Dossier inversion-ING Interactivo
Dossier inversion-ING Interactivo
in Mexico
Your best option
for the long term
Secretariat of Economy
Undersecretariat of Foreign Trade
Global Economic Intelligence Unit
“Invest in Mexico: your best option today for the long term”
Page
Young and skilled
Introduction 9 workforce 24
Interactive brochure
Connecting infrastructure 22 Interact with the table of contents to navigate
through the document. You can return to the table
of contents by clicking on the header of each page.
Invest in Mexico
Your best option for the long term
INTRODUCTION
Throughout this decalogue, you’ll learn why Mexico is the best destination for
your investment.
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1 Economic
stability
Invest in Mexico
Your best option for the long term
1
IMF | World Economic Outlook (October 2023). 5
Secretariat of Economy | Foreign Trade, Countries with Treaties and Agreements Signed
2
INEGI GDP | Current values. with Mexico.
3
INEGI | GDP statement as of 4Q 2023 (February 24, 2024). 6
INEGI - ENOE, 4Q 2023.
4
BEA | Gross Domestic Product Real, 4Q and Year 2023 (February 28, 2024). 7
Press release, December, 2023 ANTAD | Exchange Rate = 16.9190 as of 12-29-2023.
8
United States Census Bureau | Top Trading Partners - December 2023.
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Invest in Mexico
Your best option for the long term
The Mexican peso is one of the most stable currencies Mexico has solid international reserves, with 22 % growth
and one of the currencies that has appreciated the during the current administration, increasing from 173.8
most in the last year. As of July 28th 2023, it reached billion dollars13 in November 2018 to 212.8 billion dollars
its maximum appreciation of 18 %9, with respect to the as of December 2023.14
start of the current administration in 2018, registering
its lowest exchange rate since December 2015, a histo-
ric event for the Mexican economy.
At the end of 2023, inflation was 4.66 %,10 which is As of December 2023, public debt in Mexico represen-
below the number registered during 2022 (7.82 %), ted 46.8 %15 of its GDP, while in the United States it
and below the average for other regions such as the was 123 %16 and in Canada, 106 %17 of their GDP.
G20(6.5 %),11 and OECD countries (6.0 %).12
9
Bank of Mexico | Exchange Rate. 13
Bank of Mexico | International assets, domestic credit and, monetary base. |November 2018.
10
INEGI | Inflation Portal. 14
Bank of Mexico | International assets, domestic credit and, monetary base. |December 2023.
11
OECD | Consumer Prices, OECD - February 2024. 15
Government of Mexico | Press Release No. 29 Reports on the Situation.
12
Idem. 16
International Monetary Fund - USA.
17
International Monetary Fund – Canada.
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Invest in Mexico
Your best option for the long term
Social
Protection
117.9
Education 56.9
Health 55 Social
Development
The Mexican government has made a historic payment Housing 19.1
towards foreign debt interest with the aim of reducing
pressure on public finances in the medium term. Others 2.5
Fuel and 63
As of December 2023, tax collection was 267 billion Energy
dollars. At the end of 2018, tax revenues were 156
Transportation 12.1
billion dollars, which poses a 71 % increase in tax re-
venue for the country.18 Mexico has increased its tax Agriculture 5.1
collection in recent years, despite the COVID-19 health Economic
Economic
emergency, trade wars, and military crises, which in- Affairs
3.6 Development
dicates taxpayer confidence. Science and
Technology
3.4
Others 1.8
National 8.6
Security
63.6 billion dollars Justice 7.5
Planned investment
Internal
spending by 202419 Security 4.9 Government
Financial
Affairs
4.6
Tax Administration Service | Revenue | Federal Government Tax Revenues.
18
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2 Political and
social stability
Invest in Mexico
Your best option for the long term
• Sowing life
(Sembrando Vida).
Never before has so much of the public
budget been invested in the social
justice agenda. • Benito Juarez Scholarships.
20
Welfare Programs Progress 2023.
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3 Foreign
Direct Investment
Invest in Mexico
Your best option for the long term
According to the World Investment Report 2023, pu- Mexico recorded a 0.6 % increase in its share of global
blished by the United Nations Conference on Trade FDI flows, going from 2.1 % in 2021 to 2.7 % in 2022,
and Development (UNCTAD). demonstrating its growing importance in this area.
21
UNCTAD - World Investment Report 2023.
