Strategies, Tools to Attract Investment in the Nearshoring Era

Despite geopolitical tensions and global trade shifts toward a more regionalized model, the Mexican government maintains the goal of keeping the country as a leading global exporter. The federal government expects Mexico to become the 10th-largest economy by 2030. Meanwhile, federal authorities are pushing for reduced procedures for new investors, as well as developing key sectors under Plan México.

Global Foreign Direct Investment (FDI) decreased 8% in 2024 while in Mexico it actually increased 2%. “Despite the downward trend seen in the rest of the world, growth in FDI signals the potential for Mexico to continue fostering investment,” says Ismael Ortiz, Head of the Global Economic Intelligence Unit, Ministry of Economy. He highlights the role that Mexico’s Free Trade Agreements (FTAs) play in making it an attractive investment destination, with USMCA as the key to the North American region, even amid tariff challenges. Through CTTTP, the country is also an important actor in the Pacific. 

The federal government is optimistic about Mexico’s continued growth as the country is already the ninth largest exporter globally, with the value of all Mexican exports totaling US$593 billion in 2023 and an average annual growth rate of 9.3% over the past 30 years. Similarly, over the past 12 years, Mexico has reported relatively steady and stable FDI inflows. By the end of 2024, the country registered a record US$36.8 billion in FDI.

Ortiz identifies the manufacturing sector as one of the most promising sectors, driving over half of this investment. The transport sector, beverages and tobacco, computing equipment, chemistry, and basic metallurgy sectors follow. 

Challenges to Investment Attractiveness

Amid geopolitical and trade tensions, particularly between China and the United States, the Mexican government introduced Plan México, aiming to attract US$277 billion in national and foreign investments across approximately 2,000 projects. The plan outlines several economic objectives, including increasing investment to over 25% of GDP, generating 1.5 million additional jobs, raising national content by 15%, establishing domestic vaccine production, reducing investment processing times, increasing the number of skilled professionals, and becoming a Top 5 global tourist destination.

Mexico seeks to leverage Plan México to enhance its nearshoring appeal, particularly in the automotive, electronics and semiconductors, medical devices and pharmaceuticals, and information technology sectors. The plan includes fiscal and financial incentives, infrastructure development, strategic sector strengthening, regulatory certainty, and human capital development. 

“The situation Mexico is in, regarding tariffs and trade negotations, could deeply shift international trade paradigms. In this context, the Ministry of Economy is taking charge in navigating these threats and fostering investment in the country,” says Ortiz. Ultimately, he adds, investment keeps reaching the country and the government is interested in reaching agreements to foster growth.

To support incoming projects, the Mexican government, through the Ministry of Economy (SE), established two mechanisms to facilitate domestic and foreign investment: the Unique Registry of Investment Projects (RUPI) and the Unique Counter for Investment in Mexico (VUIMX). 

RUPI is a free electronic platform designed to streamline administrative procedures for investment projects starting at US$100 million. It provides guidance and monitoring throughout the investment realization process, aiming to offer legal certainty to investors.

VUIMX, on the other hand, offers step-by-step guidance to national and international companies on the various procedures required to establish investments in Mexico, aiming to provide clarity and transparency. This platform offers information on general procedures like company establishment and trademark registration, sector-specific procedures relevant to the investment project's activity, and state-level procedures, linking investors with other counters in federal entities and local points of interest. Additionally, the platform is updated by local authorities procuring timely and accurate information regarding investment procedures in each state.