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PARAGUAY. Embajada de la República del Paraguay en la República de China – TAIWAN. What ´s new in Paraguay?. Paraguay is a vibrant and solidified democracy . Free Market economics, along inclusive social programs resulting in a pragmatic approach to development
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PARAGUAY Embajada de la República del Paraguay en la República de China – TAIWAN
What´snew in Paraguay? • Paraguay is a vibrant and solidified democracy. • Free Market economics, along inclusive social programs resulting in a pragmatic approach to development • Government Management is oriented to results. • Presidential Commitment to the Vision ¨Simple Country¨; ¨Serious Country¨. • Paraguay is now a prime destination for investments.
...wehaveachievedrelevant positions in the global market…
…wehavemaintained a strongmacroeconomic position… GDP Growth – Paraguay 1992 - 2014 Stability of Price Inter-annualInflation Average 1992 -2002 GDP Exchange Rate Internationa Reserves (% GDP) Exchange Rate Source: Bloomberg
…reflectedin thecontinuousimprovementinthecountry risk rating… ContryRiskEvolution
… wehave a cleardevelopment plan… NationalDevelopment Plan 2030 • PLAN NACIONAL DE DESARROLLO 2030_ EJES DE ACCION 2 3 • Reducción • de pobreza y • Desarrollo social • Crecimiento económico inclusivo • Inserción de Paraguay en • el mundo 3 1 PovertyReduction & Social Development 2 Vigorous and Inclusive Economic Growth Total Insertion of Paraguay In theWorld
…withstrongcommittmenttoimprovinginfrastructure… Investment of USD 16,480 millionwithinthenext5 years: Source: Ministry of Finance
…with a legal frameworkorientedtoenhanceCompetitiveness… • Fiscal ResponsibilityAct; • Public –PrivatePartnershipAct; • 5074 Act; • Investments Security Act: understudy in Parliament. • TaxScheme 10:10:10 • Implementation of theVision: ¨Simple Country¨, ¨Serious Country¨
… resulting in a robust GDP GrowthForecast… GDP - Base GDP - Total Source: Ministry of Finance
Key Resources GOOD FINANCIAL FORESCAST YOUNG LABOR FORCE LOWEST TAX BURDEN IN THE REGION STRATEGIC LOCATION RAW MATERIAL WITH QUALITY AND LOWER COST CLEAN ELECTRIC ENERGY AT LOW COST SUSTAINABLE ECONOMIC GROWTH ECONOMIC STABILITY
Tariff for Imports of Capital Goods (Machinery and Equipments) 0% (VAT) Capital Goods Acquired (Inside or outside the country) 0% Debt: Tax apply to remittances and payments in concept of Capital, Interests and Commissions (for investments over US$ 5 mill. ) 0% Revenues: Tax apply to dividends and utilities (for investments over US$ 5 mill., for a period of 10 years) 0% The Most Competitive Tax Scheme in the Region (*) Obs: ifdistributedinternationallyitmaybe up to 27.5% Source: Ministry of Finance (www.hacienda.gov.py)
Very competitive platform for the world Three ways to access to the benefits of the GSP + status of Paraguay: attraction of MERCOSUR industry, enhancing of domestic industry; attraction of European industry. 1 Enhancingthe local market and investmentsconsideringtheincrease in thecompetitiveadvantage 2 AtractionofArgentinianandBrazilian industries for exporting to the EU, based on the competitive advantages of Paraguay Argentina and Brazil EuropeanUnion Paraguay EuropeanUnion Mercosur + Chile E.U. B A Atraction of europeanindustryforexportingto Mercosur and Chile Industry Industry A A B Atraction of europeanindustryforexportingtothe E.U. SelectedIndustriesforAtractionfromthe E.U. B Atraction of EuropeanIndustryforexportingto Mercosur basedonTariff ´s elimination 3 • Source: Arthur D. Little´sReport
Tour of OPPORTUNITIES
OpportunitiesforAsianTech FREE TRADE ZONE FOR MULTINATIONAL COMPANIES WorldClassTechnology Training Center SILICON BORDER WorldClassTechnology Center INDUSTRIAL PARKS
2- Paraguay: Agroindustrial powerhouse to FeedtheWorld With: • Incorportation of technology. • Irrigationsystems. • Territorial planningforagriculture and livestock. ¨Paraguay can increaseitsagricultural output by 300%
3 – Paraguay: Potential to becomethe 5º LargestExporter of Meatby 2020 Paraguay – MeatExports MeatExporters - 2013 Paraguay – MeatExports 2013 Exports – MainMeatPacking USD Millions Refrigerated Frozen
4.- Paraguay: LogisticHub Bolivia Brasil Argentina
5.- Reforestation: For domestic demand and export Areasuitableforcommercialreforestation 8.000.000 ton/year: is the estimated energy demand + Wood Products 60.000 ha. declared: Reforestation Stock 22.000.000 ton 2,75 years since native wood finishes 50.000 ha/year : Reforestation amount required to cover current demand: High Media Low
6.- Real Estate 1: Housingsolutions • EstimatedDemand: • 100,000 new houses per year. • 300,000houses (maintenance). • 800,000houses (minorrepairs and maintenance) Asuncion and VicinityAreas
7.- Real Estate 2: CorporateSolutions and Hotels MainInvestments - USD • 30% of annual growth in the sector. • 2015 / 2016 : 20 projects; more than USD 450 M of total investment.
8 – OutsourcingPotential +64% +54%
Private Opportunities in Paraguay Agricultural Transformation (irrigation, quality certification) Railroad Transportation for Passengers. Real Estate. Agribusiness. Business Services. Financial Sector. Food Industry. Textile Industry and Clothing. Metalwork Industry. Wire Harnesses. Shoes and Leather Industry. Reforestation. Logistics. Livestock Production, slaughter for export.