Paraguay Land of Oportunities

8/10/2019 Paraguay Land of Oportunities

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Land of Opportunities

PARAGUAY


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Message from the Ambassador

Located at the heart of the South American continent,Paraguay's outstanding and consistent economic growth in recenttimes has attracted the attention of investors and businesses notonly from the surrounding countries, but also from the entireworld.

In 2013, Paraguay's Gross Domestic Product (GDP) growthwas at 13.6% outpacing most economies in the region and world,achieved mainly by the production of more than nine milliontons of soybean (fourth largest exporter in the world) and arecord export of high quality beef (sixth largest exporter in the

world). In addition Paraguay is the second largest steviaproducer, sixth largest producer of corn, and 10th largestexporter of wheat making it an agricultural and meat productionpowerhouse.

In addition, to accelerate the moderniza tion of the countrysmain infrastructures, an estimated US$ 75 billion investment willbe deployed by 2017 in airports, roads, and ports, which in itselfis projected to sustain a 6-7% GDP growth.

e consistent macroeconomic stability (historically lowinflation rate, 22.6% of GDP in international reserves [Sep. 2014]and twice the amount of the total foreign debt), free market basedcurrency exchange and free unrestricted flow of capital, lowesttax rates in the region for businesses and one of the most

advantageous taxincentive laws for directforeign investment inthe region, young andabundant labor force,ample clean andrenewable energy fromhydroelectric power, and strategic location to service the maineconomies in Mercosur, Brazil and Argentina, contribute tomaking Paraguay a high priority for investments.

One particular and critical advantage point for Japanesecompanies is that very few countries in the region have such deepand strong ties to Japan like Paraguay; a history that started withthe long and successful immigration of Japanese citizens to thecountry and their valuable and highly recognized and appreciat-ed contribution to the development of the country and the manyyears of the Japanese government's financial, technical, andeconomic aid to Paraguay.

It is my hope that this small publication aids you in reviewingand concluding like many others, that Paraguay is a true land ofopportunities for your endeavors.

Naoyuki ToyotoshiAmbassador of the Republic of Paraguay


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Paraguay Area (km)406,752Official Languages

Spanish and Guarani

Currency

Guarani (since 1943)

Population (2013)

6,709,730

Nominal Gross Domestic Product (GDP)Year 2013

US$ 29.6 billion

Nominal Gross Domestic Product (GDP Per Capita)Year 2013

US$ 4,368

Capital

Asuncion

Other cities and major economic areas

Ciudad del Este, Encarnacion,Salto del Guaira, Coronel Oviedo,Concepcion, Santa Rita

Economically Active Population EAP (2013)

3,215,51062.6% of population

Rate of unemployment (2013)

5.6% of the EAP

The Republic of Paraguay, located in the heart ofSouth America, offers a unique set of opportuni-ties for investors who are trying to obtain the bestcost-benefit investment. Paraguay provides notonly abundant and low cost natural energy andlabor resources, but also a strategic location thatenables access to the most important marketswith the highest income in the region. All this isoffered in a national legal framework thatwelcomes foreign investment in a positive andstable economic environment.

The friendly relationship between Japan

and Paraguay has also been strength-

ened by the Official Development Assis-

tance (ODA) provided by the Government

of Japan to the Government of Paraguay

since 1959. This assistance, mainly

implemented through the Japan Interna-

tional Cooperation Agency (JICA), consists

of the provision of technical cooperation,

non-reimbursable financial cooperationand loan assistance. Up to March 2012,

Japans total ODA to Paraguay reached

approximately JPY 250,000 million to

support the development of the agricul-

ture, infrastructure, health and education

sectors.

In April 1936 the ParaguayanGovernment granted its consent to124 famil ies of Japaneseimmigrants to enter the country.

This first group settled in anarea of approximately 11,000hectares on a plateau locatedabout 130 km southeast ofAsuncion, establishing the colony

of La Colmena to engage inagricultural activities.

In 1959, the Governments ofJapan and Paraguay signed anImmigration Agreement whichapproved the immigration of 85,000Japanese in a 30-year span.

In 1960, the Japan InternationalCooperation Agency (JICA),acquired land in what is today thedistrict of Pirapo in Itapua, where26 Japanese families settled, and87,000 hectares in Alto Parana toestablish the Colonia Yguazu,currently the largest colony ofJapanese immigrants in thecountry.