22
Mexico is part of the Organization for Economic Cooperation and Development (OECD), which provides the methodology to calculate FDI through the Benchmark Definition of Foreign Direct
Investment. It is important to note that the countries of China, Singapore, Brazil and India are not part of the OECD, so there could be differences in the precise methodology to calculate FDI.
w w w. g o b . m x / s e 17
Invest in Mexico
Your best option for the long term
41 % 14 %
31,604 32,921 35,292 36,058 Transport Equipments Beverage and Tobacco
29,079 31,621
13 % 9%
Metals Computer Equipment
8% 5%
Chemical Industry Electric Power
Generation Equipment
2018 2019 2020 2021 2022 2023 3% 3%
Food Industry Plastic and Rubber Industry
74 % 26,631 mdd
6%
Reinvestment of profits Transportation
2,283
13 % 4,817 mdd
New investments 3%
Others 1,105
13 % 4,610 mdd 10 % 3%
Mining Wholesale Trade 920
Intercompany accounts
3,491 1%
Professional Services
Amounts reported as of December 31, 2023.
23
Without considering the Televisa - Univision merget and Aeromexico’s Reestructuring.
Secretariat of Economy | National Register of Foreign Investments (RNIE).
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Invest in Mexico
Your best option for the long term
According to the FDI registered in 2023, the United Of the total FDI registered for 2023, 76 % is concentra-
States is the main investment country in Mexico, amoun- ted in 10 states of the country. In 2023, there was a re-
ting to 38 % of total flows. This is a result of the econo- configuration of investments throughout the country.
mic integration of the North American region, whose
countries invested 48 % of the total FDI of the period.
Top 10 FDI-receiving states in 2023
Japan 4%
2,909 3%
Baja
California Querétaro
Germany 2,399 1,473 1,107
Argentina 2,248 4%
Aguascalientes
United 1,379
Kingdom 936
6%
Netherlands 892 Jalisco
2,028
Belgium 759
South 5% 31 %
497 State of Mexico Mexico City
Korea
1,927 11,197
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4 The agreement
between Mexico, The United States,
and Canada
Invest in Mexico
Your best option for the long term
24
Secretariat of Economy | (July 1, 2020) USMCA.
25
World Bank | Total population. 27
US Census Bureau | Goverment of Canada | INEGI, Trade Balance, December 2023.
26
Secretariat of Economy with data of US Census Bureau | Government of Canada | INEGI, 28
USMCA Free Trade Commission. Decision 5. https://www.gob.mx/t-mec/
Trade Balance (December 2023).
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5 Infrastructure
that connects
Invest in Mexico
Your best option for the long term
Efficient connectivity is crucial in making trade work. Mexico has 103 ports,33 among which the most active in
Mexico also stands out for its railway inf rastructure, terms of trade are Manzanillo, Lázaro Cárdenas, Veracruz,
airports, seaports and highways. Coatzacoalcos and Altamira. January to June 2022, 287
million tons34 were mobilized in Mexican ports.
Mexico has 1,514 aerodromes, 559 heliports30 and Mexico shares 3,153 km of border with the United States,
78 airports,31 the most relevant of which are Tijuana, featuring 56 bridges and entry point.36 Transit times from
Monterrey, Guadalajara, Cancun, and Mexico City. The Mexico to the United States are the most competitive:
latter, from January to May 2023, handled more than
19.6 million passengers and more than 245,000 tons Shanghai to Los Angeles 17 day
of cargo,32 both with an 11 % increase compared to the Tijuana to Los Angeles 3 hours
same period of 2022.
29
Mexican Railway System | Mexican Railway System. 33
Secretariat of the Navy | Prontuario_2022.pdf
30
Aerodrome and Heliport Database | May 8, 2023. 34
Secretariat of the Navy | Monthly Statistical Report June 2023.
31
Mexican Airport System | Federal Civil Aviation Agency. 35
National Road Network | Mexican Institute of Transportation | Government.
32
Airport Operational Statistics - May 2023. 36
International Boundary and Water Commission between Mexico and the United States.
w w w. g o b . m x / s e 23
6 Young and skilled
workforce
Invest in Mexico
Your best option for the long term
We are the tenth most populated country in the world. Every year, more than one million graduates are ready
Of the 129.6 million people,37 nearly half are part of the to join all productive activities due to nearshoring.
active labor force.38 This is why Mexico is doubling down
betting on education. There is currently a coordinated effort between the
Secretariats of Economy, Public Education, Labor, and
In the last two decades, average schooling increased Social Welfare, the National Council of Humanities,
from 7.5 to 9.7 years.39 By 2023, investment in this sec- Sciences and Technologies, and the productive sectors
tor is expected to reach 56.9 billion dollars.40 to update curricula by discipline, promote specialties
based on nearshored industries and ensure that
Mexico is one of the ten countries of the Organization investments get an adequate profile of the Mexican
for Economic Cooperation and Development (OECD) talent available.
that graduates more professionals in science, techno-
logy, engineering, and mathematics every year.
37
World Bank | INEGI. Population, 4Q 2023.
38
INEGI. Employment and occupation.
39
INEGI. Education.
