The Government of Paraguay is advancing a new Industrial Parks Law designed to establish a robust legal framework that provides greater predictability for investors and facilitates the establishment of new industrial facilities. Spearheaded by the Ministry of Industry and Commerce (MIC), the initiative aims to regulate private, public, and mixed-ownership parks across the country, signalling a comprehensive new approach to national industrial strategy.
A primary objective of the proposed legislation is to enhance legal security for domestic and international investments. This includes crucial regulatory adjustments, such as permitting longer-term rental contracts for land designated for industrial activities. By offering greater stability, the government hopes to encourage significant capital investment and long-range planning, thereby making Paraguay a more attractive destination for major industrial projects.
A framework for strategic development
The push for the new Industrial Parks Law was a central theme during the recent presentation of the study “Logistical Integration Corridors – Main Nodes of Paraguay”. Marco Riquelme, the Minister of Industry and Commerce, detailed the government’s plans to representatives from the Development Bank of Latin America and the Caribbean (CAF), highlighting the strategic importance of the legislation.
During the event, Riquelme addressed the nation’s economic landscape, noting both its potential and its current obstacles. He stressed that while opportunities are abundant, significant logistical challenges must be overcome for the country to realise its full potential. The minister framed the situation as a critical moment for coordinated action.
“Paraguay has an enormous opportunity, but also a logistical challenge. This is a call to action to work together and plan the country’s logistical growth,” said Riquelme.
Vision for balanced national growth
The minister clarified that the government’s vision extends far beyond simply attracting foreign capital. The ultimate ambition is to generate tangible development opportunities linked to emerging logistical corridors and industrial hubs throughout Paraguay. The aim is to promote what he termed “a more balanced, competitive, and sustainable growth, where investment is accompanied by employment, training, and progress in every part of the country.” This strategy seeks to ensure that economic benefits are distributed widely rather than being concentrated in a few urban areas.
Furthermore, Riquelme highlighted the attractive incentives Paraguay already offers to promote industrial investment. He specifically referenced the legal regimes for maquila (in-bond manufacturing for export) and raw material processing. These frameworks are designed to effectively integrate infrastructure, logistics, energy, and other necessary services, creating a supportive ecosystem for new industries to flourish.
International support for Paraguay’s roadmap
The study presented by the ministry represents the beginning of a new phase of industrial planning for Paraguay, serving as a guiding tool to promote more equitable development. The government’s strategic roadmap has received strong endorsement from its international partners, including the CAF.
Jorge Srur, the Southern Cone Regional Manager and CAF representative in Paraguay, formally ratified the organisation’s support for the country’s plan. He emphasised the critical importance of logistical corridors as key instruments for achieving both productive and territorial integration, connecting regions and unlocking their economic potential. Srur expressed confidence in the government’s direction and its capacity to execute its strategy effectively.
“Paraguay has a concrete roadmap to move from strategy to projects, articulate public and private investments, and generate development in the territories that need it most,” concluded Srur.
Also read: Paraguay Seeks Industrial Transformation To Compete In Global Economy.