The Japanese introduced soy toParaguay. The first large scaleproductions started in theJapanese colonies in Itapua.

19364124

1

130

11000

1959

3085000

1960

26

87.000

Handshake designed by Pavel Pavlov from the thenounproject.com

Paraguay and Japan:A long-standingfriendly relationship

km

2013

2013

2013

62.6%

5.6

2013

1943

US$ 29.600

2013

US$ 4.368


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Argentina

Bolivia

Peru

Ecuador

Colombia

Venezuela Guyana

Surinam

French

Guiana

Uruguay

Brazil

ParaguayRiver

ParanaRiver

Tiete River

ParanaRiver

UruguayRiver

Paraguay is part of the MERCOSUR (Southern Cone Common Market) which allows it to have free access to

a market of more than 300 million people. With its strategic location, Paraguay is just two hours away by

plane from Buenos Aires, Sao Paulo, Montevideo or Santiago. It is located in the center of the bioceanic

corridor, currently under construction, which allows easy access to the most important ports and mar kets

of the region, as well as to free ports located both in the Atlantic and in the Pacific Oceans.

1,300km

Paraguay

Tiete-Parana

2,400km

AN IMPORTANT WATERWAYIN THE REGION

Paraguay - Parana - Uruguay

2,770km

MainCommercial

Centers

Paraguayanfree ports

Barges TransatlanticShips

Importantregional ports

Santiago

Buenos AiresMontevideo

Sao Paulo

ASU

Santacruz

Antofagasta

RosarioNueva Palmira

Paranagua

Mejillones

SantosCDE

Conchas

Corumba

Paraguay,a land of opportunitiesoffers you:ACCESS TO THE BIGGEST MARKETS IN SOUTH AMERICA

COMPETITIVE RESOURCESMACROECONOMIC STABILITY AND FINANCIAL FREEDOM

BENEFICIAL TAX SCHEME AND INCENTIVES

FOREIGN INVESTMENT PROTECTION AND GOOD BUSINESS ENVIRONMENT

Source: 2012Latin AmericanStatisticYearbook - ECLAC www.eclac.org*ProjectionYr.2013 **Incurrent US$(2011)

ACCESS TO ATTRACTIVE MARKETS

Paraguay is located in the center of the regionwith the highest incomeof South America

Population (Million)

Nominal GDP*(US$ Billion)

Average GDP per Capita** (US$)

South America(100%)

South America(100%)

South America(100%)

MERCOSUR(70%)

MERCOSUR(70%)

MERCOSUR(70%)

405

4,539

7,946

281

3,311

10,402

A) ACCESS TO THE BIGGEST MARKETSIN SOUTH AMERICA


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Most Paraguayan exports go through the Paraguay-Parana waterway in barges to Buenos Aires, Montevi-

deo and Rosario. Local routes connect Asuncion to border cities Ciudad del Este and Encarnacion which

allow convenient access to Brazil and Argentina.

Besides being a founder and full member of MERCOSUR (consisting also of Argentina, Brazil, Uruguay and

Venezuela), which allows its exports to enter said countries with tariff exemptions, Paraguay is also an

official observer to the Pacific Alliance and candidate for future membership.

Since 2014, Paraguay is the only MERCOSUR country with preferential access to the European Union as

part of the Generalized Scheme of Preferences (GSP+). Paraguay has been a member of the World Trade

Organization since 1995. It has never been involved in disputed cases neither as complainant nor respond-

ent.

LOGISTIC NETWORK

ASU

Belo Horizonte

BrasiliaCuiaba

Santacruz

La Paz

Antofagasta

Santiago

Buenos Aires

Montevideo

N. Palmira

Rosario

Cordoba

Salta

Jujuy

Resistencia

Santa Fe

CampoGrande

Punta Pora

PJCRio de Janeiro

Santos

Paranagua

Curitiba

Curitiba (PR)

Sao Paulo (SP)Rio de Janeiro (RJ)

Buenos Aires (AR)

Montevideo (UY)

Santiago (CL)

Santa Cruz(BO)

Roads from Asuncion (PY)

965km

1,370km

1,485km

1,269km

1,400km

2,250km

1,300km

Porto Alegre

Current Railways

Projected Railways

Road Network

Rio Grande

Sao Paulo

CDE

ENCENC

www.iirsa.org

Paraguayan labor offers

high and satisfactory performance

worldwide within our company

(Ignacio Ibarra CEO FUJIKURA)

