Country Presentation Paraguay - 2011 RDX[1]

8/6/2019 Country Presentation Paraguay - 2011 RDX[1]

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Paraguay

Land of opportunities


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General Information


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Paraguay, in the center of South

America

Equator line

Greenwich Meridian

+4 +3 0+1+2

Cancer Tropic

Capricorn Tropic


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Facts and figures

Area (km2): 406.752

Languages: Spanish and Guaran

Currency: Guaran (Since 1943)

Exchange rate

(US Dollar Guarani):

1 USD = 4,640 Gs.

Population (2009): 6,273,103

Nominal Gross Domestic Product

GDP (Bill. US$):

17.8

Nominal Per Capita Gross Domestic

Product GDP (US$):

2,733

Country`s Capital: Asuncin

Other important cities: Ciudad del Este,

Encarnacin, Concepcin

Working Age Population WAP (2009): 3,163,241

Rate of unemployment (2009): 6.4% of the WAP

Brazil

Asuncin

Source: Direccion Nacional de Estadsticas, Encuestas y Censos (www.dgeec.gov.py)*Projection for 2010, according to the Central Bank of Paraguay - BCP


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Regions of Paraguay

97%Of total

population

60%Of the total

area

40%Of total

area3%Of total

population

Total Area (km2) Population

406,752 6,273,103

Source: Direccin Nacional de Estadsticas, Encuestas y Censos (www.dgeec.gov.py

)

Western Region orChaco

Eastern Region
http://www.dgeec.gov.py/http://www.dgeec.gov.py/


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Structural Resources


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Access to attractive markets

Paraguay is located in the centerof the region with the highest

income of South America.Brasil

Per

Chile

Argentina Uruguay

Bolivia

Ecuador

Venezuela

Colombia

Guayana

Guayana FrancesaSurinam

SouthAmerica(100%)

Mercosur(70%)

Paraguay +1.300 km

Population(MM people)

360 250 120

GDP Mill USD 2875 1948 927

GDP per capita

(USD) 7986 7792 7725

Source: 2009 Latin American Statistic Yearbook - ECLACwww.eclac.org

33% of South America s GDP

33% of South America`s Pop.

96% of South America's average percapita Income
http://www.eclac.org/http://www.eclac.org/


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Ideal natural conditions A big

water reserve

Rio

Paraguay

Rio

Paran

RioPilcomayo

Paraguay is

located in thecenter of theGuarani Aquifer

Average yearlytemperature: 24 C

Average yearly

rainfall: 1.200 mm.

Source: Instituto Geogrfico MilitarIGM & DGEEC


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Young and trainable laborforce

Paraguay has one of the youngestpopulations in America.

0

10

20

30

40

50

60

70

80 73,7 73,467,4 65,7

60,1 59,954,8

Population younger than 34 years old (%)

Sources: Direccin Nacional de Estadsticas, Encuestas y Censos (www.dgeec.gov.py)

Worldmapper (www.worldmapper.net)
http://www.dgeec.gov.py/http://www.worldmapper.net/http://www.worldmapper.net/http://www.dgeec.gov.py/


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Lower Risk of Natural Disasters

Earthquake risk Tsunami riskSevere weather conditions riskVolcano eruption riskTectonic plaques

Source: US Geological Survey (www.usgs.org)


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Low cost of living

Asuncin, is the 3rd. Capital of theAmericas that has the lowest costfor living.

Source: Mercer Consulting Group 2010 (www.mercer.com)

Cities Ranking

Managua 1

La Paz 2

Asuncin 3

Quito 4

San Jos 5

Guatemala 6

Mxico D.F. 7

Kingston 8

Buenos Aires 9

Panam 10

Santiago 11

Caracas 12

Toronto 13

Bogot 14

La Habana 15

Nueva York 16
http://www.mercer.com/http://www.mercer.com/


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Regional Logistics


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Rosario

Nueva Palmira

Antofagasta

ParanaguaASU

An important waterway in the

Region. Paraguay Parana.

Rio

Paraguay

SantosCDE

Mejillones

Conchas

Corumb

Montevideo

Sao Paulo

Buenos AiresSantiago

Santacruz

Main Commercial Centers

Paraguayan free ports

Important regional ports

Barges

Transatlantic Ships

Source: Rediex


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Expanding Roads Network

ASU

La Paz

Montevideo

Buenos AiresSantiago

Sao Paulo

Santacruz

Santos

Campo Grande

RJ

Belo Horizonte

Brasilia

Porto Alegre

Cuiab

Crdoba

Jujuy

ENCSalta

Curitiba

PJC

CDE

Ponta Por

Resistencia

Source: IIRSA www.iirsa.org

Rosario

Antofagasta

Paranagua

N. Palmira
http://www.iirsa.org/http://www.iirsa.org/


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MejillonesSepetiva

Agribusiness

Iron Mines

Hidroelectricity

Natural Gas

Agribusiness

The 2nd largest producer ofethanol

The 2nd largest producer ofsoybeans

Largest producer of hydroelectricity

The 2nd world's freshwaterreserves

The 5th world oil reserves

Regional economics potentials


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Energy for the future


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Source: Administracin Nacional de Electricidad (www.ande.gov.py)

