Paraguay’s industry reaches National Industry Day, observed on September 8, with manufacturing expansion and an investment agenda that still depends on long-term credit, predictable energy, professional training and greater technology adoption.
Industry and Commerce Minister Marco Riquelme says industrial-origin manufacturing grew 26% in one year. Data from the Labor Observatory of the Ministry of Labor, based on the Continuous Permanent Household Survey of the National Statistics Institute, recorded 353,031 manufacturing workers in the second quarter of 2026, equivalent to 10.8% of the employed population.
The government projects industrial growth of 3.9% in 2026, above the annual average of 3.2% recorded in the previous decade. Riquelme also reported that manufactured exports to Brazil totaled about US$1.2 billion last year, with an estimated impact of 35,000 jobs. Food, pork and poultry proteins, textiles, auto parts, chemicals, machinery and equipment are among the prioritized sectors.
The strategy seeks to process more raw materials inside the country. At Indutex, in Lambaré, imported yarn is converted into fabric, dyed and sent to garment production. The production stage employs about 200 people, and the company operates four of its own stores. In Capiatá, Enerpy is developing processes to convert waste into synthetic oil and gas, an initiative presented as an example of the circular economy and local technology.
Financing is one of the main obstacles. Although industry accounts for about 19% of gross domestic product, it receives approximately 7.5% of bank credit, generally with terms of one to three years and a focus on working capital. The Ministry of Industry and Commerce is negotiating with public and private banks on a product for industrial investment with terms of up to 15 years, grace periods compatible with project implementation and guarantee mechanisms.
Energy also limits larger-scale projects. Javier Giménez, head of the Civil Cabinet and a former industry minister, acknowledged that the country still does not offer energy-intensive industries medium- or long-term electricity contracts in dollars, which are needed to provide financial security for investments. He estimated that US$15 billion in investment will be needed in the electricity sector over the next decade and said that Itaipu’s Annex C and the energy tariff should be defined later in 2026. Giménez added that, in the industrial energy mix, about 80% consists of biomass and hydrocarbons and 20% of electricity.
To reduce territorial uncertainty, the Ministry of Industry and Commerce presented the Competitive Intelligence Map, still in beta. The platform brings together data from all 263 municipalities, including industries, roads, borders, energy, logistics, labor and training centers. The system records 20,797 industries in 16 sectors and is expected to receive updates based on contributions from investors, governors and municipal authorities.
Digital modernization, however, remains limited. Vanessa Cañete, president of the Paraguayan Chamber of the Software Industry, says artificial intelligence is used mainly for writing, customer service and administrative tasks, while applications in production, maintenance, quality, supply and logistics remain uncommon. The 2025 Latin American Artificial Intelligence Index placed Paraguay 14th among 19 countries, with 31.20 points out of 100. The Travesía 4.0 study by the Inter-American Development Bank and the Industrial Union of Paraguay found that 17% of the industries surveyed use third- and fourth-generation technologies.
The debate over continuity gained ground at a meeting between Riquelme, former ministers Javier Giménez, Luis Castiglioni and Liz Crámer, and representatives of 25 business organizations. Participants advocated a state industrial policy capable of surviving changes in government. Riquelme cited the growth of exports under the maquila regime, from US$100 million to US$500 million, as an example of a policy built across different administrations.