YOUNG AND TRAINABLE LABOR FORCE

Population younger than 34 years old (%) (%)

Paraguay Bolivia LAC Average Brazil Chile Argentina Uruguay

Sources: DireccinNacional de Estadsticas,Encuestasy Censos (www.dgeec.gov.py)Worldmapper (www.worldmapper.net)/http://www.abc.com.py/edicion-impresa/economia/paraguay-opcion-de-futuro-para-empresas-brasilenas-558514.html

73.7 73.467.4 65.7

60.1 59.954.8

Paraguay hasthe youngest populationin Latin America.

Young and trainable labor force:Paraguay has the youngest population in Latin America with 73.7% ofthem younger than 34 years old. Its labor costs are among the most competitive in the MERCOSUR region.

Minimum Wage: US$430Social Benefits: 16.5% (US$70)Total = US$500

B) COMPETITIVE RESOURCES


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50MW

h

month

CLEAN ELECTRIC ENERGY AT LOW COST

COMPETITIVE TAX SYSTEM

Cost of Electricity for Industries 50 MWh/month in US$

Paraguay

TAXES

CORPORATE INCOME TAX

PERSONAL INCOME TAX

VALUE ADDED TAX (VAT)

PARAGUAY

10%

10%

10%

35%

35%

21%

25%

25%

23%

34%

27.5%

25%

ARGENTINA URUGUAY BRAZIL

Peru

Chile

Brazil

Mexico

Colombia

Uruguay

Guatemala

El Salvador

Dominican Rep.

Costa Rica

US$ 59

US$ 82

US$ 107

US$ 121

US$ 135

US$ 139

US$ 151

US$ 195

US$ 218

US$ 233

US$ 246

Plug-In designed by Edward Boatman, Lightning designed by Ryan Oksenhorn, Tree designed by Humberto Pornaro, Tax designed by Juan Pablo Bravo from the thenounproject.com

50 MWh/US$

Clean electric energy at low cost: Paraguay has the most abundant and one of the cheapest electric

energy sources of the MERCOSUR. Electro intensive industries can access the best infrastructure required

for their technological development. Paraguay is the biggest exporter of electricity thanks to its three

hydroelectric dams: Itaipu, Yacyreta and Acaray, with the possibility of the construction of several others.

Itaipu is a binational enterprise between Paraguay and Brazil. It is the worlds greatest hydroelectric dam

in terms of power generation, its installed capacity is 14,000 (MG) Megawatts and it produces around

90,000 (GW) Gigawatts/hour. Paraguay only uses around 13% of the energy produced; generating electricity at

a very low price. Besides the production of Itaipu, the dam of Yacyreta, built together with Argentina,

places Paraguay as the worlds first exporter of 100% renewable energy, free of gas emissions that

produce the greenhouse effect.

Source: Ministry ofFinance (www.hacienda.gov.py)

Source: CIEREnergy Report onCIERCountries 2013

Land: Real estate pricesare very competitive. In the past decade, Asuncion was declared theworlds cheapest capital city five times in a row by Mercer Huma n Resource Consulting.

Lowest Tax Burden in the Region: Paraguay offers a very competitive tax scheme with the lowest ratesin the region, which translates in lower production costs for those companies operating within its national

territory.


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1992-2014*

20032013

20081100

STRONG ECONOMIC GROWTH FOR A DECADE

Paraguay economic growth 1992-2014*

Average economic growth 2003-2013

6.96.4

5.24.8 4.7 4.7 4.6 4.6 4.6

3.5(

%)

0

2

-2

4

6

8

10

Source: IMF-WEO Update Apr-2014andCBP.

ARG PER URU PAR COL BOL CHI VEN ECU BRA

1.7

4.95.3

6.8

1.6

4.2 Average

1992-2002

1.8

Average

2003-2014*4.8

0.1 0.0

2.1

4.85.4

6.4

13.113.6

4.8

-1.4

-2.3

-0.8

-4.0

-1.2

0

2

-2

4

-4

-6

6

8

10

12

14

Source: IMF-WEO Update Apr-2014andCBP.

