manufacturing

The global textile manufacturing market is estimated at $1.3 trillion by the year 2025, driven by population growth, rising disposable income, and urbanization. There is an increasing focus on value added through factors related to the environment, health and safety. Paraguay offers competitive labor costs, with one of the lowest social charges in the region, affordable real estate prices, and the cheapest electricity in MERCOSUR. In addition, it has a solid legal framework that guarantees favorable conditions for investors and exporters.

Prospects and government support

Paraguay has extensive legislation that supports the manufacturing industry and investment, including laws related to the export maquiladora industry, tax incentives, investment guarantees, automotive policies, benefits for the raw materials and inputs regime, public alliances -private and infrastructure development. According to data from the Central Bank of Paraguay, manufacturing of industrial origin reached 2021 million dollars in exports in 1.243, with 900 million corresponding to export maquila, and greater growth is expected driven by the incorporation of new companies and a increase in production.

In summary, Paraguay offers a favorable environment for light manufacturing, with advantages in costs, productivity and macroeconomic stability. The country is presented as a strategic destination for companies that wish to serve both the regional market and the global market, taking advantage of local raw materials and those of neighboring nations. With a solid legal framework and the support of technical training programs, Paraguay has the potential to become a growth center in the light manufacturing sector.

Documents of interest

• Textile and Clothing sector file:
  • Portuguese: Textile and clothing
  • English: Textile and Apparel
  • Spanish: Textile sector file
• Pharmaceutical Chemical sector file:
  • Portuguese: Pharmaceutical chemist
  • English: Pharmaceutical Chemical
  • Spanish: Pharmaceutical Chemical Sector Sheet
• Autoparts and Assembly sector sheet:
  • Portuguese: Autopeças e Montagem
  • English: Autoparts and Assembly
  • Spanish: Auto parts and assembly sector file
• Artavia tab:
  • Spanish: Artavia Sheet – Light Manufacturing

Links of interest

• National Council of Maquiladora Export Industries: More information

Mining Potential of Paraguay

Paraguay has strategic potential in uranium mining and mineral processing. Growing global demand for "clean" nuclear power drives the need for uranium, and Paraguay has competitive advantages in this sector. While countries like China, India and Russia build new nuclear reactors, uranium mining in the United States is not profitable, which represents an opportunity for Paraguay.

Outlook for the mining sector

Paraguay has infrastructure, logistics and human capital specialized in mining and mineral processing. There are concessions for the exploration and exploitation of uranium, titanium and gold and companies have shown interest in developing these deposits.

Mining Law No. 3180 establishes the conditions for obtaining and using mining concessions, including royalties for exploitation. In addition, Paraguay has the opportunity to position itself as a primary processing center for minerals from Bolivia and neighboring countries, taking advantage of its availability of resources, energy costs, and access to the waterway.

In short, Paraguay has the potential to become a relevant player in uranium mining and mineral processing. With competitive advantages, a favorable legal framework and opportunities for regional collaboration, the country can benefit economically and strengthen its strategic position in the global mining industry.

Documents of interest

• Artavia tab:
  • Spanish: Artavia File – Value Added Mining

Links of interest

• Vice Ministry of Mines and Energy: More information
• Ministry of Public Works and Communications: More information

Paraguay as a green technological HUB

The global market for IT services: is expected to exceed US$2025 trillion by XNUMX.

• Expected growth rate, CAGR: 2.5%-8.5%
• Includes: cloud computing, data storage/management; software, security and processing as a service (aaS), IT support outsourcing, etc.

Demand Drivers

• Lower costs: IT Services reduce IT capital and administrative expenses, particularly related to energy and maintenance
• Operational efficiency and user experience: new technologies (eg the cloud) allow easier deployment of services (both the IS and the services offered to consumers)
• Better data security and risk management: crucial in a world that increasingly generates, processes and makes decisions based on data
• Due to all of the above, there is a business and state trend towards the digital transformation of processes and services that will require additional capacity at a global level.

