Paraguay promotes investments in the electromobility sector

This Ministry of Industry and Commerce release was published using machine translation.

The Vice Minister of Industry, Lorena Méndez, within the framework of the conference on Electromobility Projects in Paraguay, commented that the MIC is encouraging the development of this sector, as well as the possibility of attracting foreign investment.

The event, which took place this Tuesday at the Palma Roga hotel, was organized by the Economic and Commercial Office of the Spanish Embassy and was attended by national and international authorities, businessmen, distributors of electric vehicles and auto parts from Paraguay.

During the day, the initiatives that will be presented as part of Paraguay's Electric Mobility Master Plan, investment incentives for the Maquila regime, and the country's preparation for the implementation of the project were analyzed.

In her speech, Vice Minister Méndez recalled the work carried out in the Financial Development Agency (AFD) in collaboration with the National Electricity Administration (ANDE). At the same time, he mentioned the delivery of 30 chargers for personal use vehicles, which reflects the commitment of the private sector and state investment to start electric mobility in the country.

Likewise, he pointed out the importance of joining efforts to accelerate this transition, and expressed that although at first electromobility seemed like a bold idea, it has become a reality that promises to position Paraguay at the forefront of the field.

He expressed that the role of the Ministry of Industry and Commerce within this segment is as a facilitator of legal instruments to encourage industrial investment.

The Vice Minister of Industry highlighted the country's young workforce, as well as the importance of having a specific business plan to promote mobility in Paraguay.

Promote competitiveness

For his part, the general director of Industrial Policy, Aníbal Giménez, stated that the Government of Paraguay is betting on attracting foreign investments, with a focus on the production of electric vehicles and auto parts. In this sense, he pointed out that a Strategic Council for Electric Mobility was created to coordinate the State's actions in this area.

In addition, he pointed out that cooperation projects are being carried out with countries such as South Korea and Taiwan, and investment opportunities are being explored in the electric motorcycle and bicycle industry.

Automotive industry

Meanwhile, the director of National Automotive Policy, Gustavo Soverina, spoke about a series of measures aimed at promoting investment in Paraguay's automotive industry. These actions seek to improve competitiveness, create new sources of employment, train labor, facilitate technology transfer and stimulate research and innovation in the sector.

Soverina explained that both natural and legal persons, national or foreign legally established in the country, can benefit from these initiatives if they make investments focused on the production and assembly of products of chapter 87 of the Harmonized System, in accordance with article 2 of the corresponding law.

He expressed that the main focus is the production and assembly of goods included in Chapter 87 of the Harmonized System, excluding motorcycles. Specific benefits include:

• Exemption from customs duties for the importation of kits, parts and pieces.
• Value Added Tax (VAT) reduced to 2% for the import of raw materials and the sale of finished products, excluding motorcycles that are subject to 100% VAT.
• 20% preference margin in State purchases for all bidding and acquisition processes.

He indicated that currently, eight companies are assembling and producing in the country, working together with local auto parts suppliers. The goal is to develop more local businesses and add value to the final products.