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

4.1

GDP

4.34.3

Source: Bloomberg

80

130

180

230

260

M02-08

M05-08

M08-08

M11-08

M02-09

M05-09

M08-09

M11-09

M02-10

M05-10

M08-10

M11-10

M02-11

M05-11

M08-11

M11-11

M02-12

M05-12

M08-12

M11-12

M02-13

M05-13

M08-13

M11-13

M02-14

M05-14

USD exchange rate (Index January 2008 = 100)

Real

Peso

Guarani

Guarani (Paraguay)

Peso (Argentina)

Real (Brazil)

Paraguay offers a healthy environment for investment characterized by a predictable economy and

controlled level of inflation.

In the past decade, Paraguay experienced a solid average economic growth of 4.76% annually, among the

highest in the region. In 2013, Paraguays GDP growth was the third highest in the world with 13.6%.

C) MACROECONOMIC STABILITY ANDFINANCIAL FREEDOM

Paraguay has never experienced high rates of inflation and its currency (the Guarani) recently celebrated

its seventieth anniversary, without suffering any changes of denomination since its conception.


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Paraguay offers a financial system with a sound capital position and a steady improvement in credit rating,

as well as free capital mobility. Average earnings and remittances between 2000 and 2012 were US$376

million.

In 2014, Paraguay with a 22% ROI is the second most profitable country in Latin America for Foreign

Direct Investment (FDI). Peru ranked first with 25%. Source: CEPAL (2014s Regional Forecast)

Rating

Ba2 Feb 2014

Jan 2013

Dec 2010

Jun 2010

Apr 2008

Nov 2007

Apr 2003

Oct 1995

+

+

+

Ba3

B1

B3

B3

Caa1

Caa1

BB-(initial)

CreditWatch Date Rating

CreditWatch Date Rating

CreditWatch Date

BB Jun 2014

Dec 2013

Aug 2012

Jun 2012

Aug 2011

Aug 2010

Jun 2007

-

+

BB-

BB-

BB-

BB-

B+

B

Jul 2004B-

Feb 2003SD

Nov 2002B-

Jun 1999B

Feb 1999B+

Jul 1999B2(initial)

Jan 2014

Ratings up

Ratings down

Initial ratings

BB-

Feb 2013BB-(initial)

Source: Bloomberg

The Paraguayan tax system is simple and convenient. The investment law grants the same treatment to

foreign and local investors. Paraguay has signed security agreements for investments with many coun-

tries. There are many special investment regimes, such as the Law 60/1990, the Maquila Regime and the

Duty-Free Zones.

I. Law 60/1990

According to Law 60/1990, national or foreign investment

projects that are approved for this regime will be exempt from

the following charges:

Fees and internal taxes on the imports of capital goods, raw

material and inputs intended for local industry and

foreseen in the investment project.

Value added tax when acquiring capital goods that will be

used in industrial, agricultural or livestock production

cycle.

All taxes imposed on the establishment, incorporation and

registration of companies or enterprises.

Taxes on remittances abroad for the payment of interest

and commissions and reimbursement of capital (levied on

investments over US$5 million).

Taxes and other fees on remittances abroad for the

payment of interest and commissions and reimbursement

of capital when the investment is financed from abroad and

is more than US$5 million.

Investment projects that want to benefit from this law need to

receive approval from the Ministry of Industry and Commerce

and the Ministry of Finance.

Eligible InvestmentsThe exemptions established in Law 60/1990 are applicable to

investments in financing, capital goods, specialized technical

assistance, mining, hotel, leasing of capital goods, provision of

cargo and air passenger transport services, public transporta-

tion, health, radio, television, press, rural and urban fixed

telephone services, mobile telephone services, scientific

investigation, silos, storage and data transmission services,

among others.

D) BENEFICIAL TAX SCHEME AND INCENTIVES

Import tariff onCapital Goods(machinery & equipment)

0%Value Added Tax (VAT) onacquired Capital Goods(in or out of the country)

Taxes on remittances

abroad & payments ofloans obtained abroad(capital, interest & commissions)

applied to investmentsover US$5 million

0%

0%Taxes on payment ofdividends & transfer ofprofits abroad(applied for investments

over US$5 million for 10 years)

0%


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0%

0%

0%

0%

II. Maquila Regime

Maquila is a production regime in which companies located in Paraguay can

produce goods and services for export. The production is done under the

request of a foreign company (headquarters) through an international

contract, and the production can be sent to any country in the world.

The main benefits this regime offers are:

Exemption of import duties on raw material, inputs, parts and componentsthat enter the country temporarily for their transformation and later export.