Industry Characteristics

• Investment in human capital: 525 ICT courses offered by the National Professional Promotion Service (SNPP). Within the higher education offer, there are 17 universities that offer the degree in Software Engineering Systems Analysis
• Power and cooling cost: Availability of abundant electricity at low cost is crucial: data centers consumed 2% of total US electricity in 2014 and are expected to increase by 4% per year
• Infrastructure: National ICT Plan will improve connectivity and offer low cost of land and development
• Legal certainty: Specific contracts with foreign companies, as well as the strengthening of intellectual property legislation: Copyright and Related Rights Law; National Intellectual Property Policy Plan 2030
• Main clients of Computer Services: technology, marketing and consulting companies. Offering Computer Services becomes a key element to attract them. Main markets and data center hosts: US, Europe and Asia Pacific (China, India and Australia).

Cloud Hosting or Hosting Services

With its advantages in energy costs, favorable legislation, and growing connectivity, work must be done to develop and consolidate a position in hosting and administration of computer centers and server banks.

Documents of interest

• Creative Industries sector sheet:
  • Portuguese: Creative Industries and Services
  • English: Services and Creative Industries
  • Spanish: Creative Industries tab

Links of interest

• Ministry of Information and Communication Technologies: More information
• National Council for Science and Technology: More information

Growing demand and limited supply

The global population of older adults is expected to reach 22% by 2050, with the majority living in low- and middle-income countries. The presence of chronic diseases due to inadequate nutrition and lack of physical activity increases. Although the global value of the senior care industry will reach $1.5 billion by 2024, the growth in demand is outpacing the ability of public systems to meet it.

Need for skilled labor and specialized housing

Elderly care requires a large number of personnel trained to meet their particular needs. The demand for housing designed specifically for older adults that is affordable and tailored to their needs is on the rise. The value of services such as skilled non-medical housing, personal assistance, and advanced nursing care is growing, and is forecast to grow 8.4% in the global senior care market from 2017 to 2024.

Paraguay as an attractive destination for personal services and education

Paraguay offers a high quality of life and a low cost of living compared to other countries of similar income, making it an attractive center for personal services such as health care, pensioner living, and care for the elderly. Also, the country is becoming a popular destination for foreign students due to the significant cost difference in higher education. This has a positive impact on local communities, boosting business and attracting investment.

In summary, care for the elderly presents significant opportunities in Paraguay due to the growth in global demand and the country's competitive advantages. However, further training of personnel, development of specialized housing, and promotion of personal services and education are required to take full advantage of these opportunities.

Documents of interest

• Artavia tab:
  • Spanish: Artavia File – Personal Services

Links of interest

• Ministry of Health and Social Welfare: More information
• Ministry of Education and Culture: More information
• National Agency for Evaluation and Accreditation of Higher Education: More information
• National Council of Higher Education: More information
• National Secretariat for the Human Rights of Persons with
  Disability: More information

Nature and Culture

Paraguay offers a unique combination of historical-religious tourism; biodiversity, focused on bird watching and the Gran Chaco; of living culture, herbs and crafts; and nature and medium adventure (soft adventure) in a vast territory with a particular and highly accessible scenic beauty; Backed by small and medium-sized companies that provide a unique option to get to know the traditional warmth and friendliness of the Paraguayan up close, resulting in a unique, authentic and different experience for each tourist.

Characteristics of tourism in Paraguay

Despite recent growth in tourist volume, the industry is heavily dependent on excursion tourism from Argentina and Brazil, with only a small fraction coming from extra-regional markets. A comprehensive tourism strategy has already been proposed to increase the volume, length of stay, and number of daily transactions of extra-regional tourists based on selected positions for Paraguay. Immediate potential positions: historical-religious-cultural; mild to medium adventure; bird watching; Health & Wellness

With an approach aimed at the development of regional clusters, with a multiplicity of chains in service areas and added value, based on small and medium-sized companies, tourism is expected to become a motor of national development and of many communities throughout the world. country. To reach its full potential, the sector requires adjustments in the conditions of its factors, foreign investment, and above all, marketing directed to extra-regional markets.

Documents of interest

• SENATUR Investment Guide:
  • Spanish: SENATUR Investment Guide
• Master Plan for Sustainable Development 2023-2030:
  • Spanish: Sustainable Development Master Plan 2023-2030
• Artavia tab:
  • Spanish: Artavia – Tourism

Links of interest

• National Secretariat of Tourism: More information