ENTIDAD BINACIONAL YACYRETAFINAL POWER: 1.550 MWFINAL ENERGY: 10.500 GWh/AOPARTICIPATION: 10 %

CENTRAL ACARAYFINAL POWER: 252 MW

ENERGY: 950 GWh/YEAR

PARTICIPATION: 5 %

ITAIPU BINACIONALPOWER: 7.000 MW

ENERGY: 37.500 GWh/YEARPARTICIPATION: 85 %

Hidroelectrical energy

National Average Rate of

Consumer GroupYear 2009

Consumer Group US$/kWh

Residential 0.0745

Commercial 0.0713

Industrial 0.0488

General 0.0587

Street lighting 0.0838

National Average Rate 0.0652


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Low production costs

Traditional Industry Consumption in US$/MWh(CIER Accounts)

Companies Ib Ic Ie If IiCompaa Estadual deDistribucin de Energa

Elctrica (CEEE-D)176 176 151 165 111

Compaa Energtica de

Minas Gerais (CEMIG) 214 214 200 214 133

Compaa Energtica deCeara (COELCE) 208 208 182 194 130

Compaa Paranaense de

Energa (COPEL) 157 157 149 176 117

Light - Servicios deElectricidad S.A. (LIGHT) 163 163 175 194 113

Administracin Nacionalde Electricidad (ANDE) 61 61 45 41 27

NOTES:

1. Ib corresponds to a low voltage consumption 2,000 kWh / month

2. Ic corresponds to a low voltage consumption 5,000 kWh / month3. le consumption corresponds to a medium voltage with 100 kW power and energy of 25,000 kWh / month4. IF consumption corresponds to a medium voltage with 300 kW power and energy of 50,000 kWh / month5. Ii corresponds to a high-voltage consumption of 10,000 kW power and energy of 5,000,000 kWh / month

Source: Administracin Nacional de Electricidad (www.ande.gov.py)
http://www.ande.gov.py/http://www.ande.gov.py/


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Hidroelectrical power in MW

Source:Administracin Nacional de Electricidad (www.ande.gov.py)

Mw 2000 2005 2010 2015 2020 2025

Demand 1.120 1.354 1.831 2.374 2.987 3.780

Availability 6.290 6.056 6.929 6.628 6.015 5.222

Offer 7.410 7.410 8.760 9.002 9.002 9.002

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

10.000

20002005

20102015

20202025

Demand

AvailabilityOffer


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International Trade


21/46Fuente: Banco Central del Paraguay - www.bcp.gov.py

X+M/PIB (in %)

Country 2003 2004 2005 2006 2007 2008 2009

Argentina 34 37 38 38 38 29 17

Brasil 22 25 22 21 22 23 15

Paraguay 56 61 66 69 72 79 80

Uruguay 39 46 43 45 44 48 30

%

Economic Opening
http://www.bcp.gov.py/http://www.bcp.gov.py/


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Imports/Exports - Market

Destination in %

US$ Millions 2002 2003 2004 2005 2006 2007 2008 2009

*Exports 1.858 2.170 2.861 3.351 4.409 5.463 7.768 6.191

Imports 2.137 2.446 3.105 3.814 5.022 6.008 8.809 6.940

Source: Banco Central del Paraguay - www.bcp.gov.py

*Includes: Exports + Reexports


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Imports/Exports


*Includes: Exports + Reexports

0

2000

4000

6000

8000

10000

20042005

20062007

20082009

2010

Exportaciones

Importaciones

US$ Mill. 2004 2005 2006 2007 2008 2009 2010

Exports 1.631,6 1.627,5 1.788,5 2.745,1 4.390,0 3.167,0 4.555,5

Imports 2.660,3 3.160,8 4.743,8 5.840,9 8.977,3 6.829,2 9.913,5


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Business Climate


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Paraguay has one of the lowest tax burdens in the world

Tax

Burden

(Taxes / GDP)

Sources: Organization for Economic Co-operation and Development (www.oecd.org)

Direccin Nacional de Estadsticas, Encuestas s y Censos (www.dgeec.gov.py)