Exemption of import duties on machinery and equipment related to theMaquila activity during the period established in the contract.

Possibility of national goods and services provision as a complement tothe Maquila production system.

Single tax of 1% to be levied on the value added in national territory.

Companies interested in carrying out Maquila activities must present aMaquila Program to the National Council for the Maquila Export Industries(CNIME).

Maquila companies with approved programs must provide sufficient guarantee to the General Customs

Office for the amount of the taxes that may eventually be applicable, which shall be canceled and returned

when the temporarily imported merchandise exit the country. Whichever type of guarantee presented

global or floating it will be exempt from all types of taxes and interests. This guarantee is also applicable

when goods, products or services are under the Maquila temporal export regime.

MAQUILA CONTRACT

COMPANY ABROAD

HEAD COMPANY

TO PRODUCE:TangiblegoodsIntangiblegoodsServices

FOR EXPORT

Temporary import of capital goods,primary materials,elements, parts,c omponents.

MAQUILA INVOICEWORKFORCE COSTS +

GOODS AND SERVICES +DEPRECIATION +

MAQUILA SERVICE

NATIONAL MARKETUp to 10% of previous years production

can be sold paying applicable taxes or duties

(reinstatement of temporarily suspended taxes/duties).

TAX SUSPENSION

SINGLE MAQUILA TAX

with warranty policy presented

1% over the national value added

MAQUILA COMPANY

EXPORTS

MAQUILAOPERATION

PRODUCTS

GOODS

SERVICES

CONTRACT

Factory designed by Owen Payette McGarry, Building designed by Nate Eul, Box designed by Josh Deane from the thenounproject.com

INTERNATIONAL MARKET

TO OTHER MERCOSUR MEMBER COUNTRIES

Products and services ready for export

can enter other Mercosur member countries

free of tax


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MERCOSUR Rules of Origin

Necessary regional (MERCOSUR) content

Brazil Argentina Uruguay Paraguay

Globe designed by Proletkult Graphik, Teddy Bear designed by Alex Hartmann, Barcode designed by Brandon Manning from the thenounproject.com

Source: Law523/95- National Free Zone Council

Within MERCOSUR, Paraguay has the

most competitive rules of origin:

up to 60% of inputs can be of extra

zone origin, while only 40% of inputs

are required to claim MERCOSUR

sources origin. This allows tariff-free

market access to the entire region.

III. Duty-Free Zones

Paraguay offers a free trade zones regime for the establishment of commercial, industrial and services

enterprises. Companies established in a free trade zone whose activities are focused exclusively on

exports pay a single tax of 0.5% of the total value of gross export income, known as free trade zone tax.

Companies which, beside their exports, also sell their products or services in the Paraguayan territory are

subject to Corporate Income Tax of 10% of the proportion of products sold in national territory.

Under this regime, machinery, capital goods and raw ma terial enter the Free Trade Zone with a 0% import

tax. The commercial exchange of goods and services between Free Trade Zone users, as well the stocking

of raw materials and goods, are tax exempt.

There are currently two free zones in the region of Alto Parana, bordering Brazil and Argentina, in which

several international companies are actively operating.

60% 60%50%

40%60%

40%Extrazoneimportedcomponentsallowedinproduct

Requiredregionalcomponents:RawmaterialsParts&componentsLaborServicesEnergy,waterImportFreights*

*If theserviceis providedbya companyestablishedinParaguay

Paraguay has a special treatment regarding rules of origin of manufacturedproducts until 2023. It is easier for a product to acquire MERCOSUR origin in Paraguaythan in any other member country.

IV. Exports Incentives

Exports are exempted from paying Value Added Tax (VAT), since the government recognizes a fiscal credit

for stages preceding production. There is also a Temporary Admission Regime for imports, which a llows

the exemption of import duties and VAT.

Investments need a legal framework that is

stable, safe and transparent, that would give

legal protection to investors so that the invest-

ments could be long term, accomplishing stabilityand sustainable economic growth with them.

Paraguay has an economic system based on free

trade and as such there is a total openness to all

national and foreign investments no authoriza-

tion from the government is necessary.

Furthermore, it has full legal stability because

dispositions and economic regulations do not

change in an untimely way, an advantageous

situation for the investor, having the certainty

that in the process of investing the rules will not

be changed.

