Companies bolivian seek to grow in Paraguay, attracted by benefits and investment climate

Companies bolivian seek to grow in Paraguay, attracted by benefits and investment climate

The neighbor seduces to foreign capital with legal security and the tax burden low. A delegation of companies bolivian looking to internationalize their business and conducting business in soil guarani

Knowing his inhospitable terrain the writer Augusto Roa Bastos was described by his hometown of Paraguay as “an island surrounded by the earth” by the isolation in which it was throughout its history. Today, this peculiar ‘island’, in formerly rural and remote development, bridges and opens doors to foreign investment. The equation is simple, looking to get ahead and establish itself as the economic hub of South america. And this is not a cliché. Its rules allow you to entrepreneurs from around the world to access to facilities, that it is not even found in their nations of origin. The official data put the Spanish capital and u.s. as the main investors in soil guarani.

 But the island ‘surrounded by land’ opens to the world and invites companies bolivian go for a country of opportunities.

Sergio Gustavo Barrón Salinas, a developer bolivian heard this call. Your goal is to build a building in Paraguay. Have a clear goal, make departments affordable. See good business opportunities and it is not the only one.

Between the 24th and 28th of may, a group of 22 companies, including companies with operations in Bolivia, participated in a mission that sought to open business opportunities in Paraguay. Barrón was part of the expedition organized by the Chamber Bi-Bolivian Paraguayan which showed the delegation formed by entrepreneurs from various sectors such as construction, food and beverage, technology, pharmacy, insurance, livestock, minerals, and pulp and paper industry, the opportunities offered by this country.

The entrepreneurs met with paraguayan authorities and business organizations. The common goal is to ensure that the investments bolivian grow in the neighbor country, considered as the gateway to a market of over 200 million people as Mercosur and a platform to get to any part of the world.

In addition to this, the tax burden, which is 30%. For example, the Income Tax of the Companies reaches a maximum of 10%, while the Personal Income Tax is a percentage similar to the Value Added tax (VAT).

It should be noted that rates are for reference maximum, so that the tax burden can be lower. In addition to this, the cost of energy, which is the cheapest in the region; because he comes to 4.9 cents per kilowatt-hour (KwH).

In addition, there are special schemes such as the assembling, the objective of which is the industrial development, job creation and the increase of exports.

Dreams in the guarani lands

César Muñoz, cut with precision the peel of an orange and a mango. The put in two cups where previously put ice and accurate measure of gin, then add tonic water Premium and mixing those ingredients the result? a drink that will captivate connoisseurs of a good liquor.

Despite its ability to prepare this drink, Caesar is not a bartender, if you are not a partner of the distillery Four Aces, whose product Dharma, seek to conquer the market premium bolivian and paraguayan.

The brand of gin and takes a few months on the market, but has had an excellent acceptance. It is distributed in the main cities of Bolivia, but aspires to do more. Muñoz arrived in Paraguay with the goal of getting a distributor and be able to export to medium term. Expected to have a distillery in the nation.

Paraguay attracts not only to entrepreneurs as well as Caesar. Copelme, the trash is Bolivia's most important, which owns more than 50% of the market in line paper for domestic use, look for opportunities in the land of paraguay.

Max Abecia, production manager of Copelme, said he held meetings with four companies to make inroads with its diverse portfolio of products. The executive explained that the initial idea is to be able to export and in the future to have a line of own production in that territory.

The strategy is covered in its 25 years of success in the market, bolivian, through its flagship product: toilet paper National.

Fernando Saavedra, commercial manager of Copelme, asserts that the market paraguayan offers a good climate for investment.
“It is a window for the international markets, first we have to get to Paraguay we have established good relationships,” said Saavedra.
In the technology area, there are many things to do. And this is an important niche for Daniel Maldonado Rock, manager of the integration and development of the company Insertec, who has spent 40 years in Bolivia.

The firm develops software for the digitalization and automation of the industrial processes. In the mission managed to make contact with companies that do not want to be relegated in the digital revolution.

“We have developed technology under an open source software. That allowed us to have technology according to our reality. We saw the opportunity to transfer this knowledge and the people of paraguay is open to pay for this,” he said.

Entrepreneur stresses that, unlike similar events, the paraguayan Government is willing to receive and give conditions to the companies that come to invest. And will not be the last time I visit that country. He says he found opportunities that you did not intend to squander.

The same thinks of Robert Paul Landívar, general manager of the company's Great Food, which in the situation that the country lives says to go to Paraguay is to seek new opportunities for the business sector bolivian requires stability and legal certainty.

“It is the youth market, where we can bring our know-how of the things that we do in Bolivia and replicate them in Paraguay. There are benefits to all sectors, opening up to foreign investors, and facilities to opening your company. No taxes are very high, the opportunities are there,” he said.
Landivar see that these factors enable the investments are made with a lot of ease “because there is an opening of the State to attract foreign exchange to the country and generate growth.”

A great Food is a company that produces rations for animals with a process technically advanced that it's called extrusion, a european technology that makes food assimilated, and the conversion nutrition more efficient. The food industry operates successfully for 10 years in Bolivia.

Everything for building

If either Assumption is built as a city moderna, in the theme constructive there are many things to be done, not only in the capital of this country, but throughout its geography.
One of the main problems is the housing. According to data of the Paraguayan Chamber of Construction Industry (Capaco) there is a deficit of more than 300,000 housing units in the country and 1.5 million refurbishment.

Raúl López Palacios, a member of the board of Capaco, andxplicó that your country has a strength of macroeconomic important and cost competitive workforce, key elements to invest in that sector.
In addition to this factor, it has a strong need for infrastructure that makes that construction firms able to compete for public works. He explained that the budget for the investment of infrastructure of Paraguay is around us $1,500 million per year.

“We have a deficit of basic sanitation, 90% throughout the country. Clean drinking water is a challenge because it's still a 30% do not have access to the resource,” he said.
For the entrepreneur paraguayan these are outstanding issues and argues that entrepreneurs from the outside can bring the ‘know how’ and the ‘expertise’ to fix them.

Just Carlos Moreno is a real estate developer that operates in Paraguay for a year. The company's partner Morey SA, which has two projects in the cities paraguayan Villa Eliza and Fernando de la Mora.
The two projects aim to alleviate the housing shortage paraguayan departments that have a value of us $50,000 and us $90.000.

“We are talking about a per capita income of about us $700. 53% of the population has an income of us $300 and us $1.500 this individually. If we talk about the family that is doubled, then the purchasing power improves and enhances the type of housing,” said the entrepreneur.

The criterion of Jorge Eguivar, general manager, on-Camera Bi-Bolivian Paraguayan it is clear that “all of (the companies) have the vision of being able to rebuild and start the operation in Paraguay”, which opens the door to investment.

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