The maquila in Paraguay is a particularly attractive source of investment for manufacturing and re-export activities
In a recent press release, the Vice Ministry of Industry of the Republic of Paraguay, the agency in charge of Paraguay’s industrial policy, provided a series of figures that not only illustrate the dynamism of the maquila regime—an already highly dynamic export system—but also its growing impact on economic development, job creation, and regional competitiveness. According to the most recent data, the maquila in Paraguay exports over USD 1 billion and is one of the most strategic pillars in the country, with over 35,000 direct jobs, representing one of the main formulas for attracting investment and promoting industrialization. As Paraguay positions itself as a nearshoring opportunity for global companies and strengthens its competitive advantages in terms of logistics and energy, the maquila sector will also continue to grow in size and participation.
Highlights of the Maquila Industry in Paraguay
Exports above USD 1 Billion
The Paraguayan maquila industry registered USD 131 million in exports in October, taking the total amount for 2024 to USD 1.052 billion. The accumulated figure thus exceeds the USD 918 million exported in the same period last year, representing an increase of USD 134 million and continuing the steady expansion of the maquila in Paraguay. The results in the external component not only respond to strong demand, but also to Paraguay’s growing competitiveness as a destination for manufacturing and re-export activities. Attracted by cost efficiencies, logistical benefits, and access to strategic markets, particularly those of Mercosur, the maquila in Paraguay continues to attract companies seeking opportunities.
Major Exporting Industries in the Maquila Sector
Diversification is one of the characteristics of the maquila sector in Paraguay. However, some industries lead the ranking in contributing to the country’s export revenues. Auto parts remain in the lead with 34% of total maquila exports, a segment that has created an ecosystem of suppliers, logistics operators, and specialized labor. This has turned Paraguay into an increasingly relevant hub in the regional automotive value chain. In second place is the textile and apparel industry with 17%, an ongoing trend that further consolidates its role as an important generator of jobs and a stable export contributor. Aluminum and aluminum-derived products stand at 13% and food products are at 12%, showing that the maquila’s manufacturing portfolio is broadening beyond traditional sectors.
A diversified export portfolio of the maquila sector in Paraguay is a key competitive advantage, since, in addition to mitigating risks derived from external uncertainties, it also provides companies with greater agility in the face of changes in market dynamics.
Maquila Export Destinations
Mercosur countries are, by far, the main destinations of the maquila sector’s exports. This is a natural consequence of Paraguay’s geographic location and commercial integration within the bloc. Brazil accounts for 64% of the share, which is the main destination for Paraguayan maquila companies. Argentina is next in line with 15%, while Chile and Bolivia each account for 3%. Uruguay, for its part, is the last of the main five, with 2% of the total volume of maquila exports. In recent years, maquila companies in Paraguay have also been able to expand their presence in more distant markets. The United States and the Netherlands each represent 4%, which is an indicator of the sector’s growing geographic reach and diversity. This expansion is also strengthening the international reputation of the maquila industry as a platform focused on industrial manufacturing.
A Leading Force in Industrial Exports
In 2024, up to 66% of exports of manufactured industrial products (according to data reported by the Vice Ministry of Industry) corresponded to maquila companies. This percentage already illustrates the fundamental role that the maquila regime in Paraguay has been playing in the productive infrastructure and industrialization process of the country. The features of the maquila system, with tax incentives, greater operational flexibility, and a framework based on export dynamism, are increasingly attractive to investors seeking stable and predictable environments, especially in times of global uncertainty.
Geographical location and industrial poles
In addition to its continued growth in size, the maquila industry also plays a key role in the definition and development of regional industrial poles in the country. Currently, 91% of the approved maquila programs in Paraguay are concentrated in the departments of Alto Paraná, Central, the Capital, and Amambay. Of all of them, Alto Paraná is by far the most relevant, with 59% of the total, driven mainly by the district of Ciudad del Este and the municipalities that make up its area of influence. This department has established itself as one of the most dynamic industrial poles in Paraguay, thanks to its strategic location on the border with Brazil and its well-developed logistics corridors. On the other hand, the Central and Capital departments continue to capture investments thanks to the availability of talent, infrastructure, and proximity to essential services. Amambay, for its part, has shown a sustained growth curve and is increasingly attracting the attention of manufacturers and logistics operators in Paraguay.
These regions reflect how the maquila industry in Paraguay is sculpting a more geographically balanced industrial network in the country.
Job Creation: A Multitude of Opportunities
Job creation is, in turn, one of the main contributions of the maquila industry. Currently, the maquila system has 35,447 direct jobs. In October, companies in the sector hired 383 new employees, which represents a year-on-year growth of 6,676 jobs. In the most comprehensive and strategic understanding of the term maquila, a wide range of industries are generating growth in employment. The sector that stands out the most in this regard is the textile and apparel industry, which employs 8,076 workers in the system. Close behind is the auto parts sector, with 7,963. Intangible services—a growing category that includes technology, back-office operations, and other digital services—employs 3,959 people. Fourth and fifth place are, respectively, plastics and chemicals, with 2,742 employees.
Furniture manufacturing, pet food production, and the metalworking industry also stand out, since each has more than 1,000 direct jobs. The figures are not only evidence of the maquila sector’s role as an engine of exports, but also of its importance as a generator of formal, stable, and diversified employment in multiple value chains.
A Winning Model to Attract Investment
It is no coincidence that the maquila industry operates with such high volumes. The country has become an increasingly attractive proposition for the manufacture and re-export of products, due to a combination of very low labor costs, an abundant and competitive energy supply, an efficient logistics infrastructure, and a stable macroeconomic environment. In addition, the maquila regime itself provides a predictable and transparent legal framework that guarantees favorable conditions, such as tax incentives, simplified procedures, and the ability to import raw materials and machinery. All of these factors are making Paraguay an increasingly attractive destination for global companies looking for alternative production sites or seeking to restructure their supply chains. Faced with trends such as nearshoring and regional integration, the competitive advantages of Paraguay’s maquila are key to positioning it to capture new investment.
Conclusion: A sector with a promising future
The performance of the maquila industry has demonstrated its key role in Paraguay’s economic strategy and the growth potential it has for the coming years. With an export volume that exceeded USD 1 billion, thousands of new jobs, and a high degree of participation across a very diverse range of industries, the maquila formula has proven to be a reliable growth driver for competitiveness and industrial development. As the country continues to strengthen its industrial base and attract new investment, the maquila industry in Paraguay is expected to remain a strategic pillar in the long-term process of economic progress and deeper insertion into global value chains.