Low tax burden


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Corporate Income Tax Rate

This tax has been lowered 66% from 30% to 10% in 2004

0%

5%

10%

15%

20%

25%

30%

35%

40%

Argentina Colombia Brasil Per Uruguay Ecuador Chile Paraguay

35%34% 34%

30%

25% 25%

17%

10%

Source: Ministry of Finance www.hacienda.gov.py
http://www.hacienda.gov.py/http://www.hacienda.gov.py/


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Personal Income Tax


Averiguar Uruguay0 5 10 15 20 25 30 35 40

Paraguay

Uruguay

Ecuador

Brasil

Peru

Colombia

Argentina

Chile

10

25

25

28

30

35

35

40


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Value Added Tax (VAT)

0% 5% 10% 15% 20% 25%

Brasil

Uruguay

Argentina

Chile

Per

Colombia

Ecuador

Paraguay

25%

23%

21%

19%

19%

16%

12%

10%



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Delaing with construction permits

Trade facilitation

Source: SUAE (www.suae.gov.py) & VUE (www.vue.org.py)

One Step System for

Exporter

Paraguay stood out as the secondeconomy in the world who have most

improved this indicator, according to

Doing Business 2011

ComparisonArea

Traditional

methodAfter

Time

in days74

30

currentaverage

Steps 17 1

Estimated

CostsUSD 840 USD 100

"The One Step System forExporter is a concept createdunder broad national priority withideal projection and the

integration of SMEs in foreigntrade.

From a historical average of 700,currently are enrolled andregistered 2600 companies.

Business Opening Process
http://www.suae.gov.py/http://www.vue.org.py/http://www.vue.org.py/http://www.suae.gov.py/


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Macroeconomic Stability


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Source: Central Bank of Paraguay - www.bcp.gov.py*Projection for 2010, according to preliminary data of the BCP

Economic Growth

5.552

6.9737.505

9.289

12.260

16.874

14.255

17.680

2003 2004 2005 2006 2007 2008 2009 2010*

GDP Evolution in ParaguayPIB Mill. US$

3,8%

4,1%2,9%

4,3%

6,8%

5,8%

-3,8%

14.5%

GDP (US$ Mill.)


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Source: Banco Central del Paraguay - www.bcp.gov.py*Incluedes Construction, electric & water services

Primary Sector 53%

Manufacturing* 11%

Commerce & Services 30%

Others 6%

GDP Share by sectors


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Inflation

Source: Banco Central del Paraguay - www.bcp.gov.py*Preliminay data yr. 2011

IPC %

0

5

10

15

2002 2003 2004 2005 2006 2007 2008 2009

2010 2011

14,6

9,3

2,8

9,9

12,5

6,0 7,5

1,9

7.26,3*

CPI %


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Fiscal Balance/GDP

Source: Ministerio de Hacienda* Set/2010

-1,2

-3,24

-0,4

1,590,77 0,51

0,96

2,49

0,06

2,8*

-4

-3

-2

-1

0

1

2

3

4

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Fiscal Balance (last 9 years)

Deficit/Surplus as a % of GDP


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2003 2004 2005 2006 2007 2008 2009 2010

US$ Reservas 983 1.168 1.297 1.980 2.420 2.638 3.857 4.422

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

US$Mill.

International Reserves in US$

International Reserves


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External Debt/GDP

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

34,1 34,1

44,2 43,3

34,4

23,8

18,6

13,3 14,1 12,4

External Debt %

Deuda Externa/PIB



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Investment Incentives


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60/90 Investment Law

Import tariff on Capital Goods(machinery and equipment)

Taxes on capital transfer(applied for investments of more than USD 5MM)

0%


0%

Value Added Taxes (IVA) on importof Capital Goods 0%


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MERCOSUR rules of origin

Paraguay enjoys special treatment regarding rules of origin of manufactured products

until 2023

It is easier to acquire origin in Paraguay vs. Mercosur

-10%

0%

10%

20%

30%

40%

50%

60%

Brasil Uruguay Argentina Paraguay

60% 60% 60%40%

Necessary regional content %

* If the service is provided by a Company established in Paraguay

Source: Mercosur 01/04 decision www.mercosur.int

Raw

materials

Parts &

components

Labor

Services

Energy, water

Import

Freights*Extra-zone

imported components

40%

60%
http://www.mercosur.int/http://www.mercosur.int/


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Maquila Regime

TO PRODUCE:

