Paraguay’s domestic market of 7 million
inhabitants and a GDP of just $28 billion is not an obvious
first choice for foreign direct investors. Yet, there is
something in the air of Asunción that says that things
may be changing.
PARAGUAY | Foreign direct investment: Manufacturing change
Auto parts, logistics, manufacturing – these are all sectors gaining increasing interest from foreign direct investors in Paraguay
The Hard Rock Café is set to open its first branch in
the country by the end of year. Korean brands, like Samsung and
Kia Motors, are ubiquitous — not to mention Toyota. An
unprecedented 16 million mobile phones were imported last year,
most of them from China.
Moreover, several car-part suppliers have recently set up
shop in the country. Companies such as Yasaki are attracted by
low taxation and a friendly business environment. Fujikura,
another second-tier Japanese supplier for the automotive
industry, says its costs at its local plant are 40% lower than
in neighboring Brazil.
The strategy is to use Paraguay as a platform to import
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