Switzerland advanced behind the strong performance of 20-year-old breakout star Johan Manzambi, who earned high praise from manager Murat Yakin.
"I think that you can really use Manzambi in every single position," Yakin said.
"It's just so much fun to work with him and see him perform like that. He is really evolving."
Paraguay also progressed by upsetting Germany in a penalty shootout despite holding only 26% possession.
Head coach Gustavo Alfaro credited the team's resilience to lessons learned from their heavy opening-game defeat against the United States.
"If we had not learned from the loss, we would not have been prepared for this match," Alfaro said.
"I told the players that we have lived through an epic evening."
>>> McLaren Drivers Norris and Piastri Take Third Row for Sprint at British GP
The remaining tournament field consists of teams preparing for the next knockout round, while eliminated nations face post-tournament evaluations.
