Northern states, attractive for their value chains

Monterrey, NL. Of the foreign investment projects that arrive in the country, around 60% stay in the north, mainly in Monterrey, Ciudad Juárez, and Tijuana, due to the fact that they have robust value chains and suppliers for the automotive, electrical appliances and technology sectors. Information and Communication (ICT), commented to El Economista, Lorenzo Aguilar Camelo, undersecretary of Investment and Industrial Development of the Ministry of Economy and Labor of Nuevo León.

In 2020, Nuevo León ranked second nationally in attracting Foreign Direct Investment (FDI), with 11.6% of the country’s total, after Mexico City (23.9 percent).

A determining factor for foreign companies to decide to invest or expand with new plants is due to the work culture and the quality of human capital, the official said.

Last year, Nuevo León captured 3,366.5 million dollars, which represented 3.2% more compared to 2019. This figure is relevant because the United Nations Conference on Trade and Development predicted that world flows would drop to 40% at the end of 2020.

Aguilar Camelo considered that FDI increased last year because many investment projects were already being prepared in advance and other companies already established in the entity expanded, such as the Japanese auto parts company Denso.

And on the other hand, companies that depended on imports from Asia only had inventory for one month, but without maritime trade (due to the closure of borders due to the health contingency) they had to look for a supplier close to their markets in the United States and Canada. .

Also, due to the conflict between the United States and China, many companies decided to relocate, especially in the north of the country. Likewise, the Agreement between Mexico, the United States and Canada (T-MEC) gives security to investors, said Lorenzo Aguilar.

Source

According to data from the State Ministry of Economy and Labor, in relation to the origin of the investment, 57% came from the United States, 11% from South Korea and 9% from Argentina; although China contributed 1%, but this country’s interest in investing in Nuevo León has grown.

“We have had face-to-face visits from 20 Asian companies, we believe that this year FDI will grow the same as last year,” said the secretary.

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