One of the most striking milestones of 2024 was the approval of 36 new maquiladora programs, amounting to a total investment of $103 million. This capital inflow has created 4,928 new jobs, increasing the sector’s workforce to 29,956 positions. These figures underline the maquiladora industry’s role in fostering employment opportunities and strengthening Paraguay’s economic foundation.
The export maquiladora industry in Paraguay has been a magnet for investors due to its clear regulatory framework and competitive advantages. Each newly approved program brings technological innovation, skill development, and industrial diversification, which enhance the country’s attractiveness as a global manufacturing hub. This growing workforce meets industry demands and positions the country to accommodate future expansions.
Unparalleled Export Performance
Exports from the maquiladora sector reached a record-breaking $1.119 billion in 2024. Of this total, $1.087 billion was attributed to consumer goods, while $32 million came from intangible services. This performance demonstrates the sector’s capacity to produce high-demand goods and services and highlights its ability to compete effectively in global markets. The impressive export figures reflect the industry’s pivotal role in bolstering Paraguay’s international trade profile.
The export maquiladora industry in Paraguay also benefits from its integration into global value chains. The sector’s ability to deliver high-quality products at competitive prices has cemented Paraguay’s reputation as a reliable partner for international businesses. Major export destinations include neighboring countries and markets in North America, Europe, and Asia, showcasing the global reach of Paraguayan goods and services.
A Collaborative Effort
The success of the maquiladora industry is a testament to the synergy between Paraguay’s private and public sectors. Streamlined processes and simplified regulations have created a business-friendly environment that attracts significant foreign and domestic investment. In a press release, Rediex emphasized the importance of this collaboration: “Thanks to public entities and the companies that choose Paraguay. These achievements result from collective commitment, and we will double our efforts to set new records in 2025.”
This commitment to fostering a competitive landscape ensures that Paraguay remains an attractive destination for businesses seeking operational efficiency and cost advantages. Public initiatives, including workforce training programs and infrastructure development, further strengthen the foundation of the export maquiladora industry in Paraguay.
Diverse Industries Driving the Maquiladora Sector
The maquiladora industry in Paraguay is not limited to a single type of production but encompasses a wide range of industries, each contributing to the sector’s dynamic growth. Key industries within this sector include:
Textile and Apparel Manufacturing
This sector is one of Paraguay’s most significant contributors to the maquiladora industry. Companies produce garments, footwear, and accessories for global markets, leveraging Paraguay’s competitive labor costs and efficient supply chains.
Automotive Components
The production of automotive parts and components has seen significant growth. These exports, from wire harnesses to metal and plastic parts, play a critical role in global automotive supply chains. These industries have also benefited from advancements in automation and quality control standards.
Electronics and Electrical Equipment
Electronic goods assembly, including household appliances and industrial equipment, represents another important segment of the maquiladora sector. The industry’s focus on quality and cost efficiency ensures its competitiveness in international markets. Collaborations with educational institutions have fostered a technically skilled workforce, further bolstering this segment.
Plastic Products
Paraguay’s maquiladoras also produce a wide variety of plastic goods, such as packaging materials and consumer products, which are essential for industries ranging from agriculture to retail. These products contribute to sustainable practices by incorporating recyclable materials and eco-friendly processes.
Agri-Food Processing
Food processing and packaging is a growing segment of the maquiladora industry, catering to the increasing demand for Paraguayan agricultural products in international markets. This sector’s success showcases Paraguay’s ability to add value to its raw materials before export.
Intangible Services
In addition to tangible goods, the maquiladora industry encompasses software development, customer support, and other IT-enabled services, contributing $32 million in exports in 2024. These intangible exports highlight Paraguay’s expanding role in the knowledge economy.
Strategic Advantages of Paraguay’s Maquiladora Industry
Paraguay’s maquiladora sector benefits from several strategic advantages that make it an appealing choice for businesses:
Geographic Location: Situated in the heart of South America, Paraguay offers excellent connectivity to major regional markets, including Brazil, Argentina, and Chile.
Competitive Costs: Low labor and operational costs provide a significant advantage for companies seeking to optimize production.
Favorable Tax Regime: The maquiladora law allows for duty-free imports of raw materials and components as long as the finished goods are exported. This tax incentive has been instrumental in attracting investment.
Stable Economic Environment: Paraguay’s consistent economic growth and political stability create a secure investor environment.
Additionally, the export maquiladora industry in Paraguay benefits from the country’s robust infrastructure development. Projects focusing on improving transportation networks, such as highways and ports, have enhanced supply chain efficiency and reduced logistical costs, further solidifying Paraguay’s appeal to investors.