GOODS AND SERVICESFOR EXPORT

ContractMAQUILA

ENTERPRISE

HEAD

OFFICE

SUB MAQUILA

ENTERPRISE

Single tax rate of 1% over salesinvoicing


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Investment Opportunities


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Important Potential Sectors

Meat & Leather

Forest Products

Tourism

Cotton, textil & apparel

Biofuels

TICs


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Important Potential Sectors

Stevia

Fruits & Vegetables InfraestructureEcoturism

MetalurgicCall Centers

Oils

Energy
http://images.google.com/imgres?imgurl=http://1.bp.blogspot.com/_kdKWRjTUu0E/Sj4ao3MVURI/AAAAAAAAAoU/lT8wEYLgSKI/s400/vista-puerto.jpg&imgrefurl=http://chiquipuertos.blogspot.com/&usg=__FWchP1iHsVWWVYcJnpDxU2kwhUQ=&h=264&w=400&sz=17&hl=es&start=9&um=1&tbnid=6pMVOLc0NtR_SM:&tbnh=82&tbnw=124&prev=/images?q=hidrovia+maquinaria&hl=es&lr=&rls=com.microsoft:*:IE-SearchBox&rlz=1I7ADBF_es&um=1http://images.google.com/imgres?imgurl=http://upload.wikimedia.org/wikipedia/commons/5/5d/Salto_Monday_vistacaida_agua_cuerda_bajan1.png&imgrefurl=http://commons.wikimedia.org/wiki/File:Salto_Monday_vistacaida_agua_cuerda_bajan1.png&usg=__0qcVjeT9zR14VguiqMIWu5hMYQs=&h=1024&w=1277&sz=1315&hl=es&start=9&um=1&tbnid=0r-gn2KViUmY_M:&tbnh=120&tbnw=150&prev=/images?q=salto+monday&hl=es&rls=com.microsoft:*:IE-SearchBox&rlz=1I7ADBF_es&um=1http://images.google.com/imgres?imgurl=http://spb.fotolog.com/photo/59/58/57/aguns/1222363635694_f.jpg&imgrefurl=http://www.fotolog.com/aguns/53664778&usg=__EHFZKp0W-1H6M3EMtEXso_8ZFns=&h=389&w=292&sz=30&hl=es&start=1&um=1&tbnid=WO-KvcNYzF_cVM:&tbnh=123&tbnw=92&prev=/images?q=metalurgico&hl=es&rls=com.microsoft:*:IE-SearchBox&rlz=1I7ADBF_es&um=1http://images.google.com/imgres?imgurl=http://www.nationalbuyers.co.uk/sellandrent/images/Callcenter.jpg&imgrefurl=http://www.nationalbuyers.co.uk/sellandrent/call-me-back.html&usg=__yLOsTIdUeUPjMlQ9x1J-8XHwRtg=&h=314&w=429&sz=42&hl=es&start=7&um=1&tbnid=FYfJ1gDgTTeQhM:&tbnh=92&tbnw=126&prev=/images?q=call+center&hl=es&rls=com.microsoft:*:IE-SearchBox&rlz=1I7ADBF_es&um=1http://images.google.com/imgres?imgurl=http://www.biodiesel.com.ar/zenphoto/zp-core/i.php?a=biodiesel&i=aceite-soja-soya-soybean-oi.jpg&imgrefurl=http://biodiesel.com.ar/?p=266&usg=__dT7UaaqyvFpUkzbJgkDEJuB7B3Y=&h=293&w=412&sz=10&hl=es&start=3&um=1&tbnid=YYIfm6uNWAWMkM:&tbnh=89&tbnw=125&prev=/images?q=aceite+de+soja&hl=es&rls=com.microsoft:*:IE-SearchBox&rlz=1I7ADBF_es&um=1http://images.google.com/imgres?imgurl=http://luduran.files.wordpress.com/2008/02/energia2.jpg&imgrefurl=http://luduran.wordpress.com/2008/02/27/la-energia-es-el-tema-politico-de-2008/&usg=__kgkPz1Wk1rZQLQkKUd4ieew8trs=&h=547&w=865&sz=112&hl=es&start=24&um=1&tbnid=VP1u4oDCDoe1WM:&tbnh=92&tbnw=145&prev=/images?q=energia&ndsp=18&hl=es&rls=com.microsoft:*:IE-SearchBox&rlz=1I7ADBF_es&sa=N&start=18&um=1


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Fuente: CIP

M I CMillicomInternational

Celular S.A


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Fuente: CIP

BANCO

DO

BRASIL


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Mcal. Lpez 3333esq. Dr. Weiss

Asuncin

ParaguayTel: + (595 21) 616 3000Telefax: + (595 21) 616 3000

www.mic.gov.py

Mcal. Lpez 3333esq. Dr. Weiss

Asuncin

ParaguayTel: + (595 21) 616 3006Telefax: + (595 21) 616 3034

[email protected]
http://www.mic.gov.py/http://www.mic.gov.py/mailto:[email protected]:[email protected]://www.mic.gov.py/http://www.mic.gov.py/mailto:[email protected]://www.mic.gov.py/http://www.mic.gov.py/

Country Presentation Paraguay - 2011 RDX[1]

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