Asunción, Agencia IP.- On September 8th, Paraguay celebrates «National Industry Day» for the first time with an investment grade rating and conditions promising a leap toward industrialization, as President Santiago Peña and Minister of Industry and Commerce (MIC) Javier Giménez noted.
The President highlighted the investment grade and negotiations with Brazil regarding using Paraguay’s electricity as key points for advancing industrial development.
The industrial sector currently represents 20% of the Gross Domestic Product (GDP) and employs around 310,000 people directly. «We know it can contribute much more because it still has enormous potential to be realized,» said Minister Giménez.
Industrial sector in Paraguay
The Ministry of Industry and Commerce (MIC) emphasizes agricultural production at an industrial level, with measures to promote biodiesel production, which has increased by 383%, and Taiwan’s zero tariffs on 17 products, including pork, which has seen a 71% increase in revenue so far this year.
The Ministry also highlights the diversification of industrial production by encouraging the establishment of industries under the maquila regime, with 23 new projects approved in the first year of government, and the simplification of procedures for setting up these investments and creating Simplified Joint Stock Companies (EAS), with 5,000 new companies established since August 2023.
In terms of support, besides simplifying procedures and providing favorable investment conditions, the MIC directly supports SMEs with machinery worth over USD 900 million through its support programs.
Measures are also being promoted to increase industry competitiveness and diversify export markets. Sectors showing consistent and sustained development include meat, dairy, sugar, beverages, tobacco, textiles and clothing, chemical-pharmaceutical products, metal products, and common metal manufacturing.
Over the past twenty years, industrial manufacturing exports have grown from 4% of total exports in 2003 to 13% in 2023. Exported industrial products are concentrated in auto parts, garments, aluminum and its products, food products, and plastics.