Paraguay has established itself as an industrial hub in South America, drawing prestigious international brands such as Lacoste, Wrangler, Fila, and Good American, which now feature "Made in Paraguay" on their labels. The engine behind this phenomenon is the maquila regime, a tax incentive system that allows foreign companies to import raw materials and machinery tax-free, as long as the entire production is exported.
Three factors make the country competitive in the region: low operating costs, a skilled workforce, and a strategic location. In addition to already established brands like Polo Wear, the sector has diversified to include services such as telemedicine and software development aimed at foreign markets.
Factories are concentrated in four strategic zones that offer logistical infrastructure and access to export routes. The maquila regime has become a vital engine for Paraguay's economy, generating jobs and foreign currency, and positioning the country as an industrial hub that exports not only grains and energy but also fashion, technology, and industrial quality.