The industrialization process in Paraguay requires strengthening traditional productive sectors as a fundamental step toward adopting advanced technologies, according to Deputy Minister of Industry Marco Riquelme. This approach, supported by public policies aimed at promoting industrial investment, forms the core strategy of the Ministry of Industry and Commerce (MIC) to transform the country’s productive matrix. The government’s vision focuses on a gradual development model, consolidating sectors with immediate potential while preparing the groundwork for more technically complex industries in the medium and long term.
The textile industry stands out as a priority sector within this strategy due to its capacity to generate numerous jobs and Paraguay’s competitive potential in this field. Deputy Minister Riquelme highlighted the country’s comparative advantages, such as low energy costs, availability of raw materials, and strategic location, positioning Paraguay as a regional textile production hub. This sector is already experiencing sustained growth and could serve as a model for the expansion of other manufacturing industries that add value to the country’s natural resources.
The maquila regime represents another essential tool in Paraguay’s industrialization strategy. This system allows foreign companies to produce within national territory under significant tax advantages, effectively generating thousands of formal jobs. According to Riquelme, the maquila mechanism could be a key driver for consolidating national industry, particularly in sectors such as automotive production and electronics manufacturing. The experience gained through this regime provides valuable insights into attracting foreign direct investment aimed at industrial production with export potential.
Industrial parks are emerging as a strategic solution to overcome structural barriers that limit industrial expansion in Paraguay. The deputy minister emphasized that the lack of adequate urban territorial planning hinders industrial development in urban areas—a challenge that could be mitigated through the design and implementation of specialized industrial zones. These complexes would not only address logistical and infrastructure challenges but also serve as development hubs, concentrating services, suppliers, and technical training systems tailored to each industrial sector. This would generate economies of scale and enhance the competitiveness of participating companies.
The development of human capital is a crucial component of the progressive industrialization vision proposed by the Paraguayan government. Riquelme stressed the importance of preparing future generations to face the challenges of modern industry, requiring reforms in the education system and technical training programs. This approach recognizes that true industrial transformation relies not only on investments in machinery and infrastructure but also on developing specialized skills and knowledge within the national workforce. Adapting the educational system to meet the specific needs of emerging industrial sectors is one of the government’s top public policy priorities.
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Reevaluating Paraguay’s position within Mercosur is another central pillar of the industrial strategy. According to the deputy minister, Paraguay must evolve from its traditional role as a raw material exporter to a regional supplier of value-added products. Achieving this transformation will require not only investments and training but also a review of trade agreements and an active economic diplomacy that opens new markets for Paraguayan industrial products. The government of President Santiago Peña is committed to laying the foundation for this industrial revolution, with clear objectives: generating quality employment, improving competitiveness, and positioning Paraguay as a relevant industrial player in the region—representing a historic shift in the country’s economic model.
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