40
Budget Transparency | Functional Classification | Social Development. The exchange rate
as of November 9, 2023 of 17.4888, according to the date of final approval of the PEF 2024 by
the Chamber of Deputies.
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7 Sufficient and
clean energy
Invest in Mexico
Your best option for the long term
• Geothermal
• Photovoltaic
• Bioenergy
41
Secretariat of Energy | Clean Energy Progress Report Annex 3.
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8 Tax
incentives
Invest in Mexico
Your best option for the long term
Sonora
Mexico has a series of incentives and development San Luis Río Colorado,
programs that help to attract investment. These include Puerto Peñasco,
General Plutarco Elías
Chihuahua
Janos, Ascensión, Juárez,
tax incentives to promote regional development in the Calles, Caborca, Altar, Praxedis G. Guerrero,
Sáric, Nogales, Santa
Northern Border and in the South-Southeast. Cruz, Cananea, Naco y
Guadalupe, Coyame del
Sotol, Ojinaga y Manuel
Agua Prieta. Benavides.
Coahuila
Regional Federal Incentives Ocampo, Acuña, Zaragoza,
Jiménez, Piedras Negras,
Nava, Guerrero e Hidalgo.
Tabasco
Income Tax Balancán y
Tenosique.
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Invest in Mexico
Your best option for the long term
Quintana Roo
DECREE of the Chetumal Free Zone | Official Gazette. December 31, 2020.
Modifications to the Decree of the Chetumal Free Zone. | Official Gazette. November 18, 2022.
30 w w w. g o b . m x / s e
Invest in Mexico
Your best option for the long term
Development Programs
Manufacturing, Maquila, and Export Service Sector Promotion Programs
Industry Program (IMMEX)45 (PROSEC)46
IMMEX is an export promotion instrument used by PROSEC is an instrument that benefits legal entities
companies that import goods temporarily and carry that produce certain goods.
out an industrial or service process for manufacturing,
transforming, repairing, or providing services. They are allowed to import various goods used in the
production of specific products at a preferential tariff,
This program offers the possibility of importing goods regardless of whether the final products are destined
under a temporary regime, deferring the payment for export or to the domestic market.
of the general import tax, the value-added tax (VAT),
and, if applicable, the countervailing duties, as long as The benefits are only for imported goods for the partici-
the companies carry out an industrial or service pro- pant sectors; however, PROSEC program holders may
cess intended for the manufacturing, transformation, request their incorporation into new sectors, provided
repair or rendering of export services. they can prove that they manufacture goods corres-
ponding to such industries.
Producers 24 PROSEC
sectors
Export service providers
This applies to This applies to Article 4
legal entities Residents in the national manufacturers PROSEC Decree
territory of goods
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9 One-stop
shop for investors
Invest in Mexico
Your best option for the long term
47
DECREE on the creation of the One-stop shop for Investors and the Single Registry of
Investment Projects, published in the Official Gazette of the Federation on July 26, 2023.
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Invest in Mexico
Your best option for the long term
One-stop Shop for Investors (VUI MX®) Single Registry of Investment Projects (RUPI)
It is a free public contact and guidance mechanism for It is a public, electronic and free administrative faci-
the planning or setup of an investment in Mexico. litation mechanism for the establishment of invest-
ments in Mexico.
Through the VUI MX® portal, interested parties can find
a step-by-step guide, from the investor’s point of view, Through the RUPI registry, investors can have access the
on the procedures at the federal level to achieve the accompaniment from the Secretariat of Economy du-
setup of an investment in the country. ring the establishment or expansion of their investment.
34 w w w. g o b . m x / s e
Invest in Mexico
Your best option for the long term
AWARD
empresa. permisos de trabajo.
2023
Information Portal 2023” by UNCTAD.
Marcas e Adquisición Fomento al
Invenciones de inmuebles Comercio
Encuentre información Encuentre información Exterior
sobre el registro de marca e sobre adquisición de
Encuentre información
invenciones. inmuebles.
sobre programas de
fomento al comercio.
https://ventanillaunica.economia.gob.mx
Aguascalientes Baja California Baja California Campeche Chiapas
Sur
w w w. g o b . m x / s e 35
10
MSMEs
development
Invest in Mexico
Your best option for the long term
Micro, Small and Medium Enterprises (MSMEs) play an es- As the most significant percentage of economic units,
sential role in the Mexican economy. According to the la- MSMEs are an investment niche in multiple sectors
test 2019 Economic Census, there are 4.7 million in Mexico. such as tourism, agro-food, and chemicals. Their high
level of adaptability and the use of various resources
throughout the different geographical areas of the
country characterize them.
48
INEGI | Statistics regarding Micro, Small, and Medium-sized Enterprises - national data
(June 25, 2020).
49
INEGI | Economic Census 2019 Statistics.
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