Mexico Among Top 10 Emerging Markets for Foreign Direct Investment

Mexico ranked 8th position in the Foreign Direct Investment (FDI) Confidence Index among emerging countries in its 2023 edition, prepared by the Kearney Consulting.

At the same time, Mexico remained for the fourth consecutive year out of the global FDI Confidence Index, which evaluates the 25 economies that attract the most foreign capital. The Mexican government has implemented several measures to promote and facilitate FDI, including the creation of special economic zones, tax incentives for investors, and the simplification of investment procedures.

Foreign Direct Investment in Mexico

Foreign direct investment (FDI) has played a significant role in Mexico's economic development over the past few decades.

As a member of USMCA, OECD, G20, and the Pacific Alliance, Mexico is very well integrated into the world economic order, making it an attractive country for foreign investors, particularly those from the United States, Canada, Europe, and Asia. Additionally, Mexico enjoys a strategic location, a big domestic market, a wide variety of natural resources, a skilled workforce and diversified economy, a strong commitment to free trade.

According to UNCTAD's 2022 World Investment Report, FDI inflows increase by 13% to USD 31.6 billion, with new equity investments in the mining and extractive industries. Furthermore, Greenfield investments increased from 304 in 2020 to 376 in 2021, with the biggest jump being in information and communication. 

Advantages for FDI in Mexico

Companies can benefit from investing in Mexico through FDI in several ways, including:

1. Access to a large and growing market: Mexico has a population of over 125 million people, making it an attractive market for companies looking to expand their customer base.

2. Competitive labor costs: The country offers competitive labor costs, particularly in manufacturing, which can help companies reduce their production costs and improve profitability.

3. Proximity to the United States: Mexico's location next to the United States makes it an attractive location for companies looking to access the North American market.

4. Favorable business environment: Mexico has implemented several business-friendly reforms in recent years, including tax and labor reforms, that have helped improve the country's competitiveness and attractiveness for foreign investment.

5. Access to free trade agreements: Has an extensive network of free trade agreements, including the United States-Mexico-Canada Agreement (USMCA), the Mexico-European Union Free Trade Agreement, and others, which can provide companies with preferential access to key markets around the world.

6. Skilled workforce: Has a large and growing pool of skilled workers, particularly in engineering, technology, and other sectors that are key to economic growth.

7. Infrastructure: Mexico has invested heavily in infrastructure in recent years, particularly in transportation and telecommunications, which can help companies improve their supply chain and logistics operations.

The benefit of using a Shelter company for Foreign Direct Investment in Mexico

Using a shelter company like Co-Production International can offer several benefits to foreign investors. Investing in Mexico, companies can improve their competitiveness and expand their global footprint.

By partnering with CPI, we will help you bringing a robust network of strategic partners and dedicated teams to get up and running. Human resources, recruitment, hiring, and compliance with labor laws fall under CPI’s Shelter IMMEX Program, which allows manufacturers to focus 100% on manufacturing while CPI handles the rest.

Further reading

• Why is Mexico a Place to Invest?

• Mexico: The Next Frontier in Globalization