Paraguay's outgoing leader hails Taiwan as a "beacon of democracy", ahead of a presidential vote that could see his country cutting ties with the island.

"In the face of continued threats and tense situation, the Taiwan people have not given up their resolve for peace, and continued to play the role of a beacon of democracy in the region," President Mario Abdo Benitez says during a visit to the island.

Paraguay is one of only 14 countries that officially recognise Taipei over Beijing. But the diplomatic ties between the two are at risk after Paraguayan opposition candidate reportedly said he would switch recognition to Beijing if elected in April's presidential polls.