RIO DE JANEIRO, BRAZIL – Although foreign direct investment (FDI) is at low levels compared to Latin America’s most advanced countries, Paraguay managed to increase it by 8.9% in the midst of the pandemic, according to Economic Commission for Latin America (ECLAC) data.
Thanks to the new investment promotion regulations in force – such as Law 60/90, the Maquila Law and the Investment Guarantee Law – Paraguay was able to attract large investment projects such as Cecon, Paracel and Omega Green.
The country’s Vice-Minister of Industry Ramiro Samaniego analyzed the sector at the end of the third quarter and disclosed that approved projects amounted to US$2.927 billion, a 2,300% increase over 2020.
The official said that data from the Ministry of Industry and Commerce (MIC) industrial sector monitoring reflects “the level of confidence” in Paraguay “as a destination for large productive capitals.”
The MIC data are analyzed at a general level through investments benefited with Law 60/90, installation of new manufacturing industries, incentive schemes for the import of raw materials, certificates for public purchases and new or renewal of industry registrations.
Samaniego also stressed the growth of manufacturing products, which “in 2003 represented 6.9% of total industrial goods exported, while today they account for 69.3%.”
“The recovery of the manufacturing industry is surprising, given that the accumulated exports from January through October this year total US$725 million, representing an increase of 68% compared to the same period in 2020 and a difference of US$292 million,” the Minister said.
The report also states that the most exported product in 2021 is auto parts, accounting for 28% of the total. The second most exported item is clothing and textiles with 18%, followed by aluminum and its manufactures with 15%, food products with 14% and plastics and related products with 12%, accounting for 87% of total exports.
In conclusion, Minister Samaniego pointed out that “preliminary projections indicate that exports could reach US$8.841 million in 2021.”