15 years of operating on market of South America brought us strong knowledge and deep understanding of this market and its opportunities. Xian Corp location in Uruguay let us be very active in term of sourcing goods from South America. Our company was the first exporter of Paraguay meat to Russia. Strong experience of working in this region gives us approach to all kind of existing opportunity in term of investment.

Paraguay: Strategic choice

We have identified Paraguay as an exceptional regional investment opportunity, and certainly one of the best in the world.

The main reasons are:

• An extremely fertile land,
• Prices considerably lower than in its neighbor’s countries (Argentina, Brazil and Uruguay)
• Production costs approximately one third of the neighboring countries
• Benefit from the region’s most favorable tax regime.

Geography

As big as California, the country counts more than 7 million inhabitants in 2015 with a total area of 406,750 sq km. It is bordered by Argentina to the south and southwest, Brazil to the east and northeast, and Bolivia to the northwest. Due to its central location in South America, we call it, el Corazón de América (the Heart of America). Paraguay has a total boundary length of 3,920 km (2,436 mi). Paraguay lies on both banks of the Paraguay River, which runs through the center of the country from north to south. Paraguay river divides the country in two parts: The western 246,925 sq km (95,338 sq mi) of the country constitute a sparsely populated region known as the Chaco, while the remaining 159,827 sq km (61,709 sq mi) know as Oriental lie in the more populated east which includes Paraguay’s capital city, Asunción. The terrain consists mostly of grassy plains and wooded hills in the eastern region. To the west are mostly low, marshy plains.

Climate

The overall climate is tropical to subtropical. Like most lands in the region, Paraguay has only wet and dry periods. Winds play a major role in influencing Paraguay’s weather: between October and March, warm winds blow from the Amazon Basin in the North, while the period between May and August brings cold winds from the Andes.

The absence of mountain ranges to provide a natural barrier allows winds to develop speeds as high as 161 km/h (100 mph). This also leads to significant changes in temperature within a short span of time; between April and September, temperatures will sometimes drop below freezing. January is the hottest summer month, with an average daily temperature of 28.9 degrees Celsius (84 degrees F).
Rainfall varies dramatically across the country, with substantial rainfall in the eastern portions, and semi-arid conditions in the far west. The far eastern forest belt receives an average of 170 centimeters (67 inches) of rain annually, while the western Chaco region typically averages no more than 50 cm (20 in) a year. The rains in the west tend to be irregular and evaporate quickly, contributing to the aridity of the area.
Economic structure and growth

Paraguay has a predominantly agricultural economy, with a struggling commercial sector. Although the country is among the poorest in South America, is very rich in natural resources and GDP growth over the last fifteen years shows that the economic situation is improving. Paraguay is the world’s fourth largest producer of soybeans. It is the most important export product of the country, accounting for 25% of total exports. Soybean farming has grown drastically in the last fifteen years, with the area used for this grain cultivation increasing from 1 million hectares in 1996 to 2.7 million in 2010. Other important export products are meat (seventh largest exporter of beef in the world), vegetable oils and cereals, underlining the strong dependence of the economy on agriculture. Indeed, agriculture accounts for 20% of GDP and nearly 50% of total employment. Paraguay has huge hydroelectric resources. Together with Brazil, the country operates the Itaipu dam, which is the world’s second largest hydro dam. Furthermore, in late 2010 a large deposit of ilmenite, a titanium ore which can be used to make a base pigment in paint, paper and plastics, was discovered. Processing ilmenite is very energy intensive. As Paraguay has cheap energy through hydro dams such as Itaipu, Yaciretá and Acaray, the country may turn into a major producer and processor of the ore, which would give a boost to the development and the diversification of the economy.

The macro-economy in Paraguay has some unique characteristics. It is characterized by a historical low inflation rate – 5% average (in 2013, the inflation rate was 3.7%), international reserves 20% of GDP and twice the amount of the external national debt. On top of that, the country enjoys clean and renewable energy production of 8,700 MW (current domestic demand 2,300 MW).

Between 1970 and 2013, the country had the highest economic growth of South America, with an average rate of 7.2% per year.

In 2010 and 2013, Paraguay experienced the greatest economic expansion of South America, with a GDP growth rate of 14.5% and 13.6% respectively.

Graphical depiction of Paraguay’s product exports in 28 color-coded categories, 2012.

Paraguay is the fourth-largest soybean producer in the world, second-largest producer of stevia, second-largest producer of tung oil, sixth-largest exporter of corn, tenth-largest exporter of wheat and 7th largest exporter of beef ( and forecasted to become the 5th in 2018).

This is underlining the strong dependence of the economy on agriculture. Indeed, agriculture accounts for 20% of GDP and nearly 50% of total employment. Paraguay has huge hydroelectric resources. Together with Brazil, the country operates the Itaipu dam, which is the world’s largest hydro dam (The Itaipu dam broke the world record in 2013 by producing 98.29 Megawatts per hour, more than that generated by the Chinese Three Gorges Dam.)

Furthermore, in late 2010 a large deposit of ilmenite, a titanium ore which can be used to make a base pigment in paint, paper and plastics, was discovered. Processing ilmenite is very energy intensive. As Paraguay has cheap energy through hydro dams such as Itaipu, Yaciretá and Acaray, the country may turn into a major producer and processor of the ore, which would give a boost to the development and the diversification of the economy.

The market economy is distinguished by a large informal sector, featuring re-export of imported consumer goods to neighboring countries, as well as the activities of thousands of microenterprises and urban street vendors. Nonetheless, over the last 10 years the Paraguayan economy diversified dramatically, with the energy, auto parts and clothing industries leading the way.

The country also boasts the third most important free commercial zone in the world: Ciudad del Este, trailing behind Miami and Hong Kong. A large percentage of the population, especially in rural areas, derives its living from agricultural activity, often on a subsistence basis. Because of the importance of the informal sector, accurate economic measures are difficult to obtain. The economy grew rapidly between 2003 and 2013 as growing world demand for commodities combined with high prices and favorable weather to support Paraguay’s commodity-based export expansion.

In 2012, Paraguay’s government introduced the MERCOSUR (FOCEM) system in order to stimulate the economy and job growth through a partnership with both Brazil and Argentina.

INVESTING IN PARAGUAY IS PRESENTING NOTICEABLE ADVANTAGES:

• No net worth tax.
• Corporate tax rate decreased by 66%, from 30% in 2004
  to 10% today
• Tax on Earnings for agricultural activities is 10%
• Profits from the sale of land are subject to an additional 5% (though tax exemptions may apply)
• Tax on the distribution of earnings is 15% for foreign residents or foreign legal entities.
• No personal income tax for local residents,
• Paraguay has one of the lowest VAT rates in the world (10%)
• A Paraguayan Corporation (with bearer shares) can be sold without capital gains tax

DO NOT HESITATE TO MAKE A REQUEST TO US,
WE HAVE HUGE OPPORTUNITIES TO PRESENT YOU.