The National Constitution guarantees economic

and commercial freedom, there are no restricted

E) FOREIGN INVESTMENT PROTECTION ANDGOOD BUSINESS ENVIRONMENT

Free ZoneImport

Service Suppliers in Paraguay

0% taxes

0.5%Taxeson invoice value

Service Suppliersinside FZ

Clientsinside FZ 0% taxes

0%taxes

International Services Suppliers

0.5%

Export

Machineries, capital, raw materialenter with 0% of taxes.

Exchange of goods and services betweenusers inside the FZ

Raw materials and goods not liable to taxwhile stored insede FZ

0.5% taxes on invoice value

Clients in Paraguay

International Clients

Finished Products

Stock of importedraw materials and inputs

(FZ = Free Zone)

0%VAT

Taxesof0.5%0%Impor

ttariff

Impor

ttariff


11/15

Source: Getulio VargasFoundation& Leibniz Institute for EconomicResearch- May 2014

MERCOSUR Business Environment Index

areas for investment, nor discriminatory treatment or

limitations. Therefore, every national or foreign

individual has the right to develop any economic

activity of their preference as long as it is not contrary

to the morals of the nation, public order or national

security, respecting the legal norms that regulate it.

At the same time, the Investment Law Nr. 117/91

establishes the following principles:

Equality: Foreign investment receives the same

treatment as a national one. Consequently, it is not

admissible to impose neither conditions nor discrimi-

natory or favorable treatment to national and or

foreign investments.

Property rights: National and foreign investors can

acquire goods and real estate in Paraguay, with no

other limitation than the ones established in the

Constitution and national laws.

Free exchange: This law guarantees the inflow and

outflow of capital, the remittance of dividends,

interests, commissions, royalties for transfer of

technology and others without restrictions. However,

all foreign exchange transactions, remittances or

transfers shall be subject to taxation as established by

law.

Freedom to hire investment insurance locally or

abroad.

Freedom of commerce:

Freedom to produce and commercialize goods and services

Free price-setting, with the exception of those goods andservices which have production and commercialization

regulated by law

Freedom to import and export goods and services, with theexception of those prohibited by law

National and foreign investors shall benefit from these

guarantees provided they comply with the Tax, Work

and Social Security Regimes.

Universality: Foreign investments are welcome in allsectors of the economy, with the exception of those

included in specific local laws, such as: hydrocarbons

sector, mining, telecommunications, forestry and

others which require special permits, licenses or

concessions granted by the local authority.

Automaticity: With the exceptions aforementioned,

foreign investors are authorized to invest in any other

sector of the economy without needing prior authori-

zation, unless the investment is subject to a special

regime. In such case, the investor must follow the

procedures established by such regime.

In May 2014, Paraguay ranked first in Latin America

with the highest average Business Environment Index

(BEI) for the past year. The BEI is constructed by the

renowned Getulio Vargas Foundation (GVF) and the

Leibniz Institute for Economic Research of the

University of Munich to measure Latin American

countries' current economic scenario and their

expected situation in the following six months.

Argentina

July 2013

7275

145

128

140

130

105

20

77 77 7571

20 20 20

Points

October 2013 January 2014 April 2014

Argentina

Argentina

Argentina

Brazil

Brazil

Brazil

Brazil

Paraguay

Paraguay

Paraguay

Paraguay

Urugua

y

Uruguay

Latin AmericaUruguay

Uruguay

Venezuela

Venezuela

Venezuela

Venezuela

0

20

40

60

80

100

120

140

160

9589

95100

109


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ParaguaysInternational Trade Position

No. 1largest exporter ofclean electricity in the world

No. 2highest Return onInvestment (ROI)for direct foreign investment

in Latin America (CEPAL 2014).

No. 1in currency stabilityin Latin America

No. 3largest economic growthin the world in 2013 (13.6%)

No. 4largest exporter ofsoybean in the world

No. 6largest producer ofsoybean in the world

No. 6largest exporter ofcorn in the world

No. 6largest exporter ofbeef in the world

No. 10largest exporter ofwheat in the world

No. 4largest exporter ofsoybean oil in the world

No. 5largest exporter ofsoybean expeller in the world

No. 4largest exporter ofyuca starch in the world

No. 3largest producer andexporter of yerba mate(ilex paraguariensis)in the world

No. 3largest fleet of bargesin the world(2,200 barges and 200 tugs),No. 1 USA, No. 2 China.

