Premium Brands Choose Paraguay for Industrial Production

Paraguay has established itself as a strategic destination for the maquila industry, attracting international premium brands like Lacoste, Fila, and Wrangler seeking a combination of efficiency, competitive costs, and a favorable production environment. This growth positions the country as an important regional manufacturing center with international projection.

The maquila regime has allowed the country to diversify its productive offerings in sectors such as apparel, auto parts, footwear, food, and technological services, generating formal employment and strengthening its regional positioning. Carina Daher, President of the Chamber of Maquiladora Companies of Paraguay (Cemap), highlighted that in addition to the mentioned brands, Good American, Polo Wear, and other globally recognized firms also operate in the country. In the realm of intangible products, companies such as Itaú Brasil, Tigo Bolivia, and telemedicine services for regional hospitals stand out.

“This sector has grown notably, both in tangible products and services, which demonstrates the versatility and capacity of maquila to adapt to diverse global needs”, explained Daher. The executive emphasized that Paraguay has demonstrated its production capacity in key sectors such as clothing manufacturing, footwear, auto parts, food products, and plastic manufacturing, while diversifying in recent years toward sectors like technology, software, and renewable energy.

The geographic impact of maquiladoras is strategically distributed throughout the national territory. Alto Paraná leads the concentration with 47% of companies under this regime, followed by the Central department with 29% and Asunción with 9%. Among the determining factors for this distribution, Daher noted the proximity to key markets such as Brazil, Argentina, Bolivia, and Chile, the availability of industrial properties, and an attractive fiscal regime with significant tax incentives.

The maquila industry has generated a significant impact on employment, with more than 32,000 people working directly in the sector. A notable aspect is the high percentage of women occupying positions in different industrial plants. Workers receive continuous training, both locally and at international headquarters, ensuring the development of technical skills and the quality of products made in Paraguay.

“Maquila sector invest in their employees, offering opportunities for professional growth and optimal working conditions. This is fundamental to ensuring a skilled and motivated workforce”, noted the Cemap president. This focus on continuous training has elevated the professional level in various industrial and technological areas, creating a virtuous circle of development.

Paraguay distinguishes itself from other countries in the region through a combination of competitive factors: its strategic location allowing easy access to markets like Brazil and Argentina, the availability of qualified labor at competitive costs, and a favorable tax environment with tax rates of 1% on value added in national territory. “The tax regime and proximity to regional markets are determining factors. Additionally, Paraguayan companies are very receptive to creating joint ventures, which fosters strategic alliances that benefit both parties”, commented Daher.

Follow us on Instagram. 

Looking to the future, the Paraguayan maquila industry has demonstrated resilience and sustained growth, even during global economic crises. The Cemap President envisions a promising horizon, highlighting the need to continue innovating and diversifying to attract greater investments in areas such as advanced manufacturing, and medical and electronic device production.

“With appropriate strategies, we can consolidate Paraguay as an industrial hub in the region. This requires investments in infrastructure, reducing bureaucratic processes, and a focus on technology”, concluded Daher, reaffirming that maquila has become a cornerstone of the national economy, driving industrialization and generating formal employment with international projection.

El artículo en español aquí.