Paraguay’s Ministry of Industry and Commerce announced that it will be investing $1.1 million in the manufacturing sector, mainly benefiting the clothing, textiles, and footwear industries, among other areas related to assembly operations.

It is expected that the investment, spread across seven projects, will boost Paraguayan exports of industrial origin which in January reached a total of $85.1 million. This represents a 22 percent increase compared to the same month in 2020, according to the latest report from the Central Bank of Paraguay. 82 percent of Paraguay’s manufacturing exports go to Mercosur countries, specifically Brazil and Argentina. The rest is mainly destined for the United States, Thailand, Bolivia, Chile, Ecuador, El Salvador and Mexico.

Paraguay has placed an emphasis on assembly manufacturing for its economic development. Since 1997 the country has been implementing a special tax regime to encourage companies to establish production operations and assembly of auto parts, textiles, leather and footwear, among other products.