No. 2largest producer andexporter of stevia in the world


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Paraguay offers unique advantages and strong

incentives for foreign investments through an

established legal framework.

Besides Law 60/1990 which offers fiscal incentivesto national and international investment, and Law

117/1991 which establishes equal treatment to

domestic and foreign investments, in 2013 the

Government of Paraguay also approved Law 5102

on Investment Promotion in Public Infrastructure,

Expansion and Improvement of Goods and Services

provided by the Government, also known as

Public-Private Partnership Law.

In 2015, more than 17 contracts of major public

works with an annual estimated value of over

US$1.5 billion are planned to go under public

international tender. All of the projected works

have an approximate 20-year time horizon and are

aimed at:

Organizing the development of infrastructure,

transportation and logistics services of Paraguay

Promote an effective multimodal integration

Diversify the countrys logistics corridor

Develop programs for future infrastructure

investments through public-private partnerships

Establish international corridors

Implement a bioceanic corridor

Over the next five years, the Government of

Paraguay is planning to invest around US$75

billion in infrastructure works, which is remarkable

considering that the average public work invest-

ment during the last 12 years was below US$180

million per year.

Examples of Infrastructure ProjectsPrioritized by the ParaguayanGovernment:

The Golden Triangle Asuncion-Ciudad del

Este-Encarnacion

This program includes more than 800 kilometers ofimprovements of the current road infrastructure through

Public-Private Partnerships or concessions.

Estimated investment: US$1 billion

Parana-Paraguay Waterway

With an approximate extension of 1,000 kilometers, theworks to be undertaken include maintenance dredging,

signage improvement, and strengthening the supportsystem for navigation.

Estimated investment: US$400 million

International Airports Upgrading Programs

This program aims to modernize the air transportation systemby granting the operation of major airports to the private sectorand provide a world class service within a regional hub concept

for the transport of passengers and cargo.

Comparative advantage of the airport network in Paraguay: Annual operating level of 98% due to optimal weather

conditions Flat topography, no more than 100 meters above sea level Equidistance to the biggest cities in South America

Estimated investment: US$130 million in five years

Commuter Railroads of Asuncion

The objective of this project is to build 44 kilometers of doubletrack lines, with electrical system with third rail, and five terminals.

The expected demand is over 50,000 passengers per day.

Estimated investment: US$250 million

Water and Sanitation Projects

The objective is to reach 100% coverage of water supply andsanitation services throughout the country.

Estimated investment: US$2.7 billion

Investment Opportunities


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CONTACT US FOR MORE INFORMATION AND ASSISTANCE

Embassy of Paraguay in Japan

www.embapar.jp

[email protected]

+81 3 3265 5271

www.embapar.jp

[email protected]

+81 3 3265 5271

Private Opportunities in Paraguay

Paraguays private sector also offers attractive

investment opportunities in the following:

Food industry

Textile industry and clothing

Metalwork industry

Wire harnesses and autoparts

Shoes and leather industry

Reforestation

Logistics

Livestock production, slaughter for export

Agricultural transformation (irrigation, quality

certification)

Railroad transportation for passengers

Real estate

Agribusiness

Business services

Financial sector

CONCLUSION

Paraguay offers the most opportunities and the

best investment climate for Japanese companiesin South America.

The Japanese technology, discipline, innovation

and leadership, combined with Paraguays young

and disciplined labor force, energy, natural

resources, low tax, expanding markets, and safe

macroeconomic environment, offers a magnifi-

cent opportunity to establish win-win alliances.

All this, in the framework of over 78 years of

cooperation and friendship.

We invite you to visit and invest inParaguay, a land of opportunities

Sources :

Investment and Exports Network (REDIEX):

www.rediex.gov.py

Ministry of Industry and Commerce:

www.mic.gov.py

Central Bank of Paraguay:

www.bcp.gov.py

Ministry of Finance:

www.hacienda.gov.py

Ministry of Public Works and Communications:

www.mopc.gov.py

General Directorate of Statistics, Surveys and Censuses:

www.dgeec.gov.py

National Council of Maquila Industries Exports (CNIME):

www.maquila.gov.py


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Embassy of Paraguay in Japan

www.embapar.jp

[email protected]

+81 3 3265 5271

www.embapar.jp

[email protected]

+81 3 3265 5271

Documents

Paraguay Land of Oportunities